Competitive Bidding - Infra

On the Procurement Procedures:
COMPETITIVE / PUBLIC BIDDING

FOR THE PROCUREMENT OF
INFRASTRUCTURE PROJECTS
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 1
Procurement Procedures:
COMPETITIVE / PUBLIC BIDDING FOR THE
PROCUREMENT OF INFRASTRUCTURE PROJECTS
I. PREPARATORY ACTIVITY: BIDDING DOCUMENTS
Bidding documents are documents issued by the Procuring Entity to provide prospective
bidders all the necessary information that they need to prepare their bids.
A. AUDIT OBJECTIVE:
To verify if the Bidding Documents for the specific procurement followed the standard forms
and manuals prescribed by the Government Procurement Policy Board (GPPB)
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER
Document needed for evaluation:
1. The procuring entity’s Customized Bidding Documents for Infrastructure Projects;

2. Bidding Documents for the specific procurement.
Audit Sub-objective Suggested Audit Working Paper

 Audit Criteria Audit Activities Audit Question Yes No Particulars of the
Answer
1. To verify if the Bidding 1. If the procuring entity Are the Bidding
Documents for the specific adopted customized Bidding Documents/
procurement include the Documents and the results Information
of the earlier validation of complete:
information and are
this element showed that
according to the forms these are compliant with the a. Approved Budget
indicated in the Philippine Bidding for the Contract?
Customized Bidding Documents for the
Documents approved by Procurement of b. Invitation to Bid?
the GPPB or the Philippine Infrastructure Projects and
Bidding Documents for the Section 17.1 of the c. Eligibility
Procurement of Implementing Rules and Requirements?
Infrastructure Projects, 3rd Regulations of RA 9184,
secure from the BAC d. Instruction to
Edition (October 2009) Bidders, including
Secretariat duly certified
issued by the GPPB and copies of the Bidding - scope of bid?
Section 17 of the Documents for the specific
Implementing Rules and procurement and compare - documents
Regulations of RA 9184 as these with the customized comprising the
amended on September 2, Bidding Documents of the bid?
2009: procuring entity.
- criteria for
a. Approved Budget for the
If the customized eligibility?
Contract;
Bidding Documents are not
b. Invitation to Bid; - bid evaluation
compliant, compare the
c. Eligibility procurement-specific Bidding methodology/
Requirements; Documents with the criteria?
d. Instruction to Bidders, Philippine Bidding
including scope of bid, Documents for the - post-
Procurement of qualification
documents comprising
Infrastructure Projects methodology?
the bid, criteria for
eligibility, bid issued by the GPPB.
- date of the pre-
evaluation bid conference?
methodology/criteria in
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accordance with the - time of the pre-
Act, and post- bid conference?
qualification, as well as
- Place of the
the date, time and
pre-bid
place of the pre-bid conference?
conference (where
applicable), submission - Deadline for
of bids and opening of submission of
bids; bids?
e. Scope of work, where
applicable; - Place of
f. Plans/Drawings and submission of
bids?
Technical
Specifications; - Date of opening
g. Form of Bid, Price Form, of bids?
and List of Goods;
h. Delivery Time or - Time of opening
Completion Schedule; of bids?
i. Form, Amount, and
Validity Period of Bid - Place of opening
Security; of bids?
j. Form, Amount, and
e. Scope of work?
Validity of Performance
Security and Warranty; f. Plans/Drawings
and and Technical
k. Form of Contract and Specifications?
General and Special
Conditions of Contract. g. Form of Bid, Price
Form, and Bill of
Implementing Rules and Quantities?
Regulations (IRR) of RA 9184, as
amended on September 2, 2009: h. Completion
 17.1. The Bidding Documents Schedule?
shall be prepared by the
procuring entity following the i. Form, Amount, and
standard forms and manuals Validity Period of
prescribed by the GPPB. Bid Security?
a. Approved Budget for the
Contract; j. Form, Amount, and
b. Invitation to Bid; Validity of
c. Eligibility Requirements; Performance
d. Instruction to Bidders, Security and
including scope of bid, Warranty?
documents comprising the
bid, criteria for eligibility, bid k. Form of Contract
evaluation and General and
methodology/criteria in Special Conditions
accordance with the Act, and of Contract?
post-qualification, as well as
the date, time and place of Are the Bidding
the pre-bid conference Documents in the
(where applicable), required form:
submission of bids and
opening of bids; a. Invitation to Bid?
e. Scope of work, where
applicable; b. Instructions to
f. Plans/Drawings and Bidders?
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Technical Specifications;
g. Form of Bid, Price Form, and c. Bid Data Sheet?
Bill of Quantities;
h. Completion Schedule; d. General Conditions
i. Form, Amount, and Validity of the Contract?
Period of Bid Security;
j. Form, Amount, and Validity of e. Special Conditions
Performance Security and of Contract?
Warranty; and
k. Form of Contract and General f. Schedule of
and Special Conditions of Requirements?
Contract.
g. Technical
GPPB Resolution No. 05-2009 Specifications?
dated 30 September 2009:
 … all branches, agencies, h. Bidding Forms?
departments, bureaus, offices
and instrumentalities of the
Government, including
government-owned and/or
controlled corporations,
government financial
institutions, state universities
and college, and local
government units, are hereby
mandated to use the Philippine
Bidding Documents Third
Edition for all of their
procurement activities.
EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT

1. To verify the effects of Analyze the instances of
instances of non- non-compliance to establish Appropriate Audit Working Papers
compliance on the: the effects and develop
appropriate audit
a. validity of the recommendations.
procurement activities
and outputs including Also determine if
the validity of the appropriate actions were
taken by the auditee in
resulting contract;
regard to instances of non-
b. validity of any payment compliance.
to be made on the basis
of the contract;
c. etc.
NOTE:
and develop appropriate Also refer to the
audit recommendations OFFENSES AND
PENALTIES portion of
this Audit Guide.
Implementing Rules and
Regulations (IRR) of RA 9184,
as amended on September 2,
2009:
 Observers shall be invited at
least three (3) calendar days
before the date of the
procurement stage/activity.
The absence of observers will
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Answer
not nullify the BAC
proceedings, provided that
they have been duly invited
in writing.
2. To verify the causes of Analyze the instances of

instances of non- non-compliances to establish Appropriate Audit Working Papers
compliance and develop the cause(s) and develop
appropriate audit
appropriate audit
recommendations.
recommendations
Also determine if
appropriate actions were
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
3. To communicate the Prepare the appropriate

results of the audit with audit/ validation document Audit Observation Memorandum (AOM), if applicable
the auditee’s Management reflecting the results of the
audit/validation and transmit
 COA Circular No. 2009-006 to Management
dated September 15, 2009 re-
Prescribing the Use of the Rules
and Regulations on Settlement
of Accounts
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I. PREPARATORY ACTIVITY: PRE-PROCUREMENT CONFERENCE
(For procurement of infrastructure projects costing more than P5 million)
The pre-procurement conference is the forum where all officials involved in the procurement
meet and discuss all aspects of a specific procurement activity, which includes the technical
specifications, the Approved Budget for the Contract (ABC), the applicability and appropriateness
of the recommended method of procurement and the related milestones, the bidding documents,
and availability of the pertinent budget release for the project.
A. AUDIT OBJECTIVES:
1. To verify if the Pre-Procurement Conference was conducted within the required time;
2. To verify if the participants to the Pre-Procurement Conference were as required;
3. To verify if during the Pre-Procurement Conference the participants, led by the Bids and
Awards Committee (BAC), performed the required tasks and attained the objectives of the
Conference.
Documents needed for evaluation:

1. copy of the approved Minutes of Pre-Procurement Conference duly certified by the BAC
Secretariat;
2. Invitation to Bid;
3. Duly certified copies of the documents (Office Orders, contracts, Organizational/Functional
Charts, etc) which the BAC Secretariat used as bases for identifying and notifying the
participants to the Pre-Procurement Conference, including duly certified copies of the
notices issued with evidence of receipt by the participants.
Suggested Audit Working Paper

Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of the
 Audit Criteria
Answer
1. To verify if the BAC 1. Secure from the BAC Did the BAC conduct
conducted the Pre- Secretariat a duly certified the Pre-Procurement
Procurement Conference copy of the Minutes of Pre- Conference prior to
prior to the advertisement or Procurement Conference the advertisement or
and compare the date the issuance of the
the issuance of the Invitation conference was held with Invitation to Bid?
to Bid the date indicated in the
newspaper or in the print-
Implementing Rules and Regulations out of website page where
(IRR) of RA 9184, as amended on Invitation to Bid was
September 2, 2009: published/posted.
 20.1. Prior to the Advertisement or
the issuance of the Invitation to Bid
for each procurement undertaken
through public bidding, the BAC,
through its Secretariat shall call for
a Pre-Procurement Conference.
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Audit Sub-objective
 Audit Criteria
Answer
2. To verify if the participants 2. Secure from the BAC Did the participants to
to the Pre-Procurement Secretariat duly certified the Pre-Procurement
Conference included the BAC, copies of the documents Conference include
(Office Orders, contracts, the:
the Secretariat, the unit or
Organizational/Functional
officials, including Charts, etc) which it used as a. BAC?
consultants hired by the bases for identifying and
procuring entity, who notifying the participants to b. Secretariat?
prepared the Bidding the Pre-Procurement
Documents and the draft Conference, including duly c. unit or officials
Invitation to Bid certified copies of the who prepared the
notices issued with evidence Bidding
Implementing Rules and Regulations of receipt by the Documents and
(IRR) of RA 9184, as amended on participants. the draft Invitation
September 2, 2009: to Bid?
 20.1…. The pre-procurement 3. From the Minutes of Pre-
conference shall be attended by Procurement Conference d. consultants hired
the BAC, the Secretariat, the unit look for the names of the by the procuring
or officials, including consultants members of the BAC, the entity, who
hired by the procuring entity, who members of the Secretariat, prepared the
prepared the Bidding Documents the officials and/or Bidding
and the draft Invitation to Bid, for consultants who prepared Documents and
each procurement. the Bidding Documents and the draft Invitation
the draft Invitation to Bid. to Bid?
3. To verify if during the Pre- 4. From the Minutes of Pre- Did the participants
Procurement Conference the Procurement Conference led by the BAC
participants, led by the BAC, look for information on the discuss and confirm
presentation of the scope of the:
performed the following
the contract, the ABC, and
tasks and attained the related contract duration, the a. Description of the
objectives: deliberation thereon, and scope of the
a. Discussed relevant the conclusions reached as a contract?
information and confirmed result of the deliberation;
and analyze if they led to b. ABC?
the description of the scope
the confirmation of the
of the contract, the ABC, and description of the scope of c. Contract duration?
contract duration; the contract, the ABC, and
b. Discussed relevant the contract duration.
information and confirmed
that the procurement is in
accordance with the project
procurement management
plan (PPMP) and annual
procurement plan (APP);
c. Discussed relevant
information and confirmed
readiness of the procurement
at hand on the following:
c.1. the availability of
appropriations and 5. From the Minutes of Pre- Did the participants
programmed budget for Procurement Conference led by the BAC
look for information on the discuss and confirm
contract;
presentation of the review of that the:
c.2. completeness of the the PPMP and APP, the
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Audit Sub-objective
 Audit Criteria
Answer
Bidding Documents and deliberation thereon, and a. procurement is in
their adherence to relevant the conclusions reached as a accordance with
general procurement result of the deliberation; the PPMP and
and analyze if they led to APP?
guidelines;
the confirmation if the
c.3. completion of the procurement is in b. appropriations
detailed engineering accordance with the PPMP and programmed
according to the prescribed and APP and availability of budget for the
standards in the case of appropriations and contract are
infrastructure projects; programmed budget for the available?
c.4. confirmation of the contract.
availability of ROW and the
ownership of affected
6. From the Minutes of Pre- Did the participants
properties.
Procurement Conference led by the BAC
d. Reviewed, modified and look for information on the discuss and confirm
agreed on the criteria for presentation of information, that the procurement
eligibility screening, the deliberation thereon, at hand is ready as
evaluation, and post- and the conclusions reached to:
qualification; as a result of the
deliberation; and analyze if a. availability of
f. Reviewed and adopted
they led to the confirmation appropriations and
the procurement schedule, of the readiness of the programmed
including deadlines and procurement at hand as to: budget for the
timeframes, for the different a. availability of contract?
activities; and appropriations and
g. Reiterated and programmed budget for b. completeness of
emphasized the importance the contract, the Bidding
of confidentiality and the b. completeness of the Documents?
Bidding Documents and
applicable sanctions and
their adherence to the c. adherence of the
penalties, as well as agreed Philippine Bidding Bidding
on measures to ensure Documents (PBDs)/ Documents with
compliance with the customized Bidding the PBDs/
foregoing. Documents, customized
Implementing Rules and Regulations c. completion of the detailed Bidding
(IRR) of RA 9184, as amended on engineering according to Documents?
September 2, 2009: the prescribed standards;
 20.1. … During the conference, the d. availability of ROW and d. completion of the
participants, led by the BAC, shall: the ownership of affected detailed
a. Confirm the description and scope properties. engineering
of the contract, the ABC, and according to the
contract duration; prescribed
b. Ensure that the procurement is in standards?
accordance with the project and
annual procurement plans; e. availability of ROW
c. Determine the readiness of the and the ownership
procurement at hand, including, of affected
among other aspects, the following: properties?
i) availability of appropriations
and programmed budget for 7. From the Minutes of Pre- Did the participants
the contract; Procurement Conference led by the BAC
ii) completeness of the Bidding look for information on the discuss and confirm
Documents and their presentation of the criteria the criteria for:
adherence to relevant for eligibility screening, bid
general procurement evaluation, and post- a. Eligibility
qualification, the deliberation screening?
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 Audit Criteria
Answer
guidelines; thereon, and the conclusions
iii) completion of the detailed reached as a result of the b. Bid evaluation?
engineering according to deliberation; and analyze if
the prescribed standards in they led to the confirmation c. Post-qualification?
the case of infrastructure of the criteria for eligibility
projects; screening, bid evaluation,
iv) confirmation of the and post-qualification.
availability of ROW and the
ownership of affected 8. From the Minutes of Pre- Did the participants
properties. Procurement Conference led by the BAC
d. Review, modify and agree on look for information on the discuss and confirm
the criteria for eligibility presentation of the the adoption of the
screening, evaluation, and post- procurement schedule, procurement schedule
qualification; including deadlines and including deadlines
e. Review and adopt the timeframes for the different and timeframes for
procurement schedule, including activities, the no-contact the different
deadlines and timeframes, for rule, the deliberation activities?
the different activities; and thereon, and the conclusions
f. Reiterate and emphasize the reached as a result of the
importance of confidentiality deliberation; and analyze if
and the applicable sanctions they led to the confirmation
and penalties, as well as agree of the adoption of the
on measures to ensure procurement schedule
compliance with the foregoing. including deadlines and
timeframes for the different
 7.2. No procurement shall be activities.
undertaken unless it is in
accordance with the approved 9. From the Minutes of Pre- Did the participants
APP of the procuring entity. The Procurement Conference led by the BAC
APP shall bear the approval of look for information on the reiterate and
the Head of the Procuring Entity reiteration and emphasis of emphasize the
or second-ranking official the importance of importance of
designated by the Head of the confidentiality and the confidentiality and the
Procuring Entity to act on his applicable sanctions and applicable sanctions
behalf, and must be consistent penalties, as well as the and penalties, as well
with its duly approved yearly agreement on measures to as the agreement on
budget. ensure compliance. measures to ensure
compliance?
GPPB Circular 01-2009 dated 20
January 2009:
 …
4.2. To facilitate the immediate
implementation of projects even
pending approval of the GAA,
the ABC shall be based on the
budget levels under the National
Expenditure Program (NEP)
submitted to Congress.
4.3. For specifically appropriated
projects, agencies can proceed
with the procurement activities
prior to issuance of the notice of
award using as basis the NEP
figures.
4.4. For lump-sum appropriations and
Centrally Managed Items (CMIs)
under the agency’s budget, the
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Audit Sub-objective
 Audit Criteria
Answer
head of the agency shall
identify and thereafter notify
the implementing units (IUs) of
the amount allocated for the
projects they are to implement.
On the basis of said notification,
the heads of the respective IUs,
as procuring entities, can
proceed with the procurement
activities prior to issuance of the
notice of award.
4.5. For Multi-Year Projects (MYPs),
for which the initial funding –
sourced from either the
existing/current year’s budget or
the NEP – is not sufficient to
cover the total cost of the
project, it is required that a
Multi-Year Obligational Authority
(MYOA) must already have been
issued in accord with DBM
Circular Letter 2004-012 prior to
commencement of any
procurement activity.
Thus, the MYOA shall be a
pre-requisite for procurement of
a multi-year contract. All
procurement activities should be
within the total project cost and
categories reflected in the
MYOA issued by DBM for the
said MYP.
4.6. As prescribed under Section 47,
Chapter 8, Subtitle B, Title I,
Book V of the Administrative
Code of 1987, no contract
involving the expenditure of
public funds shall be entered
into unless the proper
accounting official of the
procuring entity shall have
certified as to the availability of
funds and the allotment to
which the expenditure or
obligation may be properly
charged.
 Definition:
3.1. Allotment - document
issued by the Department of
Budget and Management
(DBM) which authorizes an
agency to incur obligations for
a specified amount as
contained in a legislated
appropriation. The allotment
issued may either be trough
the Agency Budget Matrix
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Audit Sub-objective
 Audit Criteria
Answer
(ABM) which covers the
comprehensive release of
specifically appropriated items
in the agency’s budget or
through the Special Allotment
Release Order (SARO).
3.2. Annual Procurement Plan

(APP) – the requisite
document that the agency
must prepare to reflect the
entire procurement activity
(i.e., goods, services, civil
works to be procured) that it
plans to undertake within the
calendar year. This document
contains the following
information:
3.2.1. Name of the procurement
program/project;
3.2.2. Project management
office or end-user unit;
3.2.3. General description of the
procurement;
3.2.4. Procurement method to
be adopted;
3.2.5. Time schedule for each
procurement activity;
3.2.6. Source of fund; and
3.2.7. Approved Budget for the
Contract.
3.3. Approved Budget for the

Contract (ABC) – refers to the
following:
NGs including SUCs (referred to
in Section 2.1)
3.3.1. For specifically
appropriated items as reflected
in the annual budget of the
national government agency, the
amount corresponding to either
the full cost of a single year or
multi-year program/project/
activity. For multi-year projects,
for which a Multi-Year
Obligational Authority has been
issued, the ABC shall be the
amount reflected in the Multi-
Year Obligational Authority.
GOCCs and LGUs (referred to in
Section 2.2)
3.3.3. In the case of GOCCs,
including government financial
institutions as well as LGUs, the
ABC represents the amount of
fund transfers which they receive
from a national government
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Audit Sub-objective
 Audit Criteria
Answer
agency to implement a
program/project/activity.
3.5. Lump-Sum Appropriations

and Centrally Management Items
(CMIs) – those itme in the
budget of agencies for which the
Implementing Units and the
specific amounts allocated for
each have not been identified in
the National Expenditure
Program (NEP) or the General
Appropriations Act (GAA).
3.8. Multi-Year Obligational

Authority (MYOA) – a document
issued by the DBM either for
locally funded projects or foreign
assisted projects implemented by
agencies in order to authorize
the latter to enter into multi-year
contracts for the full project cost.
A MYOA, which contains an
annual breakdown of the full
project cost, obligates agencies
to include in their budget
proposal for the ensuring years
the amount programmed for the
said year(s).
3.9. National Expenditure

Program (NEP) – the proposed
national budget submitted by the
President to Congress in accord
with Section 22, Article VII of the
Constitution. The NEP shall be
the basis of the general
appropriations bill, which upon
its enactment, becomes the
General Appropriations Act
(GAA).

instances of non-compliance non-compliance to Appropriate Audit Working Papers
on the: establish the effects and
develop appropriate audit
a. validity of the procurement recommendations.
activities and outputs
including the validity of the Also determine if
resulting contract; appropriate actions were
b. validity of any payment to regard to instances of
be made on the basis of non-compliance.
the contract;
c. etc.
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Audit Sub-objective
 Audit Criteria
Answer
and develop appropriate NOTE:
audit recommendations Also refer to the
OFFENSES AND
Implementing Rules and this Audit Guide.
amended on September 2, 2009:
 Observers shall be invited at least
three (3) calendar days before the
date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.

instances of non-compliance non-compliances to Appropriate Audit Working Papers
and develop appropriate establish the cause(s) and
audit recommendations
recommendations.
Also determine if
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

results of the audit with the audit/ validation document Audit Observation Memorandum (AOM), if applicable
auditee’s Management reflecting the results of
the audit/validation and
 COA Circular No. 2009-006 dated transmit to Management
September 15, 2009 re- Prescribing
the Use of the Rules and
Regulations on Settlement of
Accounts
III. ADVERTISING AND POSTING OF THE INVITATION TO BID

(For procurement of infrastructure projects costing more than P5 million)
Advertising and posting are conducted to ensure transparency of the procurement

process, widest possible dissemination to increase the number of prospective bidders, and
intensify competition for the procurement activity or project
A. AUDIT OBJECTIVE:
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To verify if the Invitation to Bid was advertised and posted in the media and within the
specified time as required

1. Entire page of the newspaper where the Invitation to Bid was advertised;
2. Document used by the BAC Secretariat to verify from the publisher the extent of
circulation of the newspaper and the first day of its publication;
3. Printout of the web page where the Invitation to Bid was posted in the PhilGEPS website,
the website of the procuring entity concerned, if available, and website prescribed by the
foreign government/ foreign or international financing institution, if applicable for the first
day and at least the last day of posting;
4. Certification by the head of the BAC Secretariat of the procuring entity that the invitation
was posted at any conspicuous place reserved for the purpose in the premises of the
procuring entity for 7 calendar days.

 Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
1. To verify if the BAC 1. From the entire page of Did the BAC advertise
advertised the Invitation to the newspaper where the the Invitation to Bid
Bid in a newspaper of Invitation to Bid was in a newspaper of
advertised, to be submitted general nationwide
general nationwide
to the Auditor on the day of circulation which has
circulation which has been advertisement, validate the been regularly
regularly published for at advertisement. published for at least
least 2 years before the date 2 years before the
of issue of the advertisement 2. From the verification date of issue of the
document obtained by the advertisement?
Implementing Rules and Regulations BAC Secretariat from the
(IRR) of RA 9184, as amended on publisher, check the extent
September 2, 2009: of circulation of the
 21.2.1. Except as otherwise newspaper and the first day
provided in Sections 21.2.2 and of publication.
54.2 of this IRR and for the
procurement of common-use
goods and supplies, the Request
for Expression of Interest shall be:
a. Advertised at least once in a
newspaper of general nationwide
circulation which has been
regularly published for at least 2
years before the date of issue of
the advertisement
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the Answer
2. To verify if the BAC posted 3. Ahead of any Did the BAC post the
the Invitation to Bid procurement, request the Invitation to Bid
continuously in the PhilGEPS BAC Secretariat for advance continuously in the:
information on the first day
website, the website of the
of any posting. 1. PhilGEPS website
procuring entity concerned, for 7 calendar
if available, and the website 4. On the first day of posting days starting on
prescribed by the foreign access the PhilGEPS website, the date of
government/foreign or the website of the procuring advertisement?
international financing entity concerned, if
institution, if applicable, for available, and website 2. website of the
7 calendar days starting on prescribed by the foreign procuring entity
the date of advertisement government/ foreign or concerned, if
international financing available, for 7
institution, if applicable. calendar days
Implementing Rules and Regulations
Print the page where the starting on the
(IRR) of RA 9184, as amended on
notice was posted (to form date of
September 2, 2009:
part of the audit evidences). advertisement?
 21.2.1. Except as otherwise
provided in Sections 21.2.2 and
5. Access the websites at 3. website
random during the 7-day prescribed by the
period to verify the postings. foreign
goods and supplies, the Invitation
government/
to Bid shall be:
OR foreign or
a. …
From the printouts of the international
b. Posted continuously in the
web pages indicating the financing
PhilGEPS website, the website
dates of printing, obtained institution, if
of the procuring entity
from and duly certified by applicable, for 7
concerned, if available, and the
the BAC Secretariat as a true calendar days
website prescribed by the
and correct, compare these starting on the
foreign government/foreign or
dates with the required date of
international financing
dates of posting. advertisement?
institution, if applicable, for 7
calendar days starting on the
date of advertisement
the Invitation to Bid procurement, request the Invitation to Bid:
continuously at any BAC Secretariat for advance
information on the first day 1. continuously for
conspicuous place reserved
of any posting. seven (7) calendar
for the purpose in the days?
premises of the procuring 7. Conduct ocular inspection
entity for 7 calendar days, as on the first day of posting. 2. at the conspicuous
certified by the head of the place reserved for the
BAC Secretariat of the 8. Repeat the ocular purpose in the
procuring entity inspections (may be at premises of the
random) during the 7-day procuring entity?
Implementing Rules and Regulations period to verify the postings.
(IRR) of RA 9184, as amended on 3. as certified by the
September 2, 2009: 9. Request for the head of the BAC
 21.2.1. Except as otherwise certification of the head of Secretariat of the
provided in Sections 21.2.2 and the BAC Secretariat. procuring entity?
goods and supplies, the Invitation
to Bid shall be:
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the Answer
a.…
b. …
c. Posted at any conspicuous place
reserved for the purpose in the
premises of the procuring entity
for 7 calendar days, as certified
by the head of the BAC
Secretariat of the procuring
entity.

instances of non-compliance non-compliance to establish Appropriate Audit Working Papers
on the: the effects and develop
appropriate audit
a. validity of the recommendations.
procurement activities and
outputs including the Also determine if
validity of the resulting appropriate actions were
contract;
b. validity of any payment to compliance.
be made on the basis of
the contract;
c. etc.
NOTE:
and develop appropriate Also refer to the
audit recommendations OFFENSES AND
this Audit Guide.
three (3) calendar days before
the date of the procurement
invited in writing.

instances of non-compliance non-compliances to establish Appropriate Audit Working Papers
and develop appropriate the cause(s) and develop
appropriate audit
recommendations.
Also determine if
compliance.
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NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

results of the audit with the audit/ validation document Audit Observation Memorandum (AOM), if
auditee’s Management reflecting the results of the applicable
 COA Circular No. 2009-006 dated to Management
September 15, 2009 re-
Prescribing the Use of the Rules
and Regulations on Settlement of
Accounts
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IV. POSTING OF THE INVITATION TO BID
(For procurement of infrastructure projects costing P5 million and below)
A. AUDIT OBJECTIVE:
To verify if the Invitation to Bid was posted in the media as required and within the specified
time

1. Printouts (duly certified by the BAC Secretariat as true and correct) of the web pages
where the Invitation to Bid was posted in the PhilGEPS website, the website of the
procuring entity concerned, if available, and website prescribed by the foreign
government/ foreign or international financing institution, if applicable, for every day of
the posting, indicating the dates of printing
2. Certification by the head of the BAC Secretariat of the procuring entity that the invitation
was posted at any conspicuous place reserved for the purpose in the premises of the
procuring entity for 7 calendar days.

the Answer
the Invitation to Bid procurement, request the Invitation to Bid
continuously in the PhilGEPS BAC Secretariat for continuously in the:
advance information on
website, the website of the
the first day of any 1. PhilGEPS website
procuring entity concerned, if posting. for 7 calendar
available, and the website days starting on
prescribed by the foreign 2. On the first day of the date of
government/foreign or posting access the advertisement?
international financing PhilGEPS website, the
institution, if applicable, for 7 website of the procuring 2. website of the
calendar days starting on the entity concerned, if procuring entity
date of advertisement available, and website concerned, if
prescribed by the foreign available, for 7
government/ foreign or calendar days
international financing starting on the
institution, if applicable. date of
September 2, 2009:
Print the page where the advertisement?
 21.2.1. Except as otherwise
notice was posted (to
provided in Sections 21.2.2 and
form part of the audit 3. website prescribed
evidences). by the foreign
procurement of common-use goods
government/
and supplies, the Invitation to Bid
3. Access the websites at foreign or
shall be:
random during the 7-day international
b. …
period to verify the financing
b. Posted continuously in the
postings. institution, if
PhilGEPS website, the website of
applicable, for 7
the procuring entity concerned, if
OR calendar days
available, and the website
From the printouts of the starting on the
prescribed by the foreign web pages indicating the date of
government/foreign or dates of printing, obtained advertisement?
international financing institution, from and duly certified by
if applicable, for 7 calendar days the BAC Secretariat as a
starting on the date of true and correct, compare
advertisement these dates with the
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the Answer
required dates of posting.
the Invitation to Bid procurement, request the Invitation to Bid:
continuously at any BAC Secretariat for
advance information on 1. continuously for
conspicuous place reserved
the first day of any seven (7) calendar
for the purpose in the posting. days?
premises of the procuring
entity for 7 calendar days, as 5. Conduct ocular 2. at the conspicuous
certified by the head of the inspection on the first day place reserved for the
BAC Secretariat of the of posting. purpose in the
procuring entity premises of the
6. Repeat the ocular procuring entity?
Implementing Rules and Regulations inspections (may be at
(IRR) of RA 9184, as amended on random) during the 7-day 3. as certified by the
September 2, 2009: period to verify the head of the BAC
 21.2.1. Except as otherwise postings. Secretariat of the
provided in Sections 21.2.2 and procuring entity?
54.2 of this IRR and for the 7. Request for the
procurement of common-use goods certification of the head of
and supplies, the Invitation to Bid the BAC Secretariat.
shall be:
a.…
b. …
c. Posted at any conspicuous place
reserved for the purpose in the
premises of the procuring entity
for 7 calendar days, as certified
by the head of the BAC
Secretariat of the procuring
entity.

instances of non-compliance non-compliance to Appropriate Audit Working Papers
on the: establish the effects and
b. validity of any payment to regard to instances of
be made on the basis of non-compliance.
the contract;
c. etc.
OFFENSES AND
this Audit Guide.
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invited in writing.

instances of non-compliance non-compliances to Appropriate Audit Working Papers
and develop appropriate establish the cause(s) and
recommendations.
Also determine if
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

auditee’s Management reflecting the results of
the audit/validation and
 COA Circular No. 2009-006 dated transmit to Management
Accounts
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V. ISSUANCE OF BIDDING DOCUMENTS FOR THE PROCUREMENT OF
INFRASTRUCTURE PROJECTS
The bidding documents must be made available to the prospective bidders from the time
the Invitation to Bid is advertised until immediately before the deadline for submission of bids.
A. AUDIT OBJECTIVE:
To determine whether the prescribed procedures and timelines in the issuance of bidding
documents were followed

2. Printouts (duly certified by the BAC Secretariat as true and correct) of the web pages
where the Bidding Documents were posted in the PhilGEPS website, the website of the
procuring entity concerned, if available, and website prescribed by the foreign
government/ foreign or international financing institution, if applicable, for every day of
the posting, indicating the dates of printing;
3. Records of the BAC on issued bidding documents (with information on Official Receipt
numbers) for the procurement at hand.

the Answer
1. To verify if the BAC 1. Compare the “period of Did the BAC make
observed the time required in availability of the Bidding the bidding
making the Bidding Documents” indicated in the documents
Documents available, that is, Invitation to Bid with the available from the
dates of the daily printouts of time the Invitation
from the time the Invitation the web pages day of to Bid was first
to Bid was first advertised up advertising/posting of the advertised/ posted
to the deadline for the Invitation to Bid (day 1 of up to the deadline
submission and receipt of period) and the deadline for for the submission
bids the submission of bids (last and receipt of bids?
day of period).
September 2, 2009:
 17.3. To provide prospective
bidders ample time to examine the
Bidding Documents and to prepare
their respective bids, the concerned
BAC shall make the Bidding
Documents for the contract to be
bid available for the following
period:
a) For the procurement of goods

and infrastructure projects, from
the time the Invitation to Bid is
first advertised/posted until the
deadline for the submission of
bids.
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2. To verify if the BAC posted 2. Ahead of any procurement, Did the BAC post
the Bidding Documents at the request the BAC Secretariat for the Bidding
website of the procuring advance information on the Documents at the:
first day of any posting of
entity and at the PhilGEPS
Bidding Documents. a. PhilGEPS
website from the time that website starting
the Invitation to Bid was 3. On the first day of posting on the first day
advertised up to the deadline access the PhilGEPS website, of
for the submission and the website of the procuring advertisement
receipt of bids entity concerned, if available.
b. website of the
Implementing Rules and Regulations Print the page where the procuring entity
(IRR) of RA 9184, as amended on notice was posted (to form concerned, if
September 2, 2009: part of the audit evidences). available,
 Section 17.5 – The procuring entity starting on the
shall also post the Bidding 4. Access the websites at first day of
Documents at its website and at random from the first day of advertisement
the PhilGEPS website from the time posting up to the deadline for
that the Invitation to Bid is the submission and receipt of
advertised. Prospective Bidders bids to verify the postings.
may download the Bidding
Documents from any of the said
websites; Provided that, bidders
shall pay the fee for the Bidding
Documents upon submission of
their Bids.
3. To verify if all bidders that 5. Compare the records of the Did all the bidders
secured Bidding Documents BAC on issued bidding who submitted bids
paid to the authorized documents (with information pay the correct
on Official Receipt numbers) amount for the
collecting officer of the
for the procurement at hand bidding documents
procuring entity with copies of Official Receipts to the authorized
Implementing Rules and Regulations (ORs) issued by authorized collecting officer of
(IRR) of RA 9184, as amended on collecting officers for the sale the procuring
September 2, 2009: of bidding documents. entity?
 17.4. Bidders may be asked to
pay for the Bidding Documents to 6. After submission of bids, for
recover the cost of its preparation bidders that downloaded
and development. The BAC shall bidding documents, compare
issue the Bidding Documents upon the OR numbers indicated in
payment of the corresponding cost the records of the BAC
thereof to the collecting/ disbursing Secretariat with copies of the
officer of the procuring entity ORs or Report of Collection of
concerned. authorized collecting officers.
 17.5. … Prospective bidders may
download the Bidding Documents
from any of the said websites;
Provided that, bidders shall pay the
fee for the Bidding Documents upon
submission of their bids.
1. To verify the effects of Analyze the instances of non-
instances of non-compliance compliance to establish the Appropriate Audit Working Papers
on the: effects and develop
appropriate audit
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activities and outputs Also determine if appropriate
including the validity of the actions were taken by the
resulting contract; auditee in regard to instances
of non-compliance.
b. validity of any payment to
the contract;
c. etc. NOTE:
Also refer to the OFFENSES
and develop appropriate AND PENALTIES portion of
audit recommendations this Audit Guide.

invited in writing.
2. To verify the causes of Analyze the instances of non-

instances of non-compliance compliances to establish the Appropriate Audit Working Papers
and develop appropriate cause(s) and develop
appropriate audit
recommendations.
Also determine if appropriate

actions were taken by the
auditee in regard to instances
of non-compliance.
NOTE:
AND PENALTIES portion of
this Audit Guide.
3. To communicate the Prepare the appropriate audit/

results of the audit with the validation document reflecting Audit Observation Memorandum (AOM), if
auditee’s Management the results of the applicable
Accounts
VI. PRE-BID CONFERENCE
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Prepared by:
Commission on Audit
For the procurement of infrastructure projects with an
Approved Budget for the Contract of at least One Million Pesos (P 1 Million)
The pre-bid conference is the initial forum where the Procuring Entity’s representatives
and the prospective bidders discuss the different aspects of the procurement at hand.
A pre-bid conference must be held for contracts with ABCs of at least One Million Pesos (P
1 Million). For contracts with ABCs of less than P 1 million, pre-bid conferences may or may not be
held at the discretion of the BAC. The BAC may also decide to hold a pre-bid conference upon the
written request of a prospective bidder.
1. To verify if the BAC conducted a Pre-Bid Conference for a contract with ABC of at least
P1 million;
2. To verify if the BAC conducted the Pre-Bid Conference within the required time;
3. To verify if during the Pre-Bid Conference the participants, led by the BAC, performed
the required tasks.

2. Minutes of the pre-bid conference approved by the BAC;
3. Letters to the participants of the Pre-Bid Conference with evidence of receipt by the
intended receipt and the date of such receipt;
4. Minutes of the BAC meeting on the selection of the Observer from the “pool”;
5. Invitations to the Observers with evidence of receipt,
6. Reports of the BAC Observers.

the Answer
1. To verify if the BAC conducted 1. If the ABC is at least P1 Did the BAC hold a
a Pre-Bid Conference for a million, obtain certified Pre-Bid Conference
contract with ABC of at least P1 copies of the Invitation to for a contract with
Bid and Minutes of the ABC of at least P1
million
Pre-Bid Conference. million?
September 2, 2009:
 22.1. For contracts to be bid with an
approved budget of One Million Pesos
(P1,000,000.00) or more, the BAC shall
convene at least one (1) pre-bid
conference to clarify and/or explain any
of the requirements, terms, conditions,
and specifications stipulated in the
Bidding Documents.
2. To verify if the Pre-Bid 2. Based on the deadline Did the BAC hold
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Conference was held at least for the submission and the Pre-Bid
twelve (12) calendar days before receipt of bids Conference at
the deadline for the submission indicated in the least twelve
and receipt of bids Invitation to Bid, calendar days
determine the 12th day before the deadline
Implementing Rules and Regulations before such deadline. for the submission
(IRR) of RA 9184, as amended on and receipt of bids
September 2, 2009: 3. Compare the date
 22.2 The pre-bid conference shall be
determined in 2. above
held at least twelve (12) calendar days
with the date of
before the deadline for the submission
and receipt of bids. If the procuring holding the Pre-Bid
entity determines that, by reason of the Conference indicated
method, nature, or complexity of the in the certified copy of
contract to be bid or when international the Minutes of Pre-Bid
participation will be more advantageous Conference .
to the GOP,a longer period for the
preparation of bids is necessary, the
pre-bid conference shall be held at least
thirty (30) calendar days before the
deadline for the submission and receipt
of bids.
3. To verify if during the 4. From the Minutes of Did the BAC

Conference the BAC performed Pre-Bid Conference look present, discuss,
the following tasks and attained for information on the and answer queries
presentation/discussion, on the following:
the related objectives:
issues/questions raised by
a. Presented the eligibility prospective bidders, and a. eligibility
requirements as well as the clarifications made requirements?
technical and financial thereon relative to the
components of the contract to following: b. technical
be bid, the evaluation a. eligibility requirements, component of
procedures, evaluation b. technical component of the contract to
criteria, and possible causes of the contract to be bid, be bid?
failure of the bidding; c. financial component of
the contract to be bid, c. financial
d. bid evaluation criteria, component of
b. Discussed the requirements in e. bid evaluation the contract to
the ITB, replied to the bidders’ procedures, be bid?
queries about the f. post-qualification
requirements, specifications criteria, d. bid evaluation
and other conditions of the g. post-qualification criteria?
project, the procedures on the procedures,
bid evaluation of all bidders h. possible causes of e. bid evaluation
and post-qualification failure of the bidding, procedures?
i. requirements in the
evaluation of the lowest
Instructions to Bidders, f. post-
calculated bidder. Emphasized j. specifications, qualification
the warranty requirement of k. other conditions of the criteria?
the project and the different project,
offenses and penalties l. warranty requirement g. post-
provided for in IRR of RA 9184 of the project, qualification
m. different offenses and procedures?
Implementing Rules and Regulations penalties provided for
(IRR) of RA 9184, as amended on in IRR of RA 9184 h. possible causes
September 2, 2009: of failure of the
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the Answer
bidding?
 22.3 The pre-bid conference shall
discuss, among other things, the i. requirements in
eligibility requirements and the the Instructions
technical and financial components of to Bidders?
the contract to be bid. However, at the
option of the Procuring Entity, only j. specifications?
those who have purchased the Bidding
Documents shall be allowed to k. other conditions
participate in the pre-bid conference of the project?
and raise or submit written queries or
clarifications. [amendment per Annex A l. warranty
of GPPB Resolution No. 06-2009 dated requirement of
30 September 2009] the project?
Generic Procurement Manual,
Volume 2, Manual of Procedures for m. different
the Procurement of Infrastructure offenses and
Projects issued by the GPPB: penalties
 The manner by which the pre-bid provided for in
conference is conducted depends on IRR of RA
the discretion of the BAC. However, 9184?
several events need to take place in the
conference, namely:
a. The presentation by the BAC of the
eligibility requirements as well as the
technical and financial components of
the contract to be bid, the evaluation
criteria, and possible causes of failure
of the bidding.
b. The BAC chairperson shall also
discuss the requirements in the ITB,
the replies to the bidders’ queries
about the requirements,
specifications and other conditions of
the project, the bid evaluation of all
bidders and post-qualification
evaluation of the lowest calculated
bidder. Emphasis should also be
given to the warranty requirement of
the project and the different offenses
and penalties provided for in IRR-A of
R.A. 9184.
4. To verify if the BAC 5. Count the number of Did the BAC

Secretariat recorded the days after the date of the Secretariat make
proceedings of the Pre-Bid Pre-Bid Conference up to available the
the date of approval of Minutes of the Pre-
Conference and made the
the Minutes. Bid Conference not
Minutes available to all later than three (3)
participants not later than three calendar days after
(3) calendar days after the pre- the pre-bid
bid conference conference?
6. Count the number of
Implementing Rules and Regulations days after the date of the
(IRR) of RA 9184, as amended on Pre-Bid Conference up to
September 2, 2009: the date of receipt of the
 22.4 The minutes of the pre-bid Minutes by its participants
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conference shall be recorded and made as indicated in the
available to all participants not later “receiving” portion of the
than three (3) calendar days after the letter.
pre-bid conference.
5. To verify if the BAC invited 7. From the Minutes of Did the BAC
Observers: the BAC meeting on the choose the
a. representing the COA, the duly selection of the Observer Observers
recognized private group in a from the “pool”, check for considering:
sector or discipline relevant to the information on the BAC’s
procurement at hand, and a non- evaluation in regard to: a. one
government organization (NGO)  the selection of the representing
from the procuring entity’s Pool of organization from the COA?
Observers; which the Observer
will be invited; b. One
b. that have:
 knowledge, representing
b.1. knowledge, experience or the duly
experience or
expertise in procurement or in the
expertise in recognized
subject matter of the contract to
procurement or in the private group in
be bid;
subject matter of the a sector or
b.2. no actual or potential conflict contract to be bid; discipline
of interest in the contract to be  no actual or potential relevant to the
bid; and conflict of interest in procurement at
b.3. conformed with other relevant the contract to be hand?
criteria determined by the BAC; bid; and
c. at least 3 calendar days prior  conformed with other c. One
to the start of the activity relevant criteria representing a
determined by the non-
Implementing Rules and Regulations BAC. government
(IRR) of RA 9184, as amended on organization?
September 2, 2009:
d. With
 Section 13. Observers knowledge,
13.1. To enhance the transparency of the experience or
process, the BAC shall, in all stages of the expertise in
procurement process, invite, in addition to procurement or
the representative of the COA, at least in the subject
two (2) observers, who shall not have the matter of the
right to vote, to sit in its proceedings contract to be
where: bid?
a) At least one (1) shall come from a duly
recognized private group in a sector or e. With no actual
discipline relevant to the procurement at or potential
hand, for example: conflict of
i) For infrastructure projects, national interest in the
associations of constructors duly contract to be
recognized by the Construction bid?
Industry Authority of the Philippines
(CIAP), such as, but not limited to f. Conformed with
the following: other relevant
(1) Philippine Constructors criteria
Association, Inc.; determined by
(2) National Constructors Association the BAC?
of the Philippines, Inc.; and
(3) Philippine Institute of Civil 8. From certified copies of Did the BAC invite
Engineers (PICE). the invitations to the the Observers at
ii) … Observers with evidence least 3 days before
iii) … and of receipt, compare the the date of the
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b) The other observer shall come from a date of receipt with the 3- pre-bid
non-government organization (NGO). day minimum conference?
requirement.
13.2. The observers shall come from an
organization duly registered with the
Securities and Exchange Commission
(SEC) or the Cooperative Development
Authority (CDA), and should meet the
following criteria:
a) Knowledge, experience or expertise in
procurement or in the subject matter of
the contract to be bid;
b) Absence of actual or potential conflict
of interest in the contract to be bid; and
c) Any other relevant criteria that may be
determined by the BAC.
13.3. Observers shall be invited at

least three (3) calendar days before
the date of the procurement
observers will not nullify the BAC
proceedings, provided that they have
been duly invited in writing.
6. To verify if the Procuring 9. Based on the BAC’s Did the Procuring

Entity considered the comments/ Minutes on the Pre-Bid Entity consider the
observations of the Observers Conference and the report comments/
of the Observers check observations of the
whether a deliberation Observers?
was made on the
comments /observations
September 2, 2009:
of the observers.
 13.4. The observers shall have the
following responsibilities:
a) To prepare the report either jointly or
separately indicating their observations
made on the procurement activities
conducted by the BAC for submission
to the Head of the Procuring Entity,
copy furnished the BAC Chairman. The
report shall assess the extent of the
BAC’s compliance with the provisions
of this IRR and areas of improvement
in the BAC’s proceedings;
b) To submit their report to the procuring
entity and furnish a copy to the GPPB
and Office of the
Ombudsman/Resident Ombudsman. If
no report is submitted by the
observer, then it is understood
that the bidding activity
conducted by the BAC followed
the correct procedure; and
c) To immediately inhibit and notify in
writing the procuring entity concerned
of any actual or potential interest in
the contract to be bid.
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 13.5. Observers shall be allowed

access to the following documents
upon their request, subject to signing
of a confidentiality agreement: (a)
minutes of BAC meetings; (b)
abstract of Bids; (c) post-
qualification summary report; (d)
APP and related PPMP; and (e)
opened proposals.

instances of non-compliance on non-compliance to Appropriate Audit Working Papers
the: establish the effects and
b. validity of any payment to be regard to instances of
made on the basis of the non-compliance.
contract;
c. etc.
and develop appropriate audit NOTE:
recommendations Also refer to the
OFFENSES AND
Implementing Rules and Regulations PENALTIES portion of
(IRR) of RA 9184, as amended on this Audit Guide.
September 2, 2009:
date of the procurement stage/activity.
The absence of observers will not
nullify the BAC proceedings,
provided that they have been duly
invited in writing.

instances of non-compliance and non-compliances to Appropriate Audit Working Papers
develop appropriate audit establish the cause(s) and
recommendations
recommendations.
Also determine if
non-compliance.
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the Answer
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
3. To communicate the results of Prepare the appropriate

the audit with the auditee’s audit/ validation Audit Observation Memorandum (AOM), if
Management document reflecting the applicable
results of the
 COA Circular No. 2009-006 dated audit/validation and
September 15, 2009 re- Prescribing the transmit to Management
Use of the Rules and Regulations on
Settlement of Accounts
VII. SUPPLEMENTAL / BID BULLETINS

FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
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Supplemental/Bid Bulletins may be issued upon the procuring entity’s initiative for purposes of
clarifying or modifying any provision of the Bidding Documents at least seven (7) calendar days
before the deadline for the submission and receipt of bids. Any modification to the Bidding
Documents shall be identified as an amendment.
A. AUDIT OBJECTIVE:
To verify if Supplemental / Bid Bulletins were issued as required

1. Minutes of the Pre-Bid Conference approved by the BAC;
2. Copy of the Supplemental/Bid Bulletin;
3. Copies of Requests for Clarification submitted by bidders with evidence of receipt by the
BAC Secretariat;
4. Printouts of PhilGEPS web page evidencing posting of the Supplemental/Bid Bulletin;
5. Printout of the procuring entity’s web page evidencing posting of the Supplemental/Bid
Bulletin.

the Answer
1. To verify if the BAC issued 1. Go over the Minutes of Did the BAC issue
Supplemental / Bid Bulletins the Pre-Bid Conference Supplemental/Bid
in regard to statements made and check for statements Bulletins in regard to
that could modify the statements made at
at the pre-bid conference that
terms of the Bidding the pre-bid
could modify the terms of the Documents. conference that could
Bidding Documents modify the terms of
2. Obtain a copy of the the Bidding
Implementing Rules and Regulations related Supplemental / Documents to all
(IRR) of RA 9184, as amended on Bid Bulletin and check for bidders that properly
September 2, 2009: the signature of the BAC secured Bidding
 22.4. … Any Chairman. Documents?
statement made at the pre-bid
conference shall not modify the terms 3. From certified copies of
of the Bidding Documents, unless the letters to bidders who
such statement is specifically purchased the Bidding Did the BAC Chairman
identified in writing as an amendment Documents, look for sign the
thereto and issued as a evidences of their receipt Supplemental / Bid
Supplemental/ Bid Bulletin. of the Supplemental/Bid Bulletin?
Bulletins.
 22.5.1. …The BAC shall respond to
the said request by issuing a
Supplemental/Bid Bulletin, duly
signed by the BAC Chairman, to be
made available to all those who have
properly secured the Bidding
Documents, at least seven (7)
calendar days before the deadline for
the submission and receipt of bids.
2. To verify if: 3. Obtain copy/ies of Were Requests for

a. requests for Requests for Clarification Clarification
clarification(s) on any and check (date of receipt submitted at least ten
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the Answer
part of the Bidding stamped on the letters) (10) calendar days
Documents or for an whether these were before the deadline
interpretation were in submitted at least ten (10) set for the submission
calendar days before the and receipt of bids?
writing and submitted to
deadline set for the
the BAC of the procuring submission and receipt of
entity at least ten (10) bids.
calendar days before the
deadline set for the
submission and receipt of
bids;
b. the Supplemental/ Bid 4. Obtain duly certified Did the BAC Chairman
Bulletin was duly signed copies of Supplemental/Bid sign the
by the BAC Chairman; Bulletins and check for the Supplemental / Bid
signature of the BAC Bulletin?
c. the Supplemental/ Bid Chairman.
Bulletin was issued at
least seven (7) calendar
days before the deadline
for the submission and
receipt of bid. 5. From the records of the Did the BAC issue
BAC (copies of Supplemental/ Bid
Implementing Rules and Regulations Supplemental/Bid Bulletins Bulletins at
(IRR) of RA 9184, as amended on with evidence of the date of least seven (7)
September 2, 2009: issuance) count the number calendar days before
 22.5.1 Requests for clarification(s) of days from said issuance the deadline for the
on any part of the Bidding and the deadline for the submission and
Documents or for an interpretation submission and receipt of receipt of bid?
must be in writing and submitted bids; compare with the 7-
to the BAC of the procuring entity day requirement.
at least ten (10) calendar days
before the deadline set for the
submission and receipt of bids. The
BAC shall respond to the said
request by issuing a
signed by the BAC Chairman, to be
made available to all those who
have properly secured the Bidding
Documents, at least seven (7)
calendar days before the deadline
for the submission and receipt of
bids.
3. To verify if:
6. From the records of the Did the BAC issue
a. Supplemental/Bid Bulletins BAC (copies of Supplemental/ Bid
Supplemental/Bid Bulletins Bulletins at
initiated by the procuring
with evidence of the date of least seven (7)
entity for purposes of issuance) count the number calendar days before
clarifying or modifying any of days from said issuance the deadline for the
provision of the Bidding and the deadline for the submission and
Documents were issued at submission and receipt of receipt of bid?
least seven (7) calendar bids; compare with the 7-
days before the deadline day requirement.
for the submission and
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receipt of bids;
b. Modifications to the
Bidding Documents were 7. Go through the contents Did the BAC identify
of Supplemental/Bid modifications to the
identified as amendments;
Bulletins and check if Bidding Documents as
amendments were amendments?
c. the Supplemental/ Bid identified as such.
Bulletin was duly signed by
the BAC Chairman
Implementing Rules and Regulations 8. Go through the Did the BAC Chairman
(IRR) of RA 9184, as amended on Supplemental/Bid Bulletins sign the
September 2, 2009: and check for the signature Supplemental / Bid
 22.5.1. … issuing a of the BAC Chairman. Bulletin?
signed by the BAC Chairman…
 22.5.2 Supplemental/Bid Bulletins

may be issued upon the procuring
entity’s initiative for purposes of
clarifying or modifying any
provision of the Bidding Documents
at least seven (7) calendar days
before the deadline for the
submission and receipt of bids.
Any modification to the Bidding
Documents shall be identified as an
amendment.
4. To verify if the BAC posted 9. In advance of the posting, Did the BAC post
Supplemental/Bid Bulletins it request the BAC Secretariat Supplemental/Bid
issued on the PhilGEPS and for print-outs (printed on the Bulletins:
day of the posting) of
the website of the procuring
Supplemental/ Bid Bulletins a. on the PhilGEPS?
entity concerned, if available as posted on the PhilGEPS
and at their website. and
Implementing Rules and Regulations b. the website of the
(IRR) of RA 9184, as amended on 10. Obtain the printouts procuring entity
September 2, 2009: requested as evidence of the concerned?
 22.5.3 Any Supplemental/ Bid
posting.
Bulletin issued by the BAC shall
also be posted on the PhilGEPS or
[“OR” was changed to “AND” per
Annex “A” of GPPB Resolution No.
06-2009 dated September 30,
2009] the website of the procuring
entity concerned, if available. It
shall be the responsibility of all
those who have properly secured
the Bidding Documents to inquire
and secure Supplemental/Bid
Bulletins that may be issued by the
BAC. However, bidders who have
submitted bids before the issuance
of the Supplemental/Bid Bulletin
must be informed and allowed to
modify or withdraw their bids in
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accordance with Section 26.1 of
the IRR.
5. To verify if the BAC 11. From the BAC records on Did the BAC inform
informed and allowed to submission of bids, identify and allow to modify
modify or withdraw their bids the bidders who have or withdraw their bids
submitted bids before the in accordance with
those bidders who have
issuance of Section 26.1 of the
submitted bids before the Supplemental/Bid Bulletins. IRR the bidders who
issuance of the have submitted bids
Supplemental/Bid Bulletin 12. Go through copies of before the issuance of
letters sent by the BAC to Supplemental/Bid
Implementing Rules and Regulations these bidders and check if Bulletins?
(IRR) of RA 9184, as amended on they were informed and
September 2, 2009: allowed to modify or
withdraw their bids in
 22.5.3 … However, bidders who accordance with Section
have submitted bids before the 26.1 of the IRR.
issuance of the Supplemental/
Bid Bulletin must be informed
and allowed to modify or
withdraw their bids in
accordance with Section 26.1 of
the IRR.

appropriate audit
b. validity of any payment to regard to instances of non-
be made on the basis of compliance.
the contract;
c. etc.
OFFENSES AND
Implementing Rules and PENALTIES portion of
Regulations (IRR) of RA 9184, as this Audit Guide.
invited in writing.
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audit recommendations appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

results of the audit with the audit/ validation document Audit Observation Memorandum (AOM), if
auditee’s Management reflecting the results of the applicable
Accounts
VIII. SUBMISSION, RECEIPT, OPENING

& PRELIMINARY EXAMINATION OF BIDS
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Bids shall be submitted simultaneously in two (2) separate sealed envelopes and received
by the procuring entity on or before the deadline specified in the Invitation to Bid. Opening of Bids
shall be at the time, date and place specified in the Invitation to Bid.
1. To verify if the prescribed conditions and procedures in the submission and receipt of
bids were followed;
2. To verify if the bids were submitted in the prescribed manner, specified forms and
contained all the required information;
3. To verify if the prescribed conditions and procedures in the opening and preliminary
examination of bids were followed.

1. Minutes of the Bid Opening approved by the BAC;
2. Letters from bidders submitting their bids;
3. Bid documents submitted by the bidders:
a. First Envelope and its contents,
b. Second Envelope and its contents,
c. Modified bids, if applicable
4. Copy of portions of the BAC Secretariat’s Receiving logbook containing information on
receipt of bids;
6. Accomplished Checklist for the First Envelopes;
7. Accomplished Checklist for the Second Envelopes;
8. Abstract of Bids as Read;
9. BAC Resolution on the results of the opening of and the preliminary evaluation of bids;
11. Invitations to the Observers with evidence of receipt;

the Answer
SUBMISSION OF BIDS FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
1. To verify if the BAC validated if 1. Go through the Did the BAC validate
the bidders submitted their bids: Minutes of the Bid if the bidders submit
a. through their duly authorized Opening and look for their bids through
information on the BAC’s their duly authorized
representative,
validation if the representative?
b. in two (2) separate sealed bid signatory to the
envelopes submitted document submitting the
simultaneously bid is the bidder’s
authorized
Implementing Rules and Regulations (IRR) of representative as
RA 9184, as amended on September 2, 2009: indicated in the Sworn
 25.1. Bidders shall submit their bids Statement.
through their duly authorized 2. Go through the Did the BAC validate
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representative using the forms specified in Minutes of the Bid if the bidders
the Bidding Documents in two (2) separate Opening and look for submitted their bids
sealed bid envelopes, and which shall be information on the BAC’s using the forms
submitted simultaneously. The first shall validation if each bidder specified in the
contain the technical component of the bid, adopted the forms Bidding Documents?
including the eligibility requirements under specified in the Bidding
Section 23.1 of this IRR, and the second Documents.
shall contain the financial component of the
bid 3. Go through the Did the BAC validate
records of the BAC if the bidders submit
pertaining to the their bids in two (2)
submission of bids of separate sealed bid
each bidder and check if envelopes submitted
the two (2) envelopes simultaneously?
were submitted
simultaneously.
4. Go through the
Minutes of the Bid
Opening and look for
information pertaining to
opening of two (2)
sealed envelops of each
bidder.
2. To verify if the 5. Go through the Did the BAC validate
BAC validated that in modifying a records of the BAC that the bidders
bid: pertaining to the concerned submitted
submission of bids of their bid
each bidder and check if modifications before
a. it was done before the deadline the submission of the deadline for the
for the submission and receipt of modifications were done submission and
bids, before the deadline for receipt?
the submission and
b. the original bid was not retrieved receipt.
but another bid equally sealed,
properly identified, was submitted 6. Go through the Did the BAC validate
and linked to the original bid and Minutes of the Bid if the bidders
marked as a “modification,” Opening and look for concerned did not
information on the BAC’s retrieve the original
thereof, and stamped “received” activities validating if: bid but merely
by the BAC a. bidders did not submitted another
retrieve the original bid equally sealed,
Implementing Rules and Regulations (IRR) of bid but merely properly identified,
RA 9184, as amended on September 2, 2009: submitted another and linked to the
 26.1. A bidder may modify its bid, provided equally sealed and original bid and
that this is done before the deadline for the properly identified as marked as a
submission and receipt of bids. Where a “modification” and “modification,”
bidder modifies its bid, it shall not be stamped “received” thereof, and
allowed to retrieve its original bid, but shall by the BAC; and stamped “received”
only be allowed to send another bid equally b. linked to the original by the BAC?
sealed, properly identified, linked to its bid (not withdrawn).
original bid and marked as a “modification,”
thereof, and stamped “received” by the
BAC. Bid modifications received after the
applicable deadline shall not be considered
and shall be returned to the bidder
unopened.
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RECEIPT OF BIDS FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
1. To verify if the BAC received bids: 1. Check the receiving Did the BAC receive
a. on the date and time, logbook of the BAC for bids on the date and
b. place information on the date, time specified in the
time, and place of Invitation to Bid?
specified in the Invitation to Bid
receipt of bids and
compare these with Did the BAC receive
Implementing Rules and Regulations (IRR) of
those in the Invitation bids at the place
RA 9184, as amended on September 2, 2009:
to Bid. specified in the
 25.4. Bids shall be received by the BAC on Invitation to Bid?
the date, time, and place specified in the
Invitation to Bid.
Did the BAC not
25.5. Bids, including the eligibility
accept bids after the
requirements under Section 23.1 of this
deadline for
IRR, submitted after the deadline shall not
submission of bids?
be accepted by the BAC.
2. To verify if the BAC observed the 2. Count the number of Did the BAC observe
maximum of 50 (or 65) calendar days from the last day the maximum of 50-
days from the last day of posting of of posting of the or 65 calendar days
Invitation to Bid (per from the last day of
the Invitation to Bid up to the
printout of the web posting of the
deadline for submission and receipt page with the date Invitation to Bid up to
of bids indicated thereon) up to the deadline for
the deadline for submission and
Implementing Rules and Regulations (IRR) of submission and receipt receipt of bids?
RA 9184, as amended on September 2, 2009: of bids (per Bidding
 25.4. Bids shall be received by the BAC on Documents) and
the date, time, and place specified in the compare with the 50- or
Invitation to Bid/Request for Expression of 65-calendar-day
Interest. The following periods from the maximum period.
last day of posting of the Invitation to
Bid/Request for Expression of Interest up
to the submission and receipt of bids shall
be observed:
a)...
b) For infrastructure projects, the following
maximum periods:
Approved Budget Period

for the Contract
(in Philippine
currency)
Fifty (50) million 50 calendar days
and below
Above fifty (50) 65 calendar days
million
c) …
OPENING & PRELIMINARY EXAMINATION OF BIDS FOR THE

PROCUREMENT OF INFRASTRUCTURE PROJECTS
1. To verify if the BAC observed 1. From the Office Was there a quorum
quorum. Order creating the BAC, of the BAC?
determine the number
Implementing Rules and Regulations (IRR) of of BAC members and
identify the Chairman or
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RA 9184, as amended on September 2, 2009: Vice-Chairman.
 12.3 Quorum
A majority of the total BAC composition as 2. From the Minutes of
designated by the Head of the Procuring Entity Opening of Bids, check
shall constitute a quorum for the transaction for the presence of the
of business, provided that the presence of the Chairman or Vice-
Chairman or Vice-Chairman shall be required. Chairman and if
majority of the BAC
members or
representatives/alternat
es attended the
proceedings.
2. To verify if the BAC opened the 3. Compare the date Did the BAC open the
bids immediately after the deadline and time of the opening bids immediately after
for the submission and receipt of of bids indicated in the the deadline for the
Minutes of the Opening submission and
bids and at the:
of Bids with the receipt of bids?
a. date, deadline for submission
b. time, and and receipt of bids Did the BAC open the
c. place stated in the Bidding bids on the date
specified in the Invitation to Bid Documents. specified in the
Invitation to Bid?
Implementing Rules and Regulations (IRR) of 4. Compare the date,
RA 9184, as amended on September 2, 2009: time and place of the Did the BAC open the
 29. Bid Opening opening of bids bids on the time
The BAC shall open the bids immediately indicated in the Minutes specified in the
after the deadline for the submission and of the Opening of Bids Invitation to Bid?
receipt of bids. [GPPB Resolution No. 13- with those specified in
2009, dated 16 December 2009] The time, the Invitation to Bid. Did the BAC open the
date, and place of the opening of bids shall bids at the place
be specified in the Bidding Documents. The specified in the
bidders or their duly authorized Invitation to Bid?
representatives may attend the opening of
bids. The BAC shall adopt a procedure for
ensuring the integrity, security, and
confidentiality of all submitted bids. The
minutes of the bid opening shall be made
available to the public upon written request
and payment of a specified fee to recover
cost of materials.
3. To verify if the BAC/BAC 5. From the Minutes of Did the BAC:

Secretariat read out and recorded Bid Opening, check for
during bid opening letters of information on the a. read out and
BAC’s reading out and record during bid
withdrawal and returned to the
recording of withdrawn opening letters of
bidder the envelope containing the bids during the bid withdrawal of bids?
corresponding withdrawn bid opening; checking of
unopened, either to the bidder’s the date of submission b. if the withdrawal of
representative if he is present or by of the withdrawal letter; bid was made before
registered mail and returning the the deadline for
withdrawn bid submission and
Philippine Bidding Documents for the unopened. receipt of bids, return
Procurement of Infrastructure Projects, 3rd the bids unopened to
edition (October 2009) approved per GPPB Also check for evidence representatives of the
Resolution No. 05-2009 dated 30 September of the return of the bidders concerned
withdrawn bids from present during the bid
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2009: acknowledged opening?
registered mails.
 23. Modification and Withdrawal of Bids c. if the withdrawal of
7.1. … bid was made before
7.2. A Bidder may, through a the deadline for
letter of withdrawal, withdraw its bid submission and
after it has been submitted, for valid and receipt of bids, return
justifiable reason; provided that the withdrawn bids
letter of withdrawal is received by the unopened by
Procuring Entity prior to the deadline registered mail?
prescribed for submission and receipt of
bids. 6. From the Minutes of Did the BAC forfeit
7.3. Bids requested to be the Bid Opening, check the bid security and
withdrawn in accordance with ITB Clause for information on recommend the
23.1, shall be returned unopened to the withdrawals of bids imposition of
Bidders. A Bidder may also express its made after the deadline sanctions on bidders
intention not to participate in the bidding for submission and who withdrew their
through a letter which should reach and receipt of bids up to the bids during the
be stamped by the BAC before the expiration of the period interval between the
deadline for submission and receipt of of bid validity specified deadline for
bids. A Bidder that withdraws its bid by the bidder in the submission of bids
shall not be permitted to submit another financial bid form; and and the expiration of
bid, directly or indirectly, for the same for information on the period of bid
contract. forfeiture of bid security validity specified by
7.4. No bid may be modified and imposition of the Bidder on the
after the deadline for submission of bids. sanctions on these Financial Bid Form?
No bid may be withdrawn in the interval bidder.
between the deadline for submission of
bids and the expiration of the period of
bid validity specified by the Bidder on the
Financial Bid Form. Withdrawal of a bid
during this interval shall result in the
forfeiture of the Bidder’s bid security,
pursuant to ITB Clause 18.5, and the
imposition of administrative, civil, and
criminal sanctions as prescribed by RA
9184 and its IRR.
 24. Opening and Preliminary Examination

of Bids
24.3 Letters of withdrawal shall be read
out and recorded during bid opening, and
the envelope containing the corresponding
withdrawn bid shall be returned to the
Bidder unopened. If the withdrawing
Bidder’s representative is in attendance,
the original bid and all copies thereof shall
be returned to the representative during
the bid opening. If the representative is not
in attendance, the bid shall be returned
unopened by registered mail. The Bidder
may withdraw its bid prior to the deadline
for the submission and receipt of bids,
provided that the corresponding Letter of
Withdrawal contains a valid authorization
requesting for such withdrawal, subject to
appropriate sanctions.
4. To verify if the BAC opened the 7. From the Attendance Did the BAC open the
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first bid envelopes of the bidders in Record/Minutes of the first bid envelopes of
public Opening of Bids check if the bidders in public?
the participants
Implementing Rules and Regulations (IRR) of included bidders and
RA 9184, as amended on September 2, 2009: observers.
 30.1. The BAC shall open the first bid
envelopes of prospective bidders in public
to determine each bidder’s compliance with
the documents required to be submitted for
eligibility and for the technical
requirements, as prescribed in this IRR. For
this purpose, the BAC shall check the
submitted documents of each bidder
against a checklist of required documents
to ascertain if they are all present, using a
nondiscretionary “pass/fail” criterion, as
stated in the Instructions to Bidders. If a
bidder submits the required document, it
shall be rated “passed” for that particular
requirement. In this regard, bids that fail to
include any requirement or are incomplete
or patently insufficient shall be considered
as “failed”. Otherwise, the BAC shall rate
the said first bid envelope as “passed”
5. To verify if the BAC determined 8. Compare the Did the BAC adopt a
compliance of each bidder with the Checklist for the first Checklist for the first
documents required to be submitted envelope adopted by envelope in
the BAC with the list of accordance with the
in the first envelope by checking the
documents in the first list of documents in
submitted documents of each bidder envelope per Bidding the first envelope per
against a checklist of required Documents. Bidding Documents?
documents to ascertain if they are all
present, using a nondiscretionary 9. Determine if the Did the BAC
“pass/fail” criterion, as stated in the BAC’s entries in the determine each
Instructions to Bidders Checklist are complete. bidder’s compliance
with the documents
Implementing Rules and Regulations (IRR) of required to be
RA 9184, as amended on September 2, 2009: submitted in the first
 30.1. The BAC shall open the first bid envelope:
envelopes of prospective bidders in public to
determine each bidder’s compliance with the a. Registration
documents required to be submitted for certificate from
eligibility and for the technical requirements, SEC, Department
as prescribed in this IRR. For this purpose, of Trade and
the BAC shall check the submitted documents Industry (DTI) for
of each bidder against a checklist of required sole
documents to ascertain if they are all present, proprietorship, or
using a nondiscretionary “pass/fail” criterion, CDA for
as stated in the Instructions to Bidders. If a cooperatives, or
bidder submits the required document, it shall any proof of such
be rated “passed” for that particular registration as
requirement. In this regard, bids that fail to stated in the
include any requirement or are incomplete or Bidding
patently insufficient shall be considered as Documents?
“failed”. Otherwise, the BAC shall rate the
said first bid envelope as “passed”. b. In a Joint
Venture, each
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 25.2. The first envelope shall contain the partner’s
following technical information/ documents, Registration
at the least: certificate from
a) … SEC, Department
b) For the procurement of infrastructure of Trade and
projects: Industry (DTI) for
i) Eligibility requirements under Section sole
23.1 of this IRR; proprietorship, or
ii) The bid security in the prescribed form, CDA for
amount and validity period; cooperatives, or
iii) Project Requirements, which shall any proof of such
include the following: registration as
(1) Organizational chart for the contract to stated in the
be bid; Bidding
(2) List of contractor’s personnel (viz, Documents?
Project Manager, Project Engineers,
Materials Engineers, and Foremen), to be c. Mayor’s permit
assigned to the contract to be bid, with issued by the city
their complete qualification and or municipality
experience data; where the
(3) List of contractor’s equipment units, principal place of
which are owned, leased, and/or under business of the
purchase agreements, supported by prospective bidder
certification of availability of equipment is located?
from the equipment lessor/vendor for the
duration of the project; d. In a Joint Venture,
iv) Sworn statement by the prospective each partner’s
bidder or its duly authorized representative Mayor’s permit
in the form prescribed by the GPPB as to issued by the city
the following: or municipality
(1) It is not “blacklisted” or barred from where the
bidding by the GOP or any of its principal place of
agencies, offices, corporations, or LGUs, business of the
including foreign government/foreign or prospective bidder
international financing institution whose is located?
blacklisting rules have been recognized
by the GPPB; e. Statement of the
(2) Each of the documents submitted in prospective bidder
satisfaction of the bidding requirements of all its ongoing
is an authentic copy of the original, and completed
complete, and all statements and government and
information provided therein are true and private contracts,
correct; including contracts
(3) It is authorizing the Head of the awarded but not
Procuring Entity or his duly authorized yet started, if any,
representative/s to verify all the whether similar or
documents submitted; not similar in
(4) The signatory is the duly authorized nature and
representative of the prospective bidder, complexity to the
and granted full power and authority to contract to be bid,
do, execute and perform any and all acts within the relevant
necessary and/or to represent the period as provided
prospective bidder in the bidding, with in the Bidding
the duly notarized Secretary’s Certificate Documents?
attesting to such fact, if the prospective
bidder is a corporation, partnership, e.1. In a Joint
cooperative, or joint venture; Venture, any
(5) It complies with the disclosure provision partner’s
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under Section 47 of the Act in relation to statement of all its
other provisions of R.A. 3019; ongoing and
(6) It complies with the responsibilities of a completed
prospective or eligible bidder provided in government and
the PBDs; and private contracts,
(7) It complies with existing labor laws and including contracts
standards, in the case of procurement of awarded but not
services. yet started, if any
 23.1. For purposes of determining the f. The bidder’s

eligibility of bidders using the criteria stated audited financial
in Section 23.5 of this IRR, only the following statements,
documents shall be required by the BAC, showing, among
using the forms prescribed in the Bidding others, the
Documents,: prospective
bidder’s total and
a) Class “A” Documents
current assets and
Legal Documents liabilities, stamped
i) Registration certificate from SEC, “received” by the
Department of Trade and Industry (DTI) BIR or its duly
for sole proprietorship, or CDA for accredited and
cooperatives, or any proof of such authorized
registration as stated in the Bidding institutions, for the
Documents. preceding calendar
ii) Mayor’s permit issued by the city or year which should
municipality where the principal place of not be earlier than
business of the prospective bidder is two (2) years from
located. the date of bid
Technical Documents submission?
iii) Statement of the prospective bidder of
all its ongoing and completed f.1. In a Joint
government and private contracts, Venture, any
including contracts awarded but not yet partner’s audited
started, if any, whether similar or not financial statement
similar in nature and complexity to the
contract to be bid, within the relevant
period as provided in the Bidding g. The bidder’s
Documents. The statement shall include computation for its
all information required in the PBDs Net Financial
prescribed by the GPPB. Contracting
iv) In the case of procurement of Capacity (NFCC)
infrastructure projects, a valid Philippine or a commitment
Contractors Accreditation Board (PCAB) from a Universal
license and registration for the or Commercial
type and cost of the contract to be bid Bank to extend a
credit line in favor
Financial Documents of the prospective
v) The prospective bidder’s audited bidder if awarded
financial statements, showing, among the contract to be
others, the prospective bidder’s total and bid (CLC)?
current assets and liabilities, stamped
“received” by the BIR or its duly g.1. In a Joint
accredited and authorized institutions, for Venture, any
the preceding calendar year which should partner’s NFCC or
not be earlier than two (2) years from CLC
the date of bid submission.
vi) The prospective bidder’s computation h. Valid joint venture
for its Net Financial Contracting Capacity Agreement (JVA),
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the Answer
(NFCC) or a commitment from a in case the joint
Universal or Commercial Bank to extend venture is already
a credit line in favor of the prospective in existence.
bidder if awarded the contract to be bid
(CLC). In the absence
of a JVA, duly
b) Class “B” Document
notarized
Valid joint venture Agreement (JVA), in statements from
case the joint venture is already in all the potential
existence. In the absence of a JVA, duly joint venture
notarized statements from all the potential partners stating
joint venture partners stating that they will that they will enter
enter into and abide by the provisions of into and abide by
the JVA in the instance that the bid is the provisions of
successful shall be included in the bid. the JVA in the
Failure to enter into a joint venture in the instance that the
event of a contract award shall be ground bid is successful?
for the forfeiture of the bid security. Each
partner of the joint venture shall submit the i. The bid security in
legal eligibility documents. The submission the prescribed:
of technical and financial eligibility a. form?
documents by any of the joint venture b. amount?
partners constitutes compliance. c. validity
period?
 27.1. All bids shall be accompanied by a bid
security, payable to the procuring entity j. Project
concerned as a guarantee that the Requirements,
successful bidder shall, within ten (10) which shall
calendar days or less, as indicated in the include:
Instructions to Bidders, from receipt of the a. Organizational
notice of award, enter into contract with chart for the
the procuring entity and furnish the contract to be
performance security required in Section 39 bid?
of this IRR, except when Section 37.1 of b. List of
this IRR allows a longer period. Failure to contractor’s
enclose the required bid security in the personnel
form and amount prescribed herein shall (viz, Project
automatically disqualify the bid concerned. Manager,
Project
 27.2 The bid security shall be in an Engineers,
amount equal to a percentage of the Materials
ABC in accordance with the following Engineers,
schedule [as amended by Annex A of and
GPPB Resolution No. 06-2009 dated Foremen), to
September 30, 2009]: be assigned
to the
contract to be
bid, with their
complete
qualification
Amount of and
Bid Security experience
Form of Bid Security (Equal to
data?
Percentage
of the ABC) c. List of
a) Cash or cashier’s/ manager’s contractor’s
check issued by a Universal or Two equipment
Commercial Bank. percent units, which
b) Bank draft/ guarantee or (2%) are owned,
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irrevocable letter of credit issued leased, and/or
by a Universal or Commercial under
Bank: Provided, however, that it purchase
shall be confirmed or authentic- agreements,
ated by a Universal or
Commercial Bank, if issued by a
supported by
foreign bank. certification of
c) Surety bond callable upon availability of
demand issued by a surety or Five equipment
insurance company duly certified percent from the
by Insurance Commission as (5%) equipment
authorized to issue such security. lessor/vendor
d) Any combination of the Proportion- for the
foregoing. ate to share
duration of
of form
with respect the project?
to total
amount of k. Sworn statement
security by the prospective
bidder or its duly
For biddings conducted by LGUs, the authorized
prospective bidder may also submit bid representative in
securities in the form of cashier’s/manager’s the form
check, bank draft/guarantee, or irrevocable prescribed by the
letter of credit from other banks certified by GPPB as to the
the BSP as authorized to issue such financial following:
instrument. (1) It is not
“blacklisted” or
 27.3. The bid security shall be denominated barred from
in Philippine Pesos and posted in favor of the bidding by the
procuring entity. GOP or any of
its agencies,
 Section 47. Disclosure of Relations offices,
All bids shall be accompanied by a sworn corporations, or
affidavit of the bidder that it is not related to LGUs, including
the Head of the Procuring Entity, members of foreign
the BAC, the TWG, and the BAC Secretariat, government/
the head of the PMO or the end-user unit, and foreign or
the project consultants, by consanguinity or international
affinity up to the third civil degree. Failure to financing
comply with the aforementioned provision institution
shall be a ground for the automatic whose
disqualification of the bid in consonance with blacklisting rules
Section 30 of this IRR. For this reason, relation have been
to the aforementioned persons within the third recognized by
civil degree of consanguinity or affinity shall the GPPB?
automatically disqualify the bidder from (2) Each of the
participating in the procurement of contracts documents
of the procuring entity. On the part of the submitted in
bidder, this provision shall apply to the satisfaction of
following persons: the bidding
a) If the bidder is an individual or a sole requirements is
proprietorship, to the bidder himself; an authentic
b) If the bidder is a partnership, to all its copy of the
officers and members; original,
c) If the bidder is a corporation, to all its complete, and
officers, directors, and controlling all statements
stockholders; and and information
d) If the bidder is a joint venture, the provided therein
provisions of items (a), (b), or (c) of this are true and
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Section shall correspondingly apply to each correct?
of the members of the said joint venture, (3) It is
as may be appropriate authorizing the
Head of the
Procuring Entity
or his duly
authorized
representative/s
to verify all the
documents
submitted?
(4) The signatory
is the duly
authorized
representative
of the
prospective
bidder, and
granted full
power and
authority to do,
execute and
perform any and
all acts
necessary
and/or to
represent the
prospective
bidder in the
bidding, with
the duly
notarized
Secretary’s
Certificate
attesting to such
fact, if the
prospective
bidder is a
corporation,
partnership,
cooperative, or
joint venture?
(5) It complies
with the
disclosure
provision under
Section 47 of
the Act in
relation to other
provisions of
R.A. 3019?
(6) It complies
with the
responsibilities
of a prospective
or eligible bidder
provided in the
PBDs?
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(7) It complies
with existing
labor laws and
standards, in
the case of
procurement of
services?
6. To verify if the BAC opened the 10. From the Checklists Did the BAC open
second envelopes of the bidders of the first envelope only the second
whose first envelopes were rated and Minutes of the Bid envelopes of the
Opening identify the bidders whose first
passed on the same day and
bidders who were rated envelopes were rated
determined compliance with the passed. passed?
requirements using a
nondiscretionary “pass/fail”
criterion, as stated in the
Instructions to Bidders 11. From the Minutes of Did the BAC open the
the Bid Opening, check second envelopes on
Implementing Rules and Regulations (IRR) of if the second envelopes the same day when
RA 9184, as amended on September 2, 2009: of the bidders who were the first envelopes
 30.2 Immediately after determining rated passed was were opened?
compliance with the requirements in the opened by the BAC on
first envelope, the BAC shall forthwith open the same day when the
the second bid envelope of each remaining first envelopes were
eligible bidder whose first bid envelope was opened.
rated “passed.” The second envelope of
each complying bidder shall be opened 12. Compare the Was the BAC’s
within the same day… In case one or more Checklist with the list of Checklist in
of the requirements in the second envelope documents in the accordance with the
of a particular bid is missing, incomplete or second envelope per list of documents in
patently insufficient, and/or if the Bidding Documents. the second envelope
submitted total bid price exceeds the ABC, per Bidding
the BAC shall rate the bid concerned as Documents?
“failed”. Only bids that are determined to
contain all the bid requirements for both
components shall be rated “passed” and 13. Validate the entries Did the BAC
shall immediately be considered for (“pass/fail”) in the determine each
evaluation and comparison. Checklist with the bidder’s compliance
 25.3. The second envelope shall contain documents submitted with the financial
the financial information/documents as by the bidders in the information/document
specified in the PBDs. second envelope (for s required to be
presence or absence). submitted in the
Philippine Bidding Documents (PBDs) for second envelope:
the Procurement of Infrastructure
Projects, 3rd Edition, (October 2009) (a) Bidding Forms
approved by the GPPB per GPPB Resolution
No. 06-2009 dated September 30, 2009: a.1 Bid Form?
 Documents Comprising the Bid: Financial
Component a.2 Form of
13.1. Unless otherwise stated in the Bid Contract
Data Sheets, the financial component of Agreement?
the bid shall contain the following:
a. Financial Bid Form in accordance with a.3. Omnibus
the form prescribed in Section IX, Sworn
Bidding Forms; and Statement?
b. Any other document required in the
Bid Data Sheets. 14. From the Minutes Did the BAC
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13.2. Unless indicated in the BDS, all bids of Bid Opening, Abstract automatically
that exceed the ABC shall not be accepted. of Bids as Read, and disqualify bids higher
relevant BAC than the ABC?
 31.1 – The ABC shall be the upper limit or Resolutions check if
ceiling for acceptable bid prices. If a bid bids higher than the
price, as evaluated and calculated in ABC were automatically
accordance with this IRR, is higher than the disqualified.
ABC, the bidder submitting the same shall
be automatically disqualified. There shall be
no lower limit or floor on the amount of the
award.
IN CASE A BIDDER DETERMINED AS “FAILED” FILES A REQUEST FOR RECONSIDERATION

1. To verify if the Bidder determined 1. Count the number of Did the BAC ensure
as “failed” submitted his request for days FROM the date of that the Bidder
reconsideration within 3 days upon bid opening or date of determined as “failed”
receipt of the notice by submitted their
written notice or, if present at the
the concerned Bidder requests for
time of bid opening, upon verbal TO the date of receipt reconsideration within
notification by the BAC Secretariat 3 days upon written
of the letter-request for notice or, if present
Philippine Bidding Documents (PBDs) for reconsideration (duly at the time of bid
the Procurement of Infrastructure stamped “received” by opening, upon verbal
Projects, 3rd Edition, (October 2009) the BAC Secretariat) notification?
approved by the GPPB per GPPB Resolution and compare with the
No. 06-2009 dated September 30, 2009: 3-day maximum.
 24.7. A Bidder determined as “failed” has
three (3) calendar days upon written notice 2. From the Minutes of Did the BAC evaluate
or, if present at the time of bid opening, upon the deliberation of the if the failure was due
verbal notification within which to file a request for to the fault of the
request for reconsideration with the BAC: reconsideration, look for bidder?
Provided however, that the request for information and finding
reconsideration shall not be granted if it is if the failure was due to
established that the finding of failure is due to the fault of the Bidder, If in the affirmative,
the fault of the Bidder concerned: Provided, and the if the BAC did the BAC decide
further, that the BAC shall decide on the decided not to grant the not to grant the
request for reconsideration within seven (7) request. request?
calendar days from receipt thereof. If a failed
bidder signifies his intent to file a request for 3. From the Minutes of Did the BAC decide
reconsideration, the BAC shall keep the bid the deliberation of the on the request for
envelopes of the said failed Bidder unopened request for reconsideration within
and/or duly sealed until such time that the reconsideration, look for 7 days from receipt
request for reconsideration or protest has information on the thereof?
been resolved. period within which the
BAC decided on the
request for
reconsideration – from
the date of receipt of
the request for
reconsideration up to
the date of decision
(BAC Resolution) on the
decision reached; and
compare with the 7-day
maximum period.
INVOLVEMENT OF BAC OBSERVERS IN THE BID OPENING AND PRELIMINARY EXAMINATION OF
BIDS, INCLUDING EVALUATION AND DECISION ON REQUESTS FOR RECONSIDERATION
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1. To verify if the BAC invited 1. From the Minutes of Did the BAC choose
Observers: the BAC meeting on the the Observers
a. representing the COA, the duly selection of the considering:
recognized private group in a sector Observer from the
or discipline relevant to the “pool”, check for 1. one representing
procurement at hand, and a non- information on the the COA?
government organization (NGO) from BAC’s evaluation in
the procuring entity’s Pool of regard to: 2. One representing
Observers;  the selection of the the duly
organization from recognized private
b. that have:
which the Observer group in a sector
b.1. knowledge, experience or or discipline
will be invited;
 knowledge, relevant to the
subject matter of the contract to be
experience or procurement at
bid;
expertise in hand?
b.2. no actual or potential conflict of procurement or in
interest in the contract to be bid; and the subject matter of 3. One representing
b.3. conformed with other relevant the contract to be a non-government
criteria determined by the BAC; bid; organization?
c. at least 3 calendar days prior to  no actual or
the start of the activity potential conflict of 4. With knowledge,
interest in the experience or
Implementing Rules and Regulations contract to be bid; expertise in
and procurement or in
 conformed with the subject matter
September 2, 2009: other relevant of the contract to
 Section 13. Observers criteria determined be bid?
13.1. To enhance the transparency of the by the BAC.
process, the BAC shall, in all stages of the 5. With no actual or
procurement process, invite, in addition to the potential conflict
representative of the COA, at least two (2) of interest in the
observers, who shall not have the right to contract to be bid?
vote, to sit in its proceedings where:
a) At least one (1) shall come from a duly 6. Conformed with
recognized private group in a sector or other relevant
discipline relevant to the procurement at hand, criteria determined
for example: by the BAC?
i) For infrastructure projects, national
associations of constructors duly 2. From certified copies Did the BAC invite the
recognized by the Construction Industry of the invitations to the Observers at least 3
Authority of the Philippines (CIAP), such Observers with evidence days before the date
as, but not limited to the following: of receipt, compare the of the bid opening?
(1) Philippine Constructors Association, date of receipt with the
Inc.; 3-day minimum
(2) National Constructors Association of requirement.
the Philippines, Inc.; and
(3) Philippine Institute of Civil Engineers
(PICE).
ii) …
iii) … and
b) The other observer shall come from a non-
government organization (NGO).

organization duly registered with the Securities
and Exchange Commission (SEC) or the
Cooperative Development Authority (CDA),
and should meet the following criteria:
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a) Knowledge, experience or expertise in
procurement or in the subject matter of the
contract to be bid;
b) Absence of actual or potential conflict of
interest in the contract to be bid; and
c) Any other relevant criteria that may be
determined by the BAC.
13.3. Observers shall be invited at least

three (3) calendar days before the date
of the procurement stage/activity. The
absence of observers will not nullify the
BAC proceedings, provided that they
have been duly invited in writing.
2. To verify if the Procuring Entity 3. Based on the BAC’s Did the Procuring
considered the Minutes on the bid Entity consider the
comments/observations of the opening and preliminary comments/
evaluation of bids and observations of the
Observers
the report of the Observers?
Observers check
Implementing Rules and Regulations (IRR) of whether a deliberation
RA 9184, as amended on September 2, 2009: was made on the
 13.4. The observers shall have the comments
following responsibilities: /observations of the
a) To prepare the report either jointly or observers.
separately indicating their observations
made on the procurement activities
conducted by the BAC for submission to the
Head of the Procuring Entity, copy
furnished the BAC Chairman. The report
shall assess the extent of the BAC’s
compliance with the provisions of this IRR
and areas of improvement in the BAC’s
proceedings;
b) To submit their report to the procuring
entity and furnish a copy to the GPPB and
Office of the Ombudsman/Resident
Ombudsman. If no report is submitted
by the observer, then it is understood
that the bidding activity conducted by
the BAC followed the correct
procedure; and
c) To immediately inhibit and notify in writing
the procuring entity concerned of any
actual or potential interest in the contract
to be bid.
 13.5. Observers shall be allowed access to

the following documents upon their
request, subject to signing of a
confidentiality agreement: (a) minutes of
BAC meetings; (b) abstract of Bids;
(c) post-qualification summary report;
(d) APP and related PPMP; and (e)
opened proposals.
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1. To verify the effects of instances Analyze the instances of
of non-compliance on the: non-compliance to Appropriate Audit Working Papers
establish the effects and
a. validity of the procurement develop appropriate
activities and outputs including audit recommendations.
the validity of the resulting
contract; Also determine if
appropriate actions
b. validity of any payment to be were taken by the
made on the basis of the contract; auditee in regard to
c. etc. instances of non-
compliance.
and develop appropriate audit
recommendations
Implementing Rules and Regulations NOTE:

Also refer to the
OFFENSES AND
September 2, 2009:
PENALTIES portion
 Observers shall be invited at least three (3) of this Audit Guide.
calendar days before the date of the
procurement stage/activity. The absence of
proceedings, provided that they have
been duly invited in writing.
2. To verify the causes of instances Analyze the instances of

of non-compliance and develop non-compliances to Appropriate Audit Working Papers
appropriate audit recommendations establish the cause(s)
and develop appropriate
audit recommendations.
Also determine if
appropriate actions
were taken by the
auditee in regard to
instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the results of the Prepare the appropriate

audit with the auditee’s audit/ validation Audit Observation Memorandum (AOM), if
Management document reflecting the applicable
results of the
 COA Circular No. 2009-006 dated September audit/validation and
15, 2009 re- Prescribing the Use of the transmit to
Rules and Regulations on Settlement of Management
Accounts
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IX. BID EVALUATION
The purpose of bid evaluation is to determine the Lowest Calculated Bid. This is done by
establishing the correct calculated prices of the bids and ranking in ascending order the total bid
prices as so calculated. The bid with the lowest price is the LCB.
1. To verify if the BAC adopted the required conditions and procedures in the bid
evaluation;
2. To verify if the BAC followed the required timeline in the conduct of bid evaluation.
Documents needed for the evaluation:

1. Minutes of Bid Opening;
2. Checklists for technical and financial envelopes;
3. Abstract of Bids as Read;
4. BAC Resolution(s) on the preliminary examination of bids;
5. TWG report on the bid evaluation for determination of the bidder with the LCB, as
reviewed by the BAC;
6. Abstract of Bids as Calculated;
7. Minutes of the BAC meeting on bid evaluation;
8. Resolution of the BAC declaring the LCB;
10. Invitation letters to the Observers with evidence of receipt;

the Answer
1. To verify if the BAC 1. From the Minutes of Bid Did the BAC conduct
conducted detailed Opening, Checklists for detailed evaluation only
evaluation of all bidders technical and financial of bidders who passed
envelopes, Abstract of Bids in the preliminary
whose first envelope
as Read, and BAC examination of bids?
(technical component) and Resolutions identify the
second envelope (financial bidders who were rated
component) were rated “passed” in all aspects and
passed compare with the names of
the bidders included in the
Implementing Rules and Regulations bid evaluation (from the
(IRR) of RA 9184, as amended on TWG report, as reviewed by
September 2, 2009: the BAC, Minutes of the BAC
 30.2. ….Only bids that are meeting on bid evaluation,
determined to contain all the bid and Resolution of the BAC
requirements for both components declaring the LCB).
shall be rated “passed” and shall
immediately be considered for
evaluation and comparison.
2. To verify if the BAC 2. From the TWG report, as Did the BAC evaluate
considered completeness reviewed by the BAC, the completeness of the
Minutes of the BAC meeting financial component of
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the Answer
and arithmetical on bid evaluation, and the bids?
corrections of the financial Resolution of the BAC
component of the bids in declaring the bidder with the
Lowest Calculated Bid (LCB), Did the BAC consider
the detailed evaluation
look for the information on non-responsive and,
Implementing Rules and Regulations the evaluation of thus, automatically
(IRR) of RA 9184, as amended on completeness of financial disqualified bids not
September 2, 2009: component of the bids. addressing or providing
all of the required items
 32.2.1 – The BAC shall
in the Bidding
immediately conduct a detailed
Documents?
evaluation of all bids using non-
discretionary criteria in considering
the following:
Did the BAC consider
a. Completeness of non-responsive and,
the bid – Unless the Instruction to thus, automatically
Bidders specifically allow partial disqualified bids that did
bids, bids not addressing or not indicate the price
providing all of the required items for a required item?
in the Bidding Documents
including, where applicable, bill of
quantities, shall be considered
3. From the TWG report, as Did the BAC evaluate
non-responsive and, thus,
reviewed by the BAC, the arithmetical
automatically disqualified. In this
Minutes of the BAC meeting accuracy of financial
regard, where a required item is
on bid evaluation, and components of bids:
provided, but no price is indicated,
Resolution of the BAC
the same shall be considered as
declaring the bidder with the a. computational
non-responsive, but specifying a
Lowest Calculated Bid (LCB), errors?
“0” (zero) for the said item would
look for the information on
mean that it is being offered for
the evaluation of b. omissions?
free to the Government; and
arithmetical accuracy of
b. Arithmetical financial component of the c. other bid
corrections – Consider bids. modification, if
computational errors and allowed in the
omissions to enable proper Bidding Documents?
comparison of all eligible bids.
It may also consider bid
modifications if expressly
allowed in the Bidding
Documents [AS AMENDED BY
GPPB RESOLUTION NO. 06-
2009 DATED SEPT 30, 2009].
Any adjustment shall be
calculated in monetary terms
to determine the calculated
prices.
 32.2.2. The BAC shall evaluate
all bids on an equal footing to ensure
fair and competitive bid comparison.
For this purpose, all bidders shall be
required to include the cost of all
taxes, such as, but not limited to,
value added tax (VAT), income tax,
local taxes, and other fiscal levies and
duties which shall be itemized in the
bid form and reflected in the detailed
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estimates. Such bids, including said
taxes, shall be the basis for bid
evaluation and comparison.
 32.2.3. In case of discrepancies
between: (a) bid prices in figures and
in words, the latter shall prevail; (b)
total price per item and unit price for
the item as extended or multiplied by
the quantity of that item, the latter
shall prevail; (c) stated total price
and the actual sum of prices of
component items, the latter shall
prevail; (d) unit cost in the detailed
estimate and unit cost in the bill of
quantities, the latter shall prevail.
 32.2.4. Bids shall then be ranked

in the ascending order of their total
calculated bid prices, as evaluated
and corrected for computational
errors, and other bid modifications,
to identify the Lowest Calculated
Bid. Total calculated bid prices, as
evaluated and corrected for
computational errors, and other bid
modifications, which exceed the ABC
shall be disqualified.
 Requirements of the Bidding

Documents for the specific
procurement.
3. To verify if the BAC 4. Analyze the TWG report Did the BAC disqualify
disqualified bidders whose with supporting documents bidders whose bids as
bids as calculated were and duly reviewed by the calculated were higher
BAC, Minutes of the BAC than the ABC?
higher than the ABC
meeting on bid evaluation,
Implementing Rules and Regulations Abstract of Bids as
(IRR) of RA 9184, as amended on Calculated, and Resolution
September 2, 2009: of the BAC declaring the
bidder with the Lowest
 31.1 – The ABC shall be the Calculated Bid (LCB), and
upper limit or ceiling for check if the BAC disqualified
acceptable bid prices. If a bid bidders whose bids are
price, as evaluated and calculated higher than the ABC.
in accordance with this IRR, is
higher than the ABC, the bidder
submitting the same shall be
automatically disqualified. There
shall be no lower limit or floor on
the amount of the award.
4. To verify if the BAC 5. Check for completeness Did the BAC prepare the
prepared the Abstract of Bids of the information contained Abstract of Bids as
as Calculated with the in the Abstract of Bids as calculated with the
Calculated and if this was following information:
required information
signed by the members of
Implementing Rules and Regulations the BAC. a. Name of the
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the Answer
(IRR) of RA 9184, as amended on contract?
September 2, 2009:
b. Location?
 Section 32.3 – After all bids have c. Time of bid opening?

been received, opened, examined,
evaluated, and ranked, the BAC shall d. Date of bid opening?
prepare the corresponding Abstract of
Bids. ….The Abstract of Bids shall e. Place of bid opening?
contain the following:
f. Names of bidders and
a. Name of the contract and its their corresponding
location, if applicable; calculated bid prices
b. Time, date and place of bid
opening; and g. Calculated bid prices
c. Names of bidders and their arranged from
corresponding calculated bid lowest to highest?
prices arranged from lowest to
highest, the amount of bid h. Amount of bid
security and the name of the security?
issuing entity.
i. Name of the issuing
entity?
j. Names and signatures

of the Chairman and
members of the
BAC?
5. To verify if the BAC 6. Analyze the TWG report, Did the BAC declare
declared rank 1 in the as reviewed by the BAC, rank 1 in the Abstract of
Abstract of Bids as Calculated Minutes of the BAC meeting Bids as Calculated as
on bid evaluation, Abstract the bidder with the
as the bidder with the Lowest
of Bids as Calculated, and Lowest Calculated Bid
Calculated Bid (LCB) Resolution of the BAC (LCB)?
Implementing Rules and Regulations declaring the bidder with the
(IRR) of RA 9184, as amended on Lowest Calculated Bid (LCB),
September 2, 2009: and check if rank 1 in the
 32.2.4. Bids shall then be ranked Abstract was declared as the
in the ascending order of their bidder with the Lowest
total calculated bid prices, as Calculated Bid (LCB).
evaluated and corrected for
computational errors, and other
bid modifications, to identify the
Lowest Calculated Bid. Total
calculated bid prices, as evaluated
and corrected for computational
errors, and other bid
modifications, which exceed the
ABC shall be disqualified.
6. To verify if the BAC notified 7. Obtain a copy of the Did the BAC notify the
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the bidder with the LCB notice issued by the BAC to bidder with the LCB?
Implementing Rules and Regulations the bidder with the LCB and
(IRR) of RA 9184, as amended on check for receipt by the
September 2, 2009: bidder.
 34.2. Within three (3) calendar
days from receipt by the bidder of
the notice from the BAC that the
bidder has the Lowest Calculated
Bid or Highest Rated Bid, the
bidder shall submit the following
documentary requirements to the
BAC:
7. To verify if the BAC 8. From the Invitation to Bid Did the BAC complete
completed the evaluation of and the Minutes of Bid the evaluation process
bids within seven (7) Evaluation determine the within seven (7)
number of days from the calendar days from the
calendar days from the
deadline for receipt of deadline for receipt of
deadline for receipt of proposals and the proposal?
proposals (5 calendar days completion of the bid (5 days for projects
for infrastructure projects evaluation. costing P50 million and
costing P50 million and below)?
below)

September 2, 2009:
 32.4 The entire evaluation process
shall be completed within seven (7)
calendar days from the deadline for
receipt of proposals. However, for
infrastructure projects costing Fifty
Million Pesos (P50,000,000) and
below, the entire evaluation process
shall be completed in not more than
five (5) calendar days from the
deadline for receipt of proposal.
8. To verify if the BAC invited 9. From the Minutes of the Did the BAC choose the
Observers: BAC meeting on the Observers considering:
a. representing the COA, the selection of the Observer
duly recognized private group from the “pool”, check for a. one representing the
in a sector or discipline information on the BAC’s COA?
relevant to the procurement evaluation in regard to:
at hand, and a non-  the selection of the b. One representing the
government organization organization from which duly recognized
(NGO) from the procuring the Observer will be private group in a
entity’s Pool of Observers; invited; sector or discipline
 knowledge, experience or relevant to the
b. that have:
expertise in procurement procurement at
b.1. knowledge, experience or hand?
expertise in procurement or in or in the subject matter
the subject matter of the of the contract to be bid;
 no actual or potential c. One representing a
contract to be bid;
conflict of interest in the non-government
b.2. no actual or potential organization?
conflict of interest in the contract to be bid; and
contract to be bid; and  conformed with other
d. With knowledge,
b.3. conformed with other relevant criteria
experience or
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relevant criteria determined by determined by the BAC. expertise in
the BAC; procurement or in
c. at least 3 calendar days the subject matter of
prior to the start of the the contract to be
bid?
activity
e. With no actual or
Implementing Rules and Regulations potential conflict of
(IRR) of RA 9184, as amended on interest in the
September 2, 2009: contract to be bid?
 Section 13. Observers f. Conformed with

13.1. To enhance the transparency of other relevant
the process, the BAC shall, in all criteria determined
stages of the procurement process, by the BAC?
invite, in addition to the
representative of the COA, at least
two (2) observers, who shall not have
the right to vote, to sit in its
proceedings where: 10. From certified copies of Did the BAC invite the
a) At least one (1) shall come from a the invitations to the observers at least 3
duly recognized private group in a Observers with evidence of days from the date of
sector or discipline relevant to the receipt, compare the date of the bid evaluation?
procurement at hand, for example: receipt with the 3-day
i) For infrastructure projects, minimum requirement
national associations of
constructors duly recognized by
the Construction Industry
Authority of the Philippines
(CIAP), such as, but not limited
to the following:
(1) Philippine Constructors
Association, Inc.;
(2) National Constructors
Association of the
Philippines, Inc.; and
(3) Philippine Institute of Civil
Engineers (PICE).
ii) …
iii) … and
b) The other observer shall come
from a non-government organization
(NGO). 13.2. The observers shall
come from an organization duly
registered with the Securities and
Exchange Commission (SEC) or the
Cooperative Development Authority
(CDA), and should meet the following
criteria:
a) Knowledge, experience or
be bid;
b) Absence of actual or potential
conflict of interest in the contract
to be bid; and
c) Any other relevant criteria that
may be determined by the BAC.
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o 13.3. Observers shall be invited at

procurement stage/activity. The
absence of observers will not
provided that they have been duly
invited in writing.
9. To verify if the Procuring 10. Based on the BAC’s Did the Procuring Entity
Entity considered the Minutes on the bid consider the comments/
comments/observations of evaluation and the report of observations of the
the Observers check Observers?
the Observers
whether a deliberation was
made on the comments
Implementing Rules and Regulations /observations of the
(IRR) of RA 9184, as amended on observers.
September 2, 2009:
a) To prepare the report either
jointly or separately indicating
their observations made on the
procurement activities conducted
by the BAC for submission to the
furnished the BAC Chairman. The
report shall assess the extent of
the BAC’s compliance with the
provisions of this IRR and areas of
improvement in the BAC’s
proceedings;
b) To submit their report to the
procuring entity and furnish a
copy to the GPPB and Office of the
Ombudsman/Resident
Ombudsman. If no report is
submitted by the observer,
then it is understood that the
bidding activity conducted by
procedure; and
c) To immediately inhibit and notify
in writing the procuring entity
concerned of any actual or
potential interest in the contract to
be bid.

upon their request, subject to
signing of a confidentiality
agreement: (a) minutes of BAC
meetings; (b) abstract of Bids;
(c) post-qualification
summary report; (d) APP and
related PPMP; and (e) opened
proposals.
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appropriate audit
the contract;
c. etc.
OFFENSES AND
this Audit Guide.
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
auditee’s Management reflecting the results of the
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Accounts
X. POST-QUALIFICATION
FOR THE FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
The Lowest Calculated Bid (LCB) shall undergo post-qualification in order to determine
whether the bidder concerned complies with and is responsive to all the requirements and
conditions as specified in the Bidding Documents.
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1. To verify if the BAC adopted the required conditions and procedures in the conduct of
post-qualification;
2. To verify if the BAC followed the required timeline in the conduct of post-qualification.

1. BAC Resolution declaring the bidder with the LCB;
2. Copy of the BAC Secretariat’s Receiving logbook indicating information on receipt of the:
a) Tax clearance, b) Latest income and business tax returns, c) Certificate of PhilGEPS
Registration; and d) Other appropriate licenses and permits required by law and stated in
the Bidding Documents, submitted by the bidder with the LCB;
3. Copy each of the documents submitted by the bidder with the LCB;
4. Constructors Performance Evaluation System (CPES) reports obtained by the BAC from the
Construction Industry Authority of the Philippines (CIAP);
5. Documents evidencing the BAC’s validation of the veracity of the documents submitted
and the information thereon;
6. TWG report on the post-qualification conducted, including supporting documents (e.g.
inspection reports), as reviewed by the BAC; evidencing:
a. validation of the authenticity of the documents submitted and information
thereon;
b. validation of compliance of the goods offered with the requirements specified in
the Bidding Documents, duly supported with: inspection reports on the goods
offered and test results;
c. validation of the sufficiency of the bid security as to type, amount, form and
wording, validity period;
d. validation of compliance with the financial requirements of the LCB;
e. conduct of analysis and concluding on the post-qualification or disqualification of
the bidder, as the case may be;
7. BAC Resolutions on post-qualification/post-disqualification, declaration of LCRB, and
recommendation to the HOPE;
8. TWG report(s) on the evaluation of the post-disqualified bidder(s)’ request for
reconsideration, as reviewed by the BAC;
9. Minutes of the post-qualification activities;
10. Copy of the document approved by the HOPE extending the period for the post-
qualification process, if applicable;
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1. To verify whether the bidder 1. From the records of the Did the bidder with
whose bid was declared as the BAC, count the number of the LCB:
Lowest Calculated Bid (LCB)/ days from the date when
the bidder with the LCB a. submit within 3
Single Calculated Bid (SCB)
received the notice and the calendar days
submitted the following date it submitted the: a) Tax from receipt of
documents within 3 calendar clearance, b) Latest income the notice as
days from the bidder’s receipt and business tax returns, c) LCB?
of the notice: Certificate of PhilGEPS
a) Tax clearance; Registration; and d) Other b. Tax Clearance?
b) Latest income and business appropriate licenses and
tax returns; permits required by law and c. Latest income
c) Certificate of PhilGEPS stated in the Bidding and business tax
Documents. returns?
Registration; and
d) Other appropriate licenses Compare this with the d. Certificate of
and permits required by law required maximum 3-day PhilGEPS
and stated in the Bidding period. Registration?
Documents
e. Other
Implementing Rules and Regulations appropriate
(IRR) of RA 9184, as amended on licenses and
September 2, 2009: permits required
 34.2. Within three (3) calendar days by law and
from receipt by the bidder of the stated in the
notice from the BAC that the bidder Bidding
has the Lowest Calculated Bid or Documents?
Highest Rated Bid, the bidder shall
submit the following documentary
requirements to the BAC:
a) Tax clearance;
b) Latest income and business tax
returns;
c) Certificate of PhilGEPS
Registration; and
d) Other appropriate licenses and
permits required by law and
stated in the Bidding Documents.
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2. To verify if the BAC: 2. If based on the validation Did the BAC forfeit
2.1. determined the veracity of conducted in 1. above, the the bid security and
the documents submitted submissions were found to disqualify the
be incomplete and/or not on bidder for award
and
time, obtain a copy of the because of failure
2.2. forfeited the bid security BAC Resolution disqualifying to submit the
and disqualified the bidder the bidder and forfeiting its required documents
for award for reason that; bid security. on time?
a. the bidder failed to
submit the required 3. Obtain from the BAC Did the BAC forfeit
documents on time, Secretariat documents the bid security and
and/or evidencing the BAC’s disqualify the
b. there was a finding validation of the veracity of bidder for award
the documents submitted because of a
against the veracity of the
and the information thereon finding against the
documents/ information and check the results of veracity of the
such validation. documents/
information?
Implementing Rules and Regulations If the BAC had a finding
(IRR) of RA 9184, as amended on against the veracity of the
September 2, 2009: documents/ information
 34.2.Within three (3) calendar days thereon, obtain a copy of
from receipt by the bidder of the the BAC Resolution
notice from the BAC that the bidder disqualifying the bidder and
has the Lowest Calculated Bid or forfeiting its bid security.
Highest Rated Bid, the bidder shall
submit the following documentary
requirements to the BAC:
a) Tax clearance;
b) Latest income and business tax
returns;
c) Certificate of PhilGEPS Registration;
and
d) Other appropriate licenses and
permits required by law and stated
in the Bidding Documents.
Failure to submit the above

requirements on time or a finding
against the veracity of such shall be
ground for the forfeiture of the bid
security and disqualify the bidder for
award.
3. To verify if the BAC 4. Match the name of the Did the BAC subject
subjected the bidder with the bidder with the LCB as the bidder with the
Lowest Calculated Bid (LCB) to indicated in the BAC Lowest Calculated
Resolution declaring the LCB Bid (LCB) to post-
post-qualification
with the name of the bidder qualification?
Implementing Rules and Regulations indicated in the TWG’s Post-
(IRR) of RA 9184, as amended on Qualification Report, as
September 2, 2009: reviewed by the BAC and in
the Minutes of the BAC
 34.1 The Lowest Calculated Bid shall meetings.
undergo post-qualification in order to
determine whether the bidder
concerned complies with and is
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responsive to all the requirements
and conditions as specified in the
Bidding Documents.
4. To verify if the BAC verified, 5. From the TWG report with Did the BAC
validated, and ascertained that supporting documents and validate the
the bidder with the LCB is: duly reviewed by the BAC, authenticity of the
and the Minutes of BAC Registration
meetings, look for documents
a. a duly licensed Filipino information evidencing submitted by the
citizen/sole proprietor, or validation of the authenticity bidder?
b. a Partnerships duly of the:
organized under the laws of
a) DTI Registration
the Philippines and of which
Certificate, duly supported
at least seventy five percent with:
(75%) of the interest  the DTI-certified copy
belongs to citizens of the of the Registration
Philippines, or Certificate and
c. a Corporation duly organized  DTI certificate that the
under the laws of the sole proprietor is a
Philippines, and of which at Filipino citizen (based
on the application for
least seventy five percent
registration filed by the
(75%) of the outstanding bidder with the DTI),
capital stock belongs to if the bidder is a sole
citizens of the Philippines, or proprietorship;
d. Cooperatives duly organized
under the laws of the b. SEC registration and of
Philippines, and of which at the 75% Filipino
least seventy five percent ownership, duly
(75%) belongs to citizens of supported with:
 the SEC-certified
the Philippines, or
copy of the
e. Joint Venture - that Filipino Registration
ownership or interest of the Certificate,
joint venture concerned shall if the bidder is a
be at least seventy five partnership;
percent (75%)
c. SEC registration and of
Implementing Rules and Regulations the 60% Filipino
(IRR) of RA 9184, as amended on ownership, duly
September 2, 2009: supported with:
 34.3. The post-qualification shall  SEC-certified copy of
verify, validate, and ascertain all the Registration
statements made and documents Certificate and
submitted by the bidder with the  SEC-certified copy of
Lowest Calculated Bid/Highest Rated the Articles of
Bid, using non-discretionary criteria, Incorporation
as stated in the Bidding Documents. if the bidder is a
These criteria shall consider, but corporation.
shall not be limited to, the following:
a) Legal Requirements. To verify,
validate, and ascertain licenses, d. CDA registration and of
certificates, permits, and the 75% Filipino
agreements submitted by the ownership, duly
supported with:
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bidder, and the fact that it is not  CDA-certified copy of
included in any “blacklist” as the Registration
provided in Section 25.2 of this Certificate and
IRR. For this purpose, the GPPB  CDA certificate that
shall maintain a consolidated file at least sixty percent
of all “blacklisted” suppliers, (60%) belongs to
contractors, and consultants. citizens of the
… Philippines
if the bidder is a
 23.5.2. For the procurement of cooperative
infrastructure projects:
23.5.2.1. The following e. Joint Venture individual
persons/entities shall be allowed to partner’s:
participate in the bidding  DTI, SEC, or CDA
for infrastructure projects: registrations and
a) Duly licensed Filipino citizens/sole  of the 75% Filipino
proprietorships; ownership
b) Partnerships duly organized under duly supported with the
the laws of the Philippines and of DTI-, SEC-, or CDA-
which at least seventy-five percent certified Certificate, as
(75%) of the interest belongs to the case may be and
citizens of the Philippines; DTI-, SEC-, or CDA-
c) Corporations duly organized under certified documents
the laws of the Philippines, and of evidencing ownership.
which at least seventy-five percent 6. From the TWG report, as Did the BAC
(75%) of the outstanding capital reviewed by the BAC, and validate Filipino
stock belongs to citizens of the the Minutes of BAC ownership of the
Philippines; meetings, look for bidder?
d) Cooperatives duly organized under information evidencing
the laws of the Philippines, and of validation of Filipino
which at least seventy percent ownership of the bidder’s
(75%) belongs to citizens of the firm.
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, in accordance with
Letter of Instructions No. 630 (LOI
630), Filipino ownership or interest
of the joint venture concerned shall
be at least seventy-five percent
(75%): Provided, further, That joint
ventures in which Filipino ownership
or interest is less than seventy-five
percent (75%) may be eligible
where the structures to be built
require the application of techniques
and/or technologies which are not
adequately possessed by a
person/entity meeting the seventy-
five percent (75%) Filipino
ownership requirement: Provided,
finally, That in the latter case,
Filipino ownership or interest shall
not be less than twenty-five percent
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(25%). 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.
5. To verify if the BAC verified, 7. From the TWG report, as Did the BAC verify,
validated, and ascertained that reviewed by the BAC, and validate, and
the Mayor’s Permit submitted the Minutes of BAC ascertain that the
meetings, look for Mayor’s Permit
by the bidder with the LCB was
information evidencing submitted by the
issued by the city or validation of authenticity of bidder is authentic?
municipality where the the Mayor’s Permit and
principal place of business of whether it was issued by the
the prospective bidder is city or municipality where Did the BAC verify,
located the principal place of the validate, and
business of the bidder is ascertain that the
Implementing Rules and Regulations located, duly supported Mayor’s Permit
(IRR) of RA 9184, as amended on with: submitted by the
September 2, 2009:  The LGU-certified copy bidder was issued
 34.3. The post-qualification shall of the Mayor’s permit, by the city or
verify, validate, and ascertain all and municipality where
statements made and documents  DTI-, SEC-, or CDA- the principal place
submitted by the bidder with the certified Registration of business of the
Lowest Calculated Bid/Highest Rated Certificate showing the bidder is located?
Bid, using non-discretionary criteria, bidder’s principal place
as stated in the Bidding Documents. of business
These criteria shall consider, but
shall not be limited to, the following:
validate, and ascertain licenses,
certificates, permits, and
agreements submitted by the
bidder, and the fact that it is not
included in any “blacklist” as
provided in Section 25.2 of this
IRR. For this purpose, the GPPB
shall maintain a consolidated file
of all “blacklisted” suppliers,
contractors, and consultants.
…
 23.1. For purposes of determining
the eligibility of bidders using the
criteria stated in Section 23.5 of
this IRR, only the following
documents shall be required by the
BAC, using the forms prescribed in
the Bidding Documents,:
a) Class “A” Documents
Legal Documents
i) ---
ii) Mayor’s permit issued by the
city or municipality where the
principal place of business of
the prospective bidder is
located.
6. To verify if the BAC 8. From the TWG report, as Did the BAC verify,
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validated if the bidder with the reviewed by the BAC, and validate, and
LCB has a valid license and the Minutes of BAC ascertain that the
registration issued by the meetings, check for PCAB license and
Philippine Contractors information showing the registration
BAC’s validation of the: submitted by the
Accreditation Board (PCAB) to
 authenticity of the PCAB bidder is authentic?
engage or act as a contractor
license and registration,
for the type of contract to be bid  for the type of contract
Implementing Rules and Regulations to be bid.
(IRR) of RA 9184, as amended on Did the BAC
September 2, 2009: validate if the
 23.5.2.3. In accordance with R.A. bidder with the LCB
4566, entitled “An Act Creating the has a valid license
Philippine Licensing Board for and registration
Contractors, Prescribing its Powers, issued by the
Duties and Functions, Providing Philippine
Funds Therefor, and for Other Contractors
Purposes”, the persons/entities Accreditation Board
enumerated in Section 23.5.1.1 of (PCAB) to engage
this IRR may participate in public or act as a
bidding if he has been issued a contractor for the
license by the PCAB to engage or act type of contract to
as a contractor. be bid?
 23.1. Technical Documents

iii) …
iv) In the case of procurement of
infrastructure projects, a valid
Philippine Contractors Accreditation
Board (PCAB) license and
registration for the type and cost of
the contract to be bid.
7. To verify if the BAC 9. From the TWG report, as Did the BAC
validated if the bidder with the reviewed by the BAC, and validate if the
LCB is not “blacklisted” the Minutes of BAC bidder with the LCB
meetings, check for was not
information showing the blacklisted?
BAC’s validation if the bidder
with the LCB is not
September 2, 2009:
“blacklisted”.
 34.3. The post-qualification shall
verify, validate, and ascertain all
statements made and documents
submitted by the bidder with the
Lowest Calculated Bid/Highest Rated
Bid, using non-discretionary criteria, as
stated in the Bidding Documents.
These criteria shall consider, but shall
not be limited to, the following:

validate, and ascertain licenses,
certificates, permits, and
agreements submitted by the bidder,
and the fact that it is not included
in any “blacklist” as provided in
Section 25.2 of this IRR. For this
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purpose, the GPPB shall
maintain a consolidated file of
all “blacklisted” suppliers,
contractors, and consultants.
validated the bidder’s reviewed by the BAC, the validate the
compliance with the “no Minutes of BAC meetings/ relationship of the
deliberations and BAC bidder with the:
relationship” provision
Resolution, check for
embodied in Section 47 of the information showing the a. HOPE?
Revised IRR of RA No. 9184, BAC’s validation that:
i.e., that the bidder is not a. the individual bidder in b. members of the
related by consanguinity or an individual or a sole BAC?
affinity up to the 3rd civil proprietorship, is not
degree to the: related to the persons c. members of the
a. HOPE, mentioned in Sec. 47, TWG?
b. members of the BAC, Amended IRR of RA
9184; d. members of the
c. members of the TWG,
b. all the officers and BAC Secretariat?
d. members of the BAC members of the bidder
Secretariat, partnership are not e. head of the
e. head of the Project related to the persons Project
Management Office (PMO), mentioned in Sec. 47, Management
f. head of the end-user unit, Amended IRR of RA Office (PMO)?
g. project consultants 9184;
c. all the officers, directors, f. head of the end-
 Section 47. Disclosure of Relations and controlling user unit?
All bids shall be accompanied by a stockholders of the
sworn affidavit of the bidder that it is bidder corporation are g. project
not related to the not related to the consultants?
Head of the Procuring Entity, members persons mentioned in
of the BAC, the TWG, and the BAC Sec. 47, Amended IRR of
Secretariat, the RA 9184.
head of the PMO or the end-user unit,
and the project consultants, by
consanguinity or affinity up to the third
civil degree. Failure to comply with the
aforementioned provision shall be a
ground for the automatic 11. From the TWG report, as Did the BAC
disqualification of the bid in consonance reviewed by the BAC, the automatically
with Section 30 of this IRR. For this Minutes of BAC disqualify the
reason, relation to the meetings/deliberations and bidder found to be
aforementioned persons within the BAC Resolution, check for related within the
third civil degree of consanguinity information showing the 3rd civil degree of
or affinity shall automatically BAC’s decision/action in case consanguinity or
disqualify the bidder from of violation with the “no affinity with the
participating relationship” provision. persons listed in
in the procurement of contracts of Section 47 of the
the procuring entity. On the part of Revised IRR of RA
the bidder, this 9184?
provision shall apply to the following
persons:
a) If the bidder is an individual or a
sole proprietorship, to the bidder
himself;
b) If the bidder is a partnership, to all
its officers and members;
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c) If the bidder is a corporation, to all
its officers, directors, and controlling
stockholders; and
d) If the bidder is a joint venture, the
provisions of items (a), (b), or (c) of
this Section shall correspondingly
apply to each of the members of the
said joint venture, as may be
appropriate
9. To verify if the BAC validated the 12. From the TWG report Did the BAC
bidder’s stated competence and duly reviewed by the BAC, validate if the
experience and the Minutes of BAC bidder with the LCB
meetings, check for has completed:
Implementing Rules and Regulations information showing the
(IRR) of RA 9184, as amended on BAC’s validation of the a. within a period
September 2, 2009: completion by the bidder of ten (10) years
 34.3. The post-qualification shall within a period of ten (10) from the date of
verify, validate, and ascertain all years from the date of submission and
statements made and documents submission and receipt of receipt of bids?
submitted by the bidder with the bids, of at least one (1)
Lowest Calculated Bid/Highest Rated contract that is similar to the b. of at least one
Bid, using non-discretionary criteria, as contract to be bid, and (1) contract that is
stated in the Bidding Documents. whose value, adjusted to similar to the
These criteria shall consider, but shall current prices using the NSO contract to be bid?
not be limited to, the following: consumer price indices is at
… least fifty percent (50%) of c. and whose
b) Technical Requirements. To the ABC to be bid. value, adjusted to
determine compliance of the goods, current prices using
infrastructure projects, or consulting the NSO consumer
services offered with the price indices is at
requirements specified in the Bidding OR least fifty percent
Documents, including, where From the TWG report, as (50%) of the ABC
applicable: reviewed by the BAC, and to be bid?
the Minutes of BAC
i) Verification and validation of the meetings, check for
bidder’s stated competence and information showing the
experience, and the competence BAC’s validation that for
and experience of the bidder’s key contractors under Small A Did the BAC
personnel to be assigned to the and Small B categories validate if for
project, for the procurement of without similar experience bidder under Small
infrastructure projects and on the contract to be bid, A and Small B
consulting services; the cost of such contract is categories without
not more than fifty percent similar experience
 23.5.2.5. The prospective bidder (50%) of the Allowable on the contract to
must have an experience of having Range of Contract Cost be bid the ABC is
completed, within a period of ten (ARCC) of their registration not more than 50%
(10) years from the date of based on the guidelines as of ARCC?
submission and receipt of bids, at prescribed by the PCAB.
least one (1) contract that is similar
to the contract to be bid, and whose
value, adjusted to current prices
using the NSO consumer price
indices, must be at least fifty percent
(50%) of the ABC to be bid:
Provided, however, That contractors
under Small A and Small B
categories without similar experience
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on the contract to be bid may be
allowed to bid if the cost of such
contract is not more than fifty
percent (50%) of the Allowable
Range of Contract Cost (ARCC) of
their registration based on the
guidelines as prescribed by the
PCAB.
For Foreign-funded Procurement,

the GOP and the foreign
government/ foreign or international
financing institution may agree on
another track record requirement.
Moreover, a contract shall be

considered “similar” to the contract
to be bid if it has the same major
categories of work.
10. To verify if the BAC validated 13. From the TWG report Did the BAC verify,
the stated competence and with supporting documents validate, and
experience of the bidder’s key and duly reviewed by the ascertain that the
personnel to be assigned to the BAC, and the Minutes of BAC documents
project meetings, check for submitted by the
information showing the bidder as evidence
Implementing Rules and BAC’s validation of the of the competence
Regulations (IRR) of RA 9184, as authenticity of the and experience of
amended on September 2, 2009: documents submitted as its key personnel to
 34.3. The post-qualification shall evidence of the competence be assigned to the
verify, validate, and ascertain all and experience of the project license
statements made and documents bidder’s key personnel to be were authentic?
submitted by the bidder with the assigned to the project; and
Lowest Calculated Bid/Highest Rated validation of said Did the BAC
Bid, using non-discretionary criteria, as competence and experience validate the stated
stated in the Bidding Documents. with the requirements of the competence and
These criteria shall consider, but shall Bidding Documents. experience of the
not be limited to, the following: bidder’s key
… personnel to be
b) Technical Requirements. To assigned to the
determine compliance of the goods, project against the
infrastructure projects, or consulting requirements of the
services offered with the Bidding
requirements specified in the Bidding Documents?
Documents, including, where
applicable:
i) Verification and validation of the

bidder’s stated competence and
experience, and the competence
and experience of the bidder’s key
personnel to be assigned to the
project, for the procurement of
infrastructure projects and
consulting services.
11. To verify if the BAC validated 14. From the TWG report, as Did the BAC
the availability, commitment, reviewed by the BAC, and validate the
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capacities and operating the Minutes of BAC availability,
conditions of equipment units to meetings, duly supported commitment,
be owned/leased/under purchase with analysis of schedules of capacities and
by the bidder for use in the equipment utilization, operating
contract under bidding inspection reports and test conditions of
results, check for equipment units to
Implementing Rules and information showing the be owned/leased/
Regulations (IRR) of RA 9184, as BAC’s validation of the under purchase by
amended on September 2, 2009: availability, commitment, the bidder for use
… capacities and operating in the contract
b) Technical Requirements. To conditions of equipment under bidding?
determine compliance of the goods, units to be owned/leased/
infrastructure projects, or consulting under purchase by the
services offered with the bidder for use in the
requirements specified in the Bidding contract under bidding.
Documents, including, where
applicable:
i) …
ii) Verification of availability and
commitment, and/or inspection
and testing for the required
capacities and operating
conditions, of equipment units to
be owned/leased/under purchase
by the bidder for use in the
contract under bidding,
as well as checking the

performance of the bidder in its
ongoing government and private
contracts (if any of these on-going
contracts shows a reported
negative slippage of at least
fifteen percent (15%), or
substandard quality of work as per
contract plans and specifications,
or unsatisfactory performance of
the contractor’s obligations as per
contract terms and conditions, at
the time of inspection, and if the
BAC verifies any of these
deficiencies to be due to the
contractor’s fault or negligence,
the agency shall disqualify the
contractor from the award), for
the procurement of infrastructure
projects;
iii)…
iv)…
12. To verify if the BAC checked 15. From the TWG report Did the BAC
the performance of the bidder in duly reviewed by the BAC, validate the
its on-going government and and the Minutes of BAC bidder’s
private contracts for: meetings, duly supported performance in its
with inspection reports and ongoing
a. reported negative slippage of at test results, photographs, government and
least fifteen percent (15%), or interview documents with private contracts
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owners/project personnel of for:
b. substandard quality of work as previous/current projects of
per contract plans and the bidder, check for a. reported
specifications, or information showing the negative slippage
BAC’s validation of the of at least fifteen
c. unsatisfactory performance of performance of the bidder in percent (15%)? or
the contractor’s obligations as per its ongoing government and
contract terms and conditions, at private contracts for: b. substandard
the time of inspection, quality of work as
a. reported negative per contract plans
and verified that the deficiencies
slippage of at least fifteen and specifications?
were due to the contractor’s fault
percent (15%), or or
or negligence
b. substandard quality of c. unsatisfactory
work as per contract plans performance of the
and specifications, or contractor’s
September 2, 2009:
obligations as per
 34.3. c. unsatisfactory contract?
performance of the
b) Technical Requirements. To contractor’s obligations as and
determine compliance of the goods, per contract
infrastructure projects, or consulting d. verified that the
services offered with the and verified that the deficiencies were
requirements specified in the Bidding deficiencies were due to the due to the
Documents, including, where contractor’s fault or contractor’s fault or
applicable: negligence. negligence?
i) …
16. From the TWG report Did the BAC
ii) … as well as checking the
duly reviewed by the BAC, disqualify the
performance of the bidder in its
the Minutes of BAC bidder found to be
ongoing government and private
meetings/ deliberations and at fault or
contracts (if any of these on-going
BAC Resolution, check for negligent?
contracts shows a reported
information showing the
negative slippage of at least
BAC’s evaluation and
fifteen percent (15%), or
decision to disqualify the
substandard quality of work as per
bidder found to be at fault
contract plans and specifications,
or negligent.
or unsatisfactory performance of
the contractor’s obligations as per
contract terms and conditions, at
the time of inspection, and if the
BAC verifies any of these
deficiencies to be due to the
contractor’s fault or negligence,
the agency shall disqualify the
contractor from the award),
for the procurement of
infrastructure projects;
iii)…
iv)…
validated that the bidder’s reviewed by the BAC, the validate that the
Constructors Performance Minutes of BAC meetings/ bidder’s ratings in
Evaluation Summary and/or deliberations and BAC the CPES and/or
Resolution, with copies of certificates of
certificate of completion and
the CPES) reports obtained completion and
owner’s acceptance of the by the BAC from the owner’s acceptance
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contract was at least Construction Industry were at least
satisfactory Authority of the Philippines “satisfactory”?
(CIAP), check for
Implementing Rules and information showing the
BAC’s validation of the
bidder’s ratings in the CPES
amended on September 2, 2009: and/or certificates of
 23.5.2.4. The Constructors completions and owner’s
Performance Evaluation System [AS acceptance that the ratings
AMENDED BY GPPB RESOLUTION were at least “satisfactory”.
NO. 11-2009 DATED 30 NOVEMBER
2009] (CPES) rating and/or
certificate of completion and owner’s
acceptance of the contract must be
satisfactory.
14. To verify if the BAC 18. From the TWG report Did the BAC verify,
verified, validated, and duly reviewed by the BAC, validate, and
ascertained authenticity of the the Minutes of BAC ascertain the
meetings/ deliberations and authenticity of the
bid security and its sufficiency
BAC Resolution, check for bid security
as to: information showing the submitted by the
a. type, BAC’s validation of the bidder?
b. amount, authenticity of the bid
c. form and wording, and security and its sufficiency
d. validity period. as to type, amount, form
and wording, and validity Did the BAC
Implementing Rules and period. ascertain the
Regulations (IRR) of RA 9184, as sufficiency of the
bid security as to:
 34.3. The post-qualification shall
a. type?
verify, validate, and ascertain all
statements made and documents
b. amount?
submitted by the bidder with the
Lowest Calculated Bid, using non-
c. form and
discretionary criteria, as stated in
wording?
the Bidding Documents. These
criteria shall consider, but shall not
d. validity period?
be limited to, the following:
a. Legal Requirements…
b) Technical Requirements.
i)…
ii)…
iii)…
iv) Ascertainment of the
sufficiency of the bid security as to
type, amount, form and wording,
and validity period.
15. To verify if the BAC verified, 19. From the TWG report Did the BAC verify,
validated, and ascertained if duly reviewed by the BAC validate, and
the Net Financial Contracting with supporting documents ascertain the
from the appropriate authenticity of the
Capacity (NFCC) is at least
authorities (e.g. certified documents
equal to the ABC or the Credit true copy of the financial (financial
Line Certificate (CLC) in favor statements with the Income statements, etc.)
of the prospective bidder if Tax Return, bank that issued submitted by the
awarded the contract is at least the CLC), the Minutes of bidder to support
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10% of the ABC BAC meetings/deliberations its computation of
and BAC Resolution, check NFCC?
Implementing Rules and Regulations for information showing the
(IRR) of RA 9184, as amended on BAC’s: Did the BAC verify,
September 2, 2009: a. validation of the validate, and
 34.3. The post-qualification shall authenticity of the CLC or ascertain that the:
verify, validate, and ascertain all the financial statements
statements made and documents used as basis for a. NFCC is at least
submitted by the bidder with the computing the NFCC, equal to the ABC?
Lowest Calculated Bid, using non- b. validation of the accuracy
discretionary criteria, as stated in of the computation for or
the Bidding Documents. These NFCC,
criteria shall consider, but shall not c. validation of the b. CLC is at least
be limited to, the following: Statement of the 10% of the ABC?
a) Legal Requirements …. prospective bidder of all
b) Technical Requirements … its ongoing and
c) Financial Requirements completed government
To verify, validate and ascertain and private contracts,
the bid price proposal of the including contracts
bidder and, whenever applicable, awarded but not yet
the required CLC in the amount started, and
specified and over the period d. comparison with the
stipulated in the Bidding requirements.
Documents, or the bidder’s NFCC
to ensure that the bidder can
sustain the operating cash flow of
the transaction.
 23.5.1.4. If the prospective bidder

submits a computation of its NFCC,
the NFCC must be at least equal to
the ABC to be bid, calculated as
follows:
NFCC = [(Current assets minus

current liabilities) (K)] minus the
value of all outstanding or
uncompleted portions of the projects
under ongoing contracts, including
awarded contracts yet to be started
coinciding with the contract to be
bid.
Where:
K = 10 for a contract duration of
one year or less, 15 for a contract
duration of more than one year up
to two years, and 20 for a contract
duration of more than two years.
If the prospective bidder submits

a CLC, the CLC must be at least
equal to ten percent (10%) of the
ABC to be bid. If the CLC is issued
by a foreign Universal or
Commercial Bank, it shall be
confirmed or authenticated by a
Universal or Commercial Bank. For
biddings conducted by LGUs, the
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prospective bidder may also
submit CLC from other banks
certified by the BSP as authorized
to issue such financial instrument.
 23.1. …
Technical Documents
iii) 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 as provided in the
Bidding Documents. The statement
shall include all information required in
the PBDs prescribed by the GPPB.
16. To verify if the BAC 20. From the post Did the BAC pass
declared the post-qualified qualification report of the the LCB/bidder with
bidder with LCB as the Lowest TWG with supporting the LCB in all the
documents and duly criteria for post-
Calculated Responsive Bid
reviewed by the BAC, qualification?
(LCRB) at its submitted bid computations and analysis,
price or its calculated bid price, check if the LCB passed all
whichever is lower the criteria for post
qualification.
(IRR) of RA 9184, as amended on 21. Match the name of the Did the BAC declare
September 2, 2009: LCRB as approved by the the bid of the post-
 34.4. If the BAC determines that the HOPE with the name of qualified LCB as the
bidder with the Lowest Calculated Bid bidder as indicated in the Lowest Calculated
passes all the criteria for post- BAC Resolution declaring the Responsive Bid
qualification, it shall declare the said results of the post- (LCRB)?
bid as the Lowest Calculated qualification and
Responsive Bid, and recommend to recommending LCRB, if
the Head of the Procuring Entity the applicable. If Yes, proceed to:
award of contract to the said bidder
AWARD OF
at its submitted bid price or its
CONTRACT.
calculated bid price, whichever is
lower.
If No, proceed to
the Audit Sub-
Objectives in case
of Post-
disqualification of
the bidder with
the LCB.
IN CASE OF POST-DISQUALIFICATION OF THE BIDDER WITH THE LOWEST CALCULATED BID (LCB)
- FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
17. To verify if the BAC, in case 1. From the records of the Did the BAC
of post-disqualification of the BAC Secretariat, check for immediately notify
LCB immediately notified the information on the date of the LCB of the
receipt by the post- post-
LCB in writing of the post-
disqualified bidder of the disqualification?
disqualification with the notice of post-
grounds for it. disqualification and for the
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grounds for such Did the BAC
Implementing Rules and Regulations disqualification indicated indicate in the
(IRR) of RA 9184, as amended on thereon. notice the grounds
September 2, 2009: for post-
 34.5. If, however, the BAC disqualification?
determines that the bidder with the
Lowest Calculated Bid fails the criteria
for post-qualification, it shall
immediately notify the said bidder in
writing of its post-disqualification and
grounds for it.
 34.6. Immediately after the BAC has
notified the first bidder of its post-
disqualification, and notwithstanding
any pending request for
reconsideration thereof, the BAC shall
initiate and complete the same post-
qualification process on the bidder
with the second Lowest Calculated
Bid. If the second bidder passes the
post-qualification, and provided that
the request for reconsideration of the
first bidder has been denied, the
second bidder shall be post-qualified
Calculated Responsive Bid. If the
second bidder passes the post-
qualification, and provided that the
request for reconsideration of the
first bidder has been denied, the
second bidder shall be post-qualified
Calculated Responsive Bid.
18. To verify if the BAC 2. Look for the TWG report Did the BAC
conducted and completed the on the post-qualification of conduct and
post-qualification of the second the second rank bidder as complete the post-
reviewed by the BAC. qualification of the
rank bidder using the same
second rank
post-qualification process bidder?
adopted for the LCB
3. Repeat the audit activities Did the BAC adopt
Implementing Rules and of on post-qualification for the same process
Regulations (IRR) of RA 9184, as the second rank bidder. of verifying,
amended on September 2, 2009: validating and
 34.6. … the BAC shall initiate 4. Analyze the post- ascertaining all
and complete the same post- qualification reports of the statements made
TWG, as reviewed by the and documents
qualification process on the
BAC, for the LCB and the submitted by the
bidder with the second Lowest second rank bidder to check LCB and the second
Calculated Bid. whether the TWG adopted rank bidder?
the same process of
verifying, validating and
ascertaining all statements
made and documents
submitted by the LCB and
the second rank bidder.
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5. From the post Did the second
qualification report of the rank bidder pass
TWG, as reviewed by the the post-
BAC, check if the second qualification?
rank bidder passed the post
qualification.
If Yes, proceed to
NOTE: the Audit Sub-
For each post- objective to verify
disqualification of the if the BAC
next-rank bidder, the BAC declared the post-
is to repeat the post- qualified second-
qualification process until rank bidder as the
the LCRB is declared for LCRB after a
award. request for
reconsideration of
The related audit activities the LCB (first-
are likewise to be rank, second-
repeated. rank, or next-in-
rank, a the case
may be) has been
denied
If No, proceed to
the Audit Sub-
Objectives in case
of Post-
disqualification of
the bidder with
the LCB.
19. To verify if the BAC 27. From the Minutes of the Did the BAC declare
declared the LCB as the LCRB BAC meeting, analyze if the the LCB as the
after its request for BAC declared the LCB as the LCRB after its
LCRB after its request for request for
reconsideration was granted
reconsideration has been reconsideration was
and it was declared post- granted and it was declared granted and it was
qualified post-qualified. declared post-
qualified?
Implementing Rules and Regulations 28. Match the name of the
(IRR) of RA 9184, as amended on LCRB as approved by the
September 2, 2009: HOPE with the name of
 34.6. Immediately after the BAC bidder as indicated in the
has notified the first bidder of its BAC resolution
post-disqualification, and recommending the LCRB.
notwithstanding any pending
request for reconsideration thereof,
the BAC shall initiate and complete
the same post-qualification process
on the bidder with the second
Lowest Calculated Bid. If the second
bidder passes the post-qualification,
and provided that the request for
reconsideration of the first bidder
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has been denied, the second bidder
shall be post-qualified as the bidder
with the Lowest Calculated
Responsive Bid.
20. To verify if the BAC 29. From the Minutes of the Did the BAC declare
declared the post-qualified BAC meeting, analyze if the the post-qualified
second-rank bidder as the BAC declared the post- second-rank bidder
qualified second-rank bidder as the LCRB after a
LCRB after a request for
as the LCRB after a request request for
reconsideration of the LCB for reconsideration of the reconsideration of
(first-rank) has been denied LCB (first-rank) has been the LCB (first-rank)
denied. has been denied?
September 2, 2009: 30. Match the name of the
 34.6. Immediately after the BAC LCRB as approved by the
has notified the first bidder of its HOPE with the name of
post-disqualification, and bidder as indicated in the
notwithstanding any pending BAC resolution
request for reconsideration thereof, recommending the LCRB.
the BAC shall initiate and complete
the same post-qualification process
on the bidder with the second
Lowest Calculated Bid. If the second
bidder passes the post-qualification,
and provided that the request for
reconsideration of the first bidder
has been denied, the second bidder
shall be post-qualified as the bidder
Responsive Bid.
21. To verify if the BAC 31. Compute the number of Did the BAC
completed the post- days from the BAC complete the post-
qualification process in not Resolution declaring the LCB qualification
and the BAC Resolution process in not more
more than seven (7) calendar
declaring the LCRB, and than seven (7)
days from the determination of compare this with the 7- calendar days from
the LCB or if extended, such calenday-day requirement. the determination
extension was approved by the of the LCB?
HOPE and not exceeding 30
calendar days
32. If the BAC completed If the BAC
Implementing Rules and Regulations the post-qualification in completed the
(IRR) of RA 9184, as amended on more than seven (7) post-qualification in
September 2, 2009: calendar days, secure a copy more than seven
 34.8. The post-qualification process of the document approved (7) calendar days,
shall be completed in not more than by the HOPE extending the was the extension
seven (7) calendar days from the period for the post- approved by the
determination of the Lowest qualification process. HOPE?
Calculated Bid. In exceptional cases,
the post-qualification period may be If the BAC
extended by the Head of the completed the
Procuring Entity, but in no case shall post-qualification in
the aggregate period exceed thirty more than seven
(30) calendar days. (7) calendar days,
was the extension
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within the 30-
calendar day
maximum?
22. To verify if the BAC invited 33. From the Minutes of the Did the BAC choose
Observers: BAC meeting on the the Observers
a. representing the COA, the selection of the Observer considering:
duly recognized private group in from the “pool”, check for
a sector or discipline relevant to information on the BAC’s a. one
the procurement at hand, and a evaluation in regard to: representing the
non-government organization  the selection of the COA?
(NGO) from the procuring organization from which
entity’s Pool of Observers; the Observer will be b. One
invited; representing the
b. that have:
 knowledge, experience or duly recognized
b.1. knowledge, experience or private group in
expertise in procurement
expertise in procurement or in
or in the subject matter a sector or
the subject matter of the
of the contract to be bid; discipline
contract to be bid;
 no actual or potential relevant to the
b.2. no actual or potential conflict of interest in the procurement at
conflict of interest in the contract to be bid; and hand?
contract to be bid; and  conformed with other
b.3. conformed with other relevant criteria c. One
relevant criteria determined by determined by the BAC. representing a
the BAC; non-government
c. at least 3 calendar days prior organization?
to the Post-qualification
d. With knowledge,
Implementing Rules and Regulations experience or
(IRR) of RA 9184, as amended on expertise in
September 2, 2009: procurement or
in the subject
 Section 13. Observers matter of the
13.1. To enhance the transparency of contract to be
the process, the BAC shall, in all stages bid?
of the procurement process, invite, in
addition to the representative of the e. With no actual
COA, at least two (2) observers, who or potential
shall not have the right to vote, to sit in conflict of
its proceedings where: interest in the
a) At least one (1) shall come from a contract to be
duly recognized private group in a bid?
sector or discipline relevant to the
procurement at hand, for example: f. Conformed with
i) For infrastructure projects, other relevant
national associations of criteria
constructors duly recognized by determined by
the Construction Industry the BAC?
Authority of the Philippines (CIAP),
such as, but not limited to the
following: 34. From certified copies of Did the BAC invite
(1) Philippine Constructors the invitations to the the observers at
Association, Inc.; Observers with evidence of least 3 days from
(2) National Constructors receipt, compare the date of the date of the
Association of the Philippines, receipt with the 3-day post-qualification?
Inc.; and minimum requirement.
Engineers (PICE).
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ii) …
iii) … and
b) The other observer shall come from
a non-government organization
(NGO).

organization duly registered with the
Securities
and Exchange Commission (SEC) or the
Cooperative Development Authority
(CDA), and should meet the following
criteria:
a) Knowledge, experience or expertise
in procurement or in the subject
matter of the contract to be bid;
conflict of interest in the contract to
be bid; and
c) Any other relevant criteria that may
be determined by the BAC.
13.3. Observers shall be invited at

before the date of the procurement
proceedings, provided that they
have been duly invited in writing.
23. To verify if the Procuring 35. Based on the BAC’s Did the Procuring
Entity considered the Minutes on the Post Entity consider the
comments/observations of the Qualification and the report comments/
of the Observers check observations of the
Observers
whether a deliberation was Observers?
made on the comments
Implementing Rules and Regulations /observations of the
(IRR) of RA 9184, as amended on observers.
September 2, 2009:

a) To prepare the report either jointly
or separately indicating their
observations made on the
procurement activities conducted by
the BAC for submission to the Head
of the Procuring Entity, copy
report shall assess the extent of the
BAC’s compliance with the provisions
of this IRR and areas of
proceedings;
procuring entity and furnish a copy
to the GPPB and Office of the
Ombudsman/Resident Ombudsman.
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If no report is submitted by the
observer, then it is understood
that the bidding activity
conducted by the BAC followed
the correct procedure; and
c) To immediately inhibit and notify in
writing the procuring entity
concerned of any actual or potential
interest in the contract to be bid.

(c) post-qualification summary
report; (d) APP and related
PPMP; and (e) opened
proposals.

instances of non-compliance on non-compliance to establish Appropriate Audit Working Papers
the: the effects and develop
appropriate audit
b. validity of any payment to be regard to instances of non-
made on the basis of the compliance.
contract;
c. etc.
and develop appropriate audit NOTE:
recommendations Also refer to the
OFFENSES AND
this Audit Guide.
proceedings, provided that they
have been duly invited in
writing.

and develop appropriate audit the cause(s) and develop
appropriate audit
recommendations
recommendations.
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Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
3. To communicate the results Prepare the appropriate
of the audit with the auditee’s audit/ validation document Audit Observation Memorandum (AOM), if applicable
Management reflecting the results of the
the Use of the Rules and Regulations
on Settlement of Accounts
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XI. AWARD OF CONTRACT
1. To verify if the conditions/requirements and procedures for the award of contract were
adhered to by the procuring entity;
2. To verify if the award was made within the prescribed period;
3. To verify if the conditions/requirements, procedures and timelines for entering into and
approval of the contract were adhered to by the procuring entity.

1. Minutes of the BAC meetings on post-qualification;
2. BAC Resolution declaring the LCRB/SCRB and recommending award, approved by the HOPE,
with the following supporting documents:
a. Abstract of Bids,
b. Duly approved program of work and Cost Estimates,
c. Document issued by appropriate entity authorizing the procuring entity to incur
obligations for a specified amount,
d. Other pertinent documents required by existing laws, rules and/or the procuring
entity concerned.
3. Notice of Award signed by the HOPE, with date of release to and receipt by the winning
bidder;
4. Copy of the bid security of the winning bidder stamped received by the BAC Secretariat;
5. Copy of the portions of the receiving records of the BAC, with information on the date of
submission of the Joint Venture Agreement (JVA), if the winning bidder is a Joint Venture;
and the date of posting of the performance security;
6. Copy of the performance security posted by the winning bidder;
7. Copy of the complete set of contract documents duly signed and approved by higher
authorities;
8. Copy of the policy and schedule of approving authorities;
9. Evidences of postings at the PhilGEPS and the procuring entity’s websites;
10. Evidences of postings at the conspicuous place at the premises of the procuring entity;
11. Copy of the Minutes of the BAC meeting on the selection of the Observer from the
“pool”;
12. Copy of reports of the BAC Observers;
13. Copy of the document with the HOPE’s disapproval of the award and the justifications
thereto, duly received by the BAC;
14. In case of disapproval of the BAC’s recommendation for award, copy of the document
with the HOPE’s instructions on the steps to be adopted by the BAC.
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1. To verify if the BAC 1. Compare the LCRB Did the BAC
recommended the bidder determined by the BAC in its recommend to the
with the Lowest Calculated deliberations (per Minutes of HOPE the award of
the BAC meeting) with the contract to the bidder
Responsive Bid (LCRB) or
LCRB recommended for with LCRB or the SCRB?
Single Calculated Responsive award in the BAC
Bid (SCRB), if lone, to the Resolution.
HOPE for award
Implementing Rules and Regulations .

September 2, 2009:
 37.1.1. The BAC shall recommend
to the Head of the Procuring Entity
the award of contract to the bidder
Responsive Bid or the Single
Calculated Responsive Bid after the
post qualification process has been
completed.
To facilitate the approval of the

award, the BAC shall submit the
following supporting documents to
the Head of the Procuring Entity:
a) Resolution of the BAC
recommending award;
b) Abstract of Bids;
c) Duly approved program of work
or delivery schedule, and Cost
Estimates;
d) Document issued by
appropriate entity authorizing
the procuring entity to incur
obligations for a specified
amount; and
e) Other pertinent documents
required by existing laws, rules
and/ or the procuring entity
concerned.
 37.1.2. Within a period not

exceeding seven (7) calendar days
from the date of receipt of the
recommendation of the BAC, the
Head of the Procuring Entity shall
approve or disapprove the said
recommendation. … In the case of
GOCCs and GFIs, the period
provided herein shall be fifteen
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(15) calendar days.
 37.1.3. In case of approval, the

immediately issue the Notice of
Award to the bidder with the
Lowest Calculated Responsive Bid.
In the event the Head of the
Procuring Entity shall disapprove
such recommendation, such
disapproval shall be based only on
valid, reasonable, and justifiable
grounds to be expressed in writing,
a copy furnished the BAC.
2. To verify if the BAC 2. From the TWG evaluation Did the BAC
recommended to the HOPE report with supporting recommend to the
the award of the contract to documents and duly HOPE the award of the
reviewed by the BAC and contract to the bidder
the bidder with the LCRB at
BAC Resolution declaring the with the LCRB at the
its submitted price or its LCRB and recommending lower of the submitted
calculated bid price, award, look for information price and its calculated
whichever is lower, subject to on the contract amount bid price?
ITB Clause 30.3. recommended by the BAC
for award.
Philippine Bidding Documents
(PBDs) for the Procurement of
Infrastructure Projects, 3rd
Edition, (October 2009) approved by
the GPPB per GPPB Resolution No.
06-2009 dated September 30, 2009:
 28.4. If the BAC determines that
the Bidder with the Lowest
Calculated Bid passes all the
criteria for post-qualification, it
shall declare the said bid as the
Lowest Calculated Responsive
Bid, and recommend to the Head
of the Procuring Entity the award
of contract to the said Bidder at
its submitted price or its
calculated bid price, whichever is
lower, subject to ITB Clause
30.3.
3. To verify if the BAC 3. From the BAC Chairman’s Did the BAC submit the
submitted the following letter for the HOPE following documents to
documents to the HOPE with submitting the results and the HOPE with the
the documents pertaining to recommendation for
the recommendation for
the recommendation, duly award:
award: received by the Office of the
a. Resolution of the BAC HOPE, look for information a. Resolution of the
recommending award; on the documents BAC recommending
b. Abstract of Bids; submitted. award?
c. Duly approved program of
work and Cost Estimates; b. Abstract of Bids?
d. Document issued by
c. Duly approved
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appropriate entity program of work
authorizing the procuring and Cost
entity to incur obligations Estimates?
for a specified amount;
d. Document issued by
and appropriate entity
e. Other pertinent authorizing the
documents required by procuring entity to
existing laws, rules and/ incur obligations for
or the procuring entity a specified
concerned amount?
Implementing Rules and Regulations e. Other pertinent

(IRR) of RA 9184, as amended on documents required
September 2, 2009: by existing laws,
 37.1.1. The BAC shall recommend rules and/or the
to the Head of the Procuring Entity procuring entity
the award of contract to the bidder concerned?
Responsive Bid or the Single
Calculated Responsive Bid after the
post qualification process has been
completed.
To facilitate the approval of the
award, the BAC shall submit the
following supporting documents to
the Head of the Procuring Entity:
a) Resolution of the BAC
recommending award;
b) Abstract of Bids;
c) Duly approved program of
work or delivery schedule, and
Cost Estimates;
d) Document issued by
appropriate entity authorizing
the procuring entity to incur
obligations for a specified
amount; and
e) Other pertinent documents
required by existing laws, rules
and/ or the procuring entity
concerned.
4. To verify if the HOPE, or 4. Determine the number of Did the HOPE approve
his/her duly authorized days from the date of the BAC
official, approved the receipt by the HOPE of the recommendation for
recommendation for award award within the 4-, 7-
LCRB/SLRB recommended by
to the date of approval and calendar-day period (or
the BAC for award within 7 compare with the 4-day, 7- 15-calendar-day period
calendar days (4 calendar day or 15-day period. for GOCCs/GFIs)?
days for infrastructure
projects costing P50 million
and below) from the date of
receipt of the
recommendation from the
BAC (15 calendar days for
GOCCs/GFIs)
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September 2, 2009:
recommendation. However, for
infrastructure projects with an ABC
of Fifty Million Pesos (P50,000,000)
and below, the Head of the
Procuring Entity shall approve or
disapprove the said
recommendation within four (4)
calendar days. In the case of
(15) calendar days.
5. In case of approval, to 5. Compare the name of the Was the Notice of

verify if the Notice of Award bidder appearing in the Award as recommended
was issued to the winning Notice of Award with the by the BAC and
winning bidder per approved approved by the HOPE
bidder immediately and
BAC Resolution. immediately issued to
within the validity period of the winning bidder?
the bid security 6. Compare the date of
release of the Notice of
Implementing Rules and Regulations Award with the date of
(IRR) of RA 9184, as amended on approval of the BAC
September 2, 2009: Resolution recommending
 37.1.3. In case of approval, the the award.
immediately issue the Notice of
Award to the bidder with the 7. Compare the date of the Was the Notice of
Lowest Calculated Responsive Bid. release of the Notice of Award as recommended
In the event the Head of the Award with the expiry date by the BAC and
Procuring Entity shall disapprove of the bid validity period. approved by the HOPE
such recommendation, such issued to the winning
disapproval shall be based only on bidder within the bid
valid, reasonable, and justifiable validity period of the bid
grounds to be expressed in writing, security?
a copy furnished the BAC.
 37.1.5. Contract award shall be

made within the bid validity period
provided in Section 28 of this IRR.
 Annex C
Period of Action on Procurement
Activities
6. To verify if the BAC 8. From the notices to the Did the BAC notify all
notified all the losing bidders losing bidders, look for the the losing bidders within
within the 7 or 4 calendar day date of its receipt and the 7 calendar day
compare with the 7-day or period / 4 calendar day
period (same period provided
4-day requirement. period for ABC
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for the HOPE to approve/ P50,000,000 and below
disapprove the BAC’s Resolution) 9. Also compare the names (same period provided
of the losing bidders notified for the HOPE to
Implementing Rules and Regulations with those appearing in the approve/ disapprove the
(IRR) of RA 9184, as amended on Abstract of Bids. BAC’s Resolution)?
September 2, 2009:

recommendation. However, for
infrastructure projects with an ABC
of Fifty Million Pesos (P50,000,000)
and below, the Head of the
Procuring Entity shall approve or
disapprove the said
recommendation within four (4)
(15) calendar days. Within the
same period provided herein the
BAC shall notify all losing bidders of
its decision.
7. To verify if the BAC posted 10. Access the PhilGEPS Did the BAC post the
the Notice of Award within 3 website and the website of Notice of Award within
days from its issuance at the: the procuring entity, and 3 days from its issuance
conduct inspection of the at the:
a. PhilGEPS website,
area where the Notice of
b. website of the procuring Award is to be posted on the a. PhilGEPS website?
entity, and 3rd day from the issuance of
c. any conspicuous place in the Notice of Award to the b. website of the
the premises of the winning bidder. procuring entity? And
procuring entity.
c. any conspicuous
Implementing Rules and Regulations place in the premises
(IRR) of RA 9184, as amended on of the procuring
September 2, 2009: entity?
 37.1.6. The BAC, through the
Secretariat, shall post, within three
(3) calendar days from its issuance,
the Notice of Award in the
PhilGEPS, the website of the
procuring entity, if any, and any
conspicuous place in the premises
of the procuring entity.
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8. To verify if the procuring 11. From the receiving Did the bidder submit
entity observed the following records of the BAC, compare the JVA within ten (10)
conditions for the execution the date of submission of calendar days from
the Joint Venture Agreement receipt of the notice of
of the contract:
(JVA) with the required 10 award?
a) Submission of valid joint days from receipt of the
venture agreement, if Notice of Award.
applicable, within 10 days
from receipt of the Notice
of Award by the winning
Joint Venture bidder,
b) Posting of performance 12. From the receiving Was the performance
records of the BAC, compare security posted within
security within ten (10)
the date of posting of the ten (10) calendar days
calendar days from receipt performance security with from receipt by the
by the winning bidder of the required 10 days from winning bidder of the
the Notice of Award & prior receipt of the Notice of Notice of Award & prior to
to the signing of the Award; also compare with the signing of the contract?
contract in the required the date of the signing of
amount, currency, form, the contract.
issuing entity, and valid
until the issuance by the
procuring entity of the final
13. Compare the amount, Was the performance
certificate of acceptance, currency, form, issuing security posted in the:
c) Signing of the contract entity, and validity period of a. right amount?
within the same ten (10) the performance security
day period provided that posted by the winning
all the documentary bidder with the b. right currency?
requirements are complied requirements of Sec 39.2 of
with, the Revised IRR of RA 9184.
d) Approval by higher c. right form?
authority, if required,
within 15 days from receipt d. right issuing entity?
(25 days for GOCCs)
Implementing Rules and Regulations e. right validity period?

September 2, 2009:
14. Compare the date of Was the contract signed
 37.1.4. Notwithstanding the signing of the contract with within 10 calendar days
issuance of the Notice of Award, the required 10-day period from receipt of the
award of contract shall be subject from receipt of the Notice of Notice of Award by the
to the following conditions: Award. winning bidder?
a) Submission of the following
documents within the
prescribed period: 15. Compare the signatory If further approval by
i) Valid JVA, if applicable, (approval) in the contract higher authority is
within ten (10) calendar with the authorized required, was the
days from receipt by the signatory as required by contract approved by
bidder of the notice from the relevant regulations/policies appropriate approving
BAC that the bidder has the and as shown by a copy of a authority or his/her duly
Lowest Calculated valid appointment or office authorized
Responsive Bid, as the case order. representative?
may be; or
ii) In case of infrastructure
projects, valid PCAB license 16. Compare the date of Was the contract
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and registration for the type approval of the contract by approved by higher
and cost of the contract to higher authority with the 15- authority within 15
be bid for foreign bidders, day-period (5 days for calendar days (5 days
within 30 calendar days infrastructure projects for infrastructure
from receipt by the bidder of costing P50 M and below) projects costing P50
the notice from the BAC that from receipt (25 days for million and below)?
the bidder has the LCRB, GOCCs). (25 calendar days for
when the treaty or GOCCs)?
international or executive
agreement expressly allows
submission of the PCAB
license and registration for
the type and cost of the
contract to be (sic) as a pre-
condition to the notice of
award.
b)Posting of performance
security in accordance with
Section 39 of this IRR;
c) Signing of the contract as
provided in Section 37.2 of this
IRR;
d)Approval by higher authority, if
required, as provided in
Section 37.3 of this IRR.
 39. Performance Security
39.1. To guarantee the faithful
performance by the winning bidder
of its obligations under the contract
in accordance with the Bidding
Documents, it shall post a
performance security prior to the
signing of the contract.
39.2. The performance security
shall be in an amount equal to a
percentage of the total contract
price in accordance with the
following schedule: [AS AMENDED
UNDER GPPB RESOLUTION NO. 06-
2009 DATED 30 SEPTEMBER 2009]
Amount of
Form of Performance Performance
Security Security (Equal
to Percentage of
the Total
Contract Price
a) Cash, cashier’s/
manager’s check
issued by a Universal
or Commercial Bank Two percent
b) Bank draft/ (2%)
guarantee or
irrevocable letter of
credit issued by a
Universal or
Commercial Bank;
Provided, however,
that it shall be
confirmed or
authenticated by a
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Universal or
Commercial Bank, if
issued by a foreign
bank.
c) Surety bond callable Five percent
upon demand issued (5%)
by a surety or
insurance company
duly certified by the
Insurance Commission
as authorized to issue
such security.
d) Any combination of Proportionate
the foregoing. to share of
form with
respect to
total amount
of security
 37.2. Contract Signing

37.2.1. The winning bidder shall post
the required Performance Security
and enter into contract with the
procuring entity within ten (10)
calendar days from receipt by the
winning bidder of the Notice of
Award.
37.2.2. The procuring entity shall
enter into contract with the
winning bidder within the same ten
(10) day period provided that all
the documentary requirements are
complied with.
 37.3. Contract Approval by

Higher Authority
When further approval of higher
authority is required, the approving
authority for the contract or his
duly authorized representative shall
be given maximum of fifteen (15)
calendar days from receipt thereof
to approve or disapprove it.
However, for infrastructure projects
with an ABC of Fifty Million Pesos
(P50,000,000) and below, the
maximum period is five (5)
GOCCs, the concerned board or its
duly authorized representative shall
be given a maximum of twenty-five
(25) calendar days from receipt
thereof to approve or disapprove it.
9. To verify if the contract is 17. Obtain from the BAC Are the contract
complete Secretariat or the Project documents complete,
Management Office or the consisting of the
Implementing Rules and Regulations Office responsible for project following:
(IRR) of RA 9184, as amended on implementation/ contract
execution for a copy of the a) Contract Agreement;
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September 2, 2009: complete set of documents
comprising the contract and b) Bidding Documents;
 37.2.3. The following documents compare with the
shall form part of the contract: requirements. c) Winning bidder’s bid,
a) Contract Agreement; including the Eligibility
b) Bidding Documents; requirements,
c) Winning bidder’s bid, including Technical and Financial
the Eligibility requirements, Proposals, and all other
Technical and Financial documents/statements
Proposals, and all other submitted;
documents/statements
submitted; d) Performance
d) Performance Security; Security;
e) Credit line in accordance with
e) Credit line in
the provisions of this IRR, if
accordance with the
applicable;
provisions of this IRR,
if applicable;
f) Notice of Award of Contract; and
g) Other contract documents that
f) Notice of Award of
may be required by existing laws
Contract; and
and/or the procuring entity
concerned in the Bidding
g) Other contract
Documents, such as the
documents that may
construction schedule and S-
be required by existing
curve, manpower schedule,
laws and/or the
construction methods, equipment
procuring entity
utilization schedule, construction
concerned in the
safety and health program
Bidding Documents,
approved by the Department of
such as the
Labor and Employment, and
construction schedule
PERT/CPM for infrastructure
and S-curve,
projects.
manpower schedule,
construction methods,
equipment utilization
schedule, construction
safety and health
program approved by
the Department of
Labor and
Employment, and
PERT/CPM for
infrastructure projects?
IN CASE OF DISAPPROVAL BY THE HOPE OF THE BAC’S RECOMMENDATION FOR AWARD –

1. In case of disapproval by 1. If the HOPE In case of disapproval
the HOPE, verify if the: disapproved the by the HOPE of the
a. grounds for such were recommendation for BAC’s
expressed in writing and a award, look for the recommendation, did
copy furnished to the document indicating the the HOPE express the
BAC, and grounds for such with grounds for such and
b. written instructions on the evidence of receipt of a furnished a copy to
subsequent steps to be copy thereof by the BAC. the BAC?
adopted were given to the
BAC
In case of disapproval
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Implementing Rules and 2. Also look for the by the HOPE of the
Regulations (IRR) of RA 9184, as document indicating the BAC’s
amended on September 2, 2009: instructions given by the recommendation, did
 37.1.3. In case of approval, HOPE on the subsequent the HOPE give
the Head of the Procuring steps to be adopted by instructions to the
Entity shall immediately issue the BAC. BAC on the
the Notice of Award to the subsequent actions to
bidder with the Lowest be adopted?
Calculated Responsive Bid. In
the event the Head of the
Procuring Entity shall
disapprove such
recommendation, such
disapproval shall be based only
on valid, reasonable, and
justifiable grounds to be
expressed in writing, a copy
furnished the BAC.
Generic Procurement Procedures for

Infrastructure Projects, June 2006,
published by the GPPB:
 How is a contract awarded?
…
5. In case of disapproval of the
recommendation of award the
HOPE shall state the reasons for
disapproval and instruct the BAC
on the subsequent actions to be
adopted.
IN CASE OF FAILURE, REFUSAL, OR INABILITY BY THE WINNING BIDDER TO SUBMIT DOCUMENTS

AND ENTER INTO CONTRACT - FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
1. To verify if the BAC: 1. From the records of the Did the BAC disqualify
a. disqualified, BAC: the winning bidder who,
b. forfeited the bid security of  documenting the fact- through his fault, failed,
finding to establish if refused or was unable
and
the winning bidder was to:
c. recommended the a. submit the
responsible for his
imposition of sanctions to failure, refusal, or documents required
the winning bidder who, inability to: (a) to under Section 37.1
through his fault, failed, submit the documents of the Revised IRR
required under Section of RA 9184?
refused or was unable:
37.1 of the Revised IRR or
a. to submit the documents of RA 9184, or (b) to b. to make good its bid
required under Section make good its bid by by entering into a
entering into a contract contract with the
37.1 of the Revised IRR of
with the procuring procuring entity?
RA 9184, or entity, or (c) post the or
b. to make good its bid by required Performance c. post the required
entering into a contract Security within the Performance
with the procuring entity, period stipulated in the Security within the
or Revised IRR of RA 9184 period stipulated in
c. post the required or in the Bidding the Revised IRR of
Performance Security Documents; RA 9184 or in the
 documenting the Bidding
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within the period deliberations/evaluation Documents?
stipulated in the Revised conducted and the
IRR of RA 9184 or in the decisions arrived at;
 documenting the Did the BAC forfeit the
Bidding Documents
recommendations made bid security of the
Implementing Rules and to the HOPE, winning bidder who,
through his fault, failed,
look for information on the: refused or was unable
amended on September 2, 2009: to:
 disqualification of the a. submit the
 40.1. If the bidder with the Lowest said bidder, documents required
Calculated Responsive Bid/Highest  forfeiture of the bid under Section 37.1
Rated Responsive Bid or the security and of the Revised IRR
bidder with the Single  recommendation of the of RA 9184?
Calculated/Rated Responsive Bid, imposition of sanctions or
fails, refuses or is unable to to the winning bidder. b. to make good its bid
submit the documents required by entering into a
under Section 37.1 of this IRR or contract with the
to make good its bid by entering procuring entity?
into a contract with the procuring or
entity or post the required c. post the required
Performance Security within the Performance
period stipulated in this IRR or in Security within the
the Bidding Documents, the bid period stipulated in
security shall be forfeited and the the Revised IRR of
appropriate sanctions provided in RA 9184 or in the
this IRR and existing laws shall be Bidding
imposed, except where such Documents?
failure, refusal or inability is
through no fault of the said
bidder. Did the BAC
recommend the
imposition of sanctions
to the winning bidder
who, through his fault,
failed, refused or was
unable to:
a. submit the
documents required
under Section 37.1
of the Revised IRR
of RA 9184?
or
b. to make good its bid
by entering into a
contract with the
procuring entity?
or
c. post the required
Performance
Security within the
period stipulated in
the Revised IRR of
RA 9184 or in the
Bidding
Documents?
2. To verify if the BAC, after 2. From the records of the Did the BAC, after
disqualifying the winning BAC, look for information on disqualifying the
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bidder who, due to his fault, the disqualification of the winning bidder who,
refused, failed, or was unable winning bidder who, due to due to his fault,
to enter into contract, post his fault, refused, failed, or refused, failed, or was
was unable to enter into unable to enter into
the required performance
contract, post the required contract, post the
security, or submit other performance security, or required performance
required documents within submit other required security, or submit
the time stipulated, initiated documents within the time other required
and completed the post- stipulated. documents within the
qualification process on the time stipulated, initiate
bidder with the second Look also for information on and complete the post-
Lowest Calculated Bid the conduct of post- qualification process on
qualification on the bidder the bidder with the
Implementing Rules and Regulations with the second Lowest second Lowest
(IRR) of RA 9184, as amended on Calculated Bid. Calculated Bid?
September 2, 2009:
 40.2. In the case of the failure,
refusal or inability of the bidder
Responsive Bid to submit the
documents required under Section
37.1 of this IRR or to enter into
contract and post the required
Performance Security, as provided
in this Section, the BAC shall
disqualify the said bidder, and shall
initiate and complete the post- NOTE:
qualification process on the bidder
with the second Lowest Calculated For the audit on the Post-
Bid:....This procedure shall be Qualification for the
repeated until the Lowest Procurement of
Calculated Responsive Bid/Highest Infrastructure Projects
Rated Responsive Bid is conducted by the BAC,
determined for award. However, if perform the audit
no bidder passes post- activities pertaining to
qualification, the BAC shall declare these procurement
the bidding a failure and conduct a activities in another part
re-bidding with re-advertisement. of this Guide.
Should there occur another failure
of bidding after the conduct of the
contract’s re-bidding, the procuring
entity concerned may enter into a
negotiated procurement.
3. To verify if the BAC, after 3. From the records of the Did the BAC, after
disqualifying the winning BAC, look for information on disqualifying the
bidder with the Single the disqualification of the winning bidder with the
winning bidder with the SCRB who, due to his
Calculated Responsive Bid
SCRB who, due to his fault, fault, refused, failed, or
(SCRB) who, due to his fault, refused, failed, or was was unable to enter into
refused, failed, or was unable unable to enter into contract, post the
to enter into contract, post contract, post the required required performance
the required performance performance security, or security, or submit
security, or submit other submit other required other required
required documents within documents within the time documents within the
the time stipulated, declared stipulated. time stipulated,
the bidding a failure and
Look also for information on a. declare the bidding a
conducted a re-bidding with
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re-advertisement and/or the declaration of the failure?
posting, as provided for in bidding a failure and the
Sections 21 and 25 of the conduct of a re-bidding with and
re-advertisement. b. conduct a re-bidding
Revised IRR of RA 9184
with re-advertisement
Implementing Rules and Regulations and/or posting?
September 2, 2009: NOTE:
 40.3. In the case of failure, refusal For the audit on the
or inability of the bidder with the Failure of Bidding for the
Single Calculated/Rated Responsive Procurement of
Bid to submit the documents Infrastructure Projects and
required under Section 37.1 of this on the Competitive/ Public
IRR or to enter into contract and Bidding for the
post the required Performance Procurement of
Security, as provided in this Infrastructure Projects,
Section, the BAC shall disqualify perform the audit
the said bidder, and shall declare activities pertaining to
the bidding a failure and conduct a these procurement
re-bidding with re-advertisement activities in other parts of
and/or posting, as provided for in this Guide.
Sections 21 and 25 of this IRR.
Should there occur another failure
of bidding after the conduct of the
contract’s re-bidding, the procuring
entity concerned may enter into a
negotiated procurement.
INVOLVEMENT OF THE BAC OBSERVERS

1. To verify if the BAC invited 1. From the Minutes of the Did the BAC choose the
Observers: BAC meeting on the Observers considering:
a. representing the COA, the selection of the Observer
duly recognized private group from the “pool”, check for a. one representing
in a sector or discipline information on the BAC’s the COA?
relevant to the procurement evaluation in regard to:
at hand, and a non-  the selection of the b. one representing
government organization organization from which the duly
(NGO) from the procuring the Observer will be recognized private
entity’s Pool of Observers; invited; group in a sector
 knowledge, experience or or discipline
b. that have:
expertise in procurement relevant to the
b.1. knowledge, experience or procurement at
or in the subject matter
of the contract to be bid; hand?
 no actual or potential
contract to be bid;
conflict of interest in the c. one representing a
b.2. no actual or potential contract to be bid; and non-government
conflict of interest in the  conformed with other organization?
contract to be bid; and relevant criteria
b.3. conformed with other determined by the BAC. d. with knowledge,
relevant criteria determined by experience or
the BAC; expertise in
c. at least 3 calendar days procurement or in
prior to the start of the the subject matter
activity of the contract to
be bid?
e. With no actual or
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(IRR) of RA 9184, as amended on potential conflict
September 2, 2009: of interest in the
contract to be bid?
 Section 13. Observers
13.1. To enhance the transparency of f. Conformed with
the process, the BAC shall, in all other relevant
stages of the criteria determined
procurement process, invite, in by the BAC?
addition to the representative of the
COA, at least two (2) observers, who 2. From certified copies of Did the BAC invite the
shall not have the right to vote, to sit the invitations to the observers at least 3
in its proceedings where: Observers with evidence of days prior to the start of
a) At least one (1) shall come from a receipt, compare the date of the activity?
duly recognized private group in a receipt with the 3-day
sector or discipline relevant to the minimum requirement.
procurement at hand, for example:
i) For infrastructure projects,
national associations of
constructors duly recognized by
the Construction Industry
Authority of the Philippines
(CIAP), such as, but not limited
to the following:
Association, Inc.;
Association of the
Engineers (PICE).
ii) …
iii) … and
from a non-government
organization (NGO).
13.2. The observers shall come from

an organization duly registered with
the Securities
and Exchange Commission (SEC) or
the Cooperative Development
following criteria:
be bid;
to be bid; and
13.3. Observers shall be invited

at least three (3) calendar days
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provided that they have been
duly invited in writing.
2. To verify if the Procuring 3. Based on the BAC’s Did the Procuring Entity
Entity considered the Minutes on the Post consider the comments/
comments/observations of Qualification, the meetings observations of the
on the award of contract, Observers?
the Observers
and the report of the
Implementing Rules and Regulations Observers check whether a
(IRR) of RA 9184, as amended on deliberation was made on
September 2, 2009: the comments /observations
 13.4. The observers shall have the of the observers.
a) To prepare the report either
jointly or separately indicating
their observations made on the
procurement activities conducted
by the BAC for submission to the
report shall assess the extent of
the BAC’s compliance with the
provisions of this IRR and areas of
proceedings;
procuring entity and furnish a
copy to the GPPB and Office of the
Ombudsman/Resident
Ombudsman. If no report is
submitted by the observer,
then it is understood that the
bidding activity conducted by
procedure; and
c) To immediately inhibit and notify
in writing the procuring entity
concerned of any actual or
potential interest in the contract to
be bid.

(c) post-qualification
summary report; (d) APP and
related PPMP; and (e) opened
proposals.

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Prepared by:
Commission on Audit
the Answer
appropriate audit
the contract;
c. etc.
OFFENSES AND
invited in writing.

appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.
Accounts
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Prepared by:
Commission on Audit
XII. FAILURE OF BIDDING
DECLARED BY THE BIDS AND AWARDS COMMITTEE (BAC)
A. AUDIT OBJECTIVE:
To verify if the conditions/requirements, procedures for the declaration of failure of bidding

were adhered to by the procuring entity

1. Documentary evidences that no bids were received;
2. Documentary evidences that all prospective bidders were declared ineligible;
3. Documentary evidences that all bids failed to comply with all the bid requirements;
4. Documentary evidences that all bids failed post-qualification;
5. Documentary evidences that the bidder with the Lowest Calculated Responsive Bid refused,
without justifiable cause, to accept the award of contract, and no award was made in accordance
with Section 40 of the RA 9184 and Revised IRR;
6. Minutes of the BAC meetings on post-qualification;
7. BAC Resolution declaring the bidding a failure;
8. Minutes of the BAC meetings with information on the review and evaluation conducted on the:
(a) terms, (b) conditions, (c) specifications, and (d) cost estimates and the
recommendations/decisions made – possible revisions/adjustments;
9. Approved revised Bidding Documents;
10. Revised Approved Budget for the Contract (ABC);
11. Records of the re-bidding;
12. Copy of the Minutes of the BAC meeting on the selection of the Observer from the “pool”;
13. Copy of reports of the BAC Observers.

 Audit Criteria Audit Activities Yes No Particulars of
Audit Question
the Answer
1. To verify if the BAC 1. From the Minutes of BAC Did the BAC declare a
declared a failure of bidding meetings and other records, failure of bidding for
for reason that: look for information that: reason that:
a) No bids were received; a) No bids were
b) All prospective bidders received?
a) No bids were received; or were declared ineligible;
b) All prospective bidders c) all bids failed to comply b) All prospective
were declared ineligible; or with all the bid bidders were
c) All bids failed to comply requirements, declared ineligible?
with all the bid d) all bids failed post-
requirements, or qualification, or
d) all bids failed post- e) the bidder with the Lowest c) All bids failed to
qualification, or Calculated Responsive Bid comply with all the
refused, without justifiable bid requirements?
e) the bidder with the
cause, to accept the award
Lowest Calculated of contract, and no award or
Responsive Bid refused, was made in accordance d) all bids failed
without justifiable cause, with Section 40 of the RA post-qualification?
to accept the award of 9184 and Revised IRR.
contract, and no award or
was made in accordance e) the bidder with
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Prepared by:
Commission on Audit
Audit Question
the Answer
with Section 40 of the RA the Lowest
9184 and Revised IRR . Calculated
e) funds are not available Responsive Bid
refused, without
Implementing Rules and Regulations justifiable cause,
(IRR) of RA 9184, as amended on to accept the
September 2, 2009: award of contract,
and no award was
 35.1. The BAC shall declare the made in
bidding a failure when: accordance with
a) No bids are received; Section 40 of the
b) All prospective bidders are RA 9184 and
declared ineligible; Revised IRR?
c) All bids fail to comply with all the
bid requirements or fail post-
qualification, or, in the case of
consulting services, there is no
successful negotiation; or
d) The bidder with the Lowest
Calculated Responsive
Bid/Highest Rated Responsive
Bid refuses, without justifiable
cause, to accept the award of
contract, and no award is made
in accordance with Section 40 of
the Act and this IRR.
GPPB Circular 01-2009 dated 20

January 2009:
 …
4.2. To facilitate the immediate
implementation of projects even
pending approval of the GAA,
the ABC shall be based on the
budget levels under the National
Expenditure Program (NEP)
submitted to Congress.
4.3. For specifically appropriated
projects, agencies can proceed
with the procurement activities
prior to issuance of the notice of
award using as basis the NEP
figures.
4.4. For lump-sum appropriations and
Centrally Managed Items (CMIs)
under the agency’s budget, the
head of the agency shall identify
and thereafter notify the
implementing units (IUs) of the
amount allocated for the
projects they are to implement.
On the basis of said notification,
the heads of the respective IUs,
as procuring entities, can
proceed with the procurement
activities prior to issuance of the
notice of award.
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Prepared by:
Commission on Audit
Audit Question
the Answer
4.5. For Multi-Year Projects (MYPs),
for which the initial funding –
sourced from either the
existing/current year’s budget or
the NEP – is not sufficient to
cover the total cost of the
project, it is required that a
Multi-Year Obligational Authority
(MYOA) must already have been
issued in accord with DBM
Circular Letter 2004-012 prior to
commencement of any
procurement activity.
Thus, the MYOA shall be a
pre-requisite for procurement of
a multi-year contract. All
procurement activities should be
within the total project cost and
categories reflected in the
MYOA issued by DBM for the
said MYP.
4.6. As prescribed under Section 47,
Chapter 8, Subtitle B, Title I,
Book V of the Administrative
Code of 1987, no contract
involving the expenditure of
public funds shall be entered
into unless the proper
accounting official of the
procuring entity shall have
certified as to the availability of
funds and the allotment to
which the expenditure or
obligation may be properly
charged.
2. To verify if the BAC 2. From the minutes of the Did the BAC
determined the reason for the BAC meetings held for the determine the reason
failed bidding by conducting a purpose, look for information for the failed bidding
on the review and evaluation by conducting a
mandatory review and
conducted on the: (a) terms, mandatory review
evaluation of the : (b) conditions, (c) and evaluation of the:
a. terms, specifications, and (d) cost a. terms in the
b. conditions, estimates and the Bidding Documents?
c. specifications, recommendations/decisions
d. cost estimates made – possible b. conditions in the
in the Bidding Documents revisions/adjustments. Bidding Documents?
Implementing Rules and Regulations c. specifications in the

(IRR) of RA 9184, as amended on Bidding Documents?
September 2, 2009:
 35.2. In order to determine the d. cost estimates?
reason for the failed bidding, the
BAC shall conduct a mandatory
review and evaluation of the terms,
conditions, and specifications in the
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Prepared by:
Commission on Audit
Audit Question
the Answer
Bidding Documents, including its
cost estimates.
3. To verify if the BAC and the 3. From the minutes of the Did the BAC and the
concerned units/officials of BAC meetings held for the concerned
the procuring entity, revised purpose and other records of units/officials of the
the procuring entity, look for procuring entity,
the following as a result of
information on the revised the following
the review and evaluation revisions/adjustments made on as a result of the
conducted: the (a) terms, (b) conditions, review and evaluation
a. terms, (c) specifications, (d) ABC and conducted:
b. conditions, approvals made thereon. a. terms in the
c. specifications, Bidding
d. Approved Budget for the Documents?
Contract (ABC);
had them approved; and b. conditions in the
Bidding
conducted a re-bidding with
Documents?
re-advertisement and/or
posting c. specifications in the
Bidding
Documents?
September 2, 2009:
d. cost estimates?
 35.2. In order to determine the
4. From the records of the Did the BAC conduct
reason for the failed bidding, the
BAC look for information on a re-bidding?
BAC shall conduct a mandatory
the re-bidding conducted.
review and evaluation of the terms,
conditions, and specifications in the
Bidding Documents, including its
cost estimates.
 35.3. Based on its findings, the

BAC shall revise the terms, NOTE:
conditions, and specifications, and if
necessary, adjust the ABC, subject For the audit on the re-
to the required approvals, and bidding conducted perform
conduct a re-bidding with re- the audit using the portion
advertisement and/or posting, as of this Guide on
provided for in Section 21.2 of this Competitive/Public Bidding
IRR
for the Procurement of
 35.4. All bidders who have Infrastructure Projects.
initially responded to the Invitation
to Bid/Request for Expression of
Interest and have been declared
eligible or short listed in the previous
biddings shall be allowed to submit
new bids. The BAC shall observe the
same process and set the new
periods according to the same rules
followed during the previous
bidding(s).
 35.5. Should there occur a

second failure of bidding, the
procuring entity may resort to
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Prepared by:
Commission on Audit
Audit Question
the Answer
negotiated procurement, as provided
for in Section 53.1 of this IRR.
4. To verify if the BAC invited 5. From the Minutes of the Did the BAC choose
Observers: BAC meeting on the selection the Observers
a. representing the COA, the of the Observer from the considering:
duly recognized private group “pool”, check for information
in a sector or discipline on the BAC’s evaluation in 1. one representing
relevant to the procurement regard to: the COA?
at hand, and a non-  the selection of the
government organization organization from which the
(NGO) from the procuring Observer will be invited; 2. One representing
entity’s Pool of Observers;  knowledge, experience or the specific
b. that have: expertise in procurement or relevant the duly
in the subject matter of recognized private
b.1. knowledge, experience or
the contract to be bid; group in a sector or
 no actual or potential discipline relevant to
contract to be bid; conflict of interest in the the procurement at
contract to be bid; and hand?
b.2. no actual or potential
conflict of interest in the
 conformed with other
contract to be bid; and relevant criteria determined
by the BAC. 3. One representing
b.3. conformed with other a non-government
relevant criteria determined by organization?
the BAC;
c. at least 3 calendar days
4. With knowledge,
prior to the start of the
experience or
activity expertise in
procurement or in
Implementing Rules and Regulations the subject matter of
(IRR) of RA 9184, as amended on the contract to be
September 2, 2009: bid?
 Section 13. Observers
13.1. To enhance the transparency of 5. With no actual or
the process, the BAC shall, in all potential conflict of
stages of the interest in the
procurement process, invite, in contract to be bid?
addition to the representative of the
COA, at least two (2) observers, who
shall not have the right to vote, to sit 6. Conformed with
in its proceedings where: other relevant
a) At least one (1) shall come from a criteria determined
duly recognized private group in a by the BAC?
sector or discipline relevant to the
procurement at hand, for example:
i) ) For infrastructure projects, 6. From certified copies of the Did the BAC invite the
national associations of invitations to the Observers observers at least 3
constructors duly recognized by with evidence of receipt, days from the date of
the Construction Industry compare the date of receipt the bid evaluation?
Authority of the Philippines with the 3-day minimum
(CIAP), such as, but not limited requirement.
to the following:
Association, Inc.;
Association of the
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Prepared by:
Commission on Audit
Audit Question
the Answer
Engineers (PICE).…
ii) ….
iii) … and
from a non-government
organization (NGO).
13.2. The observers shall come from

an organization duly registered with
the Securities
and Exchange Commission (SEC) or
the Cooperative Development
following criteria:
be bid;
to be bid; and
13.3. Observers shall be invited

at least three (3) calendar days
provided that they have been
duly invited in writing.

1. To verify the effects of Analyze the instances of non-
instances of non-compliance compliance to establish the Appropriate Audit Working Papers
on the: effects and develop
appropriate audit
including the validity of the Also determine if appropriate
resulting contract; actions were taken by the
b. validity of any payment to of non-compliance.
the contract;
c. etc.
NOTE:
and develop appropriate Also refer to the OFFENSES
audit recommendations AND PENALTIES portion of
this Audit Guide.
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Prepared by:
Commission on Audit
Audit Question
the Answer
invited in writing.
2. To verify the causes of Analyze the instances of non-

instances of non-compliance compliances to establish the Appropriate Audit Working Papers
and develop appropriate cause(s) and develop
appropriate audit
recommendations.
Also determine if appropriate

actions were taken by the
of non-compliance.
NOTE:
AND PENALTIES portion of
this Audit Guide.
3. To communicate the Prepare the appropriate audit/
results of the audit with the validation document reflecting Audit Observation Memorandum (AOM), if
auditee’s Management the results of the applicable
Accounts
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Prepared by:
Commission on Audit
XIII. FAILURE OF BIDDING DECLARED BY THE HOPE
A. AUDIT OBJECTIVE:
To verify if the conditions/requirements for the declaration of failure of bidding were adhered to by
the procuring entity

Documents on the declaration of failure of bidding by the HOPE with supporting documents on
the existence of the grounds used to justify the said declaration that:
1. there was prima facie evidence of collusion between appropriate public officers or employees
of the procuring entity, or
2. there was prima facie evidence of collusion between appropriate public officers or employees
of the procuring entity, or
3. there was prima facie evidence of collusion between or among the bidders themselves,
4. there was prima facie evidence of collusion between a bidder and a third party, or
5. there was prima facie evidence of any act which restricted, suppressed or nullified
competition, or
6. the BAC was found to have failed in following the prescribed bidding procedures, or
7. the award of the contract will not redound to the benefit of the GOP, for justifiable and
reasonable grounds such as the physical and economic conditions have significantly changed
so as to render the project no longer economically, financially, or technically feasible, as
determined by the Head of the Procuring Entity, or
reasonable grounds such as the project is no longer necessary as determined by the Head of
the Procuring Entity, or
reasonable grounds such as the source of funds for the project has been withheld or
reduced through no fault of the procuring entity.

the Answer
1. To verify if the HOPE 1. From the documents on Did the HOPE declare a
declared a failure of bidding the declaration of failure of failure of bidding for
for reason that: bidding by the HOPE, look reason that:
for information on the
a. no funds available;
reason for such declaration. a. no funds available?
b. there is prima facie
evidence of collusion OR
between:
b.1. appropriate public b. there was prima facie
officers or employees of evidence of collusion
the procuring entity, or between
b.2. between the BAC and appropriate public
any of the bidders, or officers or
employees of the
b.3. among the bidders
procuring entity?
themselves, or
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Prepared by:
Commission on Audit
the Answer
b.4. a bidder and a third
party, OR
including any act which

c. there was prima
restricts, suppresses or facie evidence of
nullifies or tends to collusion between
restrict, suppress or nullify the BAC and any of
competition; the bidders?
or
c. the BAC is found to have OR
failed in following the
prescribed bidding c. there was prima
facie evidence of
procedures;
collusion between or
or among the bidders
d. the award of the contract themselves?
will not redound to the
benefit of the GOP, for OR
justifiable and reasonable
grounds such as: (i) if the d. there was prima
physical and economic facie evidence of
conditions have collusion between a
bidder and a third
significantly changed so as
party?
to render the project no
longer economically, OR
financially, or technically
feasible, as determined by e. there was prima
the Head of the Procuring facie evidence of any
Entity; (ii) if the project is act which restricted,
no longer necessary as suppressed or
nullified competition?
determined by the Head of
the Procuring Entity; and
(iii) if the source of funds OR
for the project has been
withheld or reduced f. the BAC was found
through no fault of the to have failed in
procuring entity. following the
prescribed bidding
Implementing Rules and Regulations procedures?
September 2, 2009: OR
 Section 41. The Head of the g. the award of the

Procuring Entity reserves the right to contract will not
reject any and all bids, declare a redound to the
failure of bidding, or not award the benefit of the GOP,
contract in the following situations: for justifiable and
a) If there is prima facie evidence of reasonable grounds
collusion between appropriate such as the physical
public officers or employees of the and economic
procuring entity, or between the conditions have
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Prepared by:
Commission on Audit
the Answer
BAC and any of the bidders, or if significantly changed
the collusion is between or among so as to render the
the bidders themselves, or project no longer
between a bidder and a third economically,
party, including any act which financially, or
restricts, suppresses or nullifies or technically feasible,
tends to restrict, suppress or as determined by the
nullify competition; Head of the
b) If the BAC is found to have failed Procuring Entity?
in following the prescribed bidding
procedures; or OR
c) For any justifiable and reasonable
ground where the award of the h. the award of the
contract will not redound to the contract will not
benefit of the GOP, as follows: (i) redound to the
if the physical and economic benefit of the GOP,
conditions have significantly for justifiable and
changed so as to render the reasonable grounds
project no longer economically, such as the project is
financially, or technically feasible, no longer necessary
as determined by the Head of the as determined by the
Procuring Entity; (ii) if the project Head of the
is no longer necessary as Procuring Entity?
determined by the Head of the
Procuring Entity; and (iii) if the OR
source of funds for the project has
been withheld or reduced through i. the award of the
no fault of the procuring entity. contract will not
redound to the
benefit of the GOP,
for justifiable and
reasonable grounds
such as the source
of funds for the
project has been
withheld or reduced
through no fault of
the procuring entity?

appropriate audit
the contract;
c. etc.
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Prepared by:
Commission on Audit
the Answer
and develop appropriate
audit recommendations NOTE:
Also refer to the
OFFENSES AND
invited in writing.
appropriate audit
recommendations.
Also determine if
compliance.
NOTE:
Also refer to the
OFFENSES AND
this Audit Guide.

Accounts
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Prepared by:
Commission on Audit

Competitive Bidding - Infra

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On the Procurement Procedures:

COMPETITIVE / PUBLIC BIDDING

I. PREPARATORY ACTIVITY: BIDDING DOCUMENTS

B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER

Document needed for evaluation:

1. The procuring entity’s Customized Bidding Documents for Infrastructure Projects;

Audit Sub-objective Suggested Audit Working Paper

EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT

2. To verify the causes of Analyze the instances of

3. To communicate the Prepare the appropriate

2. To verify if the participants to the Pre-Procurement Conference were as required;

B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER

Documents needed for evaluation:

Suggested Audit Working Paper

3.2. Annual Procurement Plan

3.3. Approved Budget for the

3.5. Lump-Sum Appropriations

3.8. Multi-Year Obligational

3.9. National Expenditure

EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT

2. To verify the causes of Analyze the instances of

3. To communicate the Prepare the appropriate

III. ADVERTISING AND POSTING OF THE INVITATION TO BID

Advertising and posting are conducted to ensure transparency of the procurement

B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER

Documents needed for evaluation:

Audit Sub-objective Suggested Audit Working Paper

EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT

2. To verify the causes of Analyze the instances of

3. To communicate the Prepare the appropriate

B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER

Documents needed for evaluation:

Audit Sub-objective Suggested Audit Working Paper

EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT

2. To verify the causes of Analyze the instances of

3. To communicate the Prepare the appropriate

B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER

Documents needed for evaluation:

Audit Sub-objective Suggested Audit Working Paper

a) For the procurement of goods

Implementing Rules and

2. To verify the causes of Analyze the instances of non-

Also determine if appropriate

3. To communicate the Prepare the appropriate audit/

VI. PRE-BID CONFERENCE

B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER

Documents needed for evaluation:

Audit Sub-objective Suggested Audit Working Paper

3. To verify if during the 4. From the Minutes of Did the BAC

4. To verify if the BAC 5. Count the number of Did the BAC

13.3. Observers shall be invited at

6. To verify if the Procuring 9. Based on the BAC’s Did the Procuring

 13.5. Observers shall be allowed

EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT

2. To verify the causes of Analyze the instances of

3. To communicate the results of Prepare the appropriate

VII. SUPPLEMENTAL / BID BULLETINS

To verify if Supplemental / Bid Bulletins were issued as required

B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER

Documents needed for evaluation:

Audit Sub-objective Suggested Audit Working Paper

2. To verify if: 3. Obtain copy/ies of Were Requests for

 22.5.2 Supplemental/Bid Bulletins

EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT