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Guidelines on the Establishment of Procurement Systems and Organizations
.............................................................................................................. Writing the Technical Specifications.............................................39 1...................................................................................................................... Developing the Project Requirements.....................................................................................................28 Legal Reference ...................................................................PROCUREMENT PLANNING AND BUDGET LINKAGE . SCOPE............................................................... Method of Procurement ...........................................................................................................12 Legal Reference .........................................38 PROCUREMENT PLANNING – PREPARATION OF THE ANNUAL PROCUREMENT PLAN (APP) ................................................. 7 Application... 8 Accountability ........... The PPMP .28 PROFESSIONALIZATION OF THE BAC............................................................................42 COMPETITIVE BIDDING ...................................................................................................................................................................... 7 Scope .............................................................................................................................................................................................................................................................44 ALTERNATIVE METHODS OF PROCUREMENT .............................................................................................................................................................. Determining the ABC .................. 8 PROCUREMENT ORGANIZATIONS ........................................................ TWGS & END-USER UNITS/PMOS ................................................................ AND APPLICATION ..............................................................................................10 THE ORGANIZATIONAL STRUCTURE .............................................35 3.............................8 Legal Reference ................36 4.................35 2...................................44 Legal Reference ................................. 6 COVERAGE......................................................20 CONDITIONS FOR GRANTING HONORARIA............................................................................................................................... 3...................................... 2.....Page i GUIDELINES ON THE ESTABLISHMENT OF PROCUREMENT SYSTEMS AND ORGANIZATIONS.........................................................................................................................................................................................................................................39 Format of the APP .....................................................................................................................................34 Legal Reference ................ I ABBREVIATIONS AND ACRONYMS.........................38 7...45 DepED Guidelines on Establishing Procurement Systems and Organizations ....................................................................................................32 PROCUREMENT PLANNING ............................37 5.......12 ROLES AND RESPONSIBILITIES....... 7 PRINCIPLES OF GOVERNMENT PROCUREMENT ......................39 Procurement Strategy ................................................................................................................... The Annual Procurement Plan ........34 PROCUREMENT PLANNING – PREPARATION OF THE PROJECT PROCUREMENT MANAGEMENT PLANS (PPMPS) ..................................7 Legal Reference ................................. 7 Coverage........................ 8 Public Monitoring .........................................................................6 Legal Reference ......................................35 1........................................ 8 Competitiveness .................................................... 8 Transparency ........................40 VARIOUS METHODS OF PROCUREMENT ...........20 Legal Reference ............................................35 Legal Reference .............................................................................................................. PROCUREMENT SERVICE/BAC SECRETARIAT (FIELD OFFICES). Procurement Milestones................. Scope of Work (SOW) and Terms of Reference (TOR) ........ 8 Streamliningand use of technology in procurement ..............................................................................................4 LEGAL BASIS FOR THE PROCUREMENT MANUAL ............................................................................................................................................................................................37 6............................................... III GENERAL PROVISIONS...................... Format of the PPMP ..............................................................................................................................................................................31 PROCUREMENT PLANNING .........................31 Legal Reference ..............................................................
.................................................................................................................... CIVIL AND ADMINISTRATIVE LIABILITIES AND SANCTIONS.....................................................................................................................72 GLOSSARY ...............................................62 Procedure for Blacklisting During the Contract Implementation Stage ...........................56 Penal Penal Penal Penal Liabilities of Public Officers .....................................................................................59 Administrative Sanctions ...................... misrepresentation and collusion ..48 FOREIGN ASSISTED PROJECTS .........64 LEGAL ASSISTANCE AND INDEMNIFICATION ..........................................68 Free Legal Assistance ........................................69 Medical Assistance .......................................................................58 ADMINISTRATIVE LIABILITIES AND SANCTIONS ......................................................................... Fraudulent...........................................56 Sanctions for Public Officers .............................................................................................................................................................................................................................. The Different Alternative Methods ...............................................................59 Administrative Liabilities .........68 Liability Insurance...................... Collusive..... Conditions for Use of Alternative Methods of Procurement .................................................................................................................................................................54 CONFLICT OF INTEREST ............................................. and Coercive Practices ...........................................54 Definition of Corrupt............................54 Applicable penalty for fraud................................................................................................................................................................60 Procedure for Suspension and Blacklisting During the Competitive Bidding Stage ........................................................................................................55 PENAL LIABILITIES AND SANCTIONS ..................56 Liabilities of Private Individuals ....................................70 ANNEX..............45 2..................50 PENAL....................................59 BLACKLISTING GUIDELINES ................................45 1..................................................................66 GENERAL CONDITIONS ................58 Civil Liability in Case of Conviction ..............52 STANDARD OF ETHICS .....................................58 Liquidated Damages ........................................57 CIVIL LIABILITY ..........................69 PROCEDURE FOR GRANTING LEGAL ASSISTANCE AND INDEMNIFICATION ......................60 Prohibition on blacklisted persons/entities to participate in the bidding of Government Projects/Contracts ....................................................................Page ii Legal Reference .......56 Sanctions for Private Individuals.......................................................45 FOREIGN ASSISTED PROJECT...............................74 DepED Guidelines on Establishing Procurement Systems and Organizations .................................................................................................................60 Sanctions and Grounds for Blacklisting ........................................................................................................
O. FAPs FMIS FMS GAA GCC GFI GOCC GOP GPM GPPB GPPB-TSO GPRA HOPE HRB HRRB IAEB Approved Budget for the Contract Agency Budget Matrix Asian Development Bank Armed Forces of the Philippines Audited Financial Statements Annual Procurement Plan Bids and Awards Committee Bangko Sentral ng Pilipinas Certificate of Availability of Funds Construction Industry Authority of the Philippines Cost. Insurance and Freight Commission on Audit Confederation of Filipino Consulting Organizations Contractors Performance Evaluation System Civic Society Organization Civil Service Commission Department of Budget and Management Department of Budget and Management-Procurement Service Department of Education Department of Education .Procurement Service Department of Finance Executive Order Foreign Assisted Projects Financial Management Information System Financial Management System General Appropriations Act General Conditions of Contract Government Financial Institution Government-Owned or Controlled Corporation Government of the Philippines Generic Procurement Manual Government Procurement Policy Board Government Procurement Policy Board – Technical Support Office Government Procurement Reform Act Head of Procuring Entity Highest Rated Bid Highest Rated and Responsive Bid Invitation to Apply for Eligibility and to Bid DepED Guidelines on Establishing Procurement Systems and Organizations .Page iii ABBREVIATIONS AND ACRONYMS ABC ABM ADB AFP AFS APP BAC BSP CAF CIAP CIF COA COFILCO CPES CSO CSC DBM DBM-PS/ PS-DBM DepED DepED-PS/ PS-DepED DOF E.
Page iv ICB ICT ICTU IFIs IMCS IRR-A ITB ITR JVA JBIC LC LCB LCB LCRB LGU LOI MOOE NCAP NCB NEDA NFCC NGA NGO NOA NOSCA NSO NTP OBR PA PBDs PCA PCAB PCCI PFSED PhilGEPS/ G-EPS PICE PICPA PL-SBP PMO PPAs PPMP International Competitive Bidding Information and Communications Technology Information and Communications Technology Unit International Financing Institutions Instructional Materials Council Secretariat Implementing Rules and Regulations A Instructions to Bidders Income Tax Return Joint Venture Agreement Japan Bank for International Cooperation Letter of Credit Local Competitive Bidding Lowest Calculated Bid Lowest Calculated and Responsive Bid Local Government Unit Letter of Intent Maintenance and Other Operating Expenses National Constructors Association of the Philippines National Competitive Bidding National Economic Development Authority Net Financial Contracting Capacity National Government Agency Non-Government Organization Notice of Award Notice of Staffing and Compensation Allocation National Statistics Office Notice to Proceed Obligation Request Professionals’ Association Philippine Bidding Documents Philippine Constructors Association Philippine Contractors Accreditation Board Philippine Chamber of Commerce and Industry Physical Facilities and Schools Engineering Division Philippine Government Electronic Procurement System Philippine Institute of Civil Engineers Philippine Institute of Certified Public Accountants Principal-Led School Building Program Project Management Office Programs. Projects and Activities Project Procurement Management Plan DepED Guidelines on Establishing Procurement Systems and Organizations .
A.A. otherwise known as the “Government Procurement Reform Act” RFP RFQ SBD SCC SEC SOW SUCs SWA TOR TS TSD/PSPS-TSD TSO TWG WB WFP Request for Proposal Request for Quotation Standard Bidding Documents Special Conditions of Contract Securities and Exchange Commission Scope of Work State Universities and Colleges Statement of Work Accomplished Terms of Reference Technical Specifications Technical Support Division – Procurement Service Technical Support Office Technical Working Group World Bank Work and Financial Plan DepED Guidelines on Establishing Procurement Systems and Organizations .Page v PRC PS PTCA R. R. 9184. 9184 Professional Regulation Commission Procurement Service Parents-Teachers Community Association Republic Act Republic Act No.
4 SECTION 1 General Provisions .
it may be modified subject to the approval of the GPPB.A. This Manual aims to standardize the procurement process. in effect preventing confusion. ensure its applicability to existing conditions. Any such revisions must be approved by the GPPB and must be consistent with existing procurement laws.A. Likewise.Page 6 Legal Basis for the Procurement Manual Legal Reference IRR-A Section 6 provides for the legal basis for this Procurement Manual. The section provides for the development of generic procurement manuals and standard bidding forms that all Procuring Entities must use. regulations. DepED Guidelines on Establishing Procurement Systems and Organizations . The GPPB will review this Manual periodically. and whenever necessary. 9184. In case of an inconsistency or conflict between this Manual and R. otherwise known as the “Government Procurement Reform Act” (GPRA) and it’s IRR-A. However. whenever necessary to suit the particular needs of the Procuring Entity. Procuring Entities may submit to the GPPB its recommendations for specific revisions to the Manual. once issued. the provisions of the Generic Procurement Manual (GPM) prescribed by the GPPB may be given suppletory application when so warranted. 9184 and/or its IRR-A. ensuring transparency. the latter shall govern. and policies. The Government Procurement Manual was developed pursuant to R. and enabling procuring entities to conform to the principles that govern all government procurement activities. rules.
regardless of source of funds. In view of the above and in due regard to the harmonization efforts among GOP. Scope. provided that in the absence of such procurement guidelines. schools. 4. division offices. scope and application of the Procurement Manual. WB. and Manuscripts This Manual shall be used together with the PBDs prescribed by the GPPB. infrastructure projects. its regional offices.A. and the leasing out of government-owned buildings or spaces for private use.A. Coverage This Manual shall be used by Department of Education (DepED) procuring entities in the Central Office. 9184 and its IRR-A will apply suppletorily. the manuals shall apply to foreign-assisted projects as well. consulting services and manuscripts. 9184 shall apply to the procurement of goods. such as the build-operate-transfer scheme and its variants. For application of procurement methods needed to address peculiar situations.A. Unless otherwise indicated herein. and 5 provide the legal reference for the coverage. and JBIC. then the procurement processes and procedures provided in R. DepED Guidelines on Establishing Procurement Systems and Organizations . 3. agencies are advised to consult the GPPB. However. whether local or foreign. and Application Legal Reference IRR-A Sections 1. ADB. Scope The provisions of R. Goods and Services. or if the guidelines provided are silent on specific procurement procedures. This Manual does not cover private sector infrastructure or development projects. procurements funded partly or fully by IFIs shall follow the procedures specified under the loan or grant agreement. 4. and attached agencies/offices authorized to conduct procurement activities. this Manual will not only cover R. this Manual does not cover the acquisition of right-of-way site or location for infrastructure projects. 2.Page 7 Coverage. but the harmonized procedures found in the PBDs as well. Infrastructure Projects. Consulting Services. Likewise. 9184 and its IRR-A. Application The procurement procedures provided in this Manual shall apply to the following: 1.
9184. effective. and the private parties that deal with government are. Hence. The procurement process must be simple and made adaptable to advances in modern technology in order to ensure an effective and efficient method. The GPPB conducts a periodic review of government procurement procedures. 9184 and it’s IRR-A. Procuring Entities shall consistently follow the procedures prescribed in this Manual. DepED Guidelines on Establishing Procurement Systems and Organizations . 2) Competitiveness Public procurement must be competitive and. with the end in view of guaranteeing that these contracts are awarded pursuant to the provisions of the R. and religious groups are allowed to observe and monitor the procurement process and contract implementation. posting in the Procuring Entity’s website. Procuring entities must ensure the widest dissemination of bid opportunities and the participation of pertinent non-government organizations. 3) Streamlining and use of technology in procurement A streamlined procurement process that will uniformly apply to all government procurement must be adopted. except as otherwise provided for under the GPRA. the alternative methods of procurement must only be resorted to when competitive bidding is not a feasible option. its IRR-A and this Manual.A.A.Page 8 Principles of Government Procurement Legal Reference IRR-A Section 3 provides the legal reference for the principles of government procurement. and whenever necessary. thereby ensuring that no single bidder significantly influences the outcome of the bidding. and in a conspicuous place within the premises of the Procuring Entity is required for all procurements. Towards this end. In relation to this. and efficient procurement system in their respective agencies. Thus. 9184. each procurement transaction must be properly documented and such records must be maintained and made available to proper parties. The responsibilities of each official involved in the procurement process must be clear and legally identifiable. 5) Public Monitoring Public monitoring of the procurement process and the implementation of awarded contracts are provided for in R. To fully abide by these principles. Finally. investigated and held liable for their actions relative thereto. PAs. formulates and implements changes thereto. A system of reporting to the GPPB is provided for.A. in accordance with the conditions laid down in R. as a rule. A competitive bidding process treats bidders equitably and provides fair grounds for competition among themselves. be conducted through public bidding. academic institutions. in the PhilGEPS website. and that all these contracts are performed strictly according to specifications. Government procurement shall be governed by the following principles: 1) Transparency The procurement process and the implementation of procurement contracts must be transparent. Moreover. the BAC of the Procuring Entity is required to invite observers coming from eligible and qualified PAs and NGOs/CSOs to observe any or all stages of the procurement process. while eligible and qualified CSOs such as NGOs. Competition among proponents will urge them to offer more beneficial terms to the government. when warranted by circumstances. 4) Accountability A system of accountability must be established. its IRR-A and this Manual. the heads of the procuring entities are responsible for establishing and maintaining a transparent. in addition to the COA representative. both the public officials directly or indirectly involved in the procurement process as well as in the implementation of procurement contracts.
SECTION 2 Procurement Organizations .
Page 11 DepED Guidelines on Establishing Procurement Systems and Organizations .
c. the procurement function is centralized in the Central Office unless the Secretary of Education issues a directive delegating such authority to procure to its regional. or If. separate BACs may be created under any of the following conditions: a. and 14 provide for the legal reference for the organizational structure. b. division. Schools1. geographical location of the End-user units/PMO of the Procuring Entity. Regional Offices. Thus. headed by the Regional Director. It may be unnecessary to create a separate BAC if the reason is due to complexity of the procurement. headed by the Schools Division Superintendent. infrastructure projects. the single BAC cannot manage the procurement transactions as shown by delays beyond the allowable limits. However. b. schools and other attached agencies/offices. The Bids and Awards Committee (BAC) The Head of the Procuring Entity (HOPE) must create a single BAC in the Head Office of the Procuring Entity. III. II. 13. headed by the School Principal/School Head. Division Offices. Central Office. The BAC Members 1 Schools with fiscal autonomy – with permanent positions for bookkeeper and disbursing officer and own books of accounts DepED Guidelines on Establishing Procurement Systems and Organizations . The items to be procured are complex or specialized. textbooks. the authority to procure independently of the central office must not be presumed. b.Page 12 The Organizational Structure Legal Reference IRR-A Sections 5(q). I. The Procuring Entity The Procuring Entities in DepED shall be the following: a. headed by a Director or its equivalent However. The rule that requires the designation of provisional members (technical and end-user unit representative) is already responsive to the requirement of having a separate BAC for procurements that are complex in nature. a Procuring Entity may have separate BACs in its regional or decentralized offices (when warranted according to the above conditions) and/or separate BACs in the Central Office to handle procurements of ICT resources. headed by the Secretary of Education. even after undergoing “jury duty”. The separate BACs may be organized according to: a. d. However. e. the HOPE must limit the creation of separate BACs in order to facilitate professionalization and harmonization of procedures and standards. and Attached agencies/offices. 11. and other specialized procurements. As a rule. or nature of procurement.
three (3) must be regular members. In case of leave or DepED Guidelines on Establishing Procurement Systems and Organizations . Of the five (5) members. who holds at least a fifth ranking permanent plantilla position. The replacement shall serve for the unexpired term. 3. to the extent possible. It should be noted that the designation of an alternate BAC member is not provided for by R. the ICT will participate in BAC deliberations. b) A representative from the end-user unit who has knowledge of procurement laws and procedures and/or knowledge of the technical aspects of the procurement at hand. and identify the relevant technical experts. 5. re-assignment. to the extent possible. represents the finance area of the Procuring Entity. retirement. experience and/or expertise in procurement who. 4. In designating the provisional members. transfer. experience and/or expertise in procurement who. 9184 and its IRR-A. and two (2) must be provisional members. reckoned from the date of designation. separation. 9184. the HOPE may designate a replacement. b) An officer. who shall be similarly qualified as the official replacement. or one (1) additional regular and one (1) additional provisional member. who shall also be designated as the Chairman. Provisional members representing the end-user unit will only participate in the deliberations of the BAC for procurements over which they have a direct interest.A. the HOPE may renew such designation at his discretion.Page 13 The HOPE must designate the Members of the BAC in accordance with the following rules: a. or two (2) additional provisional members. and shall have the required ranking as provided for in R. who holds at least a fifth ranking permanent plantilla position. In case of resignation. CENTRAL OFFICE 1. Should the HOPE desire to create a seven (7) member BAC. who has technical expertise relevant to the procurement at hand. The BAC must consist of at least five (5) members and not exceed seven (7). The provisional members are: a) An officer. with knowledge. who is at least a third-ranking permanent official of the Procuring Entity. The BAC members must be designated for a term of one (1) year only. with knowledge. he is required to designate the Vice-Chairman from the remaining regular members. For example. who has knowledge. The HOPE is required to designate the BAC Chairman. the technical member should be an officer of the General Services Division. represents the legal or administrative area of the Procuring Entity. The regular members are: a) An officer. The Chairman and Vice-Chairman must be regular members of the BAC. c) An officer. in procuring janitorial services. or removal of a BAC member. 2. Likewise. However.A. the HOPE shall consider the types of procurement normally undertaken by them. he/she may designate two (2) additional regular members. and that BAC representatives are not counted for purposes of determining quorum. experience and/or expertise in procurement. For example. in the procurement of computers.
The HOPE may suspend or remove a member of the BAC for justifiable causes. DIVISION OFFICES. The regular members are: a) An officer. REGIONAL OFFICES. (COA Circular No. has knowledge. who is at least a third-ranking permanent official of the Procuring Entity. 2 To maintain check and balance among officials who approve procurement transactions and contracts. to the extent possible. unless the Accounting Department is the End-user unit. 2003) 8. who holds at least a third ranking permanent plantilla position. c) An officer. with knowledge. The provisional members are: a) An officer who has technical expertise relevant to the procurement at hand. including. experience and/or expertise in procurement who represents the finance area of the Procuring Entity. b) An officer. The HOPE should consider the following factors in selecting the personnel who will be designated as BAC Members: a) Integrity. and the two (2) must be provisional members. b. 2003-004 dated July 30. c) Chief Accountant/Head of the Accounting Department and his/her staff. 6. experience and/or expertise in procurement who represents the legal or administrative area of the Procuring Entity. as shown by experience and trainings attended. experience and/or expertise in procurement. The following officers of the Procuring Entity are disqualified from membership in the BAC: a) HOPE b) Official who approves procurement contracts2. who holds at least a third ranking permanent plantilla position. It is necessary to ensure that the procurement and approving functions are segregated in keeping with the rules and principles of good internal control and to avert the possibility of conflict of interest that may arise under the circumstances. in which case. Should the HOPE desire to create a seven (7) member BAC.A. or one (1) additional regular and one (1) additional provisional member. 9184 or its IRR-A. who shall be designated as the Chairman. or two (2) additional provisional members. Of the five (5) members. three (3) must be regular members. The BAC must consist of at least five (5) members and not exceed seven (7). and. b) Procurement proficiency. and c) Satisfactory completion in a certification program conducted by the GPPB-TSO or its accredited institutions.Page 14 suspension. with knowledge. SCHOOLS. violations of the provisions of R. they may be designated as an End-user member. he/she may designate two (2) additional regular members. the replacement shall serve only for the duration of the leave or suspension. 7. if any. AND OTHER ATTACHED AGENCIES/OFFICES: 1. but not limited to. DepED Guidelines on Establishing Procurement Systems and Organizations .
Schools. headed by a Director. the HOPE may renew such designation at his discretion. violations of the provisions of the R. and is not an appointment contemplated under the Civil Service rules. who shall be similarly qualified as the official replaced. c) the Region/Division Accountant and his/her staff Bookkeeper. in addition to the regular duties of the subject official. including. and the Technical Support Division (TSD) which performs DepED Guidelines on Establishing Procurement Systems and Organizations . Division Offices. transfer. a. The BAC members shall be designated for a term of one (1) year only. 3. 7. and other Attached Agencies/Offices. In DepED. Heads of Procuring Entities are encouraged to re-appoint BAC members who have shown efficiency and probity in the performance of their duties. 2. The HOPE may suspend or remove a member of the BAC for justifiable causes. these offices shall refer to the Procurement Service for the Central Office. unless the Accounting Division/Unit is the end-user.A. the replacement shall serve only for the duration of the leave or suspension. Having a technical expert in the BAC is also helpful. The Procurement Service.Page 15 b) A representative from the end user unit who has knowledge of procurement laws and procedures and/or knowledge of the technical aspects of the procurement at hand. re-assignment. 9184 or its IRR-A. IV. and may likewise designate the Vice-Chairman from the remaining regular members. is an organic office in the DepED Central Office comprised of the BAC Secretariat Division which performs BAC Secretariat functions. The HOPE shall designate the BAC Chairman. 6. The following officers of the Procuring Entity are disqualified from membership in the BAC: a) the Head of Regions. Divisions. and the BAC Secretariat The term “Procurement Unit” shall refer to the office of the Procuring Entity that carries out the procurement function. in which case they may be designated as an end-user member. The size of the unit and the number of personnel are dictated by the volume of. However. if available. In case of leave or suspension. In accordance with the thrust to professionalize the procurement organization. in the BAC. In case of resignation. The replacement shall serve for the unexpired term. 4. and BAC Secretariat at the Regional Offices. It is noted that appointment to the BAC is in the nature of a designation. 5. Schools and other Attached Agencies/Offices. separation. retirement. the HOPE may designate a replacement. or removal of a BAC member. but not limited to. It is a good practice to always have a legal officer or a lawyer. The Chairman and Vice-Chairman shall be regular members of the BAC. Procurement Service The Procurement Service. reckoned from the date of designation. and is thus recommended. He can provide the legal direction especially in procurements where contentious issues surface. b) the official who approves procurement contracts. and the level of expertise required in the procurement transactions.
Page 16 other procurement functions as specified in this manual. etc. as provided in this Manual. financial and/or legal experts to assist in the procurement process. c. division offices. and procurement personnel are not given assignments that may conflict with their designation as such. accountants or finance experts to handle the financial aspect of the procurement. in regional offices. and the bids submitted will be rigorously evaluated. At least a fifth ranking permanent employee. The said Unit shall be strengthened through continuing procurement training and education of the staff and deployment of additional personnel. for example: 1. The Technical Working Group (TWG) a. or 3. It is recommended that the TWG should have as members. The HOPE should consider the following factors in selecting the personnel who will be assigned/ designated to the BAC Secretariat: a. the project management aspects. At least a third ranking permanent employee. division offices. as shown by experience and trainings attended. Satisfactory completion in a certification program conducted by the GPPB-TSO or its accredited institutions. if any. e. and other attached agencies/offices duly authorized to conduct procurement activities. or 2. namely. BAC Secretariat In regional offices. In designating members of the Procurement Unit. in certain cases. a representative/s of the End-user unit and experts in various disciplines who can handle the different aspects of the procurement at hand. The appropriate rank of the head of the BAC Secretariat. legal and. Procurement proficiency. A permanent official of the next lower rank. d. schools. Both divisions shall ensure continuity and professionalization of the procurement function. architects. financial. b. b. the Procurement Unit shall refer to the BAC Secretariat. the BAC may create several TWGs to handle different procurements. Integrity. b. c. the HOPE must ensure that check and balance is maintained. which should be: 1. schools. and other attached agencies/offices. the technical. TWG for Infrastructure Projects. V. The HOPE shall ensure that the Procurement Unit will have a sufficient number of personnel who will provide secretariat support to the BAC and will perform other functions of the Procurement Unit. if necessary. whose membership shall include experts in civil works like civil engineers.. in Central. The BAC may create a TWG from a pool of technical. To be able to effectively study the requirements and evaluate the bids submitted. In creating the TWG. The presence of the End-user representative and the above-named experts will ensure that the bid documents properly reflect the requirements of the Procuring Entity. DepED Guidelines on Establishing Procurement Systems and Organizations . The appropriate Civil Service qualification standards. if the fifth or third ranking permanent employee is not available. the BAC shall consider the expertise required based on the nature of the procurement.
2. TWG for ICT Projects, whose membership shall include experts in ICT like computer engineers, systems analysts, programmers, etc.; and 3. The BAC may also create a TWG for a specific procurement, particularly if the procurement at hand is highly technical or is a major or priority project of the government. d. In highly meritorious cases, the Procuring Entity may also engage the services of consultants in accordance with the IRR-A and Volume 4 of this Manual, subject to the availability of funds, who will assist the TWG and the BAC on the procurement at hand. For this purpose, the HOPE shall certify that the in-house experts cannot provide adequate technical, financial, legal or project or contract management advice related to the procurement. These consultants, however, shall only have an advisory capacity, and may not vote during deliberations.
VI. The Observers
To enhance the transparency of the process, the BAC is required to invite observers who may attend and observe all stages of the procurement, especially: a. b. c. d. e. f. g. pre-bid conference; opening of bids; bid evaluation; post-qualification; contract award; special meetings of the BAC; contract implementation; and
h. delivery and acceptance stages The Procuring Entity has the option to invite observers during the preprocurement conference A. Criteria for Observers: In accordance with Section 13.2 of the IRR-A, the observers coming from the private sector (e.g., organization of experts and NGOs) should belong to an organization duly registered with the SEC. Moreover, they should meet the following criteria: 1. Private Sector. i. The private sector observer should be a duly registered business entity (as evidenced by a business permit) within the area where the contract is being implemented; OR It is the area chapter of a national association or organization in a sector or discipline relevant to the contract being implemented [e.g. for school buildings, a chapter of the Philippine Constructors Association (PCA), National Constructors Association of the Philippines (NCAP), etc.], or a local industry association or federation relevant to the contract being implemented; ii.
The private sector observer should not have any pecuniary or
monetary interest in the contract as a sub-contractor, supplier, forwarder/transporter, losing bidder/s;
iii. The private sector observer should not belong to the immediate
family or related up to the third degree of consanguinity to the contractor, subcontractor, supplier, forwarder/transporter, or losing bidder/s. They should not be associated to the constructor, subcontractor, supplier, forwarder/transporter, or losing bidder/s in a way that would compromise their objectivity;
DepED Guidelines on Establishing Procurement Systems and Organizations
iv. The private sector observer should have knowledge or expertise
in the subject matter of the contract being implemented; v. Any other criteria that may be determined by the BAC (for example, the BAC in decentralized units may require that the observers should be based in the area to ensure their attendance during the meetings.) 2. NGO i.
or civil observer should be a duly accredited organization (accredited by the Sanggunian: barangay, municipality, city, province); or SEC registered organization operating within the geographical location (barangay, municipality, city, province) where the project is being implemented; OR It is the chapter of a national or local association with a major stake in the efficiency and quality implementation of the contract [e.g. Parents-Teachers Community Association (PTCA), Girl and Boy Scouts of the Philippines]; OR It is a duly recognized and legitimate school-based or youth organization (e.g. High School Student Council, Member/staff of the School Paper Editorial Board, Junior Graftwatch, etc.)
The NGO observer should not have any pecuniary or monetary
interest in the contract as a sub-contractor, forwarder/transporter, losing bidder/s; supplier,
The NGO observer should not belong to the immediate family or related up to the third degree of consanguinity to the constructor, subcontractor, supplier, forwarder/transporter, or losing bidder/s. They should not be associated to the constructor, subcontractor, supplier, forwarder/transporter, or losing bidder/s in a way that would compromise their objectivity;
iv. The NGO observer should have knowledge or expertise in the
subject matter of the contract being implemented.
B. Who are the Observers?
The BAC must invite four (4) observers, who shall be: 1. 2.
A COA representative; At least one (1) observer who shall come from a duly recognized private group in a sector or discipline relevant to the procurement at hand, for example:
i. For Goods A specific relevant chamber-member of the PCCI. ii. For Infrastructure Projects 1. National Constructors Association duly recognized by the CIAP, such as, but not limited to, the PCA; and the NCAP; or 2. The PICE
DepED Guidelines on Establishing Procurement Systems and Organizations
iii. For Consulting Services 1. a project-related professional organization accredited or duly recognized by the PRC or the Supreme Court, such as, but not limited to, the PICE; and the PICPA; or 2. the COFILCO 3. At least one (1) observer who shall come from an NGO
DepED Guidelines on Establishing Procurement Systems and Organizations
Roles and Responsibilities
IRR-A Sections 12, 13 and 14, DBM Notice of Staffing and Compensation Allocation (NOSCA) dated December 23, 2003 duly approved by DBM Secretary, Emilia T. Boncodin, and Republic Act No. 9155 dated August 11, 2001, an Act Instituting a Framework of Governance for Basic Education, Establishing Authority and Accountability, Renaming the Department of Education, Culture and Sports as the Department of Education, and for Other Purposes, provide the legal reference for the roles and responsibilities. I.
The HOPE, or his duly authorized representative, shall have the following responsibilities in the procurement process: a. Ensure that the Annual Procurement Plan (APP) consolidated by the BAC Secretariat based on the Project Procurement Management Plans (PPMPs) be prepared, reviewed and updated by the End-user units, in accordance with the guidelines set forth herein. He/she must also approve the same, or delegate the approval authority to a second-ranking official. He/she must ensure that all procurements are in line with the APP. Establish the BAC and the Procurement Service/BAC Secretariat (Field Offices) in accordance with the guidelines previously discussed. Upon submission by the BAC of the recommendation for award, the HOPE or his/her representative must approve the same. He/she may, however, disapprove the recommendation but only on the basis of valid, reasonable and justifiable grounds to be expressed in writing, and furnished to the BAC. Ensure that the BAC, the Procurement Service/BAC Secretariat (Field Offices), and the TWG, if any, give utmost priority (Jury Duty) to BAC assignments over all other duties and responsibilities, until the requirements for the said assignments at hand are completed (IRR-A Section 14.3). Ensure that the staff of the Procurement Service/BAC Secretariat (Field Offices), the members of the BAC and the TWG are given ample training on procurement and related matters, with the end in view of professionalizing the procurement organization of the Procuring Entity. Impose the necessary administrative sanctions on errant members of the Procurement Service and/or BAC Secretariat, the members of the BAC and the TWG as well as the PMO/End-user unit/s in accordance with Section 70 of the IRRA. Ensure that the members of the Procurement Service/BAC Secretariat (Field Offices), the members of the BAC and the TWG shall receive their incentives.
Under Sections 37 and 38 of R.A. 9184, in cases where the HOPE is required to approve specific contracts, he shall ensure that the same are approved within the time frame indicated in the IRR-A, that is, within 15 calendar days from receipt of the transmittal to his office. However, for infrastructure projects with an ABC of fifty (50) million and below, the maximum period is five (5) calendar days (GPPB Resolution No. 014-2006 dated July 20, 2006). The BAC Secretariat, in coordination with the Internal Audit Unit of the agency, once created, shall ensure that the contract is acted upon by the HOPE within the reglementary period. Otherwise, such contract shall be deemed approved.
DepED Guidelines on Establishing Procurement Systems and Organizations
Create the TWG. and the TSD.A. The certifications / documents showing technical expertise and procurement proficiency should be issued by appropriate bodies and authenticated by the latter. Invite the Observers required by law to be present during all stages of the procurement process. 9184. Determine the eligibility of prospective bidders in accordance with the guidelines set forth in R. 16. Responsibilities of the BAC The following shall be the responsibilities of the BAC: 1. accomplish a checklist showing its compliance with R. DepED Guidelines on Establishing Procurement Systems and Organizations . 9184 and its IRR-A. when no TWG is created. whether to use public bidding or any of the alternative methods of procurement. when no TWG is created. 5. and the TSD. financial and/or legal experts to assist in the procurement process. Conduct the evaluation of bids with the assistance of the TWG. c) Post-qualification summary report. Ensure that the invitation to bid is advertised and posted in accordance with the law. if any. Conduct due diligence review or verification of the qualifications of observers. Recommend to the HOPE the method of procurement of goods. Furnish the observers. Undertake post-qualification proceedings. 9. Recommend award of contracts to the HOPE or to its duly authorized second-ranking official. 2. i. Bids and Awards Committee (BAC) a. Act as the sole authority to receive and open bids. 14. its IRR-A and this Manual. 9184. Resolve motions for reconsideration filed by prospective bidders and other concerned parties with respect to the conduct of the bidding process.A. 7. 6. if necessary. 8. In performing this due diligence review or verification of the qualifications of observers. upon the latter’s request. Recommend the imposition of sanctions in accordance with Rule XXIII of the IRR-A. b) Abstract of bids. if any. and e) Copies of “opened” proposals.A. the BAC shall require the organization nominating the observer to submit their Curriculum Vitae and proof of their technical expertise and procurement proficiency. Verification may be done by the BAC by inquiring with the bodies that issued the same. with the assistance of the TWG. 12. Conduct pre-procurement and pre-bid conferences. in accordance with the guidelines stipulated in R. For each procurement transaction. 3. d) APP and related PPMPs. and infrastructure projects included in the APP. services. 13. 15.Page 21 II. This will be submitted to the HOPE and made a part of the transaction record.e. 10. 4. with the following documents: a) Minutes of the proceedings of BAC meetings. from a pool of technical. it’s IRR-A and this Manual. 11. Prepare a procurement monitoring report that shall be approved and submitted by the HOPE to the GPPB on a semestral basis or whenever required.
as the case may be. any of the alternative methods of procurement. b) Procure goods. The Presiding Officer shall vote only in case of a tie. The Chairman or. 9184 and its IRR. consulting services & manuscripts. Office of the Director 1. 9184. rules and regulations by bidders and end-users. General Functions: The Procurement Service (PS) at the Central Office shall be responsible for the provision of services related to the acquisition of goods. Provide general direction to and supervision of the operations of Procurement Service. d) Ensure compliance with R. It shall also provide efficient records management of procurement documents (NOSCA). including lease of goods and real estate. Perform such other related functions as may be necessary to the procurement process. and contract infrastructure projects. the Vice-Chairman shall preside over the meetings. 2. rules and regulations. or when necessary. as well as secretariat and support services to the BAC. policies. Gives utmost priority to BAC assignments over all other duties and responsibilities. g) Provide opportunities for the training of personnel so as to professionalize the Procurement Service. provided that the Chairman or the ViceChairman should be present in all meetings and deliberations. b.Page 22 17. a. Quorum The majority (any whole number higher than one-half of the membership) of the BAC members shall constitute a quorum. and other pertinent GPPB Resolutions. and the contracting for infrastructure projects. e) Maintain the procurement database and records management. the IRR and other relevant laws.) The representative/s of BAC members shall not be counted in determining a quorum of BAC meetings neither shall they be allowed to vote. c) Assist the BAC members in the bids and awards process. 9184 and other relevant laws. (Only the Chairman & Vice-Chairman shall preside BAC meetings. Specific Functions: a) Formulate plans. until the requirements for the procurement at hand are completed (Jury Duty). III. Procurement Service Responsibilities of the Procurement Service Procurement Service 1. Ensure that the Procuring Entity abides by the rules set forth in R. f) Liaise with the Government Procurement Policy Board (GPPB) Secretariat. h) Advise the Secretary of Education on procurement matters.A. consulting services & manuscripts. All BAC decisions should be embodied in resolutions signed by at least a majority of the members and the Chairman or Vice-Chairman thereof. in his absence.A. standards and guidelines pursuant to R. A. 18. through local and international competitive bidding. DepED Guidelines on Establishing Procurement Systems and Organizations .
9. Oversee the publication and/or posts invitation to bid. Perform other related functions. Monitor procurement-related transactions undertaken by the Regional Offices. d) Act as the central depository of all procurement related documents and continually update itself with the most current GPPB resolutions. 13. A. TSD and TWG. b) Attend BAC meetings as secretary. BAC. other units of the line agency. in the Bid Evaluation and Post-Qualification. 12. DepED Guidelines on Establishing Procurement Systems and Organizations . results. 4. 9184. Coordinate with the end–users. Prepare and submit periodic reports on the status of APP to end-users. Liaise with the GPPB and other Government Agencies. and downstream the same to all relevant officers. Assist the HOPE in the formulation of procurement policies. procurement reports. and other attached agencies/offices. 4. the IRR and other relevant laws. if necessary. employees. Consolidate the PPMPs of End-user units into an Annual Procurement Plan (APP) for DepED and ensure its proper implementation. Provide opportunities for the training of personnel. f) Create. pre-procurement and pre-bid conferences. g) Assist the BAC. Validate and finalize the bid documents submitted by end-users. and 6. and the general public. Administer the posting of procurement opportunities. Serve as secretariat and provide administrative services to BAC: a) Organize and make all necessary arrangements for the BAC meetings. Schools.Page 23 2. consultants and publishers. 11. issuances. constructors. 7. and bid openings as well as TWG meetings. circulars and events. Recommend to the BAC the creation of Technical Working Groups (TWGs). civil works. and other related information at PhilGEPS Bulletin Board and DepED Website in accordance with the provision in Executive Order 662. 10. b. consulting services & manuscripts. Maintain and regularly update the procurement tracking system for all procurement activities and milestones (on going procurements). Liaise with the PhilGEPS and PS-DBM in behalf of the Procuring Entity. other government agencies. 6. Undertake the sale and distribution of bidding documents to prospective bidders. and parties requiring information. Recommend to the BAC the imposition of sanctions in accordance with Rule XXIII of RA 9184. Division Offices. if any. providers of goods. maintain and regularly update the registry of suppliers. HOPE and GPPB. c) Prepare Minutes of the BAC meetings. 5. 5. Ensure compliance with R. 14. Assist end-users in the preparation of contracts. and Financial and Management Service for the payment of suppliers. 3. BAC Secretariat 1. 8. e) Act as the central channel of communications for the BAC with the End-user units/PMOs. 2. 3. rules and regulations by bidders and end-users.
and bid openings as well as TWG meetings. issuances. BAC Secretariat (Field Offices) 1. when required. b) Attend BAC meetings as secretary. 16. if necessary. circulars and events. and List of Blacklisted Entities. The TSD must provide utmost priority to BAC assignments over all other duties and responsibilities. 3. Perform other related functions. The BAC Secretariat must provide utmost priority to BAC assignments over all other duties and responsibilities. Assist in the conduct of procurement training programs. IV. List of Printers for Security Printing. Provide technical assistance. formulate standards and technical specifications of goods to be procured. 2. 8. and downstream the same to all relevant officers. d) Act as the central depository of all procurement related documents and continually update itself with the most current GPPB resolutions. pre-procurement and pre-bid conferences. 9. Together with the TWG. other DepED Guidelines on Establishing Procurement Systems and Organizations . Maintain an electronic archive of procurement documents. Perform other related functions. and TWGs of the Procuring Entities. 5. until the requirements for the procurement at hand are completed (Jury Duty). when no TWG is created. e) Act as the central channel of communications for the BAC with the End-user units/PMOs. Assist the BAC in the conduct of Bid Evaluation and Post-Qualification. until the requirements for the procurement at hand are completed (Jury Duty). services and works with the required technical specifications. to provide an audit trail of the procurement process. if any. c. and parties requiring information. such as but not limited to. Develop and design capacity building of the BACs. 7. rating system and document the 4. Develop supplier’s performance performance of suppliers. in undertaking market survey to determine the appropriateness of the budget estimates of goods. Technical Support Division 1. 6.Page 24 15. if and when necessary. Set up a procurement tracking system to monitor the status of every item bid out for proper reporting to relevant agencies and/or end-users. The BAC Secretariat shall ensure that all procurements undertaken by the Procuring Entity are properly documented. Serve as secretariat and provide administrative services to BAC a) Organize and make all necessary arrangements for the BAC meetings. employees. other units of the line agency. c) Prepare Minutes of the BAC meetings. Develop programs and activities towards strengthening the procurement functions to increase operational efficiency and effectiveness. Procurement Service and/or BAC Secretariat (Field Offices).
11. The BAC Secretariat shall ensure that all procurements undertaken by the Procuring Entity are properly documented. until the requirements for the procurement at hand are completed (Jury Duty). of the status of every item bid out and awarded. 4. the DepED . the IRR and other relevant laws. and the general public. Apprise. V. rules and regulations by bidders and end-users. consulting services & manuscripts. and other related information at PhilGEPS Bulletin Board and DepED Website in accordance with the provision in Executive Order 662. on semestral basis. Assist in the conduct of procurement training programs. 9184. 18. to the DepED . 7. 5. Perform other related functions. Maintain and regularly update the procurement tracking system for all procurement activities and milestones (on going procurements). legal and other aspects of the procurement at hand in the: DepED Guidelines on Establishing Procurement Systems and Organizations . Undertake the sale and distribution of bidding documents to prospective bidders. Technical Working Group (TWG) The TWG shall assist the BAC in terms of the technical. 17. on a semestral basis. Ensure compliance with R. civil works. 2.Procurement Service an electronic database of procurement-related information (i. Oversee the publication and/or posts invitation to bid. 6. Consolidate the PPMPs of End-user units into an Annual Procurement Plan (APP) for DepED and ensure its proper implementation. Liaise with the PhilGEPS and PS-DBM in behalf of the Procuring Entity. to provide an audit trail of the procurement process. HOPE and GPPB. providers of goods. 10. Monitor procurement activities and milestones for proper reporting to relevant agencies and/or end-users. PPMP. 14. Updates/Revisions of APP. 8. procurement reports. Prepare and submit periodic reports on the status of APP to end-users. results. 15. 9. Assist the BAC in preparing BAC resolutions and contracts. Validate and finalize the bid documents submitted by end-users.Page 25 government agencies. g) Assist the BAC and TWG. The BAC Secretariat must provide utmost priority to BAC assignments over all other duties and responsibilities.Procurement Service. maintain and regularly update the registry of suppliers. 13. and Financial and Management Service for the payment of suppliers. f) Create. if any. 12. Recommend to the BAC the imposition of sanctions in accordance with Rule XXIII of RA 9184. 3. 19. BAC. Contract Monitoring Sheet). Recommend to the BAC the creation of Technical Working Groups (TWGs). and consultants. in the Bid Evaluation and PostQualification. Submit. A. Coordinate with the end–users. constructors. 16. financial.e. when required. Administer the posting of procurement opportunities.
9184.Page 26 a. until the requirements for the procurement at hand are completed (Jury Duty). The report shall be submitted to the HOPE. Preparation of the bidding documents. b. Abstract of bids. When there are substantive or procedural irregularities in the procurement at hand. Post-qualification summary report. Together with the end-users. Minutes of related proceedings of BAC meetings. The observer may also give a copy of the Report to the Office of the Ombudsman or the Resident Ombudsman and the COA Auditor of the Procuring Entity in any of the following instances: a) when the BAC has failed to follow the prescribed bidding procedures. review the technical specifications and market price of goods and services. The observers shall have the following responsibilities: a. c. and the short listing of prospective bidders in case of biddings for consulting services. The areas of improvement in the BAC’s proceedings. In instances where the BAC has fully complied with R. Evaluation of bids and preparation of the accompanying reports for the BAC’s consideration and approval. indicating their observations made on the bidding activity conducted by the BAC. who shall forward it to the BAC Secretariat for inclusion in the procurement documents that will be submitted to the proper authorities for approval. An assessment of the extent of the BAC’s compliance with the substantive and procedural requirements of R. g.A.A. its IRR-A and this Manual. For the purpose of preparing the report. 9184. Preparation of the Procurement Observation Report either jointly or separately. Gives utmost priority to BAC assignments over all other duties and responsibilities. Conduct of eligibility screening of prospective bidders. the taxpayers who are interested in seeing to it that procurement laws are observed and irregularities are averted. Assist the end-users. Perform other related functions as may be assigned. Observers The attendance of observers ensures the transparency of the procurement process. 3. 2.A. e. in inspecting delivered goods and services to ensure compliance with the technical specifications. if necessary. and a copy thereof will be furnished to the BAC Chairman. 2. The said report shall indicate the following: 1. civil works. 9184. the Report shall provide therein details of the alleged irregularity. They represent the public. This will be part of the official record of the bidding. or b) for any justifiable and reasonable ground where the award of the contract will not redound to the benefit of the Government. and part of the audit trail. Conduct of post-qualification activities . 4. the observer may request for copies of the following documents from the BAC. which shall be promptly provided to the observer: 1. the observers shall prepare a Procurement Observation Report. its IRR-A and this Manual. f. b. its IRR-A and the PBDs prescribed by the GPPB. VI. and DepED Guidelines on Establishing Procurement Systems and Organizations . Pertinent portions of the APP and related PPMPs. d. ensuring that the same properly reflects the requirements of the Procuring Entity and that these conform to the standards set forth by R. and consulting services to be procured.
in their independent observation. he shall so state in writing addressed to the BAC Chairman. If the observer finds the post-qualification procedures irregular or the report does not match the actual findings. for consideration. c. This will enable the approving authority to be apprised of any irregularities in the bidding process. DepED Guidelines on Establishing Procurement Systems and Organizations .A. The observer must sign as witness in the Abstract of Bids if. and that the observer is amenable to the results of the post-qualification. 9184 and this Manual. the observer must sign the Abstract of Bids. 9184 and this Manual. the bidding process was conducted in accordance with the procedures described in the IRR-A of R. The above described irregularities observed during the bidding process shall not delay the bidding. Copies of “opened” proposals. and must indicate in the Procurement Observation Report the procedural and/or substantive lapses of the BAC. the BAC followed the procedure described in the IRR-A of R. in their independent observation. d.A. but should be resolved before contract award. If the BAC failed to correctly observe the proper procedure.Page 27 5. and the same shall be attached to the Post-qualification Summary Report submitted to the approving authority. The observers shall sign as witness in the post-qualification summary report if. The observer’s written dissent will be part of the official record of the procurement.
2. whereby the Procuring Entity directly negotiates with previous supplier. 2004-5A dated October 7. 2. 4. provided: 1. or when the project is undertaken by administration. 3. 3. Among others. the amount so granted does not exceed twenty-five percent (25%) of their respective basic monthly salary. DepED Guidelines on Establishing Procurement Systems and Organizations . Budget Circular No. and the grant of honoraria conforms to the guidelines promulgated by the DBM. Furthermore. and Negotiated procurement under Section 53 (b) of the IRR-A following the procedures under Section 54. detailed. Competitive bidding activities are present only in: a. The payment of honoraria shall be limited to procurement that involves competitive bidding. Negotiated procurement under Section 53 (b) of the IRR-A following the procedures under Section 54. Repeat order. funds are available for the purpose. Direct contracting. e. a procurement project shall be considered successfully completed once the contract has been awarded to the winning bidder.2 (b) thereof. in case of infrastructure projects. scheduled and budgeted for in the PPMP prepared by the agency. subject to the same regulations. c. The Procuring Entity is authorized to grant honoraria to the members of the BAC and the TWG. where there has been failure of bidding for the second time. Limited source bidding. b. this Circular provides the following: 1. The Chair and members of the BAC and the TWG may be paid honoraria only for successfully completed procurement projects. described. a procurement project refers to the entire project identified. Open and competitive bidding. c. constructor or consultant. 2005 issued by the DBM provides the guidelines on the grant of honoraria to government personnel involved in government procurement. Negotiated procurement under Section 53 (a) of the IRR-A. To be entitled to honoraria. b. The members of the BAC Secretariat who are performing the attendant functions in addition to their regular duties in other non-procurement units of the agency may likewise be paid honoraria at the same rate as the TWG chair and members. honoraria will not be paid when procurement is thru: a. and Negotiated procurement under Section 53 (c) to (g) of the IRR-A. In accordance with Section 7 of the IRR-A of R.Page 28 Conditions for Granting Honoraria Legal Reference IRR-A Section 15 provides the legal reference for the conditions for granting honoraria. Shopping. whereby the Procuring Entity shall draw up a list of at least (3) suppliers or contractors which will be invited to submit bids. Conversely.2 (d) thereof.A. personnel should be duly assigned as chair or member of the BAC or the TWG by the head of the department/agency concerned. d. d. 9184.
programs and services at lesser cost. 9. activity or purpose for which the appropriation is authorized. the payment of overtime services may be allowed for the administrative staff. Any excess in the amount collected shall be remitted by NGAs to the Bureau of the Treasury. all agencies are authorized to treat the collections from the sources identified above as trust receipts to be used exclusively for the payment of honoraria and overtime pay duly authorized. 2005-2 dated June 2005. such as clerks. The manner of payment of honoraria and overtime pay to entitled government personnel to be charged against collections from successfully completed procurement projects (activities prior to awarding of contracts to winning bidders) enumerated under item 7. 2007. Under Budget Circular No. Savings refer to portions or balances of agencies’ budgets as referred to in item (b). subject to existing policy on the matter. except use of savings by DepED Central Office which shall follow the General Provision of the GAA on the disbursement of funds. messengers and drivers supporting the BAC. and c) realized from the implementation of collective negotiation agreements which resulted in improved systems and efficiencies and thus enabled an agency to meet and deliver the required or planned targets. to activities prior to awarding of contracts to winning bidders: 1) Proceeds from sale of bidding documents. for procurement activities rendered in excess of official working hours. priority shall be given to augmentation of the amounts set aside for mandatory expenditure items provided under the General Provisions of the GAA. 11.Page 29 The members of the BAC Secretariat whose positions are in the Procurement Unit of the agency shall not be entitled to honoraria. 2007-3 dated November 29. The payment of overtime services may be allowed. 4) Protest fees. i. In the use of savings. The payment of overtime services shall be in accordance with the existing policy on the matter. the TWG and the Secretariat. 7. It is understood that the use of agency savings for payment of honoraria and overtime pay for procurement activities shall be made only after satisfying said mandatory expenditure items. 3) Fees charged for copies of minutes of bid openings. b) Savings realized from the current year specific budget of the agency under the General Appropriations Act (GAA) 8. through the National Treasury and/or authorized servicing banks under the Modified Disbursing Scheme. Agencies may utilize up to one hundred percent (100%) of the said collections for the payment of honoraria and overtime pay subject to the guidelines in the Budget Circular.e. Pursuant to the DOF-DBM-COA Permanent Committee Resolution No. and 5) Proceeds from bid/performance security forfeiture.a and savings cited under item 8 shall be in accordance with item 11 of this guidelines. b) arising from unpaid compensation and related costs pertaining to vacant positions and leaves of absences without pay. 2) Fees from contractor/supplier registry. DepED Guidelines on Establishing Procurement Systems and Organizations . 10. In lieu of honoraria. free from any obligation or encumbrance which are: a) still available after the completion or final discontinuance or abandonment of the work. 5. Those who are receiving honoraria for their participation in procurement activities shall no longer be entitled to overtime pay for procurement-related services rendered in excess of official working hours. 6. BAC resolutions and other BAC documents. however. the amount necessary for the payment of the honoraria and overtime pay authorized herein shall be sourced only from the following: a) Collections from successfully completed procurement projects limited.
DepED Guidelines on Establishing Procurement Systems and Organizations . which provide the general conditions. procedures and funding source for free legal assistance.Page 30 Also see GPPB Resolution 21-2005 on the Guidelines for Legal Assistance and Indemnification of BAC Members and its Support Staff. liability insurance and medical assistance.
whether locally funded or foreign assisted. TWGs & End-User Units/PMOs. and whether pertaining to goods. Heads of Procuring Entities must aim to consolidate or unify all procurement activities of the organization. they ought to include provisions for such training in their annual budget proposals submitted to the DBM and Congress. subject to the provision of Section 11. Procurement Service/BAC Secretariat (Field Offices). which allows for the creation of several BACs.Page 31 of 86 Professionalization of the BAC. through its TSO. TWG Members and the Procurement Units of procuring entities. has established in cooperation with qualified organizations and institutions. It is the responsibility of the HOPE to ensure that all officials and employees involved in the procurement process will avail of the procurement training conducted by the GPPB and other GPPB accredited bodies offering the different modules on procurement-related training.ph for details) The Procuring Entities must also develop and implement their own in-house training programs in accordance with the guidelines and standards prescribed by the GPPB-TSO. the HOPE must regularly monitor the work quality of the procurement organization. TWGs & End-user units/PMOs Legal Reference IRR-A Section 16 provides the legal reference for the professionalization of the BAC. infrastructure projects or consulting services. through a review of the procurement monitoring reports regularly submitted by the BAC as mentioned previously in this Manual. a sustained training program to develop the capability of the BACs. DepED Guidelines on Establishing Procurement Systems and Organizations . In line with the standardization of the procurement procedures and the thrust towards strengthening the procurement function to increase operational efficiency and effectiveness. Procurement Service/BAC Secretariat (Field Offices). Moreover. including the development of plantilla positions for procurement officers.gppb. and professionalize the same. Management meetings may likewise be conducted for this purpose.gov. For this purpose. The professionalization program of the GPPB will address the continuing education needed to enhance the capacity and career path of procurement officers in government. The GPPB.1 of the IRR-A. (See www.
SECTION 3 Procurement Planning .
DepED Guidelines on Establishing Procurement Systems and Organizations .
the End-user units/PMOs shall finalize the PPMPs to reflect the budgetary allocation for their respective PPAs. (GPPB Resolution 011-2005 dated 26 May 2005) However. 2001) Plans could cover short-term.” (Merriam-Webster’s Collegiate Dictionary. They could be small-scale or large-scale. The Budget Office shall furnish a copy of the WFPs and proposed PPMPs to the BAC Secretariat for the consolidation of the initial list of items / projects for procurement into the proposed APP. and procedures for a social or economic unit. Through plans. upon issuance of the Budget Call by the DBM. In the context of budget preparation. Procurement planning should be done within this budgetary context.Page 34 PROCUREMENT PLANNING . if warranted. medium-term. or long-term periods. As soon as the GAA becomes final. Thus. the project and/or operational plans are reflected in the WFP for each PPA. These WFPs will be evaluated and. and delays in the entire activity that can be addressed or eliminated. it allows managers to determine how to allocate limited cash and other appropriate resources under a given time line and identify choke-points. 9184 and its IRR-A basically refers to the proposed budget for the project contained in the agency budget as reflected in the GAA or to be proposed in succeeding GAAs and approved by the HOPE. included in the Procuring Entity’s Budget Proposal. the ABC referred to in R. using forms provided by the DBM as annexes to the Budget Call. This is particularly true for procurement planning. Planning is the “act or process of making or carrying out plans. the Procuring Entity prepares the Agency Budget Proposal for the succeeding calendar year. which is a critical component of a Procuring Entity’s budget. Plans ensure that the overall goal of the particular project will be achieved effectively and efficiently. The WFP contains the initial list of projects/requirements of each End-user units/PMOs and corresponding estimated budgetary requirement. The WFP is submitted by the End-user units/PMOs to the Procuring Entity’s Budget Office on or about May of each year. as provided in the ABM.A. as contained in the proposed APP.Procurement Planning and Budget Linkage Legal Reference IRR-A Section 7 provides the legal reference for procurement planning and budget linkage. policies. specifically: the establishment of goals. the End-user units/PMOs must refine the proposed PPMP in accordance with the guidelines discussed below. a Procuring Entity is able to effectively manage and track procurement all the way to contract performance. the End-user units/PMOs or the different operating units of the Procuring Entity prepare their respective WFP for their different PPA. weaknesses. to coincide with the submission of their respective budget proposals. reflecting the Procuring Entity’s priorities and objectives for the budget period. The WFPs will support the Budget Proposal submitted to DBM. But in all cases. At this stage. Every year. Insofar as NGAs are concerned. which is usually around November – December of each year. Within fifteen (15) days from the date of issuance of the ABM during the first quarter of the fiscal year. NGAs may post and/or advertise procurement opportunities for projects proposed in the succeeding GAA even prior to its enactment but cannot award contracts until after the Certificate of Availability of Funds has been issued. The Procuring Entity’s Budget Proposal embodies the agency thrusts and the resources needed to produce the key services it delivers to the public. which are necessary to be implemented immediately upon the opening of the succeeding year. this procedure is recommended to be adopted only for high priority projects. Procurement Planning therefore involves two levels: the Agency’s over-all strategic plan and the project and/or operational plans that contain the details of the manner in which the strategic plan will be carried out. taking into consideration the budget framework for that year. and becomes basis for the proposed PPMP. The final PPMPs shall be submitted to the BAC Secretariat for the finalization of the Procuring Entity’s APP which will then be submitted to the HOPE for confirmation or approval. DepED Guidelines on Establishing Procurement Systems and Organizations . As such. a plan involves resource allocation and scheduling. All documents shall be approved by the HOPE prior to any submission to other approving bodies.
The final PPMPs shall then be consolidated by the BAC Secretariat into an APP for approval by the HOPE. Identify the need of the End-user unit/PMO What is the purpose of the procurement? What are the problem/s or needs that the project or procurement aims to address? b. Identify the alternative solutions/products/services What alternative solutions to the problem/s or need/s are available in the market? What are the sources of these products and services? What is the profile of the supply market? Are they easily obtainable? How much is the cost of each alternative? DepED Guidelines on Establishing Procurement Systems and Organizations . delivery and payment schedules. and other major milestones.Page 35 PROCUREMENT PLANNING – Preparation of the Project Procurement Management Plans (PPMPs) Legal Reference IRR-A Section 7 provides the legal reference for the preparation of the PPMPs. it serves as an important tool in resource and financial management. f. Well-planned procurement will significantly minimize the practice of doing short-cuts to ensure that the Procuring Entity is able to purchase its requirements for the delivery of public services. which is a component of the Project Management Plan. the Enduser unit/PMO must: a. in an effort to obtain goods. Developing the Project Requirements The development of the project requirements should be done during the preparation of the proposed PPMP. Moreover. d. deals primarily with: a. g. bidding or procurement strategy. c. contract administration. 2. allowing the Procuring Entity the flexibility to optimize the utilization of scarce resources. as well as a vital reference in procurement monitoring. The BAC Secretariat shall schedule the presentation by the End-user units/PMOs of their PPMPs to the BAC. The PPMP A PPMP. The PPMP serves as a guide document in the procurement and contract implementation process. contract termination. At this stage of the procurement planning process. source selection. b. 1. planning for the procurement of project requirements. infrastructure and services from suppliers. contractors and consultants. e.
as part of their technical document. e. respectively. all relevant costs should be considered.). Government policies procurement that have an impact on the project or Are there any restrictions on the procurement contemplated? What relevant government policies should be considered in determining the goods or services that will be purchased? iv. Value for money The concept of value for money is not restricted to price alone. a risk assessment and risk management plan. it should know the market or the industry well enough to make an informed choice.. In addition to costs. c. and make the necessary recommendation to the approving authority. and gather as much information about the Goods. ii. The following guidelines are. SOW and TOR are discussed in detail in Volumes 2. acquisition costs. Choose from among the alternatives the one that is most beneficial to the Procuring Entity. Constructor or Consultant. quality. etc. and the capacity of constructors to implement the project. At the end of this activity. considering that the deliverables are decided at this time. spare parts of goods. 3. Other relevant factors that may be identified by the End-user unit/PMO. SOW (for Services and Infrastructure Projects) or TOR (for Consulting Services) is the document that provides the detailed description of the deliverables of the Supplier. iii. to ensure that the requirements and the TS/SOW/TOR are adequate to achieve the objectives of the particular procurement. Quality Assurance actually starts at this stage of the procurement cycle. d. The Technical Specifications. life-cycle costs (including maintenance and operating costs for goods and infrastructure. among others. whether in-house or consultants. Or the bidders could be required to submit. or high value procurement. the Procuring Entity shall engage the services of technical experts. In comparing costs. considered helpful in writing the TS/SOW/TOR: a. among others. complex. It is therefore DepED Guidelines on Establishing Procurement Systems and Organizations . other considerations are non-cost factors like suitability or fitness to the purpose. It is recommended. however. Risks assessment and management Some risks that may be identified are the obsolescence of equipment. Services or expertise required. Scope of Work (SOW) and Terms of Reference (TOR) The Technical Specifications (for Procurement of Goods). Writing the Technical Specifications.g. the availability of support services. that the End-user unit/PMO identifies the risks involved and come up with its own risk management plan. 4 & 5. In developing the project requirements and TS/SOW/TOR. especially for hightechnology. 3. Compare the alternatives (consider qualitative and quantitative factors) Consider how the End-user unit/PMO would rate the various alternatives in terms of the following: i.Page 36 The End-user unit/PMO should conduct the market research at this point.
5. not product-specific or seemingly tailored for a particular brand. or are exclusively offered by a single source. and the actual requirements of the End-user unit/PMO are determined and put in writing. It is noted that the TS/SOW/TOR is also the basis of the evaluation or. submission of eligibility requirements and LOI (for procurement of infrastructure projects. If the procurement involves products or services that have intellectual property rights attached. This will allow the Procuring Entity to procure the latest products and/or services available in the market. highly technical. The description should be clear and unambiguous. like any plan. to avoid confusion and to facilitate the evaluation process. c. b. and the Procuring Entity does not have sufficient technical proficiency. the End-user unit/PMO has to consider several factors. it would be prudent to engage the services of technical experts who will serve as consultants in the preparation of the TS/SOW/TOR. inflation as determined from authorized sources such as the Central Bank. Thus. the Procuring Entity shall follow the procedures for procurement of consulting services as laid down in Volume 4 of these Manuals. the National Statistics Office (NSO) or National Economic Development Authority (NEDA). Infrastructure Projects. as provided for in the GAA and/or continuing appropriations. then the End-user unit/PMO must be able to satisfactorily justify the need for such a product or service. Moreover. the consultant/s engaged should not be connected with the prospective bidders/constructors. (IRR-A Section 5) The ABC refers to the budget for the contract duly approved by the HOPE which is contained in the Agency Budget as reflected in the GAA or to be proposed in succeeding GAAs. The description should be generic and flexible. 9184 and its IRR-A basically refers to the proposed budget for the project approved by the HOPE based on the APP as consolidated from various PPMPs. namely: the appropriation for the project or procurement (whether taken from the current year’s appropriations or continuing appropriations). pre-bid conference. unless the procurement involves products or services that have intellectual property rights attached to it. d. the ABC referred to in R. publication and/or posting of the IAEB. Procurement Milestones The PPMP. that is. care should be taken that possible conflict of interest is avoided. and cost of money which are directly related to the procurement time table. is not complete without including therein the schedule of significant activities. e. when applicable. and are barred from being engaged by the latter for any purpose related to the procurement at hand. submission of eligibility requirements DepED Guidelines on Establishing Procurement Systems and Organizations . or are exclusively offered by a single source without any suitable substitute. submission of bids (for procurement of goods.Page 37 important that all stakeholders are consulted. constructor or consultant. If the procurement is complex. Considering that planning is done sometime before actual procurement and even farther from the date of actual delivery or project implementation. or high value. the market price of the goods and/or services being procured. (GPPB Resolution 011-2005 dated 26 May 2005) In determining the ABC. The procurement milestones referred to are the following: preprocurement conference (if required or necessary).A. 4. and there are no suitable substitute products or services. Consulting Services and Manuscripts) is discussed in Volumes 2. product. In engaging these consultants. 3. The determination of the ABC for each type of procurement (Goods. Determining the ABC The ABC refers to the budget for the contract duly approved by the HOPE. the testing parameters. changes in technology or changes in the concerned industry or field of expertise should already be taken into account in writing the TS/SOW/TOR. 4 & 5. consulting services and manuscripts).
7. This will ensure that logistical support and other requirements of the Procuring Entity are promptly addressed..e. The Procurement Milestones may be laid down in a Gantt chart similar to that shown in Section 4 (General Procurement Activities and Timelines) of this Volume. Format of the PPMP The PPMP (prepared by the end-user unit/PMO) shall contain the following information: a. e. delivery dates or commencement of project implementation. if a product is patented. 3. and in Volumes 2. please refer to Volumes 2 (for Goods). 6. However. and indicating if the procurement tasks are to be outsourced as provided in Section 53(e) of the IRR-A. f. contract execution and approval. when applicable to the type of procurement. Method of Procurement As a general rule. b.A. or a combination of any two or three of these types of procurement. bid evaluation. hence contributing to more efficient and effective delivery of public service. 4 (for Consulting Services) and 5 (Manuscripts). These are discussed in Section 5 (Various Methods of Procurement) of this Volume.) d. c. including quantities where applicable. This is the policy of the GOP. General description of the project/procurement. and Estimated Budget for the Contract DepED Guidelines on Establishing Procurement Systems and Organizations . determination of LCRB or HRRB. For details on the specific activities for each type of procurement. 3 (for Infrastructure Projects). the goods. issuance of notice of award (NOA). The name of the project/procurement. Each of these significant activities should be scheduled so as to provide the End-user unit/PMO with a guide in each procurement undertaken by the Procuring Entity. 9184. infrastructure project or services. The time schedule for each procurement activity. The extent/size of contract scopes/packages.Page 38 and bids are done simultaneously). (This refers to the general description of the lot to be included in a particular contract. i. The procurement methods to be adopted. 4 and 5. direct contracting is the preferred mode instead of public bidding).g. as laid down in R. the law recognizes that certain unique circumstances require the use of other methods of procurement. The selection of the method of procurement is dependent on the presence or absence of specific conditions that justify the use of a particular method (e. issuance of notice to proceed (NTP). all procurement should be through public bidding.
The APP should include all procurement activities planned for the year. c. b. the APP shall be prepared by the BAC Secretariat based on the consolidated PPMPs. The IRR-A considers procurement crucial to the efficient discharge of governmental functions if: i. it is paramount that project implementation timelines are met. The Annual Procurement Plan The APP is the approved consolidated PPMPs submitted by various End-user units/PMOs within the Procuring Entity. through the BAC Secretariat. These units may avail of the services of technical experts to review the individual PPMPs. It reflects the entirety of the procurement activities including the proposed method of procurement that will be undertaken by the Procuring Entity within the calendar year. and manuscripts included in the APP. The BAC. A review and updating of the individual PPMPs and the APP shall be done regularly. The review and updating of the PPMPs will be done by the End-user units/PMOs. Moreover. The updated PPMPs will then be submitted to the BAC Secretariat for subsequent inclusion in the updated APP. e. The APP shall include provisions for foreseeable emergencies based on historical records. In preparing the APP. the following factors shall be taken into consideration: a.Page 39 PROCUREMENT PLANNING – Preparation of the Annual Procurement Plan (APP) 1. Consistent with the General Functions of Procurement Service pursuant to NOSCA. The APP shall be submitted through the BAC Chairman to the HOPE or a second-ranking official designated by the HOPE to act on his behalf. DepED Guidelines on Establishing Procurement Systems and Organizations . 2. which amount shall not be more than four percent (4%) of the Procuring Entity’s total appropriations for MOOE. ii. the PPMPs and the APP should also be based on proposed budget to allow for advance planning for the succeeding budget year. and only those projects / procurements included therein shall be undertaken. The APPs of decentralized procuring entities would have to be submitted to the central office for information and monitoring purposes. Procurement Strategy The procurement strategy refers to the approach that will be adopted by the BAC in the procurement of the goods. shall include therein a lump sum to cover for these emergencies or contingencies. consulting services. Scheduling of procurement activities should be done in such a manner that the BAC and the other offices/units in the Procuring Entity that are involved in the procurement process are able to efficiently manage the conduct of procurement transactions. it is required for the day-to-day operations of the Procuring Entity. or it is in pursuit of the principal mandate of the Procuring Entity concerned. The deadline for submission of procurement requests of end-users to the Procurement Service/BAC Secretariat (Field Offices) for each year shall be October 15 for National Competitive Bidding (NCB) and November 15 for Requests for Quotation (RFQ). d. The APP shall include only those procurements that are considered crucial to the efficient discharge of governmental functions. at least once every six months or as often as necessary. infrastructure projects. For flexibility and to encourage advance procurement actions. The approved APP shall be the basis for the Procuring Entity’s procurement. for approval.
Page 40 In the review and consolidation of the PPMPs.g. Section 5(p). or it could be divided into several bid lots (i. design and development of information systems). TWG and the facilitation of the BAC Secretariat. This is helpful in determining which type of procurement procedure to apply. There may be common requirements for the various PPMPs. though not necessarily as a determining factor. 3. the installation of cables might involve the repair of some offices and other related civil works) and procurement of consulting services (e. it seems that the purpose is actually to computerize the internal operations of the Procuring Entity. an ICT project might involve the procurement of goods (e. as well as in the scheduling of procurement activities. i. and indicating if the procurement tasks are to be outsourced as provided in Section 53(e) of the IRR-A. Consulting Services and Manuscripts or a consolidated APP for all procurement activities. Format of the APP The BAC may prepare four APPs. where applicable). network equipment and peripherals). and other characteristics of the Procuring Entity’s requirements for the year.. the project could be bid out as a consulting service. ascertaining the component with the highest price may be useful as an indicator of purpose. This being the case. In these cases. the nature of the procurement. supply of hardware. Obviously. c. cost. Physical Facilities & Schools Engineering Division (PFSED) for civil works and school furniture. or a total of fifteen (15) laptop computers. The profile of the procurement is a major determinant in the choice of procurement strategy to be employed.g. there may be instances when the End-user units/PMOs or the Procuring Entity itself may have difficulty determining or agreeing upon the primary purpose. procurement of civil works (e. General description of the project/procurement (general description of requirements and quantities. Infrastructure Projects. d. e. and Instructional Materials Council Secretariat (IMCS) for textbooks and instructional materials. b. goods. In similar cases. shall determine the best option for the Procuring Entity. The procurement methods to be adopted.g.. supply and installation of cables. Further.e. the supply market. shall be determined based on the primary purpose of the project. and Estimated Budget for the Contract DepED Guidelines on Establishing Procurement Systems and Organizations . through the help of the TSD. the BAC will be able to determine the extent of diversity. Name of the project/procurement. The time schedule for each procurement activity.. In IRR-A. End-user units/PMOs. workstations. f. quantities. design and development of information systems. it will be more cost effective and efficient if the BAC will procure the 15 laptop computers in one bidding exercise and as one bid lot. and repair of facilities). and the BAC. the BAC will have to exercise judgment in determining the bid lots and contract package. the HOPE may assign unit/s that will serve as clearing house for special types of projects such as but not limited to Information & Communication Technology Unit (ICTU) for ICT requirements. one each for Goods. for example. There are advantages and disadvantages to either approach. three projects require the purchase of five (5) units of laptop computers for each project office. The individual PPMPs sometimes reflect a mix of procurement types. For example.e. The APP shall contain the following information: a. infrastructure projects. or consulting services. However. quality. There are two approaches to this case – the project could be bid out as one package. In the example given above. hence the single most important component of the project is the design and development of information systems. in case of projects involving mixed procurements.
DepED Guidelines on Establishing Procurement Systems and Organizations .
SECTION 4 Various Methods of Procurement DepED Guidelines on Establishing Procurement Systems and Organizations .
DepED Guidelines on Establishing Procurement Systems and Organizations .
It is conceded. eligibility screening of prospective bidders. All procurement shall be through competitive or public bidding. infrastructure projects. except as provided in Rule XVI of the IRR-A. however. In addition. Rule IV of its IRR-A. evaluation of bids. the specific requirements and mechanics of which shall be defined in the IRR to be promulgated under this Act. 9184 and Section 10.” Competitive bidding opens up the procurement opportunity to a greater number of suppliers or constructors who compete among themselves in providing the best goods or services to the Government for the best value.A. Article IV of R. 3. receipt and opening of bids. DepED Guidelines on Establishing Procurement Systems and Organizations .A.Page 44 Competitive Bidding Legal Reference IRR-A Section 10 provides the legal reference for competitive bidding. Procuring Entities are enjoined to provide for sufficient lead time in its procurement program for the conduct of public bidding. thus optimizing the use of scarce resources. 9184 and its IRR-A as follows: “Refers to the method of procurement which is open to participation by any interested party and which consists of the following processes: advertisement. it allows for greater transparency of the procurement process. This is so specified in Section 10. In keeping with this policy. and award of contract. Competitive Bidding or Public Bidding is defined in R. prebid conference. that there are instances when resorting to any of the alternative modes of procurement is necessary. and consulting services at lower prices and better terms. This enables the Government to obtain goods and services. post-qualification. which provides for the conditions for use of the alternative modes of procurement. 4 and 5 of these Manuals. Competitive bidding is discussed in detail in Volumes 2.
) that has expertise and experience in the type of procurement concerned. b. 9184 and Rule XVI of its IRR-A. 2. otherwise known as selective bidding. The Different Alternative Methods a. which list should have been submitted to. National Telecommunications Commission for telecommunication equipment.A. This is further discussed in Volume 2 of this Manual. to be indicated in the APP. It is noted that the purpose of the list is to regulate the quality of goods being offered and the qualifications of consultants in the particular field of expertise. This can be done after a BAC Resolution recommending the use of the alternative method is approved by the HOPE. competitive bidding shall be conducted. DepED Guidelines on Establishing Procurement Systems and Organizations . the GPPB. 1. subject to the following conditions: a. 4 and 5. Procuring Entities may charge small value purchases or over-the-counter purchases against petty cash funds provided that the procurement is within the allowable contingency.Page 45 Alternative Methods of Procurement Legal Reference IRR-A Sections 48 to 54 provide the legal reference for the alternative methods of procurement. Rule XVI of its IRR-A. maintained and updated with. The conditions surrounding the procurement at hand justify the use on any of the alternative methods of procurement. The procedures are discussed in Volumes 2. 9184 and Sections 48-54.g. The BAC should recommend to the HOPE the use of alternative methods of procurement in cases where public bidding is not feasible. the APP may be amended. Bureau of Food and Drugs for medicines. Conditions for Use of Alternative Methods of Procurement In highly exceptional cases provided for in Article XVI of R. The pre-selected suppliers or consultants shall be all those appearing in the list maintained by the relevant Government authority (e. The particular conditions under which this alternative method of procurement may be used are outlined in Section 2. For highly specialized goods and consulting services. Limited Source Bidding. as provided for in Sections 48-54. where no such list is being maintained by a relevant Government authority. etc. The HOPE or his duly authorized representative has given prior approval on the use of any of the alternative methods of procurement. c. the Procuring Entity is allowed to resort to the alternative methods of procurement in order to promote economy and efficiency. Article XVI of R. Volume 2 (for procurement of goods). In cases where the original method of procurement specified in the APP is public bidding and conditions arise justifying the use of an alternative method of procurement after the APP is finalized. is a method of procurement of goods and consulting services that involves direct invitation to bid by the concerned entity of all pre-selected suppliers or consultants with known experience or proven capability on the requirements of the particular contract. 3. in Section 2 (Part 2)..A.
4 and Section 3. Volume 5 (for procurement of manuscripts) of this Manual. 2 of this Manual.A. Volume 5 of this Manual. The supplier is simply asked to submit a price quotation or a pro-forma invoice together with the conditions of sale. Shopping is a method of procurement of goods whereby the Procuring Entity simply requests for the submission of price quotations for readily available off-the-shelf goods or ordinary/regular equipment to be procured directly from suppliers of known qualifications. The particular conditions under which this alternative method of procurement may be used are outlined in Section 2. 2. legally and financially capable supplier. Vol. Direct Contracting or single source procurement is a method of procurement of goods that does not require elaborate bidding documents. The particular conditions under which this alternative method of procurement may be used are outlined in Section 2. an individual consultant. whenever there is a need to replenish goods procured under a contract previously awarded through Competitive Bidding. Section 3. Vol. Vol. The particular conditions under which this alternative method of procurement may be used are outlined in Section 2. Vol. Negotiated procurement is a method of procurement of goods.Page 46 Section 3. e. 2 of this Manual. constructor. Repeat Order is a method of procurement of goods from the previous winning bidder. Rule XVI of its IRR. 3. 4 (for procurement of consulting services). 2 of this Manual. where allowed. Vol. The offer may be accepted immediately or after some negotiations. d. Vol. Section 3. b. DepED Guidelines on Establishing Procurement Systems and Organizations . and consultant or. infrastructure projects and consulting services. and Section 3. c. whereby the Procuring Entity directly negotiates a contract with a technically. Vol. only in the cases provided for in Section 53 of R. The particular conditions under which this alternative method of procurement may be used are outlined in Section 2. 9184 and Section 53.
SECTION 5 Foreign Assisted Project .
The harmonization of ICB procedures is currently on-going among the IFIs. 9184 adopts international best practices in public procurement processes. the next logical step is the harmonization of the GOP’s procurement rules and those of the major and most active IFIs in the country. The review procedures of the IFI concerned. 3. nonacademic personnel of public schools. 9. JBIC and the World Bank. and this would naturally be a continuing process. Currency requirements.A. 6. The timelines for the preparation of bids. evaluation and review processes. 5. In any case.A. The posting of the ABC as the ceiling of bid prices. This activity was already initiated with ADB. The objective is to rationalize management responsibilities and accountabilities and accelerate Dep-ED decentralization of the school system while simultaneously building management capacity at the school level. and that ICB procedures would have to use the standard documents of the IFI concerned. 3. The allowance of pre-qualification for complex or large projects. and institutionalizes the need for a procurement manual. 8. It should be noted that these harmonized standard bidding documents only affect the procurement guidelines of the aforementioned IFIs for national or local competitive bidding procedures. the country eligibility requirement shall be followed.Page 50 Foreign Assisted Projects R. standard bidding documents and forms. 2. Since the IFIs’ guidelines focus primarily on procurement procedures. principal empowerment with active participation of the community and technical assistance from professional engineers. DepED Guidelines on Establishing Procurement Systems and Organizations . the entire activity also opened the doors for the possible harmonization of ICB procedures. The PL-SBP strengthens school-based management. Administering and managing all personnel. the bidding documents or appropriately addressed in these Manuals. this leaves much room for readily adopting the provisions of R. 9184 and its IRR-A. Developing the school education program and school improvement plan. Procurement of Small Scale Infrastructure Projects at the School Level In accordance with the principle of shared governance under RA 9155 (Governance of Basic Education Act of 2001). even if procurement harmonization in the Philippines began on the level of national/local competitive bidding procedures. including thresholds for prior review. except those rules that are not acceptable to the IFIs which are normally identified in the loan or grant agreement. Eligibility criteria. 7. if any. the school head is given authority. Domestic and provincial preferences. With this. physical and fiscal resources of the school. 2. For ADB and JBIC funded projects. Thresholds for national/local competitive bidding. which includes the participation of foreign bidders. and parentsteachers-community associations. accountability and responsibility for the following: 1. These pertain to the following areas: 1. 4. Establishing school and community networks and encouraging the active participation of teachers’ organizations. One of the strategies to implement this provision is the Principal-led School Building Program (PL-SBP). through the issuance of harmonized standard bidding documents and applicable procedures.
Social Expenditure Management Project. It is for this reason that the school and community are being considered for participation in the procurement of works.Page 51 PL-SBP is a means to accelerate social and economic development in the community since the local people and the school take responsibility and ownership for the improvement of the school and its facilities which will contribute to better performance of the school. The use of PL-SBP scheme has been found effective in foreign-assisted projects such as the Third Elementary Education Project. For the detailed procurement procedures in using the National Sealed Canvass Procurement method.000.00. DepED Guidelines on Establishing Procurement Systems and Organizations .00 or Php 5. The National Sealed Canvass Procurement method of the World Bank was used in the implementation of the Principal-led SBP for projects costing not more than $100. refer to Appendix ___ of Volume 3.000. Basic Education Sector Reform Agenda-National Program Support for Basic Education (all World Bank funded projects) and the Aus-Aid-funded Support for Philippine Education Reform. Manual of Procedures for the Procurement of Infrastructure.000.
Civil and Administrative Liabilities and Sanctions .Page 52 SECTION 6 Penal.
non-competitive levels. “Corrupt practice” means behavior on the part of officials in the public or private sectors by which they improperly and unlawfully enrich themselves. it will suffer the administrative penalties of suspension for one (1) year from participation in government procurement for the first offense. and suspension for two (2) years for the second offense. upon conviction. into any contract or transaction manifestly and grossly disadvantageous to the same.1) 3 A firm declared ineligible by an IFI for engaging in corrupt. with or without the knowledge of the Procuring Entity. it will be disqualified by the BAC. (IRR-A Section 69. fraudulent. its bid security will be forfeited. shall be ineligible to be awarded an IFI-financed contract during the period of time determined by the IFI concerned. collusive and/or coercive practice/s.A.Page 54 of 86 Standard of Ethics Definition of Corrupt. or R.2) Likewise. “Coercive practice” means harming or threatening to harm.3 For this purpose: 1. by misusing the position in which they are placed. Bidders determined to have committed corrupt. 2. Collusive. giving. fraudulent. on behalf of the government. and Coercive Practices Procuring entities and bidders. and includes collusive practices among bidders (prior to or after bid submission) designed to establish bid prices at artificial. “Collusive practice” means a scheme or arrangement between two (2) or more bidders. 4. 3. shall also be applied in determining the existence of “corrupt or fraudulent practice”. or induce others to do so. designed to establish bid prices at artificial. non-competitive levels and to deprive the Procuring Entity of the benefits of free and open competition. suppliers or distributors are required to observe the highest standard of ethics during the procurement and execution of contract. DepED Guidelines on Establishing Procurement Systems and Organizations . and. receiving. (IRR-A Section 65. or affect the execution of a contract. Applicable penalty for fraud. or soliciting of anything of value to influence the action of any such official in the procurement process or in contracting execution. whether or not the public officer profited or will profit thereby. and it includes the offering. directly or indirectly. others. 3019. Fraudulent. persons. “Fraudulent practice” means a misrepresentation of facts in order to influence a procurement process or the execution of a contract to the detriment of the Procuring Entity. collusive and coercive practices by the government will not be eligible to bid in its projects. manufacturers. The pertinent provisions of the Anti-Graft and Corrupt Practices Act. misrepresentation and collusion If a bidder is found to have committed an act that constitutes fraud or misrepresentation or to have colluded with others for the purpose of influencing the outcome of the bidding. will suffer the penalty of imprisonment of not less than six (6) and one (1) day and not more than fifteen (15) years. or their property to influence their participation in a procurement process. entering.
If the bidder is a partnership. In accordance with Section 47 of the IRR-A. directors and controlling stockholders. If the bidder is a corporation or a partnership and it has officers. A bidder has a relationship directly or through common third parties. or influence the decisions of the Procuring Entity regarding the bidding process. 6. to the bidder himself. directors. If the bidder is a corporation. controlling shareholders. directors. 3. the bidder should not be related to the HOPE by consanguinity or affinity up to the third civil degree or any of the Procuring Entity’s officers or employees having direct access to information that may substantially affect the result of the bidding. 2. If the bidder is an individual or a sole proprietorship. but not limited to. as may be appropriate. This will include a firm or an organization that lends.3.8) DepED Guidelines on Establishing Procurement Systems and Organizations . and If the bidder is a joint venture. if the personnel would be involved in any capacity on the same project. controlling shareholders or members in common with another bidder. director or a controlling shareholder of another bidder. all bids must be accompanied by a Disclosure Affidavit of the bidder to that effect. to all its officers and members.C. this does not limit the participation of subcontractors in more than one bid. its personnel to firms or organizations which are engaged in consulting services for the preparation related to procurement for or implementation of the project. such as. 2. or an officer. partners or members in common with another bidder. This prohibition shall apply to the following persons: 1. or if the bidder is a joint venture and it or any of its members has officers. However. (IRR-A Sections 47 and 25. the members of the TWG. to all its officers. A bidder submits more than one bid in the bidding process. that puts them in a position to have access to information about or influence on the bid of another bidder. items 1 through 3 above shall correspondingly apply to each of the members of the said joint venture. A bidder has the same legal representative as any other bidder for purposes of the bidding at hand. A bidder receives or has received any direct or indirect subsidy from another bidder. and to bind the bidders to its representation relating to the foregoing. the Procurement Service/BAC Secretariat. 5. 3. the members of the End-user units/PMOs and the designers of the project. or temporarily seconds. or A bidder who participated as a consultant in the preparation of the design or technical specifications of the goods and related services that are the subject of the bid. 4. or if the bidder is an individual or a sole proprietorship and he is the proprietor of another bidder. the members of the BAC.Page 55 Conflict of Interest A bidder that has a conflict of interest shall be disqualified to participate in the procurement at hand. To establish the non-existence of the above relationship. or any of its members is a bidder. 4. A bidder would be considered as having a conflict of interest with another bidder in any of the events described in paragraphs 1 through 3 below and a general conflict of interest in any of the circumstances set out in paragraphs 4 through 6 below: 1.
Opening any sealed bid including but not limited to bids that may have been submitted through the electronic system and any and all documents required to be sealed or divulging their contents. officers or employees who actually commit any of the foregoing acts. 3. Penal Liabilities of Private Individuals Private individuals. Splitting of contracts which exceed procedural purchase limits to avoid competitive bidding or to circumvent the limits of approving or procurement authority. Abuse by the HOPE of his power to reject any and all bids as mentioned under Section 41 of R. When any of the foregoing acts is done in collusion with a private individual. Unduly influencing or exerting undue pressure on any member of the BAC or any officer or employee of the Procuring Entity to take a particular action which favors. Delaying. shall be criminally liable: 1. When two or more bidders agree and submit different bids as bona fide.A. the private individual shall likewise be liable for the offense. 9184 and its IRR-A. while any private individual found to have colluded with him shall be permanently disqualified from transacting business with the government. public officers who commit any of the above acts shall. The above penalties and offenses shall cover all types of procurement whether done manually or electronically. who commit any of the following acts.Page 56 Penal Liabilities and Sanctions Penal Liabilities of Public Officers Without prejudice to the provisions of R. suffer the penalty of imprisonment of not less than six (6) years and one (1) day. 3019 and other penal laws. evaluation and post evaluation of bids. 5. but not more than fifteen (15) years. the screening for eligibility.A. and awarding of contracts beyond the prescribed periods of action provided for in the IRR-A. or tends to favor a particular bidder.A. Penal Sanctions for Public Officers Without prejudice to the provisions of R. 9184 and its IRR-A. When the bidder is a juridical entity. bidders. DepED Guidelines on Establishing Procurement Systems and Organizations . 3019 and other penal laws. If a person previously held liable or found guilty under the provisions of R. upon conviction. public officers who commit any of the following acts shall be criminally liable: 1. 2. 4. all the while knowing that the bid(s) of one or more of them was so much higher than the other that the latter could not be honestly accepted and that the contract will surely be awarded to the pre-arranged lowest bid. 9184 and its IRR-A has a controlling interest in a prospective bidder-entity the said bidder-entity shall be disqualified to participate in any procurement activity being conducted by the Government. criminal liability and the accessory penalties shall be imposed on its directors. without justifiable cause. prior to the appointed time for the public opening of bids or other documents. opening of bids. the public officer shall also suffer the penalty of temporary disqualification from public office.A. In addition.A. with manifest preference to any bidder who is closely related to him in accordance with Section 47 of R.
corporations. DepED Guidelines on Establishing Procurement Systems and Organizations . 7. performance security. When a bidder maliciously submits different bids through two or more persons. the public officer shall likewise be liable for the offense. preparatory to the final award of the contract. upon conviction. 3. partnerships or any other business entity in which he has an interest to create the appearance of competition that does not in fact exist so as to be adjudged as the winning bidder. 6. or which requires one or more of them to withdraw bids already submitted. criminal liability and the accessory penalties shall be imposed on its directors. 9184 and its IRR-A has a controlling interest in a prospective bidder-entity. In addition. the said bidder-entity shall be disqualified to participate in any procurement activity being conducted by the Government. Withdrawing a bid. Submitting eligibility requirements of whatever kind and nature that contain false information or falsified documents calculated to influence the outcome of the eligibility screening process or conceal such information in the eligibility requirements when the information will lead to a declaration of ineligibility from participating in public bidding. or refuse to accept an award. by himself or in connivance with others. suffer the penalty of imprisonment of not less than six (6) years and one (1) day but not more than fifteen (15) years. When any of the foregoing acts is done in conspiracy with a public officer. 8. or delaying the submission of requirements such as. Submitting bidding documents of whatever kind and nature that contain false information or falsified documents or conceal such information in the bidding documents. If a person previously held liable or found guilty under the provisions of R. The above penalties and offenses shall cover all types of procurement whether done manually or electronically. 5. 4. When a bidder. officers or employees who actually commit any of the foregoing acts. When the bidder is a juridical entity. after it shall have qualified as the Lowest Calculated Bid (LCB) /Highest Rated Bid (HRB). When two or more bidders enter into an agreement which calls upon one or more of them to refrain from bidding for procurement contracts. without just cause or for the purpose of forcing the Procuring Entity to award the contract to another bidder. Participating in a public bidding using the name of another or allow another to use one’s name for the purpose of participating in a public bidding. Penal Sanctions for Private Individuals Private individuals who commit any of the above acts and any public officer conspiring with them shall.A. the public officer involved shall also suffer the penalty of temporary or perpetual disqualification from public office and the private individual shall be permanently disqualified from transacting business with the Government. in order to secure an undue advantage to any one of them.Page 57 2. employs schemes which tend to restrain the natural rivalry of the parties or operates to stifle or suppress competition and thus produce a result disadvantageous to the public. This shall include the non-submission within the prescribed time. in order to influence the outcome of the public bidding. but not limited to.
9184 and its IRR-A shall contain a provision on liquidated damages which shall be payable in case of breach thereof. at the discretion of the courts. 3019 shall carry with it civil liability.1%) of the cost of the unperformed portion for every day of delay. a conviction under R. Liquidated Damages All contracts executed in accordance with R. 9184 and its IRR-A or R. Once the cumulative amount of liquidated damages reaches ten percent (10%) of the amount of the contract. 9184.A. the amount of the liquidated damages shall be in accordance with Annex “E” of IRR-A. the amount of the liquidated damages shall be at least equal to one-tenth of one percent (0. For the procurement of infrastructure projects. the Procuring Entity shall rescind the contract. R. DepED Guidelines on Establishing Procurement Systems and Organizations .Page 58 Civil Liability Civil Liability in Case of Conviction Without prejudice to administrative sanctions that may be imposed in proper cases. For the procurement of goods and consulting services.A.A.A. which may either consist of restitution for the damage done or the forfeiture in favor of the government of any unwarranted benefit derived from the act or acts in question or both. without prejudice to other courses of action and remedies open to it.
or enter into contract with the Government without justifiable cause. 9. shall be strictly observed. Chapter 6. or the concealment of such information in the bids in order to influence the outcome of eligibility screening or any other stage of the public bidding. 6. Book V of Executive Order No. Allowing the use of one’s name. Withdrawal of a bid. or refusal to accept an award. as well as disqualification from further participating in the public bidding being undertaken by the Procuring Entity concerned. Subtitle A (Civil Service Commission). the administrative penalty of suspension for one (1) year for the first offense. DepED Guidelines on Establishing Procurement Systems and Organizations . The HOPE may preventively suspend any member of the TWG. and suspension of two (2) years for the second offense from participating in the public bidding process. the Procurement Service/BAC Secretariat (Field Offices). Title I. Refusal or failure to post the required performance security within the prescribed time. Lifting of preventive suspension pending administrative investigation. Any documented unsolicited attempt by a bidder to unduly influence the outcome of the bidding in his favor. or for dishonesty as defined by the Civil Service Laws. after he had been adjudged as having submitted the LCRB or HRRB. Administrative Sanctions Without prejudice to the imposition of criminal sanctions or the effects of civil liability. otherwise known as the Administrative Code of 1987. or using the name of another for purposes of public bidding. Submission of bids that contain false information or falsified documents. In addition to the penalty of suspension. The HOPE may delegate to the BAC the authority to impose the administrative penalties. 7. the Bid Security or the Performance Security posted by the concerned bidder or prospective bidder shall also be forfeited. or the BAC if there are strong reasons or prima facie evidence showing that the officials or employees concerned are guilty of committing any of the acts constituting criminal or civil liability. 2. the HOPE shall impose on bidders or prospective bidders. 292. such as an eligible constructor not buying bid documents. 5. for any of the above violations. except for valid reasons. 8. Refusal to clarify or validate in writing its bid during post-qualification within a period of seven (7) calendar days from receipt of the request for clarification. Termination of the contract due to the default of the bidder. rules and regulations. Submission of eligibility requirements containing false information or falsified documents. where applicable. 4. 3. as well as removal of administrative penalties and disabilities shall be in accordance with the provisions of Sections 52 and 53. All other acts that tend to defeat the purpose of the competitive bidding. and constructors habitually withdrawing from bidding or submitting letters of non-participation for at least three (3) times within a year. due process as mandated by the Constitution and Civil Service laws.Page 59 Administrative Liabilities and Sanctions Administrative Liabilities The following violations shall warrant administrative sanctions: 1. In all cases.
4. constructors and consultants involved in government procurement for offenses or violations committed during competitive bidding and contract implementation. 8. 9184.4 of IRR-A. suppliers. Unauthorized use of one’s name or using the name of the name of another for purpose of public bidding. Submission of eligibility requirements containing false information or falsified documents. Sanctions and Grounds for Blacklisting During the competitive bidding stage. Refusal to clarify or validate in writing its bid during post qualification within a period of seven (7) calendar days from receipt of the request for clarification.A. Prohibition on blacklisted persons/entities to participate in the bidding of Government Projects/Contracts A person/entity that is blacklisted by a Procuring Entity and/or included in the GPPB Consolidated Blacklisting Report shall not be allowed to participate in the bidding of all government projects during the period of disqualification unless it is delisted. Submission of bids that contain false information or falsified documents. shall be blacklisted after they have been determined to hold the same controlling interest in a previously blacklisted corporation or in two corporations which have been blacklisted. or refusal to accept an award. 5. 9184. and their assignees. or enter into contract with the government without justifiable cause. Any documented unsolicited attempt by a bidder to unduly influence the outcome of the bidding in his favor. pursuant to Section 69 of R. 6.A. Withdrawal of a bid. 2. In the case of corporations.Page 60 Blacklisting Guidelines GPPB Resolution 09-2004 provides the guidelines that govern the blacklisting of manufacturers. the corporations of which they are part shall also be blacklisted. holding at least twenty percent (20%) of the shares therein. distributors. in accordance with Section 69. . or the concealment of such information in the bids in order to influence the outcome of eligibility screening or any other stage of the public bidding. such as but not limited to: an eligible constructor not buying bid documents or not complying with DepED Guidelines on Establishing Procurement Systems and Organizations 3. as provided by applicable laws. 7. a single stockholder. likewise. A joint venture or consortium which is blacklisted or which has blacklisted member/s and/or partner/s as well as a person/entity who is a member of a blacklisted joint venture or consortium are. not allowed to participate in any government procurement during the period of disqualification. its chairman and president. Refusal or failure to post the required performance security within the prescribed time. after he had been adjudged as having submitted the LCRB or HRRB. R. suspension for two (2) years for the second offense from participating in the public bidding process. together with his/her relatives up to the third civil degree of consanguinity or affinity. All other acts that tend to defeat the purpose of the competitive bidding. for the following violations: 1. without prejudice to the imposition of additional administrative sanctions as the internal rules of the agency may provide and/or further criminal prosecution. the Procuring Entity shall impose on bidders or prospective bidders the penalty of suspension for one (1) year for the first offense.
A. to mobilize and start work or performance within the specified period in the NTP. or way above acceptable standards. facilities. 6. which include but not limited to the following: 1. as may be provided in the contract. Defective design resulting in substantial corrective works in design and/or construction. 5. c. substandard. Provision of warning signs and barricades in accordance with approved plans and specifications and contract provisions. pursuant to Section 69 (6) of R. Stockpiling in proper places of all materials and removal from the project site of waste and excess materials. poor performance by the constructor or unsatisfactory quality and/or progress of work arising from his fault or negligence as reflected in the Constructor's Performance Evaluation System rating sheet. 2. except for valid reasons. During Contract Implementation Stage. poor performance by the consultant of his services arising from his fault or negligence. and Renewal of the effectivity dates of the performance security after its expiration during the course of contract implementation. c. support staff and manpower. the existing performance monitoring system of the DepED Guidelines on Establishing Procurement Systems and Organizations . Deployment of committed equipment. For the procurement of infrastructure projects or consultancy contracts. For the procurement of consulting services. the Procuring Entity shall impose on constructors after the termination of the contract the penalty of suspension for one (1) year for the first offense. For the procurement of infrastructure projects. Failure to deliver critical outputs due to consultant’s fault or negligence. competent engineers and/or work supervisors. 9184 and without prejudice to the imposition of additional administrative sanctions as the internal rules of the agency may provide and/or further criminal prosecution as provided by applicable laws. In addition to the penalty of suspension. Assignment and subcontracting of the contract or any part thereof or substitution of key personnel named in the proposal without prior written approval by the Procuring Entity. supplier or distributor arising from his fault or negligence and/or unsatisfactory or inferior quality of goods. suspension for two (2) years for the second offense from participating in the public bidding process. b. including broken pavement and excavated debris in accordance with approved plans and specifications and contract provisions. the bid security posted by the concerned bidder or prospective bidder shall also be forfeited. For the procurement of goods. or failure by the constructor to comply with any written lawful instruction of the Procuring Entity or its representative(s) pursuant to the implementation of the contract. Any of the following acts by the consultant shall be construed as poor performance: a.Page 61 the requirements during bid evaluation. Failure of the constructor. and constructors habitually are withdrawing from bidding or submitting letters of non-participation for at least three (3) times within a year. d. for violations committed during the contract implementation stage. d. Employment of competent technical personnel. Failure by the constructor to fully and faithfully comply with its contractual obligations without valid cause. b. 4. due solely to his fault or negligence. 3. lawful instructions include but are not limited to the following: a. e. Specifying materials which are inappropriate. In the absence of the CPES rating sheet. and Allowing defective workmanship or works by the constructor being supervised by the consultant. unsatisfactory progress in the delivery of the goods by the manufacturer.
The BAC may also motu proprio (by itself) commence the proceedings upon prima facie (selfsufficient) determination that the supplier/constructor/consultant/publisher as a bidder or prospective bidder has committed any of the grounds for blacklisting during the competitive bidding stage. c) a hearing shall be conducted before the BAC. At the option of the procuring entities. the BAC shall immediately notify the supplier/constructor/consultant/publisher concerned in writing. No time extension shall be allowed. stating the grounds for such. 2) Notification Upon the verification of the existence of grounds for blacklisting. 7. b) he has the opportunity to show cause why he should not be suspended and blacklisted. a reasonable fee may be required for initiating the suspension and blacklisting proceedings. Any of the following acts by the constructor shall be construed as poor performance: a. Willful or deliberate abandonment or non-performance of the project or contract by the constructor resulting to substantial breach thereof without lawful and/or just cause. b. 3) Hearings If a hearing is requested. DepED Guidelines on Establishing Procurement Systems and Organizations . and d) the consequences of being suspended and blacklisted. advising him that: a) a complaint for suspension and blacklisting has been filed against him. and Quality of materials and workmanship not complying with the approved specifications arising from the constructor's fault or negligence. Procedure for Suspension and Blacklisting During the Competitive Bidding Stage 1) Initiation of Action Any bidder/prospective bidder or duly authorized observer may initiate the suspension and blacklisting proceedings by filing a written complaint with the BAC. Within five (5) days from receipt of notification. upon his request. verbal testimony and cross-examine the witnesses presented against him. Should the supplier/constructor/consultant/publisher fail to answer within the same period. Negative slippage of fifteen percent (15%) and above within the critical path of the project due entirely to the fault or negligence of the constructor. if he so desires. the supplier/constructor/consultant/publisher shall submit its written answer with documentary evidence to the BAC with the manifestation for request of hearing to determine questions of fact. where he may present documentary evidence. the BAC shall immediately set the date and time for hearing. The hearing shall be non-litigious and shall be terminated within five (5) days. the BAC shall issue a resolution recommending to the HOPE the immediate suspension of the supplier/constructor/consultant/publisher from participating in any bidding process of the agency and the forfeiture of his bid security. or he has been considered by the BAC for suspension and blacklisting. In addition to the penalty of suspension. the performance security posted by the constructor shall also be forfeited.Page 62 Procuring Entity shall be applied.
5) Notice of Decision The HOPE shall furnish the suspended supplier/constructor/consultant/publisher a copy of the decision immediately from its promulgation. the HOPE shall issue a Blacklisting Order disqualifying the erring supplier/constructor/consultant/publisher from participating in the bidding of all government projects. 6) Effect of Decision A supplier/constructor/consultant/publisher is suspended upon receipt of the notice of decision prohibiting from his participating in the bidding process of the agency. evidence and the law on which it is based. Otherwise. documentary evidence submitted and facts verified. and further declaring that his bid security is forfeited. and b) Newly discovered evidence or facts which not be discovered and produced at the investigation and which when presented would probably alter the result of the investigation.Page 63 The BAC may also invite a representative from a duly recognized private group in a sector or discipline relevant to the procurement at hand as an observer for each hearing. The decision shall clearly and distinctly state the facts. answer. it shall issue a resolution recommending to the head of the agency the suspension of the supplier/constructor/consultant/publisher from participating in any bidding process of the agency and the forfeiture of his bid security. each violation shall be meted the corresponding penalty. determine whether reasonable cause exists for the suspension of the supplier/constructor/consultant/publisher and the forfeiture of the latter’s bid security. Thereafter. If no request is made. he shall dismiss the case. The HOPE may delegate to the BAC the authority to impose the corresponding sanction(s) provided for in the Blacklisting Guidelines. 4) Decision The HOPE shall. If the BAC is convinced that the supplier/constructor/consultant/publisher is at fault. The suspension shall remain in effect during the period of motion for reconsideration and protest and shall terminate only upon a reversal of the decision by the HOPE or appellate authority. In case a supplier/constructor/consultant/publisher commits more than one offense or a combination of offenses for the same project/contract in a particular agency. If no motion for reconsideration or protest is filed. the BAC shall make a determination of the case based on the complaint. the decision shall become final and executory after the lapse of three (3) calendar days from receipt of the notice of decision. DepED Guidelines on Establishing Procurement Systems and Organizations . 7) Motion for Reconsideration A Motion for Reconsideration maybe filed by the suspended person/entity within three (3) calendar days from receipt of the notice of decision and shall be for either or both of the following causes. within fifteen (15) days from receipt of the resolution and the records of the BAC proceedings. If the HOPE determines that such reasonable cause exists. if any. provided that only one (1) Motion for Reconsideration shall be filed with the blacklisting agency: a) The decision is not in conformity with the evidence and/or facts presented. as well as the date of effectivity of the penalty. he shall issue a decision suspending the supplier/constructor/consultant/publisher from participating in any bidding process of the agency.
8) Protest from Decision A protest may be filed under Section 55.Page 64 The HOPE shall resolve with finality the motion for reconsideration within fifteen (15) calendar days from the filing thereof and furnish suspended supplier/constructor/consultant/publisher a copy of the resolution immediately from its promulgation. Procedure for Blacklisting During the Contract Implementation Stage Upon termination of the contract due to the default of the supplier/constructor/consultant/publisher. the HOPE shall immediately issue a Blacklisting Order disqualifying the erring supplier/constructor/consultant/publisher from participating in the bidding of all government projects. The performance security of the said supplier/constructor/consultant/publisher shall also be forfeited. If a protest is filed. 9) Finality of Decision The decision of the agency shall become final and executory after the lapse of seven (7) calendar days from the receipt of the notice of decision or resolution on the motion for reconsideration. the HOPE or appellate authority shall issue a Blacklisting Order disqualifying the erring supplier/constructor/consultant/publisher from participating in the bidding of all government projects. DepED Guidelines on Establishing Procurement Systems and Organizations . the affirmed.1 of the IRR-A of RA 9184 by the suspended supplier/constructor/consultant/publisher with the appellate authority within seven (7) calendar days from receipt of the resolution on the Motion for Reconsideration. modified or reversed decision shall become final and executory upon receipt thereof by the agency and the person/entity concerned. Upon finality of the decision suspending the supplier/constructor/consultant.
DepED Guidelines on Establishing Procurement Systems and Organizations .
SECTION 7 Legal Assistance and Indemnification .
9184. 4 Approved and adopted by GPPB through its Resolution 021-2005.A.000. published at the Official Gazette on 09 January 2006. 6. liability insurance or medical assistance shall be taken from the agency’s annual appropriation. The funds to be used for the grant of the free legal assistance. proceeding. The BAC member or BAC Support Staff concerned must have engaged the services of a private lawyer or external counsel. Free Legal Assistance In order for a member of the BAC or its Support Staff to avail of the free legal assistance.A. 3. proceeds from the sale of bidding documents. 5. 9184 and its IRR-A. misconduct. or claim was authorized by the HOPE or the approving authority therein. b. The attorney representing the BAC member or BAC Support Staff shall be entitled to a maximum of Five Thousand Pesos (Php5. The BAC member or BAC Support Staff shall be entitled to actual. 9184. The free legal assistance shall cover actual cost of suit and attorney’s fees. and the Technical Working Group duly designated by the procuring entity pursuant to the provisions of Rule V of the IRR-A of R. 5 Refers to the members of the Procurement Service/BAC Secretariat (Field Offices). 3. or Any action or suit initiated by the Government against the BAC members or BAC Support Staff. 2. The procuring entity shall. dated 07 October 2005. the following considerations must be met: 1. damage or injury arising from the lawful exercise of their functions is implemented in accordance with the provisions of R. To establish the legal parameters for the effective implementation of the legal assistance and indemnification provided for BAC members and BAC Support Staff. Likewise. and exemplary damages when awarded by the court. or grave abuse of discretion. 2. Any action or suit initiated by a BAC member or BAC Support Staff in his personal capacity or in behalf of the procuring entity. moral. criminal or administrative in nature brought against him in the performance of his official functions as BAC member or as BAC Support Staff. The free legal assistance shall not cover: a. DepED Guidelines on Establishing Procurement Systems and Organizations .Page 68 General Conditions Pursuant to and in accordance with Section 73 of R. Protest fees. 4. To ensure that the mandate to insulate government procurement personnel from the unnecessary loss. unless such action.00) per appearance which shall be paid by the procuring entity. and any other additional funds derived from other incomegenerating activities of the agency may be used to augment the funds. suit or proceeding whether civil. to the fullest extent permitted by this manual. indemnify a BAC member and/or any of the BAC Support Staff who was or is a party to a pending or completed action. the GPPB issued the Guidelines on Legal Assistance and Indemnification of BAC Members and its Support Staff4 for the following purposes: 1.A. the attorney representing the BAC member or BAC Support Staff shall be entitled to attorney’s fees awarded by the court. To prescribe the rule and procedures in granting legal assistance and indemnification of the BAC members and BAC Support Staff5. The BAC member or BAC Support Staff must have not been adjudged as guilty of gross negligence.
indemnification shall be confined only to matters covered by the settlement. 4. as well as all reasonable fees and other expenses incurred by such persons in connection with any administrative. The medical assistance herein provided shall consists of indemnification for medicines. misconduct. Indemnification shall only be made upon presentation of the proof of payment in connection with the injury or disability suffered. the term “loss” shall include judgments. such BAC members or BAC Support Staff shall not be adjudged in such action or proceeding to be guilty of gross negligence. civil. or grave abuse of discretion or guilty of any other complaint or charges. 6. 5. suit or proceeding to which they may be or have been made a party by reason of the lawful performance of their official functions and duties in such capacity. that. or grave abuse of discretion in the performance of their duties and functions. misconduct. provided that. 3. substantiated by receipts and other supporting documents. The claimant(s) or his/her relatives must notify the HOPE within seven (7) calendar days from the occurrence of the injury or disability. 5. The procurement liability insurance shall be subject to the setting of schedule of premium by the GPPB. expenses for settlement or compromise. Medical Assistance 1. The claimant(s) should be entitled to indemnification for any injury or disability resulting from the performance of their official functions as defined by law and without any contributory negligence on their part. The liability insurance policy shall cover only those liabilities asserted against the public official and incurred by him in his capacity as such BAC members or BAC Support Staff as the case may be. 6. Medical assistance shall be provided to BAC members and BAC Support Staff for injuries/disabilities incurred in the lawful performance of their official functions and duties. 2. The insurer shall pay for the loss arising from the claim or suit made against the BAC members or BAC Support Staff during the policy period wherein they serve in such capacity. Provided further. 2. laboratory and hospitalization expenses. Provided. DepED Guidelines on Establishing Procurement Systems and Organizations . The medical assistance granted herein shall be granted to the claimant as a matter of right and subject to the conditions mandated by law. The procuring entity shall have the responsibility to procure and maintain adequate liability insurance for and in behalf of its BAC members or BAC Support Staff. For purposes of this insurance. In the event of settlement or compromise. further. the amount claimed shall not exceed the actual amount incurred. 3. 4. or criminal action.Page 69 Liability Insurance Following are the general conditions pertaining to the liability insurance for members of the BAC and the BAC Support Staff: 1. that they exercised due diligence to prevent harm or injury to themselves. and to which the procuring entity had been advised by counsel that the person to be indemnified have not committed gross negligence. 7.
misconduct.Page 70 Procedure for Granting Legal Assistance and Indemnification The claimant(s) should file their respective claim(s) for legal assistance. review. and shall secure the approval of the latter on the terms and conditions of the engagement of counsel. On the other hand. or medical assistance as the case may be. or grave abuse of discretion. misconduct. Any expenses incurred in advance by the claimant arising from the performance of his official functions in such capacity shall be subject to reimbursement upon submission of the necessary documents and approval thereof by the HOPE. he shall pay the cash advances made through salary deductions or reimbursement. if the BAC member or its Support Staff is found to be guilty for gross negligence. If the BAC member or its Support Staff is found to be not guilty for gross negligence. Upon finding that all the requirements have been duly complied with and that all the necessary documents submitted are genuine. or grave abuse of discretion. verify and validate the authenticity of the documents presented by the claimant. The HOPE should be given at least fifteen (15) to thirty (30) calendar days to examine. DepED Guidelines on Establishing Procurement Systems and Organizations . it should then order the processing of the claims and the subsequent release of funds for the approved claims. he shall liquidate his cash advances by presenting receipts of payment and other necessary documents. liability insurance. with the HOPE.
DepED Guidelines on Establishing Procurement Systems and Organizations .
ANNEX Glossary .
BAC Secretariat – an organic office in the Central Office under the Procurement Service which provides administrative assistance to the BAC. evaluation of bids. and shall enter into contract with the Procuring Entity and furnish the performance security. Approved Budget for the Contract – The budget for the contract duly approved by the HOPE. evaluated and ranked. post-qualification. letter of credit. 9184. distributor and/or consultant competing for the award of a contract in any government procurement. See Eligible bidder. Competitiveness – A principle in Government procurement that allows broad participation by eligible and qualified suppliers. such as agents. bank guarantee. BAC – The Bids and Awards Committee. Bidder – An individual or entity that submits a bid. constructors.) DepED Guidelines on Establishing Procurement Systems and Organizations . a constructor. Communication costs – mail and fax costs. supplier.Page 74 Glossary Abstract of Bids – The corresponding document prepared by the BAC after all bids have been received. furnishing all information necessary for a prospective bidder to prepare a bid for the infrastructure projects. as provided for in the GAA and/or continuing appropriations. receipt and opening of bids. goods and/or consulting services required by the Procuring Entity.A. 5th ed. Bidding Documents – The documents issued by the Procuring Entity as the bases for bids. meetings. plus cost of advertising. manufacturer. and other costs incurred for the dissemination of information about the bidding. opened. Competitive Bidding – A method of procurement which is open to participation by any interested party and which consists of the following processes: advertisement. employees. examined. or a foreign government guarantee that serves as a guarantee that the successful bidder shall not default on his offer. Civil Works – See Infrastructure Projects Collusion – An agreement between two or more persons. a list of persons or organizations that have incurred disapproval or suspicion or are to be boycotted or otherwise penalized. established in accordance with Rule V of the IRR-A of R. More specifically. or as if on. The term includes anyone acting on behalf of the individual or other entity that submits a bid. in the case of national government agencies (NGAs). to commit acts to accomplish a fraudulent or deceitful purpose. Bid – A signed offer or proposal to undertake a contract submitted by a bidder in response to and in consonance with the requirements of the bidding documents. bank draft.. Conflict of Interest – Refers to a clash between public interest and the private pecuniary interest of the individual concerned (Black’s law Dictionary. eligibility screening of prospective bidders. Blacklisting – To place on. and representatives. Also referred to as Public Bidding. Bid Security – Check. and award of contract. also referred to as Proposal and Tender. internet/web posting. pre-bid conference. Prospective bidder. consultants to put forward offers for a project. particularly when referring to the procurement of consulting services. Bid Evaluation – The process of determining the Bidder with the Lowest Calculated Bid (LCB) or the HRB.
for a public or private entity.One who undertakes to perform a civil work project. or soliciting of any thing of value to influence the action of a public official in the procurement process or in contract execution. Eligible Bidder – A constructor. Fraudulent practice – Misrepresentation of facts in order to influence a procurement process or the execution of a contract to the detriment of the Procuring Entity. Corrupt Practice – the offering.Page 75 Consolidated Blacklisting Report – A report issued by the GPPB that contains a list of people and/or organizations that are barred from participating in any Government procurement project. receiving. Compare corrupt practice. all other related activities. even if. Procuring Entity’s performance of its contractual obligations. distributor or consultant who meets all the eligibility requirements issued by the Procuring Entity. whether in the nature of equipment. stationery. Eligibility – Refers to the status of a Bidder in relation to its legal. (ii) pre-investment or feasibility studies. as specified in the Contract. as shown by eligibility documents submitted to and checked by the BAC.One who undertakes to perform consulting services. and (vi) other technical services or special studies. as well as trucking. Eligibility Screening – see Eligibility Check. for a public or private entity. except consulting services and infrastructure projects. using a non-discretionary. which may be needed in the transaction of public businesses or in the pursuit of any government undertaking. giving. manufacturer. Contract Implementation – The execution of a contract. supplies. Also referred to as Single Source Procurement. uncovering. The offer may be accepted immediately or after some negotiations. supplier. it has initially been declared eligible or post-qualified. Consultant . Contract Termination – Ending of a contract prior to its completion. Direct Contracting – An alternative method of procurement of goods that does not require elaborate bidding documents. but not limited to: (i) advisory and review services. (v) management and related services. Compare fraudulent practice. Eligibility Check – The process of determining the compliance of Prospective Bidders with the eligibility requirements prescribed. Constructor . Foreign Bidder – A bidder who is not a local bidder. Consulting Services – Services for Infrastructure Projects and other types of projects or activities of the Government requiring adequate external technical and professional expertise that are beyond the capability and/or capacity of the Government to undertake such as. “pass/fail” criteria. in some instances. DepED Guidelines on Establishing Procurement Systems and Organizations . Disclosure – The act of disclosing. or personal property of any kind. project or activity. materials for construction. (iv) construction supervision. Goods – Refer to all items. materials and general support services. including non-personal or contractual services such as the repair and maintenance of equipment and furniture. technical and financial competence to comply with the requirements of the contract to be bid. covering the following milestones: effectivity of the contract. or revealing Disqualification – The act of barring a bidder from further participation in the procurement at hand. The supplier is simply asked to submit a price quotation or a pro-forma invoice together with the conditions of sale. janitorial. hauling. final acceptance or project sign-off. (iii) design. furniture. constructor’s performance of his contractual obligations. and payment by the Procuring Entity.
post-qualification. civil works components of information technology projects. opening of bids. and special meetings of the BAC. distributor or consultant who fails to meet any or all of the eligibility requirements issued by the Procuring Entity. supplier. communication facilities. demolition. IAEB – Invitation to Apply for Eligibility and to Bid. and other services essential to the operation of the Procuring Entity. Limited Source Bidding – An alternative method of procurement for Goods and Consulting Services that involves direct invitation to bid by the concerned Procuring Entity from a set of pre-selected suppliers or consultants with known experience and proven capability on the requirements of the particular contract. as well as procurement of materials and supplies provided by the Procuring Entity for such services. to whom the contract will be awarded. Notice of Award – The document issued by the HOPE to the bidder.Page 76 security. constructor or consultant. that in an agency. Manuscripts . usually as a printout from a computer in camera-ready form. Ineligible Bidder – A constructor. or office where the procurement is decentralized. (IRR-A Section 5[k]) Head of the Procuring Entity – (i) the head of the agency or body. the Head of each decentralized unit shall be considered as the HOPE subject to the limitations and authority delegated by the head of the agency. This serves as the notice to the public and all interested parties of the procurement opportunity. texts and visuals) submitted to the publisher or printer in preparation for publication or printing. manufacturer. media advertisements. or office.. contract award. Infrastructure Projects – Include the construction. Notice of Eligibility – The document issued by the BAC to the eligible bidder/s formally informing the same that he/she/they met the eligibility requirements issued by the Procuring Entity.is the material (i. flood control and drainage. hospital buildings. Motion for Reconsideration – In procurement. but not be limited to. The term “related” or “analogous services” shall include. whereby the Procuring Entity directly negotiates a contract with a technically. and other related construction projects of the government. railways. Observer – One who is invited to attend and observe all stages of the procurement.e. or his duly authorized official. Provided. improvement. repair. Liquidated Damages – Damages agreed upon by the parties to a contract. legally and financially capable supplier. Notice of Ineligibility – The document issued by the BAC to the bidder/s who failed to meet any or all of the eligibility requirements issued by the Procuring Entity. Negotiated Procurement – An alternative method of procurement of goods. sanitation. restoration or maintenance of roads and bridges. sewerage and solid waste management systems. irrigation. lease or purchase of office space. seaports. health maintenance services. airports. bid evaluation. infrastructure projects and consulting services. department. and related or analogous services. shore protection. to be paid in case of breach thereof. department. it is an application made to the BAC for the purpose of obtaining a rule or order setting aside a previous decision. however. national buildings. especially: the pre-bid conference. Notice to Proceed – The document issued by the HOPE to the winning bidder to proceed with the implementation of the contract. (IRR-A Section 5[n]) Also referred to as civil works. energy/power and electrification facilities. school buildings. DepED Guidelines on Establishing Procurement Systems and Organizations . water supply. rehabilitation.
and the Technical Support Division (TSD) which performs other procurement functions. asking the latter to clarify a particular provision of the Bidding Documents. or to exonerate himself from some responsibility which would attach to him unless he express his negative assent (Black’s Law Dictionary. etc. headed by the Secretary of Education.is a person or firm whose business is the publishing of books. where all officials involved in the procurement meet and discuss all aspects of the transaction. Repeat Order – An alternative method of procurement of goods from the previous winning bidder. newspapers. financial and technical requirements of the bid. the schools.Page 77 Performance Security – A security posted by the winning bidder to guarantee the faithful performance by the same of its obligations under the contract prepared in accordance with the bidding documents. headed by the Schools Division Superintendent. based on the procurement checklist.an organic office in the DepED Central Office comprised of the BAC Secretariat Division which performs BAC Secretariat functions.) Public Bidding – See Competitive Bidding. The object of such declaration is usually to save some right which would be lost to him if his implied anent could be made nil. Procurement – The acquisition of Goods. availability of the pertinent budget release for the project/ contract. printed music. or already performed. the Division Offices. DepED Guidelines on Establishing Procurement Systems and Organizations . information and statements made in the Eligibility Documents by the Bidder who submitted the Lowest Calculated Bid. among others. whereby he expresses his dissent or disapproval. whenever there is a need to replenish goods procured under a contract previously awarded through Competitive Bidding. Procuring Entity – Refers to the Central Office. the bidding documents. Procurement shall also include the lease of goods and real estate. headed by the Regional Director. Post-qualification – The process of validating and verifying the documents. Procurement Service . and the attached agencies/offices. Procurement Unit – Refers to the office of the Procuring Entity that carries out the procurement function in the field offices of the department. Consulting Services. Pre-bid Conference – is the forum where the Procuring Entity’s representatives and the Prospective Bidders discuss the different aspects of the procurement at hand. including the technical specifications. Procurement Observation Report – The report submitted by the Observer to the HOPE. Pre-procurement Conference – is the forum called by the BAC for procurements undertaken through public bidding. as well as ascertaining the said Bidder’s compliance with the legal. 5th Ed. magazines. headed by the School Principal/School Head. and the contracting for Infrastructure Projects by the Procuring Entity. Proposal – See Bid Protest – A formal declaration made by a person interested or concerned in some act to be done. Request for Clarification – A written request submitted by the bidder to the BAC. the ABC. headed by a Director or its equivalent. or affirms the act against his will. the applicability and appropriateness of the recommended method of procurement and the related milestones. Project Management Office – The unit/office/department of the Procuring Entity that is primarily responsible for implementing and managing a project. the Regional Offices. Public Monitoring – A principle in Government procurement… Publishers .
(Black’s Law Dictionary.Page 78 Shopping – An alternative method of procurement of goods whereby the Procuring Entity simply requests for the submission of price quotations for readily available off-the-shelf goods or ordinary/regular equipment to be procured directly from suppliers of known qualifications.1) Standard – The established and fixed measure used in assessing quality or performance. Tender – See Bid. Subcontractor – One who takes a specific part of the work undertaken by the principal contractor.someone whose business is to supply a particular service. product or commodity for a public or private entity Technical Bid – One of two components comprising a bid. (IRR-A Section 54. including those affecting the technical specifications. Both actions are for the purpose of evading or circumventing the requirements of law and this IRR-A. Supplier . especially the necessity of public bidding and the requirements for the alternative methods of procurement. 5th Ed. DepED Guidelines on Establishing Procurement Systems and Organizations . Splitting of Contracts – The act of dividing or breaking up government contracts into smaller quantities and amounts. equipment. Spare parts – Refer to extra components. instruments or parts of machinery or apparatus that replace the ones that are damaged or worn out. procurement schedule.) Submitted bid price – The bid price as indicated in the financial proposal submitted by the bidder. tools. Supplemental/Bid bulletin – A notice issued by the Procuring Entity to Prospective Bidders with respect to any clarifications or modifications in the Bidding Documents. Single source procurement – See Direct Contracting. It also is the act of dividing contract implementation into artificial phases or sub-contracts. the other being Financial Bid. and other similar matters. Specification – A description of what the purchaser requires and what a bidder must offer. Technical Support Division – an organic office in the Central Office under the Procurement Service which provides technical assistance to the BAC. eligibility requirements.
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