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School-Based Feeding Program

SY 2014-2015
5 “Rights” in Public Procurement
Procurement
Source
Quantity
Quality
Price
Time/
Delivery
Value for Money
Philippine Procurement Paradigm

MoMm
NEEDS SATISFACTION
End
User
BAC
PS-BAC
Sec
HOPE
Identify
Assess Selection
Implement
BAC
TWG
HOPE
End
User
PS-BAC
Sec
• Cost-benefit
analysis
• Feasibility study
• Market study
• PPMP
• Review studies
• Consolidate into APP
• Decide procurement
method
• Approve APP
• Determine readiness
• Post/Advertise
opportunity
• Open and evaluate
bids
• Post-qualify
• Award and enter into
contract
• Oversee
implementation
• Inspect and
accept deliveries
• Release payment
Budget
Government Procurement Reform Act
RA 9184
General Provision : Section 2: Declaration of Policy
“ ...to promote the
ideals of good
governance ...”
Government Procurement Reform Act
RA 9184
General Provision : Section 2: IRR
 “...to promote the ideals of good
governance...”

 “...to adhere to the principle of transparency,
accountability, equity, efficiency, and
economy...”

 “... procurement...shall be competitive and
transparent, and shall therefore go through
public bidding...”
Government Procurement Reform Act
RA 9184
General Provision : Section 3: Governing Principles
 Transparency

 Competitiveness

 Streamlined Process: Simplicity & Adaptability
to advances in technology

 Accountability

 Public Monitoring
Government Procurement Reform Act
RA 9184
General Provision : Section 3: Governing Principles
 Transparency

 Procurement process, contract
implementation (Section 3)

 Wide dissemination of bid opportunities,
participation of pertinent NGOs (Section 3,
IRR)

Government Procurement Reform Act
RA 9184
General Provision : Section 3: Governing Principles
 Competitiveness

 Extending equal opportunity to enable
contracting parties to participate in public
bidding

Government Procurement Reform Act
RA 9184
General Provision : Section 3: Governing Principles
 Streamlined Process, Simplicity and
Adaptability to advances in technology

 Uniform application to all government
procurement

 Ensure effective and efficient method

Government Procurement Reform Act
RA 9184
General Provision : Section 3: Governing Principles
 Accountability

 Public officials, private parties are – when
warranted – investigated & held liable

Government Procurement Reform Act
RA 9184
General Provision : Section 3: Governing Principles
 Public Monitoring

 Guarantee that contracts are ---

 Awarded per RA 9184 & IRR
 Performed strictly per specifications

Government Procurement Reform Act
RA 9184
General Provision : Section 4: Scope & Application

What’s covered?
Procurement
What’s procured?
Goods
Infrastructure Projects
Consulting Services
Who procures?
Government
Where do funds
come from?
Local or Foreign
Government Procurement Reform Act
RA 9184
General Provision : Section 4: Scope & Application
Procurement
Acquisition

Goods
Consulting Services
&
Infrastructure Projects

Lease

Goods
&
Real Estate
Government Procurement Reform Act
RA 9184
General Provision : Section 4: Scope & Application
Government
Branches
Instrumentalities
Departments
Agencies
Offices
Bureaus
GOCCs
LGUs
GFIs
SUCs
Constitutional Commissions/Offices
Government Procurement Reform Act
RA 9184
General Provision : Section 4: Scope & Application
Goods
Items

Supplies

Materials

Gen. Support Services

needed in

transaction of public business

or

pursuit of government undertaking,
project, activity
Government Procurement Reform Act
RA 9184
General Provision : Section 4: Scope & Application
Infrastructure
Projects

construction

improvement

rehabilitation

demolition

repair

restoration

maintenance

Construction Projects

of government


Government Procurement Reform Act
RA 9184
General Provision : Section 4: Scope & Application
Consulting
Services

adequate

external

technical

Professional

Expertise

beyond capability

and/or

capacity

of government


Government Procurement Reform Act
RA 9184
General Provision : Section 4: Scope & Application
Funding



Local

or
Foreign
Government Procurement Reform Act
RA 9184
General Provision: Section 6
Section 6: Standardization of Procurement
Processes and Forms

 to avoid confusion & ensure transparency

Government Procurement Reform Act
RA 9184
General Provision: Section 6:
Standardization of Procurement Processes and Forms
 GPPB – development & approval of GPMs,
PBD, other forms

 mandatory upon all PEs

Government Procurement Reform Act
RA 9184
General Provision: Section 6:
Standardization of Procurement Processes and Forms
 When necessary, modifications may be made
subject to GPPB approval
Government Procurement Reform Act
RA 9184
General Provision: Section 7
Section 7: Procurement Planning

 Form PPMP to APPs

 General Rules

Government Procurement Reform Act
RA 9184
Procurement Organization
Sections 11-16, 63-64

Procurement Organization

Government Procurement Reform Act
RA 9184
Procurement Organization
Bids and Awards Committee
(BAC)

BAC Secretariat

Observers

Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC
How many
per PE?

One (1) BAC
In PE’s head office

BUT

Separate BACs
where number and
complexity of items to be
procured so warrant


Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC
Who
comprises?

5-7 members
HOPE designates


Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC
Who
comprises?

NGAs, GOCCs, GFIs, SUC:

Permanent
Chairman
*3rd ranking permanent

2 Officers
*5th ranking permanent
*with knowledge, experience, expertise
*one (1) each from legal or
admin, and finance




Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC
Who
comprises?

NGAs, GOCCs, GFIs, SUC:

Provisional
Officer
*w/technical experience
*w/knowledge, experience, expertise

Rep from end-user unit
*w/knowledge, experience, expertise




Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC
Term
of
office?

One (1) year
*from date of appointment
*renewable



Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC
What are
its functions?

advertises and/or posts
ITB/REI

conducts pre-proc &
pre-bid conferences

determines eligibility
of prospective bidders


Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC
What are
its functions?

receives bids

conducts evaluation of
bids

undertakes post-qual
proceedings


Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC
What are
its functions?

resolves MRs

recommends awards
of contracts to HoPE

recommends
imposition of sanctions


Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC
What are
its functions?

recommends use of
alternative methods of
procurement
performs such other
functions, including
creation of TWG
ensures that PE abides
by standards, prepares
PMR


Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC
How many
required
for quorum?

Quorum

Majority of total BAC
composition
Chair/Vice Chair must be
present
Valid and binding act

At least a majority of those
present
Chair/Vice Chair votes in
case of tie


Government Procurement Reform Act
RA 9184
Procurement Organization

The Observers
What are
the
requirements?


His/Her organization must be
SEC- or CDA-registered

Knowledge, experience,
expertise in subject matter of
contract

Absence of actual or potential
conflicts of interest

Any other relevant criteria
*BAC determines this

Government Procurement Reform Act
RA 9184
Procurement Organization

The Observers
What are
the
responsibilities?

Prepares report
(jointly/separately)
*assess extent of BAC’s compliance
*submit to HoPE; cc BAC Chair
Submit report to PE, cc GPPB &
Ombudsman
*no report = correct procedure
followed

Inhibit & notify in writing the PE
of actual/potential conflict of
interest
Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC Secretariat
How formed?


HOPE may

designate existing organic
office
with in PE

create procurement units
to serve as BAC Sec
Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC Secretariat
Who heads
the BAC Sec?


In central offices:

*at least 5th ranking
permanent employee

*if not available, permanent official
of next lower rank
Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC Secretariat
Who heads
the BAC Sec?


In bureaus, regional offices,
subregional/district offices
offices:

*at least 3rd ranking
permanent employee

*if not available, permanent official
of next lower rank
Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC Secretariat
What are
its functions?


provides admin support to BAC

organizes and makes all necessary
arrangements
for BAC meetings, conferences

prepares minutes
of BAC meetings and resolutions
Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC Secretariat
What are
its functions?

takes custody
of procurement docs and other
record

manages sale & distribution
of Bidding Documents

advertises and/or post bidding
opportunities
Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC Secretariat
What are
its functions?


assists
in managing the procurement
process
monitors procurement activities &
milestones
for proper reporting to relevant
agencies, when required

consolidates PPMPs from various
units of PE, to make them
available for review
Government Procurement Reform Act
RA 9184
Procurement Organization

The BAC Secretariat
What are
its functions?

acts as central channel of
communications

*for BAC
With
*end users, PMOs, other units of
line agency, other government
agencies, provides of goods,
infrastructure projects, and
consulting services, observers,
general public
Government Procurement Reform Act
RA 9184
Procurement Organization

GPPB
Policy-Making

 Amend implementing rules & regulations of
procurement law (quasi-legislative function)

 Prepare generic procurement manual and
standard bidding forms
Government Procurement Reform Act
RA 9184
Procurement Organization

GPPB
Capacity Development

 Establish a sustainable training program

Monitoring

 Assist procuring entities improve their
compliance

 Review effectiveness of procurement law
Government Procurement Reform Act
RA 9184
Procurement Methods

 All Procurement shall be done through competitive
bidding except as provided in R. A. 9184

 Resort to alternative methods shall be made

 Only in highly exceptional cases
 To promote economy and efficiency
 Justified by conditions specified in R.A. 9184 and
its IRR
 MOST ADVANTAGEOUS PRICE TO THE GOV’T.
Government Procurement Reform Act
RA 9184
Procurement Methods
Method Goods Infra Cons
1. Competitive Bidding   
2. Limited Source Bidding  
3. Direct Contracting 
4. Repeat Order 
5. Shopping 
6. Negotiated Procurement   
DIRECT CONTRACTING
• Applicability - Goods
• Conditions :

– -Items of proprietary nature from proprietary
source
– -Critical components from a specific supplier is a
condition precedent to hold a supplier to
guarantee its project performance
– -Items sold by an exclusive manufacturer or dealer
DIRECT CONTRACTING
• NO OTHER SUPPLIERS SELLING IT AT LOWER
PRICES

• NO SUITABLE SUBSTITUTE CAN BE OBTAINED

• AT MORE ADVANTAGEOUS TERMS TO THE
GOVERNMENT

DIRECT CONTRACTING
• NPM 42-2012
- To justify the need to procure through DC, the
BAC should conduct a survey of the industry
and determine the supply source
- The survey should confirm the exclusivity of
the source of goods to be procured
- The survey must be conducted prior to the
commencement of the procurement process

SHOPPING
• APPLICABILITY - GOODS
• CONDITIONS
- Under Sec. 52.1 (a)
a. There is unforeseen contingency requiring immediate
purchase
b. The amount does exceed the threshold of P100,000.00
-Under Sec. 52.1 (b)
a. Ordinary or regular office supplies and equipment not
available in PS-DBM
b. The amount does not exceed the threshold of P500,000.00

SHOPPING AND SMALL VALUE
PROCUREMENT
• PROCEDURAL GUIDELINES
1. Prepare Request for Quotation (RFQ)
2. Send RFQ to at least 3 suppliers (maybe 1 under
Sec. 52.1 (a)
3. Prepare Abstract of Quotations
4. Extend deadline if no quotation is received
5. Award to LCB/HRB that complies with
specifications and approved budget for the
contract (ABC)

SHOPPING AND SMALL VALUE
PROCUREMENT
• Procedural Guidelines

a. RFQ should indicate the following:
- Technical Specifications
- Quantity
- Approved budget for the contract
- Terms and conditions of the item to be procured;
and
- Manner by which price quotation must be
submitted (i.e. open or sealed quotations)



SHOPPING AND SVP
• Procedural Guidelines
- Information relating to examination,
evaluation & comparison of price quotations
shall be kept confidential & should not be
disclosed to any other party except to those
officially concerned until award
- Post RFQ for 7 CD in the website of PhilGEPS
and procuring entity concerned, if available ,
and at any conspicuous places
SHOPPING AND SVP
PROCEDURAL GUIDELINES

• EXCEPTIONS TO SEVEN (7) CD RFQ POSTING:
a. When there is an unforeseen contingency requiring
immediate purchase under Sec. 52.1(a)
b. RFQs with ABC equal to Php 50,000.00 and below
c. Post awards in PhilGEPS and procuring entity and at
any conspicuous place except with ABCs equal to
Php 50,000.00 and below




SHOPPING AND SVP
PROCEDURAL GUIDELINES

• PE must validate whether it is entering into a
contract with a technically, legally and
financially capable supplier, contractor or
consultant by requiring the submission of
relevant documents or through other means

NEGOTIATED PROCUREMENT-SVP
• APPLICABILITY -ALL
CONDITIONS:
a. Does not fall under Shopping
b. Amount does not exceed the threshold Php 500,000.00
- Award of contract maybe made even if only one (1) supplier
submitted a quotation/proposal provided:
• At least three (3) suppliers were invited to submit quotations;
and
• The submission complies with the specifications, terms and
conditions required by the Procuring Entity

NEGOTIATED PROCUREMENT
• EMERGENCY CASES-
ALL
Conditions:

a. Imminent danger to
life or property during
a state of calamity

b. When time is of the
essence arising from
natural or man-made
calamities



c. Other causes where
immediate action is
necessary

• To prevent damage to
or loss of life or
property

• To restore vital public
services,
infrastructure
facilities, and other
public utilities
NEGOTIATED PROCUREMENT
• EMERGENCY CASES

- Negotiate with any
supplier, contractor, or
consultant with technical,
legal, and financial
capability
EMERGENCY CASES
• NPM 95-2012

The PE and the HOPE are in
the best position to
assess, evaluate, and
determine that the
grounds and the causes
adverted to, justifying the
use of negotiated
procurement through the
“emergency” modality

are truly existing and
the harm or loss sought
to be prevented are
real and not merely
based on speculation,
surmise or weak
probability
Technical Support Division (TSD)
DepEd Procurement Service
Standard Bidding Procedures (Goods & Infra)
Pre-Procurement
Conference
Pre-Bid
Conference
Bid Evaluation
& Ranking
Post-qualification
Award of
Contract
Advertisement/Posting
DEADLINE OF SUBMISSION OF BIDS & BID OPENING
Opening of
FINANCIAL ENVELOPE
Opening of
TECHNICAL EVELOPE
and Preliminary Investigation
RA 9184 “The Government Procurement
Reform Act” (An Overview)
QUESTIONS?