Professional Documents
Culture Documents
Bidding Procedures For The Procurement of Goods and Services
Bidding Procedures For The Procurement of Goods and Services
PROCUREMENT
OF GOODS AND SERVICES
CAPACITY DEVELOPMENT DIVISION
Government Procurement Policy Board
Technical Support Office (GPPB-TSO)
Exception:
Procurement.
Alternative
Methods
of
COMPETITIVE BIDDING
WHAT IS COMPETITIVE BIDDING?
It is a method of procurement which is open to
participation by any interested party and which
consists of the following processes: eligibility
screening of prospective bidders, evaluation of bids,
post-qualification, and award of contract. (Section
5(e) of RA 9184 and its IRR)
COMPETITIVE BIDDING
Garcia vs. Burgos (291 SCRA 546)
By its nature and characteristics, a competitive
public bidding
aims to protect public interest by
giving the public the best
possible advantages
through open competition
COA vs. RTC-NCRJR (GR NO. 85285, 7/7/89)
Purpose is to avoid/preclude suspicion of favoritism
and anomalies in the execution of public contracts.
COMPETITIVE BIDDING
Municipal Order requiring an accreditation
process for Bidders as a condition precedent for
their participation in procurement activities of the
local government unit runs counter RA 9185 and
its IRR would limit the participation of bidders
only to those accredited suppliers, to the
exclusion and prejudice of other bidders in the
market, it in fact contravenes the very basic
principles of competitive bidding. (NPM 47-2013)
Submission of
Bids
Bid Evaluation
& Ranking
Advertisement
Pre-Bid
Conference
Opening of
1st Env. - Eligibility
Docs & Technical
Proposal
Opening of 2nd
Envelope Financial
Proposal
Post-qualification
Award of
Contract
I. PRE-PROCUREMENT
CONFERENCE
Purpose: Determine readiness of procurement
Conducted prior to advertisement/posting of the
Invitation to Bid
Mandatory for projects with ABC above PhP 2M
Attended by the following:
a)BAC
b)BAC Secretariat
c)TWG
d)Consultants
e)End-user unit/Other officials
II. ADVERTISEMENT/POSTING OF
THE INVITATION TO BID
Importance:
Signals the start of the bidding process.
Procurement process should be made within 3
months starting from posting and advertisement
until awarding of contract. (Sec. 38.1 IRR)
Signals the availability of the bidding documents
to the prospective bidders. (if not mentioned in the
Invitation to Bid) (Sec. 17.3 IRR)
II. ADVERTISEMENT/POSTING OF
THE INVITATION TO BID
At least once in one (1) newspaper of general nationwide
circulation, which has been regularly published for at least
two (2) years before advertisement date.
Posted continuously for 7 calendar days
PhilGEPS
website of the PE, if any.
website of IFI, if applicable.
At any conspicuous place in the premises of the PE.
Not required for projects with ABC of 2M and below.
10
II. ADVERTISEMENT/POSTING OF
THE INVITATION TO BID
Above 2M
2M and below
Newspaper of General
Nationwide Circulation
PhilGEPS website
Conspicuous Place
Medium
11
Discretionary
14
CLARIFICATION OF BIDDING
DOCUMENTS
Supplemental/Bid Bulletins issued by BAC to
answer requests for clarification (query submitted
10 c.d. before deadline) or interpretation, and upon
BACs initiative to clarify or modify any provision of
Bidding Docs. (at least 7 c.d. before deadline for
bids).
Posted in PhilGEPS and PEs website
Bidders who have submitted bids before issuance
of Supplemental/Bid Bulletin must be informed in
writing and allowed to modify or withdraw their
respective bids
15
CLARIFICATION OF BIDDING
DOCUMENTS
22.5.2 RA 9184 IRR allows PEs to issue Supplemental/Bid
Bulletins upon their initiative for the purpose of clarifying or
modifying any provision in the Bidding Documents,
including the IB.
PE has the authority to revise or amend any statement in
the Bidding Documents, including the IB, specifically when
such revision or amendment is made for the purpose of
clarifying or modifying its provisions.
Supplemental/Bid Bulletins must be posted in the PhilGEPS
and at the PEs website, in order to address aspects of
competition and transparency. (NPM 46-2013)
16
ADDITIONAL REQUIREMENTS
PE cannot compel prospective bidders or the winning
bidder to submit or comply with requirements not initially
provided in the Bidding Documents or through any
Supplemental/Bid Bulletin issued by the PE for the project
that must be posted at the PhilGEPS and the PEs website.
If no Supplemental/Bid Bulletin is issued to reflect changes
in the Bidding Documents, or even if the same was issued
but not posted at the PhilGEPS and PEs websites, the
original provisions contained in the Bidding Documents
remain and the prospective bidder, including the winning
bidder cannot be compelled to abide or comply with the
changes made by the PE. (NPM 24-2013)
17
Two-Envelope System
and
Technical
18
20
22
25
ELIGIBILITY REQUIREMENTS
Class A Documents
1.DTI/SEC/CDA Registration
2.Mayors permit
3.Tax clearance per Executive Order 398, series of 2005,
as finally reviewed and approved by the BIR.
4.Statement of ongoing contracts.
5.Statement of SLCC
6.Audited financial statement
7.NFCC
26
ELIGIBILITY REQUIREMENTS
Class B Document
27
MAYORS PERMIT
Mayors Permit allows an entity to legally
perform the requirements and obligations of the
project and the resultant contract.
It is therefore necessary for the BAC to
determine whether the Mayors Permit for
construction business issued to the construction
company likewise authorizes it to engage in the
business of supplying dump trucks. (NPM 362013)
28
TAX CLEARANCE
Tax Clearance is now included as part of the
Class A legal eligibility documents to be
submitted during the opening of bids. (GPPB
Resolution No.21-2013)
29
TAX CLEARANCE
EO 398 specifically requires the submission of
Tax Clearance issued by the BIR. It refers to the
clearance issued by the Collection Enforcement
Division of BIR attesting that the bidder has no
outstanding Final Assessment Notice and/or
delinquent account.
Hence, submission of tax clearance of the
previous year and application for tax clearance
cannot be considered as compliance. (NPM 022013)
30
TAX CLEARANCE
Submission of BIR receipt for renewal of Tax
Clearance will not suffice in lieu of a valid Tax
Clearance Requirement since substitution is not
allowed under Section 34.2 of the IRR of RA 9184.
The Tax Clearance must be valid and existing at the
time it is submitted to BAC and must be submitted
within three (3) calendar days from receipt of the
notice from the BAC that the bidder has the LCB.
Failure to comply with the requirement for the
submission of a valid Tax Clearance shall be a ground
for post-disqualification of the bidder. (NPM 48-2013)
31
TAX CLEARANCE
Submission of Provisionary Tax Clearance is
not considered as sufficient compliance for
bidding purposes. (GPPB Resolution No. 332013)
32
33
34
Accompanied
35
36
38
39
40
period
as
defined
by
the
Bidding
42
Exceptions
1. Expendable
Supplies
25% of the ABC
Non-expendable Goods
ABC = P1,000,000
ABC = P1,000,000
EXCEPTION:
At least 2 similar
contracts aggregate amount at least
equivalent to required percentage; and
Largest of the similar contracts
amounts to at least 50% of
required percentage.
44
Audited
Financial
Statement
(showing prospective bidders total and
current assets and liabilities. )
NFCC at least equal to ABC.
45
NFCC COMPUTATION
Net Financial Contracting Capacity (NFCC) =
(current assets - current liabilities) (K) MINUS
(outstanding, uncompleted portions under ongoing
contracts + contracts awarded but not yet started)
(K) = 10 (contract is 1 year or less)
15 (contract is more than 1 year to 2 years)
20 (contract is more than 2 years)
* The values of the bidders current assets and current
liabilities shall be based on the data submitted to the BIR,
through its Electronic Filing and Payment System (EFPS)
46
NFCC COMPUTATION
Participating bidder should be required to
submit an NFCC that is at least equal to all
the lots to which it participated in, in order
to establish the bidders financial liquidity
and absorptive capacity in carrying out the
contractual obligations required by the lots
to which it participated in. (NPM 76-2013)
47
BID SECURITY
BID SECURITY
Amount
Form of Bid Security
Bid Security
(% = ABC)
a) Cash or
cashiers/managers
check
2%
b) Bank guarantee/draft
or Irrevocable LC
c) Surety bond callable
upon demand
d) Combination of the
foregoing
e) Bid Securing
Declaration
5%
Proportionate to share of form with
respect to the total amount of
security
No percentage required
49
DISCLOSURE OF RELATIONS
Relatives within the third civil degree of the
following shall be disqualified:
Head of the procuring entity
Members of the BAC, Secretariat and TWG
Head of the end-user unit or project
management office
Project consultants
53
CONFLICT OF INTEREST
The firm that has been engaged to provide consulting
services for the preparation or implementation of a
project, and each of its affiliates, will be disqualified
from subsequently providing goods, works, or services
resulting from or directly related to the firms
consulting
services
for
such
preparation
or
implementation.
There is conflict of interest when the entity that
prepared the plans/drawings likewise participates in
the ensuing procurement activities for the Project.
(NPM 10-2013)
54
55
59
DOMESTIC PREFERENCE
DOMESTIC PREFERENCE
SAMPLE COMPUTATION
Lowest Calculated Bid
Foreign Bidder
Domestic Bidder/Entity
Bid
% Preference
2,653,360.00
x
3,009,492.00
15%
398,004.00
+ 2,653,360.00
Bid as
increased
Result
3,051,364.00
3,009,492.00
VIII. POST-QUALIFICATION
To determine whether bidder with LCB complies
with and is responsive to all requirements and
conditions of eligibility and the bidding of the
contract to be declared the Lowest Calculated
and Responsive Bid (LCRB)
A non-discretionary pass/fail criterion shall be
used to Verify, Validate and Ascertain all
statements and documents (licenses, certificates,
etc.)
To be accomplished not more than 7 c.d. from
determination of LCB. (Exceptional cases not to
exceed 30 c.d.)
62
VIII. POST-QUALIFICATION
BAC will notify the Bidder with the Lowest
Calculated Bid that it was determined as such.
Within 3 c.d. from receipt of Notice, submit the ff:
1. Latest Income and Business Tax Returns;
2. Certificate of PhilGEPS Registration; and,
3. Other appropriate Licenses and permits
required by law and stated in the Bidding
Documents.
63
VIII. POST-QUALIFICATION
BAC shall recommend award of contract to the
LOWEST CALCULATED AND RESPONSIVE BID
(LCRB) at submitted price or calculated price,
whichever is lower.
In case of approval by HOPE, Notice of Award
should be IMMEDIATELY issued by HOPE to the
LCRB. (HOPE has 7 days to decide w/n to issue
NOA)
64
VIII. POST-QUALIFICATION
The three (3) calendar day period under 34.2 of
the IRR is mandatory and should not be extended.
In case PE accepts the post-qualification
documentary
requirements
beyond
the
reglementary period, it must show that there is a
compelling, sufficient, valid, reasonable, and
justifiable cause for such extension, so that penal
sanction or liability will not set in. Applicable
administrative and civil sanctions or liabilities may
also be imposed against the concerned officials.
(NPM 27-2013)
65
VIII. POST-QUALIFICATION
PE may request for the submission of additional
documents from the bidder in support of the
information it has provided in the bidding
documents.
However, non-submission of the additional
supporting documents requested cannot be a
ground for the bidders post-disqualification, as a
bidder may be post-disqualified only upon
ascertainment, validation, and verification of its
non-compliance with the legal, technical, and
financial requirements of the project as provided
in the bidding documents. (NPM 25-2013)
66
VIII. POST-QUALIFICATION
Should PE decides to extend the period, it must
show and provide compelling, sufficient, valid,
reasonable, and justifiable cause. Such valid
justification, however, will only free officials from
penal sanction or liability, but not from
applicable administrative and civil sanctions or
liabilities under existing laws, rules and
regulations. (NPM 57-2013)
67
FAILURE OF BIDDING
GROUNDS:
1)No bids received
2)Bids received but no one was eligible
3)All bids failed to post qualify
4)Someone post qualified but refused w/o
justifiable cause to accept the award.
68
FAILURE OF BIDDING
EFFECTS:
1)Mandatory review shall be conducted by BAC
2)Based on findings, BAC shall:
Revise terms, conditions, specifications
Adjust ABC, subject to required approvals
3)Re-bidding
4)Re-advertisement
69
70
PERFORMANCE SECURITY
Posted by winning bidder upon signing of contract
to guarantee performance of obligation, in
such form and amount specified in the Bidding
Documents.
EFFECTS OF FAILURE TO POST:
1.Ground for disqualification
2.Next-ranked
LCRB
shall
undertake
postdisqualification
3.Bid security shall be forfeited without prejudice to
the imposition of sanctions
72
PERFORMANCE SECURITY
Submission by the winning bidder of a Performance
Security in the form of a personal check after the signing of
the contract could be considered as a failure to post the
Performance Security in the required form under 39.2 of
the IRR and in the required period for posting under
37.1.4(b) of the IRR.
4.1.5 of the Guidelines provides that the refusal or failure
of a contractor to post the required Performance Security
within the prescribed period is one of the grounds for
blacklisting. (NPM 35-2013)
73
PERFORMANCE SECURITY
Form of Performance
Security
a) Cash or
cashiers/managers
check
Amount
Performance Security
(% equal to the Contract Price)
b) Bank guarantee/draft
or Irrevocable LC
c) Surety bond callable
upon demand
d) Combination of the
foregoing
30%
Proportionate to share of form with
respect to the total amount of
security
74
RESERVATION CLAUSE
HOPE reserves the right to:
Reject any and all bids;
Declare a failure of bidding;
Not award the contract.
GROUNDS:
1. Prima facie evidence of collusion;
2. BAC is found to have failed in following the prescribed bidding
procedures;
3. For justifiable reasons, the award of contract will not redound to
the benefit of the Government:
Physical and economic conditions have significantly changed;
Project is no longer necessary
Source of funds for the project has been withdrawn/reduced.
75
NOTICE TO PROCEED
76
CONTRACT IMPLEMENTATION
GUIDELINES FOR THE
PROCUREMENT OF GOODS,
SUPPLIES AND MATERIALS
77
AMENDMENT TO ORDER
Emergency
Fortuitous event
SUSPENSION OF WORK
79
LIQUIDATED DAMAGES
80
LIQUIDATED DAMAGES
81
ADVANCE PAYMENT
82
ADVANCE PAYMENT
83
THANK YOU!!
Contact us:
Unit 2506 Raffles Corporate Center
F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605
TeleFax: (632)900-6741 to 44
84