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CAPACITY DEVELOPMENT DIVISION

GOVERNMENT PROCUREMENT POLICY BOARD
TECHNICAL SUPPORT OFFICE (GPPB-TSO)

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PROCUREMENT STANDARD

GENERAL RULE : Sec. 10
All procurement shall be done through competitive
bidding, except as provided in Rule XVI of the IRR.
EXCEPTION
Alternative methods shall be resorted only:
1. In highly exceptional case
2. To promote economy and efficiency
3. Justified by the conditions specified in IRR
4. Prior approval of the HOPE
5. GPPB approval as required under EO 423, S. 2005
(as amended)
6. Most advantageous price for the Government

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ALTERNATIVE METHODS

1. Limited Source Bidding
2. Direct Contracting
3. Repeat Order
4. Shopping
5. Negotiated Procurement

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LIMITED SOURCE BIDDING
(Sec. 49)
APPLICABILITY:
Goods
Consulting services

CONDITIONS:
Highly specialized types where only a few bidders
are known to be available
Major plant components beneficial to limit bidding
to known qualified bidders to maintain uniform
quality and performance of the plant

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equipment. LIMITED SOURCE BIDDING  List shall be maintained by the relevant government authority (RGA)  PE may be the relevant government authority  List shall be updated periodically and submitted to the GPPB  Pre-selection shall based on capability and resources to perform the contract taking into account:  Experience and past performance on similar contracts  Capabilities with respect to personnel. and/or manufacturing facilities  Financial position 5 .

LIMITED SOURCE BIDDING PRE-SELECTION PROCEDURES PER GPM GPPB Resolution 06-2012 PE through BAC Acquires/Issues a Pre- identifies LSB as selected List applicable mode HOPE transmits list to the GPPB GPPB-TSO PE posts procurement acknowledges receipt opportunity and and posts the list in the conducts LSB website (ministerial) 6 .

LIMITED SOURCE BIDDING PRE-SELECTION PROCEDURES GPPB Resolution 06-2012 Relevant Y Request for a Government List Authority? N PE represents Y Limited itself as the Issues a List? Source RGA (self. Bidding generated list N Competitive Bidding 7 .

otherwise. Competitive Bidding should be resorted to in the acquisition of the contemplated service. (NPM 61-2013) 8 . LIMITED SOURCE BIDDING  In order to apply LSB on the procurement of motor vehicle. (NPM 63-2013)  Catering Services does not involve highly specialized requirements. PE should first establish that the motor vehicle sought to be procured is either a highly specialized type of goods or a major plant component. Limited Source Bidding cannot be resorted to in the procurement of Catering Services. and is undoubtedly not a major plant component. Competitive Bidding shall apply.

DIRECT CONTRACTING APPLICABILITY:  Goods CONDITIONS:  Items of proprietary nature from proprietary source  Critical components from a specific supplier to hold a contractor to guarantee its project performance  Items sold by an exclusive manufacturer or dealer  no other suppliers selling it at lower prices  no suitable substitute can be obtained at more advantageous terms to the Government 9 .

DIRECT CONTRACTING  Since there are other Passport Readers available in the market apart from that manufactured by 3M Corporation. which are likewise proprietary in nature that can be obtained.  Even though 3M Passport Reader is proprietary in nature and can be obtained from the proprietary source. Direct Contracting cannot be utilized for the acquisition of brand new passport readers. there may be other Passport Readers in the market. (NPM 41-2013) 10 .

Not to exceed 25% of the quantity of each item 5. No splitting of contracts 3. provided that such prices are still the most advantageous to the GOP after price verification 2. Original contract awarded through competitive bidding 11 . Availed of within 6 months from the contract effectivity date stated in the NTP arising from the original contract. REPEAT ORDER APPLICABILITY:  Goods CONDITIONS: 1. except in cases duly approved by the GPPB 4. Same or lower unit prices.

 The phrase “ subject to post-qualification process described in the Bidding Documents”. REPEAT ORDER  Repeat Order under Section 51 of RA 9184 does not require post-qualification. (NPM 13-2013) 12 . as stated in the provision refers to Competitive Bidding and not to Repeat Order.

Amount does not exceed the threshold 13 . There is an unforeseen contingency requiring immediate purchase 2.1(A) AND (B)]:  Goods CONDITIONS [SHOPPING UNDER §52. Procurement of ordinary or regular office supplies and equipment not available in PS-DBM 2.1(A)]: 1.1(B)]: 1. SHOPPING APPLICABILITY [52. Amount does not exceed the threshold CONDITIONS [SHOPPING UNDER §52.

000 100.000 50.000 14 . the maximum amount is PhP50.000 2nd Class 100.000 50.000 80.000 4th Class 80. GOCCs. 52.1(a)]  NGAs.000 50.000 100.000 6th Class 50.000 50.000 In the case of Barangays. SUCs – PhP100. THRESHOLD FOR UNFORESEEN CONTINGENCIES [S.000 3rd Class 100.000  LGUs – Maximum Amount (in Philippine Pesos) Classification Province City Municipality 1st Class 100.000 60. GFIs.000 50.000 5th Class 60.000 50.000 50.000 50.

NEGOTIATED PROCUREMENT SMALL VALUE PROCUREMENT APPLICABILITY  All types of Procurement CONDITIONS: 1. Procurement does not fall under Shopping [§52] 2. Amount does not exceed the threshold 15 .

000 100. GFIs.000 16 .000 50. SHOPPING [S 52.000 2nd Class 500.000 In the case of Barangays.000 300.000 100.000 50.000 4th Class 400.1(b)] AND SMALL VALUE PROCUREMENT  NGAs.000 3rd Class 500.000 6th Class 200. SUCs – PhP500. GOCCs. the maximum amount is PhP50.000 200.000 500.000 100.000 5th Class 300.000 400.000  LGUs – Maximum Amount (in Philippine Pesos) Classification Province City Municipality 1st Class 500.000 100.000 500.000 50.

technical. BAC may delegate execution  Posting in PhilGEPS required if amount is > PhP50. SHOPPING and SMALL VALUE PROCUREMENT  Decision to resort to shopping/SVP shall be reflected in the Annual Procurement Plan (APP)  After approval. and financial capability through relevant documents or other means 17 .000  Request for Quotation  Extension of deadline for submission of quotation  Award  PE to validate legal.

SHOPPING and SMALL VALUE PROCUREMENT COMMITTEE (SSVPC) Attach copy of DILG Department Order 18 .

SHOPPING and SMALL VALUE PROCUREMENT PROCEDURAL GUIDELINES: Send RFQ to at least 3 suppliers Prepare Abstract Prepare RFQ [may be 1 in case of Quotations of 52.1(a)] Award to Extend deadline if LCB/HRB that no quotation is complies with received specs and ABC 19 .

Mandatory review of the following:  Minimum technical specifications  ABC. which may be adjusted up to 20% from last bidding 20 . NEGOTIATED PROCUREMENT TWO FAILED BIDDINGS APPLICABILITY  All types of Procurement CONDITIONS: 1. Two failed biddings 2.

or other information relative to the negotiations shall be communicated on an equal basis 21 . documents. NEGOTIATED PROCUREMENT TWO FAILED BIDDINGS  BAC shall invite and engage in negotiations with sufficient number of suppliers. contractors or consultants to ensure effective competition  Requirements. clarifications. guidelines.

or consultants on a specified date. NEGOTIATED PROCUREMENT TWO FAILED BIDDINGS  Submission of best and final offer by suppliers. contractors.  Criteria in selecting the successful offer: 1. Offer should not exceed ABC  Observers shall be invited in all stages 22 . Offer should meet the PE’s minimum technical requirements. 2.

NEGOTIATED PROCUREMENT TWO FAILED BIDDINGS PROCEDURAL GUIDELINE Submission and Preparation of Invitation of opening of 1st RFQ bidders offer Submission and Negotiation with opening of best Awarding of bidders and final offer contract (2nd offer) 23 .

the procuring entity has the discretion to resort to alternative methods of procurement. NEGOTIATED PROCUREMENT TWO FAILED BIDDINGS  Where the PE failed to receive any quotations for the procurement of the services of a private counsel despite posting twice in the PhilGEPS website. subject to compliance with the parameters and factors laid out in RA 9184 and its associated IRR. (NPM 09-2013) 24 .

(NPM 72-2013) 25 . NEGOTIATED PROCUREMENT TWO FAILED BIDDINGS  PE can only resort to Negotiated Procurement under Section 53. Negotiated Procurement (Two Failed Biddings) cannot be resorted to.  If the failure of bidding is due to the declaration by the HOPE pursuant to Section 41 of the IRR .1 (Two-Failed Biddings) of the IRR of RA 9184 for the procurement of the Project if the two- failed biddings were due to circumstances enumerated under Section 35 of the same IRR.

infrastructure facilities and other public utilities 26 . NEGOTIATED PROCUREMENT EMERGENCY CASES APPLICABILITY:  All types of Procurement CONDITIONS:  In case of imminent danger to life or property during a state of calamity  When time is of the essence arising from natural or man-made calamities  Other causes where immediate action is necessary • To prevent damage to or loss of life or property • To restore vital public services.

and other public utilities 27 . NEGOTIATED PROCUREMENT TAKE-OVER OF CONTRACTS APPLICABILITY:  All types of Procurement CONDITIONS:  Rescinded or terminated contract  Immediate action is necessary:  To prevent damage to or loss of life or property  To restore vital public services. infrastructure facilities.

NEGOTIATED PROCUREMENT TAKE-OVER OF CONTRACTS  Negotiate starting with the 2nd LCB or HRB at the bidder’s original bid price. then to the next if negotiation fails  If negotiation fails. invite a short list of at least 3 to submit bids and negotiate starting with the LCB or HRB 28 .

NEGOTIATED PROCUREMENT ADJACENT OR CONTIGUOUS APPLICABILITY:  Infrastructure  Consulting Services CONDITIONS: 1. Subject contract is adjacent or contiguous to an on-going infra or consulting 2. Original contract is a result of competitive bidding 3. Subject contract has similar or related scopes of work 29 .

Negotiations commenced before expiry of original contract 30 . No negative slippage 8. Within the contracting capacity of the contractor/consultant 5. The same prices or lower unit prices as the original contract less mobilization cost 6. Amount does not exceed amount of the on-going project 7. NEGOTIATED PROCUREMENT ADJACENT OR CONTIGUOUS 4.

Cost-benefit analysis indicating A-to-A is more efficient and economical 2. Servicing agency has mandate to undertake the project 4. A-to-A does not exceed 25% of PE’s total budget for each category (goods. Servicing agency owns or has access to necessary tools required for the project  Other requirements provided in Implementing Guidelines on Agency-to-Agency Arrangements (GPPB Resolution 18-2007) 31 . consulting) 3. infra. NEGOTIATED PROCUREMENT AGENCY TO AGENCY APPLICABILITY:  All types of Procurement CONDITIONS: 1.

 PPI is not exempt from posting a Performance Security under §39 of RA 9184 and its IRR when entering into a contract with other government agencies and the PE requires such security. rules and regulations established under RA 9184 and its IRR. (PPI) has been given express mandate to be the central/lead agency for procurement of all government agencies ’ requirements for drugs and medicines pursuant to RA 9501. NEGOTIATED PROCUREMENT AGENCY TO AGENCY  PITC Pharma. Inc. RA 9501 does not exempt it from the procurement policies. (NPM 37-2013) 32 . However.

5 (Agency-to-Agency Agreements) may be resorted to. NEGOTIATED PROCUREMENT AGENCY TO AGENCY  For the procurement of CTC. subject to compliance with the prescribed conditions and procedures under existing rules and the Guidelines on Agency-to-Agency Agreements (Guidelines). Negotiated Procurement under Section 53. the more appropriate method to be used is A to A rather than Direct Contracting  In cases where procurement from another agency of the government is more efficient and economical. This rule allows a government entity to procure from another government entity without need of public bidding. (NPM 52-2013) 33 .

NEGOTIATED PROCUREMENT PROCUREMENT AGENT APPLICABILITY:  All types of Procurement CONDITIONS:  HOPE has determined that PE does not have procurement proficiency or capability to undertake a particular procurement ACTIONS AVAILABLE:  Request other GOP agencies to undertake such procurement for them  Recruit and hire consultants or procurement agents to assist them directly and/or train their staff in the management of the procurement function 34 .

which need not be based solely on the PE’s failure to constitute its BAC. the procuring entity may not have the proficiency or capability to undertake the particular procurement activity. (NPM 38-2013) 35 . experience of the members of the BAC. and. magnitude and complexity of the project. other valid and reasonable circumstances.6 of the IRR may also apply in cases where a BAC is validly constituted. the PE may request another government agency to be its Procurement Agent as Section 53. NEGOTIATED PROCUREMENT PROCUREMENT AGENT  Where a PE has determined that it lacks the proficiency or capability to undertake its rehabilitation project. but due to the number of bidding activities to be undertaken by the procuring entity. location and situs of both the principal and the agent.

Work involves:  Highly technical or proprietary  Primarily confidential or policy determining. 6 months. Individual consultant 2. at the most. NEGOTIATED PROCUREMENT HIGHLY TECHNICAL PROCUREMENT APPLICABILITY:  Consulting Services CONDITIONS: 1. but in no case to exceed the term of the latter 36 . where trust and confidence are the primary consideration 3. renewable at the option of the appointing HOPE. Term is.

000 should be posted in the PhilGEPS 37 . Selection to follow the guidelines (GPPB Resolution 08-2009)  Eligibility documents need not be submitted. APP reflect the proposed lease 3. and financially capable through other means  Lease contracts costing > PhP50. Cost-benefit analysis indicating leasing privately-owned real estate or venue is more efficient and economical 2. NEGOTIATED PROCUREMENT LEASE OF REAL PROPERTY APPLICABILITY:  Goods (Real Estate and Venue) CONDITIONS: 1. but PE must validate whether lessor is technically. legally.

subject to the rules provided in the guidelines (GPPB Resolution 12-2007) 38 . NEGOTIATED PROCUREMENT NGO PARTICIPATION APPLICABILITY:  All types of Procurement CONDITIONS:  Appropriation law or ordinance earmarks an amount to be contracted to NGOs  PE may opt to conduct public bidding or negotiated procurement for the selection of NGO.

PE to propose procedures. NEGOTIATED PROCUREMENT COMMUNITY PARTICIPATION APPLICABILITY:  Delivery of goods. and contract packaging for GPPB approval 39 . In the interest of project sustainability or to achieve certain specific social objectives 2. specifications. including non-consulting services and simple infrastructure projects CONDITIONS: 1.

vaccines or drugs) 40 ..g. primarily in the fields of education and health  Specialized products where the number of suppliers is limited (e. NEGOTIATED PROCUREMENT UN AGENCIES APPLICABILITY:  All types of Procurement CONDITIONS:  Procure from UN Agencies  Small quantities of off-the-shelf goods.

000 and below  Negotiated Procurement under Two Failed Biddings [§53.11]  Small Value Procurement [§53.000 and below .1]  NGO Participation [§53.1)  Advertisement and posting for the following methods may be dispensed with provided that the BAC through its Secretariat shall post the Invitation or Request for Submission of Price Quotations:  Shopping [§52.1)  Splitting of contracts strictly prohibited (S54.9]  Except: PhP50. OTHER TERMS AND CONDITIONS  Most advantageous price for government should be obtained (S48.1(b)]  Except: PhP50.

2]  Small Value Procurement [§53. except:  Shopping [§52]  Emergency Cases [§53. except in Limited Source Bidding  Performance and warranty securities necessary. OTHER TERMS AND CONDITIONS  ALL awards should be posted. except  Shopping and Small Value Procurement with ABC of PhP50.10]  Procurement from UN agencies [§53.000 and below  Bid security NOT necessary.13] 42 .9]  Lease of Real Property [§53.

SUMMARY Method Goods Infrastructure Consulting 1. Repeat Order    4. Negotiated Procurement    43 . Shopping    5. Direct Contracting    3. Limited Source Bidding    2.

Small Value Procurement       2. Emergency Cases    4. Two Failed Biddings   3. Adjacent or Contiguous      6. SUMMARY Negotiated Procurement Goods Infra Consulting 1. Agency to Agency 44 . Take Over Contracts   5.

SUMMARY Negotiated Procurement Goods Infra Consulting    7. Highly Technical Consultants    9. UN Agencies 45 . NGO Participation    11. Lease of Real Property    10. Community Participation    12. Procurement Agent    8.

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