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Procurement Standards
II. Alternative Methods
1. Limited Source Bidding*
2. Direct Contracting
3. Repeat Order
4. Shopping
5. Negotiated Procurement
a. Two Failed Biddings
b. Take Over Contracts
c. Emergency Cases
d. Adjacent or Contiguous
e. Agency-to-Agency
f. Scientific, Scholarly or Artistic Work, Exclusive
Technology and Media Services
g. Highly Technical Consultants
h. Defense Cooperation Agreement*
i. Small Value Procurement
j. Lease of Real Property and Venue
k. NGO Participation*
l. Community Participation*
m. UN Agencies, International Organizations or
International Financing Institutions*
Government Procurement Policy Board – Technical Support Office 2
Procuring Entities shall adopt
Public Competitive Bidding as the
GENERAL mode of procurement.
EXCEPTION
CONDITIONS:
Highly specialized types where only a few bidders are known to be
available, or
Major plant components beneficial to limit bidding to known qualified
bidders to maintain uniform quality and performance of the plant
Pre-selection is based on capability and resources to perform the
contract taking into account:
Experience and past performance on similar contracts;
Capabilities with respect to personnel, equipment, and/or
manufacturing facilities; and
Financial position.
REQUIREMENTS PRIOR TO CONDUCT:
End-user to conduct survey of the industry and determine the supply
source. End-user should also justify the necessity for the item that may
be only procured through Direct Contracting and prove that there is no
suitable substitute in the market.
CONDITIONS: (Continuation)
CONDITIONS:
1. Same or lower unit prices than those in the original contract,
provided that such prices are still the most advantageous to the
GOP after price verification;
2. No splitting of contracts, requisitions and Purchase Orders;
CONDITIONS: (Continuation)
3. Availed of within 6 months from the date of the NTP arising from the
4. Not to exceed 25% of the quantity of each item in the original contract;
The phrase “ordinary or regular office supplies” are those supplies,
commodities, or materials which are necessary in the transaction of
official business, and consumed in the day-to-day operations. This will
not include services such as repair and maintenance of equipment and
furniture, as well as trucking, hauling and related ot analogous services.
CONDITIONS [SHOPPING UNDER Sec. 52.1(a)]:
The RFQ may be sent directly to the supplier of known technical, legal
and financial qualifications. Sending of one (1) RFQ will suffice.
Posting of the RFQ may be dispensed with.
CONDITIONS [SHOPPING UNDER Sec. 52.1(b)]:
The BAC shall send the RFQs to at least three (3) suppliers of
known qualifications, and at least three (3) price quotations must
be obtained.
The deadline for submission may be extended thrice, if none or less
than the required number of quotations are received.
In case no supplier responded after the third extension, the BAC
shall conduct a mandatory review in accordance with Section IV(K)
of Annex H.
THRESHOLD FOR UNFORESEEN CONTINGENCIES [Sec. 52.1(a)]
NGAs, GOCCs, GFIs, SUCs and Autonomous Regional Government–
PhP200,000
LGUs :
Maximum Amount (in Philippine Pesos)
Classification
Province City Municipality
1st Class 200,000 200,000 100,000
2nd Class 200,000 200,000 100,000
3rd Class 200,000 160,000 100,000
4th Class 160,000 120,000 100,000
5th Class 120,000 100,000 100,000
6th Class 100,000 100,000 100,000
In the case of Barangays, the maximum amount is PhP50,000
THRESHOLD FOR Sec. 52.1(b)
NGAs, GOCCs, GFIs, SUCs and Autonomous Regional Government–
PhP1,000,000
LGUs :
Maximum Amount (in Philippine Pesos)
Classification
Province City Municipality
1st Class 1,000,000 1,000,000 200,000
2nd Class 1,000,000 1,000,000 200,000
3rd Class 1,000,000 800,000 200,000
4th Class 800,000 600,000 100,000
5th Class 600,000 400,000 100,000
6th Class 400,000 200,000 100,000
In the case of Barangays, the maximum amount is PhP50,000
STANDARD FORM FOR RFQ
The RFQ must indicate the specification, quantity, ABC, and other
terms and conditions of the item to be procured pursuant to Section
3(a) of the Guidelines.
The BAC shall prepare and send the RFQs/RFPs to at least three (3)
suppliers, contractors or consultants of known qualifications.
Receipt of at least one (1) quotation/proposal is sufficient to proceed
with the evaluation thereof.
AWARD OF CONTRACT TO A LONE BIDDER IN SVP
- Disqualified bidders
in previous biddings
for the project shall 2 Failed Mandatory
also be invited Competitive Preparation of
Review RFQ/Bid docs
Bidding/LSB
- Even if only one (1)
bidder should
respond, the BAC
shall proceed with
the negotiation
Invite at least
three (3)
suppliers/ Best Offer Awarding of
contractors/ contract
consultants
Requirements, guidelines,
documents, clarifications, or other
information relative to the
negotiations shall be
communicated on an equal basis.
Criteria in selecting the successful offer:
CONDITIONS:
When the reason or cause for the emergency has already been abated,
adoption of competitive bidding shall be considered.
CONDITIONS:
CONDITIONS:
1. Original contract is a result of competitive bidding;
2. Subject contract has similar or related scopes of work;
3. Within the contracting capacity of the contractor/consultant;
CONDITIONS:
4. In determining the SLCC, NFCC and PCAB license, the sum of the
value of the remaining works for the existing contract and the
ABC of the contiguous or adjacent work shall be considered;
5. The same prices or lower unit prices as the original contract less
mobilization cost,
6. The ABC of the contiguous or adjacent work involved does not
exceed the contract amount of the ongoing project.
7. No negative slippage/delay during the time of negotiation, and
8. Negotiations (e.g. scope of work or terms of reference, unit price
and other terms and conditions) commenced before expiry of
original contract.
WHEN ORIGINAL CONTRACT HAS ALREADY BEEN COMPLETED
All procurement to be undertaken by the Servicing Agency, including
those required for the project, shall be governed by the provisions of RA
9184.
All projects undertaken under A-to-A shall be subject to pertinent
budgeting, accounting, and auditing rules and regulations.
CONDITIONS:
1. The PE shall justify that entering into an A-to-A with the Servicing Agency
is more efficient and economical to the government;
2. The Servicing Agency has the mandate to deliver the goods and
services required to be procured or to undertake the infrastructure
project or consultancy required by the Procuring Agency;
3. Servicing Agency has the absorptive capacity to undertake the project;
4. Servicing Agency owns or has access to the necessary tools and
equipment required for the project;
CONDITIONS:
The End-User
The End-User shall secure a The HoPE shall
shall justify to certificate enter into a
The BAC shall
the BAC that from the MOA with the
issue a
the resort to relevant officer Servicing
Resolution
A-to-A is more of the Agency upon
recommending
efficient and Servicing approval of the
the use of A-to-
economical to Agency that BAC
A to the HoPE.
the the latter recommendati
government. complies with on
the conditions.
Where Goods, Infrastructure Projects and Consulting
Services can be contracted to a particular supplier,
contractor or consultant as determined by the HoPE.
APPLICABILITY:
CONDITIONS:
1. Work involves:
Highly technical or proprietary; or
Primarily confidential or policy determining, where trust and
confidence are the
primary consideration; and
2. Term is, at the most, 6 months, renewable at the option of the appointing
HOPE, but in no case to exceed the term of the latter.
APPLICABILITY:
Goods and Consulting Services to be used by AFP
major defense equipment or materiel
defense-related consultancy services
CONDITIONS:
1. Prior approval of the President;
2. Expertise or capability required is not available locally;
3. DND Secretary has determined that the interests of the country shall be
protected by negotiating directly with an agency or instrumentality of
another country with existing defense cooperation agreement or
diplomatic relations with the Philippines; and
4. Performance security under §39 of IRR of RA 9184 shall be required to
supplier
Procurement covering lease of
CONDITIONS:
Appropriation law or ordinance earmarks an amount to be contracted
to NGOs
CONDITION:
•Legal Requirements
•Technical Requirements
•Financial Requirements
For non-registered community-
based service providers
• Legal Requirements
• Certificate from the Punong Barangay
• Stating individual members of the group are residents of the
target community(ies)
• Resolution or minutes of the Barangay Assembly
• approving the creation of the community group as a
community-based service provider
For non-registered community-
based service providers
• Technical Requirements
• List indicating the experiences of members of the community-
based service provider
• satisfies the workmanship and skill set requirements for the
procurement at hand
For non-registered community-
based service providers
• Financial Requirements
• Guidelines for the establishment of a financial management
system necessary for the performance of the project and the
implementation of a payroll system
Option of Community Groups
CONDITIONS:
Procurement from UN Agencies, IOs or IFIs, of any of the following:
a. Small quantities of off-the-shelf goods, primarily in the fields of education
and health;
b. Specialized products where the number of suppliers is limited; or
c. Goods, Infrastructure Projects and Consulting Services, involving advanced
technologies, techniques and innovations not locally available as certified
by the HoPE,.
The BAC shall indicate in the RFQ or RFP at what stage of the
Direct Contracting For ABCs
[Section 50] above
P500K
Shopping [Sec 52.1(b)]
For For ABCs For ABCs
Emergency Cases above
ABCs above
(Section 53.2)] P500K
above P500K
P500K
Professional Income/
Mayor’s/ PhilGEPS PCAB Omnibus
License /CV NFCC Business
Alternative Modality Business Reg. License Sworn
(Consulting (Infra.) Tax
Permit Number (Infra.) Statement
Services) Return
Take-Over of Contracts
(Section 53.3.2; for new
bidders)
Adjacent/ Contiguous
(Section 53.4)
Scientific, Scholarly or
Artistic Work, Exclusive For ABCs
above
Technology and Media
Services (Section 53.6) P500K
Professional
Mayor’s/B PhilGEPS PCAB Income/ Omnibus
License /CV NFCC
Alternative Modality usiness Reg. License Business Sworn
(Consulting (Infra.)
Permit Number (Infra.) Tax Return Statement
Services)
Highly Technical
Consultant (Section
53.7)
Small Value For ABCs For ABCs
Procurement (Section above above
53.9) P500K P50K
Lease of Real Property Except for Except for Except for
Or Venue (Section gov’t gov’t gov’t
53.10) agencies agencies agencies
as lessors as lessors as lessors
For individuals engaged under Sec. 53.6 (Scientific, Scholarly…), 53.7
(Highly Technical Consultant) and 53.9 (Small Value Procurement) of
the IRR of RA 9184, only the BIR Certificate of Registration shall be
submitted in lieu of Mayor’s Permit.
For Two-Failed Biddings and LSB, the BAC shall require the submission of a
Certificate of PhilGEPS Registration in accordance with Sec. 8.5.2 of the
IRR of RA 9184
Generally, invitation of Observers are not required when resorting to
alternative methods of procurement except in those where competitive
bidding or semblance a semblance thereof is still present, such as in
Limited Source Bidding and Negotiated Procurement (Two Failed
Biddings) under Sec. 49 and Sec. 53.1, respectively, of the revised IRR.
1. Shopping (b)
2. Negotiated Procurement under Emergency Cases
3. Small Value Procurement
4. Lease of Real Property and Venue
In no case shall WS be
Two-Failed Biddings required in the
procurement of
Consulting Services.
Alternative Method of
Performance Security (PS) Warranty Security (WS)
Procurement
Procuring Entity may require PS Procuring Entity may require
depending on the nature of the WS depending on the nature
procurement project. However, of the procurement project.
for Infrastructure Projects, PS is In no case shall WS be
Emergency Cases required. required in the procurement
of Consulting Services.
Take-over of Contracts
Adjacent/Contiguous For Infrastructure Projects,
WS is required.
Alternative Method of
Performance Security (PS) Warranty Security (WS)
Procurement
Procuring Entity may require PS Procuring Entity may require
depending on the nature of the WS depending on the nature
procurement project. However, of the procurement project.
for Infrastructure Projects, PS is In no case shall WS be
Small Value Procurement required. required in the procurement
of Consulting Services.
No procurement shall be undertaken unless in accordance with APP.
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Email address: gppb@gppb.gov.ph