BIDDING PROCEDURES FOR

THE PROCUREMENT
OF GOODS AND
INFRASTRUCTURE PROJECTS

1
 PROCUREMENT STANDARD

 Public procurement as a rule shall be

conducted through public bidding (Art.IV, Sec.10)

 Alternative methods of procurement must only

be resorted to when competitive bidding is not

a feasible option (Art. XVI, Sec.48)

2
Objectives of Competitive Bidding

 To secure for the government the lowest possible price

under the most favorable terms and conditions.
 To curtail favoritism in the award of government
contracts;
 Avoid suspicion of anomalies; and
 Place all bidders in equal footing

3
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: advertisement, pre-bid
conference, eligibility screening of prospective bidders,
receipt and opening of bids, evaluation of bids, post-
qualification, and award of contract. (Section 5(h), IRR of
RA 9184)

4
STANDARDIZED BIDDING PROCEDURE FOR
GOODS AND INFRA
Pre-Procurement Pre-Bid
Advertisement
Conf. Conference

Opening of
Submission of Opening of 2nd
1st Env. - Eligibility
Bids Envelope – Financial
Docs & Technical
Proposal
Proposal

Bid Evaluation Post-qualification Award of

& Ranking Contract

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 I. PRE-PROCUREMENT CONFERENCE

 Conducted prior to advertisement/posting of the

Invitation to Bid

 Mandatory for projects with ABC above PhP 2M (goods)

or 5M (infra projects)

 Attended by the following:

a) BAC
b) BAC Secretariat
c) TWG
d) Consultants
e) End-user unit/Other officials

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 PRE-PROCUREMENT
CONFERENCE (Sec. 20)

Objective

•Ensure project is in accordance with the project and included in the approved
Annual Procurement Plan (APP) of the PE.
•Confirm the description and scope of the contract, the approved budget for the
contract (ABC) and contract duration.

•Determine readiness of the procurement

Availability of appropriations and programmed budget for the contract

Completeness of bidding documents in accordance to guidelines

For infra: completion of detailed engineering according to standards

For infra: ROW ownership of property confirmed

 PRE-PROCUREMENT CONFERENCE

• Review, modify and agree on the criteria for eligibility

screening, evaluation and post-qualification;

• Review and adopt procurement schedule and timeframes.

Ensure specifications are minimum requirements and in

accordance to set standards.

Ensure that the estimated budget for the contract (ABC) is

justified and/or supported with market study or historical data.
 REFERENCE TO BRAND NAMES

Sec. 18 of RA 9184 and its IRR

 The prohibition applies to the procurement of goods, and goods
component of Infrastructure Projects and Consulting Services.

 Specifications should be based on relevant characteristics,

functionality and performance requirements, except for items or
parts that are compatible with the existing fleet or equipment of the
same make and brand, and to maintain the performance, functionality
and useful life of the equipment.

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II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID
Importance:

 Signals the start of the bidding process.

 Signals the availability of the bidding documents to the

prospective bidders. (if not mentioned in the Invitation
to Bid) (Sec. 17.3, IRR of RA 9184)

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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.

 Not required for projects with ABC of 2M 10M and

below for Goods or 5M 15M and below for
Infrastructure Projects. (Sec. 21.2.1(c), 2016 IRR of RA
9184)

Two (2) years after the effectivity of the IRR,

advertisement shall no longer be required unless the PE
cannot post its opportunities in the PhilGEPS for justifiable
reasons.
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II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID

 Posted continuously for 7 calendar days (cd):

• PhilGEPS
• website of the PE, if any.
• website of IFI, if applicable.
• At any conspicuous place in the premises of the
PE.

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II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID
2M (10M) for
Above 2M (10M)
Goods/ 5M (15M)
Medium for Goods/
for Infra
5M (15M) for Infra
and below
Newspaper of General Nationwide
Circulation  

PhilGEPS website
 
PE’s Website, if available
 
Conspicuous Place  
Website prescribed by the foreign
government/foreign or international
funding institution, in case of foreign  
funded procurement

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 Sale of Bidding Documents
GPPB Resolution 04-2012 dated 24 February 2012

Approved Budget for the Contract Maximum Cost of Bidding

Documents in PhP

500,000 and below 500.00

More than 500,000 up to 1 Million 1,000.00

More than 1 Million up to 5 Million 5,000.00

More than 5 Million up to 10 Million 10,000.00

More than 10 Million up to 50 Million 25,000.00

More than 50 Million up to 500 Million 50,000.00

More than 500 Million 75,000.00

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 III. PRE-BID CONFERENCE

 Forum where the PE’s representatives & the bidders

discuss the different aspects of the project.

 The eligibility requirements and the technical and

financial components of the contract to be bid among
other things, including questions and clarifications
raised by the prospective bidders before and during the
Pre-Bid Conference shall be discussed, clarified and
explained during the pre-bid conference. (Sec. 22.3, IRR
of RA 9184)

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 III. PRE-BID CONFERENCE

PERSONS INVOLVED

The BAC with quorum

End User representative

TWG or Consultant, if any

Prospective Bidder’s representative

Observers from the COA and CSOs and/or NGOs

 III. PRE-BID CONFERENCE

 Held at least 12 cd before deadline for bid submission

but not earlier than seven (7) cd from the PhilGEPS posting of
the Invitation to Bid or Bidding Documents.

 May be held at least 30 cd before the deadline for the

submission and receipt of bids considering the
following:

a) Method, nature, and complexity of contract

b) International participation is more advantageous

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 III. PRE-BID CONFERENCE

 Open to prospective bidders but attendance is not mandatory.

(Sec. 22.3, 2016 IRR of RA 9184)
 Mandatory – ABC 1M or more; Discretionary – ABC
less than 1M
 Observers from the COA and CSOs are invited at least 3
five (5) CD before the activity
 Presided by BAC Chair or Vice Chair
 Covered by Minutes of Meeting

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 III. PRE-BID CONFERENCE

 Pre-bid conference may be conducted in person or face-to-

face through videoconferencing, webcasting, or similar
technology, or a combination thereof.

 PEs with videoconferencing capabilities that have

manufacturers, suppliers, distributors, contractors and/or
consultants that also have videoconferencing capabilities may
conduct their pre-bidding conferences electronically.

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 CLARIFICATION OF BIDDING
DOCUMENTS
 Supplemental/Bid Bulletins– issued by BAC to answer
requests for clarification (query submitted 10 cd before
deadline) or interpretation, and upon BAC’s initiative to
clarify or modify any provision of Bidding Docs. (at least
7 cd before deadline for bids).

 Posted in PhilGEPS and PE’s website, and at any

conspicuous place within the premises of the Procuring
Entity. (Sec. 22.5.3, 2016 IRR of RA 9184)

 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
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 IV. SUBMISSION AND
RECEIPT OF BIDS
What is a Bid? (Sec. 5)
• 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.

 the term “Bid” shall be equivalent to and be used

interchangeably with “Proposal” and “Tender”.

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 IV. SUBMISSION AND
RECEIPT OF BIDS
Re-scheduling of bid opening (due to justifiable reasons,
i.e lack of quorum, cancellation of office work due to bad
weather)

• In case the bids cannot be opened as scheduled due to

justifiable reasons, the BAC shall take custody of the bids
submitted and reschedule the opening of bids on the next
working day or at the soonest possible time through the
issuance of a Notice of Postponement to be posted in the
PhilGEPS website and the website of the PE (Sec. 29, 2016
IRR of RA 9184)
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 IV. SUBMISSION AND
RECEIPT OF BIDS

Presided by BAC Chair or Vice Chair

Observers from the COA and CSOs are invited at least 3 five (5) CD
before the activity

Bidders or duly authorized representative may attend the opening of

bids.

A checklist of requirements shall be used.

A non-discretionary “pass/fail” criterion shall be used .

BAC Secretariat covers the proceeding.

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 IV. SUBMISSION AND
RECEIPT OF BIDS
 Two-Envelope System
 1st Envelope – Eligibility Requirements and Technical Component
 2nd Envelope – Financial Component

 Submitted to the BAC on the date, time, and place specified in the
Invitation to Bid. Bids submitted after the deadline should not be accepted.

 Date of submission should not be later than the following period from the
last day of posting of the Invitation to Bid (Sec. 25.4) (Sec. 25.5, 2016 IRR of
RA 9184)

Category Maximum Period (cd)

Goods 45
Infra (50M and below) 50
Infra (above 50M) 65

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 V. OPENING AND EVALUATION OF
1ST ENVELOPE
CONTENTS:
1. Eligibility requirements
2. Bid Security
3. Technical specifications (Goods) / Project
requirements (Infra)
4. Omnibus sworn statement
 Non-inclusion in blacklist  Responsibilities of bidders
 Authenticity of documents  Labor laws and standards
 Verification authority  Non-payment (directly or
indirectly) any commission,
 Signatory’s authority
amount, fee, or any form of
 Disclosure of relations consideration in relation to any
procurement project or activity

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 V. OPENING AND EVALUATION OF
1ST ENVELOPE

To ensure transparency and accurate representation of the bid

submission, the BAC Secretariat shall notify in writing all
bidders whose bids it has received through its PhilGEPS-
registered physical address or official e-mail address. The
notice shall be issued within seven (7) cd from the date of the bid
opening. (Sec. 25.7, 2016 IRR of RA 9184)

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 V. OPENING AND EVALUATION OF
1ST ENVELOPE

Unsealed or unmarked bid envelopes shall be rejected.

However, bid envelopes that are not properly sealed and
marked, as required in the Bidding Documents, shall be
accepted, provided that the bidder or its duly authorized
representative shall acknowledge such condition of the bid as
submitted. The BAC shall assume no responsibility for the
misplacement of the contents of the improperly sealed or marked
bid, or for its premature opening. (Sec. 25.9, 2016 IRR of RA
9184)

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 ELIGIBILITY REQUIREMENTS

PhilGEPS Certificate of Registration and Membership

Section 8.5.2 - All bidders shall upload and maintain in PhilGEPS
a current and updated file of the following Class “A” eligibility
documents under Sections 23.1(a) and 24.1(a):
a) Registration Certificate;
b) Mayor’s/Business Permit or its Equivalent Document;
c) Tax Clearance;
d) Philippine Contractors Accreditation Board (PCAB) license and
registration; and
e) Audited Financial Statements.

For foreign bidders participating in the procurement by a Philippine

Foreign Service Office or Post, they shall submit their eligibility
documents under Section 23.1, 2016 IRR of RA 9184.
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From October 28, 2016
until April 30, 2017,
bidders may still submit
their Class “A”
Eligibility Documents
required to be uploaded
and maintained current
and updated in the
PhilGEPS

Starting May 1, 2017,

bidders will be
required to submit
PhilGEPS Certification
under Platinum category,
pursuant to Section
8.5.2 of the 2016
Revised IRR of RA9184.

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 ELIGIBILITY REQUIREMENTS

GOODS INFRASTRUCTURE
Class A Documents
1. DTI/SEC/CDA Registration 1. DTI/SEC/CDA Registration
2. Mayor’s permit or equivalent 2. Mayor’s permit or equivalent
document for Exclusive Economic document for Exclusive Economic
Zones or Areas Zones or Areas
3. Tax clearance per Executive 3. Tax clearance per Executive
Order 398, series of 2005, as finally Order 398, series of 2005, as finally
reviewed and approved by the reviewed and approved by the
BIR. BIR.
4. Statement of ongoing contracts. 4. Statement of ongoing contracts.
5. Statement of SLCC 5. Statement of SLCC

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 ELIGIBILITY REQUIREMENTS

GOODS INFRASTRUCTURE
Class A Documents
6. Audited financial statement 6. PCAB license and registration.
7. NFCC computation or committed 7. Audited financial statement
Line of Credit*
8. NFCC*
Class B Document
JVA or notarized statement from In case of JV, JVA entered into by
the partners that they will enter the parties.
into joint venture if awarded the
contract.

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 MAYOR’S PERMIT

 Mayor’s Permit allows an entity to legally perform the

requirements and obligations of the project and the
resultant contract.

 Recently expired Mayor’s/Business permit shall be

accepted together with the official receipt as proof that
the bidder has applied for renewal within the period
prescribed by the concerned local government unit: Provided,
that the renewed permit shall be submitted as a post-
qualification requirement in accordance with Sec. 34.2 of
the 2016 IRR of RA 9184

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 STATEMENT OF ON GOING AND
COMPLETED CONTRACTS
 Statement of the prospective bidder of all its ongoing
government and private contracts, including contracts
awarded but not yet started, if any, whether similar or not
similar in nature and complexity to the contract to be bid.
(Sec. 23.1(a)(iv), IRR of RA 9184)

 For the procurement of Goods, the statement identifying

the bidder’s single largest completed contract similar to
the contract to be bid, except under conditions provided
for in Section 23.5.1.3 Section 23.4.1.3 of this IRR, must be
within the relevant period as provided in the Bidding
Documents.
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 PCAB LICENSE

 A valid PCAB license required as an eligibility requirement

for the procurement of infrastructure projects should be
valid at the time of the deadline for the submission and
opening of bids.

 The submission of a PCAB license with validity period after

the date of the opening of the bids is a ground for the
prospective bidder’s disqualification. (NPM 71-2013)

 As such, the submission of a PCAB License and Registration

cannot be dispensed within the procurement of infrastructure
projects. (NPM 126-2014)

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 ELIGIBILITY REQUIREMENTS FOR
FOREIGN BIDDERS
In the case of foreign bidders, appropriate equivalent
documents issued by the country of the foreign bidder
under Class “A” Documents shall be submitted, provided
that:
 The documents are in English, or
 If the documents submitted are in a foreign language
other than English, it must be accompanied by a
translation of documents in English by any of the
following:
a) relevant foreign government agency;
b) the foreign government agency authorized to
translate documents, or
c) a registered translator in the foreign bidder’s
country.
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 ELIGIBILITY REQUIREMENTS FOR
FOREIGN BIDDERS
 Shall be authenticated by the appropriate Philippine
foreign service establishment/post or the equivalent
office having jurisdiction over the foreign bidder’s affairs
in the Philippines.

 Only upon actual determination and confirmation of this

equivalence through post qualification by the BAC may
it be categorically resolved that the foreign documents
submitted are acceptable substitutes of the required
eligibility documents pursuant to Section 23.2 of the IRR.
(NPM 42-2013)

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 ELIGIBILITY REQUIREMENTS FOR
FOREIGN BIDDERS
 TAX CLEARANCE FOR FOREIGN BIDDERS

A Delinquency Verification Certificate issued to Non-

Resident Foreign Corporations (NRFC)/Non-Resident
Aliens Not Engaged in Trade or Business
(NRANETB) pursuant to BIR RR 3-2005, attesting to
the fact that the taxpayer has no outstanding Final
Assessment Notice and/or delinquent account may be
submitted as a form of Tax Clearance required under
Section 34.2 of the IRR.

NPM 02-2013
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 ELIGIBILITY REQUIREMENTS FOR
GOVT. CORPORATE ENTITIES

GOCCs may be eligible to participate only if they can

establish that they:

1. are legally and financially autonomous,

2. operate under commercial law, and
3. are not attached agencies of the procuring entity.
(Sec. 23.5, 2016 IRR of RA 9184)

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 ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES
INFRASTRUCTURE
GOODS
PROJECTS
WITH AN EXISTING JOINT VENTURE: JV bidders shall submit a
submission of a valid joint venture JVA in accordance with
agreement R.A. 4566 and its IRR.
WITHOUT AN EXISTING JOINT *Submission of a duly
VENTURE: submission by each of the notarized statement is
potential JV members of a duly notarized not applicable.
statement stating that they will enter into
and abide by the provisions of the joint
venture in case their bid is successful.
Failure to enter into a joint venture in the event
of a contract award shall be ground for the
forfeiture of the bid security. (Sec. 23.1(b),
2016 IRR of RA 9184)

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 ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES

SUBMISSION OF ELIGIBILITY REQUIREMENTS:

 Each partner of the joint venture shall submit the PhilGEPS

Certificate of Registration in accordance with Sec. 8.5.2 of the
2016 IRR of RA 9184.

 Any of the co-venturers shall submit technical and

financial documents.

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 ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES
• JV Bidders are required to submit a Joint License issued by
the PCAB in compliance with the eligibility requirement
for a “valid PCAB license and registration”.

• Sec. 38 of RA 4566 prohibits 2 or more contractors from

jointly submitting a bid without first securing a Joint
License to engage or act in the capacity of such a joint
venture.

• Failure of the JV Bidder to submit a Joint License may be a

ground for its disqualification despite the submission of
the individual licenses of each joint venture partner.

NPM 17-2013 41
 LEGAL ELIGIBILITY CRITERIA
GOODS INFRASTRUCTURE

• General rule: 60% Filipino • General rule: 75% Filipino

• Foreign bidder allowed if: • Foreign contractors allowed if stated
• Stated in treaty or international or in treaty or international or executive
executive agreement agreement
• National of a country offering
reciprocity rights to Filipinos
• Goods not available from local
suppliers
• To prevent situations that defeat
competition or restrain trade

• If joint venture, less than 75% is

allowed if -
• Structures to be built require
techniques not possessed by 75%
Filipinos
• Not less than 25% Filipino

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 TECHNICAL ELIGIBILITY CRITERIA

 Previous contract

 Similar to the contract to be bid out (as defined by the

Bidding Documents)

 Completed within a period as defined by the Bidding

Documents

 25% of the ABC (expendable supplies)

 50% of the ABC (non-expendable supplies)

- Based on the value of the previous completed
contract, as adjusted to current prices using the NSO
consumer price index.
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 TECHNICAL ELIGIBILITY CRITERIA

GOODS – SINGLE LARGEST CONTRACT

General Rule Exceptions Then require the ff.:
1. Expendable If, at the outset and a) At least 2 similar
Supplies after market contracts aggregate
• 25% of the ABC research, applying amount at least
the general rule will equivalent to
2. Services and Non- likely result to: required percentage;
expendable supplies and
• 50% of the ABC 1. Failure of bidding;
or b) Largest of the similar
contracts amounts to
2. Monopoly at least 50% of
required percentage

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 TECHNICAL ELIGIBILITY CRITERIA
GOODS – SINGLE LARGEST CONTRACT (Illustration)
Expendable Goods
ABC = P1,000,000
GR: 25% of the ABC
THUS: Previous contract should be at least
P250,000
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.
THUS: 1st contract = P100,000.00
2nd contract = P200,000.00
Non-expendable Goods
ABC = P1,000,000
GR: 50% of the ABC
THUS: Previous contract should be at least
P500,000
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.
THUS: 1st contract = P300,000.00
2nd contract = P400,000.00
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 TECHNICAL ELIGIBILITY CRITERIA

INFRASTRUCTURE PROJECTS – SINGLE LARGEST

CONTRACT

 Previous contract
 Similar to the contract to be bid, except under conditions
provided for in Sec. 23.5.1.3 Sec. 23.4.1.3 of the IRR
 50% of the ABC
- Based on the value of the previous completed
contract, as adjusted to current prices using the NSO
PSA consumer price index.
 For foreign funded procurement, a different track record
may be agreed upon

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 TECHNICAL ELIGIBILITY CRITERIA

INFRASTRUCTURE PROJECTS – SINGLE LARGEST

CONTRACT

Exception:
 Contractors under Small A and Small B categories without
similar experience on the contract to be bid may be allowed to
bid if the cost of such contract to be bid is not more than the
Allowable Range of Contract Cost (ARCC) of their
registration based on the guidelines as prescribed by the
PCAB.
 A contract shall be considered “similar” to the contract to be
bid if it has the same major categories of work. The PE may
clarify in the Bidding Documents what is regarded as major
categories of work.
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 FINANCIAL ELIGIBILITY CRITERIA

FOR GOODS AND INFRASTRUCTURE PROJECTS:

 Audited Financial Statement (showing prospective

bidder’s total and current assets and liabilities. )
 NFCC at least equal to ABC.

48
 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 constant NFCC’s K factor is set at 15, regardless of

contract duration

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 CREDIT LINE COMMITMENT

 In the case of procurement of Goods, a bidder may opt to

submit a committed Line of Credit (CLC) from a universal or
commercial bank, in lieu of its NFCC computation. (Sec. 23.1
(a) (viii), 2016 IRR of RA 9184)

 CLC does not apply to procurement of Infrastructure

Projects.

 If the bidder submits a CLC, it must be at least equal to ten

percent (10%) of the ABC to be bid: Provided, that if the same
is issued by a foreign Universal or Commercial Bank, it shall be
confirmed or authenticated by a local Universal or Commercial
Bank.
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 NET FINANCIAL CONTRACTING
CAPACITY (NFCC)

 For goods and infrastructure projects, the NFCC’s K factor

shall be fixed at 15, regardless of contract duration

 The values of the domestic bidder’s current assets and current

liabilities shall be based on the latest Audited Financial
Statements submitted to the BIR .

 For purposes of computing the foreign bidder’s NFCC, the

value of the current assets and current liabilities shall be based
on their Audited Financial Statements prepared in
accordance with international financial reporting
standards.
51
 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 bidder’s
financial liquidity and absorptive capacity in carrying
out the contractual obligations required by the lots to
which it participated in.

NPM 76-2013

52
 BID SECURITY

 In general, bank issued securities must be issued by a

universal or commercial bank

 However, in biddings conducted by LGUs, securities

may be issued by banks certified by BSP as
authorized to issue said instruments

 Surety Bonds must be accompanied by certification

from Insurance Commission that issuer is authorized to
issue such security

 Bidders have the option to choose their preferred form of bid

security
53
 BID SECURITY

 Bid securities shall be returned only after the bidder

with the Lowest Calculated Responsive Bid has signed
the contract and furnished the performance security,
except to those declared by the BAC as failed or post-
disqualified in accordance with this IRR, upon
submission of a written waiver of their right to file a
request for reconsideration and/or protest.

54
 BID SECURITY
Amount
Form of Bid Security Bid Security
(% = ABC)
a) Cash or cashier’s/manager’s check
b) Bank guarantee/draft or 2%
Irrevocable LC
c) Surety bond callable upon
5%
demand
d) Combination of the foregoing Proportionate to share of form
with respect to the total
amount of security
d) Bid Securing Declaration No percentage required

55
 BID SECURING DECLARATION

Bid Securing Declaration

 an additional form of bid security

 A document/undertaking signed by the bidder

committing to pay the corresponding fine and be
suspended for a period of time from being qualified
to participate in any government activity in the event
of violation of any of the conditions stated therein as
required by the GPPB Guidelines. (GPPB Resolution
No. 03-2012, 27 January 2012)

56
 BID SECURING DECLARATION

Conditions
 The Bid Securing Declaration shall be enforced when the
bidder commits any act resulting to the forfeiture of bid
security under:

- Section 23.1(b) – failure to enter into a joint venture in the

event of contract award
- Section 34.2 – failure to submit post-qualification
requirements on time or a finding against the veracity of
such
- Section 40.1 – failure to enter into a contract with the PE
- Section 69.1 – administrative sanctions

(GPPB Resolution No. 15-2014, 20 June 2014)

57
 BID VALIDITY PERIOD

 Bids and bid securities (including bid securing

declaration) shall be valid for a reasonable period as
determined by the HOPE as indicated in the Bid Docs.
 Not to exceed 120 cd
 If the period is extended, PE shall request in writing all
those who submitted bids for such extension before the
expiration date.

NOTE: Bidders have a right to refuse to grant such

extension w/o forfeiting their bid security.

58
 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 or implementing unit
 Project consultants

59
VI. OPENING AND EVALUATION OF 2ND
ENVELOPE
CONTENTS:

1. Financial Bid Form (includes bid prices and bill of

quantities, as well as applicable price schedules)
2. In case of Goods, Certification from the DTI if
claiming preference as Domestic Bidder (RA 10667)
3. Other documents required in the bidding
documents

60
 VII. DETAILED EVALUATION
OF BIDS
 Purpose is to determine the Lowest Calculated Bid
(LCB), by:
1. Establishing correct calculated prices of bids; and
2. Ranking calculated total bid prices from lowest to
highest

 A non-discretionary criterion shall be used, which shall

include consideration of:
1. completeness of bids; and
2. minor arithmetical corrections

61
 Bid Evaluation

RULES ON CONSTRUCTION / INTERPRETATION:

In case of discrepancies between:

(a) bid prices in figures and in words, the latter shall

prevail;

(b) total prices and unit prices, the latter shall prevail;

(c) unit cost in the detailed estimate vs. unit cost in the

bill of quantities, the latter shall prevail.

FINANCIAL PROPOSAL
(Item & Specifications) Bidder 1 Bidder 2 Bidder 3

Agency      

Information
System Plan
1. Hardware 13,499,244.32 12,088,044.23 13,440,153.20
Components

2. Software Components 7,758,647 7,075,669.57 7,135,555.01

3. Training 680,000 204,000.00 170,000

LOWEST CALCULATED
BID (LCB)
4. Cabling/Installation/ 1,266,186.38 2,215,000 545,000
Delivery to undergo Post-qualification

Total Bid Price: Php23,204,077.70 Php21,582,713.80 Php21,290,708.21

3rd 2nd 1st

Evaluation and award per item

FINANCIAL PROPOSAL Bidder 2 Bidder 3

Bidder 1
(Item & Specifications)

Refurbishment of      

Conference
Room
1. 24-seater 199,244 188,044 190,153
Conference Table

2. 100 sq.m. Carpet 358,647 475,669 435,555

3. 50 pieces upholstered 180,000 204,000 170,000

chairs with arm rest
4. Ceiling mounted 1,266,186.38 No bid No bid
Projector and
Interactive Board
Php1,624,833.38 Php188,044 Php170,000
Possible Contract
Award to 3 bidders Lowest calculated & Lowest calculated & Lowest calculated &
responsive bid for items 2 & 4 responsive bid for item 1 responsive bid for item 3
 VII. DETAILED EVALUATION
OF BIDS
 No Contact Rule - prohibition on communication w/ bidders
from bid evaluation until award of contract.

 The “no contact” rule applies only to those whose bids are
being evaluated by the BAC after passing the preliminary
examination until the issuance of Notice of Award.

 No communication should be made by bidders until a decision

to award a contract is made by the BAC.

 Bidders who waived their right to utilize the protest mechanism

or those whose request for reconsideration and/or protest were
subsequently denied are not covered by the prohibition under
Sec. 32.1 of RA 9184 IRR. (NPM 07-2013)
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 VII. DETAILED EVALUATION
OF BIDS

 Unless the ITB specifically allows partial bids, those not

providing all required items shall be considered non-
responsive

 Placing no price is considered as non-responsive

 Specifying a “0” or “-” means it is offered for free

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 DOMESTIC PREFERENCE

 Applicable only for GOODS

 Applies where the lowest bid has a foreign component

(foreign bid/entity) and the next lowest bid has a
domestic component (domestic bidder/entity)

 Requires procuring entity to give preference to domestic

bidder PROVIDED that:

1. The lowest foreign bid is increased by 15%; and

2. The lowest domestic bidder matches the lowest bid
of the foreign bidder

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 DOMESTIC PREFERENCE
SAMPLE COMPUTATION
Next Lowest Calculated
Lowest Calculated Bid
Bid
Foreign Bidder Domestic Bidder/Entity
Bid 2,653,360.00 3,009,492.00
% Preference x 15%
398,004.00
+ 2,653,360.00
Bid as increased 3,051,364.00 3,009,492.00

Award to Domestic Bidder/Entity at 2,653,360.00, or

Result Award to Foreign Bidder if Domestic Bidder/Entity refuses

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 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.)

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 VIII. POST-QUALIFICATION

 May be conducted up to 12 cd, or up to 45 cd in exceptional

cases.

 In case of post-disqualification of the LCB, the BAC shall be

given the  same fresh period to conduct the post-
qualification of the next lowest calculated bid. (Sec. 34.8,
2016 IRR of RA 9184)

 BAC will notify the Bidder with the Lowest Calculated

Bid that it was determined as such. (Sec. 34.2, IRR of RA
9184)

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 VIII. POST-QUALIFICATION

 Within 3 c.d (5 cd) from receipt of Notice, submit the ff:

1. Latest Income and Business Tax Returns;
2. PhilGEPS Certification of Registration; and
2. Other appropriate Licenses and permits required by
law and stated in the Bidding Documents.

 Failure to submit any of the post-qualification requirements

on time, or a finding against the veracity thereof, shall
disqualify the bidder for award. Should there be a finding
against the veracity of any of the documents submitted, the
Bid Security shall be forfeited in accordance with Sec. 69 of
the 2016 IRR of RA 9184.
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 VIII. POST-QUALIFICATION

For Goods, the BAC shall check:

a) Delay in the partial delivery of goods amounting to ten percent
(10%) of the contract price in its ongoing government and private
contracts;
b) If any of these contracts shows the bidder’s failure to deliver or
perform any or all of the goods or services within the period(s) specified
in the contract or within any extension thereof granted by the PE
pursuant to a request made by the supplier prior to the delay, and such
failure amounts to at least ten percent (10%) of the contract price; or
c) Unsatisfactory performance of the supplier’s obligations as per
contract terms and conditions at the time of inspection.

If the BAC verifies any of these deficiencies to be due to the bidder's fault or
negligence, the BAC shall disqualify the bidder from the award, for the
procurement of Goods. (Sec. 34.3(b), 2016 IRR of RA 9184)
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 VIII. POST-QUALIFICATION

For Infrastructure Projects, BAC shall check:

a) Negative slippage of at least 15% in any one project or
a negative slippage of at least 10% in each of  2 or
more contracts;
b) Failure of the contractor to commence repair works on
ongoing contracts in accordance with Section 34.3
c) Failure of the contractor to commence repair works on
contracts with pending certificates of acceptance in
accordance with Sec. 34.3
d) Substandard quality of work or unsatisfactory
performance at the time of inspection.
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 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.

 The HOPE has 7 cd 15 cd to decide whether or not to

issue NOA

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 VIII. POST-QUALIFICATION

 When required, the approving higher authority for the

contract or his duly authorized representative shall be given a
maximum of twenty (20) cd from receipt thereof to approve
or disapprove it.

 In the case of GOCCs, the concerned board or its duly

authorized representative shall be given a maximum of
thirty (30) cd from receipt thereof to approve or disapprove
it.

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 RECOMMENDATION FOR AWARD

The BAC shall notify all other bidders, in writing, of its

recommendation to HOPE of award of contract to LCRB/HRRB
within 3 cd. (Sec. 37.1.1, 2016 IRR of RA 9184)

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 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.

(Sec. 35, IRR of RA 9184)

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 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

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 RESERVATION CLAUSE
 HOPE reserves the right to:
◦ Reject any and all bids;
◦ Declare a failure of bidding;
◦ Not award the contract.
(Sec. 41, IRR of RA 9184)

 GROUNDS:
1. BAC is found to have Prima facie evidence of collusion;
2. 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.

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 IX. AWARD OF CONTRACT

 Contract shall be awarded to the bidder with the Lowest

Calculated and Responsive Bid (LCRB) at its submitted
price or total calculated bid price, whichever is lower

 Notice of Award (NOA) is issued by the HOPE within

the following periods:

- NGAs and LGUs – 7 cd 15 cd

- GOCCs and GFIs – 15 cd 30 cd

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 IX. AWARD OF CONTRACT

 NOA is subject to the following conditions:

- If joint venture, submission of JVA

- If foreign-funded and stated in treaty, international
or executive agreement, PCAB License
- Posting of Performance Security (within 10 cd)
- Signing of Contract (within 10 cd)
- If required, approvals by higher authority

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 IX. AWARD OF CONTRACT

PROCUREMENT PROCESS
From Opening of Bids to Award of Contract shall
NOT EXCEED 3 MONTHS

In the case of Jacomille v. Abaya, et al., the petitioner contends that

the public respondents failed to comply with the periods provided
by law, specifically the 3-month period from the opening of the bids
up to the award of the contract under Section 38 of RA 9184. The
Supreme Court held that “[t]he different periods provided by RA
9184 within which certain stages of the procurement process must
be completed is not merely directory but mandatory.” Thus, it
concluded that such irregularity rendered the procurement process
null and void. (G.R. No. 212381, 22 April 2015)

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 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 LCB shall undertake post-qualification
3. Bid security shall be forfeited without prejudice to the
imposition of sanctions

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 PERFORMANCE SECURITY

Amount
Form of Performance Security Performance Security
(% equal to the Contract Price)
a) Cash or cashier’s/manager’s
check
5% (Goods ) & 10% (Infra)
b) Bank guarantee/draft or
Irrevocable LC
c) Surety bond callable upon
demand 30%
d) Combination of the foregoing Proportionate to share of form
with respect to the total amount of
security

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 NOTICE TO PROCEED

 The concerned PE shall issue the Notice to Proceed together

with a copy or copies of the approved contract to the
successful bidder within seven (7) cd from the date of
approval of the contract by the appropriate government
approving authority.

 All notices called for by the terms of the contract shall be

effective only at the time of receipt thereof by the successful
bidder.

85
 Contract Warranties (Sec. 62)

• To assure that supplier corrects manufacturing

defects of GOODS for a specific period after
performance of contract.

• To assure that the constructor assumes full

responsibility for structural defects and/or failure of
the completed INFRA project within the warranty
period from final acceptance, except those occasioned
by force majeure and those caused by other parties.

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 RETENTION MONEY

 For Goods, retention money is reduced from 10% to at

least 1% of contract amount (Sec. 62, 2016 IRR of RA
9184)

 For Infrastructure Projects, retention money is retained

at 10% of contract amount

Note: 5th Edition PBD Goods on page 54 GCC Clause 10.1 Payment, 10% retiontion
should read 1% to conform with GCC Clause 17.3 retention fee under Warranty.

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 Contract Warranties (Sec. 62)
 Warranty – Procurement of Goods (Sec. 62.1)

Type of Goods Warranty Period Allowable Forms of Amount of Warranty

Warranty Security
(% of Total Contract
Price)
Expendable 3 mos.
Retention Money or
Special Bank 1%
Non-expendable 1 yr. Guarantee
Warranty
 Warranty - Infrastructure Projects (Sec. 62.2.3.3)

Form of Warranty Security Amt of Warranty Security

(% of Contract Price)

a) Cash or LC issued by a Universal/Commercial Bank 5%

(If issued by a foreign bank, it should be confirmed or
authenticated by a universal or commercial bank

b) Bank guarantee confirmed by Universal/ Commercial 10%

Bank
c) Surety bond callable upon demand issued by GSIS or 30%
a surety/insurance company certified by the
Insurance Comm.

• LGUs – Bank guarantee/LC from other banks certified by the BSP

• Effectivity: 1 yr. from the date of issuance of the Certificate of

Final Acceptance
 Contract Warranties (Sec. 62)

For Infra:
a)Permanent Structures: Fifteen (15) years
Building of types 4 and 5, steel and concrete bridges,
flyovers, concrete aircraft movement areas, ports, dams,
diversion tunnels, causeways, wharves, piers, dikes,
filtration and treatment plants, sewerage systems, power
plants, transmission and communication towers, railway
system, and other similar structures

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 Contract Warranties (Sec. 62)

b. Semi-Permanent Structures: Five (5) years

Building types 1, 2 and 3, concrete roads, asphalt
roads, river control, drainage, irrigation and
drainage canals, municipal ports and river landing,
deep wells, rock causeway, pedestrian overpass,
and other similar structures; and

c. Other Structures: Two (2) years

Bailey and wooden bridges, shallow wells, spring
development, and other similar structures.

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 Warranty Period

Defects/Liability Period Warranty Period

1 Year 2 to 15 Years
Project Final
Completion Acceptance

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 LIQUIDATED DAMAGES

Once the cumulative amount of liquidated damages

reaches ten percent (10%) of the amount of the contract,
the PE may rescind or terminate the contract, without
prejudice to other courses of action and remedies available
under the circumstances. (Sec. 68, 2016 IRR of RA 9184)

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 PERIOD OF ACTION ON PROCUREMENT ACTIVITIES (Earliest / Latest)
ACTIVITIES GOODS INFRA (ABC 50M & below) INFRA (ABC above 50M)
ADVERTISEMENT Day1 (7 CD) Day 1 (7 CD) Day 1 (7 CD)
(Optional if ABC >P2M) (Optional if ABC >P5M) (Optional if ABC >P5M)

ISSUANCE & AVAILABILITY

OF BID DOCS From Day 1 of advertisement until Bid Opening

PRE-BID CONFERENCE Day 8 / Day 40 (Goods); Day 8 / Day 45 & 60 (Infra)

(Optional for ABC below P1M)
(Not earlier than 7 CD from posting; 12 c.d. before Bid submission and opening)

DEADLINE OF SUBMISSION Day 20/ Day 52 Day 20/ Day 57 Day 20/ Day 72
& RECEIPT OF BIDS/ (45 CD fr. last day of adv.) (50 CD fr. last day of adv.) (65 CD fr. last day of adv.)
BID OPENING

BID EVALUATION Day 21/ Day 59 Day 21/ Day 64 Day 21/ Day 79
(7 CD from Bid Opening) (7 CD from Bid Opening) (7 CD from Bid Opening)

POST-QUALIFICATION Day 22-23/ Day 60-104 Day 22-23/ Day 65-109 Day 22-23/ Day 80-124
(PQ Requirements for submission (Max of 45 CD for activity) (Max of 45 CD for activity) (Max of 45 CD for activity)
within 5CD from receipt of notice)

APPROVAL OF RTA/ Day 24/ Day 105-119 Day 24/ Day 110-124 Day 24/ Day 125-139
ISSUANCE OF NOA (Max of 15 CD for activity) (Max of 15 CD for activity) (Max of 15 CD for activity)

CONTRACT PREP.& SIGNING Day 25/ Day 120-129 Day 25/ Day 125-134 Day 25/ Day 140-149
(Max of 10 CD for activity) (Max of 10 CD for activity) (Max of 10 CD for activity)
APPROVAL OF CONTRACT BY 20 -30 CD (if needed) 20-30 CD (if needed) 20-30 CD (if needed)
HIGHER AUTHORITY

ISSUANCE OF NTP Day 26/ Day 130-136 Day 26/ Day 135-141 Day 26/ Day 150-156
(w/in 7CD fr Contract (w/in 7CD fr. Contract approval) (w/in 7CD fr. Contract
approval) approval)
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 THANK YOU!!

Contact us:

Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605

TeleFax: (632)900-6741 to 44

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