BIDDING PROCEDURES FOR THE

PROCUREMENT
OF GOODS AND SERVICES

CAPACITY DEVELOPMENT DIVISION

Government Procurement Policy Board
Technical Support Office (GPPB-TSO)

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 GENERAL MODE OF PROCUREMENT

Procurement is done through Competitive Bidding.

(Sec. 10 RA 9184; NPM 67-2012)

Exception: Alternative Methods of Procurement.

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 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)

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 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.”

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 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)

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 STANDARDIZED BIDDING PROCEDURE FOR
GOODS AND SERVICES
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
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

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 REFERENCE TO BRAND NAMES
Section 18 of RA 9184 and its IRR
Applicable only to procurement of goods

Specifications should be based on relevant characteristics and

performance requirements.

Prohibition includes reference to country of origin pursuant to Section

43.1.1 of the IRR of RA 9184.
-PEs are precluded from requiring specific country of origin as part of the
technical specifications for the project.
-Specifications shall be based on the performance requirements and
recognized industry standards and not on the basis of country of origin.
(NPM 22-2013)

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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)

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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.

 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.

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 II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID
Medium Above 2M 2M 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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 III. PRE-BID CONFERENCE
Forum where the PE’s representatives & the bidders discuss the
different aspects of the project
Mandatory – ABC 1M or more; Discretionary – ABC less than
1M
Held at least 12 cd before deadline for bid submission. May be
held at least 30 cd considering the following:
a) Method, nature, and complexity of contract
b) International participation is more advantageous
At the option of procuring entity, only bidders who purchased
bid documents are allowed to attend or ask questions

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 III. PRE-BID CONFERENCE

 Section 22 affords bidders the opportunity to raise concerns

or clarifications on the requirements, terms, conditions, and
specifications stipulated in the bidding documents for the
contract to be bid.

 Questions or clarifications pertaining to the matters that may

be discussed during the pre-bid conference must be raised at
least ten (10) calendar days before the deadline set for the
submission and receipt of bids. (NPM 49-2013)

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 III. PRE-BID CONFERENCE

• Section 22.1 of the IRR of RA 9184 provides that at least one (1) pre-bid
conference should be conducted by the procuring entity for projects
costing at least PhP1 Million, in order to afford prospective bidders the
opportunity to inquire on or clarify any of the requirements, terms,
conditions, and specifications stipulated in the Bidding Documents.

• Failure to conduct a pre-bid conference for the Project amounts to a

violation of a mandatory provision of law, which will render the
procurement activity void under Article 5 of the Civil Code of the
Philippines. (NPM 48-2013)

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 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 BAC’s initiative to
clarify or modify any provision of Bidding Docs. (at least 7
c.d. before deadline for bids).

 Posted in PhilGEPS and PE’s 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

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 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

PE’s website, in order to address aspects of competition and transparency.
(NPM 46-2013)

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 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 PE’s 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 PE’s 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)

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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.

Category Maximum Period (cd)

Goods 45

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 IV. SUBMISSION AND RECEIPT OF
BIDS
 Bidders are no longer required to submit a written LOI
together with their application for eligibility as
previously required in IRR Part A of RA 9184.

 Bidders only have to submit their bids not later than

the deadline for the submission and receipt of bids,
which can be extended or rescheduled together with
the opening of bids as provided in Section 29 of the
IRR of RA 9184. (NPM 55-2013)

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 IV. SUBMISSION AND RECEIPT OF
BIDS
 The practice of pre-qualification has been abandoned in RA
9184 and its IRR. the results of a pre-qualification have no
legal force and effect, bearing or weight, and cannot preempt
the findings of the BAC during the preliminary examination
of bids conducted during the opening of bids. Hence, a bidder
may still be declared ineligible during the opening of bids
despite a finding of qualification during the purported pre-
qualification exercise. (NPM 54-2013)

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 IV. SUBMISSION AND RECEIPT OF
BIDS
 Procuring entity cannot validly and legally refuse to accept a
bid submitted before the deadline for the submission
indicated the Invitation to Bid or Request for Quotation.

 This shall open a ground for the aggrieved bidder to file a

request for reconsideration and, subsequently, protest as
provided in Section 55 of RA 9184 and its IRR, without
prejudice to the institution of civil, administrative and/or
criminal actions against the erring officials under applicable
laws and rules. (NPM 67-2013)

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 V. OPENING AND EVALUATION OF 1ST
ENVELOPE
CONTENTS:
1. Eligibility requirements
2. Bid Security
3. Technical specifications
4. Omnibus sworn statement
Non-inclusion in blacklist
Authenticity of documents
Verification authority

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 V. OPENING AND EVALUATION OF 1ST
ENVELOPE
CONTENTS (continuation):
4. Omnibus Sworn Statement
Signatory’s authority
Disclosure of relations
Responsibilities of bidders
Labor laws and standards
Non-payment (directly or indirectly) any
commission, amount, fee, or any form of
consideration in relation to any procurement
project or activity

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 V. OPENING AND EVALUATION OF 1ST
ENVELOPE
 Section 30 requires that the preliminary examination of bids
be conducted by merely checking for the presence or absence
of documentary requirements using a non-discretionary
“ pass/fail” criterion.

 However, the BAC has the right to review the qualifications

of a bidder during the same stage if it has reasonable grounds
to believe that a misrepresentation has been made or there has
been changes in the bidder’s capability to undertake the
project. (NPM 54-2013)

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 V. OPENING AND EVALUATION OF 1ST
ENVELOPE

 BAC should open a reconsidered bid under the same

circumstances as it opened the bids that were not
disqualified, i.e., upon a duly scheduled opening of
bid with proper notices to the concerned entities.
(NPM 69-2013)

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 ELIGIBILITY REQUIREMENTS

Class A Documents
1.DTI/SEC/CDA Registration
2.Mayor’s 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

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 ELIGIBILITY REQUIREMENTS

Class B Document
•JVA or notarized statement from the partners that they
will enter 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.

 It is therefore necessary for the BAC to determine whether

the Mayor’s Permit for construction business issued to the
construction company likewise authorizes it to engage in the
business of supplying dump trucks. (NPM 36-2013)

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 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)

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 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 02-2013)

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 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)

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 TAX CLEARANCE

Submission of Provisionary Tax Clearance is not

considered as sufficient compliance for bidding
purposes. (GPPB Resolution No. 33-2013)

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 CREDIT LINE COMMITMENT

Credit Line Commitment shall no

longer be accepted as an alternative to the
prospective bidder’s computation of Net
Financial Contracting Capacity (NFCC).
(Resolution 20-2013)

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 STATEMENT OF ON GOING AND
COMPLETED CONTRACTS
 The submission of a Statement of Ongoing Contracts should
only be required if the bidder opts to submit an NFCC
computation. If the bidder opts to submit a CLC, it need not
submit said statement.
 The Statement of Completed Contract(s) should always be
required for the purpose of showing the bidder’s Single Largest
Completed Contract that is similar to the contract to be bid.
(Resolution 29-2012)

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 ELIGIBILITY REQUIREMENTS FOR
FOREIGN BIDDERS

In the case of foreign bidders, the foregoing eligibility

requirements under Class “A” Documents may be submitted:

Equivalent documents issued by country

Accompanied by English translation certified by appropriate

embassy or consulate in the Philippines

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 ELIGIBILITY REQUIREMENTS FOR
FOREIGN BIDDERS
Foreign bidders may substitute eligibility documentary
requirements with the appropriate equivalent documents in their
country.
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 §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 Sec 34.2 of the IRR. (NPM 02-2013)

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 ELIGIBILITY REQUIREMENTS FOR GOVT.
CORPORATE ENTITIES

Government corporate entities 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.

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 ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES

1.WITH AN EXISTING JOINT VENTURE: submission of a

valid joint venture agreement

2.WITHOUT AN EXISTING JOINT VENTURE: submission

by each of the potential joint venture members of a duly
notarized statement stating that they will enter into and abide
by the provisions of the joint venture in case their bid is
successful.

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 ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES

SUBMISSION OF ELIGIBILITY REQUIREMENTS:

All co-venturers of the joint venture should submit legal

eligibility documents.

Any of the co-venturers can submit technical and financial

eligibility requirements

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 LEGAL ELIGIBILITY CRITERIA

General rule: 60% Filipino

Foreign bidder allowed if:

–Stated in treaty or international or executive 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

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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.
 For foreign funded procurement, a different track record may be agreed
upon

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 TECHNICAL ELIGIBILITY CRITERIA

GOODS – SINGLE LARGEST CONTRACT

General Rule Exceptions Then require the ff.:

1. Expendable Supplies If, at the outset and after a) At least 2 similar

• 25% of the ABC market research, contracts aggregate
applying the general rule amount at least
2. Services and Non- will likely result to: equivalent to required
expendable supplies percentage; and
• 50% of the ABC 1.Failure of bidding; or
b) Largest of the similar
2.Monopoly contracts amounts to at
least 50% of required
percentage

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 TECHNICAL ELIGIBILITY CRITERIA
GOODS – SINGLE LARGEST CONTRACT (Illustration)
Expendable Goods Non-expendable Goods

ABC = P1,000,000 ABC = P1,000,000

GR: 25% of the ABC GR: 50% of the ABC

THUS: Previous contract should be at least THUS: Previous contract should be at least
P250,000 P500,000

EXCEPTION: At least 2 similar contracts EXCEPTION: At least 2 similar contracts

aggregate amount at least equivalent to required aggregate amount at least equivalent to required
percentage; and Largest of the similar contracts percentage; and Largest of the similar contracts
amounts to at least 50% of required percentage. amounts to at least 50% of required percentage.

THUS: 1st contract = P100,00 THUS: 1st contract = P300,000

2nd contract = P200,00 2nd contract = P400,00[

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FINANCIAL ELIGIBILITY CRITERIA

• Audited Financial Statement (showing

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

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 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 bidder’s 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 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)

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 BID SECURITY
 Procuring entity shall indicate in the Bidding Documents at least 2
acceptable forms of bid security, one of which should be the Bid
Securing Declaration.

 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

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 BID SECURITY
Amount
Form of Bid Security Bid Security
(% = ABC)

a) Cash or cashier’s/manager’s
check

2%
b) Bank guarantee/draft or
Irrevocable LC

c) Surety bond callable upon

demand 5%

d) Combination of the foregoing Proportionate to share of form with respect to the

total amount of security
e) Bid Securing Declaration No percentage required

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 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)

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 BID SECURING DECLARATION

 Penalties
- Automatic blacklisting for 2 years in ALL government
procurement activities, and
- Payment of fine
• For multiple bidders: difference between the evaluated
bid prices of LCRB/HRB with the next LCRB/HRB.
In case bidder is the LCRB/HRB, the amount shall be
based on the difference between the evaluated bid price
and ABC.
• For a single bidder: difference between the evaluated
bid price and ABC.

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 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 days
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.

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 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

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 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 firm’s 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
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, SEC, or
CDA, if claiming preference as Domestic Bidder or
Domestic Entity
3. Other documents required in the bidding documents

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 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

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 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.

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 §32.1 of RA 9184 IRR. (NPM 07-
2013)

57
 VII. DETAILED EVALUATION
OF BIDS
 Bid Evaluation shall not be more than 7 cd.

 In case of discrepancies, the ff. shall prevail:

- words over figures
- unit prices over total prices
- actual sum of prices over total price
- bill of quantities over detailed estimates

 Section 32.2.3(c) of the IRR states that where there is a

discrepancy between the stated total price and the actual sum
of prices of component items, the latter shall prevail. (NPM
51-2013)

58
 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

59
 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

60
 DOMESTIC PREFERENCE

SAMPLE COMPUTATION

Lowest Calculated Bid Next Lowest Calculated 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

61
 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 bidder’s
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

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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

 NGAs and LGUs – 7 cd

 GOCCs and GFIs – 15 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
◦Signing of Contract (within 10 cd)
◦If required, approvals by higher authority

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

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

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 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)

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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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 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.

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 NOTICE TO PROCEED
 Issued to the successful bidder together with the copy of the
approved contract within 3 cd from date of approval
 Contract effectivity date should be provided in the NTP,
which should not be later than 7 cd from its issuance
 BAC Secretariat should post a copy of the NTP and the
approved contract in the PhilGEPS or PE’s website within 15
cd from issuance of NTP

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CONTRACT IMPLEMENTATION
GUIDELINES FOR THE
PROCUREMENT OF GOODS,
SUPPLIES AND MATERIALS

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 AMENDMENT TO ORDER
 Issued at any time by the procuring entity in cases of:

1. Emergency
2. Fortuitous event
REASONS FOR ISSUING:
1. Necessary adjustments within the general scope of the contract in any one
or more of the following:
a) drawings, design or specifications (if specifically manufactured for Government)
b) method of shipment or packing; or
c) place of delivery.

2. Additional items needed and necessary for the protection of the goods,
which were not included in the original contract.

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 SUSPENSION OF WORK

 PE may suspend the work wholly or partly by written order

for a certain period of time due to force majeure or fortuitous
events.

 When the suspension order is lifted, or if the period of the

order expires, the supplier or consultant shall resume work.

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 LIQUIDATED DAMAGES

 When bidder fails to perform obligations within specified schedule,

inclusive of duly granted time extensions, he shall be liable for damages
and shall pay the PE liquidates damages.

 Bidder shall pay an amount equal to 1/10 of 1% of the cost of the cost of
delayed goods scheduled for delivery for every day of delay until such
goods are finally delivered and accepted by the procuring entity.

 PE need not prove it incurred actual damages.

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 LIQUIDATED DAMAGES

 Whichever is convenient to the procuring entity, amount shall

be deducted from:
1. any money due or which may become due to the supplier,
or
2. collected from any securities or warranties posted by the
supplier,

 If sum of liquidated damages reach 10% of the contract

amount, PE shall automatically rescind the contract.

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 ADVANCE PAYMENT
 Made only after prior approval of the President.
 Single advance payment not to exceed 50% of the contract for
the following services:
◦ Hotel and restaurant services
◦ Use of conference/seminar and exhibit areas
◦ Lease of office space
 Advance payment not to exceed 15% allowed to address
contingencies arising from natural or man-made calamities in
areas where “state of calamity” has been declared

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 ADVANCE PAYMENT
 For goods, 15% of the contract price shall be paid within 60
days from signing of contract and upon submission of a claim
and a bank guarantee. (Amended by M.O. 15, series of 2011)

 NOTE: Progress payments shall first be charged against the

advance payment until the latter is fully exhausted. (UNLESS
otherwise approved by the President)

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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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