DIFFERENT METHODS OF

PROCUREMENT
o General Guidelines
o Conditions, Procedures and
Documentary Requirements of the
Alternative Methods of Procurement
GENERAL
GUIDELINES
Procuring Entities (PEs) shall adopt
Competitive Bidding as the general mode of
procurement
Alternative Methods shall be resorted ONLY:

Justified by conditions
In highly To promote economy
specified in the
exceptional cases and efficiency IRR of RA No. 9184
GENERAL
GUIDELINES
Prohibition on Splitting of Government Contracts
Division or breaking up of government contracts into smaller quantities and
amounts, or dividing contract implementation into artificial phases or sub-
contracts for the purpose of evading or circumventing the requirements of
procurement rules & procedures is prohibited.
However, mere act of dividing a contract into smaller quantities or phases
does not automatically constitute splitting of contract.
PEs are authorized to divide a procurement project into lots to attract the
maximum competition but must ensure that doing so is not made to
circumvent any provisions of RA No. 9184 & its IRR.

- (NPM 020-2019)
CONDITIONS, PROCEDURES &
DOCUMENTARY REQUIREMENTS
OF ALTERNATIVE METHODS OF
PROCUREMENT
ALTERNATIVE METHODS OF
PROCUREMENT

3
Repeat Order

2 4
Direct Contracting Shopping

1 5
Limited Source Bidding Negotiated
Procurement
LIMITED SOURCE
BIDDING

Background Applicability Conditions

“Selective
Bidding” Highly specialized
Goods
Direct invitation to equipment/services
pre-selected
suppliers or
consultants Consulting Major plants
Services
components
LIMITED SOURCE
BIDDING

Pre-selection is based on capability and resources

to perform the contract taking into account:
Experience and performance on similar contracts

👨❢ Personnel, equipment, manufacturing facilities

Financial position

The pre-selected list may be accessed at the GPPB

website

https://www.gppb.gov.ph/preselectedSuppliers.php
Limited Source Bidding

???

=
Who prepares the pre- It is the relevant government
selected list of agency expert in the procurement
suppliers/consultants? concerned. In the absence of
relevant government agency, the
PE through its BAC, with
assistance of its TWG, shall
prepare the preselected list.
DIRECT
CONTRACTING
Background Applicability Conditions Documentary
Requirements

“Single Source
Procurement” Items of proprietary Mayor’s Permit
nature (i.e. patents, copyrights)
Does not require
elaborate bidding
Goods PhilGEPS Reg. No.
documents Critical components
from a specific supplier
Offer may be
accepted Income/Business
immediately or after Tax Return
some negotiations. Items sold by exclusive For ABCs above
manufacturer PhP500,000.00
REPEAT
ORDER
Background
Procurement from the previous winning bidder,
whenever there is a need to replenish
procured under a goods
contract previously awarded
through Competitive Bidding.

Applicability

Goods
REPEAT
ORDER
Conditions

Original contract awarded Same or lower unit prices No splitting of contracts,

through competitive than those in the original requisitions & Purchase
bidding contract Orders

6 months < 25%

Availed of within 6 Not to exceed 25% of Must be quantifiable, divisible
months from the date of quantity of each item in and consisting of at least four
the NTP original contract (4) units per item
SHOPPING

Background Documentary
Applicability Conditions
Requirements
PE requests price
quotations
Shopping A Shopping B
Procurement of [ Section. 52.1(a) ] [ Section. 52.1(b) ]
readily available off-
the-shelf goods or Goods
ordinary/regular
equipment Mayor’s Permit
Shopping B
[ Section. 52.1(b) ]
Procured directly
PhilGEPS Reg. No.
from suppliers of
known qualifications
SHOPPING
Conditions
Shopping A
[ Section. 52.1(a) ]
There is an unforeseen Vs.
contingency requiring
immediate purchase; and
Amount does not exceed
the threshold.
Conditions Latest Update:
CSE Items not
Shopping B available in DBM-PS
[ Section. 52.1(b) ] may be procured
from other sources
Procurement of ordinary or without the need of
regular office supplies and securing of
equipment not available in Certificate of Non-
PS-DBM; and Availability of Stocks
Amount does not exceed (CNAS), subject to
the threshold. conditions set forth
in GPPB-Resolution
No. 17-2020
SHOPPING

Threshold Threshold

Shopping A Shopping B
[ Section. 52.1(a) ] [ Section. 52.1(b) ]

PhP200,000.00 Vs. PhP1,000,000.00

for NGAs, GOCCs, GFIs, for NGAs, GOCCs, GFIs,
SUCs & Autonomous SUCs & Autonomous
Regional Government Regional Government
SHOPPING
Procedures
Shopping A
[ Section. 52.1(a) ]
The RFQ may be sent
directly to the supplier of Vs.
known technical, legal and
financial qualifications.
Sending & receipt of one
(1) RFQ will suffice.
Posting of the RFQ may be
dispensed with.
Procedures
Shopping B
[ Section. 52.1(b) ]
BAC shall send RFQs to at least
three (3) suppliers of known
qualifications, & at least three
(3) price quotations must be
obtained.
NEGOTIATED
PROCUREMENT
NEGOTIATED
PROCUREMENT
Applicability

Two Failed Biddings

Goods Infrastructure Consulting
Projects Services

Background Conditions

No bids were received

Undertaken when there has been
failure of competitive bidding or
limited source bidding for the
second time
All prospective bidders are ineligible
All bids failed to comply all of the
with bid requirements, post-qualification, or there
successfulisnegotiation;
no or
The Single/LCRB/HRCB refuses, without justifiable
cause, to accept the award or no award was made
NEGOTIATED
PROCUREMENT
Exception

Failure of Bidding as Declared by the HoPE

Two Failed Biddings
If the failure of bidding is due to the declaration by the
HOPE pursuant to Section 41 of the IRR , Negotiated
Procurement (Two Failed Biddings) cannot be resorted to.

Procedural Guidelines

Declaration of 2 Failed
Mandatory Preparation of
Competitive RFQ/Bid
Review
Bidding/LSB Docs
Observers shall be
invited in all
Invite at least (3)
suppliers/contractors/ Best Offer
Awarding of stages
Contract
consultants
NEGOTIATED
PROCUREMENT

Imminent danger to life or property

during a state of calamity
Emergency
Cases
Time is of the essence arising from
natural or man-made calamities

(Section 53.2 of the

2016 IRR) Other causes where immediate action is
necessary to prevent damage to or loss of life or
property or restore vital public services,
infrastructure facilities and other public utilities
NEGOTIATED
PROCUREMENT
Applicability

Emergency Cases
Goods Infrastructure Consulting
Projects Services

Procedural Guidelines

Revision of Direct negotiation

APP and with a legally,
Purchase
validation of technically and
Request Award of
available financially capable
from
budget for supplier,
End-User Contract
the purpose contractor,
consultant
NEGOTIATED
PROCUREMENT
Take-Over of
Contracts
Procedural Guidelines
Post-Qualify & Negotiate
The BAC shall post-qualify and
negotiate starting with the 2nd
LCB or HRB at the said bidder’s
original bid price, then on to the
next if negotiation fails.
Applicability
Goods Infrastructure Consulting
Projects Services
Procedural Guidelines
If negotiation fails…
• Invite a short list of at least three (3)
suppliers, contractors or consultants
to submit bids and negotiate starting
with the LCB or HRB; or
• Resort to any other appropriate
alternative method of procurement.
NEGOTIATED
PROCUREMENT
Background

Adjacent or Where subject contract is adjacent/contiguous to

Contiguous an on-going civil work or consulting service where
contractors/consultants have unique experience &
expertise to deliver required service
Applicability

Conditions

Infrastructu Original contract is a result of competitive bidding;

re
Projects 🔨🔨 Subject contract has similar or related scopes of work;

Within the contracting capacity of the

contractor/consultant;
Consulting
Services Documentary requirements (for infrastructure
projects):
PCAB License and NFCC
NEGOTIATED
PROCUREMENT
Background
Agency-To- Procurement from another government agency (Servicing
Agency Agency) that has the mandate to deliver goods or services
Applicability or to undertake infrastructure projects or consultancy
services as required by the PE.

Goods Conditions

PE shall justify that entering into an A-to-A with Servicing

Infrastructure Agency is more efficient & economical to the government
Projects
Servicing Agency has the absorptive capacity to undertake the
project;
Servicing Agency owns or has access to necessary tools &
Consulting equipment required for the project;
Services
NEGOTIATED
PROCUREMENT
Scientific, Scholarly or Artistic Work,
Exclusive Technology & Media Services
Applicability

Goods Infrastructure Consulting

Projects Services

Work of art; commissioned work or services of an artist for specific artistic

🎨 skills (e.g., singer, performer, poet, writer, painter, sculptor, etc.);

Scientific, academic, scholarly work or research services;

Highly-specialized life-saving medical equipment, as certified by the

Department of Health;
NEGOTIATED
PROCUREMENT

Scientific, Scholarly or Artistic Work,

Exclusive Technology & Media Services
Applicability

Goods Infrastructure Consulting

Projects Services

Procedural Guidelines

Market Study by Direct negotiation with Award of

End-User to supplier, contractor,
Contract
justification consultant
NEGOTIATED
PROCUREMENT
Background

Procurement of consultancy contract involving an

Highly Technical
individual consultant who is found to be legally,
Consultants technically and financially capable after
negotiation.

Applicability
Conditions

Work involves highly technical or proprietary; or primarily

confidential or policy determining, where trust and
confidence are the primary consideration; and
Consulting
Services Term is, at the most, six (6) months basis, renewable at the
option of the appointing HOPE, but in no case to exceed
the term of the latter.
NEGOTIATED
PROCUREMENT
Applicability
Small Value
Procurement
Goods Infrastructu Consulting
Background re Services
Projects
Procurement not covered Procedures
by Shopping under Sec. 52 The BAC shall prepare and send the RFQs/RFPs to at least three
(3) suppliers, contractors or consultants of known qualifications.
For procurement activities with ABC of above PhP50,000.00, RFQ
Threshold shall be posted in the PhilGEPS website, PE’s website &
conspicuous place in the premises of the PE
PhP1,000,000.00 Receipt of at least one (1) quotation/proposal is sufficient to
for NGAs, GOCCs, GFIs, SUCs & proceed with the evaluation.
Autonomous Regional Government
NEGOTIATED
PROCUREMENT
Small Value Procurement
Procedural Guidelines

Post in PhilGEPS,
PE’s website and
conspicuous place Send RFQ/RFP to at
Prepare for 3 cd least 3 suppliers
RFQ/RFP *Except for ABC 50k and
below
Receipt of 1 RFQ in SVP will
*Extend deadline if no suffice
quotation is received

Award to LCB/HRB
Prepare Abstract that complies with
of Quotations specs and ABC
NEGOTIATED
PROCUREMENT
Background
Lease of Procurement covering lease of
Real Property & Venue real property/venue for official use.

Conditions
The End-User shall justify that resorting to Lease of Real Property or Venue is
more efficient and economical. Cost-Benefit Analysis is needed in case of
renewal of lease.
Technical Specifications shall be prepared taking into consideration the Rating
Factors under Appendix B.

Procedural Guidelines
BAC shall invite at least 3 prospective lessors/venues within the vicinity of the
selected location to submit sealed price quotations for real-property & open
price quotations for venue.
Receipt of at least one (1) quotation is sufficient to proceed with the evaluation.