STANDARD BIDDING PROCEDURES

FOR GOODS AND INFRASTRUCTURE

PROJECTS
GENERAL PRINCIPLES
AND
CONSIDERATIONS
GENERAL MODE OF PROCUREMENT

• Use of Competitive
Bidding
WHAT ARE GOODS?

Trucking Office Subscription

Stationery
Equipment

Security Fixture and Media

Repairs
Furnitures
INFRASTRUCTURE PROJECTS

Include the construction, improvement,

rehabilitation, demolition, repair,
restoration or maintenance of roads and
bridges, railways, airports, seaports, communication
facilities, civil works components of information
technology projects, irrigation, flood control and
drainage, water supply, sanitation, sewerage and
solid waste management systems, shore protection,
energy/power and electrification facilities, national
buildings, school buildings, hospital buildings, and
other related construction projects of the
government.
REQUIREMENTS PRIOR TO COMMENCEMENT OF PROCUREMENT
– GOODS AND SERVICES

ADDITIONAL Documents FOR ALTERNATIVE MODE OF

COMMON TO ALL MODES OF PROCUREMENT PROCUREMENT

 Purchase Request with Delivery and Payment Term  Market Study

 Terms of Reference / Scope of Work (if necessary)
 Justification
 Obligation Request / Certification from Accounting (Trust Fund Trust
Liabilities)  At least 3 quotations (Lease)
 PPMP
 APP  Table of Ratings – Passing Rate (Lease)
 Supplies Availability Inquiry  Delivery Schedule (Food Packs)
 Approved MYCA / MYOA / its Equivalent with Contract Term (MYCA
Contracts)  Certificate of Exclusivity (Direct Contracting)
 DILG Certification (4-wheel Vehicles)
 Certification from Agency (Agency to Agency)
 Approval of HOPE (Heavy Equipment / Ambulance / Firetruck)

*Other documents that may be required by law

REQUIREMENTS PRIOR TO COMMENCEMENT OF PROCUREMENT
– GOODS AND SERVICES
ADDITIONAL DOCUMENTS FOR
ALTERNATIVE MODE OF PROCUREMENT
 Unit cost is same / less than the original contract
(Repeat Order)
 Proof of partial delivery, inspection, acceptance
(Repeat Order)
 w/in 6 months from date of NTP (Repeat Order)
REQUIREMENTS PRIOR TO COMMENCEMENT OF PROCUREMENT
– CIVIL WORKS
COMMON TO ALL MODES OF
PROCUREMENT
 Approved Plan / POW
 Obligation Request / Certification from
Accounting (Trust Fund Trust Liabilities)
 PPMP
 APP
 Key Personnel and Equipment
 All necessary Government Permits
BIDDING PROCEDURE
SINGLE STAGE
SINGLE STAGE 2 - PW PROTECTED
2 - ENVELOPE SYSTEM BIDDING
DOCUMENTS

BID TECHNICAL
PW: XXXX
TECHNICAL
FINANCIAL

FINANCIAL
PW: XXXX
WHO ARE ELIGIBLE BIDDERS?

Duly licensed Corporations with at least Cooperatives duly

Filipino citizens/ sole 60% Filipino interest organized under the laws
proprietorships or ownership of the Philippines
Foreign bidders
(Treaty or
International or
Executive Agreement)
Partnerships with at Joint Ventures (JVs) with at
least 60% Filipino least 60% Filipino interest
interest or ownership or ownership
INVITATION TO OBSERVERS
AT LEAST 3 OBSERVERS:

They MUST be invited in writing at least

FIVE (5) CALENDAR DAYS (CD) before the date
of the following procurement activity:

PRE-BID CONFERENCE PRELIMINARY BID

EXAMINATION

COA
DULY RECOGNIZED POST-QUALIFICATION BID EVALUATION
PRIVATE SECTOR
GROUP

NGO
on
 COMPETITIVE
BIDDING PROCEDURE
AND REQUIREMENTS
STANDARD COMPETITIVE BIDDING PROCEDURE
FOR GOODS AND SERVICES
Pre-Procurement Advertisement Pre-Bid
Conference 7 Conference
cd as
ncessary

Opening of 1st Envelope –

Submission of Opening of 2nd Envelope –
12-45 Eligibility Documents &
Financial Proposal
Bids Technical Proposal

cd

Bid Evaluation Award

Post-qualification
7 cd and Ranking
12/
of Contract 15
45 cd cd
STANDARD COMPETITIVE BIDDING PROCEDURE
FOR INFRASTRUCTURE PROJECT
Pre-Procurement Advertisement Pre-Bid
Conference 7 Conference
cd as
necessary

Opening of 1st Envelope –

Submission of Opening of 2nd Envelope –
Eligibility Documents &
Bids Financial Proposal
50 or Technical Proposal

65 cd

Bid Evaluation Award

Post-qualification
7 cd and Ranking
12/
of Contract 15
45 cd cd
POSSIBLE PERIODS TO COMPLETE THE
PROCUREMENT ACTIVITY FOR GOODS

EARLIEST PERIOD MAXIMUM PERIOD

26 CDs 136 CDs

Excluding Approval of Higher Authority, if applicable
POSSIBLE PERIODS TO COMPLETE THE
PROCUREMENT ACTIVITY FOR INFRA
PROJECTS
MAXIMUM PERIOD
EARLIEST PERIOD

156 MAXIMUM PERIOD

26 CDs CDs 141

CDs
Excluding Approval of Higher Authority, if applicable
PRE-PROCUREMENT CONFERENCE
PURPOSE: TO DETERMINE THE READINESS OF THE PROCUREMENT

TIMELINE CONDITION PARTICIPANTS

❑ BAC
Mandatory for projects ❑ BAC Secretariat
Conducted prior to with ABC above Php2M ❑ TWG
advertisement or for Goods ❑ Consultants for the subject
posting of the IB and above Php5M for procurement project, if any
Infra Projects ❑ End-user unit
❑ Other Officials
REFERENCE TO BRAND NAMES

❑ 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.
SEC. 18 OF RA 9184 AND ITS IRR
ADVERTISEMENT / POSTING OF THE
INVITATION TO BID
PURPOSE: START THE BIDDING PROCESS AND INVITE INTERESTED BIDDERS TO
PARTICIPATE IN THE PROCUREMENT ACTIVITY

TIMELINE

7
calendar days
www.xxxx.gov.ph

continuously
PRE-BID CONFERENCE
TIMELINE
PURPOSE
at least

12
To discuss, clarify and explain,
among other things, the eligibility
requirements and the technical
and financial components of the
calendar days
contract to be bid
before deadline for questions clarifications
including and
bid submission but not raised by the prospective bidders
earlier than 7 CDs
from the before and during the Pre-Bid
PhilGEPS posting Conference
SUPPLEMENTAL/BID BULLETINS

TIMELINE PURPOSE
issued at least

7
Issued by the BAC, duly
BID BULLETIN signed by BAC
Chairperson, to:
❑ Answer requests
for clarification or
calendar days interpretation
before deadline for
bid submission. ❑ Clarify or modify any
Queries should be submitted provision of
to the BAC 10 CDs before
deadline for bid submission. Bidding Documents
SUBMISSION AND RECEIPT OF BIDS
BID VALIDITY

120
Financi
al
Propos
al

calendar days
from the date of the
opening of
bids
SUBMISSION AND RECEIPT OF BIDS
Date of submission should not be later than the
following periods from the last day of posting of For bids submitted
IB: electronically, the PEs
shall generate a Bid
GOODS INFRA INFRA receipt page for the
official time of

45 50 65
submission which can
be saved or printed by
the bidder, upon receipt
calendar days calendar days
of the first and second
calendar days envelope
above Php50M Php50M below

GPPB RESOLUTION
NO. 09-2020
OPENING AND PRELIMINARY EXAMINATION OF BIDS

The BAC shall open the bids in public immediately after the deadline for the
submission and receipt of bids

1st ENVELOPE 2ND ENVELOPE Ranking

❑ presence or
absence Only bidders
Only 2nd Envelopes
❑ checklist of whose 1st and 2nd
of bidders whose 1st
required envelopes were
Envelope was rated
documents rated “PASSED”
❑ non-discretionary “PASSED” shall be
will be ranked as
“pass/fail” opened
read
criterion
OPENING AND EVALUATION OF 1ST ENVELOPE

TECHNICAL COMPONENT
Eligibility Technical
Requirements Requirements

Class “A”
✔Legal Documents Bid Security
✔Technical Documents
✔Financial Documents

Class “B”
Project Requirements
✔Joint Venture Agreement

Omnibus Sworn Statement

ELIGIBILITY REQUIREMENTS

CLASS “A”
CLASS “A” CLASS “A”
TECHNICAL CLASS “B”
LEGAL Documents FINANCIAL Documents
Documents
Net Financial In case of Joint
PhilGEPS Certificate of Statement of All
Contracting Venture, JV
Registration (PLATINUM Ongoing
Capacity (NFCC) Agreement entered
MEMBERSHIP) Contracts
or CLC (for Goods) into by the parties
OR
SEC Certificate of Statement of Single
Registration / DTI Largest Completed
Registration Contract (SLCC)
Mayor’s Business
Permit
Valid PCAB License / Special PCAB
Tax Clearance
License for JVA (for Infra)
Audited Financial
Statement
LEGAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

❑ Recently expired Mayor’s/Business

permit SHALL BE ACCEPTED together
with the OR
MAYOR’S PERMIT
❑ The renewed permit shall be submitted
as a POST-QUALIFICATION
REQUIREMENT in accordance with
Sec. 34.2 of the 2016 IRR of RA 9184
LEGAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

❑ Submission of BIR receipt for renewal

TAX CLEARANC E
of Tax Clearance will not suffice in lieu
of a valid Tax Clearance Requirement.

❑ Submission of Provisionary Tax

Clearance issued by the for
bidding purposes is BIRnot acceptable
form Tax Clearance (GPPB
of
Resolution No. 01-2014).
TECHNICAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

STATEMENT OF ALL ONGOING GOVERNMENT AND

PRIVATE CONTRACTS

❑ Statement of the prospective bidder of all

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.

❑ The statement shall include ALL

information required in the Bidding
Documents
TECHNICAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

STATEMENT OF SINGLE LARGEST COMPLETED CONTRACT (SLCC)

GENERAL RULE EXEPTIONS

EXPENDABLE
SUPPLIES
if then
at the outset and after require at least 2 similar

SERVICES &
25% market research,
applying the general
contracts aggregate
amount at least equivalent
NON-EXPENDABLE to required percentage;
rule will likely result to:
SUPPLIES and largest of the similar
FAILURE OF contracts amounts to at
50% BIDDING
or
least 50% of required
percentage.
MONOPOLY
TECHNICAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

STATEMENT OF SINGLE LARGEST COMPLETED CONTRACT (SLCC)

INFRASTRUCTURE PROJECTS

❑ The SLCC completed should be similar to the contract to be bid, or

has the same major categories of work

❑ The SLCC’s value should be at least 50% of the ABC to be bid upon
adjustment to current prices using the PSA consumer price indices

❑ Contractors under Small A and Small B categories without similar

experience on the contract may participate if the cost of the contract
to be bid is not more than the Allowable Range of Contract Cost
(ARCC) of their registration
TECHNICAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

PHILIPPINE CONTRACTOR’S ACCREDITATION BOARD

PCAB LICENSE

❑ valid PCAB License or

❑ Special PCAB License for JV

❑ Registration for the type and cost of the contract to be bid,

should be valid at the time of the deadline for the
submission and opening of bids.
FINANCIAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

AUDITED FINANCIAL STATEMENT

❑ showing, among others, the bidder’s total

and current assets and liabilities
❑ stamped “RECEIVED” by the BIR or its duly
accredited and authorized institutions
❑ AFS for the preceding calendar year which
should not be earlier than two (2) years
from the date of bid submission
FINANCIAL ELIGIBILITY REQUIREMENTS (CLASS “A”)
For Goods and Infrastructure Projects
NET FINANCIAL CONTRACTING CAPACITY (NFCC)

❑ The NFCC value should be at least equal to the ABC to

be bid.
[(Current assets minus current liabilities) (K)] minus the

=
value of all outstanding or uncompleted portions of the
NFCC projects under ongoing contracts, including awarded
contracts yet to be started, coinciding with the contract to be
bid.

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

contract duration

For Goods : either NFCC or Credit Line Certificate

(CLC)
BID SECURITY
PURPOSE: FORMS:

To guarantee that the

successful bidder
2%
of the
shall, within ten (10) ABC

CDs from receipt of

the notice of award,
CASH OR CASHIER’S/ BID SECURING DECLARATION
enter into contract MANAGER’S CHECK
with the PE and BANK GUARANTEE / DRAFT OR
furnish the IRREVOCABLE LETTER OF CREDIT,
ISSUED BY A UNIVERSAL OR
performance security COMMERCIAL BANK
required.
5% SURETY BOND CALLABLE
of the UPON DEMAND
ABC
OMNIBUS SWORN STATEMENT
REVISED OMNIBUS SWORN STATEMENT

❖ Non-inclusion in blacklist (*revised*) ❖ Non-payment (directly or indirectly) any

❖ Authenticity of documents
❖ Verification authority
❖ Signatory’s authority
❖ Disclosure of relations
❖ Responsibilities of bidders
❖ Labor laws and standards
commission, amount, fee, or any form
of consideration in relation to any
procurement project or activity
❖ In case advance payment was made or
given, failure to perform or deliver any of
the obligations and undertakings in the
contract shall be sufficient grounds to
constitute criminal liability (*new*)

GPPB RESOLUTION NO. 16-2020

OPENING AND EVALUATION OF 2ND
ENVELOPE
2nd ENVELOPE: FINANCIAL PROPOSAL

❑ FINANCIAL BID FORM, including:

❖ Bid Prices
❖ Bill of Quantities
❖ Price Schedules
❑ In case of GOODS, Certification from the DTI if
claiming preference as DOMESTIC BIDDER (RA
No. 10667)

❑ Other documents required in the

bidding
documents
DETAILED EVALUATION OF BIDS

PURPOSE METHOD TIMELINE

To determine the A non-discretionary should be

criterion shall be used, completedwithin
Lowest Calculated
which shall include

7
Bid (LCB) , by: consideration of:
❑ Establishing correct ❑ Completeness of bids;
calculated prices of and
bids; and ❑ Minor arithmetical
❑ Ranking calculated corrections calendar days
from the deadline for
total bid prices from
Results shall be contained receipt
lowest to highest in the ABSTRACT OF of proposals

BIDS
POST-QUALIFICATION
PURPOSE METHOD TIMELINE
should be completed within
To determine whether

12
the LCB complies with A non-discretionary
and is responsive to all pass or fail criterion
requirements and shall be used to
conditions as specified “VERIFY, VALIDATE calendar days
in the Bidding AND ASCERTAIN” all
TI
Documents, to be statements and
ME
declared the Lowest documents submitted
LI
Calculated and by the LCB
NE
Responsive Bid (LCRB)
should be
complete
d within

4
AWARD OF CONTRACT

❑ The BAC shall recommend award of contract to the

Lowest Calculated and Responsive Bid (LCRB) at
submitted price or calculated price, whichever is
lower.
TIMELINE
❑ The BAC shall notify all other bidders, in writing, of
its recommendation to HoPE of award of contract to within

15
LCRB within 3 CD from the issuance of the resolution
recommending award.

calendar days
APPROVE or
DISAPPROVED by the HoPE
AWARD OF CONTRACT
POSTING REQUIREMENT

NOTICE OF
AWARD
within

3
calendar days
www.xxxx.gov.ph

from the date of issuance o f

the NOA
AWARD OF CONTRACT

Award of contract is subject to the following conditions within 10 CD

from issuance of NOA:
□ If JV, submission of JVA
□ In the case of procurement by a Philippine Foreign Office or Post,
PhilGEPS Registration Number
□ If foreign-funded and stated in treaty, international or executive
agreement,
PCAB License
□ Posting of Performance Security
□ Signing of Contract upon compliance with all documentary requirements
□ If required, approvals by higher authority
PERFORMANCE SECURITY
PURPOSE:
FORMS:
Not less
To guarantee performance than
of obligation by the LCRB 5%
in such form and amount of the

specified in the Bidding CASH OR CASHIER’S/

Contract
Price GOODS Not less
than
Documents. MANAGER’S CHECK
BANK GUARANTEE / DRAFT OR
10%
of the
IRREVOCABLE LETTER OF CREDIT,
FAILURE TO POST: ISSUED BY A UNIVERSAL OR INFRA PROJ. Contract
Price
COMMERCIAL BANK
❑ Ground for disqualification

❑ Next-ranked LCB shall

undertake post-qualification
Not less
than
❑ Bid security shall be
30% SURETY BOND CALLABLE
forfeited without prejudice of the UPON DEMAND
to the imposition of Contract
sanctions Price
NOTICE TO PROCEED (NTP)
ISSUANCE POSTING REQUIREMENT
within NTP &

7
CONTRACT

within

15
calendar days
from the date of approval of
the contract

calendar days
All notices called for by the from the date of issuance
terms of the contract shall be
effective only at the time
www.xxxx.gov. ph
of receipt thereof by the
successful bidder.
WARRANTY SECURITY
PURPOSE WARRANTY PERIOD
To guarantee that the
contractor shall perform PERMANENT STRUCTURES
his responsibilities and 15 (Types 4 and 5; Ex. steel, iron,
shall answer for a liability years concrete)
arising due to:
SEMI-PERMANENT STRUCTURES
❑ improper construction (Types 1,2 and 3; Ex. roads, concrete
5
river control, drainage, irrigation lined
years
canals)
❑ use of inferior
quality/standard
OTHER STRUCTURES
2
❑ any violation of the (Ex. wooden bridges, spring
contract plans years developments)
and specifications
FAILURE OF BIDDING
BAC shall DECLARE A
WAY FORWARD:
FAILURE OF BIDDING, when:
❑ Mandatory review shall be
No bids are received;
conducted by BAC

Bids were received but no ❑ Based on its findings,

one was eligible; BAC shall:
❖ Revise terms, conditions,
All bids failed to post qualify; or specifications
❖ Adjust ABC, subject to
Refusal of the post-qualified required
bidder to accept award approvals
❖ Re-bidding
without justifiable cause
❖ Re-advertisement
Sec. 35 of RA 9184
CANCELLATION / TERMINATION OF
PROCUREMENT ACTIVITIES
1 The physical and 2 3 4
The source Brought about
economic The project by the
conditions have
is no longer of funds
significantly declaration of
changed so as to necessary for the a State of
render the project project Calamity, or
as
no longer has been implementatio
economically, determined withheld or n of
financially, or by the reduced
community
technically quarantine or
feasible, as end-user through no similar
determined by the unit fault of the restrictions
end-user unit
PE
GPPB RESOLUTION NO. 09-2020
RESERVATION CLAUSE
HoPE reserves the right to:
Reject any and all bids
Declare a failure of
bidding
Not award the
contract
Sec. 41 of RA 9184
GROUNDS:
❑ Prima facie evidence of collusion
❑ BAC is found to have failed in following
 the prescribed bidding procedures
❑ 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.