PROCUREMENT POLICIES

& PROCESSES
The Process
 No. RESPONSIBILITY PROCESS
P 1 Proponent PR / RCA with approved budget and
attached specs and tender documents
R
Proponent / Consultant /
O 2 Procurement /
Selection / Pre-qualification of at least 3
vendors and Determination of
C with Bidcom approval as per limits Procurement Strategy

U
3 Proponent Pre-bid / clarificatory conferences with
R vendors (if nec.)
E
M 4 Procurement / Finance / PDG Opening of Bids (if nec.)

E Proponent / Concerned Resource

5 Evaluation of Bids and Recommendations
N (i.e. QS, consultant etc.)
T 6 COO / Proponent / Procurement / Preliminary meeting with COO &
Concerned Officers concerned officers (as nec.)

P Deal Closing of Vendors (if nec.)

R 7 Bidding Committee / Internal
O Bidcom
C Tech. Consultant / Procurement
1) Negotiation
2) Signed/Approved Proposal/ Resolution
3) Minutes of the meeting

E Issuance of contract & supporting docs to

supplier and Finance
S 8 Procurement / Proponent 1) PO / Contract / Agreement/ NTP
2) Approved Vendor Proposal / Abstract /
S Resolution/ Minutes signed by Bidcom

9
Procurement / Finance Management Reporting
CHANGE ORDER
Step RESPONSIBILITY PROCESS
Instruction to execute work through
a Technical Management Group (TMG) Phonecall, text or email
(For emergency/urgent cases)

b Technical Management Group Work Authorization Order (WAO)

c TMG / Concerned Resource Evaluation of Cost Estimate from vendor

(i.e. QS, consultant etc.) and Recommendations

Change Order Preparation and

d Technical Management Group Recommending Approval

Deal Closing / (Change Order Approval)

Bidding Committee / Internal 1) Negotiation (if nec.)
e Bidcom 2) Signed/Approved CO / Resolution
TMG (Consultant) / Procurement 3) Minutes of the meeting

f TMG / Procurement System PR & PO Processing

Issuance of contract & supporting docs to

supplier and Finance
g TMG / Procurement
1) CO / Contract / Agreement / NTP
2) Approved Vendor Proposal / Abstract /
Resolution/ Minutes signed by Bidcom

h Procurement / Finance Management Reporting

Next Steps
• Board approval on recommended policies / limits of
authorities
• One-time Bidcom approval of Design-related consultancy
purchases
• Signature Specimen (for controllership use)
• Standard Forms to be finalized by Procurement
• Roadshow
Thank You!
Purchase Requisition (PR) / 1

Request for Contract Approval (RCA)

Cost Regular Outright Nego /
Purchase Prop Negotiated

Department
Up to Head / Deputy
2,000,000 (Proponent) COO
(approved
memo with
2,000,000 COO justification)
above
Note:
Proponent shall consult Procurement Department to determine estimated cost as needed.

As needed, Procurement Department will request for the approval of the COO for purchase
requests through certain outright negotiation. As needed, Procurement will also ask for a
proof of approval for any instances when the proponent directly sourced, negotiated and
awarded the contract. Awarding or approval of these purchases will still need to go through
Bidcom based on purchase cost/price classification levels.

Design team will directly source, evaluate, negotiate and award design-related consultancy
services regardless of amounts as long as within budget.

Purchase requests for 2M and above will require a signed source document by the COO
 2

Procurement Strategy
 Sealed Bidding
 Informal Bidding / Canvassing
 Outright Negotiation
• Recurring purchases
• within 3 months from last purchase
• prior formal/informal bidding was performed
• awarded supplier has not changed prices or any price increase since last purchase is
within reasonable limits
• Urgent purchases
• Specialized purchases
• Change orders
• Special/Political accommodation
• Exclusive suppliers
• Vendor is a Gaisano subsidiary

Note: Any request for outright negotiation including its justification should be indicated by the
proponent in a source document /memo approved by the COO
 2
Limits of Authority – Proc. Strategy & Shortlist of Vendors

Cost Procurement Strategy

& Shortlist of Vendors
Up to 500,000 As determined by
Procurement Head
500,000 to 2,000,000 As approved by
Internal Bidcom
2,000,000 above As approved by Bidcom
 2
Request for Bidcom Resolution – Pre-bid (Proc.
Strategy & Shortlist of Vendors)
 Agenda includes but is not limited to the following:

 Approval of procurement strategy for packages 2M and above (by default,

Bidcom participates in deal-closing activities for this budget classification)

 Approval of shortlisted vendors for packages 2M above

 Approval of budget, contract packaging, terms and conditions

 2

Vendor Accreditation
• For a minimum purchase budget/price of 50,000 or at least 2 purchase transactions with
the supplier

• Vendor may be evaluated internally or externally through an accreditation provider (D&B)

• Technical evaluation by proponent to be made as needed

• Issuance of a certificate/letter confirming accreditation

• Validity of granted accreditation of 1 year

• Re-evaluation for the renewal of accreditation prior to making subsequent purchases

from these suppliers. (with discretion to re-evaluate / pre-qualify vendors prior to
expiration of accreditation)

• Conditional accreditation may be granted but certain limitations shall apply (e.g. no DP
policy, restricted payment terms etc.)

• Central database of accredited suppliers having relevant information with supporting

supplier folders to be properly maintained
 2

Vendor Accreditation
Vendors excluded from Pre-qualification Vendors excluded from Pre-qualification
required to submit a minimum set of
• Hotel & lodging requirements
• Restaurant/Catering
• Government Units • Rental Service Provider
• Non-government Organization • Advertising Agencies
• Bank and other Bank related services • Uniform/Tailoring services
• Utility company (electric, gas, water, etc) • Appliances distributors/dealers
• Postal & Communication services • Foreign Companies
• Publication Companies (radio, print, (Consultants/Suppliers)
broadcast, media), PR Services • Travel Agencies
• Food and Beverage manufacturers, • Consultancy Firms
distributors (Engineering/Architectural, Management
• Medical & Dental services Consultants, etc)
• Human Resource agencies/Talent
Resource units/Individual Consultants
• Car dealers
• Department Stores/consumer goods
shops
 4
Limits of Authority – Sealed Bids Opening

Cost Opening of Sealed Bids

below 500,000 Procurement

500,000 to 2,000,000 Procurement, Finance

2,000,000 above Proc., Finance, PDG

Note:
 Submission of sealed bids should be to an independent bid box custodian.
Opening of all sealed bids should be performed on the same bid opening date with
all required representatives affixing their signatures on each proposal and the bid
opening report as proof of witnessing.

 For outright negotiation, requirements on opening of sealed bids need not be

applied.
Limits of Authority – Negotiation & Awarding 7

(Deal-Closing)

Cost Negotiation & Awarding

Up to 500,000 Procurement

500,000 – 2,000,000 Internal Bidcom

2,000,000 above Bidding Committee

 Alternate 7
Bidding Committee Composition
Chairperson
(FSGaisano)
Chairperson
(ACJamandre)
Witness as needed
(Internal Audit)
Secreta
riat
(Proc.
Mgr./
Officer)
Me
Me mbe
Me
mbe r
mbe
r
r
PDG Proc
(CF
Hea .
O)
d Hea
d

 A Quorum is comprised of the Chair or his/her appointed

alternate and any of two (2) Bidding Committee members

 Should a member of the Bidcom be the main proponent of a

particular package to be awarded, JMTongson will take the place
of this member.
 7
Internal Bidding
Chairperson
(COO)
Committee
Alternate
Chairperson (CFO)
Composition
Witness as needed
(Internal Audit)
Secreta
riat
(Proc.
Mgr./
Officer)

Me
Me
Me mbe
mbe
mbe r
r
r
(CG
(CF (DG
Narc
O) Pug
iso)
a)

 A Quorum is comprised of the Chair or his/her appointed

alternate and any of two (2) Bidding Committee members

 Should a member of the Bidcom be the main proponent of a

particular package to be awarded, JMTongson will take the place
of this member.
Limits of Authority – Purchase Order 8

Cost PO Approval

below 50,000 Procurement Head

above 50,000 Procurement Head & CFO

 Limits of Authority - Summary
Cost Proc. Strategy Opening of Negotiation / PO Approval
& Shortlist Sealed Bids Deal Closing
below 50,000 Procurement
As approved (up to 500K )
by Proc. Head Procurement Procurement
50,000 –
500,000
500,000 – As approved Procurement, Internal
Proc. Head &
2,000,000 by Internal Finance Bidcom
CFO
Bidcom

2,000,000 As approved Procurement, Bidding

above by Bidcom Finance, PDG Committee

Assumption: Purchase requisitions have had prior approval and within budget

Note: Procurement Head will be the sole signatory for all purchases within the below
50K cost classification provided that cumulative purchase costs for this classification
does not exceed 500K per month. Any purchase beyond this threshold will require the
countersigning of the CFO.
Limits of Authority - Change Order
Cost Negotiation / Deal Closing
including CO final approval

500,000 Procurement Head and CFO

below

500,000 – Internal Bidding Committee

2,000,000

2,000,000
above Bidding Committee
Management Reporting 9

 Monthly reports with current month and year-to-date

information for project and non-project related purchases
 Information such as but not limited to the following should be
present:
 Contract Package
 Awarded Amount
 Date Awarded
 Awarded supplier
 Project Name
 Awarded/Deal closed by (Bidcom / Jr. Bidcom members present,
procurement, proponent)
 Report to be noted by Finance representative
 Recipients: BOD, Bidcom, President, COO, ACJ