03 Bidding Procedure For Goods and Infra.10062017 - EDITED

BIDDING PROCEDURES FOR
THE PROCUREMENT OF
GOODS AND
INFRASTRUCTURE PROJECTS
Government Procurement Policy Board – Technical Support Office

GENERAL MODE OF
PROCUREMENT
 Procurement is done through Competitive Bidding.
(Sec. 10, RA 9184; NPM 67-2012)
 Exception: Alternative Methods of Procurement.

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.”
Government Procurement Policy Board – Technical Support Office 3

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:
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)

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 9184 and its IRR as it 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 80-2014

STANDARDIZED BIDDING
PROCEDURE FOR GOODS AND
Pre-Procurement Advertisement
INFRA
Pre-Bid
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

I. PRE-PROCUREMENT
CONFERENCE
 Purpose: Determine the readiness of the procurement
 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

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.

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)

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.

 Posted continuously for 7 calendar days (cd):
1. PhilGEPS;
2. Website of the PE, if any;
3. Website of IFI, if applicable; and
4. At any conspicuous place in the premises of the PE.

2M 10M for
Above 2M 10M for
Goods/ 5M 15M
Medium 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

III. PRE-BID CONFERENCE
 Forum where the PE’s representatives & the bidders discuss the different
aspects of the project
 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
 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
 The pre-bid conference shall discuss, clarify and explain, among other
things, the eligibility requirements and the technical and financial
components of the contract to be bid including questions and
clarifications raised by the prospective bidders before and during the
Pre-Bid Conference. (Sec. 22.3, IRR of RA 9184)

 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.

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

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
18
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

V. OPENING AND EVALUATION OF
1ST ENVELOPE
CONTENTS:
1. Eligibility requirements (Legal, financial and technical)
2. Bid Security
3. Technical specifications (Goods) / Project requirements (Infra)
4. Omnibus sworn statement (New Form, Sec. 25.3, 2016 IRR)
 Non-inclusion in blacklist  Responsibilities of bidders
 Authenticity of documents  Labor laws and standards
 Verification authority  Non-payment (directly or
 Signatory’s authority indirectly) any commission,
amount, fee, or any form of
 Disclosure of relations consideration in relation to any
procurement project or activity

ELIGIBILITY REQUIREMENTS
Submission of PhilGEPS Certificate of Registration and Membership in lieu
of the Class “A” eligibility documents under Sections 23.1(a) and 24.1(a)
Section 8.5.2, 2016 IRR of RA 9184 - 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.

Submission of PhilGEPS Certificate of Registration and Membership
 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. Provided, that
the winning bidder shall register with the PhilGEPS in accordance with
Sec. 37.1.4 of the 2016 IRR of RA 9184.

R e q u ire m e n ts U n d e r 2 0 1 6 I R R o f R A 9 1 8 4
GOODS INFRASTRUCTURE
Class A Documents
LEGAL:
1. PhilGEPS Certificate of Registration 1. PhilGEPS Certificate of Registration
and Membership (Also represents AFS in and Membership (Also represents AFS
addition to legal documents) and PCAB License in addition to legal
documents)
TECHNICAL:
1. Statement of all ongoing contracts. 1. Statement of all ongoing contracts.
2. Statement of SLCC 2. Statement of SLCC
3. PCAB License (For JV)
FINANCIAL:
1. NFCC computation or committed Line 1. NFCC
of Credit
Class B Document
JVA or notarized statement from the In case of JV, JVA entered into by the
partners that they will enter into joint parties.
venture if awarded the contract.

GPPB Circular 07-2017, dated 31 July 2017
The implementation of the mandatory submission of PhilGEPS

Certificate of Registration and Membership under Platinum category
for Competitive Bidding, Limited Source Bidding and Two-Failed Bidding
has been until revoked by the GPPB. For procurement projects
advertised and/or posted starting 2 September 2017, bidders may still
submit their Class “A” Eligibility Documents under Sections 23.1(a) and
24.1(a).

Class A Documents
LEGAL:
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 Zones document for Exclusive Economic Zones
or Areas or Areas
3. Tax clearance per Executive Order 3. Tax clearance per Executive Order
398, series of 2005, as finally reviewed 398, series of 2005, as finally reviewed
and approved by the BIR. and approved by the BIR.

TECHNICAL:
1. Statement of all ongoing contracts. 1. Statement of all ongoing contracts.
2. Statement of SLCC 2. Statement of SLCC
3. PCAB license and registration.
FINANCIAL:
1. Audited financial statement 1. Audited financial statement
2. NFCC computation 2. NFCC
Class B Document
JVA or notarized statement from the In case of JV, JVA entered into by the
partners that they will enter into joint parties.
venture if awarded the contract.

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

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.
 Submission of Provisionary Tax Clearance issued by the BIR for

bidding purposes is not acceptable form of Tax Clearance. (GPPB
Resolution No. 01-2014)

COMMITTED LINE OF
CREDIT
 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.

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.
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.

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)

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.

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)

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)

JOINT VENTURES
INFRASTRUCTURE
GOODS
PROJECTS
WITH AN EXISTING JOINT VENTURE: JV bidders shall submit a
submission of a valid joint venture agreement JVA in accordance with
R.A. 4566 and its IRR.
WITHOUT AN EXISTING JOINT VENTURE: *Submission of a duly

notarized statement is not
submission by each of the potential JV applicable.
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. 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)

JOINT VENTURES
SUBMISSION OF ELIGIBILITY REQUIREMENTS:
 All co-venturers shall submit their legal documents, while any of the co-
venturers shall submit technical and financial documents.
 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.

LEGAL ELIGIBILITY
GOODS CRITERIA
INFRASTRUCTURE
 General rule: 60% Filipino  General rule: 75% Filipino
 Foreign bidder allowed if:  Foreign contractors allowed if stated in
1) Stated in treaty or international or treaty or international or executive
executive agreement; agreement
2) National of a country offering
reciprocity rights to Filipinos;
3) Goods not available from local
suppliers; or
4) To prevent situations that defeat
competition or restrain trade
 If joint venture, less than 75% Filipino-

owned is allowed if -
1. Structures to be built require
techniques not possessed by 75%
Filipino-owned contractors; and
2. Should not be less than 25%
Filipino ownership

TECHNICAL ELIGIBILITY
GOODS -
CRITERIA
SINGLE LARGEST COMPLETED CONTRACT
 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 PSA consumer price
index.

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

contracts amounts to
at least 50% of
required percentage

GOODS -
CRITERIA
(Illustration)
EXPENDABLE GOODS NON-EXPENDABLE GOODS
ABC = P1,000,000.00 ABC = P1,000,000.00
GR: 25% of the ABC GR: 50% of the ABC
THUS: Previous contract should be at least THUS: Previous contract should be at least
P250,000.00 (required percentage) P500,000.00 (required percentage)
EXCEPTION: The aggregate amount of at least 2 EXCEPTION: The aggregate amount of at least 2
similar contracts is at least equivalent to the similar contracts is at least equivalent to required
required percentage; and Largest of the similar percentage; and Largest of the similar contracts
contracts amounts to at least 50% of required amounts to at least 50% of required percentage.
percentage.
THUS: 1st contract = P300,000.00
THUS: 1st contract = P100,000.00 2nd contract = P400,000.00
2nd contract = P200,000.00

I N F R A S T R U C T U R E P R O J E C T S – S I N G L E LCRITERIA
ARGEST
COMPLETED 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

I N F R A S T R U C T U R E P R O J E C T S – S I N G L E LCRITERIA
ARGEST
COMPLETED 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 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.

FINANCIAL ELIGIBILITY
CRITERIA
FOR GOODS AND INFRASTRUCTURE PROJECTS:
 Audited Financial Statement (showing prospective bidder’s total
and current assets and liabilities. )
 NFCC or CLC for Goods, and NFCC for Infra is at least equal to ABC.

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

BID SECURITY
 Only 1 form of Bid Security is required to be submitted
 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
(Sec. 27.2, 2016 IRR of RA 9184)

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.

BID SECURITY
Amount
Form of Bid Security Bid Security
(% = ABC)
a) Cash or cashier’s/manager’s check
b) Bank guarantee/draft or Irrevocable 2%

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

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)

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)

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)

1ST ENVELOPE
 Original copy of bid form shall be typed or written in ink and shall be signed
by the bidder or its duly authorized representative (Sec. 25.8, 2016 IRR of
RA 9184)
 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)
Conditions:

contract award

Conditions:

contract award

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
NOTE: Only the 2nd envelope of eligible bidders whose 1st envelope have
been rated “passed” shall be opened.
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

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)

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

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

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
3,051,364.00 3,009,492.00
increased
Award to Domestic Bidder/Entity at 2,653,360.00, or

Result Award to Foreign Bidder if Domestic Bidder/Entity refuses

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.) submitted
by the LCB

 Completed in not more than 7 cd 12 cd, or up to 30 cd 45 cd in exceptional
cases, upon approval of the HOPE.
 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 LCB. (Sec.
34.8, 2016 IRR of RA 9184)
 BAC will notify the Bidder with the Lowest Calculated Bid that it was
determined as such

 Within 3 cd 5 cd from receipt of Notice, submit the ff:
1. Latest Income and Business Tax Returns;
2. PhilGEPS Certification of Registration; and
3. 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.
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)

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.

RECOMMENDATION OF AWARD
 The BAC shall recommend award of contract to the LOWEST CALCULATED

AND RESPONSIVE BID (LCRB) at submitted price or calculated price,
whichever is lower.
 The HOPE has 7 cd 15 cd to decide whether or not to approve or disapprove the

recommendation. For GOCCs and GFIs, the period provided shall be 15 cd.

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)

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

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

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 SUCs – 15 cd
 The BAC Sec shall post the NOA in the PhilGEPS, PE’s websites and in any
conspicuous place within 3 cd from its issuance.

IX. AWARD OF CONTRACT
 Award of contract is subject to the following conditions within 10 cd from

issuance of NOA:
 If joint venture, 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
 Posted by winning bidder 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

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

CONTRACT SIGNING
 When required, the approving higher authority or his duly authorized

representative shall be given a maximum of 15 cd 20 cd from receipt to approve
or disapprove the contract.
 In the case of GOCCs, the concerned board or its duly authorized representative
shall be given a maximum of 25 cd 30 cd from receipt to approve or disapprove
the contract.

PERIOD TO COMPLETE
PROCUREMENT PROCESS
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)

NOTICE TO PROCEED
 The concerned PE shall issue the Notice to Proceed (NTP) together with a copy
or copies of the approved contract to the successful bidder within 3 cd 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.
 The BAC Sec shall post the NTP and the approved contract in the PhilGEPS
and PE’s websites within 15 cd from the issuance of the NTP.

RETENTION MONEY
 For Goods, retention money is 10% at least 1% of contract price
(Sec. 62, 2016 IRR of RA 9184)
 For Infrastructure Projects, retention money is 10% of contract price

LIQUIDATED DAMAGES
 Once the cumulative amount of liquidated damages reaches ten percent (10%)
of the amount of the contract, the PE shall may rescind or terminate the
contract, without prejudice to other courses of action and remedies available
under the circumstances.

TH A NK Y O U !
CONTACT US AT:
Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605
TeleFax: (632)900-6741 to 44
Email address: gppb@gppb.gov.ph

03 Bidding Procedure For Goods and Infra.10062017 - EDITED

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BIDDING PROCEDURES FOR

Government Procurement Policy Board – Technical Support Office

 Exception: Alternative Methods of Procurement.

Government Procurement Policy Board – Technical Support Office

Garcia vs. Burgos (291 SCRA 546)

“By its nature and characteristics, a competitive public

COA vs. RTC-NCRJR (GR NO. 85285, 7/7/89)

“Purpose is to avoid/preclude suspicion of favoritism and

Government Procurement Policy Board – Technical Support Office 3

WHAT IS COMPETITIVE BIDDING?

It is a method of procurement which is open to participation by any

Government Procurement Policy Board – Technical Support Office

Municipal Order requiring an accreditation process for Bidders as a

Government Procurement Policy Board – Technical Support Office

Bid Evaluation Post-qualification Award of

Government Procurement Policy Board – Technical Support Office

 Conducted prior to advertisement/posting of the Invitation to Bid

 Mandatory for projects with ABC above PhP 2M (goods) or 5M (infra

 Attended by the following:

Government Procurement Policy Board – Technical Support Office

Sec. 18 of RA 9184 and its IRR

 Specifications should be based on relevant characteristics, functionality

Government Procurement Policy Board – Technical Support Office

 Signals the start of the bidding process.

 Signals the availability of the bidding documents to the prospective

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office

 Posted continuously for 7 calendar days (cd):

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office

 Open to prospective bidders but attendance is not mandatory. (Sec.

 Mandatory – ABC 1M or more; Discretionary – ABC less than 1M

Government Procurement Policy Board – Technical Support Office

a. Method, nature, and complexity of contract

Government Procurement Policy Board – Technical Support Office

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

 PEs with videoconferencing capabilities that have manufacturers,

Government Procurement Policy Board – Technical Support Office

 Posted in PhilGEPS and PE’s website, and at any conspicuous place

 Bidders who have submitted bids before issuance of Supplemental/Bid

Government Procurement Policy Board – Technical Support Office

Category Maximum Period (cd)

Category Maximum Period (cd)

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office

Submission of PhilGEPS Certificate of Registration and Membership

 For foreign bidders participating in the procurement by a Philippine

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office

GPPB Circular 07-2017, dated 31 July 2017

The implementation of the mandatory submission of PhilGEPS

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office

 Recently expired Mayor’s/Business permit shall be accepted together

Government Procurement Policy Board – Technical Support Office

 Submission of Provisionary Tax Clearance issued by the BIR for

Government Procurement Policy Board – Technical Support Office

 CLC does not apply to procurement of Infrastructure Projects.

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

Government Procurement Policy Board – Technical Support Office

Government Procurement Policy Board – Technical Support Office