4.0.

The Existing System

1.0

Objective
To establish a policy and procedure of the Bidding & Award of goods
and/ or services.

2.0

Definition of terms
PAS Purchasing Account Staf
P.R. Purchase Requisition
P.O. Purchase Order
CAPEX Capital Expenditure Authorization Request
RFP Request for payment
NTP Notice to Proceed

3.0

Reference

4.0

Details
4.1. Guidelines
4.1.1 P.R or CAPEX
Stock/Inventory Items (under Inventory Management Control):
Requisition by
: Inventory Control Supervisor
Recommended by : Accounting Manager
Approved by : Finance Division Manager and concerned Division
Head
Non-Stock Items
Requisitioned by : Department Personnel
Recommended by : Department Head
Approved by : Division Head
CAPEX (replaces P.R. form for CAPEX items)
Requisitioned by : Department Manager
Recommended by : Division manager and Finance Manager
Approved by : EVP/G.M. and/or President
Note: Approved P.R. or CAPEX are then distributed by the
requisitioning units personnel
As follows:
For P.R.
Original (white) and Pink copy : Purchasing Department
Blue copy
: Requisitioning Department (copy
will serve as
Receiving copy of endusers)
Yellow copy
: attached to the RFP for processing
of payment
(Copy will serve as
Finance Copy)
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Shangri-La Plaza Corporation

4.1.2 Bidding Invitation

A Letter of invitation to Bid (or attend a Pre-Bid Conference) must
be prepared and kept
File for auditing and/or reporting purposes by the Purchasing
Department
4.1.3 Pre Bid Conference
A Pre-Bid Conference maybe conducted by the Bidding
Committee where the bidders will be appraised of the scope
work, terms of reference, technical aspects of the bid and the
bidding procedures.
Bidders who participated in the pre-bid conference shall fill out
an attendance sheet.
The following document and/or information shall be provided to
the Bidders:

Technical drawings & specifications

Terms of Reference
Date & time for closing bids
The exact venue for submission of bids
Note:

The envelope containing the bid must clearly indicate

the description of the item or work for bidding
The envelope containing the documents must be
securely sealed.
All Bids shall be addressed to the Purchasing Manager
and must be dropped at the designated bid box.
An ocular inspection of the work site may also be
conducted together with the Technical group of the
Requisitioning Department.
A Minutes of the Meeting shall be prepared to document
the discussions during the pre-bid conference
4.1.4 Bid Opening and Analysis
Bids shall be opened and signed by the Finance Division Manager
and shall correspondingly accomplish and Bid Opening Form.
The Purchasing Department shall tabulate the aforementioned
bids using the Canvass Sheet Form to include the bid price,
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specifications, terms of payment, delivery or completion

schedule. The completed Canvass sheet shall be forwarded to
the Requisitioning Department for review and analysis.
A meeting shall be conducted with all the bidders to clarify all
technical issues of their bid proposal and will also be requested
to submit their best and final price ofer.
All changes arising from the clarificatory meeting shall be
incorporated in the revised Canvass Sheet.
The Bidding Committee shall be evaluated the revised Canvass
Sheet.
If there are no bidders or insufficient no. of bids were received,
the Bidding Committee shall conduct a re-bidding unless a
justification (approved by the EVP/G.M.) will be made to approve
the opening of bids and for the committee to proceed with the
evaluation of the bids submitted. If there are less than required 5
bids, Purchasing shall immediately notify the bid working
committee. The bid working committee can either jointly prepare
request to open bids or declare failed bids.
If there is a failed bidding. Purchasing shall immediately notify
the requisitioner thru e-mail or any written memo citing the
specific basis or reason.
In case, a significant and serious deviation is discovered to
invalidate the result after bids have been open, such as - bid
proposals do not comply with the specifications required, then a
failed bidding maybe recommended by the working committee
and subject for approval by the EVP/General Manager.
4.1.5 Bid Negotiation and Award
The Bidding Committee shall recommend the lowest bidder
complying to all specifications to the Awards Committee.
The Bidding Committee shall, if required, conduct negotiations
with recommended bidder to achieve the lowest possible price
or the best value.
Upon approval of the recommendation, the requisitioner in
coordination with the Legal Department (if so required) will
prepare a service contract.
Below are the guidelines on the issuance of order documents:

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Shangri-La Plaza Corporation

For services or a combined supply of goods and

services, NTP and contract only, no P.O., NTP will be
prepared by the Purchasing Department and
recommended by the HRAS Director, Requisitioners
Division Head, Finance Division Manager for the
approval of the EVP/General Manager.
For consumer goods and equipment, P.O. only (with
annexes if necessary).

4.1.6 Waiver of Bid Procedures

Bids shall be conducted according to the procedures listed above
except:

When goods, works & services are urgently required to save

on time, labor & cost (Please refer to DP-PUR-4.3)
When a supplier/contractor is the exclusive distributor or
manufacturer
Repeat order not exceeding six (6) months from date of last
canvassing

4.1.7 Contract Monitoring and Re-Bidding

Purchasing must be provided by the end-user a copy of the legal
contract as its reference for validating the contract terms when a
request for bidding is made. This will be the nature of monitoring
by Purchasing.
Requisitioning Department shall advise Purchasing in writing
through a Purchase Requisition (PR) or formal memo of the need
for extension, renewal, or re-bidding of the contract within a
sufficient lead time together with pertinent documents necessary
for bidding.

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4.1 Flowchart
Activity
Responsibility
Start

Requisitioning
Prepares P.R or
Department
Approval of P.R
CAPEX

No
Approving
Authorities
Submits approved P.R
or CAPEX to

Yes
Requisitioning
Receives copy of P.R.
or CAPEX

Department
Logs P.R./CAPEX
details in e-logbook
Shangri-La Plaza Corporation
PreparesA bidding
requirement

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Purchasing Account
Staf (PAS)

Purchasing Account
Staf (PAS)

Purchasing Account
Staf (PAS)

Activity
Responsibility

Finalizes list of

Purchasing Account
Staf (PAS)

Schedules a Pre-Bid
Conference

Purchasing Account Staf

(PAS)/Requisitioning

Conducts Pre-Bid
Conference
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Shangri-La Plaza Corporation

Conducts
B meeting
Submits
bid
clarificatory
Opens
Tabulates
sealed
bid
bid

Department

Purchasing Account Staf

(PAS)/Requisitioning
Department

Bidder

Division Manager, Finance

Purchasing Account
Staf (PAS)

Purchasing Account Staf

(PAS)/Requisitioning
Department

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Activity
Responsibility

Reviews/Recommend

Purchasings Account
Staf
award
(PAS)/Requisitioning
Department
Prepares

Purchasing Department /
Submits for approval

Requisitioning Department
Approved?

Purchasing Account
Staf (PAS)

No
Approving

Prepares P.O. or NTP

Authorities

Yes
Acknowledges
award

If necessary,
Purchasing
Account

requests for
preparation
of
Staf (PAS)

C
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Vendor

Requisitioning
Department

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Activity
Responsibility

Prepares contract

Legal
Acknowledges
receipt of contract

Vendor
End

5.0 Attachments
DP-PUR-4.1A1 Notice to Proceed

6.0 Forms
Purchase Requisition (Refer to DP-PUR-4.2F3)
Purchase Order (Refer to DP-PUR-4.2F2)
CAPEX (Refer to DP-PUR-4.2F4)
DP-PUR-4.1F1 Request for Payment

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4.2 Problem Areas

As the proponents observed the Shangri-La Plaza Corporations
Purchase processes that is done manually, the proponents have seen
some problems that might resolve through the help of an Integrated
Procurement system. The manual purchasing forms encounters delay
in forwarding to the Purchasing Department. Nevertheless, by just
using Procurement system, the developers can help their processes to
become more efficient and fast in a secured way.

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Shangri-La Plaza Corporation