(GPPB Resolution No.

01-2012,
dated 27 January 2012)

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 DEFINITION OF TERMS

ORDERING AGREEMENT (OA)

A written agreement in the nature of an option
contract between the procuring entity and the
Lowest Calculated and Responsive Bidder granting
the procuring entity the option to either place an
order for any of the goods identified in the Order
Agreement List or not buy at all, within a given
period of time.

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 DEFINITION OF TERMS

ORDERING AGREEMENT LIST (OAL)

Refers to the list of goods subject of the Ordering
Agreement.
The List shall indicate the ff info:
a) Type and nature of each item;
b) Technical specifications or Scope of Work;
c) Estimated quantity of items or services which shall
be considered as the maximum quantity;
d) Estimated ABC per item or service upon
consideration of variables and factors that may
affect future market prices;
e) Total ABC including budgetary allotments per type
of product or service; and
f) Other appropriate information as may be necessary.

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 DEFINITION OF TERMS

DELIVERY ORDER CONTRACT (DOC)

Refers to a contract that authorizes and obligates a
supplier/service provider to deliver certain
quantity or render a particular service within an
agreed period and at a fixed price per unit, item or
identified service pursuant to the OA entered into
between the PE and the supplier.
Triggers the exercise by the PE of the option to
purchase in the amount, quantity, and extent not
exceeding those projected in the OAL and shall
constitute the actual purchase by the PE

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 WHEN IS ORDERING AGREEMENT
APPLICABLE?

When the quantity and/or exact time of need for

necessary and desirable goods cannot be
accurately pre-determined due to its nature, use, or
characteristic, or
That in case of expendable or non-expendable
goods, carrying it in stock or commit to purchase a
certain quantity within a given period is
inadvisable for the procuring entity

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 SCOPE OF ORDERING AGREEMENT

Procurement of:
Expendable goods
Non-expendable goods
Services for:
a. Hotel accommodation
b. Air travel
c. Repair and maintenance
By all departments, bureaus, offices, and agencies of
the national government, GOCCs, GFIs, SUCs, and
LGUs.

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 GENERAL CONDITIONS

1. Determination of HOPE that adoption of Ordering

Agreement is more advantageous taking into
consideration the ff:
a) Certification of end-user unit that goods in the OA
List are necessary and desirable for the PEs
operations as supported by:
Document establishing need for the acquisition
of goods; and
Market study establishing ABC
b) CBA Result with supporting documents showing
the benefits of using OA
c) Preparation of OA in the most practical, efficient,
and economical manner will encourage competition
among interested bidders

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 GENERAL CONDITIONS

(Cont.):
2. Procurement shall be undertaken through
Competitive Bidding
3. Prices indicated in the OA shall be fixed for the
duration of the agreement
4. OA shall contain the ff:
a) OA List
b) Terms and clauses applying to DOC
c) Methods for issuing and delivering/performing
future orders

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 PROCEDURE FOR USE OF
ORDERING AGREEMENT

Competitive
PPMP APP
Bidding

Delivery Order Ordering

Termination
Contract Agreement

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PROCUREMENT PLANNING IN RELATION TO
ORDERING AGREEMENT

No procurement shall be undertaken unless in

accordance with the approved APP (Sec. 7.2) and
PPMP
The OAL, which shall remain unchanged - neither
to be increased or decreased after advertisement
and during its life span, shall be part of the APP

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 COMPETITIVE BIDDING IN RELATION TO
ORDERING AGREEMENT

Procurement of goods and services under the OAL

shall be undertaken through Competitive Bidding
(single stage, two-envelope procedure)
a) Goods may be packaged on a per item/lot/package
upon determination of PE
b) Technical Specifications/SOW, ABC and estimated
quantity for every line item shall be prepared by the
BAC
c) Requested delivery/performance lead time from
execution of DOC or from any date determined by
the PE
d) IB shall indicate that the procurement is subject to
OA arrangement

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 ENTERING INTO AN
ORDERING AGREEMENT

The winning bidder or its duly authorized

representative shall formally enter into an OA
amounting to PhP1.00 with the PE within 10
calendar days from receipt of NOA
OA shall not state or imply any agreement by the
PE to place future contracts or make orders with
the supplier/service provider

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 ENTERING INTO AN
ORDERING AGREEMENT
(Cont.)
OA shall include the ff:
a) OAL;
b) Fixed contract price per item/service specified in the
OAL;
c) Delivery/service terms and conditions;
d) Terms of payment;
e) Specify that the perfection of the actual procurement
contract shall be reckoned from the execution and
issuance of the DOC; and
f) Statement that upon the execution and issuance of
the DOC, all rules and guidelines governing
implementation of procurement contracts under RA
9184 and its IRR shall be applicable.

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 ENTERING INTO AN
ORDERING AGREEMENT
(Cont.)
OA shall not be modified during its lifetime
OA shall not exceed one (1) year from the date it
was entered into and executed
OA shall not be extended beyond its lifetime
Supplier/service provider shall post a performance
security in the form and amount indicated in RA
9184 and its IRR prior to signing of the agreement
based on the total contract price of the awarded
items under the OA

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 ISSUING/EXECUTING DELIVERY
ORDER CONTRACTS

May be executed for the same line item as many as

needed within the validity of the OA
Unit price shall be the same as originally stated in
the OA
Quantity shall not exceed the maximum quantity
stated in the OA
No limit on the number of DOCs to be executed or
issued
Aggregate of all executed/issued DOCs shall not
exceed the total contract price stated in the OA

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 ISSUING/EXECUTING DELIVERY
ORDER CONTRACTS
(Cont.)
No other costs are authorized unless otherwise
specified in the OA
May be issued for delivery to multiple destinations
or performance at multiple locations
For purposes of participation in other public
bidding activities, the aggregate of the DOCs for a
particular item satisfactorily completed by the
supplier/service provider shall be considered as
one contract with the cumulative amount thereof
as the total contract amount. The date of
completion of contract shall be the date appearing
on the Certificate of Acceptance issued by the PE
for the last delivery
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 IMPLEMENTATION AND TERMINATION
OF ORDERING AGREEMENTS

Imposition of
Failure liquidated
DOC Extension of Delivery/ damages
issued delivery/ performance of
No
by PE performance the supplier/
time service provider Liquidated damages
Successful
reached 10% of the
total amount of the
awarded items
Yes

Total
Expiry of
estimated
Written request for duration
quantity in OA
extension by the specified in OA
Approved exhausted
supplier/service
provider to PE by PE

Termination

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IMPLEMENTATION AND TERMINATION
OF ORDERING AGREEMENTS
Warranty under Sec. 62 of RA 9184 and its IRR shall
be imposed for goods and shall be posted for each
DOC
All other rules governing contract implementation
and termination under RA 9184, its IRR, and relevant
procurement policies shall be applicable
Repeat Order for an item shall only be allowed after
the maximum quantity specified in the OAL has been
exceeded or after the OA has expired, subject to the
conditions provided in Sec. 51 of RA 9184 and its IRR
Repeat Order shall be availed only within 6 months
from the date of last or final DOC for the specific
item, or the expiration date of the OA
For Repeat Order, 25% allowable quantity shall be
based on the aggregate quantity of actual items
ordered and delivered
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 THANK YOU!!

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

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