Вы находитесь на странице: 1из 96

1

PROCUREMENT STANDARD

Public procurement as a rule shall be


conducted through public bidding (Art.IV, Sec.10)

Alternative methods of procurement must only


be resorted to when competitive bidding is not
a feasible option (Art. XVI, Sec.48)

2
Objectives of Competitive Bidding

To secure for the government the lowest possible price


under the most favorable terms and conditions.
To curtail favoritism in the award of government
contracts;
Avoid suspicion of anomalies; and
Place all bidders in equal footing

3
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)

4
STANDARDIZED BIDDING PROCEDURE
FOR GOODS AND INFRA
Pre-Procurement Pre-Bid
Advertisement
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

5
I. PRE-PROCUREMENT CONFERENCE

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

6
PRE-PROCUREMENT
CONFERENCE (Sec. 20)
Objective

Ensure project is in accordance with the project and included in the approved Annual
Procurement Plan (APP) of the PE.
Confirm the description and scope of the contract, the approved budget for the
contract (ABC) and contract duration.

Determine readiness of the procurement


Availability of appropriations and programmed budget for the contract

Completeness of bidding documents in accordance to guidelines

For infra: completion of detailed engineering according to standards

For infra: ROW ownership of property confirmed


PRE-PROCUREMENT CONFERENCE

Review, modify and agree on the criteria for eligibility


screening, evaluation and post-qualification;

Review and adopt procurement schedule and timeframes.

Ensure specifications are minimum requirements and in


accordance to set standards.

Ensure that the estimated budget for the contract (ABC) is


justified and/or supported with market study or historical data.
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.

9
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)

10
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.
11
II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID

Posted continuously for 7 calendar days (cd):

PhilGEPS
website of the PE, if any.
website of IFI, if applicable.
At any conspicuous place in the premises of the
PE.

12
II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID
2M (10M) for
Above 2M (10M)
Goods/ 5M (15M)
Medium for Goods/
for Infra
5M (15M) for Infra
and below
Newspaper of General Nationwide

Circulation
PhilGEPS website
PEs Website, if available
Conspicuous Place
Website prescribed by the foreign
government/foreign or international
funding institution, in case of foreign
funded procurement

13
Sale of Bidding Documents
GPPB Resolution 04-2012 dated 24 February 2012

Maximum Cost of Bidding


Approved Budget for the Contract
Documents in PhP

500,000 and below 500.00

More than 500,000 up to 1 Million 1,000.00

More than 1 Million up to 5 Million 5,000.00

More than 5 Million up to 10 Million 10,000.00

More than 10 Million up to 50 Million 25,000.00

More than 50 Million up to 500 Million 50,000.00

More than 500 Million 75,000.00

14
III. PRE-BID CONFERENCE

Forum where the PEs representatives & the bidders


discuss the different aspects of the project.

The eligibility requirements and the technical and


financial components of the contract to be bid among
other things, including questions and clarifications
raised by the prospective bidders before and during the
Pre-Bid Conference shall be discussed, clarified and
explained during the pre-bid conference. (Sec. 22.3, IRR
of RA 9184)

15
III. PRE-BID CONFERENCE

PERSONS INVOLVED

The BAC with quorum

End User representative

TWG or Consultant, if any

Prospective Bidders representative

Observers from the COA and CSOs and/or NGOs


III. PRE-BID CONFERENCE

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

17
III. PRE-BID CONFERENCE

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
Observers from the COA and CSOs are invited at least 3
five (5) CD before the activity
Presided by BAC Chair or Vice Chair
Covered by Minutes of Meeting

18
III. PRE-BID CONFERENCE

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.

19
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 BACs initiative to
clarify or modify any provision of Bidding Docs. (at least
7 cd before deadline for bids).

Posted in PhilGEPS and PEs 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
20
IV. SUBMISSION AND
RECEIPT OF BIDS
What is a Bid? (Sec. 5)
A signed offer or proposal
to undertake a contract submitted by a bidder
in response to and in consonance with the requirements
of the Bidding Documents.

the term Bid shall be equivalent to and be used


interchangeably with Proposal and Tender.

21
IV. SUBMISSION AND
RECEIPT OF BIDS
Re-scheduling of bid opening (due to justifiable reasons,
i.e lack of quorum, cancellation of office work due to bad
weather)

In case the bids cannot be opened as scheduled due to


justifiable reasons, the BAC shall take custody of the bids
submitted and reschedule the opening of bids on the next
working day or at the soonest possible time through the
issuance of a Notice of Postponement to be posted in the
PhilGEPS website and the website of the PE (Sec. 29, 2016
IRR of RA 9184)
22
IV. SUBMISSION AND
RECEIPT OF BIDS

Presided by BAC Chair or Vice Chair

Observers from the COA and CSOs are invited at least 3 five (5) CD
before the activity

Bidders or duly authorized representative may attend the opening of


bids.

A checklist of requirements shall be used.

A non-discretionary pass/fail criterion shall be used .

BAC Secretariat covers the proceeding.

23
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

24
V. OPENING AND EVALUATION OF
1ST ENVELOPE
CONTENTS:
1. Eligibility requirements
2. Bid Security
3. Technical specifications (Goods) / Project
requirements (Infra)
4. Omnibus sworn statement
Non-inclusion in blacklist Responsibilities of bidders
Authenticity of documents Labor laws and standards
Verification authority Non-payment (directly or
Signatorys authority indirectly) any commission,
amount, fee, or any form of
Disclosure of relations consideration in relation to any
procurement project or activity

25
V. OPENING AND EVALUATION OF
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)

26
V. OPENING AND EVALUATION OF
1ST ENVELOPE

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)

27
ELIGIBILITY REQUIREMENTS

PhilGEPS Certificate of Registration and Membership


Section 8.5.2 - 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) Mayors/Business Permit or its Equivalent Document;
c) Tax Clearance;
d) Philippine Contractors Accreditation Board (PCAB) license and
registration; and
e) Audited Financial Statements.

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.
28
From October 28, 2016
until April 30, 2017,
bidders may still submit
their Class A
Eligibility Documents
required to be uploaded
and maintained current
and updated in the
PhilGEPS

Starting May 1, 2017,


bidders will be
required to submit
PhilGEPS Certification
under Platinum category,
pursuant to Section
8.5.2 of the 2016
Revised IRR of RA9184.

29
ELIGIBILITY REQUIREMENTS

GOODS INFRASTRUCTURE
Class A Documents
1. DTI/SEC/CDA Registration 1. DTI/SEC/CDA Registration
2. Mayors permit or equivalent 2. Mayors permit or equivalent
document for Exclusive Economic document for Exclusive Economic
Zones or Areas Zones or Areas
3. Tax clearance per Executive 3. Tax clearance per Executive
Order 398, series of 2005, as finally Order 398, series of 2005, as finally
reviewed and approved by the reviewed and approved by the
BIR. BIR.
4. Statement of ongoing contracts. 4. Statement of ongoing contracts.
5. Statement of SLCC 5. Statement of SLCC
30
ELIGIBILITY REQUIREMENTS

GOODS INFRASTRUCTURE
Class A Documents
6. Audited financial statement 6. PCAB license and registration.
7. NFCC computation or committed 7. Audited financial statement
Line of Credit*
8. NFCC*
Class B Document
JVA or notarized statement from In case of JV, JVA entered into by
the partners that they will enter the parties.
into joint venture if awarded the
contract.

31
MAYORS PERMIT

Mayors Permit allows an entity to legally perform the


requirements and obligations of the project and the
resultant contract.

Recently expired Mayors/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

32
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 bidders 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.
33
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 bidders 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)

34
ELIGIBILITY REQUIREMENTS 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 bidders
country.
35
ELIGIBILITY REQUIREMENTS FOR
FOREIGN BIDDERS
Shall be authenticated by the appropriate Philippine
foreign service establishment/post or the equivalent
office having jurisdiction over the foreign bidders
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)

36
ELIGIBILITY REQUIREMENTS FOR
FOREIGN BIDDERS
TAX CLEARANCE FOR FOREIGN BIDDERS

A Delinquency Verification Certificate issued to Non-


Resident Foreign Corporations (NRFC)/Non-Resident
Aliens Not Engaged in Trade or Business
(NRANETB) pursuant to BIR RR 3-2005, attesting to
the fact that the taxpayer has no outstanding Final
Assessment Notice and/or delinquent account may be
submitted as a form of Tax Clearance required under
Section 34.2 of the IRR.

NPM 02-2013
37
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)

38
ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES
INFRASTRUCTURE
GOODS
PROJECTS
WITH AN EXISTING JOINT VENTURE: JV bidders shall submit a
submission of a valid joint venture JVA in accordance with
R.A. 4566 and its IRR.
agreement
WITHOUT AN EXISTING JOINT *Submission of a duly
notarized statement is
VENTURE: submission by each of the not applicable.
potential JV 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)
39
ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES

SUBMISSION OF ELIGIBILITY REQUIREMENTS:

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.

Any of the co-venturers shall submit technical and


financial documents.

40
ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES
JV Bidders are required to submit a Joint License issued by
the PCAB in compliance with the eligibility requirement
for a valid PCAB license and registration.

Sec. 38 of RA 4566 prohibits 2 or more contractors from


jointly submitting a bid without first securing a Joint
License to engage or act in the capacity of such a joint
venture.

Failure of the JV Bidder to submit a Joint License may be a


ground for its disqualification despite the submission of
the individual licenses of each joint venture partner.

NPM 17-2013 41
LEGAL ELIGIBILITY CRITERIA

GOODS INFRASTRUCTURE
General rule: 60% Filipino General rule: 75% Filipino
Foreign bidder allowed if: Foreign contractors allowed if stated
Stated in treaty or international or in treaty or international or executive
executive agreement agreement
National of a country offering
reciprocity rights to Filipinos
Goods not available from local
suppliers
To prevent situations that defeat
competition or restrain trade
If joint venture, less than 75% is
allowed if -
Structures to be built require
techniques not possessed by 75%
Filipinos
Not less than 25% Filipino
42
TECHNICAL ELIGIBILITY CRITERIA

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
consumer price index.
43
TECHNICAL ELIGIBILITY CRITERIA

GOODS SINGLE LARGEST CONTRACT

General Rule Exceptions Then require the ff.:


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

44
TECHNICAL ELIGIBILITY CRITERIA
GOODS SINGLE LARGEST CONTRACT (Illustration)
Expendable Goods Non-expendable Goods

ABC = P1,000,000 ABC = P1,000,000

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 P500,000

EXCEPTION: At least 2 similar contracts EXCEPTION: At least 2 similar contracts


aggregate amount at least equivalent to aggregate amount at least equivalent to
required percentage; and Largest of the required percentage; and Largest of the similar
similar contracts amounts to at least 50% of contracts amounts to at least 50% of required
required percentage. percentage.

THUS: 1st contract = P100,000.00 THUS: 1st contract = P300,000.00


2nd contract = P200,000.00 2nd contract = P400,000.00

45
TECHNICAL ELIGIBILITY CRITERIA

INFRASTRUCTURE PROJECTS SINGLE LARGEST


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

46
TECHNICAL ELIGIBILITY CRITERIA

INFRASTRUCTURE PROJECTS SINGLE LARGEST


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 to be bid 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.
47
FINANCIAL ELIGIBILITY CRITERIA

FOR GOODS AND INFRASTRUCTURE PROJECTS:

Audited Financial Statement (showing prospective


bidders total and current assets and liabilities. )
NFCC at least equal to ABC.

48
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 NFCCs K factor is set at 15, regardless of


contract duration

49
CREDIT LINE COMMITMENT

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.
50
NET FINANCIAL CONTRACTING
CAPACITY (NFCC)

For goods and infrastructure projects, the NFCCs K factor


shall be fixed at 15, regardless of contract duration

The values of the domestic bidders current assets and current


liabilities shall be based on the latest Audited Financial
Statements submitted to the BIR .

For purposes of computing the foreign bidders 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.
51
NFCC COMPUTATION

Participating bidder should be required to submit an


NFCC that is at least equal to all the lots to which it
participated in, in order to establish the bidders
financial liquidity and absorptive capacity in carrying
out the contractual obligations required by the lots to
which it participated in.

NPM 76-2013

52
BID SECURITY

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
53
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.

54
BID SECURITY

Amount
Form of Bid Security Bid Security
(% = ABC)
a) Cash or cashiers/managers check

b) Bank guarantee/draft or 2%
Irrevocable LC
c) Surety bond callable upon
5%
demand
d) Combination of the foregoing Proportionate to share of form
with respect to the total
amount of security
d) Bid Securing Declaration No percentage required

55
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)

56
BID SECURING DECLARATION

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)
57
BID VALIDITY PERIOD

Bids and bid securities (including bid securing


declaration) shall be valid for a reasonable period as
determined by the HOPE as indicated in the Bid Docs.
Not to exceed 120 cd
If the period is extended, PE shall request in writing all
those who submitted bids for such extension before the
expiration date.

NOTE: Bidders have a right to refuse to grant such


extension w/o forfeiting their bid security.

58
DISCLOSURE OF RELATIONS

Relatives within the third civil degree of the following


shall be disqualified:

Head of the procuring entity


Members of the BAC, Secretariat and TWG
Head of the end-user unit or project management
office or implementing unit
Project consultants

59
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

60
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

61
Bid Evaluation

RULES ON CONSTRUCTION / INTERPRETATION:

In case of discrepancies between:

(a) bid prices in figures and in words, the latter shall


prevail;

(b) total prices and unit prices, the latter shall prevail;

(c) unit cost in the detailed estimate vs. unit cost in the
bill of quantities, the latter shall prevail.
FINANCIAL PROPOSAL
(Item & Specifications) Bidder 1 Bidder 2 Bidder 3

Agency
Information
System Plan
1. Hardware 13,499,244.32 12,088,044.23 13,440,153.20
Components

2. Software Components 7,758,647 7,075,669.57 7,135,555.01

3. Training 680,000 204,000.00


LOWEST CALCULATED 170,000
BID (LCB)
4. Cabling/Installation/ 1,266,186.38 2,215,000 545,000
Delivery to undergo Post-qualification

Total Bid Price: Php23,204,077.70 Php21,582,713.80 Php21,290,708.21

3rd 2nd 1st


Evaluation and award per item

FINANCIAL PROPOSAL Bidder 2 Bidder 3


Bidder 1
(Item & Specifications)

Refurbishment of
Conference
Room
1. 24-seater 199,244 188,044 190,153
Conference Table

2. 100 sq.m. Carpet 358,647 475,669 435,555

3. 50 pieces upholstered 180,000 204,000 170,000


chairs with arm rest
4. Ceiling mounted 1,266,186.38 No bid No bid
Projector and
Interactive Board
Php1,624,833.38 Php188,044 Php170,000
Possible Contract
Award to 3 bidders Lowest calculated & Lowest calculated & Lowest calculated &
responsive bid for items 2 & 4 responsive bid for item 1 responsive bid for item 3
VII. DETAILED EVALUATION
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)
65
VII. DETAILED EVALUATION
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

66
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

67
DOMESTIC PREFERENCE

SAMPLE COMPUTATION
Next Lowest Calculated
Lowest Calculated Bid
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 increased 3,051,364.00 3,009,492.00

Award to Domestic Bidder/Entity at 2,653,360.00, or


Result Award to Foreign Bidder if Domestic Bidder/Entity refuses

68
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.)

69
VIII. POST-QUALIFICATION

May be conducted up to 12 cd, or up to 45 cd in exceptional


cases.

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 lowest calculated bid. (Sec. 34.8,
2016 IRR of RA 9184)

BAC will notify the Bidder with the Lowest Calculated


Bid that it was determined as such. (Sec. 34.2, IRR of RA
9184)

70
VIII. POST-QUALIFICATION

Within 3 c.d (5 cd) from receipt of Notice, submit the ff:


1. Latest Income and Business Tax Returns;
2. PhilGEPS Certification of Registration; and
2. 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.
71
VIII. POST-QUALIFICATION

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 bidders 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 suppliers 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)
72
VIII. POST-QUALIFICATION

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.
73
VIII. POST-QUALIFICATION

BAC shall recommend award of contract to the LOWEST


CALCULATED AND RESPONSIVE BID (LCRB) at
submitted price or calculated price, whichever is lower.

In case of approval by HOPE, Notice of Award should be


IMMEDIATELY issued by HOPE to the LCRB.

The HOPE has 7 cd 15 cd to decide whether or not to


issue NOA

74
VIII. POST-QUALIFICATION

When required, the approving higher authority for the contract


or his duly authorized representative shall be given a
maximum of twenty (20) cd from receipt thereof to approve
or disapprove it.

In the case of GOCCs, the concerned board or its duly


authorized representative shall be given a maximum of
thirty (30) cd from receipt thereof to approve or disapprove
it.

75
RECOMMENDATION FOR AWARD

The BAC shall notify all other bidders, in writing, of its


recommendation to HOPE of award of contract to LCRB/HRRB
within 3 cd. (Sec. 37.1.1, 2016 IRR of RA 9184)

76
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)

77
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

78
RESERVATION CLAUSE

HOPE reserves the right to:


Reject any and all bids;
Declare a failure of bidding;
Not award the contract.
(Sec. 41, IRR of RA 9184)

GROUNDS:
1. BAC is found to have Prima facie evidence of collusion;
2. 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.

79
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 GFIs 15 cd 30 cd

80
IX. AWARD OF CONTRACT

NOA is subject to the following conditions:

- If joint venture, submission of JVA


- If foreign-funded and stated in treaty, international or
executive agreement, PCAB License
- Posting of Performance Security (within 10 cd)
- Signing of Contract (within 10 cd)
- If required, approvals by higher authority

81
IX. AWARD OF CONTRACT

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)

82
PERFORMANCE SECURITY

Posted by winning bidder upon signing of contract 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

83
PERFORMANCE SECURITY

Amount
Form of Performance Security Performance Security
(% equal to the Contract Price)
a) Cash or cashiers/managers
check
5% (Goods ) & 10% (Infra)
b) Bank guarantee/draft or
Irrevocable LC
c) Surety bond callable upon
30%
demand
d) Combination of the foregoing Proportionate to share of form
with respect to the total amount of
security

84
NOTICE TO PROCEED

The concerned PE shall issue the Notice to Proceed together


with a copy or copies of the approved contract to the
successful bidder within seven (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.

85
Contract Warranties (Sec. 62)

To assure that supplier corrects manufacturing


defects of GOODS for a specific period after
performance of contract.

To assure that the constructor assumes full


responsibility for structural defects and/or failure of
the completed INFRA project within the warranty
period from final acceptance, except those occasioned
by force majeure and those caused by other parties.

86
RETENTION MONEY

For Goods, retention money is reduced from 10% to at


least 1% of contract amount (Sec. 62, 2016 IRR of RA
9184)

For Infrastructure Projects, retention money is retained


at 10% of contract amount

Note: 5th Edition PBD Goods on page 54 GCC Clause 10.1 Payment, 10% retiontion
should read 1% to conform with GCC Clause 17.3 retention fee under Warranty.

87
Contract Warranties (Sec. 62)
Warranty Procurement of Goods (Sec. 62.1)

Type of Goods Warranty Period Allowable Forms of Amount of Warranty


Warranty Security
(% of Total Contract
Price)
Expendable 3 mos.
Retention Money or
Special Bank 1%
Non-expendable 1 yr. Guarantee
Warranty
Warranty - Infrastructure Projects (Sec. 62.2.3.3)

Form of Warranty Security Amt of Warranty Security


(% of Contract Price)
a) Cash or LC issued by a Universal/Commercial Bank 5%
(If issued by a foreign bank, it should be confirmed or
authenticated by a universal or commercial bank
b) Bank guarantee confirmed by Universal/ Commercial 10%
Bank
c) Surety bond callable upon demand issued by GSIS or 30%
a surety/insurance company certified by the
Insurance Comm.

LGUs Bank guarantee/LC from other banks certified by the BSP

Effectivity: 1 yr. from the date of issuance of the Certificate of


Final Acceptance
Contract Warranties (Sec. 62)

For Infra:
a)Permanent Structures: Fifteen (15) years
Building of types 4 and 5, steel and concrete bridges,
flyovers, concrete aircraft movement areas, ports, dams,
diversion tunnels, causeways, wharves, piers, dikes,
filtration and treatment plants, sewerage systems, power
plants, transmission and communication towers, railway
system, and other similar structures

90
Contract Warranties (Sec. 62)

b. Semi-Permanent Structures: Five (5) years


Building types 1, 2 and 3, concrete roads, asphalt
roads, river control, drainage, irrigation and
drainage canals, municipal ports and river landing,
deep wells, rock causeway, pedestrian overpass,
and other similar structures; and

c. Other Structures: Two (2) years


Bailey and wooden bridges, shallow wells, spring
development, and other similar structures.

91
Warranty Period

Defects/Liability Period Warranty Period

1 Year 2 to 15 Years
Project Final
Completion Acceptance

92
LIQUIDATED DAMAGES

Once the cumulative amount of liquidated damages


reaches ten percent (10%) of the amount of the contract,
the PE may rescind or terminate the contract, without
prejudice to other courses of action and remedies available
under the circumstances. (Sec. 68, 2016 IRR of RA 9184)

93
PERIOD OF ACTION ON PROCUREMENT ACTIVITIES (Earliest / Latest)
ACTIVITIES GOODS INFRA (ABC 50M & below) INFRA (ABC above 50M)
ADVERTISEMENT Day1 (7 CD) Day 1 (7 CD) Day 1 (7 CD)
(Optional if ABC >P2M) (Optional if ABC >P5M) (Optional if ABC >P5M)
ISSUANCE & AVAILABILITY
From Day 1 of advertisement until Bid Opening
OF BID DOCS
PRE-BID CONFERENCE Day 8 / Day 40 (Goods); Day 8 / Day 45 & 60 (Infra)
(Optional for ABC below P1M)
(Not earlier than 7 CD from posting; 12 c.d. before Bid submission and opening)
DEADLINE OF SUBMISSION Day 20/ Day 52 Day 20/ Day 57 Day 20/ Day 72
& RECEIPT OF BIDS/ (45 CD fr. last day of adv.) (50 CD fr. last day of adv.) (65 CD fr. last day of adv.)
BID OPENING
BID EVALUATION Day 21/ Day 59 Day 21/ Day 64 Day 21/ Day 79
(7 CD from Bid Opening) (7 CD from Bid Opening) (7 CD from Bid Opening)
POST-QUALIFICATION Day 22-23/ Day 60-104 Day 22-23/ Day 65-109 Day 22-23/ Day 80-124
(PQ Requirements for submission (Max of 45 CD for activity) (Max of 45 CD for activity) (Max of 45 CD for activity)
within 5CD from receipt of notice)

APPROVAL OF RTA/ Day 24/ Day 105-119 Day 24/ Day 110-124 Day 24/ Day 125-139
ISSUANCE OF NOA (Max of 15 CD for activity) (Max of 15 CD for activity) (Max of 15 CD for activity)

CONTRACT PREP.& SIGNING Day 25/ Day 120-129 Day 25/ Day 125-134 Day 25/ Day 140-149
(Max of 10 CD for activity) (Max of 10 CD for activity) (Max of 10 CD for activity)
APPROVAL OF CONTRACT BY 20 -30 CD (if needed) 20-30 CD (if needed) 20-30 CD (if needed)
HIGHER AUTHORITY
ISSUANCE OF NTP Day 26/ Day 130-136 Day 26/ Day 135-141 Day 26/ Day 150-156
(w/in 7CD fr Contract (w/in 7CD fr. Contract approval) (w/in 7CD fr. Contract
approval) approval)
95
THANK YOU!!

Contact us:

Unit 2506 Raffles Corporate Center


F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605

TeleFax: (632)900-6741 to 44

96