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Title page i
Acknowledgments ii
Table of Contents iv
I INTRODUCTION 1
APPENDICES
3 Revised Implementing Rules and Regulations (IRR) of Republic Act No. 9184 which
became effective in September 2, 2009 as approved through Government
Procurement Policy Board (GPPB) Resolution No. 03-2009 dated 22 July 2009
5 Philippine Bidding Documents for the Procurement of Goods, 3rd Edition as approved
through Government Procurement Policy Board (GPPB) Resolution No. 05-2009
dated 30 September 2009
7 Philippine Bidding Documents for the Procurement of Consulting Services, 3rd Edition
as approved through Government Procurement Policy Board (GPPB) Resolution No.
05-2009 dated 30 September 2009
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 1
A. THE DEVELOPMENT OF THE GUIDE
The volume of public expenditure passing through the public procurement system
has increased rapidly in the last few years. Averaging around P121 billion per year from
2003 to 2005, procurement expenditure jumped to P168 billion when the Governments
infrastructure program kicked off in 2006, and increased further to P229 billion by 2007. a
The money spent to finance these procurements came from various sources
including foreign borrowing and as such must have been used with prudence. However,
news of procurement transactions allegedly tainted with fraud had been hugging the
headlines incessantly.
After five (5) years of implementation, much progress has been made in
procurement reforms in terms of rules and regulations but implementation and
enforcement are still weak, and the objectives of the reform have not been fully
achieved. This scenario is consistent with perceptions of a high level of corruption in
procurement and with the SWS survey findings that only 13 percent of the public is
aware of the new procurement law and its intended benefits.b
As to the assessment on the Internal Control and Audit, the finding is that
procurement audit is not yet given enough focus in most of the audit programs because
most auditors have inadequate knowledge of the law, its implementing rules, the
harmonized bidding documents and contract forms, and the procurement manuals; and
there is no procurement audit guide to act as the basis for including procurement audit in
the annual audit program. Most auditors are not trained to carry out risk-based audit
tailored for risk management. Recommendation: A procurement audit guide should be
developed and implemented by COA with particular focus on the audit of the
implementation of the GPRA. A training program on procurement should be developed
and implemented for auditors with the procurement audit guide as a training material,
and both the guide and the training should include a risk-based approach to audit. c
COA Auditors are provided with e-copies of this Guide to enable them to
immediately utilize the audit matrices as working papers in their audits. They may also
modify some aspects of these audit matrices to fit their particular needs. In the process,
each individual auditors copy of the Guide becomes unique to him/her as it reflects
enhancements which he/she built into the Guide with constant use.
Under a risk-based audit approach, audit foci, objectives and audit techniques are
identified through a risk-assessment process which auditors perform following existing
COA regulations. For the purpose of this Guide, audit foci, audit objectives/sub-
objectives, audit techniques, and even suggested audit working papers have been
developed with no particular risk in mind. Auditors may adopt portions of the Guide
which they consider appropriate for their risk-based audit purposes. To aid auditors in
their risk assessment activities, a list of risks associated with procurement have been
developed and included in this Guide as APPENDIX 1.
It is hoped that as Auditors use this Guide they will identify other risks which are
specific to their auditee entities and analyze them to identify the appropriate audit
criteria, develop the appropriate audit objectives, identify the audit techniques, develop
the audit programs and design the audit working papers.
Auditors are encouraged to provide feedback for improvement, through the COA
Directors who have supervision over them, including the inclusion in this Guide of the
risks, audit objectives, audit techniques, audit programs, and audit working papers they
have developed.
From the feedback and the continuing policy study, this Guide is expected to
evolve through updates which will be issued as they are developed.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 3
This Guide in the Audit of Procurement will neither cover the entire gamut of
procurement nor all possible related risks that could be subject to audit.
1. Elements of Procurement
a. Annual Procurement Plan (APP)
b. Bids and Awards Committee (BAC)
c. BAC Observers
d. BAC Secretariat
e. BAC Technical Working Group (TWG)
f. Bidding Documents
2. Procurement Processes:
a. Competitive Bidding (from Bidding Documents to Award of
Contract) for Procurement of Goods
b. Alternative Methods of Procurement for Goods
c. Competitive Bidding (from Bidding Documents to Award of
Contract) for Procurement of Infrastructure Projects
d. Alternative Methods of Procurement for Infrastructure Projects
e. Competitive Bidding (from Bidding Documents to Award of
Contract) for Procurement of Consulting Services
f. Alternative Methods of Procurement for Consulting Services
The extent of audit that can be conducted based on the Guide will be limited to
the specific elements (areas/foci), procurements processes, audit objectives/sub-
objectives and audit activities mentioned in the various components of the Guide.
The audit criteria used in the Guide are those prevailing at the time of the
development of the Guide as follows:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 4
1. Guidelines Clarifying the Procurement Activities which may be Undertaken
Without an Issued Allotment, approved per Government Procurement Policy
Board (GPPB) Circular No. 01-2009 dated January 22, 2009 (attached to this
Guide as APPENDIX 2);
4. Philippine Bidding Documents 3rd Edition (October 2009) approved per GPPB
Resolution No. 05-2009 dated September 30, 2009 (attached to this Guide as
APPENDIX 5);
6. Amendments to the Revised IRR approved per GPPB Resolution No. 11-2009
dated 30 November 2009 (attached to this Guide as APPENDIX 7);
www.gppb.gov.ph
gppb@gppb.gov.ph
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 5
END NOTES
d. Section 5(n), Republic Act No. 9184 otherwise known as the Government
Procurement Reform Act (GPRA) which became effective in January 26, 2003
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 6
II. GENERAL INSTRUCTIONS ON THE USE OF THE GUIDE
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 7
Following are the steps to be considered by the user of this Guide:
Step 1 Determine the audit areas and audit objectives based on Risk Assessment
pursuant to existing regulations and/or on requirements of other regulations
(e.g. COA Circular No. 2009-002 on selective pre-audit).
For each sub-area, the audit objectives shall be identified based on the risks
determined during the Risk Assessment and/or based on the requirements of
existing regulations (e.g. COA Circular No. 2009-002 on selective pre-audit).
Step 2 - Determine the audit scope (e.g. For Financial/Compliance Audit procurement
activities and transactions subject to audit during a calendar year).
Step 3 Determine the audit criteria that are relevant to the identified risks and audit
scope.
The audit criteria identified in the Audit Guide were the IRR of RA No. 9184 and
GPPB issuances prevailing during the time of the development of the Guide. For
his/her specific audit scope, the auditor shall determine versions of RA 9184, its
IRR and GPPB issuances and identify those that are applicable to the
procurements subject of his/her audit.
Otherwise, the audit criteria as quoted in the first column of the audit matrices of
this Guide shall be changed to reflect those that are applicable to the audit scope.
The audit sub-objectives in the first column of the audit matrices shall correspond
to the identified audit objective(s) and the audit criteria identified in Step 3 above.
Step 5 Determine the audit activities that will attain the audit sub-objectives.
The Audit Activities identified in the Guide are mere suggestions and may be
substituted by the auditor with more effective, efficient, and economical activities
which are more workable under his/her specific audit situation.
Step 6 Determine the audit questions that will match the audit sub-objectives.
The audit questions in the 3rd column of the audit matrices of this Guide shall be
changed to correspond to the identified audit sub-objectives.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 8
It is suggested that the auditor be proactive in the sense that he/she should have
already conducted auditorial review on the audit sub-areas that will impact on the
succeeding sub-areas and/or audit sub-objectives where audit findings/conclusions of
non-compliance will result in audit decisions leading to the recommendations of
imposition of sanctions on liable/responsible persons and/or recommendations of
recovery of pecuniary losses on the part of the Procuring Entity.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 9
III. GUIDE IN THE AUDIT OF PROCUREMENT
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 10
On the Basic Element:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 11
BASIC ELEMENT BIDS AND AWARDS COMMITTEE
A. AUDIT OBJECTIVES:
3. To verify if the term of members of the BAC is fixed at one (1) year reckoned from the
date of appointment.
List of documents needed (those applicable to the procurements subject of audit for the audit period):
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 12
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
2. To verify if the Head of the 2. Compare the Office Was the BAC
Procuring Entity (HOPE) was the Order(s) creating the created by the
one that created the BAC BAC(s) as follows: Head of the
Procuring Entity
Implementing Rules and Regulations a. Name and position of (HOPE)?
(IRR) of RA 9184, as amended on the signatory vs. the
September 2, 2009: name and position of
the HOPE per his
11.2.1 The Head of the Procuring Entity appointment/
shall designate at least five but not designating Office or
more than seven members of the BAC Assignment Order;
of unquestionable integrity and
procurement proficiency. b. In NGAs, constitutional
commissions or offices,
5 (t). Head of the Procuring Entity. and branches of
Refers to: (i) the head of the agency or government; and in
body, or his duly authorized official, for GOCCs, GFIs, and
NGAs and the constitutional SUCs, if the HOPE is
commissions or offices, and branches of not the signatory,
government; (ii) the governing board or
its duly authorized official, for GOCCs, Name and position of
GFIs and SUCs; or (iii) the local chief the signatory vs. the
executive for LGUs: Provided, however, name and position of
That in an agency, department, or the duly authorized
office where the procurement is official per Office Order
decentralized the head of its or Board Resolution
decentralized unit shall be considered designating him/her.
as the head of the Procuring Entity,
subject to the limitations and authority
delegated by the head of the agency,
department, or office.
3. To verify if the number of BAC 3. Compare the number Did the number of
members conforms to the of BAC members per BAC members
required number of at least 5 but Office Order(s) with the conform to the
required number. required number of
not more than 7
at least 5 but not
more than 7?
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009: If the number of
11.2.1 The Head of the Procuring Entity BAC members is
shall designate at least five but not equal to the
more than seven members of the BAC minimum of 5, were
of unquestionable integrity and there only three (3)
procurement proficiency. regular members
and two (2)
provisional
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 13
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
members?
If the number of
BAC members is
equal to six (6),
were there:
If the number of
BAC members is
equal to the
maximum of seven
(7), were there:
a. three (3) regular
members and at
most four (4)
provisional
members?
OR
b. four (4) regular
members and three
(3) provisional
members?
OR
c. at most five (5)
regular members
and two (2)
provisional
members?
4. For head offices of National 4. Verify from the Office Was the BAC
Government Agencies/ GOCCs/GFIs, Order constituting the BAC Chairman
to verify if the qualifications of the if the Chairman was designated as such?
regular members of the BAC designated as such.
conform with the requirements: 5. Compare the rank and Was the BAC
a. Chairman - at least a third status of the BAC Chairman:
ranking permanent official of Chairman per Plantilla of
the Procuring Entity with a. at least a 3rd
the procuring entity;
the required at least 3rd ranking official of
b. representative of the Legal or the Procuring
Administrative area, at least a rank and permanent
status. Entity?
5th ranking permanent official
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 14
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
of the procuring entity with b. of permanent
knowledge, experience and/or status?
expertise in procurement;
c. representative of the Finance 6. For Regular Members, Were Regular
area, at least a third ranking compare their rank and Members of the BAC
permanent official of the status per Plantilla of the at least 5th ranking
procuring entity with Procuring Entity with the officials of the
knowledge, experience and/or required at least 5th rank Procuring Entity?
and permanent status.
expertise in procurement
Implementing Rules and Regulations 7. For Regular Members, Were Regular
(IRR) of RA 9184, as amended on compare their status per Members of the BAC
September 2, 2009: Plantilla of the Procuring of permanent
Entity and per his/her status?
11.2.2. The BAC for NGAs, appointment, with the
departments, bureaus, offices, or required permanent
instrumentalities of the GOP, including status.
the judicial and legislative branches,
constitutional commissions, SUCs, 8. For Regular Members, Were Regular
GOCCs, and GFIs shall be composed of verify from their Work Members with
the following: History and training knowledge,
documents if they have experience and/or
Regular Members knowledge, experience expertise in
a. Chairman, who is at least a third and/or expertise in procurement?
ranking permanent official of the procurement;
procuring entity;
b. An officer, who is at least a fifth 9. For Regular Members, Was/Were there
ranking permanent official, with verify from their work Regular members
knowledge, experience and/or assignments if at the time representing the
expertise in procurement who, to the of designation the legal legal or
extent possible, represents the legal area or administrative administrative area
or administrative area of the areas and the financial of the Procuring
procuring entity, provided that in the area were represented. Entity?
case of bureaus, regional offices and
sub-regional/district offices, BAC Was/Were there
members shall be at least a third Regular members
ranking permanent personnel; representing the
c. An officer, who is at least a fifth financial area of the
ranking permanent official, with Procuring Entity?
knowledge, experience and/or
expertise in procurement who, to the
extent possible, represents the
finance area of the procuring entity,
provided that in the case of bureaus,
regional offices and sub-
regional/district offices, BAC
members shall be at least a third
ranking permanent personnel.
5. For bureaus, regional offices 10. Verify from the Office Was the BAC
and sub-regional/district offices Order constituting the BAC Chairman
of NGAs, departments, or if the Chairman was designated as such?
instrumentalities of the designated as such.
Government of the Philippines 11. Compare the rank Was the BAC
(GOP), including the judicial and and status of the BAC Chairman:
legislative branches, Chairman per Plantilla of
a. at least a 3rd
the Procuring Entitys
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 15
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
constitutional commissions, bureau, regional office, ranking official of
SUCs, GOCCs, and GFIs, to verify if sub-regional office, or the Procuring
the qualifications of the regular district office with the Entitys bureau,
BAC members conform to the required at least 3rd rank regional office,
in said Office and sub-regional
requirements:
permanent status. office, or district
a. Chairman, at least a 3rd office?
ranking permanent official of
the procuring entity; b. of permanent
status?
b. Legal or Administrative area
representative, at least a 3rd 12. For Regular Members, Were Regular
ranking permanent official of compare their rank and Members of the BAC
the procuring entity with status per Plantilla of the at least 3rd ranking
knowledge, experience and/or Procuring Entitys bureau, officials of the
expertise in procurement; regional office, sub- Procuring Entitys
c. Finance area representative, at regional office, or district bureau, regional
office with the required at office, sub-regional
least a 3rd ranking permanent
least 3rd rank and office, or district
official of the procuring entity permanent status. office?
with knowledge, experience
and/or expertise in 13. For Regular Members, Were Regular
procurement compare their status per Members of the BAC
Plantilla of the Procuring of permanent
Implementing Rules and Regulations Entitys bureau, regional status?
(IRR) of RA 9184, as amended on office, sub-regional office,
September 2, 2009: or district office and per
his/her appointment, with
11.2.2. The BAC for NGAs, the required permanent
departments, bureaus, offices, or status.
instrumentalities of the GOP, including
the judicial and legislative branches, 14. For Regular Members, Were Regular
constitutional commissions, SUCs, verify from their Work Members with
GOCCs, and GFIs shall be composed of History and training knowledge,
the following: documents if they have experience and/or
knowledge, experience expertise in
Regular Members and/or expertise in procurement?
a. Chairman, who is at least a third procurement.
ranking permanent official of the
procuring entity; 15. For Regular Members, Was/Were there
b. An officer, who is at least a fifth verify from their work Regular members
ranking permanent official, with assignments if at the time representing the
knowledge, experience and/or of designation the legal legal or
expertise in procurement who, to the area or administrative administrative area
extent possible, represents the legal areas and the financial of the Procuring
or administrative area of the area of the Procuring Entitys bureau,
procuring entity, provided that in the Entitys bureau, regional regional office, sub-
case of bureaus, regional offices and office, sub-regional office, regional office, or
sub-regional/district offices, BAC or district office were district office?
members shall be at least a third represented.
ranking permanent personnel; Was/Were there
c. An officer, who is at least a fifth Regular members
ranking permanent official, with representing the
knowledge, experience and/or financial area of the
expertise in procurement who, to the Procuring Entitys
extent possible, represents the bureau, regional
finance area of the procuring entity, office, sub-regional
provided that in the case of bureaus, office, or district
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 16
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
regional offices and sub- office?
regional/district offices, BAC
members shall be at least a third
ranking permanent personnel.
11.2.2.
The Chairman and the Vice-Chairman
shall also be designated by the Head of
the procuring entity. Moreover, the
Vice-Chairman shall be a regular
member of the BAC.
6. For National Government 16. Verify from the Office Was the BAC Vice-
Agencies/GOCCs/GFIs, to verify if Order if from among the Chairman
the Vice-Chairman was Regular Members of the designated as such
designated by the Head of the BAC, the Vice-Chairman from the regular
procuring entity from the was designated as such. members of the
BAC?
regular members of the BAC
12. To verify if the members of 23. From the Office Was the term of all
the BAC have a fixed term of 1 Orders creating the members of the BAC
year reckoned from the date of previous BACs and the within the fixed
Office Order of the new term of one (1) year
appointment, renewable at the
BAC, compare the term of reckoned from the
discretion of the HOPE
all members of the BAC date of
Implementing Rules and Regulations with the fixed term of one appointment?
(IRR) of RA 9184, as amended on (1) year reckoned from
September 2, 2009: the date of appointment,
11.2.6. Unless sooner removed for a renewable at the
cause, the members of the BAC shall discretion of the Head of
have a fixed term of one (1) year the Procuring Entity.
reckoned from the date of appointment,
renewable at the discretion of the Head 24. For a BAC member Was the term of
designated to replace a replacements for
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 19
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
of the Procuring Entity. Upon expiration resigned, retired, reason of
of the terms of the current members, separated, transferred, re- resignation,
they shall continue to exercise their assigned, removed, or retirement,
functions until new BAC members are dead member, compare separation, transfer,
designated. In case of resignation, his/her term with the un- re-assignment,
retirement, separation, transfer, re- expired term. removal, or death
assignment, removal, or death, the within the un-
replacement shall serve only for the expired term only?
unexpired term: Provided, however,
That in case of leave or suspension, the 25. For a BAC member Was the term of
replacement shall serve only for the designated to replace a replacements for
duration of the leave or suspension. For member who went on reason of leave or
justifiable causes, a member shall be leave or was suspended, suspension within
suspended or removed by the Head of compare his/her term with the duration of the
the Procuring Entity. the duration of the leave said leave or
or suspension. suspension only?
13. To verify if the HOPE and/or 26. Compare the name Is the HOPE:
approving authority is not the and position of the Head
Chairman or a member of the BAC of the Procuring Entity a. NOT the
and/or the approving Chairman of the
Implementing Rules and Regulations authority (from BAC?
(IRR) of RA 9184, as amended on Appointment
September 2, 2009: documents/election AND
11.2.5. In no case shall the Head of the documents/relevant Office
Procuring Entity and/or the approving b. NOT a member
Orders/ Assignment
authority be the Chairman or a member of the BAC?
Orders) with the names
of the BAC. and positions of the
Chairman and all Is the approving
members of the BAC. authority:
a. NOT the
Chairman of the
BAC?
AND
b. NOT a member
of the BAC?
Look for
information/documents on
the actions taken by the
auditee in regard to such
non-compliances and
compare these with the
actions required by the
Revised IRR of RA 9184
and other relevant
regulations.
4. To verify what actions have 6. Request for Did the GPPB take
been taken by the GPPB in information from the action on instances
regard to instances of GPPB on the actions of noncompliance
they have taken on involving the
noncompliance
instances of auditee, including
noncompliance non-submission of
Implementing Rules and Regulations involving the auditee, the Procurement
(IRR) of RA 9184, as amended on including non- Monitoring Report?
September 2, 2009: submission of the
63.1. The Government Procurement Procurement
Policy Board (GPPB), as established in Monitoring Report.
Section 63 of the Act, shall have the
following duties and responsibilities:
a.
d. To ensure the proper
implementation by procuring entities
of the Act, this IRR and all other
relevant rules and regulations
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
pertaining to public procurement.
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Commission on Audit
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On the Basic Element:
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BASIC ELEMENT BAC SECRETARIAT
A. AUDIT OBJECTIVES:
1. To verify the existence of the Bids and Awards Committee (BAC) Secretariat
List of documents needed (those applicable to the procurements subject of audit for the audit period):
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Particulars
Audit Criteria
Audit Question Yes No of the
Answer
2. To verify if the BAC 2. Identify the method of Was the BAC
Secretariat was created: creation and the functions of Secretariat created:
a. as a Secretariat to serve the BAC Secretariat from the
Office Order and compare a. as a Secretariat
as the main support unit
with the requirements of to serve as the
of the BAC, regulations. main support
b. by designating an unit of the BAC?
existing organic office
within the procuring b. by designating an
entity, existing organic
c. or by creating a office within the
procurement unit to procuring entity?
serve concurrently as
BAC Secretariat OR
c. by creating a
in accordance with the
procurement unit
guidelines issued by the to serve
DBM concurrently as
BAC Secretariat
Implementing Rules and in accordance
Regulations (IRR) of RA 9184, as with the
amended on September 2, 2009: guidelines issued
by the DBM?
14.1 The HOPE shall create a
Secretariat which will serve as the
main support unit of the BAC. An
existing organic office within the
procuring entity may also be
designated to serve as Secretariat.
However, to strengthen and
promote the professionalization of
the organizations procuring unit,
the HOPE may create procurement
units that may serve concurrently
as BAC Secretariat in accordance
with the guidelines issued by the
DBM
3. To verify if the Head of 3. In the head office of the Was the Head of the
the BAC Secretariat met the Procuring Entity: BAC Secretariat at
following qualifications: least a fifth ranking
a. at least a fifth ranking Compare the rank and official in the head
status of the Head of the office?
permanent employee or,
BAC Secretariat per
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Particulars
Audit Criteria
Audit Question Yes No of the
Answer
if not available, a Plantilla of the Procuring If a 5th ranking
permanent official of the Entity with the required official is not
next lower rank; at least 5th rank (or if not available, was the
available, a next lower Head of the BAC
b. at least a third ranking
rank) and permanent Secretariat at least
permanent employee in status of the next lower
bureaus, regional offices rank official in the
and sub-regional/ district head office?
offices, or if not Was the Head of the
available, a permanent BAC Secretariat a
employee of the next permanent official in
lower rank; the head office?
c. possesses integrity; 4. In bureaus, regional
d. possesses procurement offices and sub-regional/
proficiency district offices of the
Procuring Entity:
Implementing Rules and
Regulations (IRR) of RA 9184, as Compare the rank and Was the Head of the
amended on September 2, 2009: status of the Head of the BAC Secretariat at
14.2 The head of the Secretariat in BAC Secretariat per least a 3rd ranking
central offices shall be at least a Plantilla of the official in bureaus,
fifth ranking permanent organizational unit regional offices and
employee or, if not available, a concerned of the sub-regional/ district
permanent official of the next Procuring Entity with the offices?
lower rank; or shall be at least a required at least 3rd rank
third ranking permanent (or if not available, a next If a 3rd ranking
employee in bureaus, regional lower rank) and official is not
offices and sub-regional/ district permanent status available, was the
offices, or if not available, a Head of the BAC
permanent employee of the Secretariat at least
next lower rank. In addition to of the next lower
integrity, heads of Procuring rank official in the
Entities shall consider bureaus, regional
procurement proficiency as a offices and sub-
factor in designating the head of regional/ district
the Secretariat and Procurement offices?
Unit
Was the Head of the
BAC Secretariat a
permanent official in
the bureaus,
regional offices and
sub-regional/ district
offices?
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 27
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Particulars
Audit Criteria
Audit Question Yes No of the
Answer
6. From the Work History Did the Head of the
and training documents BAC Secretariat
of the Head of the BAC possess
Secretariat verify if procurement
he/she has procurement proficiency?
proficiency.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 28
On the Basic Element:
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 29
BASIC ELEMENT - ANNUAL PROCUREMENT PLAN (APP)
A. AUDIT OBJECTIVES:
1. To verify the existence of an approved Annual Procurement Plan (APP) and supporting
Project Procurement Management Plans (PPMPs)
3. To verify if the APP 3. From the APP, look for Does the APP
contains the following the following information: contain the
information: following
a. name of the information:
a. name of the procurement program/
procurement project; a. name of the
b. project management procurement
program/ project;
office or end-user unit; program/ project?
b. project management c. general description of
office or end-user the procurement;
unit; d. procurement method to b. project
c. general description of be adopted; management office
the procurement; e. time schedule for each or end-user unit?
d. procurement method procurement activity;
to be adopted; f. source of fund;
e. time schedule for g. approved budget for c. general
the contract. description of the
each procurement
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 31
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
activity; procurement?
f. source of fund;
g. approved budget for d. procurement
method to be
the contract.
adopted?
GPPB Circular 1-2009 dated
20 January 2009: e. time schedule
for each
3.2. Annual Procurement procurement
Plan (APP) the requisite activity?
document that the agency
must prepare to reflect the
entire procurement activity f. source of fund?
(i.e., goods, services, civil
works to be procured) that
it plans to undertake within g. approved
the calendar year. This budget for the
document contains the contract?
following information:
3.2.1. Name of the
procurement
program/project;
3.2.2. Project
management office or
end-user unit;
3.2.3. General description
of the procurement;
3.2.4. Procurement
method to be adopted;
3.2.5. Time schedule for
each procurement
activity;
3.2.6. Source of fund; and
3.2.7. Approved Budget
for the Contract.
6. To verify if the APP 6. Compare the items and Does the APP
matches the budget per budgets in the GAA, match the budget
GAA, corporate budget, corporate budget, per GAA, corporate
appropriation ordinance, appropriation ordinance, budget,
as the case may be, with appropriation
as the case may be
the items and amounts in ordinance, as the
the approved APP. case may be?
Implementing Rules and
Regulations (IRR) of RA 9184,
as amended on September 2,
2009:
7.1. All procurement shall be
within the approved budget of
the procuring entity and
should be meticulously and
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 33
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
judiciously planned by the
procuring entity.
7.2. No procurement shall be
undertaken unless it is in
accordance with the approved
APP of the procuring entity.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 34
On the Basic Element:
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 35
BASIC ELEMENT BAC OBSERVERS
A. AUDIT OBJECTIVES:
2. To verify if the BAC implemented the mechanism and established the pool of professional
organizations and non-governmental organizations from which they will select representatives
as Observers in specific procurements
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 38
On the Basic Element:
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 39
BASIC ELEMENT BAC Technical Working Group (TWG)
A. AUDIT OBJECTIVES:
1. To verify if the BAC established a mechanism for constituting the pool of technical,
financial, and/or legal experts from which they will identify/select members of the Technical
Working Group for specific procurements
2. To verify if the BAC implemented the mechanism and established the pool of
technical, financial, and/or legal experts from which they will identify/select members of
the Technical Working Group for specific procurements
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 40
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of the
Answer
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 41
On the Basic Element:
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 42
BASIC ELEMENT CUSTOMIZED BIDDING DOCUMENTS FOR GOODS
A. AUDIT OBJECTIVES:
1. To verify if the procuring entitys customized bidding documents for goods are complete
2. To verify if the forms and contents of the procuring entitys customized bidding documents
for goods are as prescribed by the GPPB
Documents needed:
Customized Bidding Documents for Goods
NOTE: If the Procuring Entity did not adopt a set of customized bidding documents for goods, the
succeeding Audit Sub-Objectives and related Activities need not be performed and the related
Audit Questions for this element need not be answered.
2.To verify if the set of 2. Compare the set of Are the items in the
customized bidding customized bidding customized bidding
documents for goods are documents for goods with documents for goods
complete, i.e., include the the Philippine Bidding complete when
Documents (PBDs) for compared with the
following: Procurement of Goods, items in the Philippine
a. Approved Budget for the 3rd edition, October 2009 Bidding Documents
Contract, approved by the GPPB (PBDs) for
b. Invitation to Bid per GPPB Resolution No. Procurement of
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 43
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
c. Eligibility Requirements 05-2009 dated 30 Goods, 3rd edition,
d. Instructions to Bidders, September 2009 October 2009
including Scope of Bid, published by the
documents comprising GPPB?
the bid, criteria for
eligibility, bid evaluation
methodology/criteria in
accordance with the Act,
and post-qualification, as
well as the date, time and
place of the pre-bid
conference (where
applicable), submission of
bids and opening of bids
e. Technical Drawings and
Specifications
f. Form of Bid, Price Form,
and list of goods
g. Delivery Schedule
h. Form, amount, and
validity period of bid
security
i. Form, amount, and
validity of performance
security and warranty
j. Form of Contract and
General and Special
Conditions of Contract
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 44
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
of goods and services
f. Delivery Schedule
g. Form, amount, and validity
period of bid security
h. Form, amount, and validity of
performance security and
warranty
i. Form of Contract and General
and Special Conditions of
Contract.
3. To verify if the form and 3. Compare the individual Did the form of the
contents of the customized documents of the Invitation to Bid in the
bidding documents for procuring entitys customized bidding
customized bidding documents for goods
goods conform with those
documents for goods with conform with the
in the Philippine Bidding
the corresponding standard form
Documents (PBDs) for documents of the prescribed by the
Procurement of Goods, 3rd Philippine Bidding GPPB?
edition, October 2009 Documents (PBDs) for
approved by the GPPB per Procurement of Goods, Did the contents of
GPPB Resolution No. 05- 3rd Edition, October 2009 the form of the
2009 dated 30 September approved by the GPPB Invitation to Bid in
2009 & with Section 21.1 of per GPPB Resolution No. the customized
05-2009 dated 30
the Revised IRR of RA No. bidding documents for
September 2009 goods conform with
9184
the contents of the
Philippine Bidding Documents Invitation to Bid
(PBDs) for Procurement of prescribed by Section
Goods, 3rd edition, October 2009 21.1 of the IRR of RA
approved by the GPPB per GPPB 9184 and the PBDs?
Resolution No. 05-2009 dated 30
September 2009 Did the form of the
Instructions to Bidders
Implementing Rules and in the customized
Regulations (IRR) of RA 9184, as bidding documents for
amended on September 3, 2009: goods conform with
21.1. The Invitation to Bid shall the standard form
provide prospective bidders the prescribed by the
following information, among PBDs?
others:
a. For the procurement of goods,
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 45
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
the name of the contract to be Did the contents of
bid and a brief description of the Instructions to
the goods to be procured; Bidders in the
b. A general statement on the customized bidding
criteria to be used by the documents for goods
procuring entity for the conform with the
eligibility check, the contents of the
examination and evaluation of Instructions to Bidders
bids, post-qualification, and prescribed by the
award; PBDs?
c. The date, time and place of
the deadline for the Did the form for the
submission and receipt of the Bid Data Sheet in the
eligibility requirements, the customized bidding
pre-bid conference, if any, the documents for goods
submission and receipt of bids, conform with the
and the opening of bids; standard form
d. ABC to be bid; prescribed by the
e. The source of funding; PBDs?
f. The period of availability of the
Bidding Documents, the place Did the contents of
where the Bidding Documents the Bid Data Sheet in
may be secure, the website the customized
where the Bidding Documents bidding documents for
may be downloaded, and, goods conform with
where applicable, the price of the contents of the Bid
the Bidding Documents; Data Sheet prescribed
g. The contract duration or by the PBDs?
delivery schedule; Did the form of the
h. The name, address, telephone General Conditions of
number, facsimile number, e- Contract in the
mail and website addresses of customized bidding
the concerned procuring documents for goods
entity, as well as its conform with the
designated contact person; standard form
and prescribed by the
i. Such other necessary PBDs?
information deemed relevant
by the procuring entity. Did the contents of
the form of General
Conditions of Contract
in the customized
bidding documents for
goods conform with
the contents of the
General Conditions of
Contract form
prescribed by the
PBDs?
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 46
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Did the form for the
Special Conditions of
Contract in the
customized bidding
documents for goods
conform with the
standard form
prescribed by the
PBDs?
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 47
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Did the contents of
the form for Technical
Specifications in the
customized bidding
documents for goods
conform with the
contents of the
Technical
Specifications
prescribed by the
PBDs?
2. To verify the causes of Analyze the instances of Appropriate Audit Working Papers
instances of non- non-compliances to
compliance and develop establish the cause(s) and
develop appropriate audit
appropriate audit
recommendations.
recommendations
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 50
On the Basic Element:
CUSTOMIZED BIDDING
DOCUMENTS FOR
INFRASTRUCTURE PROJECTS
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 51
BASIC ELEMENT CUSTOMIZED BIDDING DOCUMENTS
FOR INFRASTRUCTURE PROJECTS
A. AUDIT OBJECTIVES:
2. To verify if the forms and contents of the Procuring Entitys customized bidding
documents for infrastructure projects are as prescribed by the GPPB
Documents needed:
Customized Bidding Documents for Infrastructure Projects
NOTE: If the Procuring Entity did not adopt a set of customized bidding documents for infrastructure
projects, the succeeding Audit Sub-Objectives and related Activities need not be performed and
the related Audit Questions for this element need not be answered.
2.To verify if the set of 2. Compare the set of Were the items in the
customized bidding customized bidding customized bidding
documents for documents with the documents complete
infrastructure projects are Philippine Bidding compared with the
Documents (PBDs) for items in the Philippine
complete, i.e., include the Procurement of Bidding Documents
following:
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 52
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
a. Approved Budget for the Infrastructure Projects, (PBDs) for
Contract, 3rd edition, October 2009 Procurement of
b. Invitation to Bid published by the GPPB Infrastructure
c. Eligibility Requirements Projects, 3rd edition,
October 2009
d. Instructions to Bidders,
published by the
including Scope of Bid, GPPB?
documents comprising
the bid, criteria for
eligibility, bid evaluation
methodology/criteria in
accordance with the Act,
and post-qualification, as
well as the date, time and
place of the pre-bid
conference (where
applicable), submission of
bids and opening of bids
e. Technical Drawings and
Specifications
f. Form of Bid, Price Form,
and list of goods
g. Delivery Schedule
h. Form, amount, and
validity period of bid
security
i. Form, amount, and
validity of performance
security and warranty
j. Form of Contract and
General and Special
Conditions of Contract
3. To verify if the form and 3. Compare the individual Did the form of the
contents of the customized documents of the Invitation to Bid in
bidding documents for procuring entitys the customized
infrastructure projects customized bidding bidding documents for
documents for infrastructure projects
conform with those in the infrastructure projects conform with the
Philippine Bidding with the corresponding standard form
Documents (PBDs) for documents of the prescribed by the
Procurement of Goods, 3rd Philippine Bidding PBDs?
edition, October 2009 Documents (PBDs) for
approved by the GPPB per Procurement of Did the contents of
GPPB Resolution No. 05- Infrastructure Projects, the Invitation to Bid
2009 dated 30 September 3rd edition, October 2009 in the customized
published by the GPPB bidding documents for
2009 & with Section 21.1 of
infrastructure projects
the Revised IRR of RA No.
conform with the
9184 contents of the
Invitation to Bid
Philippine Bidding Documents prescribed by Section
(PBDs) for Procurement of 21.1 of the IRR of RA
Infrastructure Projects, 3rd 9184 and the PBDs?
edition, October 2009 approved
by the GPPB per GPPB Resolution
Did the form of the
No. 05-2009 dated 30 September
Instructions to Bidders
2009 in the customized
bidding documents for
Implementing Rules and infrastructure projects
Regulations (IRR) of RA 9184, as conform with the
amended on September 2, 2009: standard form
21.1. The Invitation to Bid prescribed by the
shall provide prospective GPPB?
bidders the following
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 54
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
information, among others: Did the contents of
a. For the procurement of the form for the
Infrastructure projects, the Instructions to Bidders
name and location of the in the customized
contract to be bid, the project bidding documents for
background and other relevant infrastructure projects
information regarding the conform with the
proposed contract works, contents of the
including a brief description of Instructions to Bidders
the type, size, major items, prescribed by the
and other important or PBDs?
relevant features of the works;
b. A general statement on the Did the form for the
criteria to be used by the Bid Data Sheet in the
procuring entity for the customized bidding
eligibility check, the documents for
examination and evaluation of infrastructure projects
bids, post-qualification, and conform with the
award; standard form
c. The date, time and place of prescribed by the
the deadline for the PBDs?
submission and receipt of the
eligibility requirements, the Did the contents of
pre-bid conference, if any, the the form for the Bid
submission and receipt of bids, Data Sheet in the
and the opening of bids; customized bidding
d. ABC to be bid; documents for
e. The source of funding; infrastructure projects
f. The period of availability of the conform with the
Bidding Documents, the place contents of the Bid
where the Bidding Documents Data Sheet prescribed
may be secure, the website by the PBDs?
where the Bidding Documents
may be downloaded, and, Did the form for the
where applicable, the price of General Conditions of
the Bidding Documents; Contract in the
g. The contract duration or customized bidding
delivery schedule; documents for
h. The name, address, telephone infrastructure projects
number, facsimile number, e- conform with the
mail and website addresses of standard form
the concerned procuring prescribed by the
entity, as well as its PBDs?
designated contact person;
and Did the contents of
i. Such other necessary the form for the
information deemed relevant General Conditions of
by the procuring entity. Contract in the
customized bidding
documents for
infrastructure projects
conform with the
contents of the
General Conditions of
Contract prescribed by
the PBDs?
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 55
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Did the form for the
Special Conditions of
Contract in the
customized bidding
documents for
infrastructure projects
conform with the
standard form
prescribed by the
PBDs?
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 56
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Did the contents of
the Bid Form in the
customized bidding
documents for
infrastructure projects
conform with the
contents of the Bid
Form prescribed by
the PBDs?
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 57
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Notes on Specifications Did the customized
in Section VI. Specifications bidding documents for
of the Philippine Bidding infrastructure projects
Documents (PBDs) for of the procuring entity
contain a Section on
Procurement of Specifications with
Infrastructure Projects, 3rd Notes similar to those
edition, October 2009 in the PBDs?
published by the GPPB,
Did the customized
which are meant to guide bidding documents for
the procuring entity in infrastructure projects
developing specifications of the procuring entity
for individual procurements. contain a Section on
Drawings with Notes
The statements: Insert similar to those in the
here a list of Drawings. PBDs?
The actual Drawings,
including site plans, should
be attached to this section
or annexed in a separate
folder. Are in Section VII.
Drawings of the Philippine
Bidding Documents (PBDs)
for Procurement of
Infrastructure Projects, 3rd
edition, October 2009
published by the GPPB
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 58
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
3. To communicate the Prepare the appropriate
results of the audit with the audit/ validation Audit Observation Memorandum (AOM), if applicable
auditees Management document reflecting the
results of the
audit/validation and
COA Circular No. 2009-006 dated
transmit to Management
September 15, 2009 re-
Prescribing the Use of the Rules
and Regulations on Settlement of
Accounts
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Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 59
On the Basic Element:
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 60
BASIC ELEMENT CUSTOMIZED BIDDING DOCUMENTS FOR
CONSULTING SERVICES
A. AUDIT OBJECTIVES:
1. To verify if the Procuring Entitys customized bidding documents for consulting services
are complete
2. To verify if the forms and contents of the Procuring Entitys customized bidding
documents for consulting services are as prescribed by the GPPB
Documents needed:
Customized Bidding Documents for Consulting Services
NOTE: If the Procuring Entity did not adopt a set of customized bidding documents for infrastructure
projects, the succeeding Audit Sub-Objectives and related Activities need not be performed and the
related Audit Questions for this element need not be answered.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 61
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
2.To verify if the set of 2. Compare the set of Were the items in the
customized bidding customized bidding customized bidding
documents for consulting documents with the documents for consulting
services are complete, Philippine Bidding services complete when
Documents (PBDs) for compared with the items
i.e., include the
Procurement of in the Philippine Bidding
following: Consulting Services, 3rd Documents (PBDs) for
a. Approved Budget for edition, October 2009 Procurement of Consulting
the Contract, published by the GPPB Services, 3rd edition,
b. Request for Expression October 2009 published by
of Interest, the GPPB
c. Eligibility
Requirements
d. Instructions to
Bidders, including
Scope of Bid,
documents comprising
the bid, criteria for
eligibility, bid
evaluation
methodology/criteria in
accordance with the
Act, and post-
qualification, as well as
the date, time and
place of the pre-bid
conference (where
applicable), submission
of bids and opening of
bids
e. Technical Drawings
and Specifications
f. Form of Bid, Price
Form, and list of goods
g. Delivery Schedule
h. Form, amount, and
validity period of bid
security
i. Form, amount, and
validity of performance
security and warranty
j. Form of Contract and
General and Special
Conditions of Contract
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 62
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
standard forms and manuals
prescribed by the GPPB. The
bidding documents shall include
the following:
a. Approved Budget for the
Contract,
b. Request for Expression of
Interest,
c. Eligibility Requirements
d Instructions to Bidders,
including Scope of Bid,
documents comprising the
bid, criteria for eligibility, bid
evaluation
methodology/criteria in
accordance with the Act, and
post-qualification, as well as
the date, time and place of
the pre-bid conference
(where applicable),
submission of bids and
opening of bids
e. Form of Bid, Price Form, and
list of goods and services
f. Delivery Schedule
g. Form, amount, and validity
period of bid security
h. Form, amount, and validity of
performance security and
warranty
i. Form of Contract and General
and Special Conditions of
Contract.
Philippine Bidding
Documents (PBDs) for
Procurement of Consulting
Services, 3rd edition,
October 2009 published by
the GPPB published by the
GPPB
3. To verify if the form 3. Compare the individual Did the form for the
and contents of the documents of the Request for Expression of
customized bidding procuring entitys Interest in the customized
documents for consulting customized bidding bidding documents for
documents for consulting consulting services
services conform with
services with the conform with the standard
those in the Philippine corresponding documents form prescribed by the
Bidding Documents of the Philippine Bidding PBDs?
(PBDs) for Procurement Documents (PBDs) for
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 63
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
of Consulting Services, Procurement of Did the contents of the
3rd edition, October 2009 Consulting Services, 3rd form for the Request for
published by the GPPB edition, October 2009 Expression of Interest in
published by the GPPB the customized bidding
documents for consulting
Philippine Bidding Documents
services conform with the
(PBDs) for Procurement of
contents of the form for
Consulting Services, 3rd
the Request for Expression
edition, October 2009
published by the GPPB
of Interest prescribed by
the PBDs?
Did the form of the
Eligibility Documents in the
customized bidding
documents for consulting
services conform with the
standard form prescribed
by the PBDs?
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 64
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Did the contents of the
form for Notice of Eligibility
and Short Listing in the
customized bidding
documents for consulting
services conform with the
contents of the Notice of
Eligibility and Short Listing
prescribed by the PBDs?
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Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 65
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Did the contents of the
form for the General
Conditions of Contract in
the customized bidding
documents for consulting
services conform with the
contents of the form for
the General Conditions of
Contract prescribed by the
PBDs?
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Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 66
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Did the Technical Proposal
Submission Form in the
customized bidding
documents for consulting
services conform with the
standard form prescribed
by the PBDs?
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 67
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Did the contents of form
for the Comments and
Suggestions of Consultant
on the Terms of Reference
and on Data, Services, and
Facilities to be Provided by
the Procuring in the
customized bidding
documents for consulting
services conform with the
contents of the Comments
and Suggestions of
Consultant on the Terms
of Reference and on Data,
Services, and Facilities to
be Provided by the
Procuring form
prescribed by the PBDs?
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Commission on Audit
Republic of the Philippines Page 68
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Did the contents of the
Format of Curriculum Vitae
(CV) for Proposed
Professional Staff in the
customized bidding
documents for consulting
services conform with the
contents of the Format of
Curriculum Vitae (CV) for
Proposed Professional Staff
prescribed by the PBDs?
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 69
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
services conform with the
standard form prescribed
by the PBDs?
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 70
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Did the form for the
Breakdown of
Remuneration per Activity
in the customized bidding
documents for consulting
services conform with the
standard form prescribed
by the PBDs?
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 71
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Did the contents of the
form for the Miscellaneous
Expenses in the
customized bidding
documents for consulting
services conform with the
contents of the form for
the Miscellaneous
Expenses form prescribed
by the PBDs?
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 72
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Did the contents of the
form for the Appendices in
the customized bidding
documents for consulting
services conform with the
contents of the form for
the Appendices prescribed
by the PBDs?
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 73
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT
1. To verify the effects of Analyze the instances of Appropriate Audit Working Papers
instances of non- non-compliances to
compliance on the: establish the effects and
develop appropriate audit
recommendations.
a. validity of the
procurement activities
and outputs including
the validity of the
resulting contract;
b. validity of any
payment to be made
on the basis of the
contract;
c. etc.
and develop appropriate
audit recommendations
2. To verify the causes of Analyze the instances of Appropriate Audit Working Papers
instances of non- non-compliances to
compliance and develop establish the cause(s) and
develop appropriate audit
appropriate audit
recommendations.
recommendations
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 74
On the Procurement Procedures:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 75
Procurement Procedures:
COMPETITIVE / PUBLIC BIDDING FOR THE
PROCUREMENT OF GOODS
I. PREPARATORY ACTIVITY:
BIDDING DOCUMENTS
Bidding documents are documents issued by the Procuring Entity to provide prospective
bidders all the necessary information that they need to prepare their bids.
A. AUDIT OBJECTIVE:
To verify if the Bidding Documents followed the standard forms and manuals prescribed
by the Government Procurement Policy Board (GPPB)
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
evaluation Procurement of Goods bid conference?
methodology/criteria in issued by the GPPB.
accordance with the - time of the pre-
Act, and post- bid conference?
qualification, as well as - Place of the pre-
the date, time and bid conference?
place of the pre-bid
conference (where - Deadline for
applicable), submission submission of
of bids and opening of bids?
bids;
e. Scope of work, where - Place of
submission of
applicable;
bids?
f. Plans/Drawings and
Technical - Date of opening of
Specifications; bids?
g. Form of Bid, Price Form,
and List of Goods; - Time of opening
h. Delivery Time or of bids?
Completion Schedule;
i. Form, Amount, and - Place of opening
of bids?
Validity Period of Bid
Security;
e. Scope of work,
j. Form, Amount, and where applicable?
Validity of Performance
Security and Warranty; f. Plans/Drawings and
and Technical
k. Form of Contract and Specifications?
General and Special
Conditions of Contract. f.1. Was there no
reference to brand
names?
Implementing Rules and
Regulations (IRR) of RA 9184, as
g. Form of Bid, Price
amended on September 2, 2009:
Form, and List of
Goods?
17.1. The Bidding Documents
shall be prepared by the
h. Delivery Time or
procuring entity following the
Completion
standard forms and manuals
Schedule?
prescribed by the GPPB.
a. Approved Budget for the
i. Form, Amount, and
Contract;
Validity Period of
b. Invitation to Bid;
Bid Security?
c. Eligibility Requirements;
d. Instruction to Bidders,
j. Form, Amount, and
including scope of bid,
Validity of
documents comprising the
Performance
bid, criteria for eligibility, bid
Security and
evaluation
Warranty?
methodology/criteria in
accordance with the Act, and
k. Form of Contract
post-qualification, as well as
and General and
the date, time and place of
Special Conditions
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 77
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
the pre-bid conference of Contract?
(where applicable),
submission of bids and Were the Bidding
opening of bids; Documents in the
e. Scope of work, where required form:
applicable;
f. Plans/Drawings and a. Invitation to Bid?
Technical Specifications;
g. Form of Bid, Price Form, and b. Instructions to
List of Goods; Bidders?
h. Delivery Time or Completion
Schedule; c. Bid Data Sheet?
i. Form, Amount, and Validity
Period of Bid Security; d. General Condition
j. Form, Amount, and Validity of of the Contract?
Performance Security and
Warranty; and e. Special Condition of
k. Form of Contract and General Contract?
and Special Conditions of
Contract. f. Schedule of
Requirements?
Section 18. Reference to
Brand Names g. Technical
Specifications for the procurement Specifications?
of goods shall be based on
relevant characteristics and/or h. Bidding Forms?
performance requirements.
Reference to brand names shall
not be allowed.
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Commission on Audit
Republic of the Philippines Page 78
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
3. To communicate the Prepare the appropriate audit/
results of the audit with validation document reflecting Audit Observation Memorandum (AOM), if
the auditees Management the results of the applicable
audit/validation and transmit
to Management
COA Circular No. 2009-006
dated September 15, 2009 re-
Prescribing the Use of the Rules
and Regulations on Settlement
of Accounts
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Commission on Audit
Republic of the Philippines Page 79
II. PREPARATORY ACTIVITY:
PRE-PROCUREMENT CONFERENCE
(For procurement of goods costing more than P2 million)
The pre-procurement conference is the forum where all officials involved in the procurement
meet and discuss all aspects of a specific procurement activity, which includes the technical
specifications, the Approved Budget for the Contract (ABC), the applicability and appropriateness
of the recommended method of procurement and the related milestones, the bidding documents,
and availability of the pertinent budget release for the project.
A. AUDIT OBJECTIVES:
1. To verify if the Pre-Procurement Conference was conducted within the required time
3. To verify if during the Conference the participants, led by the Bids and Awards
Committee (BAC), performed the required tasks and attained the objectives of the
Conference
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Commission on Audit
Republic of the Philippines Page 80
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
the Secretariat, the unit or (Office Orders, contracts, include the:
officials, including consultants Organizational/Functional
hired by the procuring entity, Charts, etc) which it used as a. BAC?
bases for identifying and
who prepared the Bidding
notifying the participants to b. Secretariat?
Documents and the draft
the Pre-Procurement
Invitation to Bid Conference, including duly c. unit or
certified copies of the officials who
Implementing Rules and Regulations notices issued with evidence prepared the
(IRR) of RA 9184, as amended on of receipt by the Bidding
September 2, 2009: participants. Documents
20.1. The pre-procurement and the draft
conference shall be attended by the 3. From the Minutes of Pre- Invitation to
BAC, the Secretariat, the unit or Procurement Conference Bid?
officials, including consultants hired look for the names of the
by the procuring entity, who members of the BAC, the d. consultants
prepared the Bidding Documents members of the Secretariat, hired by the
and the draft Invitation to Bid, for the officials and/or procuring
each procurement. consultants who prepared entity, who
the Bidding Documents and prepared the
the draft Invitation to Bid. Bidding
Documents
and the draft
Invitation to
Bid?
3. To verify if the BAC observed 4. From the Office Order Was there a
quorum creating the BAC, determine quorum of the
the number of BAC BAC?
Implementing Rules and Regulations members and identify the
(IRR) of RA 9184, as amended on Chairman or Vice-Chairman.
September 2, 2009:
12.3 Quorum 5. From the Minutes of Pre-
A majority of the total BAC Procurement Conference,
composition as designated by the Head check for the presence of
of the Procuring Entity shall constitute the Chairman or Vice-
a quorum for the transaction of Chairman and if majority of
business, provided that the presence the BAC members or
of the Chairman or Vice-Chairman shall representatives/alternates
be required. attended the conference.
4. To verify if during the Pre- 6. From the Minutes of Pre- Did the
Procurement Conference the Procurement Conference participants led
participants, led by the BAC, look for information on the by the BAC
presentation of the scope of discuss and
performed the following tasks
the contract, the ABC, and confirm the:
and attained the related contract duration, the
objectives: deliberation thereon, and a. Description of
a. Discussed relevant the conclusions reached as a the scope of
information and confirmed the result of the deliberation; the contract?
description of the scope of the and analyze if they led to
contract, the ABC, and the confirmation of the b. ABC?
contract duration; description of the scope of
b. Discussed relevant the contract, the ABC, and c. Contract
the contract duration. duration?
information and confirmed
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 81
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
that the procurement is in Did the
accordance with the project 7. From the Minutes of Pre- participants led
procurement management Procurement Conference by the BAC
look for information on the discuss and
plan (PPMP) and annual
presentation of the review of confirm that the:
procurement plan (APP);
the PPMP and APP,
c. Discussed relevant availability of appropriations a. procurement
information and confirmed the and programmed budget for is in
availability of appropriations the contract, the accordance
and programmed budget for deliberation thereon, and with the PPMP
contract; the conclusions reached as a and APP?
d. Discussed relevant result of the deliberation;
information and confirmed the and analyze if they led to b. appropriations
the confirmation of the and
completeness of the Bidding
procurement is in programmed
Documents and their accordance with the PPMP budget for the
adherence to relevant general and APP, and availability of contract are
procurement guidelines; appropriations and available?
e. Reviewed, modified and programmed budget for the
agreed on the criteria for contract. Did the
eligibility screening, participants led
evaluation, and post- by the BAC
qualification; 8. From the Minutes of Pre- discuss and
f. Reviewed and adopted the Procurement Conference confirm the
look for information on the following:
procurement schedule,
presentation of the Bidding
including deadlines and Documents, the deliberation a. completeness
timeframes, for the different thereon, and the conclusions of
activities; and reached as a result of the the Bidding
g. Reiterated and deliberation; and analyze if Documents?
emphasized the importance of they led to the confirmation
confidentiality and the of the completeness of the b. adherence to
applicable sanctions and Bidding Documents and their the PBDs/
adherence to the Philippine
penalties, as well as agreed on customized
Bidding Documents (PBDs)/ Bidding
measures to ensure
customized Bidding Documents?
compliance with the foregoing. Documents.
Implementing Rules and Regulations Did the
(IRR) of RA 9184, as amended on participants led
9. From the Minutes of Pre-
September 2, 2009: by the BAC
Procurement Conference
look for information on the discuss and
20.1. During the conference, the confirm the
presentation of the criteria
participants, led by the BAC, shall: criteria for:
for eligibility screening, bid
a) Confirm the description and
evaluation, and post-
scope of the contract, the ABC, a. Eligibility
qualification, the deliberation
and contract duration; screening?
thereon, and the conclusions
b) Ensure that the procurement is
reached as a result of the
in accordance with the project b. Bid
deliberation; and analyze if
and annual procurement plans; evaluation?
they led to the confirmation
c) Determine the readiness of the
of the criteria for eligibility
procurement at hand, including, c. Post-
screening, bid evaluation,
among other aspects, the qualification?
and post-qualification.
following:
o availability of appropriations
and programmed budget Did the
10. From the Minutes of Pre- participants led
for contract;
o completeness of the
Procurement Conference by the BAC
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Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 82
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
Bidding Documents and look for information on the discuss and
their adherence to relevant presentation of the confirm the:
general procurement procurement schedule,
guidelines; including deadlines and a. adoption of
d) Review, modify and agree on timeframes for the different the
the criteria for eligibility activities, the no-contact procurement
screening, evaluation, and post- rule, the deliberation schedule
qualification; thereon, and the conclusions including
e) Review and adopt the reached as a result of the deadlines and
procurement schedule, including deliberation; and analyze if timeframes
deadlines and timeframes, for they led to the confirmation for the
the different activities; and of the adoption of the different
f) Reiterate and emphasize the procurement schedule activities?
importance of confidentiality including deadlines and
and the applicable sanctions timeframes for the different b. agreement on
and penalties, as well as agree activities and agreement on the no-
on measures to ensure the no-contact rule. contact rule?
compliance with the foregoing.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 83
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
procuring entities, can proceed
with the procurement activities
prior to issuance of the notice of
award.
4.5. For Multi-Year Projects (MYPs),
for which the initial funding
sourced from either the
existing/current years budget or
the NEP is not sufficient to
cover the total cost of the
project, it is required that a Multi-
Year Obligational Authority
(MYOA) must already have been
issued in accord with DBM
Circular Letter 2004-012 prior to
commencement of any
procurement activity.
Thus, the MYOA shall be a
pre-requisite for procurement of
a multi-year contract. All
procurement activities should be
within the total project cost and
categories reflected in the MYOA
issued by DBM for the said MYP.
4.6. As prescribed under Section 47,
Chapter 8, Subtitle B, Title I,
Book V of the Administrative
Code of 1987, no contract
involving the expenditure of
public funds shall be entered into
unless the proper accounting
official of the procuring entity
shall have certified as to the
availability of funds and the
allotment to which the
expenditure or obligation may be
properly charged.
Definition:
3.1. Allotment - document issued
by the Department of Budget
and Management (DBM) which
authorizes an agency to incur
obligations for a specified
amount as contained in a
legislated appropriation. The
allotment issued may either be
trough the Agency Budget
Matrix (ABM) which covers the
comprehensive release of
specifically appropriated items
in the agencys budget or
through the Special Allotment
Release Order (SARO).
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Commission on Audit
Republic of the Philippines Page 84
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
that the agency must prepare
to reflect the entire
procurement activity (i.e.,
goods, services, civil works to
be procured) that it plans to
undertake within the calendar
year. This document contains
the following information:
3.2.1. Name of the procurement
program/project;
3.2.2. Project management office
or end-user unit;
3.2.3. General description of the
procurement;
3.2.4. Procurement method to be
adopted;
3.2.5. Time schedule for each
procurement activity;
3.2.6. Source of fund; and
3.2.7. Approved Budget for the
Contract.
3.3. Approved Budget for the
Contract (ABC) refers to the
following:
NGs including SUCs (referred to in
Section 2.1)
3.3.1. For specifically
appropriated items as reflected in
the annual budget of the national
government agency, the amount
corresponding to either the full
cost of a single year or multi-year
program/project/ activity. For
multi-year projects, for which a
Multi-Year Obligational Authority
has been issued, the ABC shall be
the amount reflected in the Multi-
Year Obligational Authority.
GOCCs and LGUs (referred to in
Section 2.2)
3.3.3. In the case of GOCCs,
including government financial
institutions as well as LGUs, the
ABC represents the amount of
fund transfers which they receive
from a national government
agency to implement a
program/project/activity.
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Commission on Audit
Republic of the Philippines Page 85
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
contracts for the full project cost.
A MYOA, which contains an annual
breakdown of the full project cost,
obligates agencies to include in
their budget proposal for the
ensuring years the amount
programmed for the said year(s).
3.9. National Expenditure
Program (NEP) the proposed
national budget submitted by the
President to Congress in accord
with Section 22, Article VII of the
Constitution. The NEP shall be the
basis of the general appropriations
bill, which upon its enactment,
becomes the General
Appropriations Act (GAA).
2. To verify the causes of Analyze the instances of Appropriate Audit Working Papers
instances of non-compliance non-compliances to establish
and develop appropriate audit the cause(s) and develop
appropriate audit
recommendations
recommendations.
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Commission on Audit
Republic of the Philippines Page 86
III. ADVERTISING AND POSTING OF THE INVITATION TO BID
(For procurement of goods costing more than P2 million)
A. AUDIT OBJECTIVE:
To verify if the Invitation to Bid was advertised and posted in the media as required and
within the specified time
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
2. To verify if the BAC posted 3. Ahead of any procurement, Did the BAC
the Invitation to Bid request the BAC Secretariat for advertise the
continuously in the PhilGEPS advance information on the Invitation to Bid
website, the website of the first day of any posting. continuously in the:
procuring entity concerned,
4. On the first day of posting 1. PhilGEPS website
if available, and the website access the PhilGEPS website, for 7 calendar
prescribed by the foreign the website of the procuring days starting on
government/foreign or entity concerned, if available, the date of
international financing and website prescribed by the advertisement?
institution, if applicable, for foreign government/ foreign or
7 calendar days starting on international financing 2. website of the
the date of advertisement institution, if applicable. Print procuring entity
the page where the notice was concerned, if
posted (to form part of the available, for 7
Implementing Rules and Regulations
audit evidences). calendar days
(IRR) of RA 9184, as amended on
starting on the
September 2, 2009:
5. Access the websites at date of
21.2.1. Except as otherwise
random during the 7-day advertisement?
provided in Sections 21.2.2 and
period to verify the postings.
54.2 of this IRR and for the
3. website
procurement of common-use
prescribed by
goods and supplies, the Invitation
the foreign
to Bid shall be:
government/
a.
foreign or
b. Posted continuously in the
international
PhilGEPS website, the website
financing
of the procuring entity
institution, if
concerned, if available, and the
applicable, for 7
website prescribed by the
calendar days
foreign government/foreign or
starting on the
international financing
date of
institution, if applicable, for 7
advertisement?
calendar days starting on the
date of advertisement
3. To verify if the BAC posted 6. Ahead of any procurement, Did the BAC post
the Invitation to Bid request the BAC Secretariat for the Invitation to
continuously at any advance information on the Bid:
first day of any posting.
conspicuous place reserved 1. continuously for
for the purpose in the 7. Conduct ocular inspection seven (7) calendar
premises of the procuring on the first day of posting. days,
entity for 7 calendar days, as
certified by the head of the 2. at the
8. Repeat the ocular
conspicuous place
BAC Secretariat of the inspections (may be at
reserved for the
procuring entity random) during the 7-day
purpose in the
period to verify the postings.
Implementing Rules and Regulations premises of the
(IRR) of RA 9184, as amended on procuring entity,
9. Request for the certification
September 2, 2009: of the head of the BAC 3. as certified by
Secretariat. the head of the
21.2.1. Except as otherwise
BAC Secretariat of
provided in Sections 21.2.2 and the procuring
54.2 of this IRR and for the entity?
procurement of common-use
goods and supplies, the Invitation
to Bid shall be:
a.
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
b.
c. Posted at any conspicuous place
reserved for the purpose in the
premises of the procuring entity
for 7 calendar days, as certified
by the head of the BAC
Secretariat of the procuring
entity.
2. To verify the causes of Analyze the instances of non- Appropriate Audit Working Papers
instances of non-compliance compliances to establish the
and develop appropriate cause(s) and develop
appropriate audit
audit recommendations
recommendations.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 89
IV. POSTING OF THE INVITATION TO BID
(For procurement of goods costing P2 million and below)
A. AUDIT OBJECTIVE:
To verify if the Invitation to Bid was posted in the media as required and within the specified
time
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
website prescribed by the
foreign government/foreign or
international financing
institution, if applicable, for 7
calendar days starting on the
date of advertisement
2. To verify if the BAC posted 4. Ahead of any Did the BAC post the
the Invitation to Bid procurement, request the Invitation to Bid
continuously at any BAC Secretariat for advance continuously at any
conspicuous place reserved information on the first day conspicuous place
of any posting. reserved for the
for the purpose in the
purpose in the
premises of the procuring 5. Conduct ocular premises of the
entity for 7 calendar days, as inspection on the first day of procuring entity for 7
certified by the head of the posting. calendar days, as
BAC Secretariat of the certified by the head
procuring entity 6. Repeat the ocular of the BAC Secretariat
inspections (may be at of the procuring
Implementing Rules and Regulations random) during the 7-day entity?
(IRR) of RA 9184, as amended on period to verify the postings.
September 2, 2009:
21.2.1 7. Request for the
a. certification of the head of
b the BAC Secretariat
c. Posted continuously at any
conspicuous place reserved for
the purpose in the premises of
the procuring entity for 7
calendar days, as certified by
the head of the BAC Secretariat
of the procuring entity
concerned.
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Commission on Audit
Republic of the Philippines Page 91
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
2. To verify the causes of Analyze the instances of
instances of non-compliance non-compliances to establish Appropriate Audit Working Papers
and develop appropriate the cause(s) and develop
audit recommendations appropriate audit
recommendations.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 92
V. ISSUANCE OF BIDDING DOCUMENTS FOR THE PROCUREMENT OF GOODS
The bidding documents must be made available to the prospective bidders from the time
the Invitation to Bid is advertised until immediately before the deadline for submission of bids.
A. AUDIT OBJECTIVES:
2. To determine whether the prescribed timelines in the issuance of bidding documents were
followed
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
2. To verify if the BAC posted 2. Ahead of any Did the BAC post
the Bidding Documents at procurement, request the the Bidding
the website of the procuring BAC Secretariat for advance Documents in the:
entity and at the PhilGEPS information on the first day
of any posting of Bidding a. PhilGEPS
website from the time that
Documents. website starting
the Invitation to Bid was on the first day
advertised up to the deadline 3. On the first day of posting of
for the submission and access the PhilGEPS website, advertisement?
receipt of bids the website of the procuring
entity concerned, if b. website of the
Implementing Rules and Regulations available. procuring entity
(IRR) of RA 9184, as amended on concerned, if
September 2, 2009: Print the page where
available,
the notice was posted (to
17.5 The procuring entity shall starting on the
form part of the audit
also post the Bidding Documents first day of
evidences).
at its website and at the PhilGEPS advertisement?
website from the time that the
4. Access the websites at
Invitation to Bid is advertised.
random from the first day of
Prospective Bidders may download
posting up to the deadline
the Bidding Documents from any
for the submission and
of the said websites; Provided
receipt of bids to verify the
that, bidders shall pay the fee for
postings.
the Bidding Documents upon
submission of their Bids.
3. To verify if all bidders 5. Compare the records of Did all the bidders
that secured Bidding the BAC on issued bidding who submitted bids
Documents paid to the documents (with information pay the correct
on Official Receipt numbers) amount for the
authorized collecting officer
for the procurement at hand bidding documents
of the procuring entity
with copies of Official to the authorized
Implementing Rules and Regulations Receipts (ORs) issued by collecting officer of
(IRR) of RA 9184, as amended on authorized collecting officers the procuring
September 2, 2009: for the sale of bidding entity?
17.4. Bidders may be asked to documents.
pay for the Bidding Documents to
recover the cost of its preparation
and development. The BAC shall 6. After submission of bids,
issue the Bidding Documents upon for bidders that downloaded
payment of the corresponding cost bidding documents, compare
thereof to the collecting/ disbursing the OR numbers indicated in
officer of the procuring entity the records of the BAC
concerned. Secretariat with copies of
17.5. Prospective bidders may the ORs or Report of
download the Bidding Documents Collection of authorized
from any of the said websites; collecting officers.
Provided that, bidders shall pay the
fee for the Bidding Documents upon
submission of their bids.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 94
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
procurement activities and
outputs including the
validity of the resulting
contract;
b. validity of any payment to
be made on the basis of
the contract;
c. etc.
and develop appropriate
audit recommendations
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 95
VI. PRE-BID CONFERENCE
For procurement of goods with
Approved Budget for the Contract of at least One Million Pesos (P 1 Million)
The pre-bid conference is the initial forum where the Procuring Entitys representatives
and the prospective bidders discuss the different aspects of the procurement at hand.
A pre-bid conference must be held for contracts with ABCs of at least One Million Pesos (P
1 Million). For contracts with ABCs of less than P 1 million, pre-bid conferences may or may not be
held at the discretion of the BAC. The BAC may also decide to hold a pre-bid conference upon the
written request of a prospective bidder.
A. AUDIT OBJECTIVES:
1. To verify if the BAC conducted a Pre-Bid Conference for a contract with ABC of at least
P1 million
2. To verify if the Pre-Bid Conference was conducted within the required time
3. To verify if during the Pre-Bid Conference the participants, led by the BAC, performed
the required tasks
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Audit Criteria Audit Activities Audit Question Yes No Particulars of the
Answer
at the discretion of the BAC.
Subject to the approval of the
BAC, a pre-bid conference may
also be conducted upon written
request of any prospective
bidder.
2. To verify if the Pre-Bid 2. Based on the deadline for Was the Pre-Bid
Conference was held at the submission and receipt Conference held at
least twelve (12) calendar of bids indicated in the least twelve
days before the deadline Invitation to Bid, determine calendar days
the 12th day before such before the deadline
for the submission and
deadline. for the submission
receipt of bids and receipt of
3. Compare the date bids?
Implementing Rules and established in 2. above with
Regulations (IRR) of RA 9184, as the date of holding the Pre-
amended on September 2, 2009: Bid Conference indicated in
22.2 The pre-bid conference the certified copy of the
shall be held at least twelve Minutes of Pre-Bid
(12) calendar days before the Conference .
deadline for the submission and
receipt of bids. If the procuring
entity determines that, by
reason of the method, nature,
or complexity of the contract to
be bid or when international
participation will be more
advantageous to the GOP, a
longer period for the
preparation of bids is necessary,
the pre-bid conference shall be
held at least thirty (30) calendar
days before the deadline for the
submission and receipt of bids.
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of the
Answer
4. To verify if during the 6. From the Minutes of Pre- Did the BAC
Conference the BAC Bid Conference look for present, discuss,
performed the following information on the and answer queries
tasks and attained the presentation/discussion, on the following:
issues/questions raised by
related objectives:
prospective bidders, and a. eligibility
a. Presented the eligibility clarifications made thereon requirements?
requirements as well as relative to the following:
a. eligibility requirements, b. technical
the technical and
b. technical component of component of
financial components of
the contract to be bid, the contract to
the contract to be bid, c. financial component of be bid?
the evaluation the contract to be bid,
procedures, evaluation d. bid evaluation criteria, c. financial
criteria, and possible e. bid evaluation component of
causes of failure of the procedures, the contract to
bidding. f. post-qualification criteria, be bid?
g. post-qualification
b. Discussed the procedures, d. bid evaluation
requirements in the h. possible causes of failure criteria?
ITB, replied to the of the bidding,
bidders queries about i. requirements in the e. bid evaluation
the requirements, Instructions to Bidders, procedures?
j. specifications,
specifications and other
k. other conditions of the f. post-
conditions of the project, qualification
project, the procedures l. warranty requirement of criteria?
on the bid evaluation of the project,
all bidders and post- m. different offenses and g. post-
qualification evaluation penalties provided for in qualification
of the lowest calculated IRR of RA 9184 procedures?
bidder. Emphasized the
warranty requirement h. possible causes
of failure of the
of the project and the
bidding?
different offenses and
penalties provided for i. requirements in
in IRR of RA 9184. the Instructions
to Bidders?
Implementing Rules and
Regulations (IRR) of RA 9184, as j. specifications?
amended on September 2, 2009:
k. other conditions
22.3. The pre-bid conference of the project?
shall discuss, among other
things, the eligibility l. warranty
requirements and the technical requirement of
and financial components of the the project?
contract to be bid. Attendance
of the bidders shall not be m. different
mandatory. However, AT THE offenses and
OPTION OF THE PROCURING penalties
ENTITY [amendment per provided for in
Annex A of GPPB Resolution IRR of RA
No. 06-2009 dated 30 9184?
September 2009] only those
who have purchased the
Bidding Documents shall be
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Audit Criteria Audit Activities Audit Question Yes No Particulars of the
Answer
allowed to participate in the
pre-bid conference and raise or
submit written queries or
clarifications.
5. To verify if the BAC 7. Compare the date of the Were the Minutes
Secretariat recorded the approval of the Minutes of of the Pre-Bid
proceedings of the Pre-Bid the pre-bid conference with Conference made
the date of the pre-bid available not later
Conference and made the
conference. than three (3)
Minutes available to all calendar days after
participants not later than the pre-bid
three (3) calendar days conference?
after the pre-bid
conference
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of the
Answer
participants not later than three
(3) calendar days after the pre-
bid conference
6. To verify if the BAC 9. From the Minutes of the Did the BAC
invited Observers: BAC meeting on the choose the
a. representing the COA, selection of the Observer Observers
from the pool, check for considering:
the specific relevant
information on the BACs
chamber-member of the
evaluation in regard to: a. one
Philippine Chamber of
the selection of the representing
Commerce and Industry,
organization from which the COA?
and a non-government
the Observer will be
organization (NGO) from
invited; b. One
the procuring entitys Pool
knowledge, experience or representing
of Observers;
expertise in procurement the specific
b. that have:
or in the subject matter relevant
b.1. knowledge, of the contract to be bid; chamber-
experience or expertise no actual or potential member of the
in procurement or in the conflict of interest in the Philippine
subject matter of the contract to be bid; and Chamber of
contract to be bid; conformed with other Commerce and
b.2. no actual or potential relevant criteria Industry?
conflict of interest in the determined by the BAC.
contract to be bid; and c. One
b.3. conformed with other representing a
relevant criteria non-
determined by the BAC; government
c. at least 3 calendar days organization?
prior to the pre-bid
conference d. With
knowledge,
experience or
Implementing Rules and expertise in
Regulations (IRR) of RA 9184, procurement or
as amended on September 2, in the subject
2009: matter of the
contract to be
Section 13. Observers
bid?
13.1. To enhance the
transparency of the process, the
e. With no actual
BAC shall, in all stages of the
or potential
procurement process, invite, in
conflict of
addition to the representative of
interest in the
the COA, at least two (2)
contract to be
observers, who shall not have the
bid?
right to vote, to sit in its
proceedings where:
a) At least one (1) shall come
f. Conformed with
from a duly recognized private
other relevant
group in a sector or discipline
criteria
relevant to the procurement at
determined by
hand, for example:
the BAC?
i)
ii) For goods, a specific relevant
chamber-member of the
Philippine Chamber of 10. From certified copies of Did the BAC invite
Commerce and Industry. the invitations to the the Observers at
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Answer
iii) and Observers with evidence of least 3 days before
b) The other observer shall come receipt, compare the date of the date of the
from a non-government receipt with the 3-day pre-bid
organization (NGO). minimum requirement. conference?
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of the
Answer
Implementing Rules and
Regulations (IRR) of RA 9184,
as amended on September 2,
2009:
13.3. Observers shall be invited
at least three (3) calendar days
before the date of the
procurement stage/activity. The
absence of observers will not
nullify the BAC proceedings,
provided that they have been
duly invited in writing.
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Commission on Audit
Republic of the Philippines Page 102
VII. SUPPLEMENTAL / BID BULLETINS FOR THE PROCUREMENT OF GOODS
Supplemental/Bid Bulletins may be issued upon the procuring entitys initiative for purposes of
clarifying or modifying any provision of the Bidding Documents at least seven (7) calendar days
before the deadline for the submission and receipt of bids. Any modification to the Bidding
Documents shall be identified as an amendment.
A. AUDIT OBJECTIVE:
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Answer
deadline set for the 4. Obtain duly certified Were Supplemental/
submission and receipt of copies of Supplemental/Bid Bid Bulletins signed
bids; Bulletins and check for the by the BAC
signature of the BAC Chairman?
b. the Supplemental/ Bid Chairman.
Bulletin was duly signed
by the BAC Chairman; 5. From the records of the Were Supplemental/
BAC (copies of Bid Bulletins issued at
c. the Supplemental/ Bid Supplemental/Bid Bulletins least seven (7)
Bulletin was issued at with evidence of the date of calendar days before
least seven (7) calendar issuance) check if the deadline for the
days before the deadline Supplemental/Bid Bulletins submission and
for the submission and were issued at least seven receipt of bid?
receipt of bid. (7) calendar days before the
deadline for the submission
Implementing Rules and Regulations and receipt of bid.
(IRR) of RA 9184, as amended on
September 2, 2009:
22.5.1 Requests for clarification(s)
on any part of the Bidding
Documents or for an interpretation
must be in writing and submitted
to the BAC of the procuring entity
at least ten (10) calendar days
before the deadline set for the
submission and receipt of bids. The
BAC shall respond to the said
request by issuing a
Supplemental/Bid Bulletin, duly
signed by the BAC Chairman, to be
made available to all those who
have properly secured the Bidding
Documents, at least seven (7)
calendar days before the deadline
for the submission and receipt of
bids.
3. To verify if:
6. Obtain duly certified Were Supplemental/
a. Supplemental/Bid Bulletins copies of Supplemental/Bid Bid Bulletins initiated
initiated by the procuring Bulletins with evidence of by the procuring
entity for purposes of the date of issuance and entity for purposes of
clarifying or modifying any check if these were issued at clarifying or
provision of the Bidding least seven (7) calendar modifying any
Documents were issued at days before the deadline for provision of the
the submission and receipt Bidding Documents
least seven (7) calendar of bid. were issued at least
days before the deadline seven (7) calendar
for the submission and days before the
receipt of bids; deadline for the
submission and
b. Modifications to the receipt of bids?
Bidding Documents were
identified as amendments.
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
Implementing Rules and Regulations 7. Go through the contents Were modifications to
(IRR) of RA 9184, as amended on of Supplemental/Bid the Bidding
September 2, 2009: Bulletins and check if Documents were
22.5.1. issuing a amendments were identified identified as
Supplemental/Bid Bulletin, duly as such. amendments?
signed by the BAC Chairman
4. To verify if the BAC posted 9. In advance of the posting, Did the BAC post
Supplemental/ Bid Bulletins request the BAC Secretariat Supplemental/Bid
issued by the BAC on the for print-outs (printed on the Bulletins issued:
day of the posting) of
PhilGEPS and at the website
Supplemental/Bid Bulletins a. on the PhilGEPS
of the procuring entity
as posted on the PhilGEPS website?
concerned, if available and at their website.
AND
Implementing Rules and Regulations 10. Obtain from the BAC
(IRR) of RA 9184, as amended on Secretariat the print-outs b. the website of the
September 2, 2009: requested in 9. above. procuring entity
22.5.3 Any Supplemental/ Bid concerned?
Bulletin issued by the BAC shall
also be posted on the PhilGEPS or
[OR was changed to AND per
Annex A of GPPB Resolution No.
06-2009 dated September 30,
2009] the website of the procuring
entity concerned, if available. It
shall be the responsibility of all
those who have properly secured
the Bidding Documents to inquire
and secure Supplemental/Bid
Bulletins that may be issued by the
BAC. However, bidders who have
submitted bids before the issuance
of the Supplemental/Bid Bulletin
must be informed and allowed to
modify or withdraw their bids in
accordance with Section 26.1 of
the IRR.
5. To verify if the BAC 11. From the BAC records on Did the BAC inform
informed the bidders who submission of bids, identify the Bidders who have
have submitted bids before the bidders who have submitted bids before
submitted bids before the the issuance of the
the issuance of the
issuance of Supplemental/Bid
Supplemental/Bid Bulletin Supplemental/Bid Bulletins. Bulletin of such
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Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
and allowed to modify or issuance?
withdraw their bids.
Implementing Rules and Regulations 12. Go through copies of Were the bidders who
(IRR) of RA 9184, as amended on letters sent by the BAC to have submitted bids
September 2, 2009: these bidders and check if before the issuance of
22.5.3 However, bidders who they were informed and Supplemental/Bid
have submitted bids before the allowed to modify or Bulletins informed
issuance of the Supplemental/Bid withdraw their bids in and allowed to modify
Bulletin must be informed and accordance with Section or withdraw their bids
allowed to modify or withdraw their 26.1 of the IRR in accordance with
bids in accordance with Section Section 26.1 of the
26.1 of the IRR. IRR?
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Commission on Audit
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VIII. SUBMISSION, RECEIPT, OPENING OF BIDS
& PRELIMINARY EXAMINATION OF BIDS
FOR THE PROCUREMENT OF GOODS
Bids shall be submitted simultaneously in two (2) separate sealed envelopes and received
by the procuring entity on or before the deadline specified in the Invitation to Bid. Opening of Bids
shall be at the time, date and place specified in the Invitation to Bid.
A. AUDIT OBJECTIVES:
2. To verify if the bids were submitted in the prescribed manner, specified forms and
contained all the required information
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Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
Implementing Rules and Regulations 2. Go through the Minutes of the Did the BAC validate if
(IRR) of RA 9184, as amended on Bid Opening and look for the bidders submitted
September 2, 2009: information on the BACs their bids using the
25.1. Bidders shall submit their validation if each bidder adopted forms specified in the
bids through their duly authorized the forms specified in the Bidding Bidding Documents?
representative using the forms Documents.
specified in the Bidding
Documents in two (2) separate 3. Go through the records of the Did the bidders submit
sealed bid envelopes, and which BAC pertaining to the submission their bids in two (2)
shall be submitted simultaneously. of bids of each bidder and check separate sealed bid
The first shall contain the if the two (2) envelopes were envelopes submitted
technical component of the bid, submitted simultaneously. simultaneously?
including the eligibility
requirements under Section 23.1 4. Go through the Minutes of the
of this IRR, and the second shall Bid Opening and look for
contain the financial component of information pertaining to opening
the bid. of two (2) sealed envelopes of
each bidder.
2. To verify if the 5. Go through the records of the Did the BAC validate
BAC validated that in BAC pertaining to the submission that the bidders
modifying a bid: of bids of each bidder and check concerned submit their
if the submission of modifications bid modifications before
a. it was done before the were done before the deadline the deadline for the
deadline for the for the submission and receipt. submission and receipt?
submission and receipt of
6. Go through the Minutes of the Did the BAC validate if
bids,
Bid Opening and look for the bidders concerned
b. the original bid was not information on the BACs did not retrieve the
retrieved but another bid activities validating if: original bid but merely
a. modifications were marked as submitted another bid
equally sealed, properly
modification and stamped equally sealed, properly
identified, was submitted received by the BAC; and identified, and linked to
and linked to the original b. linked to the original bid (not the original bid and
bid and marked as a withdrawn). marked as a
modification, thereof, modification, thereof,
and stamped received by and stamped received
the BAC by the BAC?
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be considered and shall be
returned to the bidder unopened.
26.2. A bidder may, through a
letter, withdraw its bid before the
deadline for the receipt of bids.
Withdrawal of bids after the
applicable deadline shall be
subject to appropriate sanctions
as prescribed in this IRR. A bidder
may also express its intention not
to participate in the bidding
through a letter which should
reach and be stamped received by
the BAC before the deadline for
the receipt of bids. A bidder that
withdraws its bid shall not be
permitted to submit another bid,
directly or indirectly, for the same
contract.
2. To verify if the BAC 2. Count the number of days Did the BAC observe the
observed the maximum of 45 from the last day of posting of maximum of 45
calendar days from the last the Invitation to Bid up to the calendar days from the
day of posting of the deadline for submission and last day of posting of
receipt of bids and compare with the Invitation to Bid up
Invitation to Bid up to the the 45-day maximum period. to the deadline for
deadline for submission and submission and receipt
receipt of bids of bids?
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Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
BAC on the date, time, and place
specified in the Invitation to
Bid/Request for Expression of
Interest. The following periods
from the last day of posting of the
Invitation to Bid/Request for
Expression of Interest up to the
submission and receipt of bids
shall be observed:
a) For Goods, a maximum period
of forty-five (45) calendar days.
b)
c)
2. To verify if the BAC opened 3. Compare the date and time of Did the BAC open the
the bids immediately after the opening of bids indicated in bids immediately after
the deadline for the the Minutes of the Opening of the deadline for the
Bids with the deadline for submission and receipt
submission and receipt of
submission and receipt of bids of bids?
bids and at the: stated in the Bidding Documents.
a. date, Did the BAC open the
b. time, and 4. Compare the date, time and bids on the date
c. place place of the opening of bids specified in the
specified in the Invitation to indicated in the Minutes of the Invitation to Bid?
Bid Opening of Bids with those
specified in the Invitation to Bid. Did the BAC open the
Implementing Rules and Regulations bids on the time
(IRR) of RA 9184, as amended on specified in the
September 2, 2009: Invitation to Bid?
29. Bid Opening
The BAC shall open the bids Did the BAC open the
immediately after the deadline for bids at the place
the submission and receipt of bids. specified in the
[GPPB Resolution No. 13-2009, Invitation to Bid?
dated 16 December 2009] The
time, date, and place of the
opening of bids shall be specified
in the Bidding Documents. The
bidders or their duly authorized
representatives may attend the
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opening of bids. The BAC shall
adopt a procedure for ensuring
the integrity, security, and
confidentiality of all submitted
bids. The minutes of the bid
opening shall be made available to
the public upon written request
and payment of a specified fee to
recover cost of materials.
3. To verify if the BAC/BAC 5. From the Minutes of Bid Did the BAC:
Secretariat read out and Opening, check for information
recorded during bid opening on the BACs reading out and a. read out and record
letters of withdrawal and recording of withdrawn bids during bid opening
during the bid opening; checking letters of withdrawal of
returned to the bidder the of the date of submission of the bids?
envelope containing the withdrawal letter; and returning
corresponding withdrawn bid the withdrawn bid unopened. b. if the withdrawal of
unopened, either to the bid was made before
bidders representative if he 6. Also check for evidence of the the deadline for
is present or by registered return of the withdrawn bids submission and receipt
mail from acknowledged registered of bids, return the bids
mails. unopened to
Philippine Bidding Documents for the representatives of the
Procurement of Goods, 3rd edition bidders concerned
(October 2009) approved per GPPB present during the bid
Resolution No. 05-2009 dated 30 opening?
September 2009:
23. Modification and Withdrawal c. if the withdrawal of
of Bids bid was made before
23.1. The Bidder may modify its the deadline for
bid after it has been submitted; submission and receipt
provided that the modification is of bids, return
received by the Procuring Entity withdrawn bids
prior to the deadline prescribed unopened by registered
for the submission and receipt mail?
of bids. The Bidder shall not be
allowed to retrieve its original 7. From the Minutes of the Bid Did the BAC forfeit the
bid, but shall be allowed to Opening, check for information bid security and
submit another bid, equally on withdrawals of bids made recommend the
sealed, properly identified, after the deadline for submission imposition of sanctions
linked to its original bid, marked and receipt of bids up to the on bidders who
as TECHNICAL expiration of the period of bid withdrew their bids
MODIFICATION or FINANCIAL validity specified by the bidder in during the interval
MODIFICATION and stamped the financial bid form; and for between the deadline
received by the BAC. Bid information on forfeiture of bid for submission of bids
modifications received after the security and imposition of and the expiration of
applicable deadline shall not be sanctions on these bidders. the period of bid validity
considered and shall be specified by the Bidder
returned to the bidder on the Financial Bid
unopened. Form?
23.2. A Bidder may, through a
letter of withdrawal, withdraw
its bid after it has been
submitted, for valid and
justifiable reason; provided that
the letter of withdrawal is
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received by the Procuring Entity
prior to the deadline prescribed
for submission and receipt of
bids.
23.3. Bids requested to be
withdrawn in accordance with
ITB Clause 23.1, shall be
returned unopened to the
Bidders. A Bidder may also
express its intention not to
participate in the bidding
through a letter which should
reach and be stamped by the
BAC before the deadline for
submission and receipt of bids.
A Bidder that withdraws its bid
shall not be permitted to submit
another bid, directly or
indirectly, for the same contract.
23.4. No bid may be modified
after the deadline for
submission of bids. No bid may
be withdrawn in the interval
between the deadline for
submission of bids and the
expiration of the period of bid
validity specified by the Bidder
on the Financial Bid Form.
Withdrawal of a bid during this
interval shall result in the
forfeiture of the Bidders bid
security, pursuant to ITB Clause
18.5, and the imposition of
administrative, civil, and
criminal sanctions as prescribed
by RA 9184 and its IRR.
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receipt of bids, provided that
the corresponding Letter of
Withdrawal contains a valid
authorization requesting for
such withdrawal, subject to
appropriate sanctions.
4. To verify if the BAC opened 8. From the Attendance Did the BAC open the
the first bid envelopes of the Record/Minutes of the Opening first bid envelopes of
bidders in public of Bids check if the participants the bidders in public?
include bidders and observers.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
30.1. The BAC shall open the first
bid envelopes of prospective
bidders in public to determine
each bidders compliance with the
documents required to be
submitted for eligibility and for the
technical requirements, as
prescribed in this IRR. For this
purpose, the BAC shall check the
submitted documents of each
bidder against a checklist of
required documents to ascertain if
they are all present, using a
nondiscretionary pass/fail
criterion, as stated in the
Instructions to Bidders. If a bidder
submits the required document, it
shall be rated passed for that
particular requirement. In this
regard, bids that fail to include
any requirement or are incomplete
or patently insufficient shall be
considered as failed. Otherwise,
the BAC shall rate the said first bid
envelope as passed
5. To verify if the BAC 9. Compare the Checklist with Did the BAC adopt a
determined compliance of the list of documents in the first Checklist for the first
each bidder with the envelope per Bidding envelope in accordance
Documents. with the list of
documents required to be
documents in the first
submitted in the first
envelope per Bidding
envelope by checking the Documents?
submitted documents of each
bidder against a checklist of 10. Validate the entries Did the BAC determine
required documents to (pass/fail) in the Checklist with each prospective
ascertain if they are all the documents submitted by the bidders compliance
bidders in the first envelope (for with the documents
present, using a
presence or absence). required to be
nondiscretionary pass/fail submitted in the first
criterion, as stated in the envelope:
Instructions to Bidders
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Implementing Rules and Regulations a. Registration
(IRR) of RA 9184, as amended on certificate from SEC,
September 2, 2009: Department of Trade
30.1. The BAC shall open the first and Industry (DTI)
bid envelopes of prospective bidders for sole
in public to determine each bidders proprietorship, or
compliance with the documents CDA for
required to be submitted for cooperatives, or any
eligibility and for the technical proof of such
requirements, as prescribed in this registration as stated
IRR. For this purpose, the BAC shall in the Bidding
check the submitted documents of Documents?
each bidder against a checklist of
required documents to ascertain if b. In a Joint Venture,
they are all present, using a each partners
nondiscretionary pass/fail criterion, Registration
as stated in the Instructions to certificate from SEC,
Bidders. If a bidder submits the Department of Trade
required document, it shall be rated and Industry (DTI)
passed for that particular for sole
requirement. In this regard, bids proprietorship, or
that fail to include any requirement CDA for
or are incomplete or patently cooperatives, or any
insufficient shall be considered as proof of such
failed. Otherwise, the BAC shall registration as stated
rate the said first bid envelope as in the Bidding
passed. Documents?
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(2) Each of the documents and complexity to
submitted in satisfaction of the the contract to be
bidding requirements is an bid, within the
authentic copy of the original, relevant period as
complete, and all statements provided in the
and information provided Bidding Documents?
therein are true and correct;
(3) It is authorizing the Head of
the Procuring Entity or his duly e.1. In a Joint
authorized representative/s to Venture, any
verify all the documents partners?
submitted;
(4) The signatory is the duly
authorized representative of the f. The bidders audited
prospective bidder, and granted financial statements,
full power and authority to do, showing, among
execute and perform any and all others, the
acts necessary and/or to prospective bidders
represent the prospective bidder total and current
in the bidding, with the duly assets and liabilities,
notarized Secretarys Certificate stamped received
attesting to such fact, if the by the BIR or its duly
prospective bidder is a accredited and
corporation, partnership, authorized
cooperative, or joint venture; institutions, for the
(5) It complies with the disclosure preceding calendar
provision under Section 47 of year which should
the Act in relation to other not be earlier than
provisions of R.A. 3019; two (2) years from
(6) It complies with the the date of bid
responsibilities of a prospective submission?
or eligible bidder provided in the
PBDs; and f.1. In a Joint
(7) It complies with existing labor Venture, any
laws and standards, in the case partners?
of procurement of services.
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the prospective bidder is h. Valid joint venture
located. Agreement (JVA), in
case the joint
Technical Documents
venture is already in
iii) Statement of the prospective
existence.
bidder of all its ongoing and
completed government and
In the absence of
private contracts, including
a JVA, duly notarized
contracts awarded but not yet
statements from all
started, if any, whether similar
the potential joint
or not similar in nature and
venture partners
complexity to the contract to be
stating that they will
bid, within the relevant period
enter into and abide
as provided in the Bidding
by the provisions of
Documents. The statement shall
the JVA in the
include all information required
instance that the bid
in the PBDs prescribed by the
is successful?
GPPB.
iv)
Financial Documents i. The bid security in
v) The prospective bidders the prescribed:
audited financial statements, (1) form?
showing, among others, the (2) amount?
prospective bidders total and (3) validity period?
current assets and liabilities,
stamped received by the BIR
or its duly accredited and j. Technical
authorized institutions, for the specifications, which
preceding calendar year which may include:
should not be earlier than two (1) production/
(2) years from the date of bid delivery
submission. schedule?
vi) The prospective bidders (2) manpower
computation for its Net Financial requirements?
Contracting Capacity (NFCC) or (3) after-sales
a commitment from a Universal service/parts, if
or Commercial Bank to extend a applicable?
credit line in favor of the
prospective bidder if awarded
the contract to be bid (CLC). k. Sworn statement by
b) Class B Document the prospective
bidder or its duly
Valid joint venture Agreement authorized
(JVA), in case the joint venture is representative in the
already in existence. In the form prescribed by
absence of a JVA, duly notarized the GPPB as to the
statements from all the potential following:
joint venture partners stating that (1) It is not
they will enter into and abide by blacklisted or
the provisions of the JVA in the barred from
instance that the bid is successful bidding by the
shall be GOP or any of its
included in the bid. Failure to agencies, offices,
enter into a joint venture in the corporations, or
event of a LGUs, including
contract award shall be ground for foreign
the forfeiture of the bid security. government/
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Each partner of the joint venture foreign or
shall submit the legal eligibility international
documents. The submission of financing
technical and financial eligibility institution whose
documents by any of the joint blacklisting rules
venture partners constitutes have been
compliance. recognized by the
GPPB?
27.1. All bids shall be
(2) Each of the
accompanied by a bid security, documents
payable to the procuring entity submitted in
concerned as a guarantee that the satisfaction of the
successful bidder shall, within ten bidding
(10) calendar days or less, as requirements is an
indicated in the Instructions to authentic copy of
Bidders, from receipt of the notice of the original,
award, enter into contract with the complete, and all
procuring entity and furnish the
statements and
performance security required in information
Section 39 of this IRR, except when provided therein
Section 37.1 of this IRR allows a are true and
longer period. Failure to enclose the correct?
required bid security in the form and (3) It is authorizing
amount prescribed herein shall the Head of the
automatically disqualify the bid Procuring Entity or
concerned.
his duly authorized
27.2 The bid security shall be in representative/s to
an amount equal to a percentage of verify all the
the ABC in accordance with the documents
following schedule [as amended by submitted?
Annex A of GPPB Resolution No. 06- (4) The signatory is
2009 dated September 30, 2009]: the duly
authorized
Amount of Bid representative of
Security (Equal
Form of Bid Security
to Percentage of the prospective
the ABC) bidder, and
a) Cash or cashiers/ granted full power
managers check Two percent and authority to
issued by a Universal (2%)
or Commercial Bank. do, execute and
b) Bank draft/ perform any and
guarantee or all acts necessary
irrevocable letter of
credit issued by a
and/or to
Universal or represent the
Commercial Bank: prospective bidder
Provided, however, in the bidding,
that it shall be
confirmed or authentic- with the duly
ated by a Universal or notarized
Commercial Bank, if Secretarys
issued by a foreign
bank.
Certificate
c) Surety bond callable attesting to such
upon demand issued fact, if the
by a surety or prospective bidder
insurance company Five percent
duly certified by (5%) is a corporation,
Insurance Commission partnership,
as authorized to issue cooperative, or
such security.
joint venture?
(5) It complies with
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d) Any combination of Proportionate to the disclosure
the foregoing. share of form
with respect to
provision under
total amount of Section 47 of the
security Act in relation to
other provisions of
For biddings conducted by LGUs, the R.A. 3019?
prospective bidder may also submit (6) It complies with
bid securities in the form of the responsibilities
cashiers/managers check, bank of a prospective or
draft/guarantee, or eligible bidder
irrevocable letter of credit from other provided in the
banks certified by the BSP as PBDs?
authorized to issue such financial (7) It complies with
instrument. existing labor laws
and standards, in
27.3. The bid security shall be the case of
denominated in Philippine Pesos and procurement of
posted in favor of the procuring services?
entity.
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its officers and members;
c) If the bidder is a corporation, to all
its officers, directors, and
controlling stockholders; and
d) If the bidder is a joint venture, the
provisions of items (a), (b), or (c)
of this Section shall
correspondingly apply to each of
the members of the said joint
venture, as may be appropriate.
6. To verify if the BAC opened 11. From the Checklists and Did the BAC open only
the second envelopes of the Minutes of the Bid Opening and the second envelopes of
bidders whose first envelopes of the first envelope identify the the bidders whose first
were rated passed on the same bidders who were rated passed envelopes were rated
day and determined compliance passed?
with the requirements using a
nondiscretionary pass/fail
criterion, as stated in the
Instructions to Bidders
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Philippine Bidding Documents for the a.2 bill of
Procurement of Goods, 3rd Edition quantities?
(October 2009) issued by the GPPB:
a.3 Price
Instruction to Bidders (ITB) 13. Schedules?
Documents Comprising the Bid:
Financial Component a.4 total bid price?
13.1 Unless otherwise stated in
the BDS, the financial component (b) If the bidder claims
of the bid shall contain the preference as a
following: Domestic Bidder or
(a) Financial Bid Form, which Domestic Entity, a
includes bid prices and the bill of certification from
quantities and the applicable Price the:
Schedules, in accordance with ITB
Clauses 15.1 and 15.4; DTI? or
(b) If the bidder claims preference
as a Domestic Bidder or Domestic SEC? or
Entity, a certification from the
DTI, SEC, or CDA issued in CDA?
accordance with ITB Clause 27
15. From the Minutes of Bid Did the BAC
---- Opening, Abstract of Bids as automatically disqualify
15.1 The Bidder shall complete Read, and relevant BAC bids higher than the
the appropriate Price Resolutions check if bids higher ABC?
than the ABC were automatically
Schedules included herein,
disqualified.
stating the unit prices, total
price per item, the total
amount and the expected
countries of origin of the
Goods to be supplied under
this Project.
----
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material used in the manufacture
or assembly of Goods quoted
ex works or ex factory; or
----
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grant a margin of preference for
the purpose of comparison of bids
in accordance with the following:
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CDA (in case of cooperatives)that
the (a) sole proprietorship is a
citizen of the Philippines or
the partnership, corporation,
cooperative, or association is duly
organized under the laws of the
Philippines with at least seventy
five percent (75%) of its interest
or outstanding capital stock
belonging to citizens of the
Philippines, (b) habitually
established in business and
habitually engaged in the
manufacture or sale of the
merchandise covered by is bid,
and (c) the business has been in
existence for at least five (5)
consecutive years prior to the
advertisement and/or posting of
the Invitation to Bid for this
Project.
----
31.1.The ABC shall be the
upper limit or ceiling for
acceptable bid prices. If a bid
price, as evaluated and
calculated in accordance with
this IRR, is higher than the
ABC, the bidder submitting the
same shall be automatically
disqualified. There shall be no
lower limit or floor on the
amount of the award.
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IN CASE A BIDDER DETERMINED AS FAILED FILES A REQUEST FOR RECONSIDERATION
1. To verify if the Bidder 1. Count the number of days Did the BAC ensure that
determined as failed FROM the date of bid opening or the Bidder determined
submitted his request for date of receipt of the notice by as failed submitted
the concerned Bidder TO the their requests for
reconsideration within 3 days
date of receipt by the BAC reconsideration within 3
upon written notice or, if
Secretariat of the letter-request days upon written
present at the time of bid for reconsideration (duly notice or, if present at
opening, upon verbal stamped received by the BAC the time of bid opening,
notification Secretariat) and compare with upon verbal
the 3-day maximum. notification?
Philippine Bidding Documents (PBDs)
for the Procurement of Goods, 3rd
Edition, (October 2009) approved by
2. From the Minutes of the Did the BAC evaluate if
the GPPB per GPPB Resolution No.
deliberation of the request for the failure was due to
06-2009 dated September 30, 2009:
reconsideration, look for the fault of the bidder?
24.7. A Bidder determined as information and finding if the
failed has three (3) calendar days failure was due to the fault of
upon written notice or, if present at the Bidder, and the if the BAC If in the affirmative, did
the time of bid opening, upon verbal decided not to grant the request. the BAC decide not to
notification within which to file a grant the request?
request or motion for
reconsideration with the BAC: 3. From the Minutes of the Did the BAC decide on
Provided, however, that the motion deliberation of the request for the request for
for reconsideration shall not be reconsideration, look for reconsideration within 7
granted if it is established that the information on the period within days from receipt
finding of failure is due to the fault which the BAC decided on the thereof?
of the Bidder concerned: Provided, request for reconsideration
further, that the BAC shall decide on from the date of receipt of the
the request for reconsideration request for reconsideration up to
within seven (7) calendar days from the date of decision (BAC
receipt thereof. If a failed bidder Resolution) on the decision
signifies his intent to file a request reached; and compare with the
for reconsideration, the BAC shall 7-day maximum period.
keep the bid envelopes of the said
failed Bidder unopened and/or duly
sealed until such time that the
request for reconsideration or
protest has been resolved.
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in the subject matter of the be bid; and c. One representing a
contract to be bid; conformed with other relevant non-government
b.2. no actual or potential criteria determined by the organization?
conflict of interest in the BAC.
contract to be bid; and d. With knowledge,
b.3. conformed with other experience or
relevant criteria determined expertise in
by the BAC; procurement or in
the subject matter of
c. at least 3 calendar days
the contract to be
prior to the start of the
bid?
activity
e. With no actual or
Implementing Rules and potential conflict of
Regulations (IRR) of RA 9184, as interest in the
amended on September 2, 2009: contract to be bid?
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13.3. Observers shall be invited
at least three (3) calendar days
before the date of the
procurement stage/activity. The
absence of observers will not
nullify the BAC proceedings,
provided that they have been
duly invited in writing.
2. To verify if the Procuring 3. Based on the BACs Minutes Did the Procuring Entity
Entity considered the on the bid opening, preliminary consider the comments/
comments/observations of evaluation of bids, evaluation observations of the
and decision on motions for Observers?
the Observers
reconsideration, and the report
Implementing Rules and of the Observers check whether
Regulations (IRR) of RA 9184, as a deliberation was made on the
comments /observations of the
amended on September 2, 2009:
observers.
13.4. The observers shall have the
following responsibilities:
a) To prepare the report either
jointly or separately indicating
their observations made on the
procurement activities conducted
by the BAC for submission to the
Head of the Procuring Entity, copy
furnished the BAC Chairman. The
report shall assess the extent of
the BACs compliance with the
provisions of this IRR and areas of
improvement in the BACs
proceedings;
b) To submit their report to the
procuring entity and furnish a
copy to the GPPB and Office of the
Ombudsman/Resident
Ombudsman. If no report is
submitted by the observer,
then it is understood that the
bidding activity conducted by
the BAC followed the correct
procedure; and
c) To immediately inhibit and notify
in writing the procuring entity
concerned of any actual or
potential interest in the contract to
be bid.
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EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT
1. To verify the effects of Analyze the instances of non-
instances of non-compliance compliance to establish the Appropriate Audit Working Papers
on the: effects and develop appropriate
audit recommendations.
a. validity of the procurement
activities and outputs Also determine if appropriate
including the validity of the actions were taken by the
resulting contract; auditee in regard to instances of
non-compliance.
b. validity of any payment to
be made on the basis of
the contract; NOTE:
Also refer to the OFFENSES
c. etc. AND PENALTIES portion of this
and develop appropriate Audit Guide.
audit recommendations
NOTE:
Also refer to the OFFENSES
AND PENALTIES portion of this
Audit Guide.
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IX. BID EVALUATION FOR THE PROCUREMENT OF GOODS
The purpose of bid evaluation is to determine the Lowest Calculated Bid. This is done by
establishing the correct calculated prices of the bids and ranking in ascending order the total bid
prices as so calculated. The bid with the lowest price is the LCB.
A. AUDIT OBJECTIVES:
1. To verify if the BAC adopted the required conditions and procedures in bid
evaluation
2. To verify if the BAC followed the required timeline in the conduct of bid evaluation.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
2. To verify if the BAC 2. From the TWG report, as Did the BAC evaluate
considered completeness reviewed by the BAC, the completeness of
and arithmetical Minutes of the BAC meeting the financial
corrections of the on bid evaluation, and component of the
Resolution of the BAC bids :
financial component of
declaring the LCB, look for
the bids in the detailed the information on the For Goods offered
evaluation evaluation of completeness from within the
of financial component of Philippines:
Implementing Rules and the bids.
Regulations (IRR) of RA 9184, as a. Item?
amended on September 2, 2009:
b. Description?
32.2.1 The BAC shall
immediately conduct a detailed c. Country of Origin?
evaluation of all bids using non-
discretionary criteria in d. Quantity?
considering the following:
(a) Completeness of the bid e. Unit Price EXW per
Unless the Instruction to item?
Bidders specifically allow
partial bids, bids not f. Cost of local labor,
addressing or providing all of raw material, and
the required items in the component?
Bidding Documents including,
where applicable, bill of g. Total price EXW
quantities, shall be considered per item?
non-responsive and, thus,
automatically disqualified. In h. Unit prices per
this regard, where a required item final
item is provided, but no price destination and
is indicated, the same shall be unit price of other
considered as non-responsive, incidental
but specifying a 0 (zero) for services?
the said item would mean
that it is being offered for free i. Sales and other
to the Government; and taxes payable per
(b) Arithmetical corrections item if Contract is
Consider computational errors awarded?
and omissions to enable
proper comparison of all j. Total price
eligible bids. It may also delivered Final
consider bid modifications it Destination?
expressly allowed in the
Bidding Documents [AS For Goods Offered
AMENDED BY GPPB from Abroad:
RESOLUTION NO. 06-2009
DATED SEPT 30, 2009] Any a. Item?
adjustment shall be calculated
in monetary terms to b. Description?
determine the calculated
prices. c. Country of
32.2.2. The BAC shall evaluate Origin?
all bids on an equal footing to
ensure fair and competitive bid d. Quantity?
comparison. For this purpose,
all bidders shall be required to e. Unit price CIF
include the cost of all taxes, port of entry
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
such as, but not limited to, (specified port)
value added tax (VAT), income or CIF named
tax, local taxes, and other fiscal place (specified
levies and duties which shall be border point or
itemized in the bid form and place of
reflected in the detailed destination)?
estimates. Such bids, including
said taxes, shall be the basis for f. Total CIF or CIF
bid evaluation and comparison. price per item?
g. Unit price
Delivered Duty
Unpaid (DDU)?
h. Unit price
Delivered Duty
Paid (DDP)?
i. Total Price
Delivered DDP?
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
3. To verify if the BAC 4. Analyze the TWG report, Did the BAC disqualify
disqualified bidders whose as reviewed by the BAC, bidders whose bids as
bids as calculated were Minutes of the BAC meeting calculated were
higher than the ABC on bid evaluation, Abstract higher than the ABC?
of Bids as Calculated, and
Implementing Rules and Resolution of the BAC
Regulations (IRR) of RA 9184, as declaring the LCB, in regard
amended on September 2, 2009: to disqualified bidders whose
bids are higher than the
31.1 The ABC shall be the ABC.
upper limit or ceiling for
acceptable bid prices. If a bid
price, as evaluated and calculated
in accordance with this IRR, is
higher than the ABC, the bidder
submitting the same shall be
automatically disqualified. There
shall be no lower limit or floor on
the amount of the award.
4. To verify if the BAC 5. Check for completeness Did the BAC prepare
prepared the Abstract of of the information contained the Abstract of Bids
Bids as Calculated with the in the Abstract of Bids as as calculated with the
Calculated and if this was following information:
required information
signed by the members of
the BAC. a. Name of the
Implementing Rules and
contract?
Regulations (IRR) of RA 9184, as
amended on September 2, 2009: b. Location?
Section 32.3 After all bids
c. Time of bid
have been received, opened, opening?
examined, evaluated, and ranked,
the BAC shall prepare the d. Date of bid
corresponding Abstract of Bids.
opening?
.The Abstract of Bids shall
contain the following: e. Place of bid
opening?
(a) Name of the contract and its
location, if applicable; f. Names of bidders
(b) Time, date and place of bid and their
opening; and corresponding
(c) Names of bidders and their calculated bid
corresponding calculated bid prices
prices arranged from lowest
to highest, the amount of bid g. Calculated bid
security and the name of the prices arranged
issuing entity. from lowest to
highest?
h. Amount of bid
security?
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
j. Names and
signatures of the
Chairman and
members of the
BAC?
5. To verify if the BAC 6. Analyze the TWG report, Did the BAC declare
declared rank 1 in the as reviewed by the BAC, rank 1 in the Abstract
Abstract of Bids as Minutes of the BAC meeting of Bids as Calculated
on bid evaluation, Abstract as the Lowest
Calculated as the Lowest
of Bids as Calculated, and Calculated Bid (LCB)?
Calculated Bid (LCB)
Resolution of the BAC
declaring the LCB, in regard
Implementing Rules and to disqualified bidders whose
Regulations (IRR) of RA 9184, as bids are higher than the
amended on September 2, 2009: ABC.
32.2.4. Bids shall then be
ranked in the ascending order of
their total calculated bid prices,
as evaluated and corrected for
computational errors, and other
bid modifications, to identify the
Lowest Calculated Bid. Total
calculated bid prices, as
evaluated and corrected for
computational errors, and other
bid modifications, which exceed
the ABC shall be disqualified.
6. To verify if the BAC 7. Obtain a copy of the Did the BAC notify
notified the bidder with the notice issued by the BAC to the bidder with the
LCB the bidder with the LCB and LCB?
check for receipt by the
Implementing Rules and bidder.
Regulations (IRR) of RA 9184, as
amended on September 2, 2009:
34.2. Within three (3) calendar
days from receipt by the bidder
of the notice from the BAC that
the bidder has the Lowest
Calculated Bid or Highest Rated
Bid, the bidder shall submit the
following documentary
requirements to the BAC:
7. To verify if the BAC 8. From the Office Order Was there a quorum
observed quorum creating the BAC, determine of the BAC?
the number of BAC
Implementing Rules and members and identify the
Regulations (IRR) of RA 9184, as Chairman or Vice-Chairman.
amended on September 2, 2009:
12.3 Quorum 9. From the Minutes of Bid
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
A majority of the total BAC Evaluation, check for the
composition as designated by the presence of the Chairman or
Head of the Procuring Entity shall Vice-Chairman and if
constitute a quorum for the majority of the BAC
transaction of business, provided members or
that the presence of the Chairman representatives/alternates
or Vice-Chairman shall be required. attended the proceedings.
8. To verify if the BAC 10. From the Invitation to Did the BAC complete
completed the evaluation Bid and BAC Resolution the evaluation
process within seven (7) determine the number of process within seven
calendar days from the days from the deadline for (7) calendar days
receipt of proposals and the from the Bid
deadline for receipt of
completion of the bid Submission Deadline?
proposals evaluation.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
13. Observers contract to be bid?
13.1. To enhance the transparency
of the process, the BAC shall, in all f. Conformed with
stages of the procurement process, other relevant
invite, in addition to the criteria determined
representative of the COA, at least by the BAC?
two (2) observers, who shall not
have the right to vote, to sit in its
proceedings where: 12. From certified copies of Did the BAC invite the
a) At least one (1) shall come from the invitations to the observers at least 3
a duly recognized private group in Observers with evidence of days before the date
a sector or discipline relevant to receipt and the date of the of the bid evaluation?
the procurement at hand, for start of bid evaluation,
example: compare the period with the
i) 3-day minimum
ii) For goods, a specific relevant requirement.
chamber-member of the
Philippine Chamber of
Commerce and Industry.
iii) and
b) The other observer shall come
from a non-government
organization (NGO).
10. To verify if the 13. Based on the BACs Did the Procuring
Procuring Entity considered Minutes on the bid Entity consider the
the comments/observations evaluation and the report of comments/
of the Observers the Observers check observations of the
whether a deliberation was Observers?
made on the comments
Implementing Rules and /observations of the
Regulations (IRR) of RA 9184, as observers.
amended on September 2, 2009:
13.4. The observers shall have
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
the following responsibilities:
a) To prepare the report either
jointly or separately indicating
their observations made on the
procurement activities
conducted by the BAC for
submission to the Head of the
Procuring Entity, copy furnished
the BAC Chairman. The report
shall assess the extent of the
BACs compliance with the
provisions of this IRR and areas
of improvement in the BACs
proceedings;
b) To submit their report to the
procuring entity and furnish a
copy to the GPPB and Office of
the Ombudsman/Resident
Ombudsman. If no report is
submitted by the observer,
then it is understood that
the bidding activity
conducted by the BAC
followed the correct
procedure; and
c) To immediately inhibit and
notify in writing the procuring
entity concerned of any actual
or potential interest in the
contract to be bid.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
NOTE:
c. etc. Also refer to the
and develop appropriate OFFENSES AND
audit recommendations PENALTIES portion of
this Audit Guide.
Implementing Rules and
Regulations (IRR) of RA 9184,
as amended on September 2,
2009:
13.3. Observers shall be invited at
least three (3) calendar days
before the date of the procurement
stage/activity. The absence of
observers will not nullify the BAC
proceedings, provided that
they have been duly invited in
writing.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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X. POST-QUALIFICATION FOR THE PROCUREMENT OF GOODS
The Lowest Calculated Bid (LCB) shall undergo post-qualification in order to determine
whether the bidder concerned complies with and is responsive to all the requirements and
conditions as specified in the Bidding Documents.
A. AUDIT OBJECTIVES:
1. To verify if the BAC adopted the required conditions and procedures in the conduct
of post-qualification
2. To verify if the BAC followed the required timeline in the conduct of post-qualification
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
1. To verify whether the 1. From the records of Did the bidder with
bidder whose bid was the BAC, check the date the LCB submit
declared by the BAC as LCB when the bidder with the within 3 calendar
submitted the following LCB submitted the: a) Tax days from receipt
clearance, b) Latest of the notice as
documents within 3 calendar
income and business tax LCB:
days from its receipt of the returns, c) Certificate of
notice: PhilGEPS Registration; a. Tax Clearance?
a) Tax clearance; and d) Other appropriate
b) Latest income and licenses and permits
business tax returns; required by law and b. Latest income
c) Certificate of PhilGEPS stated in the Bidding and business tax
Registration; and Documents and compare returns?
this with the date of
d) Other appropriate licenses
receipt of the notice that
and permits required by the bidder has the LCB. c. Certificate of
law and stated in the PhilGEPS
Bidding Documents. 2. Ask for copies of the Registration?
documents submitted
Implementing Rules and Regulations from the BAC Secretariat
(IRR) of RA 9184, as amended on and compare them with d. Other
September 2, 2009: the requirements. appropriate
34.2. Within three (3) calendar licenses and
days from receipt by the bidder of permits required by
the notice from the BAC that the law and stated in
bidder has the Lowest Calculated the Bidding
Bid or Highest Rated Bid, the Documents?
bidder shall submit the following
documentary requirements to the
BAC:
a) Tax clearance;
b) Latest income and business tax
returns;
c) Certificate of PhilGEPS
Registration; and
d) Other appropriate licenses and
permits required by law and
stated in the Bidding
Documents.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
information thereon and veracity of the
Implementing Rules and Regulations check the results of such documents/
(IRR) of RA 9184, as amended on validation. information?
September 2, 2009:
34.2.Within three (3) calendar
If the BAC had a
days from receipt by the bidder of finding against the
the notice from the BAC that the veracity of the
bidder has the Lowest Calculated Bid documents/ information
or Highest Rated Bid, the bidder thereon, obtain a copy of
shall submit the following the BAC Resolution
documentary requirements to the disqualifying the bidder
BAC: and forfeiting its bid
a) Tax clearance; security.
b) Latest income and business tax
returns;
c) Certificate of PhilGEPS
Registration; and
d) Other appropriate licenses and
permits required by law and
stated in the Bidding Documents.
Failure to submit the above
requirements on time or a finding
against the veracity of such shall be
ground for the forfeiture of the bid
security and disqualify the bidder for
award.
4. To verify if the BAC 6. Secure from the BAC Did the BAC
verified, validated, and Secretariat the TWG validate the
ascertained that the bidder report, as reviewed by the authenticity of the
with the LCB is: BAC, evidencing validation Registration
of the authenticity of the: documents
submitted by the
a. a duly licensed Filipino a) DTI Registration bidder?
citizen/sole proprietor, or Certificate, duly supported
b. a Partnerships duly with:
the DTI-certified copy
organized under the laws of
of the Registration
the Philippines and of which Certificate and
at least sixty percent (60%) DTI certificate that
of the interest belongs to the sole proprietor is
citizens of the Philippines, or a Filipino citizen
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
c. a Corporation duly (based on the
organized under the laws of application for
the Philippines, and of which registration filed by
at least sixty percent (60%) the bidder with the
DTI),
of the outstanding capital
if the bidder is a sole
stock belongs to citizens of proprietorship;
the Philippines, or
d. Cooperatives duly b. SEC registration and of
organized under the laws of the 60% Filipino
the Philippines, and of which ownership, duly
at least sixty percent (60%) supported with:
belongs to citizens of the the SEC-certified
copy of the
Philippines, or
Registration
e. Joint Venture - that Filipino Certificate,
ownership or interest of the if the bidder is a
joint venture concerned shall partnership;
be at least sixty percent (60%).
c. SEC registration and of
Implementing Rules and the 60% Filipino
Regulations (IRR) of RA 9184, as ownership, duly
amended on September 2, 2009: supported with:
34.3. The post-qualification shall SEC-certified copy
verify, validate, and ascertain all of the Registration
statements made and documents Certificate and
submitted by the bidder with the SEC-certified copy
Lowest Calculated Bid/Highest of the Articles of
Rated Bid, using non-discretionary Incorporation
criteria, as stated in the Bidding if the bidder is a
Documents. These criteria shall corporation.
consider, but shall not be limited
to, the following: d. CDA registration and
a) Legal Requirements. To verify, of the 60% Filipino
validate, and ascertain licenses, ownership, duly
certificates, permits, and supported with:
agreements submitted by the CDA-certified copy
bidder, and the fact that it is not of the Registration
included in any blacklist as Certificate and
provided in Section 25.2 of this CDA certificate
IRR. For this purpose, the GPPB that at least sixty
shall maintain a consolidated file percent (60%)
of all blacklisted suppliers, belongs to citizens
contractors, and consultants. of the Philippines
if the bidder is a
cooperative
23.5.1. For the procurement of
e. Joint Venture individual
goods:
partners:
23.5.1.1. The following shall be
DTI, SEC, or CDA
eligible to participate in the
registrations and
bidding for the supply of goods:
of the 60%
Filipino ownership
a) Duly licensed Filipino citizens/
duly supported with
sole proprietorships;
b) Partnerships duly organized the DTI-, SEC-, or
CDA-certified
under the laws of the Philippines
Certificate, as the case
and of which at least sixty percent
may be and DTI-, SEC-
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
(60%) of the interest belongs to , or CDA-certified
citizens of the Philippines; documents evidencing
c) Corporations duly organized ownership.
under the laws of the Philippines, 7. Compare the Did the BAC
and of which at least sixty percent data/documents in 6. validate if the
(60%) of the outstanding capital above with the documents bidder is a Filipino,
stock belongs to citizens of the submitted by the bidder for a sole
Philippines; to validate authenticity proprietorship?
d) Cooperatives duly organized and extent of Filipino
under the laws of the Philippines, ownership.
and of which at least sixty percent Did the BAC
(60%) belongs to citizens of the validate if the
Philippines; or Partnership or
e) Persons/ entities forming Corporation or
themselves into a joint venture, Cooperative or
i.e., a group of two (2) or more Joint Venture is at
persons/entities that intend to be least 60% Filipino
jointly and severally responsible or owned?
liable for a particular contract:
Provided, however, That Filipino
ownership or interest of the joint
venture concerned shall be at
least sixty percent (60%). For this
purpose, Filipino ownership or
interest shall be based on the
contributions of each of the
members of the joint venture as
specified in their JVA.
5. To verify if the BAC 8. Secure from the BAC Did the BAC
verified, validated, and Secretariat the TWG validate the
ascertained that the Mayors report, as reviewed by the authenticity of the
BAC, evidencing validation Mayors Permit
Permit submitted by the
of the authenticity of the submitted by the
bidder with the LCB was Mayors Permit and bidder?
issued by the city or whether it was issued by
municipality where the the city or municipality
principal place of business of where the principal place
the prospective bidder is of the business of the Did the BAC verify,
located bidder is located, duly validate, and
supported with: ascertain that the
Implementing Rules and The LGU-certified Mayors Permit
Regulations (IRR) of RA 9184, as copy of the Mayors submitted by the
amended on September 2, 2009: permit, and bidder with the LCB
DTI-, SEC-, or CDA- was issued by the
34.3. The post-qualification shall
certified Registration city or municipality
verify, validate, and ascertain all
Certificate showing where the principal
statements made and documents
the bidders principal place of business of
submitted by the bidder with the
place of business the prospective
Lowest Calculated Bid/Highest
bidder is located?
Rated Bid, using non-discretionary
9. Compare the
criteria, as stated in the Bidding
data/documents in 8.
Documents. These criteria shall
above with the documents
consider, but shall not be limited
submitted by the bidder
to, the following:
to validate authenticity
a) Legal Requirements. To verify,
and issuing entity is the
validate, and ascertain licenses,
city/municipality where
certificates, permits, and
the bidders principal
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
agreements submitted by the place of business is
bidder, and the fact that it is not located.
included in any blacklist as
provided in Section 25.2 of this
IRR. For this purpose, the GPPB
shall maintain a consolidated file
of all blacklisted suppliers,
contractors, and consultants.
23.1. For purposes of
determining the eligibility of
bidders using the criteria stated
in Section 23.5 of this IRR, only
the following documents shall be
required by the BAC, using the
forms prescribed in the Bidding
Documents,:
a) Class A Documents
Legal Documents
i) ---
ii) Mayors permit issued by the
city or municipality where the
principal place of business of
the prospective bidder is
located.
6. To verify if the BAC 10. Secure from the BAC Did the BAC verify,
verified, validated, and Secretariat the TWG validate, and
ascertained compliance of the report, as reviewed by ascertain that the
the BAC, evidencing goods offered by
goods offered with the
validation of the goods the bidder with the
requirements specified in the
offered with the LCB complied with
Bidding Documents, requirements specified the requirements
including, where applicable: in the Bidding specified in the
a. Verification and/or Documents, duly Bidding Documents
inspection and testing of supported with: in terms of:
the goods/product,
b. after sales and/or a. inspection reports a. specifications of
maintenance capabilities, on the goods the item?
offered;
in applicable cases
b. test results b. maintenance
and/or after-sales
Implementing Rules and 11. Compare the results capabilities?
Regulations (IRR) of RA 9184, as of validation in 10
amended on September 2, 2009: above with the
34.3. The post-qualification shall requirements in the
verify, validate, and ascertain all Bidding Documents
statements made and documents
submitted by the bidder with the
Lowest Calculated Bid/Highest
Rated Bid, using non-discretionary
criteria, as stated in the Bidding
Documents. These criteria shall
consider, but shall not be limited
to, the following:
a) Legal Requirements
b) Technical Requirements. To
determine compliance of
goods, infrastructure
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
projects, or consulting
services offered with the
requirements specified in the
Bidding Documents, including,
where applicable:
i)
ii)
iii) Verification and/or
inspection and testing of the
goods/product, after sales
and/or maintenance
capabilities, in applicable
cases, for the procurement of
goods;
7. To verify if the BAC 11. From the TWG report Did the BAC
validated if the bidder with with supporting validate if the
the LCB is not blacklisted documents (e.g. bidder with the LCB
consolidated file of all was not
blacklisted suppliers blacklisted?
Implementing Rules and Regulations
maintained by the GPPB)
(IRR) of RA 9184, as amended on
duly reviewed by the BAC,
September 2, 2009:
and the Minutes of BAC
34.3. The post-qualification shall
meetings, check for
verify, validate, and ascertain all
information showing the
statements made and documents
BACs validation if the
submitted by the bidder with the
bidder with the LCB is not
Lowest Calculated Bid/Highest Rated
blacklisted.
Bid, using non-discretionary criteria,
as stated in the Bidding Documents.
These criteria shall consider, but
shall not be limited to, the following:
8. To verify if the BAC 12. From the TWG report, Did the BAC
validated the bidders as reviewed by the BAC, validate the
compliance with the no the Minutes of BAC relationship of the
relationship provision meetings/ deliberations bidder with the:
and BAC Resolution,
embodied in Section 47 of the
check for information a. HOPE?
Revised IRR of RA No. 9184, showing the BACs
i.e., that the bidder is not validation that: b. members of the
related by consanguinity or a. the individual bidder in BAC?
affinity up to the 3rd civil an individual or a sole
degree to the: proprietorship, is not c. members of the
related to the persons TWG?
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
a. HOPE, mentioned in Sec. 47,
b. members of the BAC, Amended IRR of RA d. members of the
c. members of the TWG, 9184; BAC Secretariat?
d. members of the BAC b. all the officers and
members of the bidder e. head of the
Secretariat,
partnership are not Project
e. head of the Project related to the persons Management
Management Office (PMO), mentioned in Sec. 47, Office (PMO)?
f. head of the end-user unit, Amended IRR of RA
g. project consultants 9184; f. head of the end-
c. all the officers, user unit?
Section 47. Disclosure of Relations directors, and
All bids shall be accompanied by a controlling g. project
sworn affidavit of the bidder that it is stockholders of the consultants?
not related to the Head of the bidder corporation are
Procuring Entity, members of the not related to the
BAC, the TWG, and the BAC persons mentioned in
Secretariat, the head of the PMO or Sec. 47, Amended IRR
the end-user unit, and the project of RA 9184.
consultants, by consanguinity or
affinity up to the third civil degree.
Failure to comply with the 13. From the TWG report, Did the BAC
aforementioned provision shall be a as reviewed by the BAC, automatically
ground for the automatic the Minutes of BAC disqualify the
disqualification of the bid in meetings/deliberations bidder found to be
consonance with Section 30 of this and BAC Resolution, related within the
IRR. For this reason, relation to the check for information 3rd civil degree of
aforementioned persons within showing the BACs consanguinity or
the third civil degree of decision/action in case of affinity with the
consanguinity or affinity shall violation with the no persons listed in
automatically disqualify the relationship provision. Section 47 of the
bidder from participating Revised IRR of RA
in the procurement of contracts 9184?
of the procuring entity. On the
part of the bidder, this
provision shall apply to the following
persons:
a) If the bidder is an individual or a
sole proprietorship, to the bidder
himself;
b) If the bidder is a partnership, to all
its officers and members;
c) If the bidder is a corporation, to all
its officers, directors, and
controlling stockholders; and
d) If the bidder is a joint venture, the
provisions of items (a), (b), or (c)
of this Section shall
correspondingly apply to each of
the members of the said joint
venture, as may be appropriate.
9. To verify if the BAC 14. Request from the BAC 1. Did the BAC
verified, validated, and Secretariat, for the ascertain the
ascertained sufficiency of the document evidencing that sufficiency of the
bid security as to: the TWG ascertained the bid security as to:
sufficiency of the bid
a. type,
security. a. type?
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Commission on Audit
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
b. amount,
c. form and wording, and b. amount?
d. validity period.
c. form and word?
Implementing Rules and d. validity period?
Regulations (IRR) of RA 9184, as
amended on September 2, 2009:
34.3. The post-qualification shall
verify, validate, and ascertain all
statements made and documents
submitted by the bidder with the
Lowest Calculated Bid, using non-
discretionary criteria, as stated in
the Bidding Documents. These
criteria shall consider, but shall
not be limited to, the following:
a) Legal Requirements
b) Technical Requirements.
i)
ii)
iii)
iv) Ascertainment of the
sufficiency of the bid security
as to type, amount, form and
wording, and validity period;
10. To verify if the BAC 15. From the TWG report Did the BAC verify,
verified, validated, and duly reviewed by the BAC validate, and
ascertained if the Net with supporting ascertain the
Financial Contracting documents from the financial
appropriate authorities requirements of the
Capacity (NFCC) is at least (e.g. certified true copy of LCB as to:
equal to the ABC or the Credit the financial statements
Line Certificate (CLC) in favor with the Income Tax a. CLC at least
of the prospective bidder if Return, bank that issued equal to 10% of
awarded the contract is at the CLC), the Minutes of the ABC.
least 10% of the ABC BAC
meetings/deliberations Or
Implementing Rules and Regulations and BAC Resolution,
(IRR) of RA 9184, as amended on check for information b. NFCC at least
September 2, 2009: showing the bidders: equal to the
34.3. The post-qualification shall ABC?
verify, validate, and ascertain all a. CLC must be at least
statements made and documents equal to 10% of the
submitted by the bidder with the ABC.
Lowest Calculated Bid, using non-
discretionary criteria, as stated in Or
the Bidding Documents. These
criteria shall consider, but shall b. NFCC must be at least
not be limited to, the following: equal to the ABC
a) Legal Requirements .
b) Technical Requirements
c) Financial Requirements
To verify, validate and
ascertain the bid price proposal
of the bidder and, whenever
applicable, the required CLC in
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
the amount specified and over
the period stipulated in the
Bidding Documents, or the
bidders NFCC to ensure that the
bidder can sustain the operating
cash flow of the transaction.
11. To verify if the BAC 16. From the post Did the LCB pass
declared the post-qualified qualification report of the post-qualification?
LCB as the Lowest Calculated TWG, as reviewed by the
Responsive Bid (LCRB) BAC, check if the LCB
passed all the criteria for
Implementing Rules and Regulations post qualification.
(IRR) of RA 9184, as amended on
September 2, 2009: 17. Match the name of Did the BAC
34.4. If the BAC determines that the LCRB as approved by declare the LCB as
the bidder with the Lowest the HOPE with the name the Lowest
Calculated Bid passes all the of bidder as indicated in Calculated
criteria for post-qualification, it the BAC resolution Responsive Bid
shall declare the said bid as the recommending LCRB. (LCRB)?
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Lowest Calculated Responsive Bid,
and recommend to the Head of the
Procuring Entity the award of If Yes, proceed
contract to the said bidder at its to: AWARD OF
submitted bid price or its calculated
CONTRACT.
bid price, whichever is lower, or in
the case of quality-based
evaluation procedure, submitted
bid price or its negotiated price, If No, proceed to
whichever is lower. the Audit Sub-
Objectives in
case of Post-
disqualification
of the bidder
with the LCB.
2. To verify if the BAC 2. Look for the TWG Did the BAC
conducted and completed the report on the post- conduct and
post-qualification of the qualification of the second complete the post-
second rank bidder using the rank bidder as reviewed qualification of the
by the BAC. second rank
same post-qualification bidder?
process adopted for the LCB
3. Repeat the audit Did the TWG adopt
activities of sub-objective the same process
Implementing Rules and Regulations nos.4 to 10 above. of verifying,
(IRR) of RA 9184, as amended on validating and
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
September 2, 2009: 4. Analyze the post- ascertaining all
34.6. the BAC shall initiate and qualification reports of the statements made
complete the same post- TWG, as reviewed by the and documents
qualification process on the bidder BAC, for the LCB and the submitted by the
with the second Lowest Calculated second rank bidder to LCB and the
Bid. check whether the TWG second rank
adopted the same process bidder?
of verifying, validating
and ascertaining all
statements made and
documents submitted by
the LCB and the second
rank bidder.
If No, proceed to
the Audit Sub-
Objectives in
case of Post-
disqualification
of the bidder
with the LCB.
3. To verify if the BAC 6. From the Minutes of Did the BAC
declared the post-qualified the BAC meeting, analyze declare the post-
second-rank bidder as the if the BAC declared the qualified second-
post-qualified second-rank rank bidder as the
LCRB after a request for
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
reconsideration of the LCB bidder as the LCRB after a LCRB after a
(first-rank) has been denied request for request for
reconsideration of the LCB reconsideration of
Implementing Rules and Regulations (first-rank) has been the LCB (first-rank)
(IRR) of RA 9184, as amended on denied. has been denied?
September 2, 2009:
34.6. Immediately after the BAC 7. Match the name of the
has notified the first bidder of its LCRB as approved by the
post-disqualification, and HOPE with the name of
notwithstanding any pending bidder as indicated in the
request for reconsideration BAC resolution
thereof, the BAC shall initiate and recommending the LCRB.
complete the same post-
qualification process on the bidder
with the second Lowest Calculated
Bid. If the second bidder passes
the post-qualification, and
provided that the request for
reconsideration of the first bidder
has been denied, the second
bidder shall be post-qualified as
the bidder with the Lowest
Calculated Responsive Bid.
5. To verify if the BAC invited 10. From the Minutes of Did the BAC choose
Observers: the BAC meeting on the the Observers
a. representing the COA, the selection of the Observer considering:
from the pool, check for
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
specific relevant chamber- information on the BACs a. one
member of the Philippine evaluation in regard to: representing the
Chamber of Commerce and the selection of the COA?
Industry, and a non- organization from
government organization which the Observer b. One
(NGO) from the procuring will be invited; representing the
entitys Pool of Observers; knowledge, experience specific relevant
b. that have: or expertise in chamber-
b.1. knowledge, experience or procurement or in the member of the
expertise in procurement or in subject matter of the Philippine
the subject matter of the contract to be bid; Chamber of
contract to be bid; no actual or potential Commerce and
b.2. no actual or potential conflict of interest in Industry?
conflict of interest in the the contract to be bid;
contract to be bid; and and c. One
conformed with other representing a
b.3. conformed with other
relevant criteria non-government
relevant criteria determined by
determined by the organization?
the BAC;
BAC.
c. at least 3 calendar days d. With
prior to the Post- knowledge,
qualification experience or
expertise in
Implementing Rules and Regulations procurement or
(IRR) of RA 9184, as amended on in the subject
September 2, 2009: matter of the
contract to be
Section 13. Observers
bid?
13.1. To enhance the transparency of
the process, the BAC shall, in all e. With no actual
stages of the or potential
procurement process, invite, in conflict of
addition to the representative of the interest in the
COA, at least two (2) observers, who contract to be
shall not have the right to vote, to sit
bid?
in its proceedings where:
a) At least one (1) shall come from a f. Conformed with
duly recognized private group in a other relevant
sector or discipline relevant to the criteria
procurement at hand, for example: determined by
i) the BAC?
ii) For goods, a specific relevant
chamber-member of the
Philippine Chamber of Commerce
11. From certified copies Did the BAC invite
and Industry.
of the invitations to the the observers at
iii) and
Observers with evidence least 3 days before
b) The other observer shall come
of receipt, compare the the date of the
from a non-government
date of receipt with the 3- post-qualification?
organization (NGO).
day minimum
requirement.
13.2. The observers shall come from
an organization duly registered with
the Securities
and Exchange Commission (SEC) or
the Cooperative Development
Authority (CDA), and should meet the
following criteria:
a) Knowledge, experience or
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
expertise in procurement or in the
subject matter of the contract to
be bid;
b) Absence of actual or potential
conflict of interest in the contract
to be bid; and
c) Any other relevant criteria that
may be determined by the BAC.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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XI. AWARD OF CONTRACT FOR THE PROCUREMENT OF GOODS
A. AUDIT OBJECTIVES:
1. To verify if the conditions and procedures for the award of contract were adhered to by
the procuring entity
3. To verify if the conditions/requirements, procedures and timelines for entering into and
approval of the contract were adhered to by the procuring entity
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Audit Criteria Audit Question Yes No Particulars
Audit Activities
of the
Answer
Single Calculated Responsive LCRB recommended for award bidder with LCRB?
Bid (SCRB), if lone, to the in the BAC Resolution.
HOPE for award
Implementing Rules and Regulations .
(IRR) of RA 9184, as amended on
September 2, 2009:
37.1.1. The BAC shall recommend
to the Head of the Procuring
Entity the award of contract to the
bidder with the Lowest Calculated
Responsive Bid or the Single
Calculated Responsive Bid after
the post qualification process has
been completed.
To facilitate the approval of the
award, the BAC shall submit the
following supporting documents to
the Head of the Procuring Entity:
a) Resolution of the BAC
recommending award;
b) Abstract of Bids;
c) Duly approved program of
work or delivery schedule, and
Cost Estimates;
d) Document issued by
appropriate entity authorizing the
procuring entity to incur
obligations for a specified amount;
and
e) Other pertinent documents
required by existing laws, rules
and/ or the procuring entity
concerned.
2. To verify if the BAC 2. From the BAC Chairmans Did the BAC submit
submitted the following letter for the HOPE submitting the following
documents to the HOPE with the results and the documents documents to the
the recommendation for pertaining to the HOPE with the
recommendation, duly recommendation
award: received by the Office of the for award:
a. Resolution of the BAC HOPE, look for information on
recommending award; the documents submitted. a. Resolution of
b. Abstract of Bids; the BAC
c. Duly approved delivery recommending
schedule and Cost award?
Estimates;
d. Document issued by b. Abstract of
Bids?
appropriate entity
authorizing the procuring c. Duly approved
entity to incur delivery
obligations for a specified schedule and
amount; and Cost
e. Other pertinent Estimates?
documents required by
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Audit Criteria Audit Question Yes No Particulars
Audit Activities
of the
Answer
existing laws, rules and/
or the procuring entity d. Document
concerned issued by
appropriate
Implementing Rules and Regulations entity
(IRR) of RA 9184, as amended on authorizing the
September 2, 2009: procuring
37.1.1. The BAC shall recommend entity to incur
to the Head of the Procuring obligations for
Entity the award of contract to the a specified
bidder with the Lowest Calculated amount?
Responsive Bid or the Single
Calculated Responsive Bid after e. Other pertinent
the post qualification process has documents
been completed. required by
existing laws,
To facilitate the approval of the rules and/or
award, the BAC shall submit the the procuring
following supporting documents to entity
the Head of the Procuring Entity: concerned?
a) Resolution of the BAC
recommending award;
b) Abstract of Bids;
c) Duly approved program of
work or delivery schedule, and
Cost Estimates;
d) Document issued by
appropriate entity authorizing
the procuring entity to incur
obligations for a specified
amount; and
e) Other pertinent documents
required by existing laws, rules
and/ or the procuring entity
concerned.
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Audit Criteria Audit Question Yes No Particulars
Audit Activities
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Answer
recommendation.
5. To verify if the BAC 7. From the notices to the Did the BAC notify
notified all the losing bidders losing bidders, look for the all the losing
within the 7 calendar day date of its receipt and bidders within the 7
period (same period provided compare with the 7-day or 15- calendar day or 15
day requirement. calendar day period
for the HOPE to approve/
(same period
disapprove the BACs
8. Also compare the names of provided for the
Resolution)
the losing bidders notified with HOPE to approve/
Implementing Rules and Regulations those appearing in the disapprove the
(IRR) of RA 9184, as amended on Abstract of Bids as Read. BACs Resolution)?
September 2, 2009:
37.1.2. Within a period not
exceeding seven (7) calendar days
from the date of receipt of the
recommendation of the BAC, the
Head of the Procuring Entity shall
approve or disapprove the said
recommendation. In the case of
GOCCs and GFIs, the period
provided herein shall be fifteen
(15) calendar days. Within the
same period provided herein the
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Audit Criteria Audit Question Yes No Particulars
Audit Activities
of the
Answer
BAC shall notify all losing bidders
of its decision.
6. To verify if the BAC posted 9. Access the PhilGEPS website Did the BAC post
the Notice of Award within 3 and the website of the the Notice of
days from its issuance at the: procuring entity, and conduct Award:
inspection of the area where a. within 3 days
a. PhilGEPS website,
the Notice of Award is to be from its issuance
b. website of the procuring
posted on the 3rd day from the at the PhilGEPS
entity, and issuance of the Notice of website?
c. any conspicuous place in Award to the winning bidder.
the premises of the b. within 3 days
procuring entity. from its issuance
at the website of
Implementing Rules and the procuring
Regulations (IRR) of RA 9184, as entity? And
amended on September 2, 2009:
c. within 3 days
37.1.6. The BAC, through the
from its issuance
Secretariat, shall post, within
at any
three (3) calendar days from its
conspicuous
issuance, the Notice of Award in
place in the
the PhilGEPS, the website of the
premises of the
procuring entity, if any, and any
procuring entity?
conspicuous place in the premises
of the procuring entity.
7. To verify if the procuring 10. From the receiving records Did the bidder
entity observed the following of the BAC, compare the date submit the JVA
conditions for the execution of submission of the Joint within ten (10)
Venture Agreement (JVA) with calendar days from
of the contract:
the required 10 days from receipt of the
a) Submission of valid joint
receipt of the Notice of Award. notice of award?
venture agreement, if
applicable, within 10 11. From the receiving records
days from receipt of the of the BAC, compare the date Was the
Notice of Award by the of posting of the performance performance
winning Joint Venture security with the required 10 security posted
bidder, days from receipt of the Notice within ten (10)
b) Posting of performance of Award; also compare with calendar days from
the date of the signing of the receipt by the
security within ten (10)
contract. winning bidder of
calendar days from the Notice of Award
receipt by the winning 12. Compare the amount, & prior to the
bidder of the Notice of currency, form, issuing entity, signing of the
Award & prior to the and validity period of the contract?
signing of the contract in performance security posted
the required amount, by the winning bidder with the Was the
currency, form, issuing requirements of Sec 39.2 of performance
entity, and valid until the the Revised IRR of RA 9184. security posted in
the:
issuance by the procuring
a. right amount?
entity of the final
certificate of acceptance, b. right currency?
c) Signing of the contract
within the same ten (10) 13. Compare the date of c. right form?
day period provided that signing of the contract with
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Audit Activities
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Answer
all the documentary the required 10-day period d. right issuing
requirements are from receipt of the Notice of entity?
complied with, Award.
d) Approval by higher e. right validity
period?
authority, if required, 14. Compare the signatory
within 15 days from (approval) in the contract with Was the contract
receipt (25 days for the authorized signatory as signed within 10
GOCCs) required by relevant calendar days from
regulations/policies and as receipt of the
Implementing Rules and Regulations shown by a copy of a valid Notice of Award by
(IRR) of RA 9184, as amended on appointment or office order. the winning bidder?
September 2, 2009:
37.1.4. Notwithstanding the If further approval
issuance of the Notice of Award, 15. Compare the date of by higher authority
award of contract shall be subject approval of the contract by is required, was the
to the following conditions: higher authority with the 15- contract approved
a) Submission of the following day-period from receipt (25 by appropriate
documents within the days for GOCCs). approving authority
prescribed period: or his/her duly
i) Valid JVA, if applicable, authorized
within ten (10) calendar representative?
days from receipt by the
bidder of the notice from Was the contract
the BAC that the bidder has approved by higher
the Lowest Calculated authority within 15
Responsive Bid, as the case calendar days?
may be; or (25 calendar days
ii) .. for GOCCs)?
b) Posting of performance
security in accordance with
Section 39 of this IRR;
c) Signing of the contract as
provided in Section 37.2 of
this IRR;
d) Approval by higher authority,
if required, as provided in
Section 37.3 of this IRR.
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Audit Criteria Audit Question Yes No Particulars
Audit Activities
of the
Answer
Form of Amount of
Performance Performance
Security Security (Equal
to Percentage
of the Total
Contract Price
a) Cash, cashiers/
managers check
issued by a
Universal or
Commercial Bank Two percent
b) Bank draft/ (2%)
guarantee or
irrevocable letter of
credit issued by a
Universal or
Commercial Bank;
Provided, however,
that it shall be
confirmed or
authenticated by a
Universal or
Commercial Bank,
if issued by a
foreign bank.
c) Surety bond Five percent
callable upon (5%)
demand issued by
a surety or
insurance company
duly certified by
the Insurance
Commission as
authorized to issue
such security.
d) Any combination Proportionate
of the foregoing. to share of
form with
respect to total
amount of
security
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Audit Activities
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Answer
37.3. Contract Approval by
Higher Authority
When further approval of higher
authority is required, the
approving authority for the
contract or his duly authorized
representative shall be given
maximum of fifteen (15) calendar
days from receipt thereof to
approve or disapprove it.
8. To verify if the BAC 16. From the Minutes of the Did the BAC choose
invited Observers: BAC meeting on the selection the Observers
a. representing the COA, the of the Observer from the considering:
specific relevant chamber- pool, check for information
member of the Philippine on the BACs evaluation in a. one
Chamber of Commerce and regard to: representing the
Industry, and a non- the selection of the COA?
government organization organization from which the
(NGO) from the procuring Observer will be invited; b. One
entitys Pool of Observers; knowledge, experience or representing the
b. that have: expertise in procurement or specific relevant
in the subject matter of chamber-
b.1. knowledge, experience the contract to be bid; member of the
or expertise in procurement or
no actual or potential Philippine
in the subject matter of the
conflict of interest in the Chamber of
contract to be bid;
contract to be bid; and Commerce and
b.2. no actual or potential conformed with other Industry?
conflict of interest in the relevant criteria determined
contract to be bid; and by the BAC. c. One
b.3. conformed with other representing a
relevant criteria determined non-government
by the BAC; organization?
c. at least 3 calendar days
prior to the start of the d. With knowledge,
activity experience or
expertise in
Implementing Rules and Regulations procurement or
(IRR) of RA 9184, as amended on in the subject
September 2, 2009: matter of the
contract to be
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Audit Criteria Audit Question Yes No Particulars
Audit Activities
of the
Answer
Section 13. Observers bid?
13.1. To enhance the transparency
of the process, the BAC shall, in all e. With no actual
stages of the or potential
procurement process, invite, in conflict of
addition to the representative of the interest in the
COA, at least two (2) observers, who contract to be
shall not have the right to vote, to bid?
sit in its proceedings where:
a) At least one (1) shall come from a f. Conformed with
duly recognized private group in a other relevant
sector or discipline relevant to the criteria
procurement at hand, for example: determined by
i) the BAC?
ii) For goods, a specific relevant
chamber-member of the
Philippine Chamber of 17. From certified copies of the Did the BAC invite
Commerce and Industry. invitations to the Observers the observers at
iii) and with evidence of receipt, least 3 days from
b) The other observer shall come compare the date of receipt the date of the bid
from a non-government with the 3-day minimum evaluation?
organization (NGO). requirement.
9. To verify if the Procuring 18. Based on the Minutes of Did the Procuring
Entity considered the BACs meetings and the report Entity consider the
comments/observations of of the Observers check comments/
the Observers whether a deliberation was observations of the
made on the Observers?
Implementing Rules and Regulations comments/observations of the
(IRR) of RA 9184, as amended on observers.
September 2, 2009:
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Audit Activities
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13.4. The observers shall have
the following responsibilities:
a) To prepare the report either
jointly or separately indicating
their observations made on the
procurement activities conducted
by the BAC for submission to the
Head of the Procuring Entity,
copy furnished the BAC
Chairman. The report shall assess
the extent of the BACs
compliance with the provisions of
this IRR and areas of
improvement in the BACs
proceedings;
b) To submit their report to the
procuring entity and furnish a
copy to the GPPB and Office of
the Ombudsman/Resident
Ombudsman. If no report is
submitted by the observer,
then it is understood that the
bidding activity conducted by
the BAC followed the correct
procedure; and
c) To immediately inhibit and notify
in writing the procuring entity
concerned of any actual or
potential interest in the contract
to be bid.
10. To verify if the contract 19. Obtain from the BAC Are the contract
is complete Secretariat or the Project documents
Management Office or the complete,
Implementing Rules and Regulations Office responsible for consisting of the
(IRR) of RA 9184, as amended on following:
project implementation/ a) Contract
September 2, 2009:
contract execution for a Agreement;
37.2.3. The following documents
shall form part of the contract: copy of the complete set of b) Bidding
a) Contract Agreement; documents comprising the Documents;
b) Bidding Documents; contract and compare with c) Winning bidders
c) Winning bidders bid, including the requirements. bid, including the
the Eligibility requirements, Eligibility
Technical and Financial requirements,
Proposals, and all other Technical and
documents/statements Financial
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Audit Activities
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Answer
submitted; Proposals, and all
d) Performance Security; other
e) Credit line in accordance with documents/statem
the provisions of this IRR, if ents submitted;
applicable; d) Performance
f) Notice of Award of Contract; Security;
and e) Credit line in
g) Other contract documents that accordance with
may be required by existing the provisions of
laws and/or the procuring entity this IRR, if
concerned in the Bidding applicable;
Documents, f) Notice of Award
of Contract; and
g) Other contract
documents that
may be required by
existing laws
and/or the
procuring entity
concerned in the
Bidding
Documents, such
as the construction
schedule and S-
curve, manpower
schedule,
construction
methods,
equipment
utilization schedule,
construction safety
and health program
approved by the
Department of
Labor and
Employment, and
PERT/CPM for
infrastructure
projects?
IN CASE OF DISAPPROVAL BY THE HOPE OF THE BACS RECOMMENDATION FOR AWARD
FOR THE PROCUREMENT OF GOODS
1. In case of disapproval by 1. If the HOPE disapproved the In case of
the HOPE, verify if the: recommendation for award, disapproval by the
a. grounds for such were look for the document HOPE of the BACs
expressed in writing and indicating the grounds for such recommendation,
with evidence of receipt of a did the HOPE
a copy furnished to the
copy thereof by the BAC. express the
BAC, and grounds for such
b. written instructions on the and furnished a
subsequent steps to be copy to the BAC?
adopted were given to 2. Also look for the document
the BAC indicating the instructions In case of
given by the HOPE on the disapproval by the
Implementing Rules and Regulations subsequent steps to be HOPE of the BACs
(IRR) of RA 9184, as amended on adopted by the BAC. recommendation,
September 2, 2009: did the HOPE give
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Audit Activities
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Answer
37.1.3. In case of approval, the instructions to the
Head of the Procuring Entity shall BAC on the
immediately issue the Notice of subsequent actions
Award to the bidder with the to be adopted?
Lowest Calculated Responsive
Bid. In the event the Head of the
Procuring Entity shall disapprove
such recommendation, such
disapproval shall be based only on
valid, reasonable, and justifiable
grounds to be expressed in
writing, a copy furnished the BAC.
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Audit Activities
of the
Answer
Regulations (IRR) of RA 9184, as disqualification of the said IRR of RA
amended on September 2, 2009: bidder, 9184 or in the
40.1. If the bidder with the Lowest forfeiture of the bid Bidding
Calculated Responsive Bid/Highest security and Documents?
Rated Responsive Bid or the recommendation of the
bidder with the Single imposition of sanctions to Did the BAC forfeit
Calculated/Rated Responsive Bid, the winning bidder. the bid security of
fails, refuses or is unable to the winning bidder
submit the documents required who, through his
under Section 37.1 of this IRR or fault, failed,
to make good its bid by entering refused or was
into a contract with the procuring unable to:
entity or post the required a. submit the
Performance Security within the documents
period stipulated in this IRR or in required under
the Bidding Documents, the bid Section 37.1 of
security shall be forfeited and the the Revised
appropriate sanctions provided in IRR of RA
this IRR and existing laws shall be 9184?
imposed, except where such or
failure, refusal or inability is b. to make good its
through no fault of the said bid by entering
bidder. into a contract
with the
procuring
entity?
or
c. post the required
Performance
Security within
the period
stipulated in
the Revised
IRR of RA
9184 or in the
Bidding
Documents?
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Audit Activities
of the
Answer
into a contract
with the
procuring
entity?
or
c. post the required
Performance
Security within
the period
stipulated in
the Revised
IRR of RA
9184 or in the
Bidding
Documents?
2. To verify if the BAC, after 2. From the records of the Did the BAC, after
disqualifying the winning BAC, look for information on disqualifying the
bidder who, due to his fault, the disqualification of the winning bidder
refused, failed, or was winning bidder who, due to his who, due to his
fault, refused, failed, or was fault, refused,
unable to enter into contract,
unable to enter into contract, failed, or was
post the required post the required performance unable to enter into
performance security, or security, or submit other contract, post the
submit other required required documents within the required
documents within the time time stipulated. performance
stipulated, initiated and security, or submit
completed the post- Look also for information on other required
qualification process on the the conduct of post- documents within
bidder with the second qualification on the bidder with the time stipulated,
the second Lowest Calculated initiate and
Lowest Calculated Bid
Bid. complete the post-
qualification
Implementing Rules and Regulations process on the
(IRR) of RA 9184, as amended on bidder with the
September 2, 2009: second Lowest
40.2. In the case of the failure, Calculated Bid?
refusal or inability of the bidder NOTE:
with the Lowest Calculated For the audit on the Post-
Responsive Bid/Highest Rated Qualification for the
Responsive Bid to submit the Procurement of Goods
documents required under Section conducted by the BAC,
37.1 of this IRR or to enter into perform the audit activities
contract and post the required pertaining to these
Performance Security, as provided procurement activities in
in this Section, the BAC shall another part of this Guide.
disqualify the said bidder, and
shall initiate and complete the
post-qualification process on the
bidder with the second Lowest
Calculated Bid/
3. To verify if the BAC, after 3. From the records of the Did the BAC, after
disqualifying the winning BAC, look for information on disqualifying the
bidder with the Single the disqualification of the winning bidder with
Calculated Responsive Bid winning bidder with the SCRB the SCRB who, due
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Audit Activities
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Answer
(SCRB) who, due to his fault, who, due to his fault, refused, to his fault,
refused, failed, or was failed, or was unable to enter refused, failed, or
unable to enter into contract, into contract, post the required was unable to enter
post the required performance security, or into contract, post
submit other required the required
performance security, or documents within the time performance
submit other required stipulated. security, or submit
documents within the time other required
stipulated, declared the Look also for information on documents within
bidding a failure and the declaration of the bidding the time stipulated,
conducted a re-bidding with a failure and the conduct of a
re-advertisement and/or re-bidding with re- a. declare the
posting, as provided for in advertisement. bidding a failure?
Sections 21 and 25 of the
and
Revised IRR of RA 9184 b. conduct a re-
bidding with re-
Implementing Rules and Regulations advertisement
(IRR) of RA 9184, as amended on and/or posting?
September 2, 2009:
40.3. In the case of failure, refusal
or inability of the bidder with the
Single Calculated/Rated NOTE:
Responsive Bid to submit the For the audit on the Failure
documents required under Section of Bidding for the
37.1 of this IRR or to enter into Procurement of Goods and on
contract and post the required the Competitive/Public
Performance Security, as provided Bidding for the Procurement
in this Section, the BAC shall of Goods, perform the audit
disqualify the said bidder, and activities pertaining to these
shall declare the bidding a failure procurement activities in
and conduct a re-bidding with re- other parts of this Guide.
advertisement and/or posting, as
provided for in Sections 21 and 25
of this IRR. Should there occur
another failure of bidding after the
conduct of the contracts re-
bidding, the procuring entity
concerned may enter into a
negotiated procurement.
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Audit Criteria Audit Question Yes No Particulars
Audit Activities
of the
Answer
c. etc. AND PENALTIES portion
of this Audit Guide.
and develop appropriate
audit recommendations
NOTE:
Also refer to the OFFENSES
AND PENALTIES portion
of this Audit Guide.
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XII. FAILURE OF BIDDING DECLARED BY THE B.A.C.
FOR THE PROCUREMENT OF GOODS
A. AUDIT OBJECTIVE:
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Answer
1. To verify if the BAC 1. From the Minutes of BAC Did the BAC declare a
declared a failure of bidding meetings and other records, failure of bidding for
for reason that: look for information that: reason that:
a) No bids were received; a) No bids were
a) No bids were received; or
b) All prospective bidders received?
b) All prospective bidders
were declared ineligible;
were declared ineligible; or c) all bids failed to comply b) All prospective
c) All bids failed to comply with all the bid bidders were
with all the bid requirements, declared ineligible?
requirements, or d) all bids failed post-
d) all bids failed post- qualification, or
qualification, or d) the bidder with the Lowest c) All bids failed to
e) the bidder with the Lowest Calculated Responsive Bid comply with all the
refused, without justifiable bid requirements?
Calculated Responsive Bid
cause, to accept the award
refused, without justifiable
of contract, and no award or
cause, to accept the award was made in accordance d) all bids failed post-
of contract, and no award with Section 40 of the RA qualification?
was made in accordance 9184 and Revised IRR.
with Section 40 of the RA or
9184 and Revised IRR e) the bidder with the
Lowest Calculated
Implementing Rules and Regulations . Responsive Bid
(IRR) of RA 9184, as amended on
refused, without
September 2, 2009: justifiable cause, to
35.1. The BAC shall declare the accept the award of
bidding a failure when: contract, and no
a) No bids are received; award was made in
b) All prospective bidders are accordance with
declared ineligible; Section 40 of the RA
c) All bids fail to comply with all the 9184 and Revised
bid requirements or fail post- IRR?
qualification, or, in the case of
consulting services, there is no
successful negotiation; or
d) The bidder with the Lowest
Calculated Responsive Bid/Highest
Rated Responsive Bid refuses,
without justifiable cause, to accept
the award of contract, and no
award is made in accordance with
Section 40 of the Act and this IRR.
2. To verify if the BAC 2. From the minutes of the Did the BAC determine
determined the reason for the BAC meetings held for the the reason for the failed
failed bidding by conducting a purpose, look for information bidding by conducting a
on the review and evaluation mandatory review and
mandatory review and
conducted on the: (a) terms, evaluation of the:
evaluation of the : (b) conditions, (c)
a. terms, specifications, and (d) cost a. terms in the Bidding
b. conditions, estimates and the Documents?
c. specifications, recommendations/decisions
d. cost estimates made possible b. conditions in the
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Answer
in the Bidding Documents revisions/adjustments. Bidding Documents?
3. To verify if the BAC and the 3. From the minutes of the Did the BAC and the
concerned units/officials of BAC meetings held for the concerned units/officials
the procuring entity, revised purpose and other records of of the procuring entity,
the procuring entity, look for revised the following as
the following as a result of
information on the a result of the review
the review and evaluation
revisions/adjustments made on and evaluation
conducted: the (a) terms, (b) conditions, conducted:
a. terms, (c) specifications, (d) ABC and
b. conditions, approvals made thereon. a. terms in the Bidding
c. specifications, Documents?
d. Approved Budget for the
Contract (ABC); b. conditions in the
had them approved; and Bidding Documents?
conducted a re-bidding with
c. specifications in the
re-advertisement and/or
Bidding Documents?
posting
d. cost estimates?
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
4. From the records of the Did the BAC conduct a
35.3. Based on its findings, the BAC look for information on re-bidding?
BAC shall revise the terms, the re-bidding conducted.
conditions, and specifications, and if
necessary, adjust the ABC, subject
to the required approvals, and
conduct a re-bidding with re-
advertisement and/or posting, as
provided for in Section 21.2 of this
IRR
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Answer
4. To verify if the BAC invited 5. From the Minutes of the Did the BAC choose the
Observers: BAC meeting on the selection Observers considering:
a. representing the COA, the of the Observer from the
specific relevant chamber- pool, check for information a. one representing the
member of the Philippine on the BACs evaluation in COA?
Chamber of Commerce and regard to:
Industry, and a non- the selection of the b. One representing the
government organization organization from which the specific relevant
(NGO) from the procuring Observer will be invited; chamber-member of the
entitys Pool of Observers; knowledge, experience or Philippine Chamber of
b. that have: expertise in procurement or Commerce and
in the subject matter of Industry?
b.1. knowledge, experience or
the contract to be bid;
expertise in procurement or in
no actual or potential c. One representing a
the subject matter of the
conflict of interest in the non-government
contract to be bid;
contract to be bid; and organization?
b.2. no actual or potential conformed with other
conflict of interest in the relevant criteria determined d. With knowledge,
contract to be bid; and by the BAC. experience or expertise
b.3. conformed with other in procurement or in the
relevant criteria determined by subject matter of the
the BAC; contract to be bid?
c. at least 3 calendar days
prior to the start of the e. With no actual or
activity potential conflict of
interest in the contract
Implementing Rules and Regulations to be bid?
(IRR) of RA 9184, as amended on
September 2, 2009: f. Conformed with other
relevant criteria
Section 13. Observers
determined by the BAC?
13.1. To enhance the transparency of
the process, the BAC shall, in all
stages of the 6. From certified copies of the Did the BAC invite the
invitations to the Observers observers at least 3
procurement process, invite, in
with evidence of receipt, days from the date of
addition to the representative of the
COA, at least two (2) observers, who compare the date of receipt the bid evaluation?
shall not have the right to vote, to sit with the 3-day minimum
requirement.
in its proceedings where:
a) At least one (1) shall come from a
duly recognized private group in a
sector or discipline relevant to the
procurement at hand, for example:
i)
ii) For goods, a specific relevant
chamber-member of the
Philippine Chamber of Commerce
and Industry.
iii) and
b) The other observer shall come
from a non-government
organization (NGO).
13.2. The observers shall come from
an organization duly registered with
the Securities
and Exchange Commission (SEC) or
the Cooperative Development
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Authority (CDA), and should meet the
following criteria:
a) Knowledge, experience or
expertise in procurement or in the
subject matter of the contract to
be bid;
b) Absence of actual or potential
conflict of interest in the contract
to be bid; and
c) Any other relevant criteria that
may be determined by the BAC.
13.3. Observers shall be invited
at least three (3) calendar days
before the date of the
procurement stage/activity. The
absence of observers will not
nullify the BAC proceedings,
provided that they have been
duly invited in writing.
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Answer
Also determine if appropriate
actions were taken by the
auditee in regard to instances
of non-compliance.
NOTE:
Also refer to the OFFENSES
AND PENALTIES portion
of this Audit Guide.
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XIII. FAILURE OF BIDDING DECLARED BY THE HOPE
FOR THE PROCUREMENT OF GOODS
A. AUDIT OBJECTIVE:
To verify if the conditions/requirements for the declaration of failure of bidding were adhered
to by the procuring entity
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Answer
b.3. among the bidders officers or
themselves, or employees of the
b.4. a bidder and a third procuring entity?
Or
party,
c. there was prima
including any act which facie evidence of
restricts, suppresses or collusion between
nullifies or tends to restrict, the BAC and any
suppress or nullify of the bidders?
competition; or
or d. there was prima
c. the BAC is found to have facie evidence of
failed in following the collusion between
or among the
prescribed bidding
bidders
procedures; themselves?
or Or
d. the award of the contract e. there was prima
will not redound to the facie evidence of
benefit of the GOP, for collusion between
justifiable and reasonable a bidder and a
grounds such as: (i) if the third party?
physical and economic Or
f. there was prima
conditions have significantly
facie evidence of
changed so as to render the
any act which
project no longer restricted,
economically, financially, or suppressed or
technically feasible, as nullified
determined by the Head of competition?
the Procuring Entity; (ii) if or
the project is no longer g. the BAC was
necessary as determined by found to have
failed in following
the Head of the Procuring
the prescribed
Entity; and (iii) if the source
bidding
of funds for the project has procedures?
been withheld or reduced or
through no fault of the h. the award of the
procuring entity. contract will not
redound to the
Implementing Rules and Regulations benefit of the
(IRR) of RA 9184, as amended on GOP, for justifiable
September 2, 2009: and reasonable
Section 41. The Head of the grounds such as
Procuring Entity reserves the right to the physical and
reject any and all bids, declare a economic
failure of bidding, or not award the conditions have
contract in the following situations: significantly
a) If there is prima facie evidence of changed so as to
collusion between appropriate public render the project
officers or employees of the no longer
procuring entity, or between the BAC economically,
and any of the bidders, or if the financially, or
collusion is between or among the technically
bidders themselves, or between a feasible, as
bidder and a third party, including determined by the
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Answer
any act which restricts, suppresses Head of the
or nullifies or tends to restrict, Procuring Entity?
suppress or nullify competition; Or
b) If the BAC is found to have failed in i. the award of the
following the prescribed bidding contract will not
procedures; or redound to the
c) For any justifiable and reasonable benefit of the
ground where the award of the GOP, for justifiable
contract will not redound to the and reasonable
benefit of the GOP, as follows: (i) if grounds such as
the physical and economic the project is no
conditions have significantly changed longer necessary
so as to render the project no longer as determined by
economically, financially, or the Head of the
technically feasible, as determined Procuring Entity?
by the Head of the Procuring Entity; Or
(ii) if the project is no longer j. the award of the
necessary as determined by the contract will not
Head of the Procuring Entity; and redound to the
(iii) if the source of funds for the benefit of the
project has been withheld or GOP, for justifiable
reduced through no fault of the and reasonable
procuring entity. grounds such as
the source of
GPPB Circular 01-2009 dated 20 funds for the
January 2009 project has been
withheld or
Section 4.9
reduced through
Pursuant to Section 41 of the IRR-A no fault of the
of R.A. 9184, the procuring entity procuring entity?
reserves the right to declare a failure
of bidding if the funds/allotment for
the program/project/activity has
been withheld or reduced through
no fault of the procuring entity.
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Answer
EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT
1. To verify the effects of Analyze the instances of non-
instances of non-compliance on compliance to establish the Appropriate Audit Working Papers
the: effects and develop
appropriate audit
a. validity of the procurement recommendations.
activities and outputs
including the validity of the Also determine if appropriate
resulting contract; actions were taken by the
auditee in regard to instances
b. validity of any payment to be of non-compliance.
made on the basis of the
contract;
c. etc.
and develop appropriate audit NOTE:
recommendations Also refer to the OFFENSES
AND PENALTIES portion
Implementing Rules and of this Audit Guide.
Regulations (IRR) of RA 9184, as
amended on September 2, 2009:
13.3. Observers shall be invited at least
three (3) calendar days before the date
of the procurement stage/activity. The
absence of observers will not nullify
the BAC proceedings, provided that
they have been duly invited in
writing.
NOTE:
Also refer to the OFFENSES
AND PENALTIES portion
of this Audit Guide.
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ALTERNATIVE METHODS OF
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On the Procurement Procedures:
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Procurement Procedures:
LIMITED SOURCE BIDDING FOR GOODS
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Limited Source Bidding was in accordance
with the rules and regulations
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
where only a few
b.2. Procurement of major suppliers are
plant components where it known to be
is deemed advantageous to available, such
limit the bidding to known that resorting to
qualified bidders in order the public bidding
to maintain uniform quality method will not
and performance of the likely result in any
additional
plant as a whole;
suppliers or
consultants
Implementing Rules and Regulations participating in the
(IRR) of RA 9184, as amended on bidding?
September 2, 2009:
48.2. In accordance with Section 10 or
of this IRR, as a general rule, the
Procuring Entities shall adopt public b. Procurement of
bidding as the general mode of major plant
procurement and shall see to it that components where
the procurement program allows it is deemed
sufficient lead time for such public advantageous to
bidding. Alternative methods shall be limit the bidding to
resorted to only in the highly known qualified
exceptional cases provided for in this bidders in order to
Rule. maintain uniform
quality and
48.3. The method of procurement to performance of
be used shall be as indicated in the the plant as a
Approved Procurement Plan (APP). If whole?
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
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Commission on Audit
Republic of the Philippines Page 182
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
result in any additional suppliers
participating in the bidding; or
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
13.3. Observers shall be invited at least
three (3) calendar days before the date of
the procurement stage/activity. The
absence of observers will not nullify the
BAC proceedings, provided that they
have been duly invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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LIMITED SOURCE BIDDING FOR GOODS
II. BIDDING DOCUMENTS
NOTE:
Since the requirement of regulations is for the Procuring Entity to prepare the Bidding
Documents including the Invitation to Bid (indicating therein the method of procurement to
be used) and the technical specifications, in accordance with the procedures in the IRR, the
Generic Procurement Manual and the Philippine Bidding Documents (PBDs), the audit
pertaining to Bidding Documents shall be as indicated in the Audit Guide for Bidding
Documents in Competitive/Public Bidding for Goods.
Audit Criteria:
49.4. The BAC of the concerned procuring entity shall directly invite all the suppliers appearing in the pre-
selected list. All other procedures for competitive bidding shall be undertaken, except for the
advertisement of Invitation to Bid under Section 21.2.1 of the Revised IRR of RA 9184.
NOTE:
Since the requirement of regulations is for the Procuring Entity to conduct Pre-Procurement
Conference in accordance with the procedures in the IRR, the Generic Procurement Manual
and the Philippine Bidding Documents (PBDs), the audit pertaining to Pre-Procurement
Conference shall be as indicated in the Audit Guide for Pre-Procurement Conference in
Competitive/Public Bidding for Goods.
Audit Criteria:
49.4. The BAC of the concerned procuring entity shall directly invite all the suppliers appearing in the pre-selected list.
All other procedures for competitive bidding shall be undertaken, except for the advertisement of Invitation to Bid
under Section 21.2.1 of the Revised IRR of RA 9184.
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LIMITED SOURCE BIDDING FOR GOODS
IV. POSTING OF THE INVITATION TO BID
NOTE:
Since the requirement of regulations is for the Procuring Entity to post the Invitation to Bid in
accordance with the procedures in the IRR, the Generic Procurement Manual and the
Philippine Bidding Documents (PBDs), the audit pertaining to posting of the Invitation to Bid
shall be as indicated in the Audit Guide for posting of the Invitation to Bid in
Competitive/Public Bidding for Goods.
Audit Criteria:
49.4. The BAC of the concerned procuring entity shall directly invite all the suppliers appearing in the pre-selected list.
All other procedures for competitive bidding shall be undertaken, except for the advertisement of Invitation to Bid
under Section 21.2.1 of the Revised IRR of RA 9184.
A. AUDIT OBJECTIVES
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
c. took into account use of the list and
capabilities with respect to consideration of capabilities b. took into
personnel, and experience in the pre- account
d. took into account selection process. experience and
past
capabilities with respect to
performance on
equipment or similar
manufacturing facilities, contracts?
e. took into account
capabilities with respect to c. took into
financial position account
in the pre-selection of capabilities with
suppliers respect to
personnel?
Implementing Rules and Regulations
d. took into
(IRR) of RA 9184, as amended on
account
September 2, 2009:
capabilities with
49.2. The pre-selected suppliers
respect to
shall be those appearing in a list
equipment or
maintained by the relevant
manufacturing
government authority that has
facilities?
expertise in the type of procurement
concerned. The list of pre-selected
e. took into
suppliers shall be updated
account
periodically. A copy of the list shall
capabilities with
be submitted to, and maintained
respect to
updated with, the GPPB.
financial
position?
49.3. The pre-selection shall be
based upon the capability and
resources of the bidders to perform
the contract taking into account their
experience and past performance on
similar contracts, capabilities with
respect to personnel, equipment or
manufacturing facilities, and
financial position. Pre-selection shall
be done in accordance with the
procedures provided in the GPMs.
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
The following steps are followed in
conducting a limited source bidding:
1.
2.
3. The BAC, through the Secretariat
gets the list of pre-selected
suppliers from the government
authority that has expertise in the
type of procurement at hand. It
may also access the PhilGEPS
website as a secondary source of
information.
4.
5.
6.
7.
2. To verify if the BAC sent 2. Compare the names of Did the BAC send
invitations to bid to all the suppliers per copies of invitations to bid to
pre-selected suppliers invitations to bid duly all the pre-selected
received by them with the suppliers?
suppliers in the list of pre-
Implementing Rules and Regulations
selected suppliers.
(IRR) of RA 9184, as amended on
September 2, 2009:
49.4. The BAC of the concerned
procuring entity shall directly invite
all the suppliers appearing in the
pre-selected list.
3. To verify if the BAC 3. Ahead of any procurement, Did the BAC post
Secretariat post the request the BAC Secretariat for the Invitation to
invitation to bid in: advance information on the Bid continuously in
first day of any posting. the:
a. The PhilGEPS,
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
b. the website of the
procuring entity, 4. On the first day of posting 1. PhilGEPS
c. electronic procurement access the PhilGEPS website, website for 7
service provider, if any, the website of the procuring calendar days
entity concerned, if available, starting on the
for a period of 7 calendar
and website prescribed by the date of
days prior to the opening of foreign government/ foreign or advertisement?
the bids international financing
institution, if applicable. Print 2. website of the
Implementing Rules and Regulations the page where the notice was procuring entity
(IRR) of RA 9184, as amended on posted (to form part of the concerned, if
September 2, 2009: audit evidences). available, for 7
6.2. Once issued by the GPPB, the calendar days
use of the Generic Procurement 5. Access the websites at starting on the
Manuals (GPMs), Philippine Bidding random during the 7-day date of
Documents (PBDs), and other period to verify the postings. advertisement?
standard forms shall be mandatory
upon all Procuring Entities. However, 3. website
whenever necessary, to suit the prescribed by the
particular needs of the procuring foreign
entity, modifications may be made, government/
particularly for major and specialized foreign or
procurement, subject to the international
approval of the GPPB. financing
institution, if
Manual of Procedures for the applicable, for 7
Procurement of Goods and Services, calendar days
Volume 2 starting on the
The following steps are followed in date of
conducting a limited source bidding: advertisement?
4. To verify if the BAC 6. Ahead of any procurement, Did the BAC post
Secretariat post the request the BAC Secretariat for the Invitation to
invitation to bid in any advance information on the Bid continuously at
conspicuous place in the first day of any posting. any conspicuous
place reserved for
premises of the procuring
7. Conduct ocular inspection the purpose in the
entity for a period of 7 on the first day of posting. premises of the
calendar days prior to the procuring entity for
opening of the bids 8. Repeat the ocular 7 calendar days, as
inspections (may be at certified by the
Implementing Rules and Regulations random) during the 7-day head of the BAC
(IRR) of RA 9184, as amended on period to verify the postings. Secretariat of the
September 2, 2009: procuring entity?
6.2. Once issued by the GPPB, the 9. Request for the certification
use of the Generic Procurement of the head of the BAC
Manuals (GPMs), Philippine Bidding Secretariat
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Documents (PBDs), and other
standard forms shall be mandatory
upon all Procuring Entities. However,
whenever necessary, to suit the
particular needs of the procuring
entity, modifications may be made,
particularly for major and specialized
procurement, subject to the
approval of the GPPB.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
2. To verify the causes of Analyze the instances of non-
instances of non-compliance compliances to establish the Appropriate Audit Working Papers
and develop appropriate cause(s) and develop
audit recommendations appropriate audit
recommendations.
NOTE:
Also refer to the OFFENSES
AND PENALTIES portion
of this Audit Guide.
NOTE:
Since the requirement of regulations is for the Procuring Entity to undertake all
other procedures for competitive bidding, except for the advertisement of Invitation
to Bid, the audit pertaining to other phases/activities in Limited Source Bidding
shall be as indicated in the Audit Guide for Competitive/Public Bidding for Goods.
Audit Criteria:
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7. The BAC proceeds with the pre-bid conference (if deemed warranted under the
circumstances), eligibility check, bid evaluation, post-qualification and succeeding
activities up to contract award, signing and approval, following the procedures for
competitive bidding.
49.4. The BAC of the concerned procuring entity shall directly invite all the
suppliers appearing in the pre-selected list. All other procedures for competitive
bidding shall be undertaken, except for the advertisement of Invitation to Bid
under Section 21.2.1 of the Revised IRR of RA 9184.
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission
of bid securities may be dispensed with.
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On the Procurement Procedures:
DIRECT CONTRACTING
FOR GOODS
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Procurement Procedures:
DIRECT CONTRACTING FOR GOODS
A. AUDIT OBJECTIVE:
To verify if the adoption of Direct Contracting was in accordance with the rules and
regulations
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
source, i.e. when patents, be obtained only
trade secrets, and from the
copyrights prohibit proprietary source,
i.e. when patents,
others from
trade secrets, and
manufacturing the same
copyrights prohibit
item; or others from
b.2. the procurement manufacturing the
same item?
involves critical plant
components from a b. the patent,
specific supplier and is a copyright and
condition precedent to other evidences of
hold a contractor to propriety?
guarantee its project
performance, in or
accordance with the c. the procurement
provisions of its contract; involves critical
plant components
or
from a specific
b.3. the item to be procured
supplier and is a
is sold by an exclusive condition
dealer or manufacturer precedent to hold
which does not have sub- a contractor to
dealers selling at lower guarantee its
prices and for which no project
suitable substitute can be performance, in
obtained at more accordance with
the provisions of
advantageous terms to
its contract?
the GOP.
or
Implementing Rules and Regulations d. the item to be
(IRR) of RA 9184, as amended on procured is sold by
September 2, 2009: an exclusive dealer
48.1. Subject to the prior approval or manufacturer
of the Head of the Procuring Entity, which does not
and whenever justified by the have sub-dealers
conditions provided in this Act, the selling at lower
procuring entity may, in order to prices and for
promote economy and efficiency, which no suitable
resort to any of the alternative substitute can be
methods of procurement provided obtained at more
in this Rule. In all instances, the advantageous
procuring entity shall ensure that terms to the GOP?
the most advantageous price for
the Government is obtained.
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
public bidding. Alternative methods
shall be resorted to only in the
highly exceptional cases provided
for in this Rule.
a) Procurement of goods of
proprietary nature which can be
obtained only from the proprietary
source, i.e. when patents, trade
secrets, and copyrights prohibit
others from manufacturing the
same item;
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
3. To verify if the BAC: 3. From the BAC Resolution Did the BAC
a. recommended the recommending Direct recommend the
alternative mode of Contracting as the method alternative mode of
of procurement, look for procurement: Direct
procurement: Direct
the approval of the HOPE. Contracting to the
Contracting to the HOPE,
HOPE?
and
b. the HOPE approved the
method of procurement Did the HOPE
approve Direct
Implementing Rules and Regulations Contracting as the
(IRR) of RA 9184, as amended on method of
September 2, 2009: procurement?
48.1. Subject to the prior approval
of the Head of the Procuring Entity,
and whenever justified by the
conditions provided in this Act, the
procuring entity may, in order to
promote economy and efficiency,
resort to any of the alternative
methods of procurement provided
in this Rule. In all instances, the
procuring entity shall ensure that
the most advantageous price for
the Government is obtained.
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
recommendations
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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II. BIDDING DOCUMENTS
NOTE:
The regulations provide that the method of procurement does not require elaborate
Bidding Documents.
Audit Criteria:
50. Direct Contracting or single source procurement is a method of procurement of
goods that does not require elaborate Bidding Documents. The supplier is simply
asked to submit a price quotation or a pro-forma invoice together with the
conditions of sale. The offer may be accepted immediately or after some
negotiations.
A. AUDIT OBJECTIVE
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Audit Criteria Audit Activities Audit Question Yes No Particulars of the
Answer
2. To verify if the 2. From the documentation Did the Procuring
Procuring Entity of the evaluation conducted Entity evaluate and
evaluated and accepted by the procurement unit, accept the offer
the offer based on pre- look for information on the based on pre-
evaluation conducted and established criteria
established criteria and
the decisions made. and procedures?
procedures
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Audit Criteria Audit Activities Audit Question Yes No Particulars of the
Answer
recommendations recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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On the Procurement Procedures:
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Procurement Procedures:
REPEAT ORDER FOR GOODS
Repeat Order, when provided for in the APP, is a method of procurement of goods from the
previous winning bidder, whenever there is a need to replenish goods procured under a contract
previously awarded through Competitive Bidding.
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Repeat Order was in accordance with the
rules and regulations
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
purchase orders, as provided prices are still the
for in Section 54.1 of the most advantageous
Revised IRR of RA 9184; to the GOP after price
verification?
e. Except in cases duly
approved by the GPPB, the
repeat order was availed of Did the BAC validate
only within six (6) months that repeat order will
from the contract effectivity not result in splitting
date stated in the Notice to of contracts,
Proceed arising from the requisitions, or
original contract; purchase orders?
and
f. The repeat order did NOT
Did the BAC validate
exceed twenty-five percent
that except in cases
(25%) of the quantity of duly approved by the
each item in the original GPPB, the repeat
contract. order was availed of
only within six (6)
Implementing Rules and Regulations months from the
(IRR) of RA 9184, as amended on contract effectivity
September 2, 2009: date stated in the
48.1. Subject to the prior approval Notice to Proceed
of the Head of the Procuring Entity, arising from the
and whenever justified by the original contract?
conditions provided in this Act, the
procuring entity may, in order to
promote economy and efficiency, Did the BAC validate
resort to any of the alternative that the repeat order
methods of procurement provided did NOT exceed
in this Rule. In all instances, the twenty-five percent
procuring entity shall ensure that (25%) of the quantity
the most advantageous price for of each item in the
the Government is obtained. original contract?
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
through Competitive Bidding.
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
instances of non-compliance on non-compliance to Appropriate Audit Working Papers
the: establish the effects and
develop appropriate audit
a. validity of the procurement recommendations.
activities and outputs
including the validity of the Also determine if
resulting contract; appropriate actions were
taken by the auditee in
b. validity of any payment to be regard to instances of
made on the basis of the non-compliance.
contract;
c. etc.
NOTE:
and develop appropriate audit Also refer to the
recommendations OFFENSES AND
Implementing Rules and PENALTIES portion
Regulations (IRR) of RA 9184, as of this Audit Guide.
amended on September 2, 2009:
13.3. Observers shall be invited at least
three (3) calendar days before the date
of the procurement stage/activity. The
absence of observers will not nullify
the BAC proceedings, provided that
they have been duly invited in
writing.
2. To verify the causes of Analyze the instances of
instances of non-compliance non-compliances to Appropriate Audit Working Papers
and develop appropriate audit establish the cause(s) and
develop appropriate audit
recommendations
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the results Prepare the appropriate
of the audit with the auditees audit/ validation document Audit Observation Memorandum (AOM), if
Management reflecting the results of applicable
the audit/validation and
COA Circular No. 2009-006 dated transmit to Management
September 15, 2009 re- Prescribing
the Use of the Rules and Regulations
on Settlement of Accounts
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On the Procurement Procedures:
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Procurement Procedures:
SHOPPING FOR GOODS
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Shopping was in accordance with the rules
and regulations
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
Procurement Service; immediate
b.3. the amounts involved did purchase?
not exceed the thresholds
or
in Annex H of the
b. procurement of
Revised IRR of RA 9184,
ordinary or regular
c. that there is no splitting.
office supplies and
equipment not
Implementing Rules and Regulations available in the
(IRR) of RA 9184, as amended on
Procurement
September 2, 2009: Service?
48.3. The method of procurement to Or
be used shall be as indicated in the c. the amounts
Approved Procurement Plan (APP). If involved did not
the original mode of procurement exceed the
recommended in the APP was public thresholds in
bidding but cannot be ultimately Annex H of the
pursued, the BAC, through a Revised IRR of RA
Resolution, shall justify and 9184?
recommend the change in the mode
of procurement to be approved by Did the BAC validate
the HOPE. that there is no
splitting?
52.1. Shopping is a method of
procurement of goods whereby the
procuring entity simply requests for
the submission of price quotations for
readily available off-the-shelf goods
or ordinary/regular equipment to be
procured directly from suppliers of
known qualifications. This method of
procurement shall be employed in
any of the following cases:
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
are necessary in the transaction of its
official businesses, and consumed in
the day-to-day operations of said
procuring entity. However, office
supplies shall not include services
such as repair and maintenance of
equipment and furniture, as well as
trucking, hauling, janitorial, security,
and related or analogous services.
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT
1. To verify the effects of Analyze the instances of
instances of non-compliance on non-compliance to Appropriate Audit Working Papers
the: establish the effects and
develop appropriate audit
a. validity of the procurement recommendations.
activities and outputs
including the validity of the Also determine if
resulting contract; appropriate actions were
taken by the auditee in
b. validity of any payment to be regard to instances of
made on the basis of the non-compliance.
contract;
c. etc. NOTE:
and develop appropriate audit Also refer to the
recommendations OFFENSES AND
PENALTIES portion of
Implementing Rules and Regulations this Audit Guide.
(IRR) of RA 9184, as amended on
September 2, 2009:
13.3. Observers shall be invited at least
three (3) calendar days before the date of
the procurement stage/activity. The
absence of observers will not nullify the
BAC proceedings, provided that they
have been duly invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
3. To communicate the results of Prepare the appropriate
the audit with the auditees audit/ validation document Audit Observation Memorandum (AOM), if
Management reflecting the results of applicable
the audit/validation and
COA Circular No. 2009-006 dated transmit to Management
September 15, 2009 re- Prescribing the
Use of the Rules and Regulations on
Settlement of Accounts
A. AUDIT OBJECTIVE
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
September 2, 2009:
1. . . .
2. . . .
3. Procedural Guidelines
c. The Request for Quotation
(RFQ) shall be sent to at least
three (3) suppliers of known
qualifications. However, during
unforeseen contingencies
requiring immediate purchase
under Section 52.1 (a) of the
IRR, the RFQ may be sent to
only one (1) supplier.
1. . . .
2. . . .
3. Procedural Guidelines
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the Answer
d. RFQs shall also be posted for
a period of seven (7) calendar
days in the Philippine
Government Electronic
Procurement System (PhilG-
EPS) website, website of the
procuring entity, if available,
and at any conspicuous place
reserved for this purpose in the
premises of the procuring
entity. However, in the following
instances, the posting
requirement shall not be
applicable:
i. When there is an unforeseen
contingency requiring
immediate purchase under
Section 52.1(a) of the IRR; or
ii. RFQs with ABCs equal to
Fifty Thousand Pesos (Php
50,000.00) and below.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Guidelines for Shopping and Small the evaluation of price conditions stated in
Value Procurement covered by GPPB quotations conducted by the the RFQ?
Resolution No. 09-2009, dated 23 procuring entity, look for the
November 2009: verification on the compliance
with the specifications and
1. . . . other terms and conditions
2. . . . stated in the RFQ.
3. Procedural Guidelines
h. Award of contract shall be
made to the lowest quotation
for goods which complies with
the specifications and other
terms and conditions stated in
the RFQ.
5. For procurement with and 9. Ahead of the procurement, Did the procuring
ABC of more than request the procuring entity entity post the
P50,000.00, To verify if the for advance information on the notice of award in:
procuring entity posted the schedule of any posting.
a. the PhilGEPS?
notice of award in:
10. Access the PhilGEPS
a. the PhilGEPS, website, the website of the b. the website of
b. the website of the procuring entity concerned, if the procuring
procuring entity, if available and print the page entity?
available where the notice was posted
c. any conspicuous place in (to form part of the audit c. any
the premises of the evidences). conspicuous
procuring entity place in the
11. Conduct ocular inspection premises of
on the schedule of posting. the procuring
Guidelines for Shopping and Small
entity?
Value Procurement covered by GPPB
Resolution No. 09-2009, dated 23
November 2009:
1. . . .
2. . . .
3. Procedural Guidelines
i. For information purposes, all
awards shall be posted in the
PhilG-EPS website, website of
the procuring entity, if available,
and at any conspicuous place
reserved for this purpose in the
premises of the procuring entity
except for those with ABCs
equal to Fifty Thousand Pesos
(Php 50,000.00) and below.
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
activities and outputs
including the validity of the Also determine if appropriate
resulting contract; actions were taken by the
auditee in regard to instances
b. validity of any payment to of non-compliance.
be made on the basis of
the contract;
NOTE:
c. etc.
Also refer to the
and develop appropriate OFFENSES AND
audit recommendations PENALTIES portion of
this Audit Guide.
Implementing Rules and
Regulations (IRR) of RA 9184, as
amended on September 2, 2009:
13.3. Observers shall be invited at
least three (3) calendar days before
the date of the procurement
stage/activity. The absence of
observers will not nullify the BAC
proceedings, provided that they
have been duly invited in
writing.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Other criteria:
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
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On the Procurement Procedures:
NEGOTIATED PROCUREMENT
OF GOODS
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Procurement Procedures:
NEGOTIATED PROCUREMENT OF GOODS
AFTER TWO (2) FAILED BIDDINGS
It is resorted after two failed biddings (where there has been failure of public bidding
for the second time) or in any of the following cases:
a. Emergency Cases,
b. Agency-to-Agency,
c. Procurement Agent,
d. Defense Cooperation Agreement,
e. Small-Value Procurement,
f. NGO Participation
g. United Nations Agencies.
The maintenance of the Registry of Suppliers is a continuing activity of the Procuring Entity,
through its Procurement Unit.
A. AUDIT OBJECTIVE
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Answer
EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT
1. To verify the effects of Analyze the instances of
instances of non-compliance non-compliance to establish Appropriate Audit Working Papers
on the: the effects and develop
appropriate audit
a. validity of the procurement recommendations.
activities and outputs
including the validity of the Also determine if
resulting contract; appropriate actions were
taken by the auditee in
b. validity of any payment to regard to instances of non-
be made on the basis of compliance.
the contract;
c. etc.
and develop appropriate
audit recommendations
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
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NEGOTIATED PROCUREMENT OF GOODS
AFTER TWO (2) FAILED BIDDINGS
Bidding documents are documents issued by the Procuring Entity to provide prospective
bidders all the necessary information that they need to prepare their bids.
A. AUDIT OBJECTIVE:
2. To verify if the Bidding Documents for the specific procurement followed the standard
forms and manuals prescribed by the Government Procurement Policy Board (GPPB)
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Section 35 of this IRR, the
BAC shall revise and agree
on the minimum technical
specifications, and if
necessary, adjust the ABC, 3. From the minutes of the Did the BAC revise
subject to the required BACs meetings and BAC and agree on the:
approvals. However the Resolutions, look for
ABC cannot be increased by information on the a. minimum technical
more than twenty percent deliberation, revision and specifications?
(20%) of the ABC for the agreement on the minimum
last failed bidding. technical specifications and b. Revised ABC?
adjusted ABC; and
recommendation to the
HOPE for approval. Did the BAC submit
the revised minimum
technical
specifications to the
HOPE for approval?
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
a. Approved Budget for If the customized comprising the
the Contract; Bidding Documents are not bid/ proposal?
b. Request for compliant, compare the
Submission of Price procurement-specific Bidding - criteria for
Documents with the eligibility?
Quotations;
Philippine Bidding
c. Eligibility Documents for the - Price quotations
Requirements; Procurement of Goods evaluation
d. Instruction to Bidders, issued by the GPPB. methodology/
including scope of bid/ criteria?
proposal, documents
comprising the bid/ - post-
proposal, criteria for qualification
methodology?
eligibility, price
quotations evaluation - date of the pre-
methodology/criteria bid conference,
in accordance with the if applicable?
Act, and post-
qualification, as well - time of the pre-
as the date, time and bid conference?
place of the pre-bid
conference (where - Place of the
pre-bid
applicable),
conference?
submission and
opening of price - Deadline for
quotations; submission of
d.1. including: price
Following quotations?
completion of the
negotiations, the - Place of
BAC shall request submission of
price
all suppliers
quotations?
remaining in the
proceedings to - Date of opening
submit on a of price
specified date, a quotations?
best and final offer
with respect to all - Time of opening
aspects of the of price
proposals, and quotations?
d.2. selection of the
- Place of opening
successful offer on of price
the basis of such quotations?
best and final offers
meeting the - following
minimum technical completion of
requirements and the
not exceeding the negotiations,
ABC; requesting all
e. Scope of work, where suppliers
remaining in the
applicable;
proceedings to
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
f. Plans/Drawings and submit on a
Technical specified date, a
Specifications; best and final
g. Form of Bid, Price offer with
respect to all
Form, and List of
aspects of the
Goods; proposals?
h. Delivery Time or
Completion Schedule; - selection of the
i. Form, Amount, and successful offer
Validity of on the basis of
Performance Security such best and
and Warranty; final offers
meeting the
j. Form of Contract and
minimum
General and Special technical
Conditions of requirements
Contract; and not
exceeding the
Implementing Rules and
ABC?
Regulations (IRR) of RA 9184, as
amended on September 2, 2009:
e. Scope of work?
17.1. The Bidding Documents
shall be prepared by the
f. Plans/Drawings
procuring entity following the
and Technical
standard forms and manuals
Specifications?
prescribed by the GPPB.
a. Approved Budget for the
g. Form of Bid, Price
Contract;
Form, and List of
b. Invitation to Bid;
Goods?
c. Eligibility Requirements;
d. Instruction to Bidders,
h. Delivery Schedule
including scope of bid,
or Completion
documents comprising the
Schedule?
bid, criteria for eligibility, bid
evaluation
i. Form, Amount,
methodology/criteria in
and Validity of
accordance with the Act,
Performance
and post-qualification, as
Security and
well as the date, time and
Warranty
place of the pre-bid
conference (where
j. Form of Contract
applicable), submission of
and General and
bids and opening of bids;
Special Conditions
e. Scope of work, where
of Contract?
applicable;
f. Plans/Drawings and
Technical Specifications; Are the Bidding
g. Form of Bid, Price Form, Documents in the
and List of Goods; required form:
h. Completion Schedule;
a. Request for
i. Form, Amount, and Validity
Period of Bid Security; Submission of
[REVISED BY the Revised IRR Price Quotation?
of RA 9184, item 54.4. Except
for Limited Source Bidding b. Instructions to
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
under Section 49 of this IRR, Bidders?
submission of bid securities
may be dispensed with.] c. Price Quotation
j. Form, Amount, and Validity Data Sheet?
of Performance Security and
Warranty; d. General Conditions
[Also per Revised IRR of RA of the Contract?
9184, Section 54.5.
Performance and warranty e. Special Conditions
securities, as prescribed in of Contract?
Sections 39 and 62 of this
IRR, f. Schedule of
shall be submitted for Requirements?
contracts acquired through
the alternative methods of g. Technical
procurement, except for Specifications?
Shopping under Section 52
and Negotiated h. Price Quotation
Procurement under Forms?
Sections 53.2 (emergency
cases), 53.9 (small value
procurement), 53.10 (lease
of real property), and 53.13
(UN agencies).]
and
k. Form of Contract and
General and Special
Conditions of Contract.
53.1.4. Following completion
of the negotiations, the
procuring entity shall request
all suppliers, contractors, or
consultants remaining in the
proceedings to submit, on a
specified date, a best and
final offer with respect to all
aspects of their proposals.
53.1.5. The procuring entity
shall select the successful
offer on the basis of such
best and final offers which
should meet the procuring
entitys minimum technical
requirements and should not
exceed the ABC.
GPPB Resolution No. 05-
2009 dated 30 September
2009:
all branches, agencies,
departments, bureaus, offices
and instrumentalities of the
Government, including
government-owned and/or
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
controlled corporations,
government financial
institutions, state universities
and college, and local
government units, are hereby
mandated to use the
Philippine Bidding Documents
Third Edition for all of their
procurement activities.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
The pre-procurement conference is the forum where all officials involved in the
procurement meet and discuss all aspects of a specific procurement activity, which includes the
technical specifications, the Approved Budget for the Contract (ABC), the applicability and
appropriateness of the recommended method of procurement and the related milestones, the
bidding documents, and availability of the pertinent budget release for the project.
A. AUDIT OBJECTIVES:
1. To verify if the Pre-Procurement Conference was conducted within the required time;
3. To verify if during the Pre-Procurement Conference the participants, led by the Bids and
Awards Committee (BAC), performed the required tasks and attained the objectives of
the Conference.
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Audit Criteria
the Answer
1. To verify if the BAC conducted 1. Secure from the BAC Did the BAC
the Pre-Procurement Conference Secretariat a duly certified conduct the Pre-
prior to the posting or the copy of the Minutes of Pre- Procurement
issuance of the Invitation or Procurement Conference and Conference prior
compare the date the to the posting or
Request for Submission of Price conference was held with the issuance of the
Quotation date indicated in the print-out Invitation or
of website pages where the Request for
Implementing Rules and Regulations Invitation or Request for Submission of
(IRR) of RA 9184, as amended on Submission of Price Quotation Price Quotation?
September 2, 2009: was posted.
20.1. Prior to the Advertisement or the
issuance of the Invitation to Bid for
each procurement undertaken through
public bidding, the BAC, through its
Secretariat shall call for a Pre-
Procurement Conference.
2. To verify if the participants to 2. Secure from the BAC Did the
the Pre-Procurement Conference Secretariat duly certified participants to
included the BAC, the copies of the documents the Pre-
Secretariat, the unit or officials, (Office Orders, contracts, Procurement
Organizational/Functional Conference
including consultants hired by
Charts, etc) which it used as include the:
the procuring entity, who bases for identifying and
prepared the Bidding Documents notifying the participants to a. BAC?
and the draft Invitation to Bid the Pre-Procurement
Conference, including duly b. Secretariat?
Implementing Rules and Regulations certified copies of the notices
(IRR) of RA 9184, as amended on issued with evidence of receipt c. unit or
September 2, 2009: by the participants. officials who
20.1. The pre-procurement prepared the
conference shall be attended by the 3. From the Minutes of Pre- Bidding
BAC, the Secretariat, the unit or Procurement Conference look Documents
officials, including consultants hired by for the names of the members and the draft
the procuring entity, who prepared the of the BAC, the members of Invitation to
Bidding Documents and the draft the Secretariat, the officials Bid?
Invitation to Bid, for each procurement. and/or consultants who
prepared the Bidding d. consultants
Documents and the draft hired by the
Invitation to Bid. procuring
entity, who
prepared the
Bidding
Documents
and the draft
Invitation to
Bid?
3. To verify if during the Pre- 4. From the Minutes of Pre- Did the
Procurement Conference the Procurement Conference look participants led
participants, led by the BAC, for information on the by the BAC
performed the following tasks presentation of the scope of discuss and
the contract, the ABC, and confirm the:
and attained the related
contract duration, the
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
objectives: deliberation thereon, and the a. Description of
conclusions reached as a result the scope of
a. Discussed relevant of the deliberation; and the contract?
information and confirmed the analyze if they led to the
description of the scope of the confirmation of the description b. That there
contract, the ABC, and contract of the scope of the contract, was no
duration; that there was no splitting, the splitting?
ABC, and the contract
b. Discussed relevant duration. c. ABC?
information and confirmed that
the procurement is in accordance d. Contract
with the project procurement duration?
management plan (PPMP) and
5. From the Minutes of Pre- Did the
annual procurement plan (APP);
Procurement Conference look participants led
c. Discussed relevant for information on the by the BAC
information and confirmed presentation of the review of discuss and
the PPMP and APP, the confirm that the
readiness of the procurement at
deliberation thereon, and the procurement is in
hand on the following: conclusions reached as a result accordance with
c.1. the availability of of the deliberation; and the PPMP and
appropriations and analyze if they led to the APP?
programmed budget for confirmation of the
contract; procurement is in accordance
c.2. completeness of the with the PPMP and APP.
Bidding Documents and their
adherence to relevant general 6. From the Minutes of Pre- Did the
procurement guidelines; Procurement Conference look participants led
for information on the by the BAC
d. Reviewed, modified and presentation of information, discuss and
agreed on the criteria for the deliberation thereon, and confirm that the
the conclusions reached as a procurement at
eligibility screening, evaluation,
result of the deliberation; and hand is ready as
and post-qualification; analyze if they led to the to:
f. Reviewed and adopted the confirmation of the readiness
of the procurement at hand as a. availability of
procurement schedule, including
to: appropriations
deadlines and timeframes, for a. availability of appropriations and
the different activities; and programmed budget programmed
g. Reiterated and emphasized for the contract, budget for the
b. completeness of the Bidding contract?
the importance of confidentiality
Documents and their
and the applicable sanctions and adherence to the Philippine b. completeness
penalties, as well as agreed on Bidding Documents (PBDs)/ of
measures to ensure compliance customized Bidding the Bidding
with the foregoing; Documents. Documents?
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
agreed on the recommendations
to the HOPE.
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
as well as agree on measures to 8. From the Minutes of Pre- Did the
ensure compliance with the Procurement Conference look participants led
foregoing. for information on the by the BAC
presentation of the criteria for discuss and
7.2. No procurement shall be eligibility screening, price confirm the
undertaken unless it is in accordance quotation evaluation, and criteria for:
with the approved APP of the post-qualification, the
procuring entity. The APP shall bear deliberation thereon, and the a. Eligibility
the approval of the Head of the conclusions reached as a result screening?
Procuring Entity or second-ranking of the deliberation; and
official designated by the Head of the analyze if they led to the b. Price
Procuring Entity to act on his behalf, confirmation of the criteria for Quotation
and must be consistent with its duly eligibility screening, price evaluation?
approved yearly budget. quotation evaluation, and
post-qualification. c. Post-
48.2. In accordance with Section 10 qualification?
of this IRR, as a general rule, the
Procuring Entities shall adopt public
bidding as the general mode of 9. From the Minutes of Pre- Did the
procurement and shall see to it that Procurement Conference look participants led
the procurement program allows for information on the by the BAC
sufficient lead time for such public presentation of the discuss and
bidding. Alternative methods shall be procurement schedule, confirm the
resorted to only in the highly including deadlines and adoption of the
exceptional cases provided for in this timeframes for the different procurement
Rule. activities, the no-contact rule, schedule
the deliberation thereon, and including
48.3. The method of procurement to the conclusions reached as a deadlines and
be used shall be as indicated in the result of the deliberation; and timeframes for
Approved Procurement Plan (APP). If analyze if they led to the the different
the original mode of procurement confirmation of the adoption of activities?
recommended in the APP was public the procurement schedule
bidding but cannot be ultimately including deadlines and
pursued, the BAC, through a timeframes for the different
Resolution, shall justify and activities.
recommend the change in the mode
of procurement to be approved by
the HOPE.
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
10. From the Minutes of Pre- Did the
Procurement Conference look participants led
4.2. To facilitate the immediate for information on the by the BAC
implementation of projects even reiteration and emphasis of reiterate and
pending approval of the GAA, the the importance of emphasize the
ABC shall be based on the budget confidentiality and the importance of
levels under the National applicable sanctions and confidentiality
Expenditure Program (NEP) penalties, as well as the and the
submitted to Congress. agreement on measures to applicable
4.3. For specifically appropriated ensure compliance. sanctions and
projects, agencies can proceed with penalties, as well
the procurement activities prior to as the agreement
issuance of the notice of award on measures to
using as basis the NEP figures. ensure
4.4. For lump-sum appropriations and compliance?
Centrally Managed Items (CMIs)
under the agencys budget, the head
of the agency shall identify and
thereafter notify the implementing
units (IUs) of the amount allocated
for the projects they are to
implement. On the basis of said
notification, the heads of the
respective IUs, as procuring entities,
can proceed with the procurement
activities prior to issuance of the
notice of award.
4.5. For Multi-Year Projects (MYPs), for
which the initial funding sourced
from either the existing/current
years budget or the NEP is not
sufficient to cover the total cost of
the project, it is required that a
Multi-Year Obligational Authority
(MYOA) must already have been
issued in accord with DBM Circular
Letter 2004-012 prior to
commencement of any procurement
activity.
Thus, the MYOA shall be a pre-
requisite for procurement of a multi-
year contract. All procurement
activities should be within the total
project cost and categories reflected
in the MYOA issued by DBP for the
said MYP.
4.6. As prescribed under Section 47,
Chapter 8, Subtitle B, Title I, Book V
of the Administrative Code of 1987,
no contract involving the
expenditure of public funds shall be
entered into unless the proper
accounting official of the procuring
entity shall have certified as to the
availability of funds and the
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
allotment to which the expenditure
or obligation may be properly
charged.
Definition:
3.1. Allotment - document issued by
the Department of Budget and
Management (DBM) which
authorizes an agency to incur
obligations for a specified amount
as contained in a legislated
appropriation. The allotment
issued may either be trough the
Agency Budget Matrix (ABM)
which covers the comprehensive
release of specifically appropriated
items in the agencys budget or
through the Special Allotment
Release Order (SARO).
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
which a Multi-Year Obligational
Authority has been issued, the ABC
shall be the amount reflected in the
Multi-Year Obligational Authority.
GOCCs and LGUs (referred to in
Section 2.2)
3.3.3. In the case of GOCCs,
including government financial
institutions as well as LGUs, the ABC
represents the amount of fund
transfers which they receive from a
national government agency to
implement a program/project/activity.
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Commission on Audit
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
develop appropriate audit cause(s) and develop
recommendations appropriate audit
recommendations.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
A. AUDIT OBJECTIVE:
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Audit Criteria Audit Question Yes No Particulars
of the
Answer
1. To verify if through a 1. From the BAC Resolution, Did the BAC
Resolution the BAC presented look for information on the through a
two (2) failed biddings as the BACs justification, that is, two Resolution present
failed biddings and the two (2) failed
justification for the negotiated
recommendation for the biddings as the
procurement and recommended change in the mode of justification for the
change in the mode of procurement to the HOPE for negotiated
procurement to the HOPE for approval. procurement and
approval recommend change
in the mode of
Implementing Rules and Regulations procurement to the
(IRR) of RA 9184, as amended on HOPE for approval?
September 2, 2009:
2. To verify if the BAC: 2. From the BAC Resolution Did the BAC
a. recommended the alternative recommending Negotiated recommend the
mode of procurement: Procurement as the method alternative mode of
Negotiated Procurement to the of procurement, look for the procurement:
approval of the HOPE. Negotiated
HOPE,
Procurement to the
and HOPE?
b. the HOPE approved the
alternative method of
procurement Did the HOPE
approve Negotiated
Implementing Rules and Regulations Procurement as the
(IRR) of RA 9184, as amended on method of
September 2, 2009: procurement?
48.3. The method of procurement to
be used shall be as indicated in the
Approved Procurement Plan (APP). If
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT
1. To verify the effects of Analyze the instances of non-
instances of non-compliance on compliance to establish the Appropriate Audit Working Papers
the: effects and develop
appropriate audit
a. validity of the procurement recommendations.
activities and outputs
including the validity of the Also determine if appropriate
resulting contract; actions were taken by the
auditee in regard to instances
b. validity of any payment to be of non-compliance.
made on the basis of the
contract;
c. etc.
NOTE:
and develop appropriate audit Also refer to the
recommendations OFFENSES AND
PENALTIES portion of
Implementing Rules and Regulations this Audit Guide.
(IRR) of RA 9184, as amended on
September 2, 2009:
13.3. Observers shall be invited at least
three (3) calendar days before the date of
the procurement stage/activity. The
absence of observers will not nullify the
BAC proceedings, provided that they
have been duly invited in writing.
NOTE:
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
A. AUDIT OBJECTIVE:
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Audit Sub-objective Audit Activities Audit Question Yes No Particulars of
Audit Criteria the Answer
1. To verify if the BAC used 1. From the Minutes of the BAC Did the BAC use
the Procuring Entitys registry meetings, TWG evaluation the Procuring
of suppliers as basis for reports supported with copies of Entitys registry of
selecting the suppliers to be the Procuring Entitys Registry suppliers who have
of suppliers, look for information been classified
invited for the negotiations on the basis of identification of under the type of
the suppliers to be invited for contract/project
Implementing Rules and Regulations the negotiations and the list of where the subject
(IRR) of RA 9184, as amended on identified suppliers based on the contract falls, as
September 2, 2009: agreed-upon basis. one of the bases
53.1.2. The BAC shall invite and for selecting the
engage in negotiations with a suppliers to be
sufficient number of suppliers to invited for the
ensure effective competition. negotiations?
53.1.2.1.
53.1.2.2. All Procuring Entities
shall maintain a registry of Did the BAC come
suppliers as basis for up with a list of
selecting the suppliers for suppliers to be
negotiations. invited as agreed
during the
meetings
conducted for the
purpose?
2. To verify if the BAC invited 2. Compare the names of the Did the BAC invite
all suppliers identified from suppliers to whom invitations and engage in
the Registry (ies) and other have been sent by the BAC (with negotiations with a
evidence of receipt) with the list sufficient number
bases adopted by the BAC for
of selected suppliers. of suppliers?
the purpose
3. To verify if the BAC posted 3. Ahead of any procurement, Did the BAC post
the Request for Submission of request the BAC Secretariat for the Request for
Price Quotations advance information on the first Submission of Price
continuously in the PhilGEPS day of any posting. Quotations
continuously in
website and the website of 4. On the first day of posting the:
the procuring entity access the PhilGEPS website, the
concerned, if available, for 7 website of the procuring entity 1. PhilGEPS
calendar days starting on the concerned, if available. Print the website for 7
date of posting page where the notice was calendar days
posted (to form part of the audit starting on the
Implementing Rules and Regulations evidences). date of
(IRR) of RA 9184, as amended on advertisement?
September 2, 2009: 5. Access the websites at
54.2. For alternative methods of random during the 7-day period 2. website of the
procurement, advertisement and to verify the postings. procuring entity
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Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of
Audit Criteria the Answer
posting as prescribed in Section concerned, if
21.2.1 of this IRR may be OR available, for 7
dispensed with: Provided, From the printouts of the web calendar days
however, That the BAC, through pages indicating the dates of starting on the
its Secretariat, shall post the printing, obtained from and duly date of
invitation or request for certified by the BAC Secretariat advertisement?
submission of price quotations for as true and correct, compare
Shopping under Sections 52.1(b) these dates with the required
and Negotiated Procurement dates of posting.
under Sections 53.1 (two-failed
biddings) and 53.9 (small value
procurement) of this IRR in the
PhilGEPS website, the website of
the procuring entity concerned, if
available, and at any conspicuous
place reserved for this purpose in
the premises of the procuring
entity for a period of seven (7)
calendar days.
4. To verify if the BAC posted 6. Ahead of any procurement, Did the BAC post
the Request for Submission of request the BAC Secretariat for the Request for
Price Quotations advance information on the first Submission of Price
continuously at any day of any posting. Quotations:
conspicuous place reserved
7. Conduct ocular inspection on 1. continuously for
for the purpose in the the first day of posting. seven (7) calendar
premises of the procuring days?
entity for 7 calendar days, as 8. Repeat the ocular inspections
certified by the head of the (may be at random) during the 2. at the
BAC Secretariat of the 7-day period to verify the conspicuous place
procuring entity postings. reserved for the
purpose in the
Implementing Rules and Regulations 9. Request for the certification of premises of the
(IRR) of RA 9184, as amended on the head of the BAC Secretariat. procuring entity?
September 2, 2009:
54.2. For alternative methods of 3. as certified by
procurement, advertisement and the head of the
posting as prescribed in Section BAC Secretariat of
21.2.1 of this IRR may be the procuring
dispensed with: Provided, entity?
however, That the BAC, through
its Secretariat, shall post the
invitation or request for
submission of price quotations for
Shopping under Sections 52.1(b)
and Negotiated Procurement
under Sections 53.1 (two-failed
biddings) and 53.9 (small value
procurement) of this IRR in the
PhilGEPS website, the website of
the procuring entity concerned, if
available, and at any conspicuous
place reserved for this purpose in
the premises of the procuring
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Commission on Audit
Republic of the Philippines Page 240
Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of
Audit Criteria the Answer
entity for a period of seven (7)
calendar days.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of this
Audit Guide.
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Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of
Audit Criteria the Answer
3. To communicate the Prepare the appropriate audit/
results of the audit with the validation document reflecting Audit Observation Memorandum (AOM), if
auditees Management the results of the audit/validation applicable
and transmit to Management
COA Circular No. 2009-006 dated
September 15, 2009 re- Prescribing
the Use of the Rules and
Regulations on Settlement of
Accounts
NOTES:
for the rest of the procurement procedures up to the award of the contract, the
Audit Guide on the Procedures: Competitive/Public Bidding are to be observed
with particular attention given to compliance by the BAC of the following
provisions of the Revised IRR of RA 9184 during bid evaluation up to award:
53.1.5. The procuring entity shall select the successful offer on the basis of such
best and final offers which should meet the procuring entitys minimum
technical requirements and should not exceed the ABC.
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procuring entity to a supplier shall be communicated on an equal basis to all
other suppliers engaging in negotiations with the procuring entity relative to
the procurement.
54.4. Except for Limited Source Bidding under Section 49 of this IRR,
submission of bid securities may be dispensed with.
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On the Procurement Procedures:
NEGOTIATED PROCUREMENT
OF GOODS
EMERGENCY CASES
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Procurement Procedures:
NEGOTIATED PROCUREMENT OF GOODS
EMERGENCY CASES
A. AUDIT OBJECTIVE:
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
restore vital public causes where
Implementing Rules and Regulations services, infrastructure immediate action
(IRR) of RA 9184, as amended on facilities and other is necessary to
September 2, 2009: public utilities prevent damage to
53.2. Emergency Cases. In case of or loss of life or
imminent danger to life or property property, or to
during a state of calamity, or when restore vital public
time is of the essence arising from services,
natural or man-made calamities or infrastructure
other causes where immediate action facilities and other
is necessary to prevent damage to or public utilities?
loss of life or property, or to restore
vital public services, infrastructure
facilities and other public utilities.
2. To verify if the BAC: 2. From the BAC Did the BAC validate
Resolution, look for the justification for
a. validated the justification for information on the adoption of the
adoption of the adoption of BACs validation of the alternative method of
Negotiated Procurement, an justification for procurement:
alternative method of adoption of the Negotiated
procurement, alternative method of Procurement?
b. validated that there was no procurement:
splitting, Negotiated
and Procurement and Did the BAC validate
recommendation of that there was no
c. through a Resolution
said method to the splitting?
recommended said method HOPE for approval.
to the HOPE for approval
Did the BAC
Implementing Rules and Regulations recommend
(IRR) of RA 9184, as amended on Negotiated
September 2, 2009: Procurement, an
alternative method,
48.3. The method of procurement to
to the HOPE for
be used shall be as indicated in the
approval?
Approved Procurement Plan (APP). If
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
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Commission on Audit
Republic of the Philippines Page 246
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
evading or circumventing the
requirements of law and this IRR,
specially the necessity of public
bidding and the requirements for the
alternative methods of procurement.
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
2. To verify the causes of Analyze the instances of
instances of non-compliance and non-compliances to Appropriate Audit Working Papers
develop appropriate audit establish the cause(s) and
recommendations develop appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
NOTES:
1. Based on the following requirement of the Manual of Procedures for the Procurement of
Goods Vol. 2 published by the GPPB:
o Methodology: How is Negotiated Procurement undertaken?
4. The procedures for the conduct of public bidding should be observed.
for the rest of the procurement procedures up to the award of the contract, the Audit
Guide on the Procedures: Competitive/Public Bidding are to be observed.
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On the Procurement Procedures:
AGENCY-TO-AGENCY
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Commission on Audit
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Procurement Procedures:
NEGOTIATED PROCUREMENT FOR GOODS
AGENCY-TO-AGENCY
Procurement of goods from another agency of the Government of the Philippines (GOP),
such as the Procurement Service, Department of Budget and Management (PS-DBM), which is
tasked with a centralized procurement of Common-Use Supplies for the GOP in accordance with
Letters of Instruction No. 755 and Executive Order No. 359, series of 1989.
For purposes of Section 53.5 of the Revised IRR of RA 9184, the term agency excludes
GOCCs incorporated under Batas Pambansa Blg. 68, otherwise known as the Corporation Code of
the Philippines.
NOTE:
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On the Procurement Procedures:
SMALL-VALUE PROCUREMENT
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Procurement Procedures:
NEGOTIATED PROCUREMENT FOR GOODS
SMALL- VALUE PROCUREMENT
Small-Value Procurement - Where the procurement does not fall under Shopping in Section
52 of the Revised IRR of RA 9184 and the amount involved does not exceed the thresholds
prescribed in Annex H of said IRR, the procuring entity shall draw up a list of at least three (3)
suppliers of known qualifications which will be invited to submit proposals.
a) For NGAs, GOCCs, GFIs, and SUCs, Five Hundred Thousand Pesos (P500,000).
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I. APPROVAL OF THE ALTERNATIVE METHOD
A. AUDIT OBJECTIVE:
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
recommended in the APP was public Did the BAC validate
bidding but cannot be ultimately that there was not
pursued, the BAC, through a splitting?
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
not exceed the thresholds prescribed
in Annex H of this IRR.
2. To verify if the BAC: 2. From the BAC Resolution Did the BAC
a. recommended the alternative recommending Small-Value recommend the
mode of procurement: Small- Procurement as the method alternative mode of
of procurement, look for procurement: Small-
Value Procurement to the
the approval of the HOPE. Value Procurement to
HOPE,
the HOPE?
and
b. the HOPE approved the
alternative method of Did the HOPE
procurement approve Small-Value
Procurement as the
Implementing Rules and Regulations method of
(IRR) of RA 9184, as amended on procurement?
September 2, 2009:
48.3. The method of procurement to
be used shall be as indicated in the
Approved Procurement Plan (APP). If
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
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Commission on Audit
Republic of the Philippines Page 255
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
resulting contract; taken by the auditee in
regard to instances of non-
b. validity of any payment to be compliance.
made on the basis of the
contract;
c. etc.
NOTE:
and develop appropriate audit
Also refer to the
recommendations
OFFENSES AND
Implementing Rules and Regulations PENALTIES portion of
(IRR) of RA 9184, as amended on this Audit Guide.
September 2, 2009:
13.3. Observers shall be invited at least
three (3) calendar days before the date of
the procurement stage/activity. The
absence of observers will not nullify the
BAC proceedings, provided that they
have been duly invited in writing.
2. To verify the causes of Analyze the instances of
instances of non-compliance and non-compliances to establish Appropriate Audit Working Papers
develop appropriate audit the cause(s) and develop
appropriate audit
recommendations
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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NEGOTIATED PROCUREMENT FOR GOODS
SMALL-VALUE PROCUREMENT
A. AUDIT OBJECTIVE
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
b. the website of the 3. Access the PhilGEPS a. the PhilGEPS
procuring entity, if website, the website of the for a period of 7
available procuring entity concerned, calendar days?
c. any conspicuous place in if available and print the
page where the notice was b. the website of
the premises of the
posted (to form part of the the procuring
procuring entity audit evidences). entity for a
for a period of 7 calendar period of 7
days 4. Conduct ocular calendar days?
inspection on the schedule
Guidelines for Shopping and Small of posting. c. any
Value Procurement covered by GPPB conspicuous
Resolution No. 09-2009, dated 23 place in the
November 2009: premises of the
procuring entity
1. . . . for a period of 7
2. . . . calendar days?
3. Procedural Guidelines
d. RFQs shall also be posted for
a period of seven (7) calendar
days in the Philippine
Government Electronic
Procurement System (PhilG-
EPS) website, website of the
procuring entity, if available,
and at any conspicuous place
reserved for this purpose in the
premises of the procuring
entity. However, in the following
instances, the posting
requirement shall not be
applicable:
i.
ii. RFQs with ABCs equal to
Fifty Thousand Pesos (Php
50,000.00) and below.
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
e. After the deadline for
submission of price quotations, Did the
an Abstract of Quotations shall procurement unit
be prepared setting forth the of the Procuring
names of those who responded Entity determine
to the RFQ, their corresponding the lowest
price quotations, and the lowest quotation?
quotation submitted.
4. To verify if the procuring 7. Compare the name of Did the procuring
entity made the award of supplier with the lowest entity award the
contract to the lowest quotation as indicated in the contract to the
quotation which complied Abstract of Quotation with lowest quotation
the name of supplier who which complied
with the specifications and
was awarded the contract. with the
other terms and conditions specifications and
stated in the RFQ 8. From the documentation other terms and
of the evaluation of price conditions stated in
Guidelines for Shopping and Small quotations conducted by the the RFQ?
Value Procurement covered by GPPB procuring entity, look for the
Resolution No. 09-2009, dated 23 verification on the
November 2009: compliance with the
specifications and other
1. . . . terms and conditions stated
2. . . . in the RFQ.
3. Procedural Guidelines
h. Award of contract shall be
made to the lowest quotation
for goods which complies with
the specifications and other
terms and conditions stated in
the RFQ.
5. For procurement with an 9. Ahead of the Did the procuring
ABC of more than Php procurement, request the entity post the
50,000.00, To verify if the procuring entity for advance award in:
procuring entity posted the information on the schedule
of any posting. a. the PhilGEPS?
award in:
a. the PhilGEPS, 10. Access the PhilGEPS b. the website of
b. the website of the website, the website of the the procuring
procuring entity, if procuring entity concerned, entity?
available if available and print the
c. any conspicuous place in page where the award was c. any
the premises of the posted (to form part of the conspicuous
procuring entity audit evidences). place in the
premises of
Guidelines for Shopping and Small 11. Conduct ocular the procuring
Value Procurement covered by GPPB inspection on the schedule entity?
Resolution No. 09-2009, dated 23 of posting.
November 2009:
1. . . .
2. . . .
3. Procedural Guidelines
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
i. For information purposes, all
awards shall be posted in the
PhilG-EPS website, website of
the procuring entity, if available,
and at any conspicuous place
reserved for this purpose in the
premises of the procuring entity
except for those with ABCs
equal to Fifty Thousand Pesos
(Php 50,000.00) and below.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Other criteria:
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of bid
securities may be dispensed with.
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On the Procurement Procedures:
DEFENSE COOPERATION
AGREEMENT
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Procurement Procedures:
NEGOTIATED PROCUREMENT FOR GOODS
DEFENSE COOPERATION AGREEMENT
Defense Cooperation Agreement - Upon prior approval by the President of the Philippines,
and when the procurement for use by the AFP involves major defense equipment or materiel
and/or defense-related consultancy services, when the expertise or capability required is not
available locally, and the Secretary of National Defense has determined that the interests of the
country shall be protected by negotiating directly with an agency or instrumentality of another
country with which the Philippines has entered into a defense cooperation agreement or otherwise
maintains diplomatic relations: Provided, however, That the performance by the supplier of its
obligations under the procurement contract shall be covered by a performance security in
accordance with Section 39 of the Revised IRR of RA 9184.
NOTE:
The Audit Guide on Direct Contracting may be used as reference, to consider the following
criteria embodied in Section 53.8 of the Revised IRR of RA 9184:
2. The procurement is by the AFP and involves major defense equipment or materiel;
3. The Secretary of National Defense has determined that the interests of the country
shall be protected by negotiating directly with an agency or instrumentality of another
country with which the Philippines has entered into a defense cooperation agreement
or otherwise maintains diplomatic relations;
4. the performance by the supplier of its obligations under the procurement contract
shall be covered by a performance security in accordance with Section 39 of the
Revised IRR of RA 9184
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 263
On the Procurement Procedures:
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 264
Procurement Procedures:
NEGOTIATED PROCUREMENT FOR GOODS
UNITED NATIONS AGENCIES
United Nations Agencies - Procurement from specialized agencies of the United Nations of any
of the following:
(a) small quantities of off-the-shelf goods, primarily in the fields of education and health; and
(b) specialized products where the number of suppliers is limited, such as vaccines or drugs.
NOTE:
No Audit Guide has been developed for this method of procurement in the
absence of regulations specifying the requirements and the related procedures.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 265
On the Procurement Procedures:
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 266
Procurement Procedures:
COMPETITIVE / PUBLIC BIDDING FOR THE
PROCUREMENT OF INFRASTRUCTURE PROJECTS
Bidding documents are documents issued by the Procuring Entity to provide prospective
bidders all the necessary information that they need to prepare their bids.
A. AUDIT OBJECTIVE:
To verify if the Bidding Documents for the specific procurement followed the standard forms
and manuals prescribed by the Government Procurement Policy Board (GPPB)
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 267
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
accordance with the - time of the pre-
Act, and post- bid conference?
qualification, as well as
the date, time and - Place of the
pre-bid
place of the pre-bid
conference?
conference (where
applicable), submission - Deadline for
of bids and opening of submission of
bids; bids?
e. Scope of work, where
applicable; - Place of
f. Plans/Drawings and submission of
bids?
Technical
Specifications; - Date of opening
g. Form of Bid, Price Form, of bids?
and List of Goods;
h. Delivery Time or - Time of opening
Completion Schedule; of bids?
i. Form, Amount, and
Validity Period of Bid - Place of opening
Security; of bids?
j. Form, Amount, and
e. Scope of work?
Validity of Performance
Security and Warranty; f. Plans/Drawings
and and Technical
l. Form of Contract and Specifications?
General and Special
Conditions of Contract. g. Form of Bid, Price
Form, and Bill of
Implementing Rules and Quantities?
Regulations (IRR) of RA 9184, as
amended on September 2, 2009: h. Completion
17.1. The Bidding Documents Schedule?
shall be prepared by the
procuring entity following the i. Form, Amount, and
standard forms and manuals Validity Period of
prescribed by the GPPB. Bid Security?
a. Approved Budget for the
Contract; j. Form, Amount, and
b. Invitation to Bid; Validity of
c. Eligibility Requirements; Performance
d. Instruction to Bidders, Security and
including scope of bid, Warranty?
documents comprising the
bid, criteria for eligibility, bid k. Form of Contract
evaluation and General and
methodology/criteria in Special Conditions
accordance with the Act, and of Contract?
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 268
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
post-qualification, as well as Are the Bidding
the date, time and place of Documents in the
the pre-bid conference required form:
(where applicable),
submission of bids and a. Invitation to Bid?
opening of bids;
e. Scope of work, where b. Instructions to
applicable; Bidders?
f. Plans/Drawings and
Technical Specifications; c. Bid Data Sheet?
g. Form of Bid, Price Form, and
Bill of Quantities; d. General Conditions
h. Completion Schedule; of the Contract?
i. Form, Amount, and Validity
Period of Bid Security; e. Special Conditions
j. Form, Amount, and Validity of of Contract?
Performance Security and
Warranty; and f. Schedule of
k. Form of Contract and General Requirements?
and Special Conditions of
Contract. g. Technical
Specifications?
GPPB Resolution No. 05-2009
dated 30 September 2009: h. Bidding Forms?
all branches, agencies,
departments, bureaus, offices
and instrumentalities of the
Government, including
government-owned and/or
controlled corporations,
government financial
institutions, state universities
and college, and local
government units, are hereby
mandated to use the Philippine
Bidding Documents Third
Edition for all of their
procurement activities.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 269
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Regulations (IRR) of RA 9184,
as amended on September 2,
2009:
Observers shall be invited at
least three (3) calendar days
before the date of the
procurement stage/activity.
The absence of observers will
not nullify the BAC
proceedings, provided that
they have been duly invited
in writing.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 270
II. PREPARATORY ACTIVITY: PRE-PROCUREMENT CONFERENCE
(For procurement of infrastructure projects costing more than P5 million)
The pre-procurement conference is the forum where all officials involved in the procurement
meet and discuss all aspects of a specific procurement activity, which includes the technical
specifications, the Approved Budget for the Contract (ABC), the applicability and appropriateness
of the recommended method of procurement and the related milestones, the bidding documents,
and availability of the pertinent budget release for the project.
A. AUDIT OBJECTIVES:
1. To verify if the Pre-Procurement Conference was conducted within the required time;
3. To verify if during the Pre-Procurement Conference the participants, led by the Bids and
Awards Committee (BAC), performed the required tasks and attained the objectives of the
Conference.
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Prepared by:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 271
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of the
Audit Criteria
Answer
2. To verify if the participants 2. Secure from the BAC Did the participants to
to the Pre-Procurement Secretariat duly certified the Pre-Procurement
Conference included the BAC, copies of the documents Conference include
(Office Orders, contracts, the:
the Secretariat, the unit or
Organizational/Functional
officials, including
Charts, etc) which it used as a. BAC?
consultants hired by the bases for identifying and
procuring entity, who notifying the participants to b. Secretariat?
prepared the Bidding the Pre-Procurement
Documents and the draft Conference, including duly c. unit or officials
Invitation to Bid certified copies of the who prepared the
notices issued with evidence Bidding
Implementing Rules and Regulations of receipt by the Documents and
(IRR) of RA 9184, as amended on participants. the draft Invitation
September 2, 2009: to Bid?
20.1. The pre-procurement 3. From the Minutes of Pre-
conference shall be attended by Procurement Conference d. consultants hired
the BAC, the Secretariat, the unit look for the names of the by the procuring
or officials, including consultants members of the BAC, the entity, who
hired by the procuring entity, who members of the Secretariat, prepared the
prepared the Bidding Documents the officials and/or Bidding
and the draft Invitation to Bid, for consultants who prepared Documents and
each procurement. the Bidding Documents and the draft Invitation
the draft Invitation to Bid. to Bid?
3. To verify if during the Pre- 4. From the Minutes of Pre- Did the participants
Procurement Conference the Procurement Conference led by the BAC
participants, led by the BAC, look for information on the discuss and confirm
presentation of the scope of the:
performed the following
the contract, the ABC, and
tasks and attained the related
contract duration, the a. Description of the
objectives: deliberation thereon, and scope of the
a. Discussed relevant the conclusions reached as a contract?
information and confirmed result of the deliberation;
and analyze if they led to b. ABC?
the description of the scope
the confirmation of the
of the contract, the ABC, and description of the scope of c. Contract duration?
contract duration; the contract, the ABC, and
b. Discussed relevant the contract duration.
information and confirmed
that the procurement is in
accordance with the project
procurement management
plan (PPMP) and annual
procurement plan (APP);
c. Discussed relevant
information and confirmed
readiness of the procurement
at hand on the following:
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 272
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of the
Audit Criteria
Answer
c.1. the availability of 5. From the Minutes of Pre- Did the participants
appropriations and Procurement Conference led by the BAC
programmed budget for look for information on the discuss and confirm
presentation of the review of that the:
contract;
the PPMP and APP, the
c.2. completeness of the
deliberation thereon, and a. procurement is in
Bidding Documents and the conclusions reached as a accordance with
their adherence to relevant result of the deliberation; the PPMP and
general procurement and analyze if they led to APP?
guidelines; the confirmation if the
c.3. completion of the procurement is in b. appropriations
detailed engineering accordance with the PPMP and programmed
according to the prescribed and APP and availability of budget for the
appropriations and contract are
standards in the case of
programmed budget for the available?
infrastructure projects; contract.
c.4. confirmation of the
availability of ROW and the
ownership of affected 6. From the Minutes of Pre- Did the participants
properties. Procurement Conference led by the BAC
d. Reviewed, modified and look for information on the discuss and confirm
agreed on the criteria for presentation of information, that the procurement
the deliberation thereon, at hand is ready as
eligibility screening,
and the conclusions reached to:
evaluation, and post- as a result of the
qualification; deliberation; and analyze if a. availability of
f. Reviewed and adopted they led to the confirmation appropriations and
the procurement schedule, of the readiness of the programmed
including deadlines and procurement at hand as to: budget for the
timeframes, for the different a. availability of contract?
activities; and appropriations and
programmed budget for b. completeness of
g. Reiterated and the contract, the Bidding
emphasized the importance b. completeness of the Documents?
of confidentiality and the Bidding Documents and
applicable sanctions and their adherence to the c. adherence of the
penalties, as well as agreed Philippine Bidding Bidding
on measures to ensure Documents (PBDs)/ Documents with
compliance with the customized Bidding the PBDs/
foregoing. Documents, customized
c. completion of the detailed Bidding
Implementing Rules and Regulations engineering according to Documents?
(IRR) of RA 9184, as amended on the prescribed standards;
September 2, 2009: d. availability of ROW and d. completion of the
20.1. During the conference, the the ownership of affected detailed
participants, led by the BAC, shall: properties. engineering
a. Confirm the description and scope according to the
of the contract, the ABC, and prescribed
contract duration; standards?
b. Ensure that the procurement is in
accordance with the project and
e. availability of ROW
annual procurement plans;
and the ownership
c. Determine the readiness of the
of affected
procurement at hand, including,
properties?
among other aspects, the following:
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 273
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of the
Audit Criteria
Answer
i) availability of appropriations 7. From the Minutes of Pre- Did the participants
and programmed budget for Procurement Conference led by the BAC
the contract; look for information on the discuss and confirm
ii) completeness of the Bidding presentation of the criteria the criteria for:
Documents and their for eligibility screening, bid
adherence to relevant evaluation, and post- a. Eligibility
general procurement qualification, the deliberation screening?
guidelines; thereon, and the conclusions
iii) completion of the detailed reached as a result of the b. Bid evaluation?
engineering according to deliberation; and analyze if
the prescribed standards in they led to the confirmation c. Post-qualification?
the case of infrastructure of the criteria for eligibility
projects; screening, bid evaluation,
iv) confirmation of the and post-qualification.
availability of ROW and the
ownership of affected 8. From the Minutes of Pre- Did the participants
properties. Procurement Conference led by the BAC
d. Review, modify and agree on look for information on the discuss and confirm
the criteria for eligibility presentation of the the adoption of the
screening, evaluation, and post- procurement schedule, procurement schedule
qualification; including deadlines and including deadlines
e. Review and adopt the timeframes for the different and timeframes for
procurement schedule, including activities, the no-contact the different
deadlines and timeframes, for rule, the deliberation activities?
the different activities; and thereon, and the conclusions
f. Reiterate and emphasize the reached as a result of the
importance of confidentiality deliberation; and analyze if
and the applicable sanctions they led to the confirmation
and penalties, as well as agree of the adoption of the
on measures to ensure procurement schedule
compliance with the foregoing. including deadlines and
timeframes for the different
7.2. No procurement shall be activities.
undertaken unless it is in
accordance with the approved 9. From the Minutes of Pre- Did the participants
APP of the procuring entity. The Procurement Conference led by the BAC
APP shall bear the approval of look for information on the reiterate and
the Head of the Procuring Entity reiteration and emphasis of emphasize the
or second-ranking official the importance of importance of
designated by the Head of the confidentiality and the confidentiality and
Procuring Entity to act on his applicable sanctions and the applicable
behalf, and must be consistent penalties, as well as the sanctions and
with its duly approved yearly agreement on measures to penalties, as well as
budget. ensure compliance. the agreement on
measures to ensure
GPPB Circular 01-2009 dated 20 compliance?
January 2009:
4.2. To facilitate the immediate
implementation of projects even
pending approval of the GAA,
the ABC shall be based on the
budget levels under the National
Expenditure Program (NEP)
submitted to Congress.
4.3. For specifically appropriated
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 274
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of the
Audit Criteria
Answer
projects, agencies can proceed
with the procurement activities
prior to issuance of the notice of
award using as basis the NEP
figures.
4.4. For lump-sum appropriations and
Centrally Managed Items (CMIs)
under the agencys budget, the
head of the agency shall
identify and thereafter notify the
implementing units (IUs) of the
amount allocated for the
projects they are to implement.
On the basis of said notification,
the heads of the respective IUs,
as procuring entities, can
proceed with the procurement
activities prior to issuance of the
notice of award.
4.5. For Multi-Year Projects (MYPs),
for which the initial funding
sourced from either the
existing/current years budget or
the NEP is not sufficient to
cover the total cost of the
project, it is required that a
Multi-Year Obligational Authority
(MYOA) must already have been
issued in accord with DBM
Circular Letter 2004-012 prior to
commencement of any
procurement activity.
Thus, the MYOA shall be a
pre-requisite for procurement of
a multi-year contract. All
procurement activities should be
within the total project cost and
categories reflected in the
MYOA issued by DBM for the
said MYP.
4.6. As prescribed under Section 47,
Chapter 8, Subtitle B, Title I,
Book V of the Administrative
Code of 1987, no contract
involving the expenditure of
public funds shall be entered
into unless the proper
accounting official of the
procuring entity shall have
certified as to the availability of
funds and the allotment to
which the expenditure or
obligation may be properly
charged.
Definition:
3.1. Allotment - document
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Prepared by:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 275
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of the
Audit Criteria
Answer
issued by the Department of
Budget and Management
(DBM) which authorizes an
agency to incur obligations for
a specified amount as
contained in a legislated
appropriation. The allotment
issued may either be trough
the Agency Budget Matrix
(ABM) which covers the
comprehensive release of
specifically appropriated items
in the agencys budget or
through the Special Allotment
Release Order (SARO).
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 276
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of the
Audit Criteria
Answer
amount reflected in the Multi-
Year Obligational Authority.
GOCCs and LGUs (referred to in
Section 2.2)
3.3.3. In the case of GOCCs,
including government financial
institutions as well as LGUs, the
ABC represents the amount of
fund transfers which they receive
from a national government
agency to implement a
program/project/activity.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 277
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of the
Audit Criteria
Answer
a. validity of the procurement recommendations.
activities and outputs
including the validity of the Also determine if
appropriate actions were
resulting contract;
taken by the auditee in
b. validity of any payment to regard to instances of
be made on the basis of non-compliance.
the contract;
c. etc.
and develop appropriate NOTE:
audit recommendations Also refer to the
OFFENSES AND
Implementing Rules and PENALTIES portion
Regulations (IRR) of RA 9184, as of this Audit Guide.
amended on September 2, 2009:
Observers shall be invited at least
three (3) calendar days before the
date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 278
III. ADVERTISING AND POSTING OF THE INVITATION TO BID
(For procurement of infrastructure projects costing more than P5 million)
A. AUDIT OBJECTIVE:
To verify if the Invitation to Bid was advertised and posted in the media and within the
specified time as required
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 279
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
2. To verify if the BAC posted 3. Ahead of any Did the BAC post the
the Invitation to Bid procurement, request the Invitation to Bid
continuously in the PhilGEPS BAC Secretariat for advance continuously in the:
website, the website of the information on the first day
of any posting. 1. PhilGEPS website
procuring entity concerned,
for 7 calendar
if available, and the website 4. On the first day of posting days starting on
prescribed by the foreign access the PhilGEPS website, the date of
government/foreign or the website of the procuring advertisement?
international financing entity concerned, if
institution, if applicable, for available, and website 2. website of the
7 calendar days starting on prescribed by the foreign procuring entity
the date of advertisement government/ foreign or concerned, if
international financing available, for 7
Implementing Rules and Regulations institution, if applicable. calendar days
(IRR) of RA 9184, as amended on Print the page where the starting on the
September 2, 2009: notice was posted (to form date of
21.2.1. Except as otherwise part of the audit evidences). advertisement?
provided in Sections 21.2.2 and
54.2 of this IRR and for the 5. Access the websites at 3. website prescribed
procurement of common-use random during the 7-day by the foreign
goods and supplies, the Invitation period to verify the postings. government/
to Bid shall be: foreign or
c. OR international
b. Posted continuously in the From the printouts of the financing
PhilGEPS website, the website web pages indicating the institution, if
of the procuring entity dates of printing, obtained applicable, for 7
concerned, if available, and the from and duly certified by calendar days
website prescribed by the the BAC Secretariat as a true starting on the
foreign government/foreign or and correct, compare these date of
international financing dates with the required advertisement?
institution, if applicable, for 7 dates of posting.
calendar days starting on the
date of advertisement
3. To verify if the BAC posted 6. Ahead of any Did the BAC post the
the Invitation to Bid procurement, request the Invitation to Bid:
continuously at any BAC Secretariat for advance
conspicuous place reserved information on the first day 1. continuously for
of any posting. seven (7) calendar
for the purpose in the
days?
premises of the procuring 7. Conduct ocular inspection
entity for 7 calendar days, as on the first day of posting. 2. at the conspicuous
certified by the head of the place reserved for the
BAC Secretariat of the 8. Repeat the ocular purpose in the
procuring entity inspections (may be at premises of the
random) during the 7-day procuring entity?
Implementing Rules and Regulations period to verify the postings.
(IRR) of RA 9184, as amended on 3. as certified by the
September 2, 2009: 9. Request for the head of the BAC
21.2.1. Except as otherwise certification of the head of Secretariat of the
provided in Sections 21.2.2 and the BAC Secretariat. procuring entity?
54.2 of this IRR and for the
procurement of common-use
goods and supplies, the Invitation
to Bid shall be:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 280
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
a.
b.
c. Posted at any conspicuous place
reserved for the purpose in the
premises of the procuring entity
for 7 calendar days, as certified
by the head of the BAC
Secretariat of the procuring
entity.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
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Prepared by:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 281
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Prepared by:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 282
IV. POSTING OF THE INVITATION TO BID
(For procurement of infrastructure projects costing P5 million and below)
A. AUDIT OBJECTIVE:
To verify if the Invitation to Bid was posted in the media as required and within the specified
time
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 283
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
required dates of posting.
2. To verify if the BAC posted 4. Ahead of any Did the BAC post the
the Invitation to Bid procurement, request the Invitation to Bid:
continuously at any BAC Secretariat for
advance information on 1. continuously for
conspicuous place reserved
the first day of any seven (7) calendar
for the purpose in the posting. days?
premises of the procuring
entity for 7 calendar days, as 5. Conduct ocular 2. at the conspicuous
certified by the head of the inspection on the first day place reserved for the
BAC Secretariat of the of posting. purpose in the
procuring entity premises of the
6. Repeat the ocular procuring entity?
Implementing Rules and Regulations inspections (may be at
(IRR) of RA 9184, as amended on random) during the 7-day 3. as certified by the
September 2, 2009: period to verify the head of the BAC
21.2.1. Except as otherwise postings. Secretariat of the
provided in Sections 21.2.2 and procuring entity?
54.2 of this IRR and for the 7. Request for the
procurement of common-use goods certification of the head of
and supplies, the Invitation to Bid the BAC Secretariat.
shall be:
a.
b.
c. Posted at any conspicuous place
reserved for the purpose in the
premises of the procuring entity
for 7 calendar days, as certified
by the head of the BAC
Secretariat of the procuring
entity.
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Prepared by:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 284
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 285
V. ISSUANCE OF BIDDING DOCUMENTS FOR THE PROCUREMENT OF
INFRASTRUCTURE PROJECTS
The bidding documents must be made available to the prospective bidders from the time
the Invitation to Bid is advertised until immediately before the deadline for submission of bids.
A. AUDIT OBJECTIVE:
To determine whether the prescribed procedures and timelines in the issuance of bidding
documents were followed
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 286
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
2. To verify if the BAC posted 2. Ahead of any procurement, Did the BAC post
the Bidding Documents at the request the BAC Secretariat for the Bidding
website of the procuring advance information on the Documents at the:
entity and at the PhilGEPS first day of any posting of
Bidding Documents. c. PhilGEPS
website from the time that
website starting
the Invitation to Bid was 3. On the first day of posting on the first day
advertised up to the deadline access the PhilGEPS website, of
for the submission and the website of the procuring advertisement
receipt of bids entity concerned, if available.
d. website of the
Implementing Rules and Regulations Print the page where the procuring entity
(IRR) of RA 9184, as amended on notice was posted (to form concerned, if
September 2, 2009: part of the audit evidences). available,
Section 17.5 The procuring entity starting on the
shall also post the Bidding 4. Access the websites at first day of
Documents at its website and at random from the first day of advertisement
the PhilGEPS website from the time posting up to the deadline for
that the Invitation to Bid is the submission and receipt of
advertised. Prospective Bidders bids to verify the postings.
may download the Bidding
Documents from any of the said
websites; Provided that, bidders
shall pay the fee for the Bidding
Documents upon submission of
their Bids.
3. To verify if all bidders that 5. Compare the records of the Did all the bidders
secured Bidding Documents BAC on issued bidding who submitted bids
paid to the authorized documents (with information pay the correct
collecting officer of the on Official Receipt numbers) amount for the
for the procurement at hand bidding documents
procuring entity
with copies of Official Receipts to the authorized
Implementing Rules and Regulations (ORs) issued by authorized collecting officer of
(IRR) of RA 9184, as amended on collecting officers for the sale the procuring
September 2, 2009: of bidding documents. entity?
17.4. Bidders may be asked to
pay for the Bidding Documents to 6. After submission of bids, for
recover the cost of its preparation bidders that downloaded
and development. The BAC shall bidding documents, compare
issue the Bidding Documents upon the OR numbers indicated in
payment of the corresponding cost the records of the BAC
thereof to the collecting/ disbursing Secretariat with copies of the
officer of the procuring entity ORs or Report of Collection of
concerned. authorized collecting officers.
17.5. Prospective bidders may
download the Bidding Documents
from any of the said websites;
Provided that, bidders shall pay the
fee for the Bidding Documents upon
submission of their bids.
EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT
1. To verify the effects of Analyze the instances of non-
instances of non-compliance compliance to establish the Appropriate Audit Working Papers
on the: effects and develop
appropriate audit
a. validity of the procurement recommendations.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
activities and outputs Also determine if appropriate
including the validity of the actions were taken by the
resulting contract; auditee in regard to instances
of non-compliance.
b. validity of any payment to
be made on the basis of
the contract;
c. etc. NOTE:
Also refer to the
and develop appropriate OFFENSES AND
audit recommendations PENALTIES portion of
this Audit Guide.
Implementing Rules and
Regulations (IRR) of RA 9184, as
amended on September 2, 2009:
Observers shall be invited at least
three (3) calendar days before the
date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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VI. PRE-BID CONFERENCE
For the procurement of infrastructure projects with an
Approved Budget for the Contract of at least One Million Pesos (P 1 Million)
The pre-bid conference is the initial forum where the Procuring Entitys representatives
and the prospective bidders discuss the different aspects of the procurement at hand.
A pre-bid conference must be held for contracts with ABCs of at least One Million Pesos (P
1 Million). For contracts with ABCs of less than P 1 million, pre-bid conferences may or may not be
held at the discretion of the BAC. The BAC may also decide to hold a pre-bid conference upon the
written request of a prospective bidder.
A. AUDIT OBJECTIVES:
1. To verify if the BAC conducted a Pre-Bid Conference for a contract with ABC of at least
P1 million;
2. To verify if the BAC conducted the Pre-Bid Conference within the required time;
3. To verify if during the Pre-Bid Conference the participants, led by the BAC, performed
the required tasks.
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2. To verify if the Pre-Bid 2. Based on the deadline Did the BAC hold
Conference was held at least for the submission and the Pre-Bid
twelve (12) calendar days before receipt of bids Conference at
the deadline for the submission indicated in the least twelve
and receipt of bids Invitation to Bid, calendar days
determine the 12th day before the deadline
Implementing Rules and Regulations before such deadline. for the submission
(IRR) of RA 9184, as amended on and receipt of bids
September 2, 2009: 3. Compare the date
22.2 The pre-bid conference shall be determined in 2. above
held at least twelve (12) calendar days
with the date of
before the deadline for the submission
and receipt of bids. If the procuring holding the Pre-Bid
entity determines that, by reason of the Conference indicated
method, nature, or complexity of the in the certified copy of
contract to be bid or when international the Minutes of Pre-Bid
participation will be more advantageous Conference .
to the GOP,a longer period for the
preparation of bids is necessary, the
pre-bid conference shall be held at least
thirty (30) calendar days before the
deadline for the submission and receipt
of bids.
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the Answer
September 2, 2009: of failure of the
bidding?
22.3 The pre-bid conference shall
discuss, among other things, the i. requirements in
eligibility requirements and the the Instructions
technical and financial components of to Bidders?
the contract to be bid. However, at the
option of the Procuring Entity, only j. specifications?
those who have purchased the Bidding
Documents shall be allowed to k. other conditions
participate in the pre-bid conference of the project?
and raise or submit written queries or
clarifications. [amendment per Annex A l. warranty
of GPPB Resolution No. 06-2009 dated requirement of
30 September 2009] the project?
Generic Procurement Manual,
Volume 2, Manual of Procedures for m. different
the Procurement of Infrastructure offenses and
Projects issued by the GPPB: penalties
The manner by which the pre-bid provided for in
conference is conducted depends on IRR of RA
the discretion of the BAC. However, 9184?
several events need to take place in the
conference, namely:
c. The presentation by the BAC of the
eligibility requirements as well as the
technical and financial components of
the contract to be bid, the evaluation
criteria, and possible causes of failure
of the bidding.
d. The BAC chairperson shall also
discuss the requirements in the ITB,
the replies to the bidders queries
about the requirements,
specifications and other conditions of
the project, the bid evaluation of all
bidders and post-qualification
evaluation of the lowest calculated
bidder. Emphasis should also be
given to the warranty requirement of
the project and the different offenses
and penalties provided for in IRR-A of
R.A. 9184.
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22.4 The minutes of the pre-bid Minutes by its participants
conference shall be recorded and made as indicated in the
available to all participants not later receiving portion of the
than three (3) calendar days after the letter.
pre-bid conference.
5. To verify if the BAC invited 7. From the Minutes of Did the BAC
Observers: the BAC meeting on the choose the
a. representing the COA, the duly selection of the Observer Observers
recognized private group in a from the pool, check for considering:
sector or discipline relevant to the information on the BACs
procurement at hand, and a non- evaluation in regard to: a. one
government organization (NGO) the selection of the representing
from the procuring entitys Pool of organization from the COA?
Observers; which the Observer
b. that have: will be invited; b. One
knowledge, representing
b.1. knowledge, experience or experience or the duly
expertise in procurement or in the
expertise in recognized
subject matter of the contract to
procurement or in the private group in
be bid;
subject matter of the a sector or
b.2. no actual or potential conflict contract to be bid; discipline
of interest in the contract to be no actual or potential relevant to the
bid; and conflict of interest in procurement at
b.3. conformed with other relevant the contract to be hand?
criteria determined by the BAC; bid; and
c. at least 3 calendar days prior conformed with other c. One
to the start of the activity relevant criteria representing a
determined by the non-
Implementing Rules and Regulations BAC. government
(IRR) of RA 9184, as amended on organization?
September 2, 2009:
d. With
Section 13. Observers knowledge,
13.1. To enhance the transparency of the experience or
process, the BAC shall, in all stages of the expertise in
procurement process, invite, in addition to procurement or
the representative of the COA, at least in the subject
two (2) observers, who shall not have the matter of the
right to vote, to sit in its proceedings contract to be
where: bid?
a) At least one (1) shall come from a duly
recognized private group in a sector or e. With no actual
discipline relevant to the procurement at or potential
hand, for example: conflict of
i) For infrastructure projects, national interest in the
associations of constructors duly contract to be
recognized by the Construction bid?
Industry Authority of the Philippines
(CIAP), such as, but not limited to f. Conformed with
the following: other relevant
(1) Philippine Constructors criteria
Association, Inc.; determined by
(2) National Constructors Association the BAC?
of the Philippines, Inc.; and
(3) Philippine Institute of Civil 8. From certified copies of Did the BAC invite
Engineers (PICE). the invitations to the the Observers at
ii) Observers with evidence least 3 days before
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iii) and of receipt, compare the the date of the
b) The other observer shall come from a date of receipt with the 3- pre-bid
non-government organization (NGO). day minimum conference?
requirement.
13.2. The observers shall come from an
organization duly registered with the
Securities and Exchange Commission
(SEC) or the Cooperative Development
Authority (CDA), and should meet the
following criteria:
a) Knowledge, experience or expertise in
procurement or in the subject matter of
the contract to be bid;
b) Absence of actual or potential conflict
of interest in the contract to be bid; and
c) Any other relevant criteria that may be
determined by the BAC.
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the contract to be bid.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
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VII. SUPPLEMENTAL / BID BULLETINS
FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
Supplemental/Bid Bulletins may be issued upon the procuring entitys initiative for purposes of
clarifying or modifying any provision of the Bidding Documents at least seven (7) calendar days
before the deadline for the submission and receipt of bids. Any modification to the Bidding
Documents shall be identified as an amendment.
A. AUDIT OBJECTIVE:
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2. To verify if: 3. Obtain copy/ies of Were Requests for
a. requests for Requests for Clarification Clarification
clarification(s) on any and check (date of receipt submitted at least ten
part of the Bidding stamped on the letters) (10) calendar days
whether these were before the deadline
Documents or for an
submitted at least ten (10) set for the submission
interpretation were in calendar days before the and receipt of bids?
writing and submitted to deadline set for the
the BAC of the procuring submission and receipt of
entity at least ten (10) bids.
calendar days before the
deadline set for the
submission and receipt of
bids;
b. the Supplemental/ Bid 4. Obtain duly certified Did the BAC Chairman
Bulletin was duly signed copies of Supplemental/Bid sign the
by the BAC Chairman; Bulletins and check for the Supplemental / Bid
signature of the BAC Bulletin?
c. the Supplemental/ Bid Chairman.
Bulletin was issued at
least seven (7) calendar
days before the deadline
for the submission and
receipt of bid. 5. From the records of the Did the BAC issue
BAC (copies of Supplemental/ Bid
Implementing Rules and Regulations Supplemental/Bid Bulletins Bulletins at
(IRR) of RA 9184, as amended on with evidence of the date of least seven (7)
September 2, 2009: issuance) count the number calendar days before
22.5.1 Requests for clarification(s) of days from said issuance the deadline for the
on any part of the Bidding and the deadline for the submission and
Documents or for an interpretation submission and receipt of receipt of bid?
must be in writing and submitted bids; compare with the 7-
to the BAC of the procuring entity day requirement.
at least ten (10) calendar days
before the deadline set for the
submission and receipt of bids. The
BAC shall respond to the said
request by issuing a
Supplemental/Bid Bulletin, duly
signed by the BAC Chairman, to be
made available to all those who
have properly secured the Bidding
Documents, at least seven (7)
calendar days before the deadline
for the submission and receipt of
bids.
3. To verify if:
6. From the records of the Did the BAC issue
a. Supplemental/Bid Bulletins BAC (copies of Supplemental/ Bid
initiated by the procuring Supplemental/Bid Bulletins Bulletins at
with evidence of the date of least seven (7)
entity for purposes of
issuance) count the number calendar days before
clarifying or modifying any of days from said issuance the deadline for the
provision of the Bidding and the deadline for the submission and
Documents were issued at submission and receipt of receipt of bid?
least seven (7) calendar bids; compare with the 7-
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days before the deadline day requirement.
for the submission and
receipt of bids;
b. Modifications to the
Bidding Documents were
identified as amendments; 7. Go through the contents Did the BAC identify
of Supplemental/Bid modifications to the
c. the Supplemental/ Bid Bulletins and check if Bidding Documents
Bulletin was duly signed by amendments were as amendments?
the BAC Chairman identified as such.
4. To verify if the BAC posted 9. In advance of the posting, Did the BAC post
Supplemental/Bid Bulletins it request the BAC Secretariat Supplemental/Bid
issued on the PhilGEPS and for print-outs (printed on the Bulletins:
day of the posting) of
the website of the procuring
Supplemental/ Bid Bulletins a. on the PhilGEPS?
entity concerned, if available as posted on the PhilGEPS
and at their website. and
Implementing Rules and Regulations b. the website of the
(IRR) of RA 9184, as amended on 10. Obtain the printouts procuring entity
September 2, 2009: requested as evidence of the concerned?
22.5.3 Any Supplemental/ Bid
posting.
Bulletin issued by the BAC shall
also be posted on the PhilGEPS or
[OR was changed to AND per
Annex A of GPPB Resolution No.
06-2009 dated September 30,
2009] the website of the procuring
entity concerned, if available. It
shall be the responsibility of all
those who have properly secured
the Bidding Documents to inquire
and secure Supplemental/Bid
Bulletins that may be issued by the
BAC. However, bidders who have
submitted bids before the issuance
of the Supplemental/Bid Bulletin
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must be informed and allowed to
modify or withdraw their bids in
accordance with Section 26.1 of
the IRR.
5. To verify if the BAC 11. From the BAC records on Did the BAC inform
informed and allowed to submission of bids, identify and allow to modify
modify or withdraw their bids the bidders who have or withdraw their bids
submitted bids before the in accordance with
those bidders who have
issuance of Section 26.1 of the
submitted bids before the
Supplemental/Bid Bulletins. IRR the bidders who
issuance of the have submitted bids
Supplemental/Bid Bulletin 12. Go through copies of before the issuance of
letters sent by the BAC to Supplemental/Bid
Implementing Rules and Regulations these bidders and check if Bulletins?
(IRR) of RA 9184, as amended on they were informed and
September 2, 2009: allowed to modify or
withdraw their bids in
22.5.3 However, bidders who accordance with Section
have submitted bids before the 26.1 of the IRR.
issuance of the Supplemental/
Bid Bulletin must be informed
and allowed to modify or
withdraw their bids in
accordance with Section 26.1 of
the IRR.
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2. To verify the causes of Analyze the instances of
instances of non-compliance non-compliances to establish Appropriate Audit Working Papers
and develop appropriate the cause(s) and develop
audit recommendations appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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VIII. SUBMISSION, RECEIPT, OPENING
& PRELIMINARY EXAMINATION OF BIDS
FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
Bids shall be submitted simultaneously in two (2) separate sealed envelopes and received
by the procuring entity on or before the deadline specified in the Invitation to Bid. Opening of Bids
shall be at the time, date and place specified in the Invitation to Bid.
A. AUDIT OBJECTIVES:
1. To verify if the prescribed conditions and procedures in the submission and receipt of
bids were followed;
2. To verify if the bids were submitted in the prescribed manner, specified forms and
contained all the required information;
3. To verify if the prescribed conditions and procedures in the opening and preliminary
examination of bids were followed.
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25.1. Bidders shall submit their bids Statement.
through their duly authorized
representative using the forms specified in
the Bidding Documents in two (2) separate
sealed bid envelopes, and which shall be
submitted simultaneously. The first shall
contain the technical component of the bid,
including the eligibility requirements under 2. Go through the Did the BAC validate
Section 23.1 of this IRR, and the second Minutes of the Bid if the bidders
shall contain the financial component of the Opening and look for submitted their bids
bid information on the BACs using the forms
validation if each bidder specified in the
adopted the forms Bidding Documents?
specified in the Bidding
Documents.
4. Go through the
Minutes of the Bid
Opening and look for
information pertaining to
opening of two (2)
sealed envelops of each
bidder.
2. To verify if the 5. Go through the Did the BAC validate
BAC validated that in modifying a records of the BAC that the bidders
bid: pertaining to the concerned submitted
submission of bids of their bid
each bidder and check if modifications before
a. it was done before the deadline
the submission of the deadline for the
for the submission and receipt of modifications were done submission and
bids, before the deadline for receipt?
the submission and
b. the original bid was not retrieved receipt.
but another bid equally sealed,
properly identified, was submitted 6. Go through the Did the BAC validate
and linked to the original bid and Minutes of the Bid if the bidders
marked as a modification, Opening and look for concerned did not
information on the BACs retrieve the original
thereof, and stamped received
activities validating if: bid but merely
by the BAC a. bidders did not submitted another
retrieve the original bid equally sealed,
Implementing Rules and Regulations (IRR) of bid but merely properly identified,
RA 9184, as amended on September 2, 2009: submitted another and linked to the
26.1. A bidder may modify its bid, provided equally sealed and original bid and
that this is done before the deadline for the properly identified as marked as a
submission and receipt of bids. Where a modification and modification,
bidder modifies its bid, it shall not be stamped received thereof, and
allowed to retrieve its original bid, but shall by the BAC; and stamped received
only be allowed to send another bid equally b. linked to the original by the BAC?
sealed, properly identified, linked to its
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original bid and marked as a modification, bid (not withdrawn).
thereof, and stamped received by the
BAC. Bid modifications received after the
applicable deadline shall not be considered
and shall be returned to the bidder
unopened.
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OPENING & PRELIMINARY EXAMINATION OF BIDS FOR THE
PROCUREMENT OF INFRASTRUCTURE PROJECTS
1. To verify if the BAC observed 1. From the Office Was there a quorum
quorum. Order creating the BAC, of the BAC?
determine the number
Implementing Rules and Regulations (IRR) of of BAC members and
RA 9184, as amended on September 2, 2009: identify the Chairman or
12.3 Quorum Vice-Chairman.
A majority of the total BAC composition as
designated by the Head of the Procuring Entity 2. From the Minutes of
shall constitute a quorum for the transaction Opening of Bids, check
of business, provided that the presence of the for the presence of the
Chairman or Vice-Chairman shall be required. Chairman or Vice-
Chairman and if
majority of the BAC
members or
representatives/alternat
es attended the
proceedings.
2. To verify if the BAC opened the 3. Compare the date Did the BAC open the
bids immediately after the deadline and time of the opening bids immediately after
for the submission and receipt of of bids indicated in the the deadline for the
bids and at the: Minutes of the Opening submission and
of Bids with the receipt of bids?
a. date, deadline for submission
b. time, and and receipt of bids Did the BAC open the
c. place stated in the Bidding bids on the date
specified in the Invitation to Bid Documents. specified in the
Invitation to Bid?
Implementing Rules and Regulations (IRR) of 4. Compare the date,
RA 9184, as amended on September 2, 2009: time and place of the Did the BAC open the
29. Bid Opening opening of bids bids on the time
The BAC shall open the bids immediately indicated in the Minutes specified in the
after the deadline for the submission and of the Opening of Bids Invitation to Bid?
receipt of bids. [GPPB Resolution No. 13- with those specified in
2009, dated 16 December 2009] The time, the Invitation to Bid. Did the BAC open the
date, and place of the opening of bids shall bids at the place
be specified in the Bidding Documents. The specified in the
bidders or their duly authorized Invitation to Bid?
representatives may attend the opening of
bids. The BAC shall adopt a procedure for
ensuring the integrity, security, and
confidentiality of all submitted bids. The
minutes of the bid opening shall be made
available to the public upon written request
and payment of a specified fee to recover
cost of materials.
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registered mail and returning the the deadline for
withdrawn bid submission and
Philippine Bidding Documents for the unopened. receipt of bids, return
Procurement of Infrastructure Projects, 3rd the bids unopened to
edition (October 2009) approved per GPPB Also check for evidence representatives of the
Resolution No. 05-2009 dated 30 September of the return of the bidders concerned
2009: withdrawn bids from present during the
acknowledged bid opening?
23. Modification and Withdrawal of Bids registered mails.
7.2. c. if the withdrawal of
7.3. A Bidder may, through a bid was made before
letter of withdrawal, withdraw its bid the deadline for
after it has been submitted, for valid and submission and
justifiable reason; provided that the letter receipt of bids, return
of withdrawal is received by the withdrawn bids
Procuring Entity prior to the deadline unopened by
prescribed for submission and receipt of registered mail?
bids.
7.4. Bids requested to be 6. From the Minutes of Did the BAC forfeit
withdrawn in accordance with ITB Clause the Bid Opening, check the bid security and
23.1, shall be returned unopened to the for information on recommend the
Bidders. A Bidder may also express its withdrawals of bids imposition of
intention not to participate in the bidding made after the deadline sanctions on bidders
through a letter which should reach and for submission and who withdrew their
be stamped by the BAC before the receipt of bids up to the bids during the
deadline for submission and receipt of expiration of the period interval between the
bids. A Bidder that withdraws its bid of bid validity specified deadline for
shall not be permitted to submit another by the bidder in the submission of bids
bid, directly or indirectly, for the same financial bid form; and and the expiration of
contract. for information on the period of bid
7.5. No bid may be modified forfeiture of bid security validity specified by
after the deadline for submission of bids. and imposition of the Bidder on the
No bid may be withdrawn in the interval sanctions on these Financial Bid Form?
between the deadline for submission of bidder.
bids and the expiration of the period of
bid validity specified by the Bidder on the
Financial Bid Form. Withdrawal of a bid
during this interval shall result in the
forfeiture of the Bidders bid security,
pursuant to ITB Clause 18.5, and the
imposition of administrative, civil, and
criminal sanctions as prescribed by RA
9184 and its IRR.
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for the submission and receipt of bids,
provided that the corresponding Letter of
Withdrawal contains a valid authorization
requesting for such withdrawal, subject to
appropriate sanctions.
4. To verify if the BAC opened the 7. From the Attendance Did the BAC open the
first bid envelopes of the bidders in Record/Minutes of the first bid envelopes of
public Opening of Bids check if the bidders in public?
the participants
Implementing Rules and Regulations (IRR) of included bidders and
RA 9184, as amended on September 2, 2009: observers.
30.1. The BAC shall open the first bid
envelopes of prospective bidders in public
to determine each bidders compliance with
the documents required to be submitted for
eligibility and for the technical
requirements, as prescribed in this IRR. For
this purpose, the BAC shall check the
submitted documents of each bidder
against a checklist of required documents
to ascertain if they are all present, using a
nondiscretionary pass/fail criterion, as
stated in the Instructions to Bidders. If a
bidder submits the required document, it
shall be rated passed for that particular
requirement. In this regard, bids that fail to
include any requirement or are incomplete
or patently insufficient shall be considered
as failed. Otherwise, the BAC shall rate
the said first bid envelope as passed
5. To verify if the BAC determined 8. Compare the Did the BAC adopt a
compliance of each bidder with the Checklist for the first Checklist for the first
documents required to be submitted envelope adopted by envelope in
the BAC with the list of accordance with the
in the first envelope by checking the
documents in the first list of documents in
submitted documents of each bidder envelope per Bidding the first envelope per
against a checklist of required Documents. Bidding Documents?
documents to ascertain if they are all
present, using a nondiscretionary 9. Determine if the Did the BAC
pass/fail criterion, as stated in the BACs entries in the determine each
Instructions to Bidders Checklist are complete. bidders compliance
with the documents
Implementing Rules and Regulations (IRR) of required to be
RA 9184, as amended on September 2, 2009: submitted in the first
30.1. The BAC shall open the first bid envelope:
envelopes of prospective bidders in public to
determine each bidders compliance with the a. Registration
documents required to be submitted for certificate from
eligibility and for the technical requirements, SEC, Department
as prescribed in this IRR. For this purpose, of Trade and
the BAC shall check the submitted documents Industry (DTI) for
of each bidder against a checklist of required sole
documents to ascertain if they are all present, proprietorship, or
using a nondiscretionary pass/fail criterion, CDA for
cooperatives, or
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as stated in the Instructions to Bidders. If a any proof of such
bidder submits the required document, it shall registration as
be rated passed for that particular stated in the
requirement. In this regard, bids that fail to Bidding
include any requirement or are incomplete or Documents?
patently insufficient shall be considered as
failed. Otherwise, the BAC shall rate the b. In a Joint
said first bid envelope as passed. Venture, each
partners
25.2. The first envelope shall contain the Registration
following technical information/ documents, certificate from
at the least: SEC, Department
a) of Trade and
b) For the procurement of infrastructure Industry (DTI) for
projects: sole
i) Eligibility requirements under Section proprietorship, or
23.1 of this IRR; CDA for
ii) The bid security in the prescribed form, cooperatives, or
amount and validity period; any proof of such
iii) Project Requirements, which shall registration as
include the following: stated in the
(1) Organizational chart for the contract to Bidding
be bid; Documents?
(2) List of contractors personnel (viz,
Project Manager, Project Engineers, c. Mayors permit
Materials Engineers, and Foremen), to be issued by the city
assigned to the contract to be bid, with or municipality
their complete qualification and where the
experience data; principal place of
(3) List of contractors equipment units, business of the
which are owned, leased, and/or under prospective bidder
purchase agreements, supported by is located?
certification of availability of equipment
from the equipment lessor/vendor for the d. In a Joint Venture,
duration of the project; each partners
iv) Sworn statement by the prospective Mayors permit
bidder or its duly authorized representative issued by the city
in the form prescribed by the GPPB as to or municipality
the following: where the
(1) It is not blacklisted or barred from principal place of
bidding by the GOP or any of its business of the
agencies, offices, corporations, or LGUs, prospective bidder
including foreign government/foreign or is located?
international financing institution whose
blacklisting rules have been recognized e. Statement of the
by the GPPB; prospective bidder
(2) Each of the documents submitted in of all its ongoing
satisfaction of the bidding requirements and completed
is an authentic copy of the original, government and
complete, and all statements and private contracts,
information provided therein are true and including contracts
correct; awarded but not
(3) It is authorizing the Head of the yet started, if any,
Procuring Entity or his duly authorized whether similar or
representative/s to verify all the not similar in
documents submitted; nature and
(4) The signatory is the duly authorized complexity to the
representative of the prospective bidder, contract to be bid,
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and granted full power and authority to within the relevant
do, execute and perform any and all acts period as provided
necessary and/or to represent the in the Bidding
prospective bidder in the bidding, with Documents?
the duly notarized Secretarys Certificate
attesting to such fact, if the prospective e.1. In a Joint
bidder is a corporation, partnership, Venture, any
cooperative, or joint venture; partners
(5) It complies with the disclosure provision statement of all its
under Section 47 of the Act in relation to ongoing and
other provisions of R.A. 3019; completed
(6) It complies with the responsibilities of a government and
prospective or eligible bidder provided in private contracts,
the PBDs; and including contracts
(7) It complies with existing labor laws and awarded but not
standards, in the case of procurement of yet started, if any
services.
f. The bidders
23.1. For purposes of determining the audited financial
eligibility of bidders using the criteria stated in statements,
Section 23.5 of this IRR, only the following showing, among
documents shall be required by the BAC, others, the
using the forms prescribed in the Bidding prospective
Documents,: bidders total and
current assets and
a) Class A Documents
liabilities, stamped
Legal Documents received by the
i) Registration certificate from SEC, BIR or its duly
Department of Trade and Industry (DTI) accredited and
for sole proprietorship, or CDA for authorized
cooperatives, or any proof of such institutions, for the
registration as stated in the Bidding preceding calendar
Documents. year which should
ii) Mayors permit issued by the city or not be earlier than
municipality where the principal place of two (2) years from
business of the prospective bidder is the date of bid
located. submission?
Technical Documents
iii) Statement of the prospective bidder of f.1. In a Joint
all its ongoing and completed Venture, any
government and private contracts, partners audited
including contracts awarded but not yet financial statement
started, if any, whether similar or not
similar in nature and complexity to the
contract to be bid, within the relevant g. The bidders
period as provided in the Bidding computation for its
Documents. The statement shall include Net Financial
all information required in the PBDs Contracting
prescribed by the GPPB. Capacity (NFCC)
iv) In the case of procurement of or a commitment
infrastructure projects, a valid Philippine from a Universal
Contractors Accreditation Board (PCAB) or Commercial
license and registration for the Bank to extend a
type and cost of the contract to be bid credit line in favor
of the prospective
Financial Documents bidder if awarded
v) The prospective bidders audited the contract to be
financial statements, showing, among bid (CLC)?
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others, the prospective bidders total and
current assets and liabilities, stamped g.1. In a Joint
received by the BIR or its duly Venture, any
accredited and authorized institutions, for partners NFCC or
the preceding calendar year which should CLC
not be earlier than two (2) years from
the date of bid submission. h. Valid joint venture
vi) The prospective bidders computation Agreement (JVA),
for its Net Financial Contracting Capacity in case the joint
(NFCC) or a commitment from a venture is already
Universal or Commercial Bank to extend in existence.
a credit line in favor of the prospective
bidder if awarded the contract to be bid In the absence
(CLC). of a JVA, duly
notarized
b) Class B Document statements from
Valid joint venture Agreement (JVA), in all the potential
case the joint venture is already in joint venture
existence. In the absence of a JVA, duly partners stating
notarized statements from all the potential that they will enter
joint venture partners stating that they will into and abide by
enter into and abide by the provisions of the provisions of
the JVA in the instance that the bid is the JVA in the
successful shall be included in the bid. instance that the
Failure to enter into a joint venture in the bid is successful?
event of a contract award shall be ground
for the forfeiture of the bid security. Each i. The bid security in
partner of the joint venture shall submit the the prescribed:
legal eligibility documents. The submission a. form?
of technical and financial eligibility b. amount?
documents by any of the joint venture c. validity
partners constitutes compliance. period?
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and
Amount of experience
Bid Security data?
Form of Bid Security (Equal to c. List of
Percentage contractors
of the ABC) equipment
a) Cash or cashiers/ managers
units, which
check issued by a Universal or Two
Commercial Bank. percent are owned,
b) Bank draft/ guarantee or (2%) leased, and/or
irrevocable letter of credit issued under
by a Universal or Commercial purchase
Bank: Provided, however, that it agreements,
shall be confirmed or authentic- supported by
ated by a Universal or certification of
Commercial Bank, if issued by a
availability of
foreign bank.
c) Surety bond callable upon
equipment
demand issued by a surety or Five from the
insurance company duly certified percent equipment
by Insurance Commission as (5%) lessor/vendor
authorized to issue such security. for the
d) Any combination of the Proportion- duration of
foregoing. ate to share the project?
of form
with respect
k. Sworn statement
to total
amount of by the prospective
security bidder or its duly
authorized
For biddings conducted by LGUs, the representative in
prospective bidder may also submit bid the form
securities in the form of cashiers/managers prescribed by the
check, bank draft/guarantee, or irrevocable GPPB as to the
letter of credit from other banks certified by following:
the BSP as authorized to issue such financial (1) It is not
instrument. blacklisted or
barred from
27.3. The bid security shall be denominated bidding by the
in Philippine Pesos and posted in favor of the GOP or any of
procuring entity. its agencies,
offices,
Section 47. Disclosure of Relations corporations, or
All bids shall be accompanied by a sworn LGUs, including
affidavit of the bidder that it is not related to foreign
the Head of the Procuring Entity, members of government/
the BAC, the TWG, and the BAC Secretariat, foreign or
the head of the PMO or the end-user unit, and international
the project consultants, by consanguinity or financing
affinity up to the third civil degree. Failure to institution
comply with the aforementioned provision whose
shall be a ground for the automatic blacklisting rules
disqualification of the bid in consonance with have been
Section 30 of this IRR. For this reason, relation recognized by
to the aforementioned persons within the third the GPPB?
civil degree of consanguinity or affinity shall (2) Each of the
automatically disqualify the bidder from documents
participating in the procurement of contracts submitted in
of the procuring entity. On the part of the satisfaction of
bidder, this provision shall apply to the the bidding
following persons: requirements is
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a) If the bidder is an individual or a sole an authentic
proprietorship, to the bidder himself; copy of the
b) If the bidder is a partnership, to all its original,
officers and members; complete, and
c) If the bidder is a corporation, to all its all statements
officers, directors, and controlling and information
stockholders; and provided therein
d) If the bidder is a joint venture, the are true and
provisions of items (a), (b), or (c) of this correct?
Section shall correspondingly apply to each (3) It is
of the members of the said joint venture, authorizing the
as may be appropriate Head of the
Procuring Entity
or his duly
authorized
representative/s
to verify all the
documents
submitted?
(4) The signatory
is the duly
authorized
representative
of the
prospective
bidder, and
granted full
power and
authority to do,
execute and
perform any and
all acts
necessary
and/or to
represent the
prospective
bidder in the
bidding, with
the duly
notarized
Secretarys
Certificate
attesting to such
fact, if the
prospective
bidder is a
corporation,
partnership,
cooperative, or
joint venture?
(5) It complies
with the
disclosure
provision under
Section 47 of
the Act in
relation to other
provisions of
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R.A. 3019?
(6) It complies
with the
responsibilities
of a prospective
or eligible bidder
provided in the
PBDs?
(7) It complies
with existing
labor laws and
standards, in
the case of
procurement of
services?
6. To verify if the BAC opened the 10. From the Checklists Did the BAC open
second envelopes of the bidders of the first envelope only the second
whose first envelopes were rated and Minutes of the Bid envelopes of the
passed on the same day and Opening identify the bidders whose first
bidders who were rated envelopes were rated
determined compliance with the
passed. passed?
requirements using a
nondiscretionary pass/fail
criterion, as stated in the
Instructions to Bidders 11. From the Minutes of Did the BAC open the
the Bid Opening, check second envelopes on
Implementing Rules and Regulations (IRR) of if the second envelopes the same day when
RA 9184, as amended on September 2, 2009: of the bidders who were the first envelopes
30.2 Immediately after determining rated passed was were opened?
compliance with the requirements in the opened by the BAC on
first envelope, the BAC shall forthwith open the same day when the
the second bid envelope of each remaining first envelopes were
eligible bidder whose first bid envelope was opened.
rated passed. The second envelope of
each complying bidder shall be opened 12. Compare the Was the BACs
within the same day In case one or more Checklist with the list of Checklist in
of the requirements in the second envelope documents in the accordance with the
of a particular bid is missing, incomplete or second envelope per list of documents in
patently insufficient, and/or if the Bidding Documents. the second envelope
submitted total bid price exceeds the ABC, per Bidding
the BAC shall rate the bid concerned as Documents?
failed. Only bids that are determined to
contain all the bid requirements for both
components shall be rated passed and 13. Validate the entries Did the BAC
shall immediately be considered for (pass/fail) in the determine each
evaluation and comparison. Checklist with the bidders compliance
25.3. The second envelope shall contain documents submitted with the financial
the financial information/documents as by the bidders in the information/document
specified in the PBDs. second envelope (for s required to be
presence or absence). submitted in the
Philippine Bidding Documents (PBDs) for second envelope:
the Procurement of Infrastructure
Projects, 3rd Edition, (October 2009) (a) Bidding Forms
approved by the GPPB per GPPB Resolution
No. 06-2009 dated September 30, 2009: a.1 Bid Form?
Documents Comprising the Bid: Financial
a.2 Form of
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Component Contract
13.1. Unless otherwise stated in the Bid Agreement?
Data Sheets, the financial component of
the bid shall contain the following: a.3. Omnibus
a. Financial Bid Form in accordance with Sworn
the form prescribed in Section IX, Statement?
Bidding Forms; and
b. Any other document required in the
Bid Data Sheets.
13.2. Unless indicated in the BDS, all bids
that exceed the ABC shall not be accepted.
14. From the Minutes Did the BAC
31.1 The ABC shall be the upper limit or of Bid Opening, Abstract automatically
ceiling for acceptable bid prices. If a bid of Bids as Read, and disqualify bids higher
price, as evaluated and calculated in relevant BAC than the ABC?
accordance with this IRR, is higher than the Resolutions check if
ABC, the bidder submitting the same shall bids higher than the
be automatically disqualified. There shall be ABC were automatically
no lower limit or floor on the amount of the disqualified.
award.
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reconsideration up to
the date of decision
(BAC Resolution) on the
decision reached; and
compare with the 7-day
maximum period.
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iii) and
b) The other observer shall come from a non-
government organization (NGO).
2. To verify if the Procuring Entity 3. Based on the BACs Did the Procuring
considered the Minutes on the bid Entity consider the
comments/observations of the opening and preliminary comments/
evaluation of bids and observations of the
Observers
the report of the Observers?
Observers check
Implementing Rules and Regulations (IRR) of whether a deliberation
RA 9184, as amended on September 2, 2009: was made on the
13.4. The observers shall have the
comments
following responsibilities: /observations of the
a) To prepare the report either jointly or
observers.
separately indicating their observations
made on the procurement activities
conducted by the BAC for submission to the
Head of the Procuring Entity, copy
furnished the BAC Chairman. The report
shall assess the extent of the BACs
compliance with the provisions of this IRR
and areas of improvement in the BACs
proceedings;
b) To submit their report to the procuring
entity and furnish a copy to the GPPB and
Office of the Ombudsman/Resident
Ombudsman. If no report is submitted
by the observer, then it is understood
that the bidding activity conducted by
the BAC followed the correct
procedure; and
c) To immediately inhibit and notify in writing
the procuring entity concerned of any
actual or potential interest in the contract
to be bid.
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the following documents upon their
request, subject to signing of a
confidentiality agreement: (a) minutes of
BAC meetings; (b) abstract of Bids;
(c) post-qualification summary report;
(d) APP and related PPMP; and (e)
opened proposals.
Also determine if
appropriate actions
were taken by the
auditee in regard to
instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this Audit
Guide.
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3. To communicate the results of the Prepare the appropriate
audit with the auditees audit/ validation Audit Observation Memorandum (AOM), if
Management document reflecting the applicable
results of the
COA Circular No. 2009-006 dated September audit/validation and
15, 2009 re- Prescribing the Use of the transmit to
Rules and Regulations on Settlement of Management
Accounts
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IX. BID EVALUATION
FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
The purpose of bid evaluation is to determine the Lowest Calculated Bid. This is done by
establishing the correct calculated prices of the bids and ranking in ascending order the total bid
prices as so calculated. The bid with the lowest price is the LCB.
A. AUDIT OBJECTIVES:
1. To verify if the BAC adopted the required conditions and procedures in the bid
evaluation;
2. To verify if the BAC followed the required timeline in the conduct of bid evaluation.
2. To verify if the BAC 2. From the TWG report, as Did the BAC evaluate
considered completeness reviewed by the BAC, the completeness of the
Minutes of the BAC meeting financial component of
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and arithmetical on bid evaluation, and the bids?
corrections of the financial Resolution of the BAC
component of the bids in declaring the bidder with the
the detailed evaluation Lowest Calculated Bid (LCB), Did the BAC consider
look for the information on non-responsive and,
Implementing Rules and Regulations the evaluation of thus, automatically
(IRR) of RA 9184, as amended on completeness of financial disqualified bids not
September 2, 2009: component of the bids. addressing or providing
all of the required items
32.2.1 The BAC shall
in the Bidding
immediately conduct a detailed
Documents?
evaluation of all bids using non-
discretionary criteria in considering
the following:
Did the BAC consider
a. Completeness of the bid non-responsive and,
Unless the Instruction to Bidders
thus, automatically
specifically allow partial bids, bids
disqualified bids that did
not addressing or providing all of
not indicate the price
the required items in the Bidding
for a required item?
Documents including, where
applicable, bill of quantities, shall
be considered non-responsive
3. From the TWG report, as Did the BAC evaluate
and, thus, automatically
reviewed by the BAC, the arithmetical
disqualified. In this regard, where
Minutes of the BAC meeting accuracy of financial
a required item is provided, but no
on bid evaluation, and components of bids:
price is indicated, the same shall
Resolution of the BAC
be considered as non-responsive,
declaring the bidder with the d. computational
but specifying a 0 (zero) for the
Lowest Calculated Bid (LCB), errors?
said item would mean that it is
look for the information on
being offered for free to the
the evaluation of e. omissions?
Government; and
arithmetical accuracy of
b. Arithmetical corrections financial component of the f. other bid
Consider computational errors bids. modification, if
and omissions to enable proper allowed in the
comparison of all eligible bids. Bidding Documents?
It may also consider bid
modifications if expressly
allowed in the Bidding
Documents [AS AMENDED BY
GPPB RESOLUTION NO. 06-
2009 DATED SEPT 30, 2009].
Any adjustment shall be
calculated in monetary terms
to determine the calculated
prices.
32.2.2. The BAC shall evaluate
all bids on an equal footing to ensure
fair and competitive bid comparison.
For this purpose, all bidders shall be
required to include the cost of all
taxes, such as, but not limited to,
value added tax (VAT), income tax,
local taxes, and other fiscal levies and
duties which shall be itemized in the
bid form and reflected in the detailed
estimates. Such bids, including said
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taxes, shall be the basis for bid
evaluation and comparison.
32.2.3. In case of discrepancies
between: (a) bid prices in figures and
in words, the latter shall prevail; (b)
total price per item and unit price for
the item as extended or multiplied by
the quantity of that item, the latter
shall prevail; (c) stated total price
and the actual sum of prices of
component items, the latter shall
prevail; (d) unit cost in the detailed
estimate and unit cost in the bill of
quantities, the latter shall prevail.
3. To verify if the BAC 4. Analyze the TWG report Did the BAC disqualify
disqualified bidders whose with supporting documents bidders whose bids as
bids as calculated were and duly reviewed by the calculated were higher
BAC, Minutes of the BAC than the ABC?
higher than the ABC
meeting on bid evaluation,
Implementing Rules and Regulations Abstract of Bids as
(IRR) of RA 9184, as amended on Calculated, and Resolution
September 2, 2009: of the BAC declaring the
bidder with the Lowest
31.1 The ABC shall be the Calculated Bid (LCB), and
upper limit or ceiling for check if the BAC disqualified
acceptable bid prices. If a bid bidders whose bids are
price, as evaluated and calculated higher than the ABC.
in accordance with this IRR, is
higher than the ABC, the bidder
submitting the same shall be
automatically disqualified. There
shall be no lower limit or floor on
the amount of the award.
4. To verify if the BAC 5. Check for completeness Did the BAC prepare the
prepared the Abstract of Bids of the information contained Abstract of Bids as
as Calculated with the in the Abstract of Bids as calculated with the
Calculated and if this was following information:
required information
signed by the members of
Implementing Rules and Regulations the BAC. a. Name of the
(IRR) of RA 9184, as amended on contract?
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September 2, 2009:
b. Location?
5. To verify if the BAC 6. Analyze the TWG report, Did the BAC declare
declared rank 1 in the as reviewed by the BAC, rank 1 in the Abstract of
Abstract of Bids as Calculated Minutes of the BAC meeting Bids as Calculated as
on bid evaluation, Abstract the bidder with the
as the bidder with the Lowest
of Bids as Calculated, and Lowest Calculated Bid
Calculated Bid (LCB)
Resolution of the BAC (LCB)?
Implementing Rules and Regulations declaring the bidder with the
(IRR) of RA 9184, as amended on Lowest Calculated Bid (LCB),
September 2, 2009: and check if rank 1 in the
32.2.4. Bids shall then be ranked Abstract was declared as the
in the ascending order of their bidder with the Lowest
total calculated bid prices, as Calculated Bid (LCB).
evaluated and corrected for
computational errors, and other
bid modifications, to identify the
Lowest Calculated Bid. Total
calculated bid prices, as evaluated
and corrected for computational
errors, and other bid
modifications, which exceed the
ABC shall be disqualified.
6. To verify if the BAC notified 7. Obtain a copy of the Did the BAC notify the
notice issued by the BAC to bidder with the LCB?
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the bidder with the LCB the bidder with the LCB and
Implementing Rules and Regulations check for receipt by the
(IRR) of RA 9184, as amended on bidder.
September 2, 2009:
34.2. Within three (3) calendar
days from receipt by the bidder of
the notice from the BAC that the
bidder has the Lowest Calculated
Bid or Highest Rated Bid, the
bidder shall submit the following
documentary requirements to the
BAC:
7. To verify if the BAC 8. From the Invitation to Bid Did the BAC complete
completed the evaluation of and the Minutes of Bid the evaluation process
bids within seven (7) Evaluation determine the within seven (7)
number of days from the calendar days from the
calendar days from the
deadline for receipt of deadline for receipt of
deadline for receipt of
proposals and the proposal?
proposals (5 calendar days completion of the bid (5 days for projects
for infrastructure projects evaluation. costing P50 million and
costing P50 million and below)?
below)
8. To verify if the BAC invited 9. From the Minutes of the Did the BAC choose the
Observers: BAC meeting on the Observers considering:
a. representing the COA, the selection of the Observer
duly recognized private group from the pool, check for a. one representing the
in a sector or discipline information on the BACs COA?
relevant to the procurement evaluation in regard to:
at hand, and a non- the selection of the b. One representing the
government organization organization from which duly recognized
(NGO) from the procuring the Observer will be private group in a
entitys Pool of Observers; invited; sector or discipline
b. that have: knowledge, experience or relevant to the
expertise in procurement procurement at
b.1. knowledge, experience or hand?
expertise in procurement or in or in the subject matter
the subject matter of the of the contract to be bid;
no actual or potential c. One representing a
contract to be bid;
conflict of interest in the non-government
b.2. no actual or potential organization?
conflict of interest in the contract to be bid; and
contract to be bid; and conformed with other
relevant criteria d. With knowledge,
b.3. conformed with other experience or
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relevant criteria determined by determined by the BAC. expertise in
the BAC; procurement or in
c. at least 3 calendar days the subject matter of
prior to the start of the the contract to be
activity bid?
e. With no actual or
Implementing Rules and Regulations potential conflict of
(IRR) of RA 9184, as amended on interest in the
September 2, 2009: contract to be bid?
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9. To verify if the Procuring 10. Based on the BACs Did the Procuring Entity
Entity considered the Minutes on the bid consider the comments/
comments/observations of evaluation and the report of observations of the
the Observers check Observers?
the Observers
whether a deliberation was
made on the comments
Implementing Rules and Regulations /observations of the
(IRR) of RA 9184, as amended on observers.
September 2, 2009:
13.4. The observers shall have the
following responsibilities:
a) To prepare the report either
jointly or separately indicating
their observations made on the
procurement activities conducted
by the BAC for submission to the
Head of the Procuring Entity, copy
furnished the BAC Chairman. The
report shall assess the extent of
the BACs compliance with the
provisions of this IRR and areas of
improvement in the BACs
proceedings;
b) To submit their report to the
procuring entity and furnish a
copy to the GPPB and Office of the
Ombudsman/Resident
Ombudsman. If no report is
submitted by the observer,
then it is understood that the
bidding activity conducted by
the BAC followed the correct
procedure; and
c) To immediately inhibit and notify
in writing the procuring entity
concerned of any actual or
potential interest in the contract to
be bid.
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Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
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NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the Prepare the appropriate
results of the audit with the audit/ validation document Audit Observation Memorandum (AOM), if applicable
auditees Management reflecting the results of the
audit/validation and transmit
COA Circular No. 2009-006 dated to Management
September 15, 2009 re- Prescribing
the Use of the Rules and
Regulations on Settlement of
Accounts
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X. POST-QUALIFICATION
FOR THE FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
The Lowest Calculated Bid (LCB) shall undergo post-qualification in order to determine
whether the bidder concerned complies with and is responsive to all the requirements and
conditions as specified in the Bidding Documents.
A. AUDIT OBJECTIVES:
1. To verify if the BAC adopted the required conditions and procedures in the conduct of
post-qualification;
2. To verify if the BAC followed the required timeline in the conduct of post-qualification.
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1. To verify whether the bidder 1. From the records of the Did the bidder with
whose bid was declared as the BAC, count the number of the LCB:
Lowest Calculated Bid (LCB)/ days from the date when
Single Calculated Bid (SCB) the bidder with the LCB a. submit within 3
received the notice and the calendar days
submitted the following
date it submitted the: a) Tax from receipt of
documents within 3 calendar clearance, b) Latest income the notice as
days from the bidders receipt and business tax returns, c) LCB?
of the notice: Certificate of PhilGEPS
a) Tax clearance; Registration; and d) Other b. Tax Clearance?
b) Latest income and business appropriate licenses and
tax returns; permits required by law and c. Latest income
c) Certificate of PhilGEPS stated in the Bidding and business tax
Documents. returns?
Registration; and
d) Other appropriate licenses Compare this with the d. Certificate of
and permits required by law required maximum 3-day PhilGEPS
and stated in the Bidding period. Registration?
Documents
e. Other
Implementing Rules and Regulations appropriate
(IRR) of RA 9184, as amended on licenses and
September 2, 2009: permits required
34.2. Within three (3) calendar days by law and
from receipt by the bidder of the stated in the
notice from the BAC that the bidder Bidding
has the Lowest Calculated Bid or Documents?
Highest Rated Bid, the bidder shall
submit the following documentary
requirements to the BAC:
a) Tax clearance;
b) Latest income and business tax
returns;
c) Certificate of PhilGEPS
Registration; and
d) Other appropriate licenses and
permits required by law and
stated in the Bidding Documents.
2. To verify if the BAC: 2. If based on the validation Did the BAC forfeit
2.1. determined the veracity of conducted in 1. above, the the bid security and
the documents submitted submissions were found to disqualify the
and be incomplete and/or not on bidder for award
time, obtain a copy of the because of failure
2.2. forfeited the bid security BAC Resolution disqualifying to submit the
and disqualified the bidder the bidder and forfeiting its required documents
for award for reason that; bid security. on time?
a. the bidder failed to
submit the required 3. Obtain from the BAC Did the BAC forfeit
documents on time, Secretariat documents the bid security and
and/or evidencing the BACs disqualify the
b. there was a finding validation of the veracity of bidder for award
against the veracity of the the documents submitted because of a
and the information thereon finding against the
documents/ information
and check the results of veracity of the
such validation. documents/
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information?
Implementing Rules and Regulations If the BAC had a finding
(IRR) of RA 9184, as amended on against the veracity of the
September 2, 2009: documents/ information
34.2.Within three (3) calendar days thereon, obtain a copy of
from receipt by the bidder of the the BAC Resolution
notice from the BAC that the bidder disqualifying the bidder and
has the Lowest Calculated Bid or forfeiting its bid security.
Highest Rated Bid, the bidder shall
submit the following documentary
requirements to the BAC:
a) Tax clearance;
b) Latest income and business tax
returns;
c) Certificate of PhilGEPS Registration;
and
d) Other appropriate licenses and
permits required by law and stated
in the Bidding Documents.
3. To verify if the BAC 4. Match the name of the Did the BAC subject
subjected the bidder with the bidder with the LCB as the bidder with the
Lowest Calculated Bid (LCB) to indicated in the BAC Lowest Calculated
Resolution declaring the LCB Bid (LCB) to post-
post-qualification
with the name of the bidder qualification?
Implementing Rules and Regulations indicated in the TWGs Post-
(IRR) of RA 9184, as amended on Qualification Report, as
September 2, 2009: reviewed by the BAC and in
the Minutes of the BAC
34.1 The Lowest Calculated Bid shall meetings.
undergo post-qualification in order to
determine whether the bidder
concerned complies with and is
responsive to all the requirements
and conditions as specified in the
Bidding Documents.
4. To verify if the BAC verified, 5. From the TWG report with Did the BAC
validated, and ascertained that supporting documents and validate the
the bidder with the LCB is: duly reviewed by the BAC, authenticity of the
and the Minutes of BAC Registration
meetings, look for documents
a. a duly licensed Filipino
information evidencing submitted by the
citizen/sole proprietor, or validation of the authenticity bidder?
b. a Partnerships duly of the:
organized under the laws of
a) DTI Registration
the Philippines and of which
Certificate, duly supported
at least seventy five percent with:
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the Answer
(75%) of the interest the DTI-certified copy
belongs to citizens of the of the Registration
Philippines, or Certificate and
DTI certificate that the
c. a Corporation duly organized
sole proprietor is a
under the laws of the Filipino citizen (based
Philippines, and of which at on the application for
least seventy five percent registration filed by the
(75%) of the outstanding bidder with the DTI),
capital stock belongs to if the bidder is a sole
citizens of the Philippines, or proprietorship;
d. Cooperatives duly organized
under the laws of the b. SEC registration and of
the 75% Filipino
Philippines, and of which at ownership, duly
least seventy five percent supported with:
(75%) belongs to citizens of the SEC-certified
the Philippines, or copy of the
e. Joint Venture - that Filipino Registration
ownership or interest of the Certificate,
joint venture concerned shall if the bidder is a
be at least seventy five partnership;
percent (75%)
c. SEC registration and of
the 60% Filipino
Implementing Rules and Regulations ownership, duly
(IRR) of RA 9184, as amended on
supported with:
September 2, 2009:
SEC-certified copy of
34.3. The post-qualification shall
the Registration
verify, validate, and ascertain all Certificate and
statements made and documents
SEC-certified copy of
submitted by the bidder with the
the Articles of
Lowest Calculated Bid/Highest Rated Incorporation
Bid, using non-discretionary criteria,
if the bidder is a
as stated in the Bidding Documents.
corporation.
These criteria shall consider, but
shall not be limited to, the following:
a) Legal Requirements. To verify,
d. CDA registration and of
validate, and ascertain licenses,
the 75% Filipino
certificates, permits, and
ownership, duly
agreements submitted by the
supported with:
bidder, and the fact that it is not
CDA-certified copy of
included in any blacklist as
the Registration
provided in Section 25.2 of this
Certificate and
IRR. For this purpose, the GPPB
CDA certificate that
shall maintain a consolidated file
at least sixty percent
of all blacklisted suppliers,
(60%) belongs to
contractors, and consultants.
citizens of the
Philippines
if the bidder is a
23.5.2. For the procurement of cooperative
infrastructure projects:
23.5.2.1. The following e. Joint Venture individual
persons/entities shall be allowed to partners:
participate in the bidding DTI, SEC, or CDA
for infrastructure projects: registrations and
a) Duly licensed Filipino citizens/sole of the 75% Filipino
proprietorships; ownership
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b) Partnerships duly organized under duly supported with the
the laws of the Philippines and of DTI-, SEC-, or CDA-
which at least seventy-five percent certified Certificate, as
(75%) of the interest belongs to the case may be and
citizens of the Philippines; DTI-, SEC-, or CDA-
c) Corporations duly organized under certified documents
the laws of the Philippines, and of evidencing ownership.
which at least seventy-five percent 6. From the TWG report, as Did the BAC
(75%) of the outstanding capital reviewed by the BAC, and validate Filipino
stock belongs to citizens of the the Minutes of BAC ownership of the
Philippines; meetings, look for bidder?
d) Cooperatives duly organized under information evidencing
the laws of the Philippines, and of validation of Filipino
which at least seventy percent ownership of the bidders
(75%) belongs to citizens of the firm.
Philippines; or
e) Persons/entities forming themselves
into a joint venture, i.e., a group of
two (2) or more persons/entities
that intend to be jointly and
severally responsible or liable for a
particular contract: Provided,
however, That, in accordance with
Letter of Instructions No. 630 (LOI
630), Filipino ownership or interest
of the joint venture concerned shall
be at least seventy-five percent
(75%): Provided, further, That joint
ventures in which Filipino ownership
or interest is less than seventy-five
percent (75%) may be eligible
where the structures to be built
require the application of techniques
and/or technologies which are not
adequately possessed by a
person/entity meeting the seventy-
five percent (75%) Filipino
ownership requirement: Provided,
finally, That in the latter case,
Filipino ownership or interest shall
not be less than twenty-five percent
(25%). For this purpose, Filipino
ownership or interest shall be based
on the contributions of each of the
members of the joint venture as
specified in their JVA.
5. To verify if the BAC verified, 7. From the TWG report, as Did the BAC verify,
validated, and ascertained that reviewed by the BAC, and validate, and
the Mayors Permit submitted the Minutes of BAC ascertain that the
by the bidder with the LCB was meetings, look for Mayors Permit
information evidencing submitted by the
issued by the city or validation of authenticity of bidder is authentic?
municipality where the the Mayors Permit and
principal place of business of whether it was issued by the
the prospective bidder is city or municipality where Did the BAC verify,
located the principal place of the validate, and
business of the bidder is ascertain that the
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Implementing Rules and Regulations located, duly supported Mayors Permit
(IRR) of RA 9184, as amended on with: submitted by the
September 2, 2009: The LGU-certified copy bidder was issued
34.3. The post-qualification shall of the Mayors permit, by the city or
verify, validate, and ascertain all and municipality where
statements made and documents DTI-, SEC-, or CDA- the principal place
submitted by the bidder with the certified Registration of business of the
Lowest Calculated Bid/Highest Rated Certificate showing the bidder is located?
Bid, using non-discretionary criteria, bidders principal place
as stated in the Bidding Documents. of business
These criteria shall consider, but
shall not be limited to, the following:
a) Legal Requirements. To verify,
validate, and ascertain licenses,
certificates, permits, and
agreements submitted by the
bidder, and the fact that it is not
included in any blacklist as
provided in Section 25.2 of this
IRR. For this purpose, the GPPB
shall maintain a consolidated file
of all blacklisted suppliers,
contractors, and consultants.
23.1. For purposes of determining
the eligibility of bidders using the
criteria stated in Section 23.5 of
this IRR, only the following
documents shall be required by the
BAC, using the forms prescribed in
the Bidding Documents,:
a) Class A Documents
Legal Documents
i) ---
ii) Mayors permit issued by the
city or municipality where the
principal place of business of
the prospective bidder is
located.
6. To verify if the BAC 8. From the TWG report, as Did the BAC verify,
validated if the bidder with the reviewed by the BAC, and validate, and
LCB has a valid license and the Minutes of BAC ascertain that the
registration issued by the meetings, check for PCAB license and
information showing the registration
Philippine Contractors
BACs validation of the: submitted by the
Accreditation Board (PCAB) to
authenticity of the PCAB bidder is authentic?
engage or act as a contractor license and registration,
for the type of contract to be bid for the type of contract
to be bid.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on Did the BAC
September 2, 2009: validate if the
23.5.2.3. In accordance with R.A. bidder with the LCB
4566, entitled An Act Creating the has a valid license
Philippine Licensing Board for and registration
Contractors, Prescribing its Powers, issued by the
Philippine
Duties and Functions, Providing
Funds Therefor, and for Other Contractors
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Purposes, the persons/entities Accreditation Board
enumerated in Section 23.5.1.1 of (PCAB) to engage
this IRR may participate in public or act as a
bidding if he has been issued a contractor for the
license by the PCAB to engage or act type of contract to
as a contractor. be bid?
7. To verify if the BAC 9. From the TWG report, as Did the BAC
validated if the bidder with the reviewed by the BAC, and validate if the
LCB is not blacklisted the Minutes of BAC bidder with the LCB
meetings, check for was not
information showing the blacklisted?
Implementing Rules and Regulations
BACs validation if the bidder
(IRR) of RA 9184, as amended on
with the LCB is not
September 2, 2009:
blacklisted.
34.3. The post-qualification shall
verify, validate, and ascertain all
statements made and documents
submitted by the bidder with the
Lowest Calculated Bid/Highest Rated
Bid, using non-discretionary criteria, as
stated in the Bidding Documents.
These criteria shall consider, but shall
not be limited to, the following:
8. To verify if the BAC 10. From the TWG report, as Did the BAC
validated the bidders reviewed by the BAC, the validate the
compliance with the no Minutes of BAC meetings/ relationship of the
relationship provision deliberations and BAC bidder with the:
Resolution, check for
embodied in Section 47 of the information showing the a. HOPE?
Revised IRR of RA No. 9184, BACs validation that:
i.e., that the bidder is not a. the individual bidder in b. members of the
related by consanguinity or an individual or a sole BAC?
affinity up to the 3rd civil proprietorship, is not
degree to the: related to the persons c. members of the
a. HOPE, mentioned in Sec. 47, TWG?
Amended IRR of RA
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b. members of the BAC, 9184; d. members of the
c. members of the TWG, b. all the officers and BAC Secretariat?
d. members of the BAC members of the bidder
Secretariat, partnership are not e. head of the
related to the persons Project
e. head of the Project
mentioned in Sec. 47, Management
Management Office (PMO), Amended IRR of RA Office (PMO)?
f. head of the end-user unit, 9184;
g. project consultants c. all the officers, directors, f. head of the end-
and controlling user unit?
Section 47. Disclosure of Relations stockholders of the
All bids shall be accompanied by a bidder corporation are g. project
sworn affidavit of the bidder that it is not related to the consultants?
not related to the persons mentioned in
Head of the Procuring Entity, members Sec. 47, Amended IRR of
of the BAC, the TWG, and the BAC RA 9184.
Secretariat, the
head of the PMO or the end-user unit,
and the project consultants, by
consanguinity or affinity up to the third
civil degree. Failure to comply with the
aforementioned provision shall be a 11. From the TWG report, as Did the BAC
ground for the automatic reviewed by the BAC, the automatically
disqualification of the bid in consonance Minutes of BAC disqualify the
with Section 30 of this IRR. For this meetings/deliberations and bidder found to be
reason, relation to the BAC Resolution, check for related within the
aforementioned persons within the information showing the 3rd civil degree of
third civil degree of consanguinity BACs decision/action in case consanguinity or
or affinity shall automatically of violation with the no affinity with the
disqualify the bidder from relationship provision. persons listed in
participating Section 47 of the
in the procurement of contracts of Revised IRR of RA
the procuring entity. On the part of 9184?
the bidder, this
provision shall apply to the following
persons:
a) If the bidder is an individual or a
sole proprietorship, to the bidder
himself;
b) If the bidder is a partnership, to all
its officers and members;
c) If the bidder is a corporation, to all
its officers, directors, and controlling
stockholders; and
d) If the bidder is a joint venture, the
provisions of items (a), (b), or (c) of
this Section shall correspondingly
apply to each of the members of the
said joint venture, as may be
appropriate
9. To verify if the BAC validated the 12. From the TWG report Did the BAC
bidders stated competence and duly reviewed by the BAC, validate if the
experience and the Minutes of BAC bidder with the LCB
meetings, check for has completed:
Implementing Rules and Regulations information showing the
(IRR) of RA 9184, as amended on BACs validation of the a. within a period
September 2, 2009: completion by the bidder of ten (10) years
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34.3. The post-qualification shall within a period of ten (10) from the date of
verify, validate, and ascertain all years from the date of submission and
statements made and documents submission and receipt of receipt of bids?
submitted by the bidder with the bids, of at least one (1)
Lowest Calculated Bid/Highest Rated contract that is similar to the b. of at least one
Bid, using non-discretionary criteria, as contract to be bid, and (1) contract that is
stated in the Bidding Documents. whose value, adjusted to similar to the
These criteria shall consider, but shall current prices using the NSO contract to be bid?
not be limited to, the following: consumer price indices is at
least fifty percent (50%) of c. and whose
b) Technical Requirements. To the ABC to be bid. value, adjusted to
determine compliance of the goods, current prices using
infrastructure projects, or consulting the NSO consumer
services offered with the price indices is at
requirements specified in the Bidding OR least fifty percent
Documents, including, where From the TWG report, as (50%) of the ABC
applicable: reviewed by the BAC, and to be bid?
the Minutes of BAC
i) Verification and validation of the meetings, check for
bidders stated competence and information showing the
experience, and the competence BACs validation that for
and experience of the bidders key contractors under Small A Did the BAC
personnel to be assigned to the and Small B categories validate if for
project, for the procurement of without similar experience bidder under Small
infrastructure projects and on the contract to be bid, A and Small B
consulting services; the cost of such contract is categories without
not more than fifty percent similar experience
23.5.2.5. The prospective bidder (50%) of the Allowable on the contract to
must have an experience of having Range of Contract Cost be bid the ABC is
completed, within a period of ten (ARCC) of their registration not more than 50%
(10) years from the date of based on the guidelines as of ARCC?
submission and receipt of bids, at prescribed by the PCAB.
least one (1) contract that is similar
to the contract to be bid, and whose
value, adjusted to current prices
using the NSO consumer price
indices, must be at least fifty percent
(50%) of the ABC to be bid:
Provided, however, That 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 fifty
percent (50%) of the Allowable
Range of Contract Cost (ARCC) of
their registration based on the
guidelines as prescribed by the
PCAB.
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to be bid if it has the same major
categories of work.
10. To verify if the BAC validated 13. From the TWG report Did the BAC verify,
the stated competence and with supporting documents validate, and
experience of the bidders key and duly reviewed by the ascertain that the
personnel to be assigned to the BAC, and the Minutes of BAC documents
project meetings, check for submitted by the
information showing the bidder as evidence
Implementing Rules and BACs validation of the of the competence
Regulations (IRR) of RA 9184, as authenticity of the and experience of
amended on September 2, 2009: documents submitted as its key personnel to
34.3. The post-qualification shall evidence of the competence be assigned to the
verify, validate, and ascertain all and experience of the project license
statements made and documents bidders key personnel to be were authentic?
submitted by the bidder with the assigned to the project; and
Lowest Calculated Bid/Highest Rated validation of said Did the BAC
Bid, using non-discretionary criteria, as competence and experience validate the stated
stated in the Bidding Documents. with the requirements of the competence and
These criteria shall consider, but shall Bidding Documents. experience of the
not be limited to, the following: bidders key
personnel to be
b) Technical Requirements. To assigned to the
determine compliance of the goods, project against the
infrastructure projects, or consulting requirements of the
services offered with the Bidding
requirements specified in the Bidding Documents?
Documents, including, where
applicable:
11. To verify if the BAC validated 14. From the TWG report, as Did the BAC
the availability, commitment, reviewed by the BAC, and validate the
capacities and operating the Minutes of BAC availability,
conditions of equipment units to meetings, duly supported commitment,
be owned/leased/under purchase with analysis of schedules of capacities and
by the bidder for use in the equipment utilization, operating
contract under bidding inspection reports and test conditions of
results, check for equipment units to
Implementing Rules and information showing the be owned/leased/
Regulations (IRR) of RA 9184, as BACs validation of the under purchase by
amended on September 2, 2009: availability, commitment, the bidder for use
capacities and operating in the contract
b) Technical Requirements. To conditions of equipment under bidding?
determine compliance of the goods, units to be owned/leased/
infrastructure projects, or consulting under purchase by the
services offered with the bidder for use in the
requirements specified in the Bidding contract under bidding.
Documents, including, where
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
applicable:
i)
ii) Verification of availability and
commitment, and/or inspection
and testing for the required
capacities and operating
conditions, of equipment units to
be owned/leased/under purchase
by the bidder for use in the
contract under bidding,
12. To verify if the BAC checked 15. From the TWG report Did the BAC
the performance of the bidder in duly reviewed by the BAC, validate the
its on-going government and and the Minutes of BAC bidders
private contracts for: meetings, duly supported performance in its
with inspection reports and ongoing
a. reported negative slippage of at test results, photographs, government and
least fifteen percent (15%), or interview documents with private contracts
owners/project personnel of for:
b. substandard quality of work as previous/current projects of
per contract plans and the bidder, check for a. reported
specifications, or information showing the negative slippage
BACs validation of the of at least fifteen
c. unsatisfactory performance of performance of the bidder in percent (15%)? or
the contractors obligations as per its ongoing government and
contract terms and conditions, at private contracts for: b. substandard
the time of inspection, quality of work as
a. reported negative per contract plans
and verified that the deficiencies
slippage of at least fifteen and specifications?
were due to the contractors fault
percent (15%), or or
or negligence
b. substandard quality of c. unsatisfactory
Implementing Rules and Regulations work as per contract plans performance of the
(IRR) of RA 9184, as amended on and specifications, or contractors
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Commission on Audit
Republic of the Philippines Page 337
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
September 2, 2009: obligations as per
34.3. c. unsatisfactory contract?
performance of the
b) Technical Requirements. To contractors obligations as and
determine compliance of the goods, per contract
infrastructure projects, or consulting d. verified that the
services offered with the and verified that the deficiencies were
requirements specified in the Bidding deficiencies were due to the due to the
Documents, including, where contractors fault or contractors fault or
applicable: negligence. negligence?
i)
16. From the TWG report Did the BAC
ii) as well as checking the duly reviewed by the BAC, disqualify the
performance of the bidder in its the Minutes of BAC bidder found to be
ongoing government and private meetings/ deliberations and at fault or
contracts (if any of these on-going BAC Resolution, check for negligent?
contracts shows a reported information showing the
negative slippage of at least BACs evaluation and
fifteen percent (15%), or decision to disqualify the
substandard quality of work as per bidder found to be at fault
contract plans and specifications, or negligent.
or unsatisfactory performance of
the contractors obligations as per
contract terms and conditions, at
the time of inspection, and if the
BAC verifies any of these
deficiencies to be due to the
contractors fault or negligence,
the agency shall disqualify the
contractor from the award),
for the procurement of
infrastructure projects;
iii)
iv)
13. To verify if the BAC 17. From the TWG report, as Did the BAC
validated that the bidders reviewed by the BAC, the validate that the
Constructors Performance Minutes of BAC meetings/ bidders ratings in
Evaluation Summary and/or deliberations and BAC the CPES and/or
certificate of completion and Resolution, with copies of certificates of
the CPES) reports obtained completion and
owners acceptance of the
by the BAC from the owners acceptance
contract was at least Construction Industry were at least
satisfactory Authority of the Philippines satisfactory?
(CIAP), check for
Implementing Rules and information showing the
Regulations (IRR) of RA 9184, as BACs validation of the
amended on September 2, 2009: bidders ratings in the CPES
23.5.2.4. The Constructors and/or certificates of
Performance Evaluation System [AS completions and owners
AMENDED BY GPPB RESOLUTION acceptance that the ratings
NO. 11-2009 DATED 30 NOVEMBER were at least satisfactory.
2009] (CPES) rating and/or
certificate of completion and owners
acceptance of the contract must be
satisfactory.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
14. To verify if the BAC 18. From the TWG report Did the BAC verify,
verified, validated, and duly reviewed by the BAC, validate, and
ascertained authenticity of the the Minutes of BAC ascertain the
bid security and its sufficiency meetings/ deliberations and authenticity of the
BAC Resolution, check for bid security
as to:
information showing the submitted by the
a. type, BACs validation of the bidder?
b. amount, authenticity of the bid
c. form and wording, and security and its sufficiency
d. validity period. as to type, amount, form
and wording, and validity Did the BAC
Implementing Rules and period. ascertain the
Regulations (IRR) of RA 9184, as sufficiency of the
amended on September 2, 2009: bid security as to:
34.3. The post-qualification shall
verify, validate, and ascertain all a. type?
statements made and documents
submitted by the bidder with the b. amount?
Lowest Calculated Bid, using non-
discretionary criteria, as stated in c. form and
wording?
the Bidding Documents. These
criteria shall consider, but shall not
be limited to, the following: d. validity period?
a. Legal Requirements
b) Technical Requirements.
i)
ii)
iii)
iv) Ascertainment of the
sufficiency of the bid security as to
type, amount, form and wording,
and validity period.
15. To verify if the BAC verified, 19. From the TWG report Did the BAC verify,
validated, and ascertained if duly reviewed by the BAC validate, and
the Net Financial Contracting with supporting documents ascertain the
Capacity (NFCC) is at least from the appropriate authenticity of the
authorities (e.g. certified documents
equal to the ABC or the Credit
true copy of the financial (financial
Line Certificate (CLC) in favor statements with the Income statements, etc.)
of the prospective bidder if Tax Return, bank that issued submitted by the
awarded the contract is at least the CLC), the Minutes of bidder to support
10% of the ABC BAC meetings/deliberations its computation of
and BAC Resolution, check NFCC?
Implementing Rules and Regulations for information showing the
(IRR) of RA 9184, as amended on BACs: Did the BAC verify,
September 2, 2009: a. validation of the validate, and
34.3. The post-qualification shall authenticity of the CLC or ascertain that the:
verify, validate, and ascertain all the financial statements
statements made and documents used as basis for a. NFCC is at least
submitted by the bidder with the computing the NFCC, equal to the ABC?
Lowest Calculated Bid, using non- b. validation of the accuracy
discretionary criteria, as stated in of the computation for or
the Bidding Documents. These NFCC,
criteria shall consider, but shall not c. validation of the b. CLC is at least
be limited to, the following: Statement of the 10% of the ABC?
a) Legal Requirements . prospective bidder of all
b) Technical Requirements its ongoing and
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
c) Financial Requirements completed government
To verify, validate and ascertain and private contracts,
the bid price proposal of the including contracts
bidder and, whenever applicable, awarded but not yet
the required CLC in the amount started, and
specified and over the period d. comparison with the
stipulated in the Bidding requirements.
Documents, or the bidders NFCC
to ensure that the bidder can
sustain the operating cash flow of
the transaction.
23.5.1.4. If the prospective bidder
submits a computation of its NFCC,
the NFCC must be at least equal to
the ABC to be bid, calculated as
follows:
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
the PBDs prescribed by the GPPB.
16. To verify if the BAC 20. From the post Did the BAC pass
declared the post-qualified qualification report of the the LCB/bidder with
bidder with LCB as the Lowest TWG with supporting the LCB in all the
Calculated Responsive Bid documents and duly criteria for post-
reviewed by the BAC, qualification?
(LCRB) at its submitted bid
computations and analysis,
price or its calculated bid price, check if the LCB passed all
whichever is lower the criteria for post
qualification.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on 21. Match the name of the Did the BAC declare
September 2, 2009: LCRB as approved by the the bid of the post-
34.4. If the BAC determines that the HOPE with the name of qualified LCB as the
bidder with the Lowest Calculated Bid bidder as indicated in the Lowest Calculated
passes all the criteria for post- BAC Resolution declaring the Responsive Bid
qualification, it shall declare the said results of the post- (LCRB)?
bid as the Lowest Calculated qualification and
Responsive Bid, and recommend to recommending LCRB, if
the Head of the Procuring Entity the applicable.
award of contract to the said bidder If Yes, proceed
at its submitted bid price or its to: AWARD OF
calculated bid price, whichever is CONTRACT.
lower.
If No, proceed to
the Audit Sub-
Objectives in
case of Post-
disqualificatio
n of the bidder
with the LCB.
IN CASE OF POST-DISQUALIFICATION OF THE BIDDER WITH THE LOWEST CALCULATED BID (LCB)
- FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
17. To verify if the BAC, in case 1. From the records of the Did the BAC
of post-disqualification of the BAC Secretariat, check for immediately notify
LCB immediately notified the information on the date of the LCB of the
receipt by the post- post-
LCB in writing of the post-
disqualified bidder of the disqualification?
disqualification with the notice of post-
grounds for it. disqualification and for the
grounds for such Did the BAC
Implementing Rules and Regulations disqualification indicated indicate in the
(IRR) of RA 9184, as amended on thereon. notice the grounds
September 2, 2009: for post-
34.5. If, however, the BAC disqualification?
determines that the bidder with the
Lowest Calculated Bid fails the criteria
for post-qualification, it shall
immediately notify the said bidder in
writing of its post-disqualification and
grounds for it.
34.6. Immediately after the BAC has
notified the first bidder of its post-
disqualification, and notwithstanding
any pending request for
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
reconsideration thereof, the BAC shall
initiate and complete the same post-
qualification process on the bidder
with the second Lowest Calculated
Bid. If the second bidder passes the
post-qualification, and provided that
the request for reconsideration of the
first bidder has been denied, the
second bidder shall be post-qualified
as the bidder with the Lowest
Calculated Responsive Bid. If the
second bidder passes the post-
qualification, and provided that the
request for reconsideration of the
first bidder has been denied, the
second bidder shall be post-qualified
as the bidder with the Lowest
Calculated Responsive Bid.
18. To verify if the BAC 2. Look for the TWG report Did the BAC
conducted and completed the on the post-qualification of conduct and
post-qualification of the second the second rank bidder as complete the post-
rank bidder using the same reviewed by the BAC. qualification of the
second rank
post-qualification process
bidder?
adopted for the LCB
3. Repeat the audit activities Did the BAC adopt
Implementing Rules and of on post-qualification for the same process
Regulations (IRR) of RA 9184, as the second rank bidder. of verifying,
amended on September 2, 2009: validating and
34.6. the BAC shall initiate 4. Analyze the post- ascertaining all
and complete the same post- qualification reports of the statements made
qualification process on the TWG, as reviewed by the and documents
BAC, for the LCB and the submitted by the
bidder with the second Lowest
second rank bidder to check LCB and the second
Calculated Bid. whether the TWG adopted rank bidder?
the same process of
verifying, validating and
ascertaining all statements
made and documents
submitted by the LCB and
the second rank bidder.
If Yes, proceed
NOTE: to the Audit
For each post- Sub-objective to
disqualification of the verify if the
next-rank bidder, the BAC declared
BAC is to repeat the the post-
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
post-qualification qualified
process until the second-rank
LCRB is declared for bidder as the
award. LCRB after a
request for
The related audit reconsideratio
activities are likewise n of the LCB
to be repeated. (first-rank,
second-rank,
or next-in-
rank, a the
case may be)
has been
denied
If No, proceed to
the Audit Sub-
Objectives in
case of Post-
disqualificatio
n of the bidder
with the LCB.
19. To verify if the BAC 27. From the Minutes of the Did the BAC declare
declared the LCB as the LCRB BAC meeting, analyze if the the LCB as the
after its request for BAC declared the LCB as the LCRB after its
LCRB after its request for request for
reconsideration was granted
reconsideration has been reconsideration was
and it was declared post- granted and it was declared granted and it was
qualified post-qualified. declared post-
qualified?
Implementing Rules and Regulations 28. Match the name of the
(IRR) of RA 9184, as amended on LCRB as approved by the
September 2, 2009: HOPE with the name of
34.6. Immediately after the BAC bidder as indicated in the
has notified the first bidder of its BAC resolution
post-disqualification, and recommending the LCRB.
notwithstanding any pending
request for reconsideration thereof,
the BAC shall initiate and complete
the same post-qualification process
on the bidder with the second
Lowest Calculated Bid. If the second
bidder passes the post-qualification,
and provided that the request for
reconsideration of the first bidder
has been denied, the second bidder
shall be post-qualified as the bidder
with the Lowest Calculated
Responsive Bid.
20. To verify if the BAC 29. From the Minutes of the Did the BAC declare
declared the post-qualified BAC meeting, analyze if the the post-qualified
second-rank bidder as the BAC declared the post- second-rank bidder
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
LCRB after a request for qualified second-rank bidder as the LCRB after a
reconsideration of the LCB as the LCRB after a request request for
(first-rank) has been denied for reconsideration of the reconsideration of
LCB (first-rank) has been the LCB (first-rank)
denied. has been denied?
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
30. Match the name of the
34.6. Immediately after the BAC
LCRB as approved by the
has notified the first bidder of its
HOPE with the name of
post-disqualification, and
bidder as indicated in the
notwithstanding any pending
BAC resolution
request for reconsideration thereof,
recommending the LCRB.
the BAC shall initiate and complete
the same post-qualification process
on the bidder with the second
Lowest Calculated Bid. If the second
bidder passes the post-qualification,
and provided that the request for
reconsideration of the first bidder
has been denied, the second bidder
shall be post-qualified as the bidder
with the Lowest Calculated
Responsive Bid.
21. To verify if the BAC 31. Compute the number of Did the BAC
completed the post- days from the BAC complete the post-
qualification process in not Resolution declaring the LCB qualification
more than seven (7) calendar and the BAC Resolution process in not more
declaring the LCRB, and than seven (7)
days from the determination of
compare this with the 7- calendar days from
the LCB or if extended, such calenday-day requirement. the determination
extension was approved by the of the LCB?
HOPE and not exceeding 30
calendar days
32. If the BAC completed If the BAC
Implementing Rules and Regulations the post-qualification in completed the
(IRR) of RA 9184, as amended on more than seven (7) post-qualification in
September 2, 2009: calendar days, secure a copy more than seven
34.8. The post-qualification process of the document approved (7) calendar days,
shall be completed in not more than by the HOPE extending the was the extension
seven (7) calendar days from the period for the post- approved by the
determination of the Lowest qualification process. HOPE?
Calculated Bid. In exceptional cases,
the post-qualification period may be If the BAC
extended by the Head of the completed the
Procuring Entity, but in no case shall post-qualification in
the aggregate period exceed thirty more than seven
(30) calendar days. (7) calendar days,
was the extension
within the 30-
calendar day
maximum?
22. To verify if the BAC invited 33. From the Minutes of the Did the BAC choose
Observers: BAC meeting on the the Observers
a. representing the COA, the selection of the Observer considering:
from the pool, check for
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
duly recognized private group in information on the BACs a. one
a sector or discipline relevant to evaluation in regard to: representing the
the procurement at hand, and a the selection of the COA?
non-government organization organization from which
(NGO) from the procuring the Observer will be b. One
entitys Pool of Observers; invited; representing the
b. that have: knowledge, experience or duly recognized
b.1. knowledge, experience or expertise in procurement private group in
expertise in procurement or in or in the subject matter a sector or
the subject matter of the of the contract to be bid; discipline
contract to be bid; no actual or potential relevant to the
b.2. no actual or potential conflict of interest in the procurement at
conflict of interest in the contract to be bid; and hand?
contract to be bid; and conformed with other
relevant criteria c. One
b.3. conformed with other
determined by the BAC. representing a
relevant criteria determined by
non-government
the BAC;
organization?
c. at least 3 calendar days prior
to the Post-qualification d. With knowledge,
experience or
Implementing Rules and Regulations
expertise in
(IRR) of RA 9184, as amended on
procurement or
September 2, 2009:
in the subject
Section 13. Observers matter of the
13.1. To enhance the transparency of contract to be
the process, the BAC shall, in all stages bid?
of the procurement process, invite, in
addition to the representative of the e. With no actual
COA, at least two (2) observers, who or potential
shall not have the right to vote, to sit in conflict of
its proceedings where: interest in the
a) At least one (1) shall come from a contract to be
duly recognized private group in a bid?
sector or discipline relevant to the
procurement at hand, for example: f. Conformed with
i) For infrastructure projects, other relevant
national associations of criteria
constructors duly recognized by determined by
the Construction Industry the BAC?
Authority of the Philippines (CIAP),
such as, but not limited to the
following: 34. From certified copies of Did the BAC invite
(1) Philippine Constructors the invitations to the the observers at
Association, Inc.; Observers with evidence of least 3 days from
(2) National Constructors receipt, compare the date of the date of the
Association of the Philippines, receipt with the 3-day post-qualification?
Inc.; and minimum requirement.
(3) Philippine Institute of Civil
Engineers (PICE).
ii)
iii) and
b) The other observer shall come from
a non-government organization
(NGO).
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Securities
and Exchange Commission (SEC) or the
Cooperative Development Authority
(CDA), and should meet the following
criteria:
a) Knowledge, experience or expertise
in procurement or in the subject
matter of the contract to be bid;
b) Absence of actual or potential
conflict of interest in the contract to
be bid; and
c) Any other relevant criteria that may
be determined by the BAC.
23. To verify if the Procuring 35. Based on the BACs Did the Procuring
Entity considered the Minutes on the Post Entity consider the
comments/observations of the Qualification and the report comments/
of the Observers check observations of the
Observers
whether a deliberation was Observers?
made on the comments
Implementing Rules and Regulations
/observations of the
(IRR) of RA 9184, as amended on observers.
September 2, 2009:
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
interest in the contract to be bid.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the results Prepare the appropriate
of the audit with the auditees audit/ validation document Audit Observation Memorandum (AOM), if applicable
Management reflecting the results of the
audit/validation and transmit
COA Circular No. 2009-006 dated to Management
September 15, 2009 re- Prescribing
the Use of the Rules and Regulations
on Settlement of Accounts
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XI. AWARD OF CONTRACT
FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
A. AUDIT OBJECTIVES:
1. To verify if the conditions/requirements and procedures for the award of contract were
adhered to by the procuring entity;
3. To verify if the conditions/requirements, procedures and timelines for entering into and
approval of the contract were adhered to by the procuring entity.
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
1. To verify if the BAC 1. Compare the LCRB Did the BAC
recommended the bidder determined by the BAC in its recommend to the
with the Lowest Calculated deliberations (per Minutes of HOPE the award of
Responsive Bid (LCRB) or the BAC meeting) with the contract to the bidder
LCRB recommended for with LCRB or the SCRB?
Single Calculated Responsive
award in the BAC
Bid (SCRB), if lone, to the Resolution.
HOPE for award
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Procuring Entity shall disapprove
such recommendation, such
disapproval shall be based only on
valid, reasonable, and justifiable
grounds to be expressed in writing,
a copy furnished the BAC.
2. To verify if the BAC 2. From the TWG evaluation Did the BAC
recommended to the HOPE report with supporting recommend to the
the award of the contract to documents and duly HOPE the award of the
the bidder with the LCRB at reviewed by the BAC and contract to the bidder
BAC Resolution declaring the with the LCRB at the
its submitted price or its
LCRB and recommending lower of the submitted
calculated bid price, award, look for information price and its calculated
whichever is lower, subject to on the contract amount bid price?
ITB Clause 30.3. recommended by the BAC
for award.
Philippine Bidding Documents
(PBDs) for the Procurement of
Infrastructure Projects, 3rd
Edition, (October 2009) approved by
the GPPB per GPPB Resolution No.
06-2009 dated September 30, 2009:
28.4. If the BAC determines that
the Bidder with the Lowest
Calculated Bid passes all the
criteria for post-qualification, it
shall declare the said bid as the
Lowest Calculated Responsive
Bid, and recommend to the Head
of the Procuring Entity the award
of contract to the said Bidder at
its submitted price or its
calculated bid price, whichever is
lower, subject to ITB Clause
30.3.
3. To verify if the BAC 3. From the BAC Chairmans Did the BAC submit the
submitted the following letter for the HOPE following documents to
documents to the HOPE with submitting the results and the HOPE with the
the recommendation for the documents pertaining to recommendation for
the recommendation, duly award:
award: received by the Office of the
a. Resolution of the BAC HOPE, look for information a. Resolution of the
recommending award; on the documents BAC recommending
b. Abstract of Bids; submitted. award?
c. Duly approved program of
work and Cost Estimates; b. Abstract of Bids?
d. Document issued by
appropriate entity c. Duly approved
authorizing the procuring program of work
and Cost
entity to incur obligations
Estimates?
for a specified amount;
and d. Document issued by
e. Other pertinent appropriate entity
documents required by authorizing the
existing laws, rules and/ procuring entity to
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Special Services Sector First Update - December 2009
Commission on Audit
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
or the procuring entity incur obligations for
concerned a specified
amount?
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on e. Other pertinent
September 2, 2009: documents required
37.1.1. The BAC shall recommend by existing laws,
to the Head of the Procuring Entity rules and/or the
the award of contract to the bidder procuring entity
with the Lowest Calculated concerned?
Responsive Bid or the Single
Calculated Responsive Bid after the
post qualification process has been
completed.
To facilitate the approval of the
award, the BAC shall submit the
following supporting documents to
the Head of the Procuring Entity:
a) Resolution of the BAC
recommending award;
b) Abstract of Bids;
c) Duly approved program of
work or delivery schedule, and
Cost Estimates;
d) Document issued by
appropriate entity authorizing
the procuring entity to incur
obligations for a specified
amount; and
e) Other pertinent documents
required by existing laws, rules
and/ or the procuring entity
concerned.
4. To verify if the HOPE, or 4. Determine the number of Did the HOPE approve
his/her duly authorized days from the date of the BAC
official, approved the receipt by the HOPE of the recommendation for
recommendation for award award within the 4-, 7-
LCRB/SLRB recommended by
to the date of approval and calendar-day period (or
the BAC for award within 7 compare with the 4-day, 7- 15-calendar-day period
calendar days (4 calendar day or 15-day period. for GOCCs/GFIs)?
days for infrastructure
projects costing P50 million
and below) from the date of
receipt of the
recommendation from the
BAC (15 calendar days for
GOCCs/GFIs)
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
37.1.2. Within a period not
exceeding seven (7) calendar days
from the date of receipt of the
recommendation of the BAC, the
Head of the Procuring Entity shall
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approve or disapprove the said
recommendation. However, for
infrastructure projects with an ABC
of Fifty Million Pesos (P50,000,000)
and below, the Head of the
Procuring Entity shall approve or
disapprove the said
recommendation within four (4)
calendar days. In the case of
GOCCs and GFIs, the period
provided herein shall be fifteen
(15) calendar days.
Annex C
Period of Action on Procurement
Activities
6. To verify if the BAC 8. From the notices to the Did the BAC notify all
notified all the losing bidders losing bidders, look for the the losing bidders within
within the 7 or 4 calendar day date of its receipt and the 7 calendar day
period (same period provided compare with the 7-day or period / 4 calendar day
4-day requirement. period for ABC
for the HOPE to approve/
P50,000,000 and below
disapprove the BACs Resolution)
9. Also compare the names (same period provided
Implementing Rules and Regulations of the losing bidders notified for the HOPE to
(IRR) of RA 9184, as amended on with those appearing in the approve/ disapprove the
September 2, 2009: Abstract of Bids. BACs Resolution)?
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Commission on Audit
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
from the date of receipt of the
recommendation of the BAC, the
Head of the Procuring Entity shall
approve or disapprove the said
recommendation. However, for
infrastructure projects with an ABC
of Fifty Million Pesos (P50,000,000)
and below, the Head of the
Procuring Entity shall approve or
disapprove the said
recommendation within four (4)
calendar days. In the case of
GOCCs and GFIs, the period
provided herein shall be fifteen
(15) calendar days. Within the
same period provided herein the
BAC shall notify all losing bidders of
its decision.
7. To verify if the BAC posted 10. Access the PhilGEPS Did the BAC post the
the Notice of Award within 3 website and the website of Notice of Award within
days from its issuance at the: the procuring entity, and 3 days from its issuance
a. PhilGEPS website, conduct inspection of the at the:
area where the Notice of
b. website of the procuring
Award is to be posted on the a. PhilGEPS website?
entity, and 3rd day from the issuance of
c. any conspicuous place in the Notice of Award to the b. website of the
the premises of the winning bidder. procuring entity? And
procuring entity.
c. any conspicuous
Implementing Rules and Regulations place in the premises
(IRR) of RA 9184, as amended on of the procuring
September 2, 2009: entity?
37.1.6. The BAC, through the
Secretariat, shall post, within three
(3) calendar days from its issuance,
the Notice of Award in the
PhilGEPS, the website of the
procuring entity, if any, and any
conspicuous place in the premises
of the procuring entity.
8. To verify if the procuring 11. From the receiving Did the bidder submit
entity observed the following records of the BAC, compare the JVA within ten (10)
conditions for the execution the date of submission of calendar days from
of the contract: the Joint Venture Agreement receipt of the notice of
(JVA) with the required 10 award?
a) Submission of valid joint
days from receipt of the
venture agreement, if Notice of Award.
applicable, within 10 days
from receipt of the Notice
of Award by the winning
Joint Venture bidder,
b) Posting of performance 12. From the receiving Was the performance
security within ten (10) records of the BAC, compare security posted within
the date of posting of the ten (10) calendar days
calendar days from receipt
performance security with from receipt by the
by the winning bidder of the required 10 days from winning bidder of the
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Commission on Audit
Republic of the Philippines Page 354
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
the Notice of Award & prior receipt of the Notice of Notice of Award & prior to
to the signing of the Award; also compare with the signing of the contract?
contract in the required the date of the signing of
amount, currency, form, the contract.
issuing entity, and valid
until the issuance by the
procuring entity of the final 13. Compare the amount, Was the performance
certificate of acceptance, currency, form, issuing security posted in the:
c) Signing of the contract entity, and validity period of a. right amount?
within the same ten (10) the performance security
day period provided that posted by the winning
all the documentary bidder with the b. right currency?
requirements are complied requirements of Sec 39.2 of
the Revised IRR of RA 9184.
with,
c. right form?
d) Approval by higher
authority, if required,
within 15 days from receipt d. right issuing entity?
(25 days for GOCCs)
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the Answer
e) Posting of performance
security in accordance with
Section 39 of this IRR;
f) Signing of the contract as
provided in Section 37.2 of this
IRR;
g) Approval by higher authority, if
required, as provided in
Section 37.3 of this IRR.
39. Performance Security
39.1. To guarantee the faithful
performance by the winning bidder
of its obligations under the contract
in accordance with the Bidding
Documents, it shall post a
performance security prior to the
signing of the contract.
39.2. The performance security
shall be in an amount equal to a
percentage of the total contract
price in accordance with the
following schedule: [AS AMENDED
UNDER GPPB RESOLUTION NO. 06-
2009 DATED 30 SEPTEMBER 2009]
Amount of
Form of Performance Performance
Security Security (Equal
to Percentage of
the Total
Contract Price
a) Cash, cashiers/
managers check
issued by a Universal
or Commercial Bank Two percent
b) Bank draft/ (2%)
guarantee or
irrevocable letter of
credit issued by a
Universal or
Commercial Bank;
Provided, however,
that it shall be
confirmed or
authenticated by a
Universal or
Commercial Bank, if
issued by a foreign
bank.
c) Surety bond callable Five percent
upon demand issued (5%)
by a surety or
insurance company
duly certified by the
Insurance Commission
as authorized to issue
such security.
d) Any combination of Proportionate
the foregoing. to share of
form with
respect to
total amount
of security
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
9. To verify if the contract is 17. Obtain from the BAC Are the contract
complete Secretariat or the Project documents complete,
Management Office or the consisting of the
Implementing Rules and Regulations Office responsible for project following:
(IRR) of RA 9184, as amended on implementation/ contract
September 2, 2009: execution for a copy of the a) Contract Agreement;
complete set of documents
37.2.3. The following documents comprising the contract and b) Bidding Documents;
shall form part of the contract: compare with the
a) Contract Agreement; requirements. c) Winning bidders bid,
b) Bidding Documents; including the Eligibility
c) Winning bidders bid, including requirements,
the Eligibility requirements, Technical and Financial
Technical and Financial Proposals, and all other
Proposals, and all other documents/statements
documents/statements submitted;
submitted;
d) Performance Security; d) Performance
e) Credit line in accordance with Security;
the provisions of this IRR, if e) Credit line in
applicable; accordance with the
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
f) Notice of Award of Contract; and provisions of this IRR,
g) Other contract documents that if applicable;
may be required by existing laws
and/or the procuring entity f) Notice of Award of
concerned in the Bidding Contract; and
Documents, such as the
construction schedule and S- g) Other contract
curve, manpower schedule, documents that may
construction methods, equipment be required by existing
utilization schedule, construction laws and/or the
safety and health program procuring entity
approved by the Department of concerned in the
Labor and Employment, and Bidding Documents,
PERT/CPM for infrastructure such as the
projects. construction schedule
and S-curve,
manpower schedule,
construction methods,
equipment utilization
schedule, construction
safety and health
program approved by
the Department of
Labor and
Employment, and
PERT/CPM for
infrastructure projects?
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
on valid, reasonable, and
justifiable grounds to be
expressed in writing, a copy
furnished the BAC.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
submit the documents required to the winning bidder. b. to make good its bid
under Section 37.1 of this IRR or by entering into a
to make good its bid by entering contract with the
into a contract with the procuring procuring entity?
entity or post the required or
Performance Security within the c. post the required
period stipulated in this IRR or in Performance
the Bidding Documents, the bid Security within the
security shall be forfeited and the period stipulated in
appropriate sanctions provided in the Revised IRR of
this IRR and existing laws shall be RA 9184 or in the
imposed, except where such Bidding
failure, refusal or inability is Documents?
through no fault of the said
bidder.
Did the BAC
recommend the
imposition of sanctions
to the winning bidder
who, through his fault,
failed, refused or was
unable to:
a. submit the
documents required
under Section 37.1
of the Revised IRR
of RA 9184?
or
b. to make good its bid
by entering into a
contract with the
procuring entity?
or
c. post the required
Performance
Security within the
period stipulated in
the Revised IRR of
RA 9184 or in the
Bidding
Documents?
2. To verify if the BAC, after 2. From the records of the Did the BAC, after
disqualifying the winning BAC, look for information on disqualifying the
bidder who, due to his fault, the disqualification of the winning bidder who,
refused, failed, or was unable winning bidder who, due to due to his fault,
his fault, refused, failed, or refused, failed, or was
to enter into contract, post was unable to enter into unable to enter into
the required performance contract, post the required contract, post the
security, or submit other performance security, or required performance
required documents within submit other required security, or submit
the time stipulated, initiated documents within the time other required
and completed the post- stipulated. documents within the
qualification process on the time stipulated, initiate
bidder with the second Look also for information on and complete the post-
Lowest Calculated Bid the conduct of post- qualification process on
qualification on the bidder the bidder with the
Implementing Rules and Regulations with the second Lowest second Lowest
(IRR) of RA 9184, as amended on Calculated Bid. Calculated Bid?
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
September 2, 2009:
40.2. In the case of the failure,
refusal or inability of the bidder
with the Lowest Calculated
Responsive Bid to submit the
documents required under Section
37.1 of this IRR or to enter into
contract and post the required
Performance Security, as provided
in this Section, the BAC shall
disqualify the said bidder, and shall
initiate and complete the post- NOTE:
qualification process on the bidder
with the second Lowest Calculated For the audit on the
Bid:....This procedure shall be Post-Qualification for
repeated until the Lowest the Procurement of
Calculated Responsive Bid/Highest Infrastructure
Rated Responsive Bid is Projects conducted by
determined for award. However, if the BAC, perform the
no bidder passes post-
audit activities
qualification, the BAC shall declare
the bidding a failure and conduct a pertaining to these
re-bidding with re-advertisement. procurement
Should there occur another failure activities in another
of bidding after the conduct of the part of this Guide.
contracts re-bidding, the procuring
entity concerned may enter into a
negotiated procurement.
3. To verify if the BAC, after 3. From the records of the Did the BAC, after
disqualifying the winning BAC, look for information on disqualifying the
bidder with the Single the disqualification of the winning bidder with the
winning bidder with the SCRB who, due to his
Calculated Responsive Bid
SCRB who, due to his fault, fault, refused, failed, or
(SCRB) who, due to his fault, refused, failed, or was was unable to enter into
refused, failed, or was unable unable to enter into contract, post the
to enter into contract, post contract, post the required required performance
the required performance performance security, or security, or submit
security, or submit other submit other required other required
required documents within documents within the time documents within the
the time stipulated, declared stipulated. time stipulated,
the bidding a failure and
Look also for information on a. declare the bidding a
conducted a re-bidding with
the declaration of the failure?
re-advertisement and/or bidding a failure and the
posting, as provided for in conduct of a re-bidding with and
Sections 21 and 25 of the re-advertisement. b. conduct a re-bidding
Revised IRR of RA 9184 with re-advertisement
and/or posting?
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009: NOTE:
For the audit on the
40.3. In the case of failure, refusal Failure of Bidding for
or inability of the bidder with the
the Procurement of
Single Calculated/Rated Responsive
Bid to submit the documents Infrastructure
required under Section 37.1 of this Projects and on the
IRR or to enter into contract and Competitive/ Public
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
post the required Performance Bidding for the
Security, as provided in this Procurement of
Section, the BAC shall disqualify Infrastructure
the said bidder, and shall declare Projects, perform the
the bidding a failure and conduct a
audit activities
re-bidding with re-advertisement
and/or posting, as provided for in pertaining to these
Sections 21 and 25 of this IRR. procurement
Should there occur another failure activities in other
of bidding after the conduct of the parts of this Guide.
contracts re-bidding, the procuring
entity concerned may enter into a
negotiated procurement.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
i) For infrastructure projects,
national associations of
constructors duly recognized by
the Construction Industry
Authority of the Philippines
(CIAP), such as, but not limited
to the following:
(1) Philippine Constructors
Association, Inc.;
(2) National Constructors
Association of the
Philippines, Inc.; and
(3) Philippine Institute of Civil
Engineers (PICE).
ii)
iii) and
b) The other observer shall come
from a non-government
organization (NGO).
2. To verify if the Procuring 3. Based on the BACs Did the Procuring Entity
Entity considered the Minutes on the Post consider the comments/
comments/observations of Qualification, the meetings observations of the
the Observers on the award of contract, Observers?
and the report of the
Implementing Rules and Regulations Observers check whether a
(IRR) of RA 9184, as amended on deliberation was made on
September 2, 2009: the comments /observations
13.4. The observers shall have the of the observers.
following responsibilities:
a) To prepare the report either
jointly or separately indicating
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
their observations made on the
procurement activities conducted
by the BAC for submission to the
Head of the Procuring Entity, copy
furnished the BAC Chairman. The
report shall assess the extent of
the BACs compliance with the
provisions of this IRR and areas of
improvement in the BACs
proceedings;
b) To submit their report to the
procuring entity and furnish a
copy to the GPPB and Office of the
Ombudsman/Resident
Ombudsman. If no report is
submitted by the observer,
then it is understood that the
bidding activity conducted by
the BAC followed the correct
procedure; and
c) To immediately inhibit and notify
in writing the procuring entity
concerned of any actual or
potential interest in the contract to
be bid.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
amended on September 2, 2009:
Observers shall be invited at least
three (3) calendar days before the
date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the Prepare the appropriate
results of the audit with the audit/ validation document Audit Observation Memorandum (AOM), if applicable
auditees Management reflecting the results of the
audit/validation and transmit
COA Circular No. 2009-006 dated to Management
September 15, 2009 re- Prescribing
the Use of the Rules and
Regulations on Settlement of
Accounts
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XII. FAILURE OF BIDDING
DECLARED BY THE BIDS AND AWARDS COMMITTEE (BAC)
FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
A. AUDIT OBJECTIVE:
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Audit Criteria
Audit Activities Yes No Particulars of
Audit Question
the Answer
with Section 40 of the RA the Lowest
9184 and Revised IRR . Calculated
e) funds are not available Responsive Bid
refused, without
Implementing Rules and Regulations justifiable cause,
(IRR) of RA 9184, as amended on to accept the
September 2, 2009: award of contract,
and no award was
35.1. The BAC shall declare the made in
bidding a failure when: accordance with
a) No bids are received; Section 40 of the
b) All prospective bidders are RA 9184 and
declared ineligible; Revised IRR?
c) All bids fail to comply with all the
bid requirements or fail post-
qualification, or, in the case of
consulting services, there is no
successful negotiation; or
d) The bidder with the Lowest
Calculated Responsive
Bid/Highest Rated Responsive
Bid refuses, without justifiable
cause, to accept the award of
contract, and no award is made
in accordance with Section 40 of
the Act and this IRR.
GPPB Circular 01-2009 dated 20
January 2009:
4.2. To facilitate the immediate
implementation of projects even
pending approval of the GAA,
the ABC shall be based on the
budget levels under the National
Expenditure Program (NEP)
submitted to Congress.
4.3. For specifically appropriated
projects, agencies can proceed
with the procurement activities
prior to issuance of the notice of
award using as basis the NEP
figures.
4.4. For lump-sum appropriations and
Centrally Managed Items (CMIs)
under the agencys budget, the
head of the agency shall identify
and thereafter notify the
implementing units (IUs) of the
amount allocated for the
projects they are to implement.
On the basis of said notification,
the heads of the respective IUs,
as procuring entities, can
proceed with the procurement
activities prior to issuance of the
notice of award.
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Audit Criteria
Audit Activities Yes No Particulars of
Audit Question
the Answer
4.5. For Multi-Year Projects (MYPs),
for which the initial funding
sourced from either the
existing/current years budget or
the NEP is not sufficient to
cover the total cost of the
project, it is required that a
Multi-Year Obligational Authority
(MYOA) must already have been
issued in accord with DBM
Circular Letter 2004-012 prior to
commencement of any
procurement activity.
Thus, the MYOA shall be a
pre-requisite for procurement of
a multi-year contract. All
procurement activities should be
within the total project cost and
categories reflected in the
MYOA issued by DBM for the
said MYP.
4.6. As prescribed under Section 47,
Chapter 8, Subtitle B, Title I,
Book V of the Administrative
Code of 1987, no contract
involving the expenditure of
public funds shall be entered
into unless the proper
accounting official of the
procuring entity shall have
certified as to the availability of
funds and the allotment to
which the expenditure or
obligation may be properly
charged.
2. To verify if the BAC 2. From the minutes of the Did the BAC
determined the reason for the BAC meetings held for the determine the reason
failed bidding by conducting a purpose, look for information for the failed bidding
mandatory review and on the review and evaluation by conducting a
conducted on the: (a) terms, mandatory review
evaluation of the : (b) conditions, (c) and evaluation of the:
a. terms, specifications, and (d) cost a. terms in the
b. conditions, estimates and the Bidding Documents?
c. specifications, recommendations/decisions
d. cost estimates made possible b. conditions in the
in the Bidding Documents revisions/adjustments. Bidding Documents?
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Audit Criteria
Audit Activities Yes No Particulars of
Audit Question
the Answer
Bidding Documents, including its
cost estimates.
3. To verify if the BAC and the 3. From the minutes of the Did the BAC and the
concerned units/officials of BAC meetings held for the concerned
the procuring entity, revised purpose and other records of units/officials of the
the following as a result of the procuring entity, look for procuring entity,
information on the revised the following
the review and evaluation
revisions/adjustments made on as a result of the
conducted: the (a) terms, (b) conditions, review and evaluation
a. terms, (c) specifications, (d) ABC and conducted:
b. conditions, approvals made thereon. a. terms in the
c. specifications, Bidding
d. Approved Budget for the Documents?
Contract (ABC);
had them approved; and b. conditions in the
Bidding
conducted a re-bidding with
Documents?
re-advertisement and/or
posting c. specifications in the
Bidding
Implementing Rules and Regulations
Documents?
(IRR) of RA 9184, as amended on
September 2, 2009:
d. cost estimates?
35.2. In order to determine the
reason for the failed bidding, the 4. From the records of the Did the BAC conduct
BAC shall conduct a mandatory BAC look for information on a re-bidding?
review and evaluation of the terms, the re-bidding conducted.
conditions, and specifications in the
Bidding Documents, including its
cost estimates.
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Special Services Sector First Update - December 2009
Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria
Audit Activities Yes No Particulars of
Audit Question
the Answer
negotiated procurement, as provided
for in Section 53.1 of this IRR.
4. To verify if the BAC invited 5. From the Minutes of the Did the BAC choose
Observers: BAC meeting on the selection the Observers
a. representing the COA, the of the Observer from the considering:
duly recognized private group pool, check for information
in a sector or discipline on the BACs evaluation in 1. one representing
relevant to the procurement regard to: the COA?
at hand, and a non- the selection of the
government organization organization from which the
(NGO) from the procuring Observer will be invited; 2. One representing
entitys Pool of Observers; knowledge, experience or the specific
b. that have: expertise in procurement or relevant the duly
in the subject matter of recognized private
b.1. knowledge, experience or
the contract to be bid; group in a sector or
expertise in procurement or in
the subject matter of the
no actual or potential discipline relevant to
conflict of interest in the the procurement at
contract to be bid;
contract to be bid; and hand?
b.2. no actual or potential
conflict of interest in the
conformed with other
relevant criteria determined
contract to be bid; and 3. One representing
by the BAC.
b.3. conformed with other a non-government
relevant criteria determined by organization?
the BAC;
c. at least 3 calendar days
4. With knowledge,
prior to the start of the
experience or
activity expertise in
Implementing Rules and Regulations procurement or in
(IRR) of RA 9184, as amended on the subject matter of
September 2, 2009: the contract to be
bid?
Section 13. Observers
13.1. To enhance the transparency of
the process, the BAC shall, in all 5. With no actual or
stages of the potential conflict of
procurement process, invite, in interest in the
addition to the representative of the contract to be bid?
COA, at least two (2) observers, who
shall not have the right to vote, to sit 6. Conformed with
in its proceedings where: other relevant
a) At least one (1) shall come from a criteria determined
duly recognized private group in a by the BAC?
sector or discipline relevant to the
procurement at hand, for example:
i) ) For infrastructure projects,
national associations of 6. From certified copies of the Did the BAC invite the
constructors duly recognized by invitations to the Observers observers at least 3
the Construction Industry with evidence of receipt, days from the date of
Authority of the Philippines compare the date of receipt the bid evaluation?
(CIAP), such as, but not limited with the 3-day minimum
to the following: requirement.
(1) Philippine Constructors
Association, Inc.;
(2) National Constructors
Association of the
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria
Audit Activities Yes No Particulars of
Audit Question
the Answer
Philippines, Inc.; and
(3) Philippine Institute of Civil
Engineers (PICE).
ii) .
iii) and
b) The other observer shall come
from a non-government
organization (NGO).
13.2. The observers shall come from
an organization duly registered with
the Securities
and Exchange Commission (SEC) or
the Cooperative Development
Authority (CDA), and should meet the
following criteria:
a) Knowledge, experience or
expertise in procurement or in the
subject matter of the contract to
be bid;
b) Absence of actual or potential
conflict of interest in the contract
to be bid; and
c) Any other relevant criteria that
may be determined by the BAC.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 371
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria
Audit Activities Yes No Particulars of
Audit Question
the Answer
Observers shall be invited at least
three (3) calendar days before the
date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the Prepare the appropriate audit/
results of the audit with the validation document reflecting Audit Observation Memorandum (AOM), if
auditees Management the results of the applicable
audit/validation and transmit
COA Circular No. 2009-006 dated to Management
September 15, 2009 re- Prescribing
the Use of the Rules and
Regulations on Settlement of
Accounts
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XIII. FAILURE OF BIDDING DECLARED BY THE HOPE
FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
A. AUDIT OBJECTIVE:
To verify if the conditions/requirements for the declaration of failure of bidding were adhered
to by the procuring entity
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
including any act which
restricts, suppresses or c. there was prima
nullifies or tends to facie evidence of
restrict, suppress or nullify collusion between
the BAC and any of
competition;
the bidders?
or
c. the BAC is found to have OR
failed in following the
prescribed bidding c. there was prima
procedures; facie evidence of
or collusion between
d. the award of the contract or among the
bidders themselves?
will not redound to the
benefit of the GOP, for OR
justifiable and reasonable
grounds such as: (i) if the d. there was prima
physical and economic facie evidence of
conditions have collusion between a
significantly changed so as bidder and a third
to render the project no party?
longer economically,
OR
financially, or technically
feasible, as determined by e. there was prima
the Head of the Procuring facie evidence of any
Entity; (ii) if the project is act which restricted,
no longer necessary as suppressed or
determined by the Head of nullified competition?
the Procuring Entity; and
(iii) if the source of funds
for the project has been OR
withheld or reduced
f. the BAC was found
through no fault of the
to have failed in
procuring entity. following the
prescribed bidding
Implementing Rules and Regulations procedures?
(IRR) of RA 9184, as amended on
September 2, 2009: OR
Section 41. The Head of the
Procuring Entity reserves the right to g. the award of the
reject any and all bids, declare a contract will not
failure of bidding, or not award the redound to the
contract in the following situations: benefit of the GOP,
a) If there is prima facie evidence of for justifiable and
collusion between appropriate reasonable grounds
public officers or employees of the such as the physical
procuring entity, or between the and economic
BAC and any of the bidders, or if conditions have
the collusion is between or among significantly changed
the bidders themselves, or so as to render the
between a bidder and a third project no longer
party, including any act which economically,
restricts, suppresses or nullifies or financially, or
tends to restrict, suppress or technically feasible,
nullify competition; as determined by the
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
b) If the BAC is found to have failed Head of the
in following the prescribed bidding Procuring Entity?
procedures; or
c) For any justifiable and reasonable OR
ground where the award of the
contract will not redound to the h. the award of the
benefit of the GOP, as follows: (i) contract will not
if the physical and economic redound to the
conditions have significantly benefit of the GOP,
changed so as to render the for justifiable and
project no longer economically, reasonable grounds
financially, or technically feasible, such as the project is
as determined by the Head of the no longer necessary
Procuring Entity; (ii) if the project as determined by the
is no longer necessary as Head of the
determined by the Head of the Procuring Entity?
Procuring Entity; and (iii) if the
source of funds for the project has OR
been withheld or reduced through
no fault of the procuring entity. i. the award of the
contract will not
redound to the
benefit of the GOP,
for justifiable and
reasonable grounds
such as the source
of funds for the
project has been
withheld or reduced
through no fault of
the procuring entity?
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 375
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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ALTERNATIVE METHODS
OF PROCUREMENT FOR
INFRASTRUCTURE PROJECTS
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On the Procurement Procedures:
NEGOTIATED PROCUREMENT
OF INFRASTRUCTURE PROJECTS
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Procurement Procedures:
NEGOTIATED PROCUREMENT OF INFRASTRUCTURE PROJECTS
AFTER TWO (2) FAILED BIDDINGS
The Registry of Contractors is developed and maintained by the Procuring Entity to ensure
that it is updated.
A. AUDIT OBJECTIVE
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Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT
1. To verify the effects of Analyze the instances of non-
instances of non-compliance on compliance to establish the Appropriate Audit Working Papers
the: effects and develop
appropriate audit
a. validity of the procurement recommendations.
activities and outputs
including the validity of the Also determine if appropriate
resulting contract; actions were taken by the
auditee in regard to instances
b. validity of any payment to be of non-compliance.
made on the basis of the
contract;
c. etc.
NOTE:
and develop appropriate audit Also refer to the
recommendations OFFENSES AND
PENALTIES portion of
Implementing Rules and Regulations this Audit Guide.
(IRR) of RA 9184, as amended on
September 2, 2009:
Observers shall be invited at least
three (3) calendar days before the
date of the procurement stage/activity.
The absence of observers will not
nullify the BAC proceedings,
provided that they have been duly
invited in writing.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the results of Prepare the appropriate audit/
the audit with the auditees validation document reflecting Audit Observation Memorandum (AOM), if
Management the results of the applicable
audit/validation and transmit
COA Circular No. 2009-006 dated to Management
September 15, 2009 re- Prescribing the
Use of the Rules and Regulations on
Settlement of Accounts
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Negotiated Procurement of Infrastructure Projects
After Two (2) Failed Biddings
Bidding documents are documents issued by the Procuring Entity to provide prospective
bidders all the necessary information that they need to prepare their bids.
A. AUDIT OBJECTIVE:
To verify if after the Procuring Entitys conduct of mandatory review due to two (2) failed
biddings, the Bidding Documents for the specific procurement followed the standard forms
and manuals prescribed by the Government Procurement Policy Board (GPPB)
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
6.2. Once issued by the GPPB, recommendation to the Did the BAC submit the
the use of the Generic HOPE for approval. revised minimum
Procurement Manuals (GPMs), technical specifications
Philippine Bidding Documents to the HOPE for
(PBDs), and other standard approval?
forms shall be mandatory upon
all Procuring Entities. However,
whenever necessary, to suit the Did the BAC submit the
particular needs of the procuring adjusted ABC to the
entity, modifications may be HOPE for approval?
made, particularly for major and
specialized procurement, subject
to the approval of the GPPB. 4. From the minutes of Did the BAC ensure that
the BACs meetings and the adjustment in the
BAC Resolutions, look for ABC was at a maximum
information on the BACs of 20% of the ABC for
evaluation to ensure that the second failed
the adjustment in the ABC bidding?
was at a maximum of
20% of the ABC for the
second failed bidding.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 382
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
well as the date, time and - date of the pre-
place of the pre-bid bid conference, if
conference (where applicable?
applicable), submission
- time of the pre-bid
of bids and opening of
conference?
bids;
d.1. including: Following - Place of the pre-
completion of the bid conference?
negotiations, the BAC
shall request all - Deadline for
contractors remaining submission of
in the proceedings to price quotations?
submit on a specified
- Place of
date, a best and final submission of
offer with respect to price quotations?
all aspects of the
proposals, and - Date of opening of
d.2. selection of the price quotations?
successful offer on the
basis of such best and - Time of opening of
final offers meeting price quotations?
the minimum technical
- Place of opening
requirements and not of price
exceeding the ABC; quotations?
e. Scope of work, where
applicable; - following
f. Plans/Drawings and completion of the
Technical Specifications; negotiations,
g. Form of Bid, Price Form, requesting all
and Bill of Quantities; contractors
remaining in the
h. Delivery Time or
proceedings to
Completion Schedule;
submit on a
i. Form, Amount, and specified date, a
Validity of Performance best and final offer
Security and Warranty; with respect to all
1. Form of Contract and aspects of the
General and Special proposals?
Conditions of Contract;
- selection of the
Implementing Rules and Regulations successful offer on
(IRR) of RA 9184, as amended on the basis of such
September 2, 2009: best and final
offers meeting the
17.1. The Bidding Documents shall minimum technical
be prepared by the procuring requirements and
entity following the standard forms not exceeding the
and manuals prescribed by the ABC?
GPPB.
a. Approved Budget for the p. Scope of work?
Contract;
b. Invitation to Bid; q. Plans/Drawings
c. Eligibility Requirements; and Technical
d. Instruction to Bidders, Specifications?
including scope of bid,
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
documents comprising the bid,
criteria for eligibility, bid r. Price Form and Bill
evaluation methodology/criteria of Quantities?
in accordance with the Act, and
post-qualification, as well as the s. Completion
date, time and place of the pre- Schedule?
bid conference (where
applicable), submission of bids t. Form of Contract
and opening of bids; and General and
e. Scope of work, where Special Conditions
applicable; of Contract?
f. Plans/Drawings and Technical
Specifications; Are the Bidding
g. Form of Bid, Price Form, and Bill Documents in the
of Quantities; required form:
h. Completion Schedule;
i. Form, Amount, and Validity a. Request for Price
Period of Bid Security; Quotation?
[REVISED BY the Revised IRR of
RA 9184, item 54.4. Except for b. Instructions to
Limited Source Bidding under Bidders?
Section 49 of this IRR, submission
of bid securities may be c. Price Quotation
dispensed with.] Data Sheet?
j. Form, Amount, and Validity of
Performance Security and d. General Conditions
Warranty; of the Contract?
[Also per Revised IRR of RA
9184, Section 54.5. e. Special Conditions
Performance and warranty of Contract?
securities, as prescribed in
Sections 39 and 62 of this IRR, f. Schedule of
shall be submitted for contracts Requirements?
acquired through the
alternative methods of g. Technical
procurement, except for Specifications?
Shopping under Section 52 and
Negotiated Procurement under h. Price Quotation
Sections 53.2 (emergency Forms?
cases), 53.9 (small value
procurement), 53.10 (lease of
real property), and 53.13 (UN
agencies).]
and
k. Form of Contract and General
and Special Conditions of
Contract.
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Commission on Audit
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
53.1.5. The procuring entity shall
select the successful offer on the
basis of such best and final offers
which should meet the procuring
entitys minimum technical
requirements and should not
exceed the ABC.
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
2. To verify the causes of Analyze the instances of
instances of non-compliance non-compliances to Appropriate Audit Working Papers
and develop appropriate establish the cause(s) and
audit recommendations develop appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the Prepare the appropriate
results of the audit with the audit/ validation document Audit Observation Memorandum (AOM), if applicable
auditees Management reflecting the results of the
audit/validation and
COA Circular No. 2009-006 dated transmit to Management
September 15, 2009 re-
Prescribing the Use of the Rules
and Regulations on Settlement of
Accounts
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Special Services Sector First Update - December 2009
Commission on Audit
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Negotiated Procurement Of Infrastructure Projects
After Two (2) Failed Biddings
The pre-procurement conference is the forum where all officials involved in the
procurement meet and discuss all aspects of a specific procurement activity, which includes the
technical specifications, the Approved Budget for the Contract (ABC), the applicability and
appropriateness of the recommended method of procurement and the related milestones, the
bidding documents, and availability of the pertinent budget release for the project.
A. AUDIT OBJECTIVES:
1. To verify if the Pre-Procurement Conference was conducted within the required time;
3. To verify if during the Pre-Procurement Conference the participants, led by the Bids and
Awards Committee (BAC), performed the required tasks and attained the objectives of the
Conference.
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
2. To verify if the participants 2. Secure from the BAC Did the participants to
to the Pre-Procurement Secretariat duly certified the Pre-Procurement
Conference included the BAC, copies of the documents Conference include
the Secretariat, the unit or (Office Orders, contracts, the:
Organizational/Functional
officials, including Charts, etc) which it used a. BAC?
consultants hired by the as bases for identifying
procuring entity, who and notifying the b. Secretariat?
prepared the Bidding participants to the Pre-
Documents and the draft Procurement Conference, c. unit or officials
Request for Submission of including duly certified who prepared
Price Quotation copies of the notices the Bidding
issued with evidence of Documents and
Implementing Rules and Regulations receipt by the the draft
(IRR) of RA 9184, as amended on participants. Request for
September 2, 2009: Submission of
20.1. The pre-procurement 3. From the Minutes of Price Quotation?
conference shall be attended by Pre-Procurement
the BAC, the Secretariat, the unit Conference look for the d. consultants
or officials, including consultants names of the members of hired by the
hired by the procuring entity, who the BAC, the members of procuring entity,
prepared the Bidding Documents the Secretariat, the who prepared
and the draft Invitation to Bid, for officials and/or the Bidding
each procurement. consultants who prepared Documents and
the Bidding Documents the draft
and the draft Request for Request for
Submission of Price Submission of
Quotation. Price Quotation?
3. To verify if during the Pre- 4. From the Minutes of Did the participants
Procurement Conference the Pre-Procurement led by the BAC
participants, led by the BAC, Conference look for discuss and confirm
information on the the:
performed the following
presentation of the scope
tasks and attained the related of the contract, the ABC, a. Description of
objectives: and contract duration, the the scope of the
a. Discussed relevant deliberation thereon, and contract?
information and confirmed the conclusions reached
as a result of the b. That there was
the description of the scope
deliberation; and analyze no splitting?
of the contract, the ABC, and if they led to the
contract duration; confirmation of the c. Revised ABC?
description of the scope of
b. Discussed relevant
the contract, that there d. Contract
information and confirmed was no splitting, the ABC, duration?
that the procurement is in and the contract duration.
accordance with the project
procurement management
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Commission on Audit
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
plan (PPMP) and annual 5. From the Minutes of Did the participants
procurement plan (APP); Pre-Procurement led by the BAC
Conference look for discuss and confirm
c. Discussed relevant information on the that the procurement
information and confirmed presentation of the review is in accordance with
readiness of the procurement of the PPMP and APP, the the PPMP and APP?
at hand on the following: deliberation thereon, and
the conclusions reached
c.1. the availability of
as a result of the
appropriations and deliberation; and analyze
programmed budget for if they led to the
contract; confirmation of the
c.2. completeness of the procurement is in
Bidding Documents and accordance with the PPMP
their adherence to relevant and APP.
general procurement
guidelines; 6. From the Minutes of Did the participants
c.3. completion of the Pre-Procurement led by the BAC
Conference look for discuss and confirm
detailed engineering
information on the that the procurement
according to the prescribed presentation of at hand is ready as
standards in the case of information, the to:
infrastructure projects; deliberation thereon, and
c.4. confirmation of the the conclusions reached a. availability of
availability of ROW and the as a result of the appropriations and
ownership of affected deliberation; and analyze programmed
properties. if they led to the budget for the
confirmation of the contract?
d. Reviewed, modified and readiness of the
agreed on the criteria for procurement at hand as b. completeness of
eligibility screening, to: the Bidding
evaluation, and post- a. availability of Documents?
appropriations and
qualification;
programmed budget c. adherence of the
e. Reviewed and adopted for the contract, Bidding
the procurement schedule, b. completeness of the Documents with
Bidding Documents the PBDs/
including deadlines and
and their adherence to customized
timeframes, for the different the Philippine Bidding Bidding
activities; Documents (PBDs)/ Documents?
f. Reiterated and customized Bidding
Documents, d. completion of the
emphasized the importance
c. completion of the detailed
of confidentiality and the detailed engineering engineering
applicable sanctions and according to the according to the
penalties, as well as agreed prescribed standards; prescribed
on measures to ensure d. availability of ROW and standards?
compliance with the the ownership of
foregoing; affected properties. e. availability of ROW
and the ownership
g. Confirmed that there was of affected
properties?
no splitting; and
h. identified the
justification for the change in
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 389
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
the mode of procurement Did the participants
from public bidding to led by the BAC
Negotiated Procurement and discuss and confirm
agreed on the the justifications for
the change in the
recommendations to the mode of procurement
HOPE. from public bidding to
Negotiated
Generic Procurement Manual for Procurement and
the Procurement of agreed on the
Infrastructure Projects (May recommendations to
2006) published by the GPPB: the HOPE?
Methodology: How is Negotiated
Procurement conducted? 7. From the Minutes of Did the participants
Pre-Procurement led by the BAC
The procedures for the conduct Conference look for discuss and confirm
of public bidding should be information on the the criteria for:
observed. presentation of the criteria
for eligibility screening, a. Eligibility
Implementing Rules and price quotation evaluation, screening?
Regulations (IRR) of RA 9184, as and post-qualification, the
amended on September 2, 2009: deliberation thereon, and b. Price Quotation
20.1. During the conference, the the conclusions reached evaluation?
participants, led by the BAC, shall: as a result of the
a. Confirm the description and deliberation; and analyze c. Post-
scope of the contract, the if they led to the qualification?
ABC, and contract duration; confirmation of the criteria
b. Ensure that the procurement for eligibility screening,
is in accordance with the price quotation evaluation,
project and annual and post-qualification.
procurement plans;
c. Determine the readiness of 8. From the Minutes of Did the participants
the procurement at hand, Pre-Procurement led by the BAC
including, among other Conference look for discuss and confirm
aspects, the following: information on the the adoption of the
i) availability of appropriations presentation of the procurement schedule
and programmed budget for procurement schedule, including deadlines
the contract; including deadlines and and timeframes for
ii) completeness of the Bidding timeframes for the the different
Documents and their different activities, the no- activities?
adherence to relevant contact rule, the
general procurement deliberation thereon, and
guidelines; the conclusions reached
iii) completion of the detailed as a result of the
engineering according to deliberation; and analyze
the prescribed standards in if they led to the
the case of infrastructure confirmation of the
projects; adoption of the
iv) confirmation of the procurement schedule
availability of ROW and the including deadlines and
ownership of affected timeframes for the
properties. different activities.
d. Review, modify and agree
on the criteria for eligibility
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 390
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
screening, evaluation, and 9. From the Minutes of Did the participants
post-qualification; Pre-Procurement led by the BAC
e. Review and adopt the Conference look for reiterate and
procurement schedule, information on the emphasize the
including deadlines and reiteration and emphasis importance of
timeframes, for the different of the importance of confidentiality and
activities; and confidentiality and the the applicable
f. Reiterate and emphasize the applicable sanctions and sanctions and
importance of confidentiality penalties, as well as the penalties, as well as
and the applicable sanctions agreement on measures the agreement on
and penalties, as well as to ensure compliance. measures to ensure
agree on measures to compliance?
ensure compliance with the
foregoing.
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Commission on Audit
Republic of the Philippines Page 391
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
of Government Contracts means
the division or breaking up of
GOP contracts into smaller
quantities and amounts, or
dividing contract implementation
into artificial phases or sub-
contracts for the purpose of
evading or circumventing the
requirements of law and this
IRR, specially the necessity of
public bidding and the
requirements for the alternative
methods of procurement.
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Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 392
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
commencement of any
procurement activity.
Thus, the MYOA shall be a
pre-requisite for procurement of
a multi-year contract. All
procurement activities should be
within the total project cost and
categories reflected in the
MYOA issued by DBP for the
said MYP.
4.6. As prescribed under Section 47,
Chapter 8, Subtitle B, Title I,
Book V of the Administrative
Code of 1987, no contract
involving the expenditure of
public funds shall be entered
into unless the proper
accounting official of the
procuring entity shall have
certified as to the availability of
funds and the allotment to
which the expenditure or
obligation may be properly
charged.
Definition:
3.1. Allotment - document
issued by the Department of
Budget and Management
(DBM) which authorizes an
agency to incur obligations for
a specified amount as
contained in a legislated
appropriation. The allotment
issued may either be trough
the Agency Budget Matrix
(ABM) which covers the
comprehensive release of
specifically appropriated items
in the agencys budget or
through the Special Allotment
Release Order (SARO).
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 393
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
3.2.2. Project management
office or end-user unit;
3.2.3. General description of the
procurement;
3.2.4. Procurement method to
be adopted;
3.2.5. Time schedule for each
procurement activity;
3.2.6. Source of fund; and
3.2.7. Approved Budget for the
Contract.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 394
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
assisted projects implemented by
agencies in order to authorize
the latter to enter into multi-year
contracts for the full project cost.
A MYOA, which contains an
annual breakdown of the full
project cost, obligates agencies
to include in their budget
proposal for the ensuring years
the amount programmed for the
said year(s).
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 395
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
and develop appropriate establish the cause(s) and
audit recommendations develop appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the Prepare the appropriate
results of the audit with the audit/ validation document Audit Observation Memorandum (AOM), if
auditees Management reflecting the results of applicable
the audit/validation and
COA Circular No. 2009-006 dated transmit to Management
September 15, 2009 re- Prescribing
the Use of the Rules and
Regulations on Settlement of
Accounts
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Commission on Audit
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Negotiated Procurement of Infrastructure Projects
After Two (2) Failed Biddings
A. AUDIT OBJECTIVE:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 397
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
2. To verify if the BAC: 2. From the BAC Resolution Did the BAC
a. recommended the alternative recommending Negotiated recommend the
mode of procurement: Procurement as the method alternative mode of
Negotiated Procurement to the of procurement, look for procurement:
the approval of the HOPE. Negotiated
HOPE,
Procurement to the
and HOPE?
b. the HOPE approved the
alternative method of
procurement Did the HOPE
approve Negotiated
Implementing Rules and Regulations Procurement as the
(IRR) of RA 9184, as amended on method of
September 2, 2009: procurement?
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 398
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
2. To verify the causes of Analyze the instances of
instances of non-compliance and non-compliances to establish Appropriate Audit Working Papers
develop appropriate audit the cause(s) and develop
appropriate audit
recommendations
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the results of Prepare the appropriate
the audit with the auditees audit/ validation document Audit Observation Memorandum (AOM), if
Management reflecting the results of the applicable
audit/validation and transmit
COA Circular No. 2009-006 dated to Management
September 15, 2009 re- Prescribing the
Use of the Rules and Regulations on
Settlement of Accounts
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 399
Negotiated Procurement of Infrastructure Projects
After Two (2) Failed Biddings
A. AUDIT OBJECTIVE:
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Republic of the Philippines Page 400
Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of the
Audit Criteria Answer
procuring entity concerned or the Did the BAC arrive
DPWH Contractors Registry, as the at a list of
case may be, and who have been contractors to be
classified under the type of invited as agreed
contract/ project where the during the
subject contract falls are meetings
eligible to be invited for conducted for the
negotiation. Other contractors not purpose?
previously deemed eligible may also
apply for eligibility.
2. To verify if the BAC invited 2. Compare the names of Did the BAC invite
all contractors identified from the contractors to whom and engage in
the Registry (ies) and other invitations have been sent negotiations with a
bases adopted by the BAC for by the BAC (with evidence sufficient number
of receipt) with the list of of contractors?
the purpose
selected contractors.
3. To verify if the BAC posted 3. Ahead of any Did the BAC post
the Request for Submission of procurement, request the the Request for
Price Quotations BAC Secretariat for advance Submission of Price
continuously in the PhilGEPS information on the first day Quotations
of any posting. continuously in
website and the website of
the:
the procuring entity 4. On the first day of posting
concerned, if available, for 7 access the PhilGEPS website, 1. PhilGEPS
calendar days starting on the the website of the procuring website for 7
date of posting entity concerned, if calendar days
available. Print the page starting on the
Implementing Rules and Regulations where the notice was posted date of
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 401
Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of the
Audit Criteria Answer
(IRR) of RA 9184, as amended on (to form part of the audit advertisement?
September 2, 2009: evidences).
4. To verify if the BAC posted 6. Ahead of any Did the BAC post
the Request for Submission of procurement, request the the Invitation to
Price Quotation continuously BAC Secretariat for advance Bid:
information on the first day
at any conspicuous place
of any posting. 1. continuously for
reserved for the purpose in seven (7) calendar
the premises of the procuring 7. Conduct ocular inspection days?
entity for 7 calendar days, as on the first day of posting.
certified by the head of the 2. at the
BAC Secretariat of the 8. Repeat the ocular conspicuous place
procuring entity inspections (may be at reserved for the
random) during the 7-day purpose in the
Implementing Rules and Regulations period to verify the postings. premises of the
(IRR) of RA 9184, as amended on procuring entity?
September 2, 2009: 9. Request for the
certification of the head of 3. as certified by
54.2. For alternative methods of the BAC Secretariat. the head of the
procurement, advertisement and BAC Secretariat of
posting as prescribed in Section the procuring
21.2.1 of this IRR may be entity?
dispensed with: Provided,
however, That the BAC, through
its Secretariat, shall post the
invitation or request for
submission of price quotations for
Shopping under Sections 52.1(b)
and Negotiated Procurement
under Sections 53.1 (two-failed
biddings) and 53.9 (small value
procurement) of this IRR in the
PhilGEPS website, the website of
the procuring entity concerned, if
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 402
Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of the
Audit Criteria Answer
available, and at any conspicuous
place reserved for this purpose in
the premises of the procuring
entity for a period of seven (7)
calendar days.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Commission on Audit
Republic of the Philippines Page 403
Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of the
Audit Criteria Answer
3. To communicate the Prepare the appropriate
results of the audit with the audit/ validation document Audit Observation Memorandum (AOM), if applicable
auditees Management reflecting the results of the
audit/validation and transmit
COA Circular No. 2009-006 dated to Management
September 15, 2009 re- Prescribing
the Use of the Rules and
Regulations on Settlement of
Accounts
NOTES:
1. Based on the following requirement of the Generic Procurement Manual for the
Procurement of Infrastructure Projects (May 2006) published by the GPPB:
53.1.4. Following completion of the negotiations, the procuring entity shall request all
suppliers, contractors, or consultants remaining in the proceedings to submit, on a
specified date, a best and final offer with respect to all aspects of their proposals.
53.1.5. The procuring entity shall select the successful offer on the basis of such best
and final offers which should meet the procuring entitys minimum technical
requirements and should not exceed the ABC.
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Commission on Audit
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54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 405
On the Procurement Procedures:
NEGOTIATED PROCUREMENT
OF INFRASTRUCTURE PROJECTS
EMERGENCY CASES
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 406
Procurement Procedures:
NEGOTIATED PROCUREMENT OF INFRASTRUCTURE PROJECTS
EMERGENCY CASES
A. AUDIT OBJECTIVE:
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
September 2, 2009: action is
necessary to
53.2. Emergency Cases. In case of prevent damage
imminent danger to life or property to or loss of life
during a state of calamity, or when or property, or
time is of the essence arising from to restore vital
natural or man-made calamities or public services,
other causes where immediate action infrastructure
is necessary to prevent damage to or facilities and
loss of life or property, or to restore other public
vital public services, infrastructure utilities?
facilities and other public utilities.
2. To verify if the BAC validated 2. From the BAC Did the BAC
the justification for adoption of Resolution, look for validate the
the alternative method of information on the justification for
procurement: Negotiated BACs validation of the adoption of the
justification for alternative method
Procurement and through a adoption of the of procurement:
Resolution recommended said alternative method of Negotiated
method to the HOPE for approval procurement: Procurement and
Negotiated recommended said
Implementing Rules and Regulations Procurement and method to the
(IRR) of RA 9184, as amended on recommended said HOPE for approval?
September 2, 2009: method to the HOPE
for approval.
48.1. Subject to the prior approval of
the Head of the Procuring Entity, and
whenever justified by the conditions
provided in this Act, the procuring
entity may, in order to promote
economy and efficiency, resort to any
of the alternative methods of
procurement provided in this Rule. In
all instances, the procuring entity
shall ensure that the most
advantageous price for the
Government is obtained.
48.3. The method of procurement to
be used shall be as indicated in the
Approved Procurement Plan (APP). If
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 408
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
Implementing Rules and Regulations look for the approval of procurement?
(IRR) of RA 9184, as amended on the HOPE.
September 2, 2009:
48.3. The method of procurement to
be used shall be as indicated in the
Approved Procurement Plan (APP). If
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 409
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the results of Prepare the appropriate
the audit with the auditees audit/ validation document Audit Observation Memorandum (AOM), if
Management reflecting the results of applicable
the audit/validation and
COA Circular No. 2009-006 dated transmit to Management
September 15, 2009 re- Prescribing the
Use of the Rules and Regulations on
Settlement of Accounts
NOTES:
1. Based on the following requirement of the Generic Procurement Manual for the
Procurement of Infrastructure Projects (May 2006) published by the GPPB:
for the rest of the procurement procedures up to the award of the contract, the
Audit Guide on the Procedures: Competitive/Public Bidding are to be observed.
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 410
On the Procurement Procedures:
NEGOTIATED PROCUREMENT
OF INFRASTRUCTURE PROJECTS
TAKE-OVER OF CONTRACTS
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 411
Procurement Procedures:
NEGOTIATED PROCUREMENT OF INFRASTRUCTURE PROJECTS
TAKE-OVER OF CONTRACTS
Take-over of contracts, which have been rescinded or terminated for causes provided for
in the contract and existing laws, where immediate action is necessary to prevent damage to or
loss of life or property, or to restore vital public services, infrastructure facilities and other public
utilities.
A. AUDIT OBJECTIVE
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 412
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of the
Answer
be made on the basis of regard to instances of non-
the contract; compliance.
c. etc.
and develop appropriate
audit recommendations NOTE:
Also refer to the
Implementing Rules and
OFFENSES AND
Regulations (IRR) of RA 9184, as
PENALTIES portion of
amended on September 2, 2009:
this Audit Guide.
Observers shall be invited at least
three (3) calendar days before the
date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the Prepare the appropriate
results of the audit with the audit/ validation document Audit Observation Memorandum (AOM), if applicable
auditees Management reflecting the results of the
audit/validation and transmit
COA Circular No. 2009-006 dated to Management
September 15, 2009 re- Prescribing
the Use of the Rules and
Regulations on Settlement of
Accounts
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Commission on Audit
Republic of the Philippines Page 413
Negotiated Procurement of Infrastructure Projects
TAKE-Over of Contracts
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement (Take-Over) was
in accordance with the rules and regulations
2. To verify if the BAC validated 2. From the BAC Resolution, Did the BAC validate
the justification for adoption of look for information on the justification for
the alternative method of the BACs validation of adoption of the
the justification for alternative method of
procurement: Negotiated
adoption of the procurement:
Procurement (Take-Over of alternative method of Negotiated
Contracts) and through a procurement: Negotiated Procurement (Take-
Resolution recommended said Procurement (Take-Over) Over) and
method to the HOPE for approval and recommended said recommend said
method to the HOPE for method to the HOPE
Implementing Rules and Regulations approval. for approval?
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Commission on Audit
Republic of the Philippines Page 414
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
(IRR) of RA 9184, as amended on
September 2, 2009:
48.1. Subject to the prior approval of
the Head of the Procuring Entity, and
whenever justified by the conditions
provided in this Act, the procuring
entity may, in order to promote
economy and efficiency, resort to any
of the alternative methods of
procurement provided in this Rule. In
all instances, the procuring entity
shall ensure that the most
advantageous price for the
Government is obtained.
48.3. The method of procurement to
be used shall be as indicated in the
Approved Procurement Plan (APP). If
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
3. To verify if the HOPE 3. From the BAC Resolution Did the HOPE
approved the alternative method recommending the approve Negotiated
of procurement: Negotiated negotiated procurement as Procurement as the
Procurement (Take-Over) an alternative method, look method of
for the approval of the procurement?
HOPE.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
48.3. The method of procurement to
be used shall be as indicated in the
Approved Procurement Plan (APP). If
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
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Commission on Audit
Republic of the Philippines Page 415
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
4. To communicate the results of 4. Prepare the appropriate
the audit/ validation with audit/ validation document Audit Observation Memorandum (AOM)
management reflecting the results of the
audit/validation and transmit
to management
COA Circular No. 2009-006 dated
September 15, 2009 re- Rules and
Regulations on Settlement
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 416
Negotiated Procurement of Infrastructure Projects
Take-Over of Contracts
III. NEGOTIATION
A. AUDIT OBJECTIVE:
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Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of
Audit Criteria the Answer
WHEN NEGOTIATION WITH THE SECOND LCB FOR THE PROJECT FAILED
1. When the negotiation with 1. From the Minutes of the When the
the second LCB failed, to BAC meetings, TWG negotiation with
verify if the BAC negotiated evaluation reports with the second LCB
the contract with the bidder supporting documents duly failed, did the BAC
reviewed by the BAC, look negotiate the
with the third lowest for information on the contract with the
calculated bid for the project BACs negotiations. third lowest
under consideration at the calculated bid at
bidders original bid price the bidders
original price?
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
53.3. NOTES:
53.3.1.
53.3.2. If negotiation fails, then If negotiation prospered,
negotiation shall be done with proceed to Post-
the third lowest calculated bidder
qualification then
at his original price. If the
negotiation fails again, a short Award using the Audit
list of at least three (3) eligible Guide for Competitive/
contractors shall be invited to Public Bidding for
submit their bids, and Infrastructure Projects.
negotiation shall be made
starting with the lowest
calculated bidder. If negotiation failed,
proceed to the next audit
53.3.3. Authority to negotiate
Sub-objective.
contracts for projects under
these exceptional cases shall be
subject to prior approval by the
Heads of the Procuring Entities
concerned, within their
respective limits of approving
authority.
WHEN NEGOTIATION WITH THE THIRD LCB FOR THE PROJECT FAILED
1. To verify if the BAC used 1. From the Minutes of the Did the BAC use
the Procuring Entitys registry BAC meetings, TWG the Procuring
of contractors (bona fide evaluation reports Entitys registry of
contractors licensed with the CIAP supported with copies of contractors who
the Procuring Entitys have been
whose eligibility documents are Registry of Contractors classified under the
on file with the Procuring Entity and/or the DPWH type of
concerned) or the Department Contractors Registry, look contract/project
of Public Works and for information on the basis where the subject
Highways (DPWH) of identification of the contract falls, as
Contractors Registry, and contractors to be invited for one of the bases
who have been classified the negotiations and the for selecting the
under the type of shortlist of identified contractors to be
contractors. invited for the
contract/project where the
negotiations?
subject contract falls as basis
for preparing the shortlist of
contractors to be invited for
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 418
Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of
Audit Criteria the Answer
the negotiations Did the BAC use
the DPWH Registry
Implementing Rules and Regulations of contractors who
(IRR) of RA 9184, as amended on have been
September 2, 2009: classified under the
type of
53.3. contract/project
53.3.1. where the subject
53.3.2. If negotiation fails, then contract falls, as
negotiation shall be done with one of the bases
the third lowest calculated/ for selecting the
highest rated bidder at his contractors to be
original price. If the negotiation invited for the
fails again, a short list of at least negotiations?
three (3) eligible contractors
shall be invited to submit their
bids, and negotiation shall be Did the BAC arrive
made starting with the lowest at the shortlist of
calculated bidder. contractors to be
invited using the
53.1.2.2. All Procuring Entities criteria and
shall maintain a registry of procedures as
contractors as basis for selecting agreed during the
the contractors for negotiations. meetings
conducted for the
purpose?
2. To verify if the BAC invited 2. Compare the names of Did the BAC invite
at least three short listed the contractors to whom at least three (3)
contractors to submit their invitations have been sent short listed
bids by the BAC (with evidence contractors to
of receipt) with the submit their bids?
contractors in the shortlist.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
53.3.2. If negotiation fails, then
negotiation shall be done with
the third lowest calculated bidder
at his original price. If the
negotiation fails again, a short
list of at least three (3) eligible
contractors shall be invited to
submit their bids, and
negotiation shall be made
starting with the lowest
calculated bidder.
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Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of
Audit Criteria the Answer
negotiation shall be done with
the third lowest calculated/
QUESTION:
highest rated bidder at his
original price. If the negotiation What will happen if
fails again, a short list of at least after negotiation which
three (3) eligible contractors prospered, the bidder
shall be invited to submit their
bids, and negotiation shall be was post-disqualified?
made starting with the lowest
calculated/highest rated bidder.
NOTES:
1. Based on the following requirement of the Generic Procurement Manual for the
Procurement of Infrastructure Projects (May 2006) published by the GPPB:
for the rest of the procurement procedures up to the award of the contract, the
Audit Guide on the Procedures: Competitive/Public Bidding are to be observed.
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission
of bid securities may be dispensed with.
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On the Procurement Procedures:
NEGOTIATED PROCUREMENT
OF INFRASTRUCTURE PROJECTS
ADJACENT OR CONTIGUOUS
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Procurement Procedures:
NEGOTIATED PROCUREMENT OF INFRASTRUCTURE PROJECTS
ADJACENT OR CONTIGUOUS
A. AUDIT OBJECTIVE:
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
mobilization cost; same prices or lower unit c. the subject
f. the amount involved does not prices as in the original contract to be
exceed the amount of the contract less mobilization negotiated has
ongoing project; cost; similar or related
f. the amount involved does scopes of work;?
g. the contractor has no not exceed the amount
negative slippage/delay; of the ongoing project;
h. the negotiations for the g. the contractor has no d. it is within the
procurement are commenced negative slippage/delay, contracting
before the expiry of the h. the negotiations for the capacity of the
original contract. procurement are contractor?
commenced before the
Implementing Rules and Regulations expiry of the original
(IRR) of RA 9184, as amended on contract. e. the contractor uses
September 2, 2009: the same prices or
lower unit prices
53.4. Adjacent or Contiguous. Where as in the original
the subject contract is adjacent or contract less
contiguous to an on-going Infrastructure mobilization cost?
Project or Consulting Service where the
consultants have unique experience and f. the amount
expertise to deliver the required service: involved does not
Provided, however, That (a) the original exceed the
contract is the result of a Competitive amount of the
Bidding; (b) the subject contract to be ongoing project?
negotiated has similar or related scopes
of work; (c) it is within the contracting
capacity of the contractor/consultant; (d) g. the contractor has
the contractor/consultant uses the same no negative
prices or lower unit prices as in the slippage/delay?
original contract less mobilization cost;
(e) the amount involved does not exceed
the amount of the ongoing project; and h. the negotiations
(f) the contractor/ consultant has no for the
negative slippage/delay: Provided, procurement are
further, That negotiations for the commenced
procurement are commenced before the before the expiry
expiry of the original contract. of the original
contract?
2. To verify if the BAC validated 2. From the BAC Resolution, Did the BAC validate
the justifications for adoption of look for information on the justification for
the alternative method of the BACs validation of adoption of the
procurement: Negotiated the justification for alternative method of
adoption of the procurement:
Procurement (Adjacent or
alternative method of Negotiated
Contiguous) and through a procurement: Negotiated Procurement
Resolution recommended said Procurement (Adjacent or (Adjacent or
method to the HOPE for approval Contiguous) and Contiguous) and
recommended said recommend said
Implementing Rules and Regulations method to the HOPE for method to the HOPE
(IRR) of RA 9184, as amended on approval. for approval?
September 2, 2009:
48.1. Subject to the prior approval of
the Head of the Procuring Entity, and
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
whenever justified by the conditions
provided in this Act, the procuring
entity may, in order to promote
economy and efficiency, resort to any
of the alternative methods of
procurement provided in this Rule. In
all instances, the procuring entity
shall ensure that the most
advantageous price for the
Government is obtained.
3. To verify if the HOPE 3. From the BAC Resolution Did the HOPE
approved the alternative method recommending the approve Negotiated
of procurement: Negotiated negotiated procurement as Procurement
an alternative method, look (Adjacent or
Procurement (Adjacent or
for the approval of the Contiguous) as the
Contiguous)
HOPE. method of
procurement?
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
48.3. The method of procurement to
be used shall be as indicated in the
Approved Procurement Plan (APP). If
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
resulting contract; appropriate actions were
taken by the auditee in
b. validity of any payment to be regard to instances of non-
made on the basis of the compliance.
contract;
c. etc.
and develop appropriate audit NOTE:
recommendations Also refer to the
Implementing Rules and Regulations OFFENSES AND
(IRR) of RA 9184, as amended on PENALTIES portion of
September 2, 2009: this Audit Guide.
Observers shall be invited at least
three (3) calendar days before the
date of the procurement stage/activity.
The absence of observers will not
nullify the BAC proceedings,
provided that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the results of Prepare the appropriate
the audit with the auditees audit/ validation document Audit Observation Memorandum (AOM), if
Management reflecting the results of the applicable
audit/validation and transmit
COA Circular No. 2009-006 dated to Management
September 15, 2009 re- Prescribing the
Use of the Rules and Regulations on
Settlement of Accounts
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Negotiated Procurement of Infrastructure Projects
Adjacent or Contiguous
II. NEGOTIATION
A. AUDIT OBJECTIVE:
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Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of
Audit Criteria the Answer
ongoing project; and (f) the the project is to be
contractor/ consultant has no subjected to
negative slippage/delay: Provided, competitive/public
further, That negotiations for the bidding. For the audit,
procurement are commenced before
adopt the Audit Guide
the expiry of the original contract.
for Competitive/Public
Bidding for
Infrastructure Projects.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Audit Sub-objective Audit Activities Audit Question Yes No Particulars of
Audit Criteria the Answer
3. To communicate the Prepare the appropriate audit/
results of the audit with the validation document reflecting Audit Observation Memorandum (AOM), if
auditees Management the results of the applicable
audit/validation and transmit
COA Circular No. 2009-006 dated to Management
September 15, 2009 re- Prescribing
the Use of the Rules and
Regulations on Settlement of
Accounts
NOTES:
for the rest of the procurement procedures, the Audit Guide on the
Procedures: Competitive/Public Bidding are to be observed.
54.4. Except for Limited Source Bidding under Section 49 of this IRR,
submission of bid securities may be dispensed with.
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On the Procurement Procedures:
AGENCY-TO-AGENCY
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Procurement Procedures:
For purposes of this Section 53.5 of the Revised IRR of RA 9184, the term agency
excludes GOCCs incorporated under Batas Pambansa Blg. 68, otherwise known as the
Corporation Code of the Philippines. The GPPB shall issue guidelines to implement this
provision
NOTE:
No Audit Guide has been developed for this alternative method of
procurement since no Guidelines has as yet been issued by the GPPB.
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On the Procurement Procedures:
NEGOTIATED PROCUREMENT
OF INFRASTRUCTURE PROJECTS
COMMUNITY PARTICIPATION
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Procurement Procedures:
NEGOTIATED PROCUREMENT OF INFRASTRUCTURE PROJECTS
COMMUNITY PARTICIPATION
A. AUDIT OBJECTIVE:
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
53.12. Community Participation.
Where, in the interest of project
sustainability or to achieve certain
specific social objectives, it is
desirable in selected project
components to call for participation of
local communities in the delivery of
services, the procuring entity shall
propose the procedures,
specifications, and contract packaging
which are subject to the approval of
the GPPB.
48.1. Subject to the prior approval of
the Head of the Procuring Entity, and
whenever justified by the conditions
provided in this Act, the procuring
entity may, in order to promote
economy and efficiency, resort to any
of the alternative methods of
procurement provided in this Rule. In
all instances, the procuring entity
shall ensure that the most
advantageous price for the
Government is obtained.
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
2. To verify if the HOPE 2. From the BAC Resolution Did the HOPE
approved the alternative method recommending the approve Negotiated
of procurement: Negotiated negotiated procurement as Procurement as the
Procurement an alternative method, look method of
for the approval of the procurement?
HOPE.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
48.3. The method of procurement to
be used shall be as indicated in the
Approved Procurement Plan (APP). If
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
4. To verify if the GPPB approved 4. From the documentation Were the proposed
the proposed procedures, of the proposed procedures,
specifications and contract procedures, specifications specifications and
and contract packaging, contract packaging
packaging submitted by the
look for the approval by the approved by the
procuring entity GPPB. GPPB?
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Commission on Audit
Republic of the Philippines Page 434
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
Where, in the interest of project
sustainability or to achieve certain
specific social objectives, it is
desirable in selected project
components to call for participation of
local communities in the delivery of
services, the procuring entity shall
propose the procedures,
specifications, and contract packaging
which are subject to the approval of
the GPPB.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
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On the Procurement Procedures:
SMALL-VALUE PROCUREMENT
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Procurement Procedures:
NEGOTIATED PROCUREMENT FOR INFRASTRUCTURE PROJECTS
SMALL-VALUE PROCUREMENT
Small-Value Procurement - Where the amount of procurement does not exceed the
thresholds prescribed in Annex H of the IRR, RA 984, the procuring entity shall draw up a list of
at least three (3) contractors of known qualifications which will be invited to submit proposals.
a) For NGAs, GOCCs, GFIs, and SUCs, Five Hundred Thousand Pesos (P500,000).
A. AUDIT OBJECTIVE:
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
1. To verify if the BAC validated: 1. From the evaluation Did the BAC validate
a. that the original mode of report with supporting that the original mode
procurement per APP was documents and of procurement per
minutes of the BACs APP was public
public bidding but cannot be
meetings and relevant bidding but cannot be
ultimately pursued; BAC Resolution(s), look ultimately pursued?
and, for information on the
b. the existence of the conditions BACs validation that
to justify Small-Value the original mode of Did the BAC validate:
Procurement and the amount procurement per APP
involved did not exceed the was public bidding but a. the existence of
thresholds in Annex H of the cannot be ultimately the conditions to
Revised IRR of RA 9184. pursued and of the justify Small-Value
existence of the Procurement?
Implementing Rules and Regulations conditions to justify
(IRR) of RA 9184, as amended on Small-Value OR
September 2, 2009: Procurement.
b. the amount
48.3. The method of procurement to involved did not
be used shall be as indicated in the exceed the
Approved Procurement Plan (APP). If thresholds in
the original mode of procurement Annex H of the
recommended in the APP was public Revised IRR of RA
bidding but cannot be ultimately 9184?
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
53.9. Small Value Procurement.
Where the the amount involved
does not exceed the thresholds
prescribed in Annex H of this IRR.
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
approve Small-Value
Implementing Rules and Regulations Procurement as the
(IRR) of RA 9184, as amended on method of
September 2, 2009: procurement?
48.3. The method of procurement to
be used shall be as indicated in the
Approved Procurement Plan (APP). If
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
A. AUDIT OBJECTIVE
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
splitting and the documents
Implementing Rules and Regulations that became their basis for
(IRR) of RA 9184, as amended on such.
September 2, 2009:
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
1. . . . calendar days?
2. . . .
3. Procedural Guidelines
d. RFQs shall also be posted for
a period of seven (7) calendar
days in the Philippine
Government Electronic
Procurement System (PhilG-
EPS) website, website of the
procuring entity, if available,
and at any conspicuous place
reserved for this purpose in the
premises of the procuring
entity. However, in the following
instances, the posting
requirement shall not be
applicable:
i.
ii. RFQs with ABCs equal to
Fifty Thousand Pesos (Php
50,000.00) and below.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Guidelines for Shopping and Small quotations conducted by the the RFQ?
Value Procurement covered by GPPB procuring entity, look for the
Resolution No. 09-2009, dated 23 verification on the compliance
November 2009: with the specifications and
other terms and conditions
1. . . . stated in the RFQ.
2. . . .
3. Procedural Guidelines
h. Award of contract shall be
made to the lowest quotation
for infrastructure projects which
complies with the specifications
and other terms and conditions
stated in the RFQ.
6. For procurement with and 9. Ahead of the procurement, Did the procuring
ABC of more than Php request the procuring entity entity post the
50,000.00, To verify if the for advance information on the award in:
schedule of any posting.
procuring entity posted the
a. the PhilGEPS?
award in: 10. Access the PhilGEPS
a. the PhilGEPS, website, the website of the b. the website of
b. the website of the procuring entity concerned, if the procuring
procuring entity, if available and print the page entity?
available where the award was posted
c. any conspicuous place in (to form part of the audit c. any
the premises of the evidences). conspicuous
procuring entity place in the
11. Conduct ocular inspection premises of
Guidelines for Shopping and Small on the schedule of posting. the procuring
Value Procurement covered by GPPB entity?
Resolution No. 09-2009, dated 23
November 2009:
1. . . .
2. . . .
3. Procedural Guidelines
i. For information purposes, all
awards shall be posted in the
PhilG-EPS website, website of
the procuring entity, if available,
and at any conspicuous place
reserved for this purpose in the
premises of the procuring entity
except for those with ABCs
equal to Fifty Thousand Pesos
(Php 50,000.00) and below.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
including the validity of the Also determine if appropriate
resulting contract; actions were taken by the
auditee in regard to instances
b. validity of any payment to of non-compliance.
be made on the basis of
the contract;
c. etc.
NOTE:
and develop appropriate Also refer to the
audit recommendations OFFENSES AND
Implementing Rules and PENALTIES portion of
Regulations (IRR) of RA 9184, as this Audit Guide.
amended on September 2, 2009:
Observers shall be invited at least
three (3) calendar days before the
date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Other criteria:
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
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On the Procurement Procedures:
NON-GOVERNMENTAL
ORGANIZATIONS (NGO)
PARTICIPATION
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Procurement Procedures:
NEGOTIATED PROCUREMENT FOR INFRASTRUCTURE PROJECTS
NGO PARTICIPATION
NOTE:
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Commission on Audit
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On the Procurement Procedures:
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Procurement Procedures:
COMPETITIVE / PUBLIC BIDDING FOR THE
PROCUREMENT OF CONSULTING SERVICES
I. PREPARATORY ACTIVITY: BIDDING DOCUMENTS
Bidding documents are documents issued by the Procuring Entity to provide prospective
bidders all the necessary information that they need to prepare their bids.
A. AUDIT OBJECTIVE:
To verify if the Bidding Documents for the specific procurement followed the standard
forms and manuals prescribed by the Government Procurement Policy Board (GPPB)
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
manuals prescribed by the GPPB. Documents for Consulting qualification
17.1. The Bidding Documents Services. methodology?
shall include the following:
a) Approved Budget for the - date of the
Contract (ABC); pre-bid
b) Request for Expression of conference, if
Interest; applicable?
c) Eligibility Documents/
Requirements; - time of the pre-
d) Eligibility Data Sheet; bid conference,
e) Instructions to Bidders, if applicable?
including documents comprising
the bid, criteria for eligibility, bid - Place of the
evaluation methodology pre-bid
(Quality-Based or Quality-Cost conference, if
Based)/criteria, and post- applicable?
qualification, as well as the
date, time and place of the pre- - Deadline for
bid conference (where submission of
applicable), submission of bids bids?
and opening of bids;
f) Bid Data Sheet; - Place of
g) Terms of Reference; submission of
h) Scope of Services; bids?
i) Form of Bid (Technical and
Financial Proposal Forms); - Date of
j) Completion Schedule; opening of
k) Form, Amount, and Validity bids?
Period of Bid Security;
l) Form, Amount, and Validity of - Time of
Performance Security; and opening of
m) Form of Contract and General bids?
and Special Conditions of
Contract - Place of
opening of
bids?
e. Terms of
Reference?
f. Form of Bid?
g. Completion
Schedule?
h. Form, Amount,
and Validity
Period of Bid
Security?
i. Form, Amount,
and Validity of
Performance
Security?
j. Form of
Contract,
General and
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Special
Conditions of
Contract?
a. Request for
Expression of
Interest?
b. Instructions to
Bidders?
d. General
Conditions of
the Contract?
e. Special
Conditions of
Contract?
f. Terms of
Reference?
g. Bidding Forms?
h. Appendices?
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
observers will not nullify the BAC
proceedings, provided that
they have been duly invited in
writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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II. PREPARATORY ACTIVITY: PRE-PROCUREMENT CONFERENCE
(For procurement of consulting service costing more than P1 million)
The pre-procurement conference is the forum where all officials involved in the procurement
meet and discuss all aspects of a specific procurement activity, which includes the technical
specifications, the Approved Budget for the Contract (ABC), the applicability and appropriateness of the
recommended method of procurement and the related milestones, the bidding documents, and
availability of the pertinent budget release for the project.
A. AUDIT OBJECTIVES:
1. To verify if the Pre-Procurement Conference was conducted within the required time;
3. To verify if during the Conference the participants, led by the Bids and Awards Committee
(BAC), performed the required tasks and attained the objectives of the Conference.
2. To verify if the participants 2. Secure from the BAC Did the participants to
to the Pre-Procurement Secretariat duly certified the Conference
Conference included the BAC, copies of the documents include the:
(Office Orders, contracts,
the Secretariat, the unit or
Organizational/Functional a. BAC?
officials, including consultants Charts, etc) which it used
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 453
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
hired by the procuring entity, as bases for identifying
who prepared the Bidding and notifying the b. Secretariat?
Documents and the draft participants to the Pre-
Procurement Conference,
Request for Expression of
including duly certified c. unit or officials who
Interest
copies of the notices prepared the
issued with evidence of Bidding
Implementing Rules and Regulations receipt by the participants Documents and
(IRR) of RA 9184, as amended on the draft Request
September 2, 2009: for Expression of
20.1. The pre-procurement 3. From the Minutes of Interest?
conference shall be attended by the Pre-Procurement
BAC, the Secretariat, the unit or Conference look for the
officials, including consultants hired names of the members of d. consultants hired
by the procuring entity, who the BAC, the members of by the procuring
prepared the Bidding Documents the Secretariat, the entity, who
and the draft Request for Expression officials and/or prepared the
of Interest, for each procurement. consultants who prepared Bidding
the Bidding Documents Documents and
and the draft Request for the draft Request
Expression of Interest for Expression of
Interest?
3. To verify if during the Pre- 4. From the Minutes of Did the participants
Procurement Conference the Pre-Procurement led by the BAC
participants, led by the BAC, Conference look for discuss and confirm
information on the the:
performed the following tasks
presentation of the scope
and attained the related of the contract, the ABC, a. Description of the
objectives: and contract duration, the scope of the
a. Discussed relevant deliberation thereon, and contract?
information and confirmed the the conclusions reached
description of the scope of the as a result of the
contract, the ABC, and deliberation; and analyze b. ABC?
contract duration; if they led to the
b. Discussed relevant confirmation of the
description of the scope of c. Contract duration?
information and confirmed
the contract, the ABC, and
that the procurement is in the contract duration
accordance with the project
procurement management
plan (PPMP) and annual
procurement plan (APP);
c. Discussed relevant
information and confirmed the
availability of appropriations
and programmed budget for 5. From the Minutes of Did the participants
contract; Pre-Procurement led by the BAC
d. Discussed relevant Conference look for discuss and confirm
information and confirmed the information on the that the:
completeness of the Bidding presentation of the review
of the PPMP and APP,
Documents and their
availability of a. procurement is in
adherence to relevant general appropriations and accordance with
procurement guidelines; programmed budget for the PPMP and
e. Reviewed, modified and the contract, the APP?
agreed on the criteria for deliberation thereon, and
the conclusions reached
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
eligibility screening, criteria as a result of the b. appropriations
for short listing, minimum deliberation; and analyze and programmed
score for short listing, number if they led to the budget for the
confirmation of the contract are
of short listed consultants,
procurement is in available?
criteria for bid evaluation and
accordance with the PPMP
post-qualification; and APP, and availability
f. Reviewed and adopted the of appropriations and
procurement schedule, programmed budget for
including deadlines and the contract.
timeframes, for the different
activities; and
g. Reiterated and 6. From the Minutes of Did the participants
emphasized the importance of Pre-Procurement led by the BAC
Conference look for discuss and confirm
confidentiality and the
information on the the following:
applicable sanctions and presentation of the
penalties, as well as agreed on Bidding Documents, the
measures to ensure deliberation thereon, and a. completeness of
compliance with the foregoing. the conclusions reached the Bidding
as a result of the Documents?
Implementing Rules and Regulations deliberation; and analyze
(IRR) of RA 9184, as amended on if they led to the
September 2, 2009: confirmation of the b. adherence to the
completeness of the Philippine Bidding
20.1. During the conference, the Bidding Documents and Documents
participants, led by the BAC, shall: their adherence to the (PBDs)/
a) Confirm the description and Philippine Bidding customized
scope of the contract, the ABC, Documents (PBDs)/ Bidding
and contract duration; customized Bidding Documents?
b) Ensure that the procurement is Documents.
in accordance with the project
and annual procurement plans; 7. From the Minutes of Did the participants
c) Determine the readiness of the Pre-Procurement led by the BAC
procurement at hand, including, Conference look for discuss and confirm
among other aspects, the information on the the:
following: presentation of the criteria a. Criteria for
i) availability of appropriations for eligibility screening, Eligibility screening?
and programmed budget for bid evaluation, and post-
contract; qualification, the a. Criteria for short
ii) completeness of the Bidding deliberation thereon, and listing?
Documents and their adherence the conclusions reached
to relevant general procurement as a result of the b. Minimum score
guidelines; deliberation; and analyze for short listing?
iii) if they led to the
d) Review, modify and agree on confirmation of the criteria c. Number of short
the criteria for eligibility for eligibility screening, listed
screening, evaluation, and post- criteria for short listing, consultants?
qualification; minimum score for short
e) Review and adopt the listing, number of short d. Criteria for Bid
procurement schedule, including listed consultants, criteria evaluation?
deadlines and timeframes, for for bid evaluation and
the different activities; and post-qualification. e. Criteria Post-
f) Reiterate and emphasize the qualification?
importance of confidentiality
and the applicable sanctions
and penalties, as well as agree
on measures to ensure
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 455
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
compliance with the foregoing.
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Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
procuring entities, can proceed
with the procurement activities
prior to issuance of the notice of
award.
4.5. For Multi-Year Projects (MYPs),
for which the initial funding
sourced from either the
existing/current years budget or
the NEP is not sufficient to
cover the total cost of the
project, it is required that a Multi-
Year Obligational Authority
(MYOA) must already have been
issued in accord with DBM
Circular Letter 2004-012 prior to
commencement of any
procurement activity.
Thus, the MYOA shall be a
pre-requisite for procurement of
a multi-year contract. All
procurement activities should be
within the total project cost and
categories reflected in the MYOA
issued by DBP for the said MYP.
4.6. As prescribed under Section 47,
Chapter 8, Subtitle B, Title I,
Book V of the Administrative
Code of 1987, no contract
involving the expenditure of
public funds shall be entered into
unless the proper accounting
official of the procuring entity
shall have certified as to the
availability of funds and the
allotment to which the
expenditure or obligation may be
properly charged.
Definition:
3.1. Allotment - document issued
by the Department of Budget
and Management (DBM) which
authorizes an agency to incur
obligations for a specified
amount as contained in a
legislated appropriation. The
allotment issued may either be
trough the Agency Budget
Matrix (ABM) which covers the
comprehensive release of
specifically appropriated items
in the agencys budget or
through the Special Allotment
Release Order (SARO).
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Commission on Audit
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
procurement activity (i.e.,
goods, services, civil works to
be procured) that it plans to
undertake within the calendar
year. This document contains
the following information:
3.2.1. Name of the procurement
program/project;
3.2.2. Project management office
or end-user unit;
3.2.3. General description of the
procurement;
3.2.4. Procurement method to be
adopted;
3.2.5. Time schedule for each
procurement activity;
3.2.6. Source of fund; and
3.2.7. Approved Budget for the
Contract.
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Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
3.8. Multi-Year Obligational
Authority (MYOA) a document
issued by the DBM either for
locally funded projects or foreign
assisted projects implemented by
agencies in order to authorize the
latter to enter into multi-year
contracts for the full project cost.
A MYOA, which contains an annual
breakdown of the full project cost,
obligates agencies to include in
their budget proposal for the
ensuring years the amount
programmed for the said year(s).
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
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III. ADVERTISING AND POSTING OF THE
REQUEST FOR EXPRESSION OF INTEREST
(For consulting service contracts costing more than P1 million
or with duration of more than 4 months)
Advertising and posting are conducted to ensure transparency of the procurement process,
widest possible dissemination to increase the number of prospective bidders, and intensify competition
for the procurement activity or project
A. AUDIT OBJECTIVE:
To verify if the Request for Expression of Interest was advertised and posted in the media as
required and within the specified time
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
2. To verify if the BAC posted 3. Ahead of any Did the BAC post the
the Request for Expression procurement, request the Request for
of Interest continuously in BAC Secretariat for advance Expression of Interest
the PhilGEPS website, the information on the first day continuously in the:
of any posting.
website of the procuring
a. PhilGEPS website
entity concerned, if 4. On the first day of posting for 7 calendar
available, and the website access the PhilGEPS website, days starting on
prescribed by the foreign the website of the procuring the date of
government/foreign or entity concerned, if advertisement?
international financing available, and website
institution, if applicable, for prescribed by the foreign b. website of the
7 calendar days starting on government/ foreign or procuring entity
international financing concerned, if
the date of advertisement
institution, if applicable. available, for 7
Print the page where the calendar days
Implementing Rules and Regulations notice was posted (to form starting on the
(IRR) of RA 9184, as amended on
part of the audit evidences). date of
September 2 2009: advertisement?
5. Access the websites at
21.2.1. Except as otherwise
random during the 7-day c. website prescribed
provided in Sections 21.2.2 and period to verify the postings. by the foreign
54.2 of this IRR and for the government/
procurement of common-use foreign or
goods and supplies, the Request international
for Expression of Interest shall be: financing
a institution, if
b. Posted continuously in the applicable, for 7
PhilGEPS website, the website calendar days
of the procuring entity starting on the
concerned, if available, and the date of
website prescribed by the advertisement?
foreign government/foreign or
international financing
institution, if applicable, for 7
calendar days starting on the
date of advertisement
3. To verify if the BAC posted 6. Ahead of any Did the BAC post the
the Request for Expression procurement, request the Request for
of Interest continuously at BAC Secretariat for advance Expression of
any conspicuous place information on the first day Interest:
of any posting.
reserved for the purpose in
a. continuously for
the premises of the 7. Conduct ocular inspection seven (7)
procuring entity for 7 on the first day of posting. calendar days,
calendar days, as certified by
the head of the BAC 8. Repeat the ocular b. at the
Secretariat of the procuring inspections (may be at conspicuous
entity random) during the 7-day place reserved
period to verify the postings. for the purpose
Implementing Rules and Regulations in the premises
(IRR) of RA 9184, as amended on 9. Request for the of the procuring
September 3, 2009: certification of the head of entity,
the BAC Secretariat.
21.2.1. Except as otherwise c. as certified by
provided in Sections 21.2.2 and the head of the
54.2 of this IRR and for the BAC Secretariat
procurement of common-use of the procuring
entity?
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
goods and supplies, the Request
for Expression of Interest shall be:
a.
b.
c. Posted at any conspicuous place
reserved for the purpose in the
premises of the procuring entity
for 7 calendar days, as certified
by the head of the BAC
Secretariat of the procuring
entity.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
3. To communicate the Prepare the appropriate
results of the audit with the audit/ validation document Audit Observation Memorandum (AOM), if
auditees Management reflecting the results of the applicable
audit/validation and transmit
COA Circular No. 2009-006 dated to Management
September 15, 2009 re-
Prescribing the Use of the Rules
and Regulations on Settlement of
Accounts
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IV. POSTING OF THE REQUEST FOR EXPRESSION OF INTEREST
(For consulting service contracts costing P1 million and below
or with duration of 4 months or less)
A. AUDIT OBJECTIVE:
To verify if the Request for Expression of Interest was posted in the media as required and within
the specified time
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
a
b. Posted continuously in the
PhilGEPS website, the website
of the procuring entity
concerned, if available, and the
website prescribed by the
foreign government/foreign or
international financing
institution, if applicable, for 7
calendar days starting on the
date of advertisement
2. To verify if the BAC posted 4. Ahead of any Did the BAC post the
the Request for Expression procurement, request Request for
of Interest continuously at the BAC Secretariat for Expression of
any conspicuous place advance information on Interest:
the first day of any
reserved for the purpose in posting.
the premises of the a. continuously for
procuring entity for 7 seven (7) calendar
calendar days, as certified by 5. Conduct ocular days,
the head of the BAC inspection on the first
Secretariat of the procuring day of posting.
entity b. at the conspicuous
place reserved for
Implementing Rules and Regulations 6. Repeat the ocular the purpose in the
(IRR) of RA 9184, as amended on inspections (may be at premises of the
September 2, 2009: random) during the 7- procuring entity,
21.2.1. Except as otherwise day period to verify the
provided in Sections 21.2.2 and postings.
54.2 of this IRR and for the c. as certified by the
procurement of common-use head of the BAC
goods and supplies, the Request 7. Request for the Secretariat of the
for Expression of Interest shall be: certification of the head procuring entity?
a. of the BAC Secretariat
b.
c. Posted at any conspicuous place
reserved for the purpose in the
premises of the procuring entity
for 7 calendar days, as certified by
the head of the BAC Secretariat of
the procuring entity.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
and develop appropriate NOTE:
audit recommendations Also refer to the
OFFENSES AND
Implementing Rules and
PENALTIES
Regulations (IRR) of RA 9184, as
portion of this Audit
amended on September 2, 2009:
Guide.
Observers shall be invited at least
three (3) calendar days before
the date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
Also determine if
appropriate actions
were taken by the
auditee in regard to
instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this Audit
Guide.
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V. ISSUANCE OF ELIGIBILITY DOCUMENTS TO CONSULTANTS
The list of eligibility requirements/ documents must be made available from the first day of
advertising/ posting until the deadline for the eligibility check.
A. AUDIT OBJECTIVE:
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contract; taken by the auditee in
regard to instances of non-
b. validity of any payment to compliance.
be made on the basis of
the contract;
c. etc.
NOTE:
and develop appropriate
Also refer to the
audit recommendations
OFFENSES AND
Implementing Rules and PENALTIES portion of
Regulations (IRR) of RA 9184, as this Audit Guide.
amended on September 2, 2009:
Observers shall be invited at least
three (3) calendar days before
the date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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VI. ELIGIBILITY CHECKING & SHORT LISTING OF CONSULTANTS
The process of short listing determines the most qualified consultants from those eligible to
undertake the project.
A. AUDIT OBJECTIVES:
1. To verify if all consultants that submitted Eligibility Documents were included in the Eligibility
Checking;
2. To verify if submission and opening of eligibility envelopes were made within the time as
required;
5. To verify if the BAC notified the prospective bidders concerned of the results of the eligibility
checking and short listing as required.
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the Answer
extending equal opportunity to
enable private contracting
parties who are eligible and
qualified to participate in public
bidding.
3. To verify if the BAC 3. From the Minutes of Did the BAC open
opened the eligibility Eligibility Checking, compare the eligibility
envelopes before the dates the date of opening of envelopes:
eligibility envelopes with the
of the pre-bid conference
dates of the pre-bid a. before the date
and bid opening
conference and bid opening of the pre-bid
indicated in the Bidding conference?
Implementing Rules and Regulations Documents (Request for
(IRR) of RA 9184, as amended on Expression of Interest). b. before the date
September 2, 2009: of the bid
24.4.1. The eligibility envelopes opening?
of prospective bidders for
procurement of consulting services
shall be opened before the
dates of the pre-bid conference
and bid opening to determine
eligibility of prospective bidders
who shall then be allowed to
acquire or purchase the relevant
bidding documents from the
procuring entity.
4. To verify if the BAC: 4. From the Minutes of Did the BAC open
a. opened the eligibility Eligibility Checking, go over the eligibility
envelopes in public, and the list of those present if envelopes in
b. determined each they included prospective public?
bidders and BAC Observers.
prospective bidders
compliance with the 5. Compare the list of Are the contents of
documents required to be documents required to be the Checklist of
submitted for eligibility submitted for eligibility per Eligibility
Bidding Documents and Requirements of
Implementing Rules and Regulations those in the Checklist of Consulting Services
(IRR) of RA 9184, as amended on required documents used those that are
September 2, 2009: during the eligibility required for
30.1. For the purpose the BAC checking. eligibility per
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the Answer
shall check the submitted Bidding
documents of each bidder against Documents?
a checklist of required documents
to ascertain if they are all present 6. Validate the entries in Did the BAC
using a non-discretionary the Checklist with the determine each
pass/fail criterion as stated in eligibility documents of the prospective bidders
the Instructions to Bidders. If the prospective bidders (for compliance with
bidder submits the required the presence or absence). the documents
required documents, it shall be required to be
rated passed for that particular submitted for
requirement. eligibility?
24.4.2. Subject to the short listing 7. From the Minutes of Did the BAC declare
of consultants as provided in this Eligibility checking if those as eligible only
IRR, the determination of eligibility consultants declared eligible those consultants
of consultants shall be based on were those that passed all that passed all the
the evaluation of the eligibility the eligibility criteria. eligibility criteria?
documents prescribed above in
accordance with the procedures
provided in Section 30.1 of this
IRR.
Technical Documents-
iii) Statement of the prospective
bidder of all its ongoing and
completed 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, within the
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relevant period as provided
for in the Bidding Documents.
iv) Statement of the consultant
specifying its nationality and
confirming that those who will
actually perform the service are
registered professionals
authorized by the appropriate
regulatory body to practice
those professions and allied
professions, including their
respective curriculum vitae. [AS
AMENDED BY GPPB
RESOLUTION NO. 11-2009
DATED 30 NOVEMBER 2009]
Financial Documents-
v) The consultants audited
financial statements, showing,
among others, the consultants
total and current assets and
liabilities, stamped received by
the BIR or its duly accredited
and authorized institutions, for
the preceding calendar year
which should not be earlier than
two (2) years from the date of
bid submission.
b) Class B Documents
vi) Valid Joint Venture
Agreement (JVA), in case of a
joint venture is already in
existence. In the absence of a
JVA, duly notarized statements
from all the potential joint
venture partners stating that
they will enter into and abide by
the provisions of the JVA in the
instance that the bid is
successful, shall be included in
the bid.
5. To verify if the BAC 8. Based on the Minutes of Did the BAC issue
informed consultants Eligibility Screening and Notices of
subjected to eligibility copies of Notices of Ineligibility and
screening of the results Eligibility & Notices of Notices of
Ineligibility, check if: Eligibility:
thereof
a. all the consultants
subjected to Eligibility a. to all the
Implementing Rules and Regulations
Screening were notified consultants
(IRR) of RA 9184, as amended on
of the results, subjected to
September 2, 2009: b. the Notices were signed Eligibility
by members of the BAC Screening?
6.2. Once issued by the GPPB,
present,
the use of the Generic c. the reason for ineligibility b. that were signed
Procurement Manuals (GPMs), was stated in the Notice, by members of
Philippine Bidding Documents d. the Notices were duly the BAC
(PBDs), and other standard forms received by the present?
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shall be mandatory upon all prospective bidders.
Procuring Entities. However, c. that stated the
whenever necessary, to suit the reason(s) for
particular needs of the procuring ineligibility?
entity, modifications may be
made, particularly for major and d. were duly
specialized procurement, subject received by the
to the approval of the GPPB. prospective
bidders or
Generic Procurement Manual for authorized
Consulting Services Vol. 4, June representative?
2006 published by the GPPB:
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published by the GPPB the required
form is SF-CONS-30: Rating Sheet
for Short Listing
7. To verify if the BAC 10. From the Bidding Did the BAC subject
subjected to short listing Documents identify the to short listing only
only those whose contracts definition of contract that those consultants
is similar in nature and whose contracts, as
are similar in nature and
complexity. identified in the
complexity to the contract to eligibility
be bid based on the Request 11. From the relevant documents
for Expression of Interest report(s) of the Technical submitted for
Working Group with registration, are
Implementing Rules and Regulations supporting documents and similar in nature
(IRR) of RA 9184, as amended on duly reviewed by the BAC, and complexity to
September 2, 2009: Minutes of Meeting(s) of the the contract to be
BAC, look for information on bid, based on the
24.5.1. With respect to a
the evaluation (comparison) Request for
particular contract for consulting of similar contracts of Expression of
services to be bid, the concerned consultants subjected to Interest?
procuring entity shall only consider
short listing.
for short listing those consultants
whose contracts, as identified in
the eligibility documents submitted
for registration, are similar in
nature and complexity to the
contract to be bid, based on the
Request for Expression of Interest.
(Note/Observation :
The Request for Expression of
Interest does not have a space
for this information)
24.1.
a) Class A Documents
Legal Documents-
i)
ii)
Technical Documents-
iii) Statement of the prospective
bidder of all its ongoing and
completed 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, within the relevant period as
provided for in the Bidding
Documents.
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Commission on Audit
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
8. To verify if the BAC 12. From the relevant Did the BAC use
conducted the short listing report(s) of the Technical the criteria and
based on the criteria and Working Group with rating system
rating system for short supporting documents and specified in the
duly reviewed by the BAC, Request for
listing of consultants as
and Minutes of Meeting(s) of Expression of
specified in the Request for the BAC, look for Interest and other
Expression of Interest and information on the relevant Bidding
other relevant Bidding evaluation conducted Documents and
Documents, which pertaining to short listing. these considered
considered the following, the following,
among others (NOTE: The 13. Compare the criteria among others:
recommended percentages are and rating system used with
those specified in the a. Applicable
as indicated in the Generic
Request for Expression of experience of the
Procurement Manual of Interest and other relevant consultant and
Procedures for the Procurement Bidding Documents. members in case
of Consulting Services, June of joint ventures,
2006, published by the GPPB.): considering both
a. Applicable experience of the overall
the consultant and experiences of the
members in case of joint firm or, in the case
ventures, considering of new firms, the
individual
both the overall
experiences of the
experiences of the firm principal and key
or, in the case of new staff, including the
firms, the individual times when
experiences of the employed by other
principal and key staff, consultants =
including the times when 50%;
employed by other
consultants 50%; b. Qualification of
personnel who
b. Qualification of personnel
may be assigned
who may be assigned to to the job vis--vis
the job vis--vis extent extent and
and complexity of the complexity of the
undertaking 30%; and undertaking =
c. Current workload relative 30%; and
to capacity 20%.
c. Current workload
Implementing Rules and Regulations relative to capacity
(IRR) of RA 9184, as amended on = 20%.
September 2, 2009:
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24.5.3. The BAC shall specify in
the Request for Expression of
Interest the set of criteria and
rating system for short listing of
consultants to be used for the
particular contract to be bid which
shall consider the following,
among others:
(NOTE: The recommended
percentages are as indicated in
the Generic Procurement Manual
of Procedures for the Procurement
of Consulting Services, June 2006,
published by the GPPB.):
a. Applicable experience of the
consultant and members in case
of joint ventures, considering
both the overall experiences of
the firm or, in the case of new
firms, the individual experiences
of the principal and key staff,
including the times when
employed by other consultants
50%;
b. Qualification of personnel who
may be assigned to the job vis-
-vis extent and complexity of
the undertaking 30%; and
c. Current workload relative to
capacity 20%.
9. To verify if the BAC: 14. Compare the minimum Did the BAC adopt
a. included in the short list score required for short the minimum score
only those consultants who listing agreed upon during for short listing
the pre-procurement agreed upon during
passed the minimum score
conference (from the the Pre-
required in the short
Minutes of the Pre- Procurement
listing, and Procurement Conference) Conference?
b. the number of short listed with the one used by the
consultants was as BAC in the actual conduct of
determined in the pre- short listing (based on the
procurement conference, Rating Sheet for Short
and consisted of 3 to 7 Listing and the relevant
consultants with 5 as the Minutes of BAC Meetings).
preferable number; unless
15. Compare the ratings of Did the BAC short
the number of those who
the short listed consultants list only those
applied and were short with the minimum score. consultants that
listed is less than the passed the
required minimum score for
inclusion in the
Implementing Rules and Regulations short list?
(IRR) of RA 9184, as amended on
September 2, 2009:
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24.5.2. The number of short 16. Compare the number of Did the BAC adopt
listed consultants which shall be short listed consultants with the number of
determined in the pre- the number agreed upon short list agreed
procurement conference shall during the Pre-Bid upon during the
consist of 3 to 7 consultants with Conference. Pre-Procurement
5 as the preferable number. Conference (unless
the number of
24.5.2. Should less than the consultants who
required number apply for submitted eligibility
eligibility and short listing pass the documents and
eligibility check, or pass the were declared
minimum score required in the eligible and short
short listing, the BAC shall listed is less)?
consider the same.
10. To verify if the HOPE 17. Check for the HOPEs Did the HOPE
approved the short list of approval of the BACs approve the short
consultants based on the Resolution declaring the list of consultants
short listed consultants and recommended by
BACs recommendation
recommending the shortlist the BAC?
for approval.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
24.5.4. The BAC shall
recommend the short list of
consultants to the Head of the
Procuring Entity for
consideration and approval.
11. To verify if the BAC 18. Compare the names of Did the BAC notify
notified the short listed the short listed consultants the short listed
consultants of the results of as approved by the HOPE consultants of the
with those in the Notices results of the short
the short listing process
issued by the BAC, and duly listing process?
received by the consultants
Implementing Rules and Regulations
concerned.
(IRR) of RA 9184, as amended on
September 2, 2009:
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inform the short listed consultants
about the results of the short
listing process.
12. To verify if the procuring 19. Compute the number of Did the procuring
entity completed the process days from the opening of entity complete the
of eligibility check and short the eligibility envelopes to process of eligibility
listing in 20 calendar days the approval by the HOPE of check and short
the BAC Resolution listing in 20
recommending the short list calendar days?
Implementing Rules and Regulations of consultants and compare
(IRR) of RA 9184, as amended on with the 20-day period.
September 2, 2009:
24.5.4. The entire process of
eligibility check and short listing
shall not exceed twenty (20)
calendar days.
13. To verify if the BAC 20. From the Minutes of the Did the BAC choose
invited Observers: BAC meeting on the the Observers
a. representing the COA, the selection of the Observer considering:
project-related professional from the pool, check for
organization accredited or information on the BACs a. One
duly recognized by the evaluation in regard to: representing the
Professional Regulation the selection of the COA?
Commission or the Supreme organization from which
Court, and a non-government the Observer will be b. One
organization (NGO) from the invited; representing the
procuring entitys Pool of knowledge, experience or project-related
Observers; expertise in procurement professional
or in the subject matter organization
b. that have:
of the contract to be bid; accredited or
b.1. knowledge, experience no actual or potential duly recognized
or expertise in
conflict of interest in the by the
procurement or in the
contract to be bid; and Professional
subject matter of the
conformed with other Regulation
contract to be bid;
relevant criteria Commission or
b.2. no actual or potential determined by the BAC. the Supreme
conflict of interest in the Court?
contract to be bid; and
b.3. conformed with other c. One
relevant criteria representing a
determined by the BAC; non-government
c. at least 3 calendar days prior organization?
to the pre-bid conference
d. With knowledge,
Implementing Rules and Regulations experience or
(IRR) of RA 9184, as amended on expertise in
September 2, 2009: procurement or
Section 13. Observers in the subject
matter of the
13.1. To enhance the transparency
contract to be
of the process, the BAC shall, in all
bid?
stages of the
procurement process, invite, in
e. With no actual
addition to the representative of the
or potential
COA, at least two (2) observers, who
conflict of
shall not have the right to vote, to
interest in the
sit in its proceedings where:
contract to be
a) At least one (1) shall come from a
bid?
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
duly recognized private group in a
sector or discipline relevant to the f. Conformed with
procurement at hand, for example: other relevant
i) criteria
ii) determined by
iii) For consulting services, a the BAC?
project-related professional
organization accredited or duly
recognized by the Professional 21. From certified copies of Did the BAC invite
Regulation Commission or the the invitations to the the Observers at
Supreme Court, such as, but not Observers with evidence of least 3 days from
limited to: receipt, compare the date of the date of the pre-
(1) PICE; receipt with the 3-day bid conference?
(2) Philippine Institute of minimum requirement.
Certified Public Accountants
(PICPA); and
(3) Confederation of Filipino
Consulting Organizations; and
b) The other observer shall come
from a non-government
organization (NGO).
14. To verify if the Procuring 22. Based on the BACs Did the Procuring
Entity considered the Minutes on the Post Entity consider the
comments/observations of Qualification and the report comments/
the Observers of the Observers check observations of the
whether a deliberation was Observers?
made on the comments
Implementing Rules and Regulations
/observations of the
(IRR) of RA 9184, as amended on
observers.
September 2, 2009:
13.4. The observers shall have
the following responsibilities:
a) To prepare the report either
jointly or separately indicating
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their observations made on the
procurement activities conducted
by the BAC for submission to the
Head of the Procuring Entity,
copy furnished the BAC
Chairman. The report shall assess
the extent of the BACs
compliance with the provisions of
this IRR and areas of
improvement in the BACs
proceedings;
b) To submit their report to the
procuring entity and furnish a
copy to the GPPB and Office of
the Ombudsman/Resident
Ombudsman. If no report is
submitted by the observer,
then it is understood that the
bidding activity conducted by
the BAC followed the correct
procedure; and
c) To immediately inhibit and notify
in writing the procuring entity
concerned of any actual or
potential interest in the contract
to be bid.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Observers shall be invited at least
three (3) calendar days before
the date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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VII. ISSUANCE OF BIDDING DOCUMENTS
TO SHORT LISTED CONSULTANTS
The bidding documents must be made available from the determination of the short list until the
deadline for the submission and receipt of bids.
A. AUDIT OBJECTIVE:
To determine whether the prescribed procedures and timelines in the issuance of bidding
documents were followed
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the Bidding Documents upon
submission of their bids.
2. To verify if the BAC posted 2. Ahead of any Did the BAC post
the Bidding Documents at procurement, request the the Bidding
the website of the procuring BAC Secretariat for advance Documents at the:
information on the first day
entity and at the PhilGEPS
of any posting of Bidding e. PhilGEPS
website from the time that Documents. website starting
the Request for Expression on the first day
of Interest was advertised 3. On the first day of posting of
up to the deadline for the access the PhilGEPS website, advertisement
submission and receipt of the website of the procuring
bids entity concerned, if f. website of the
available. procuring entity
Implementing Rules and Regulations concerned, if
(IRR) of RA 9184, as amended on Print the page where the available,
September 2, 2009: notice was posted (to form starting on the
Section 17.5 The procuring part of the audit evidences). first day of
entity shall also post the Bidding advertisement
Documents at its website and at 4. Access the websites at
the PhilGEPS website from the random from the first day of
time that the Request for posting up to the deadline
Expression of Interest is for the submission and
advertised. Prospective Bidders receipt of bids to verify the
may download the Bidding postings.
Documents from any of the said
websites; Provided that, bidders
shall pay the fee for the Bidding
Documents upon submission of
their Bids.
3. To verify if all bidders 5. Compare the records of Did all the bidders
that secured Bidding the BAC Secretariat on who submitted bids
Documents paid to the issued bidding documents pay the correct
(with information on Official amount for the
authorized collecting officer
Receipt numbers) for the bidding documents
of the procuring entity
subject consulting services to the authorized
with copies of Official collecting officer of
Implementing Rules and Regulations Receipts (ORs) issued by the procuring
(IRR) of RA 9184, as amended on authorized collecting officers entity?
September 2, 2009: for the sale of bidding
17.4. Bidders may be asked to documents.
pay for the Bidding documents to
recover the cost of its preparation 6. After submission of bids,
and development. The BAC shall for bidders that downloaded
issue the Bidding Documents upon bidding documents, compare
payment of the corresponding cost the OR numbers indicated in
thereof to the collecting/ disbursing the records of the BAC
officer of the procuring entity Secretariat with copies of
concerned. the ORs or Report of
Collection of authorized
17.5. Prospective bidders collecting officers.
may download the Bidding
Documents from any of the said
websites; Provided that, bidders
shall pay the fee for the Bidding
Documents upon submission of their
bids.
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Commission on Audit
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT
1. To verify the effects of Analyze the instances of
instances of non-compliance non-compliance to establish Appropriate Audit Working Papers
on the: the effects and develop
appropriate audit
a. validity of the recommendations.
procurement activities and
outputs including the Also determine if
validity of the resulting appropriate actions were
contract; taken by the auditee in
regard to instances of non-
b. validity of any payment to compliance.
be made on the basis of
the contract;
c. etc.
NOTE:
and develop appropriate
Also refer to the
audit recommendations
OFFENSES AND
Implementing Rules and PENALTIES portion of
Regulations (IRR) of RA 9184, as this Audit Guide.
amended on September 2, 2009:
Observers shall be invited at least
three (3) calendar days before
the date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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VIII. PRE-BID CONFERENCE
(For procurement of consulting services costing P1 million or more)
The pre-bid conference is the initial forum where the Procuring Entitys representatives and the
prospective bidders discuss the different aspects of the procurement at hand.
A pre-bid conference must be held for contracts with ABCs of at least One Million Pesos (P 1
Million). For contracts with ABCs of less than P 1 million, pre-bid conferences may or may not be held
at the discretion of the BAC. The BAC may also decide to hold a pre-bid conference upon the written
request of a prospective bidder.
A. AUDIT OBJECTIVES:
1. To verify if the Pre-Bid Conference was conducted within the required time;
3. To verify if the participants, led by the BAC, performed the required tasks and attained the
objectives of the Conference.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
international participation will be
more advantageous to the GOP, a
longer period for the preparation
of bids is necessary, the pre-bid
conference shall be held at least
thirty (30) calendar days before
the deadline for the submission
and receipt of bids.
2. To verify if during the Pre- 2. From the Minutes of Pre- Did the participants
Bid Conference the Bid Conference look for during the Pre-Bid
participants, led by the BAC, information on the Conference led by the
discussed relevant presentation of the technical BAC, discuss relevant
and financial components of information and
information and confirmed the contract to be bid, the confirmed the
the technical and financial deliberation thereon, and technical and financial
components of the contract the conclusions reached as a components of the
to be bid. result of the deliberation; contract to be bid?
and analyze if they led to
Implementing Rules and Regulations the confirmation of the
(IRR) of RA 9184, as amended on
technical and financial
September 2, 2009: components of the contract
22.3. The pre-bid conference shall to be bid.
discuss, among other things, the
eligibility requirements and the
technical and financial
components of the contract to be
bid. Attendance of the bidders
shall not be mandatory. However,
at the option of the procuring
entity, only those who have
purchased the Bidding Documents
shall be allowed to participate in
the pre-bid conference and raise
or submit written queries or
clarifications. [AS AMENDED BY
GPPB RESOLUTION NO. 06-2009
DATED 30 SEPT 2009]
4. To verify if the BAC 4. From the Minutes of the Did the BAC choose
invited Observers: BAC meeting on the the Observers
a. representing the COA, the selection of the Observer considering:
from the pool, check for
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
project-related professional information on the BACs a. One representing
organization accredited or evaluation in regard to: the COA?
duly recognized by the the selection of the
Professional Regulation organization from which b. One representing
Commission or the Supreme the Observer will be the project-related
Court, and a non-government invited; professional
organization (NGO) from the knowledge, experience or organization
procuring entitys Pool of expertise in procurement accredited or duly
Observers; or in the subject matter recognized by the
b. that have: of the contract to be bid; Professional
b.1. knowledge, experience no actual or potential Regulation
or expertise in conflict of interest in the Commission or the
procurement or in the contract to be bid; and Supreme Court?
subject matter of the conformed with other
contract to be bid; relevant criteria c. One representing
b.2. no actual or potential determined by the BAC. a non-government
conflict of interest in the organization?
contract to be bid; and
b.3. conformed with other d. With knowledge,
experience or
relevant criteria
expertise in
determined by the BAC;
procurement or in
c. at least 3 calendar days prior
the subject matter
to the pre-bid conference
of the contract to
be bid?
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on e. With no actual or
September 2, 2009: potential conflict
Section 13. Observers of interest in the
13.1. To enhance the transparency contract to be bid?
of the process, the BAC shall, in all
stages of the f. Conformed with
procurement process, invite, in other relevant
addition to the representative of the criteria determined
COA, at least two (2) observers, who by the BAC?
shall not have the right to vote, to
sit in its proceedings where:
a) At least one (1) shall come from a 5. From certified copies of Did the BAC invite the
duly recognized private group in a the invitations to the Observers at least 3
sector or discipline relevant to the Observers with evidence of days from the date of
procurement at hand, for example: receipt, compare the date of the pre-bid
i) receipt with the 3-day conference?
ii) minimum requirement.
iii) For consulting services, a
project-related professional
organization accredited or duly
recognized by the Professional
Regulation Commission or the
Supreme Court, such as, but not
limited to:
(1) PICE;
(2) Philippine Institute of
Certified Public Accountants
(PICPA); and
(3) Confederation of Filipino
Consulting Organizations; and
b) The other observer shall come
from a non-government
organization (NGO).
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Commission on Audit
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
13.2. The observers shall come from
an organization duly registered with
the Securities and Exchange
Commission (SEC) or the
Cooperative Development Authority
(CDA), and should meet the
following criteria:
a) Knowledge, experience or
expertise in procurement or in the
subject matter of the contract to
be bid;
b) Absence of actual or potential
conflict of interest in the contract
to be bid; and
c) Any other relevant criteria that
may be determined by the BAC.
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c) To immediately inhibit and notify
in writing the procuring entity
concerned of any actual or
potential interest in the contract
to be bid.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 490
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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IX. SUPPLEMENTAL / BID BULLETINS
FOR THE PROCUREMENT OF CONSULTING SERVICES
Supplemental/Bid Bulletins may be issued upon the procuring entitys initiative for purposes of
clarifying or modifying any provision of the Bidding Documents at least seven (7) calendar days before
the deadline for the submission and receipt of bids. Any modification to the Bidding Documents shall be
identified as an amendment.
A. AUDIT OBJECTIVE:
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2. To verify if: 3. Obtain copy/ies of Were Requests for
a. requests for Requests for Clarification Clarification submitted
clarification(s) on any and check (date of at least ten (10)
part of the Bidding receipt stamped on the calendar days before
letters) whether these the deadline set for the
Documents or for an
were submitted at least submission and receipt
interpretation were in ten (10) calendar days of bids?
writing and submitted before the deadline set
to the BAC of the for the submission and
procuring entity at receipt of bids.
least ten (10) calendar
days before the
deadline set for the
submission and 4. Obtain duly certified Did the BAC Chairman
receipt of bids; copies of sign the Supplemental /
Supplemental/Bid Bid Bulletin?
b. the Supplemental/ Bid Bulletins and check for
Bulletin was duly the signature of the BAC
signed by the BAC Chairman.
Chairman;
c. the Supplemental/ Bid 5. From the records of the Did the BAC issue
Bulletin was issued at BAC (copies of Supplemental/ Bid
least seven (7) Supplemental/Bid Bulletins at least seven
calendar days before Bulletins with evidence of (7) calendar days
the deadline for the the date of issuance) before the deadline for
submission and count the number of the submission and
receipt of bid. days from said issuance receipt of bid?
and the deadline for the
Implementing Rules and Regulations submission and receipt of
(IRR) of RA 9184, as amended on bids; compare with the 7-
September 2, 2009: day requirement.
22.5.1 Requests for clarification(s)
on any part of the Bidding
Documents or for an interpretation
must be in writing and submitted
to the BAC of the procuring entity
at least ten (10) calendar days
before the deadline set for the
submission and receipt of bids. The
BAC shall respond to the said
request by issuing a
Supplemental/Bid Bulletin, duly
signed by the BAC Chairman, to be
made available to all those who
have properly secured the Bidding
Documents, at least seven (7)
calendar days before the deadline
for the submission and receipt of
bids.
3. To verify if: 6. From the records of the Did the BAC issue
BAC (copies of Supplemental/ Bid
a. Supplemental/Bid Bulletins Supplemental/Bid Bulletins at
initiated by the procuring Bulletins with evidence of least seven (7) calendar
entity for purposes of the date of issuance) days before the
clarifying or modifying any count the number of deadline for the
provision of the Bidding days from said issuance submission and receipt
Documents were issued at and the deadline for the of bid?
submission and receipt of
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
least seven (7) calendar bids; compare with the 7-
days before the deadline day requirement.
for the submission and
receipt of bids; 7. Go through the Did the BAC identify
contents of modifications to the
b. Modifications to the Supplemental/Bid Bidding Documents as
Bidding Documents were Bulletins and check if amendments?
amendments were
identified as amendments;
identified as such.
4. To verify if the BAC posted 9. In advance of the Did the BAC post
Supplemental/Bid Bulletins it posting, request the BAC Supplemental/Bid
issued on the PhilGEPS and Secretariat for print-outs Bulletins:
the website of the procuring (printed on the day of the
posting) of Supplemental/ a. on the PhilGEPS?
entity concerned, if available
Bid Bulletins as posted on
the PhilGEPS and at their and
Implementing Rules and Regulations website.
(IRR) of RA 9184, as amended on b. the website of the
September 2, 2009: 10. Obtain the printouts procuring entity
22.5.3 Any Supplemental/ Bid requested as evidence of concerned?
Bulletin issued by the BAC shall the posting.
also be posted on the PhilGEPS or
[OR was changed to AND per
Annex A of GPPB Resolution No.
06-2009 dated September 30,
2009] the website of the procuring
entity concerned, if available. It
shall be the responsibility of all
those who have properly secured
the Bidding Documents to inquire
and secure Supplemental/Bid
Bulletins that may be issued by the
BAC. However, bidders who have
submitted bids before the issuance
of the Supplemental/Bid Bulletin
must be informed and allowed to
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 494
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
modify or withdraw their bids in
accordance with Section 26.1 of
the IRR.
5. To verify if the BAC 11. From the BAC records Did the BAC inform and
informed and allowed to on submission of bids, allow to modify or
modify or withdraw their bids identify the bidders who withdraw their bids in
those bidders who have have submitted bids accordance with Section
before the issuance of 26.1 of the IRR the
submitted bids before the
Supplemental/Bid bidders who have
issuance of the Bulletins. submitted bids before
Supplemental/Bid Bulletin the issuance of
12. Go through copies of Supplemental/Bid
Implementing Rules and Regulations letters sent by the BAC to Bulletins?
(IRR) of RA 9184, as amended on these bidders and check if
September 2, 2009: they were informed and
22.5.3 However, bidders who allowed to modify or
have submitted bids before the withdraw their bids in
issuance of the Supplemental/ Bid accordance with Section
Bulletin must be informed and 26.1 of the IRR.
allowed to modify or withdraw their
bids in accordance with Section
26.1 of the IRR.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 495
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
2. To verify the causes of Analyze the instances of
instances of non-compliance non-compliances to Appropriate Audit Working Papers
and develop appropriate establish the cause(s) and
audit recommendations develop appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 496
X-A. SUBMISSION, RECEIPT, OPENING AND
EVALUATION OF BIDS FOR THE PROCUREMENT OF
CONSULTING SERVICES
(Using Quality-Based Evaluation Procedures)
Bids shall be submitted simultaneously in two (2) separate sealed envelopes and received by
the procuring entity on or before the deadline specified in the Request for Expression of Interest.
Opening of Bids shall be on the date, time and place specified in the Request for Expression of
Interest.
Quality Based Evaluation Procedure considers only the Technical Proposals in the ranking of
consultants based on the numerical ratings from the highest to the lowest. The purpose of bid
evaluation is to determine the Highest Rated Bid.
A. AUDIT OBJECTIVES:
1. To verify if bids were submitted and received at the required date, time, and place;
2. To verify if the BAC opened the bids at the required date, time, place and adopted the
prescribed procedures;
3. To verify if the BAC and the Procuring Entity as a whole performed the evaluation of bids
according to the prescribed procedures and timelines.
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Commission on Audit
Republic of the Philippines Page 497
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
representatives, the person named in the
b. using the forms specified sworn statement as the
in the Bidding Documents, duly authorized
c. in two (2) separate sealed representative.
envelopes submitted
simultaneously, 2. From the Minutes of Did the BAC determine
d. with the first envelope Bid Opening, look for that all bidders
containing the technical information where the submitted bids:
component and BAC mentioned opening
e. the second envelope the outer sealed envelope a. in two (2) separate
containing the financial of each bidder with two sealed envelopes
component of the bid (2) sealed envelopes submitted
inside marked ORIGINAL simultaneously?
Implementing Rules and Regulations TECHNICAL PROPOSAL
(IRR) of RA 9184, as amended on and ORIGINAL
September 2, 2009: FINANCIAL PROPOSAL b. with the first
25.1. Bidders shall submit their and also mentioned envelope containing
bids through their duly already opened the technical
authorized representative using envelopes. component?
the forms specified in the
Bidding Documents in two (2)
separate sealed bid envelopes, and
and which shall be submitted
simultaneously. The first shall
contain the technical component c. the second containing
of the bid and the second shall the financial
contain the financial component component of the
of the bid. bid?
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
2. To verify if the BAC 4. Go through the records Did the bidders
validated that in modifying a of the BAC pertaining to concerned submit their
bid: the submission of bids of bid modifications before
a. it was done before the each bidder and check if the deadline for the
the submission of submission and receipt?
deadline for the
modifications were done
submission and receipt of before the deadline for Was the original bid not
bids, the submission and retrieved?
b. the original bid was not receipt.
retrieved but another bid
equally sealed, properly
identified, was submitted
and linked to the original 5. Go through the Minutes Did the BAC validate if
bid and marked as a of the Bid Opening and the bidders concerned:
look for information on
modification, thereof,
the BACs activities a. did not retrieve the
and stamped received validating if: original bid?
by the BAC
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 499
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
a. date, receipt of bids and Request for Expression
b. time, and compare these with those of Interest?
c. place in the Invitation to Bid
specified in the Request for
Expression of Interest
Did the BAC receive
bids at the place
Implementing Rules and Regulations
specified in the
(IRR) of RA 9184, as amended on
Expression of Interest?
September 2, 2009:
2. To verify if the BAC 2. Count the number of Did the BAC observe the
observed the maximum of 75 days from the last day of maximum of 75-
calendar days from the last posting of the Request for calendar days from the
day of posting of the Expression of Interest up last day of posting of
to the deadline for the Request for
Request for Expression of submission and receipt of Expression of Interest
Interest up to the deadline bids and compare with the up to the deadline for
for submission and receipt of 75-calendar-day maximum submission and receipt
bids period. of bids?
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Republic of the Philippines Page 500
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
composition as designated by the Opening of Bids, check for
Head of the Procuring Entity shall the presence of the
constitute a quorum for the Chairman or Vice-
transaction of business, provided Chairman and if majority
that the presence of the Chairman or of the BAC members or
Vice-Chairman shall be required. representatives/alternates
attended the proceedings.
2. To verify if the BAC 3. Compare the date and Did the BAC open the
opened the bids immediately time of the opening of bids immediately after
after the deadline for the bids indicated in the the deadline for the
submission and receipt of Minutes of the Opening of submission and receipt
Bids with the deadline for of bids?
bids and at the: submission and receipt of
a. date, bids stated in the Bidding
b. time, and Documents.
c. place Did the BAC open the
specified in the Request for 4. Compare the date, time bids on the date
Expression of Interest and place of the opening specified in the Request
of bids indicated in the for Expression of
Implementing Rules and Regulations Minutes of the Opening of Interest?
(IRR) of RA 9184, as amended on Bids with those specified
September 2, 2009: in the Request for
29. Bid Opening Expression of Interest.
The BAC shall open the bids Did the BAC open the
immediately after the deadline for bids on the time
the submission and receipt of specified in the Request
bids. [GPPB Resolution No. 13- for Expression of
2009, dated 16 December 2009] Interest?
The time, date, and place of the
opening of bids shall be specified
in the Bidding Documents. The
bidders or their duly authorized Did the BAC open the
representatives may attend the bids at the place
opening of bids. The BAC shall specified in the Request
adopt a procedure for ensuring for Expression of
the integrity, security, and Interest?
confidentiality of all submitted
bids. The minutes of the bid
opening shall be made available
to the public upon written
request and payment of a
specified fee to recover cost of
materials.
3. To verify if the BAC/BAC 5. From the Minutes of Bid Did the BAC read out
Secretariat read out and Opening, check for and record during bid
recorded during bid opening information on the BACs opening letters of
reading out and recording withdrawal of bids?
letters of withdrawal and
of withdrawn bids during
returned to the bidder the the bid opening; checking
envelope containing the of the date of submission
corresponding withdrawn of the withdrawal letter; If the withdrawal of bid
bid unopened, either to the and returning the was made before the
bidders representative if he withdrawn bid unopened. deadline for submission
is present or by registered and receipt of bids,
mail Also check for evidence of return the bids
the return of the unopened to
withdrawn bids from representatives of the
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 501
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Philippine Bidding Documents for the acknowledged registered bidders concerned
Procurement of Consulting Services, mails. present during the bid
3rd edition (October 2009) approved opening?
per GPPB Resolution No. 05-2009
dated 30 September 2009:
20. Modification and Withdrawal
of Bids Did the BAC eturn
20.1. withdrawn bids
20.2. A Consultant may, unopened by registered
through a letter of mail if the withdrawal of
withdrawal, withdraw its bid was made before
bid,after it has been the deadline for
submitted, for valid and submission and receipt
justifiable reason; provided of bids?
that the letter of withdrawal is
received by the Procuring
Entity prior to the deadline
prescribed for submission and 6. From the Minutes of the Did the BAC forfeit the
receipt of bids. Bid Opening, check for bid security and
20.3. Bids requested to be information on recommend the
withdrawn in accordance with withdrawals of bids made imposition of sanctions
ITB Clause 20.1, shall be after the deadline for on bidders who
returned unopened to the submission and receipt of withdrew their bids
Consultants. A Consultant may bids up to the expiration during the interval
also express its intention not to of the period of bid between the deadline
participate in the bidding validity specified by the for submission of bids
through a letter which should bidder in the financial bid and the expiration of
reach and be stamped by the form; and for information the period of bid validity
BAC before the deadline for on forfeiture of bid specified by the Bidder
submission and receipt of bids. security and imposition of on the Financial Bid
A Consultant that withdraws its sanctions on these Form?
bid shall not be permitted to bidders.
submit another bid, directly or
indirectly, for the same
contract.
20.4. No bid may be modified
after the deadline for
submission of bids. No bid
may be withdrawn in the
interval between the deadline
for submission of bids and the
expiration of the period of bid
validity specified by the
Consultant on the Financial Bid
Form. Withdrawal of a bid
during this interval shall result
in the forfeiture of the
Consultants bid security,
pursuant to ITB Clause 15.5,
and the imposition of
administrative, civil, and
criminal sanctions as
prescribed by RA 9184 and its
IRR.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 502
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
4. To verify if the BAC 7. From the Attendance Did the BAC open the
opened the first bid Record/Minutes of the first bid envelopes of
envelopes of the bidders in Opening of Bids check if the bidders in public?
public the participants included
bidders and observers.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
30.1. The BAC shall open the first
bid envelopes of prospective
bidders in public to determine
each bidders compliance with the
documents required to be
submitted for eligibility and for
the technical requirements, as
prescribed in this IRR. For this
purpose, the BAC shall check the
submitted documents of each
bidder against a checklist of
required documents to ascertain
if they are all present, using a
nondiscretionary pass/fail
criterion, as stated in the
Instructions to Bidders. If a
bidder submits the required
document, it shall be rated
passed for that particular
requirement. In this regard, bids
that fail to include any
requirement or are incomplete or
patently insufficient shall be
considered as failed. Otherwise,
the BAC shall rate the said first
bid envelope as passed
5. To verify if the BAC 8. From the Minutes of Did the BAC open first
opened first the technical the Bid Opening, look for the technical
envelopes and ascertained information evidencing envelopes?
that the BAC opened first
compliance of each bidder
each bidders technical
with the documents required
envelope.
to be submitted in the first
envelope by checking the
submitted documents of
each bidder against a 9. Compare the list of Are the contents of the
checklist of required documents in the Checklist for Technical
documents to ascertain if Checklist with the list of Envelope of Consulting
they are all present, using a documents required to be Services accomplished
nondiscretionary pass/fail submitted per the Bidding by the BAC those that
criterion, as stated in the Documents. are required to be
submitted in the
Instructions to Bidders
technical envelope per
Bidding Documents?
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
September 2, 2009: 10. Determine if the Did the BAC ascertain
30.1. The BAC shall open the first BACs entries in the the presence of the
bid envelopes of prospective Checklist are complete. following documents in
bidders in public to determine each the technical envelope
bidders compliance with the of each bidder:
documents required to be
submitted for eligibility and for the a. The bid security in
technical requirements, as the prescribed form,
prescribed in this IRR. For this amount and validity
purpose, the BAC shall check the period?
submitted documents of each
bidder against a checklist of b. Organizational chart
required documents to ascertain if for the contract to be
they are all present, using a bid?
nondiscretionary pass/fail
criterion, as stated in the
Instructions to Bidders. If a bidder c. List of completed and
submits the required document, it on-going projects?
shall be rated passed for that
particular requirement. In this
regard, bids that fail to include any d. Approach, work plan,
requirement or are incomplete or and schedule?
patently insufficient shall be
considered as failed. Otherwise,
the BAC shall rate the said first bid e. List of key personnel
envelope as passed. to be assigned to the
contract to be bid, with
25.2. The first envelope shall their complete
contain the following technical qualification and
information/ documents, at the experience data?
least:
c. For the procurement of
consulting services f. Sworn statement by
i) The bid security in the the prospective bidder
prescribed form, amount and or its duly authorized
validity period; representative in the
ii) Organizational chart for the form prescribed by the
contract to be bid; GPPB as to the
iii) List of completed and on- following:
going projects;
iv) Approach, work plan, and f.1. It is not
schedule: Provided, however, blacklisted or barred
That for architectural design, from bidding by the
submission of architectural GOP or any of its
plans and designs shall not be agencies, offices,
required during the consultants corporations, or LGUs,
selection process; including foreign
v) List of key personnel to be government/ foreign or
assigned to the contract to be international financing
bid, with their complete institution whose
qualification and experience blacklisting rules have
data; and been recognized by the
vi) Sworn statement by the GPPB?
prospective bidder or its duly
authorized representative in the
form prescribed by the GPPB as f.2. Each of the
to the following: documents submitted
(1) It is not blacklisted or in satisfaction of the
barred from bidding by the bidding requirements is
an authentic copy of
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
GOP or any of its agencies, the original, complete,
offices, corporations, or LGUs, and all statements and
including foreign information provided
government/foreign or therein are true and
international financing correct?
institution whose blacklisting
rules have been recognized by
the GPPB; f.3. It is authorizing
(2) Each of the documents the Head of the
submitted in satisfaction of the Procuring Entity or his
bidding requirements is an duly authorized
authentic copy of the original, representative/s to
complete, and all statements verify all the
and information provided documents submitted?
therein are true and correct;
(3) It is authorizing the Head of
the Procuring Entity or his duly f.4. The signatory is
authorized representative/s to the duly authorized
verify all the documents representative of the
submitted; prospective bidder, and
(4) The signatory is the duly granted full power and
authorized representative of authority to do,
the prospective bidder, and execute and perform
granted full power and any and all acts
authority to do, execute and necessary and/or to
perform any and all acts represent the
necessary and/or to represent prospective bidder in
the prospective bidder in the the bidding, with the
bidding, with the duly notarized duly notarized
Secretarys Certificate attesting Secretarys Certificate
to such fact, if the prospective attesting to such fact,
bidder is a corporation, if the prospective
partnership, cooperative, or bidder is a corporation,
joint venture; partnership,
(5) It complies with the cooperative, or joint
disclosure provision under venture?
Section 47 of the Act in relation
to other provisions of R.A.
3019; f.5. It complies with
(6) It complies with the the disclosure provision
responsibilities of a prospective under Section 47 of the
or eligible bidder provided in Act in relation to other
the PBDs; and provisions of R.A.
(7) It complies with existing labor 3019?
laws and standards, in the case
of procurement of services.
f.6. It complies with
33.2.1 The BAC shall conduct a the responsibilities of a
detailed evaluation of bids using prospective or eligible
either of the following evaluation bidder provided in the
procedures as specified in the PBDs?
Bidding Documents:
a) Quality-Based Evaluation
Procedure f.7. It complies with
i) existing labor laws and
ii) After receipt of bids, the standards?
technical proposals shall first be
opened and evaluated, in
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
accordance with Section 33.2.2. of 11. From the Minutes of Did the BAC rate as
this IRR. The BAC shall rank the the Bid Opening look for failed in the first
consultants in descending order information indicating that envelope bids that
based on the numerical ratings of the BAC declared as failed to include any
their technical proposals and failed in the first requirement or are
identify the Highest Rated Bid: envelope bids that failed incomplete or patently
Provided, however, that the to include any insufficient?
Highest Rated Bid shall pass the requirement or are
minimum score indicated in the incomplete or patently
Bidding Documents. insufficient; otherwise,
that the BAC rated the
first bid envelope as
Per SAMPLE FORMS FOR passed. Did the BAC rate as
PROCUREMENT OF CONSULTING passed the first
SERVICES published by the GPPB: envelope that passed all
SF-CONS-41 revised 9 May 04 the requirements?
(Checklist for Technical Envelope
Requirements)
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
September 30, 2009:
Instructions to Bidders No. 24.
Opening and Evaluation of
Technical Proposals.
24.4. Technical proposals shall
not be considered for evaluation
in any of the following cases:
a.
b. Failure to submit any of the
technical requirements
provided under this ITB and
TOR,
c.
2. To verify if the BAC, 2. From the TWG reports Did the BAC, through its
through its Secretariat, put duly reviewed by the BAC, Secretariat, put in
in writing requests for look for information used writing requests for
in the bid evaluation clarification of bids from
clarification of bids from the
which were requested the bidders concerned?
bidders concerned from the bidders
concerned. Look for the
Implementing Rules and Regulations letter request for said Were the clarifications
(IRR) of RA 9184, as amended on information duly received made by the bidders
September 2, 2009: by the bidder and the concerned in writing?
33.1. From submission and receipt response of the bidder
of bids until the approval by the concerned.
Head of the Procuring Entity of
the ranking of short listed bidders,
those that have submitted their
bids are prohibited from making
any communication with any BAC
member, including its staff and
personnel, as well as its
Secretariat and TWG, regarding
matters connected to their bids.
However, the BAC, through its
Secretariat, may ask in writing the
bidder for a clarification of its bid.
All responses to requests for
clarification shall be in writing.
3. To verify if the BAC 3. From the relevant Were the criteria and
evaluated the technical report(s) of the Technical numerical weights used
proposals of consultants Working Group (e.g. by the BAC those
based on the criteria and Rating Sheet for Technical specified in the Bidding
Proposal with supporting Documents:
numerical weights for bid
information and detailed
evaluation as specified in the evaluation), duly reviewed a. Quality of personnel
Bidding Documents by the BAC; and Minutes to be assigned to the
of Meeting(s) of the BAC, project?
Implementing Rules and Regulations look for information on
(IRR) of RA 9184, as amended on the evaluation conducted b. Experience and
September 2, 2009: on the technical capability of the
proposals. consultant?
33.2.2 The technical proposals of
consultants shall be evaluated c. Plan of approach and
based on the following criteria and methodology?
using the corresponding numerical
weights indicated in the bidding
documents:
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Commission on Audit
Republic of the Philippines Page 507
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
a) Quality of personnel to be
assigned to the project which
covers suitability of key staff to
perform the duties of the 4. Compare the criteria Did the BAC use the
particular assignments and and numerical weights criteria and numerical
general qualifications and used by the TWG/BAC in weights for each
competence including education their evaluation (per TWG consultant?
and training of the key staff; reports and supporting
documents) with those
b) Experience and capability of the specified in the Bidding
consultant which include records Documents.
of previous engagement and
quality of performance in similar
and in other projects; relationship
with previous and current clients;
and, overall work commitments,
geographical distribution of
current/ impending projects and
attention to be given by the
consultant. The experience of the
consultant to the project shall
consider both the overall
experiences of the firm and the
individual experiences of the
principal and key staff including
the times when employed by other
consultants; and
c) Plan of approach and
methodology with emphasis on
the clarity, feasibility,
innovativeness and
comprehensiveness of the plan
approach, and the quality of
interpretation of project problems,
risks, and suggested solutions.
4. For complex or unique 5. From the records of the For complex or unique
undertakings, to verify if the oral presentation, count undertakings, did the
BAC required bidders the number of days from BAC require bidders
said presentation to the concerned to make an
concerned to make an oral
deadline for submission of oral presentation within
presentation within 15
technical proposals and 15 calendar days after
calendar days after the compare with the 15-day the deadline for
deadline for submission of maximum. submission of technical
technical proposals proposals?
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Commission on Audit
Republic of the Philippines Page 508
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Project Manager or head, in case
of firms, within fifteen (15)
calendar days after the deadline
for submission of technical
proposals.
5. To verify if the BAC 6. From the Rating Sheets To verify if the BAC
excluded the highest and and the Ranking List, excluded the highest
lowest scores for each perform re-computations and lowest scores for
to check if the average each consultant for
consultant for each criterion
score for each consultant each criterion in
in determining the average for each criterion was determining the
scores of the consultants, computed to exclude the average scores of the
(except when the evaluation highest and lowest scores consultants, (except
was conducted in a collegial for each consultant for when the evaluation
manner) each criterion. was conducted in a
collegial manner)?
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
33.2.3. In order to eliminate bias
in evaluating the technical
proposals, it is recommended that
the highest and lowest scores for
each consultant for each criterion
shall not be considered in
determining the average scores of
the consultants, except when the
evaluation is conducted in a
collegial manner.
6. To verify if the BAC 7. Go over the names of Did the BAC identify the
identified the proposal with consultant and their Highest Rated Bid
the highest score as the numerical ratings (HRB) by:
indicated in the Report on
Highest Rated Bid (HRB) by
the ranking of consultants a. ranking the
ranking the consultants in
and compare with those consultants in
descending order based on indicated in the Rating descending order
the numerical ratings, with Sheet for Technical based on the
consideration of the Proposal. numerical ratings
minimum score indicated in and declaring the
the bidding documents 8. Compare the numerical consultant with the
ratings of the consultants highest score as the
Implementing Rules and Regulations with the minimum score HRB? and
(IRR) of RA 9184, as amended on indicated in the bidding
September 2, 2009: documents. b. with consideration of
33.2.1 The BAC shall conduct a the minimum score
detailed evaluation of bids using indicated in the
either of the following evaluation bidding documents?
procedures as specified in the
Bidding Documents:
a) Quality-Based Evaluation
Procedure
i)
ii) The BAC shall rank the
consultants in descending order
based on the numerical ratings of
their technical proposals and
identify the Highest Rated Bid:
Provided, however, that the
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Highest Rated Bid shall pass the
minimum score indicated in the
Bidding Documents.
8. To verify if the Highest 10. Count the number of Was the HRB
Rated Bid (HRB) days from the date of recommended by the
recommended by the BAC receipt by the HOPE of the BAC approved by the
letter of the BAC HOPE within two (2)
was approved/disapproved
submitting the BAC calendar days after
by the Head of the Procuring
recommendation to the receipt of the results of
Entity (HOPE) within two (2) date of approval by the evaluation?
calendar days after receipt of HOPE of the BAC
the results of evaluation Resolution declaring and
recommending the
Implementing Rules and Regulations consultant with the HRB
(IRR) of RA 9184, as amended on and compare with the 2-
September 2, 2009: day maximum.
33.2.1
a)
i)
ii)
iii) The Head of the Procuring Entity
shall approve or disapprove the
recommendations of the BAC
within two (2) calendar days after
receipt of the results of the
evaluation from the BAC.
9. To verify if the BAC: 11. Compare the names of Did the BAC:
a. furnished all participating the participating a. furnished all
short listed consultants of consultants (from the participating short
Minutes of the Opening of listed consultants of
the results of evaluation
Bids) with those furnished the results of
(ranking and total scores by the BAC with the evaluation (ranking
only) after the approval by results of the bid and total scores only)
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the HOPE of the ranking, evaluation (based on the after the approval by
and copies of the letters duly the HOPE of the
b. posted the ranking and received by them). ranking?
total scores in the
and
PhilGEPS and the Procuring
b. posted the ranking
Entitys websites for a 12. Using print-outs of and total scores in
period of not less than 7 the web page (PhilGEPS the PhilGEPS website
calendar days and the Procuring Entitys for a period of not
websites) with the posted less than 7 calendar
Implementing Rules and Regulations results of evaluation, days?
(IRR) of RA 9184, as amended on count the number of days
September 2, 2009: from the first to the last and
33.2.4. All participating short listed day of said posting and c. posted the ranking
consultants shall be furnished the compare with the 7-day and total scores in
results (ranking and total scores requirement. the Procuring Entitys
only) of the evaluation after the website for a period
approval by the Head of the of not less than 7
Procuring Entity of the ranking. calendar days?
Said results shall also be posted in
the PhilGEPS and the website of
the procuring entity, whenever
available, for a period of not less
than seven (7) calendar days.
OPENING OF THE FINANCIAL PROPOSAL OF THE CONSULTANT WITH THE HIGHEST RATED BID
(HRB) AND NEGOTIATIONS
1. To verify if the BAC, within 1. From the notice to the Did the BAC notify the
three (3) calendar days after consultant with the HRB, consultant with the HRB
approval by the HOPE of the look for information: within 3 calendar days
on the date of receipt after approval by the
HRB:
of the notice by the HOPE?
a. notified and invited the consultant; and
consultant with the that the BAC:
Highest Rated Bid (HRB) a. invited the
for the opening of consultant for the Did the notice indicate
financial proposal for the opening of the financial that the BAC invited the
purpose of conducting proposal for the consultant with the HRB
negotiations with the purpose of conducting for the opening of the
said consultant; and negotiations, financial proposal for
b. informed the the purpose of
b. informed the consultant of
consultant of the conducting
the issues in the issues in the technical negotiations?
technical proposal for proposal which the
clarification during the BAC may wish to clarify
negotiation during the negotiation.
Did the notice indicate
Implementing Rules and Regulations that the BAC informed
(IRR) of RA 9184, as amended on the consultant of the
September 2, 2009: issues in the technical
33.2.1. The BAC shall conduct a proposal which the BAC
detailed evaluation of bids using may wish to clarify
either of the following evaluation during the negotiation?
procedures as specified in the
Bidding Documents:
a) Quality-Based Evaluation
Procedure
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iv) After approval by the Head of
the Procuring Entity of the
Highest Rated Bid, its financial
proposal shall then be opened.
The BAC shall, within three (3)
calendar days, notify and invite
the consultant with the Highest
Rated Bid for the opening of
financial proposal for the
purpose of conducting
negotiations with the said
consultant. In the letter of
notification, the BAC shall
inform the consultant of the
issues in the technical proposal
the BAC may wish to clarify
during negotiations.
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the Answer
(IRR) of RA 9184, as amended on schedule of activities
September 2, 2009: (manning schedule)?
33.2.5 Negotiations shall cover
the following: d. Discussion on the
a) Discussion and clarification of services, facilities and
the TOR and Scope of Services; data, if any, to be
b) Discussion and finalization of provided by procuring
the methodology and work entity?
program proposed by the
consultant;
c) Consideration of e. Discussion on the
appropriateness of qualifications financial proposal
and pertinent compensation, submitted by the
number of man-months and the consultant?
personnel to be assigned to the
job, taking note of over-
qualified personnel, to be f. Provisions of the
commensurate with the contract?
compensation of personnel with
the appropriate qualifications,
number of man-months and
schedule of activities (manning
schedule);
d) Discussion on the services,
facilities and data, if any, to be
provided by procuring entity;
e) Discussion on the financial
proposal submitted by the
consultant; and
f) Provisions of the contract.
3. To verify if the BAC used 3. From the Minutes of Did the BAC use the
the amount indicated in the the negotiations, look for amount indicated in the
financial envelope of the information on the financial envelope of
discussion where the the consultant with the
consultant with the HRB as
amount indicated in the HRB as the basis for
the basis for negotiations,
financial envelope was negotiations, with the
with the ABC as stated in the used as basis for the ABC as stated in the
Bidding Documents as the negotiations and with the Bidding Documents as
ceiling ABC as stated in the the ceiling?
Bidding Documents as the
33.2.1 ceiling.
a)
i)
v) Negotiations shall be in
4. From the TWG report Did the BAC disqualify
accordance with Section 33.2.5 of
with supporting the consultant with a
this IRR, provided that the amount
documents duly reviewed calculated bid price
indicated in the financial envelope
by the BAC and the exceeding the ABC?
shall be made as basis for
Minutes of the
negotiations and the total contract
negotiations, look for
amount shall not exceed the amount
information on the results
indicated in the envelope and the
of calculation and
approved budget for the contract as
correction of bid prices
stated in the Bidding Documents.
and the decision made
33.2.6. Total calculated bid prices, when such evaluation
as evaluated and corrected for minor resulted in the total
arithmetical corrections, such as calculated bid price
computational errors, which exceed exceeding the ABC.
the ABC shall not be considered
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4. To verify if the BAC 5. From the minutes of Did the BAC complete
completed negotiations with the negotiations with the negotiations with
any one consultant within 10 individual consultants, any one consultant
calendar days count the number of days within 10 calendar
from the start to the end days?
Implementing Rules and Regulations of the negotiations and
(IRR) of RA 9184, as amended on compare with the 10-day
September 2, 2009: period.
33.2.5. Negotiations
a)
.
f)
Except for meritorious reasons,
negotiations with anyone
consultant shall be completed
within ten (10) calendar days.
5. To verify if the BAC 6. From the BAC Did the BAC submit the
submitted their Resolution Resolution check for the BAC Resolution on the
on the results of the approval of the HOPE. results of the
negotiation and their
negotiation and their
recommendations to the
recommendations to the
HOPE for approval?
HOPE for approval and if the
HOPE approved the said
results and
recommendations Did the HOPE approve
the results of the BAC
Implementing Rules and Regulations negotiations and their
(IRR) of RA 9184, as amended on recommendations?
September 2, 2009:
33.2.1.
a)
i)
iii) The Head of the Procuring
Entity shall approve or
disapprove the
recommendations of the BAC
6. To verify if the BAC 7. Count the number of Did the BAC complete
completed the entire days from the deadline for the bid evaluation
evaluation process including receipt of proposals to process within twenty
submission of the results the date of submission of one (21) calendar days
the results of bid after the deadline for
thereof to the HOPE for
evaluation to the HOPE receipt of proposals?
approval within twenty one and compare with the 21-
(21) calendar days after the day period.
deadline for receipt of
proposals
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
33.4. The entire evaluation
process, including submission of
the results thereof to the Head
of the Procuring Entity for
approval, shall be completed in
not more than twenty one (21)
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calendar days after the deadline
for receipt of proposals.
IN CASE OF FAILURE OF THE NEGOTIATION WITH THE CONSULTANT WITH THE HIGHEST RATED
BID (HRB)
1. To verify if the BAC 1. From the minutes of Did the BAC terminate
terminated negotiations with the negotiation, look for negotiations with the
the consultant with the HRB information on the official consultant with the HRB
when no agreement on all termination of the when no agreement on
negotiations as a result of all items discussed was
items discussed was possible non-agreement in all of possible?
the items discussed with
Implementing Rules and Regulations the consultant with the
(IRR) of RA 9184, as amended on HRB.
September 2, 2009:
6.2. Once issued by the GPPB,
the use of the Generic
Procurement Manuals (GPMs),
Philippine Bidding Documents
(PBDs), and other standard forms
shall be mandatory upon all
Procuring Entities. However,
whenever necessary, to suit the
particular needs of the procuring
entity, modifications may be
made, particularly for major and
specialized procurement, subject
to the approval of the GPPB.
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process until the the HRB?
Implementing Rules and Regulations negotiation is
(IRR) of RA 9184, as amended on completed.
September 2, 2009:
6.2. Once issued by the GPPB, The related audit
the use of the Generic
activities are
Procurement Manuals (GPMs),
Philippine Bidding Documents likewise to be
(PBDs), and other standard forms repeated.
shall be mandatory upon all
Procuring Entities. However,
whenever necessary, to suit the
particular needs of the procuring
entity, modifications may be
made, particularly for major and
specialized procurement, subject
to the approval of the GPPB.
INVOLVEMENT OF THE BAC OBSERVERS IN THE OPENING OF THE FINANCIAL PROPOSAL(S) AND
NEGOTIATIONS WITH THE CONSULTANTS WITH THE HRB AND NEXT-IN-RANK
1. To verify if the BAC 1. From the Minutes of the Did the BAC choose the
invited Observers: BAC meeting on the Observers considering:
a. representing the COA, the selection of the Observer
project-related professional from the pool, check for
organization accredited or information on the BACs a. One representing the
duly recognized by the evaluation in regard to: COA?
Professional Regulation the selection of the
Commission or the Supreme organization from
Court, and a non-government which the Observer will b. One representing the
organization (NGO) from the be invited; project-related
procuring entitys Pool of knowledge, experience professional
Observers; or expertise in organization
procurement or in the accredited or duly
b. that have:
subject matter of the recognized by the
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b.1. knowledge, experience contract to be bid; Professional
or expertise in no actual or potential Regulation
procurement or in the conflict of interest in Commission or the
subject matter of the the contract to be bid; Supreme Court?
contract to be bid; and
b.2. no actual or potential conformed with other
conflict of interest in the relevant criteria c. One representing a
contract to be bid; and determined by the non-government
b.3. conformed with other BAC. organization?
relevant criteria
determined by the BAC;
d. With knowledge,
c. at least 3 calendar days prior
experience or
to the opening of financial
expertise in
proposal
procurement or in
the subject matter of
Implementing Rules and Regulations the contract to be
(IRR) of RA 9184, as amended on
bid?
September 2, 2009:
Section 13. Observers
13.1. To enhance the e. With no actual or
transparency of the process, the potential conflict of
BAC shall, in all stages of the interest in the
procurement process, invite, in contract to be bid?
addition to the representative of
the COA, at least two (2)
observers, who shall not have the f. Conformed with
right to vote, to sit in its other relevant
proceedings where: criteria determined
a) At least one (1) shall come by the BAC?
from a duly recognized private
group in a sector or discipline 2. From certified copies of Did the BAC invite the
relevant to the procurement at the invitations to the Observers at least 3
hand, for example: Observers with evidence days from the date of
i) of receipt, compare the the opening of the
ii) date of receipt with the 3- financial proposal and
iii) For consulting services, a day minimum requiremen negotiations?
project-related professional
organization accredited or
duly recognized by the
Professional Regulation
Commission or the
Supreme Court, such as,
but not limited to:
(1) PICE;
(2) Philippine Institute of
Certified Public
Accountants (PICPA);
and
(3) Confederation of Filipino
Consulting Organizations;
and
b) The other observer shall come
from a non-government
organization (NGO).
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Cooperative Development
Authority (CDA), and should meet
the following criteria:
a) Knowledge, experience or
expertise in procurement or in the
subject matter of the contract to
be bid;
b) Absence of actual or potential
conflict of interest in the contract
to be bid; and
c) Any other relevant criteria that
may be determined by the BAC.
2. To verify if the Procuring 3. Based on the BACs Did the Procuring Entity
Entity considered the Minutes on the consider the comments/
comments/observations of Negotiations and the observations of the
report of the Observers Observers?
the Observers
check whether a
Implementing Rules and Regulations deliberation was made on
(IRR) of RA 9184, as amended on the comments
September 2, 2009: /observations of the
13.4. The observers shall have observers.
the following responsibilities:
a) To prepare the report either
jointly or separately indicating
their observations made on the
procurement activities conducted
by the BAC for submission to the
Head of the Procuring Entity,
copy furnished the BAC
Chairman. The report shall assess
the extent of the BACs
compliance with the provisions of
this IRR and areas of
improvement in the BACs
proceedings;
b) To submit their report to the
+procuring entity and furnish a
copy to the GPPB and Office of
the Ombudsman/Resident
Ombudsman. If no report is
submitted by the observer,
then it is understood that the
bidding activity conducted by
the BAC followed the correct
procedure; and
c) To immediately inhibit and notify
in writing the procuring entity
concerned of any actual or
potential interest in the contract
to be bid.
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Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
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3. To communicate the Prepare the appropriate
results of the audit with the audit/ validation document Audit Observation Memorandum (AOM), if applicable
auditees Management reflecting the results of
the audit/validation and
COA Circular No. 2009-006 dated transmit to Management
September 15, 2009 re-
Prescribing the Use of the Rules
and Regulations on Settlement of
Accounts
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X-B. SUBMISSION, RECEIPT, OPENING AND
EVALUATION OF BIDS FOR THE PROCUREMENT OF
CONSULTING SERVICES
(Using Quality-Cost Based Evaluation Procedure)
Bids shall be submitted simultaneously in two (2) separate sealed envelopes and received by
the procuring entity on or before the deadline specified in the Request for Expression of Interest.
Opening of Bids shall be on the date, time and place specified in the Request for Expression of
Interest. Quality Based Evaluation Procedure considers only the Technical Proposals in the ranking of
consultants based on the numerical ratings from the highest to the lowest. The purpose of bid
evaluation is to determine the Highest Rated Bid.
A. AUDIT OBJECTIVES:
1. To verify if bids were submitted and received at the required date, time, and place;
2. To verify if the BAC opened the bids at the required date, time, place and adopted the
prescribed procedures;
3. To verify if the BAC and the Procuring Entity as a whole performed the evaluation of bids
according to the prescribed procedures and timelines.
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25. Invitation letter for negotiation with the HRB/SRB duly received by the consultant
concerned;
26. Minutes of meetings on the negotiations with the HRB/SRB;
27. TWG report with supporting documents, as reviewed by the BAC, on the evaluation of the
information pertaining to negotiations;
28. BAC Resolution, duly approved by the HOPE, on the results of the negotiations with the
HRB and recommending the conduct of post-qualification evaluation.
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BID.
17.2.
17.5. If bids are not sealed and
marked as required, the Procuring Entity
will assume no responsibility for the
misplacement or premature opening of
the bid.
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RECEIPT OF BIDS FOR THE PROCUREMENT OF CONSULTING SERVICES
1. To verify if the bids were 1. Check the receiving Were the bids received
received by the BAC on the: logbook of the BAC on by the BAC on the date
a. date, the date, time, and and time specified in
place of receipt of bids the Invitation to Bid?
b. time, and
and compare these
c. place with those in the Were the bids received
specified in the Invitation to Bid Invitation to Bid by the BAC at the place
specified in the
Implementing Rules and Regulations (IRR) Invitation to Bid?
of RA 9184, as amended on September 2,
2009:
Were bids submitted on
25.4. Bids shall be received by the BAC or before the deadline
on the date, time, and place specified in for submission of bids
the Invitation to Bid. not accepted?
2. To verify if the BAC observed 2. Count the number Did the BAC observe the
the maximum of 75 calendar days of days from the last maximum of 75-
from the last day of posting of the day of posting of the calendar days from the
Request for Expression of Interest Request for Expression last day of posting of
of Interest up to the the Request for
up to the deadline for submission deadline for Expression of Interest
and receipt of bids submission and receipt up to the deadline for
of bids and compare submission and receipt
Implementing Rules and Regulations (IRR) with the 75-calendar- of bids?
of RA 9184, as amended on September 2, day maximum period.
2009:
25.4. Bids shall be received by the BAC
on the date, time, and place specified in
the Request for Expression of Interest.
The following periods from the last day
of posting of the /Request for
Expression of Interest up to the
submission and receipt of bids shall be
observed:
a)...
b)
c) For consulting services, a maximum
period of seventy five (75) calendar
days.
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Answer
presence of the Chairman or Vice-Chairman of the Chairman or
shall be required. Vice-Chairman and if
majority of the BAC
members or
representatives/alterna
tes attended the
proceedings.
2. To verify if the BAC opened the 3. Compare the date Did the BAC open the
bids immediately after the and time of the bids immediately after
deadline for the submission and opening of bids the deadline for the
receipt of bids and at the: indicated in the submission and receipt
Minutes of the of bids?
a. date, Opening of Bids with
b. time, and the deadline for Did the BAC open the
c. place submission and receipt bids on the date
specified in the Request for of bids stated in the specified in the Request
Expression of Interest Bidding Documents. for Expression of
Interest?
Implementing Rules and Regulations (IRR) 4. Compare the date,
of RA 9184, as amended on September 2, time and place of the Did the BAC open the
2009: opening of bids bids on the time
29. Bid Opening indicated in the specified in the Request
The BAC shall open the bids Minutes of the for Expression of
immediately after the deadline for the Opening of Bids with Interest?
submission and receipt of bids. [GPPB those specified in the
Resolution No. 13-2009, dated 16 Request for Expression Did the BAC open the
December 2009] The time, date, and of Interest. bids at the place
place of the opening of bids shall be specified in the Request
specified in the Bidding Documents. The for Expression of
bidders or their duly authorized Interest?
representatives may attend the opening
of bids. The BAC shall adopt a
procedure for ensuring the integrity,
security, and confidentiality of all
submitted bids. The minutes of the bid
opening shall be made available to the
public upon written request and
payment of a specified fee to recover
cost of materials.
3. To verify if the BAC opened 5. From the Minutes Did the BAC open first
first the technical envelopes and of the Bid Opening, the technical
ascertained compliance of each look for information envelopes?
bidder with the documents evidencing that the
BAC opened first each
required to be submitted in the
bidders technical
first envelope by checking the envelope.
submitted documents of each
bidder against a checklist of 6. Compare the Is the Checklist for
required documents to ascertain if Checklist for Technical Technical Envelope of
they are all present, using a Envelope of Consulting Consulting Services
nondiscretionary pass/fail Services with the used by the BAC in
criterion, as stated in the required form (SF- accordance with the
Instructions to Bidders CONS-41: Checklist for required form?
Technical Envelope
Requirements).
Implementing Rules and Regulations (IRR)
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of RA 9184, as amended on September 2, 7. Compare the list of Are the contents of the
2009: documents in the Checklist for Technical
30.1. The BAC shall open the first bid Checklist with the list Envelope of Consulting
envelopes of prospective bidders in public of documents required Services accomplished
to determine each bidders compliance to be submitted per by the BAC those that
with the documents required to be the Bidding are required to be
submitted for eligibility and for the Documents. submitted in the
technical requirements, as prescribed in technical envelope per
this IRR. For this purpose, the BAC shall Bidding Documents?
check the submitted documents of each
bidder against a checklist of required
documents to ascertain if they are all
present, using a nondiscretionary
pass/fail criterion, as stated in the 8. Determine if the Did the BAC ascertain
Instructions to Bidders. If a bidder submits BACs entries in the the presence of the
the required document, it shall be rated Checklist are following documents in
passed for that particular requirement. complete. the technical envelope
In this regard, bids that fail to include any of each bidder:
requirement or are incomplete or patently
insufficient shall be considered as failed. a. The bid security in
Otherwise, the BAC shall rate the said first the prescribed form,
bid envelope as passed. amount and validity
period?
25.2. The first envelope shall contain the
following technical information/ b. Organizational chart
documents, at the least: for the contract to be
c. For the procurement of consulting bid?
services
i) The bid security in the prescribed c. List of completed and
form, amount and validity period; on-going projects?
ii) Organizational chart for the contract
to be bid; d. Approach, work plan,
iii) List of completed and on-going and schedule?
projects;
iv) Approach, work plan, and schedule: e. List of key personnel
Provided, however, That for to be assigned to the
architectural design, submission of contract to be bid, with
architectural plans and designs shall their complete
not be required during the consultants qualification and
selection process; experience data?
v) List of key personnel to be assigned to
the contract to be bid, with their f. Sworn statement by
complete qualification and experience the prospective bidder
data; and or its duly authorized
vi) Sworn statement by the prospective representative in the
bidder or its duly authorized form prescribed by the
representative in the form prescribed by GPPB as to the
the GPPB as to the following: following:
(1) It is not blacklisted or barred from f.1. It is not
bidding by the GOP or any of its blacklisted or barred
agencies, offices, corporations, or from bidding by the
LGUs, including foreign GOP or any of its
government/foreign or international agencies, offices,
financing institution whose blacklisting corporations, or LGUs,
rules have been recognized by the including foreign
GPPB; government/ foreign or
(2) Each of the documents submitted in international financing
satisfaction of the bidding institution whose
requirements is an authentic copy of blacklisting rules have
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the original, complete, and all been recognized by the
statements and information provided GPPB?
therein are true and correct;
(3) It is authorizing the Head of the f.2. Each of the
Procuring Entity or his duly authorized documents submitted
representative/s to verify all the in satisfaction of the
documents submitted; bidding requirements is
(4) The signatory is the duly authorized an authentic copy of
representative of the prospective the original, complete,
bidder, and granted full power and and all statements and
authority to do, execute and perform information provided
any and all acts necessary and/or to therein are true and
represent the prospective bidder in correct?
the bidding, with the duly notarized
Secretarys Certificate attesting to f.3. It is authorizing
such fact, if the prospective bidder is the Head of the
a corporation, partnership, Procuring Entity or his
cooperative, or joint venture; duly authorized
(5) It complies with the disclosure representative/s to
provision under Section 47 of the Act verify all the
in relation to other provisions of R.A. documents submitted?
3019;
(6) It complies with the responsibilities f.4. The signatory is
of a prospective or eligible bidder the duly authorized
provided in the PBDs; and representative of the
(7) It complies with existing labor laws prospective bidder, and
and standards, in the case of granted full power and
procurement of services. authority to do,
execute and perform
33.2.1 The BAC shall conduct a detailed any and all acts
evaluation of bids using either of the necessary and/or to
following evaluation procedures as represent the
specified in the Bidding Documents: prospective bidder in
a) Quality-Based Evaluation Procedure the bidding, with the
i) duly notarized
ii) After receipt of bids, the technical Secretarys Certificate
proposals shall first be opened and attesting to such fact,
evaluated, in accordance with Section if the prospective
33.2.2. of this IRR. The BAC shall rank bidder is a corporation,
the consultants in descending order partnership,
based on the numerical ratings of their cooperative, or joint
technical proposals and identify the venture?
Highest Rated Bid: Provided, however,
that the Highest Rated Bid shall pass the f.5. It complies with
minimum score indicated in the Bidding the disclosure provision
Documents. under Section 47 of the
Act in relation to other
provisions of R.A.
Per SAMPLE FORMS FOR PROCUREMENT 3019?
OF CONSULTING SERVICES published by
the GPPB: SF-CONS-41 revised 9 May 04 f.6. It complies with
(Checklist for Technical Envelope the responsibilities of a
Requirements) prospective or eligible
bidder provided in the
PBDs?
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9. From the Minutes of Did the BAC rate as
the Bid Opening look failed in the first
for information envelope bids that
indicating that the BAC failed to include any
declared as failed in requirement or are
the first envelope bids incomplete or patently
that failed to include insufficient?
any requirement or
are incomplete or
patently insufficient; Did the BAC rate as
otherwise, that the passed in the first
BAC rated the first bid envelope bids that
envelope as passed. passed all the
requirements in the
technical envelope?
2. To verify if the BAC, through its 2. From the TWG Did the BAC, through its
Secretariat, put in writing reports duly reviewed Secretariat, put in
requests for clarification of bids by the BAC, look for writing requests for
information used in clarification of bids from
from the bidders concerned
the bid evaluation the bidders concerned?
which were requested
Implementing Rules and Regulations (IRR) from the bidders
of RA 9184, as amended on September 2, concerned. Look for Were the clarifications
2009: the letter request for made by the bidders
33.1. From submission and receipt of
said information duly concerned in writing?
bids until the approval by the Head of received by the bidder
the Procuring Entity of the ranking of and the response of
short listed bidders, those that have the bidder concerned.
submitted their bids are prohibited from
making any communication with any BAC
member, including its staff and
personnel, as well as its Secretariat and
TWG, regarding matters connected to
their bids. However, the BAC, through its
Secretariat, may ask in writing the bidder
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for a clarification of its bid. All responses
to requests for clarification shall be in
writing.
3. To verify if the BAC evaluated 3. From the TWG Did the BAC evaluate
first the technical proposals report and supporting first the technical
documents, duly proposals of short listed
Implementing Rules and Regulations (IRR) reviewed by the BAC, consultants?
of RA 9184, as amended on September 2, look for information on
2009: the evaluation of the
33.2. The purpose of bid evaluation is to technical proposal
determine the Highest Rated Bid using ahead of the opening
the following steps: of the financial
proposal.
33.2.1. The BAC shall conduct a detailed
evaluation of bids using either of the
following evaluation procedures as
specified in the Bidding Documents:
a) Quality-Based Evaluation Procedure
i)
b) Quality-Cost Based Evaluation
Procedure
i) The technical proposal together with
the financial proposal shall be
considered in the evaluation of
consultants. The technical proposals
shall be evaluated first using the
criteria in Section 33.2.2 of this IRR.
4. To verify if the BAC evaluated 4. From the relevant Were the criteria and
the technical proposals of report(s) of the numerical weights used
consultants based on the criteria Technical Working by the BAC those
Group (e.g. Rating specified in the Bidding
and numerical weights for bid
Sheet for Technical Documents:
evaluation as specified in the Proposal with
Bidding Documents supporting information a. Quality of personnel
and detailed to be assigned to the
Implementing Rules and Regulations (IRR) evaluation), duly project?
of RA 9184, as amended on September 2, reviewed by the BAC;
2009: and Minutes of b. Experience and
Meeting(s) of the BAC, capability of the
33.2.2 The technical proposals of look for information on consultant?
consultants shall be evaluated based on the evaluation
the following criteria and using the conducted on the c. Plan of approach and
corresponding numerical weights technical proposals. methodology?
indicated in the bidding documents:
a) Quality of personnel to be assigned to
the project which covers suitability of key
staff to perform the duties of the 5. Compare the Did the BAC use the
particular assignments and general criteria and numerical criteria and numerical
qualifications and competence including weights used by the weights for each
education and training of the key staff; TWG/BAC in their consultant?
evaluation for each
b) Experience and capability of the consultant (per TWG
consultant which include records of reports and supporting
previous engagement and quality of documents) with those
performance in similar and in other specified in the
projects; relationship with previous and Bidding Documents.
current clients; and, overall work
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commitments, geographical distribution
of current/ impending projects and
attention to be given by the consultant.
The experience of the consultant to the
project shall consider both the overall
experiences of the firm and the individual
experiences of the principal and key staff
including the times when employed by
other consultants; and
c) Plan of approach and methodology with
emphasis on the clarity, feasibility,
innovativeness and comprehensiveness
of the plan approach, and the quality of
interpretation of project problems, risks,
and suggested solutions.
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is conducted in a collegial manner.
7. To verify if the HOPE approved 8. From the copy of Did the HOPE approve
or disapproved the the BAC Resolution on or disapprove the
recommendation of the BAC the technical bid recommendation of the
evaluation approved BAC within two (2)
within two (2) calendar days after
by the HOPE, count calendar days after
receipt of the results of the the number of days receipt of the results of
evaluation from the BAC from receipt to the evaluation from the
approval of the BACs BAC?
Implementing Rules and Regulations (IRR) recommendation.
of RA 9184, as amended on September 2,
2009:
33.2. The purpose of bid evaluation is to
determine the Highest Rated Bid using
the following steps:
8. To verify if the Procuring Entity: 9. From copies of the Did the Procuring
a. notified those Consultants notification letters, Entity:
whose Bids did not meet the with evidence of
receipt (registered a. notify those
minimum qualifying mark or
letter, facsimile, or Consultants whose
were considered non- electronic mail), Bids did not meet
responsive to the Bidding compare the names of the minimum
Documents and TOR, indicating the consultants rated qualifying mark or
that their Financial Proposals passed with those in were considered
shall be returned unopened the letters. non-responsive to
after completing the selection; the Bidding
b. simultaneously notified the Compare the dates of Documents and
Consultants that have secured the receipt of the TOR, indicating that
letters. their Financial
the minimum qualifying mark,
Proposals shall be
indicating the date and time set Also look for the returned unopened
for opening the Financial statements that the after completing the
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Proposals bid did not meet the selection?
minimum qualifying
Philippine Bidding Documents for the mark or were b. simultaneously notify
Procurement of Consulting Services 3rd considered non- the Consultants that
Edition (October 2009) approved through responsive to the have secured the
GPPB Resolution No. 05-2009 dated 30 Bidding Documents minimum qualifying
September 2009: and TOR, and that mark, indicating the
Part II, Section III. Bid Data Sheet their Financial date and time set for
ITB Clause 25.2. If the Fund Source is Proposals shall be opening the Financial
GOP returned unopened Proposals?
For Quality Cost Based Evaluation after completing the
(QCBE): After the evaluation of quality is selection; or that they
completed, the Procuring Entity shall have obtained the
notify those Consultants whose Bids did minimum qualifying
not meet the minimum qualifying mark mark with the date
or were considered non-responsive to the and time set for
Bidding Documents and TOR, indicating opening the Financial
that their Financial Proposals shall be Proposals.
returned unopened after completing the
selection process. The Procuring Entity 10. Count the number Was the opening date
shall simultaneously notify the of days from the of Financial Proposals
Consultants that have secured the notification to the indicated in the letter
minimum qualifying mark, indicating the opening date of the not sooner than 2
date and time set for opening the Financial Proposals weeks after the date of
Financial Proposals. The opening date indicated in the letters notification?
shall not be sooner than two weeks after and compare with the
the notification date unless otherwise 2-week minimum
specified in ITB Clause 25.1. The requirement.
notification may be sent by registered
letter, facsimile, or electronic mail.
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2. To verify if the BAC 2. From the Minutes of Did the BAC:
a. read aloud and recorded the the opening of the
name of the Consultant, the Financial Proposals, a. read aloud and
quality scores, and the look for information on record the name of
reading out loud of the the Consultant, the
proposed prices when the name of the quality scores, and
Financial Proposals were Consultant, the quality the proposed prices
opened scores, and the when the Financial
and proposed prices Proposals were
b. prepared Minutes of the public opened?
opening of the Financial
Proposals and
b. prepare Minutes of
Philippine Bidding Documents for the the public opening of
Procurement of Consulting Services 3rd the Financial
Edition (October 2009) approved through Proposals?
GPPB Resolution No. 05-2009 dated 30
September 2009:
Part II, Section III. Bid Data Sheet
ITB Clause 25.2. If the Fund Source is
GOP
For Quality Cost Based Evaluation
(QCBE):
The Financial Proposals shall be opened
publicly in the presence of the
Consultants representatives who choose
to attend. The name of the Consultant,
the quality scores, and the proposed
prices shall be read aloud and recorded
when the Financial Proposals are opened.
The Procuring Entity shall prepare
minutes of the public opening.
3. To verify if the BAC opened 3. From the TWG Did the BAC open only
only the financial proposals of the report and supporting the financial proposals
consultants who met the documents, duly of the consultants who
reviewed by the BAC, met the minimum
minimum technical score
look for information on technical score?
the opening of the
Implementing Rules and Regulations (IRR) financial proposals of
of RA 9184, as amended on September 2,
consultants who met
2009: the minimum technical
33.2. The purpose of bid evaluation is to score and compare
determine the Highest Rated Bid using with the names of
the following steps: those whose technical
proposals met the
33.2.1. The BAC shall conduct a detailed minimum technical
evaluation of bids using either of the score.
following evaluation procedures as
specified in the Bidding Documents:
a) Quality-Based Evaluation Procedure
i)
b) Quality-Cost Based Evaluation
Procedure
i) The technical proposal together with
the financial proposal shall be
considered in the evaluation of
consultants. The technical proposals
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shall be evaluated first using the
criteria in Section 33.2.2 of this IRR.
The financial proposals of the
consultants who meet the minimum
technical score shall then be opened.
4. To verify if the BAC evaluated 4. From the TWG Did the BAC evaluate
the financial proposals report duly reviewed the financial proposals
considering: by the BAC, look for considering:
information on the
a. Financial Proposals are
evaluation of financial a. Financial Proposals
complete:
proposals as to: are complete:
a.1. all the documents
mentioned in ITB Clause 11 a. completeness of a.1. all the
were present: documents documents mentioned in
FPF 1. Financial Proposal ITB Clause 11 were
Submission Form should form the b. computational present:
covering letter of the Financial errors were a.1.1 FPF 1.
Proposal. corrected, Financial Proposal
Form FPF 2. Summary of Submission Form
Costs, c. prices in various should form the
FPF 3. Breakdown of Price currencies were covering letter of
per Activity, converted to the the Financial
FPF 4. Breakdown of Philippine peso at Proposal?
Remuneration per Activity, the rate indicated
FPF 5. Reimbursables per in ITB Clause 13, a.1.2 FPF 2.
Activity, and Summary of Costs?
FPF 6. Miscellaneous d. include the cost of
Expenses. Relate to the cost of all taxes, duties, a.1.3 FPF 3.
consulting services under two fees, levies, and Breakdown of Price
distinct categories, namely: (a) other charges per Activity?
Remuneration; and (b) imposed under the
Reimbursable Expenditures. applicable laws, a.1.4 FPF 4.
a.2. all items of the Technical Breakdown of
Proposals that are required to e. special tax Remuneration per
be priced are so priced, privileges are Activity?
granted to a
otherwise rejected the
particular class or a.1.5 FPF 5.
Proposal, nationality of Reimbursables per
b. computational errors were Consultants by Activity?
corrected, virtue of the GOPs
c. prices in various currencies were international a.1.6 FPF 6.
converted to the Philippine peso at commitments, the Miscellaneous
the rate indicated in ITB Clause 13, amount of such tax Expenses. Related
d. include the cost of all taxes, privileges shall be to the cost of
duties, fees, levies, and other included in the consulting services
charges imposed under the Financial Proposal under two distinct
applicable laws, for purposes of categories, namely:
e. special tax privileges are comparative (a) Remuneration;
evaluation of bids, and (b)
granted to a particular class or
Reimbursable
nationality of Consultants by f. Financial Proposal Expenditures?
virtue of the GOPs did not exceed the
international commitments, the ABC,
amount of such tax privileges g. lowest Financial a.2. all items of the
shall be included in the Proposal (Fm) shall Technical Proposals that
Financial Proposal for purposes be given a Financial are required to be priced
of comparative evaluation of Score (Sf) of 100 are so priced, otherwise
bids, points, rejected the Proposal?
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f. Financial Proposal did not
exceed the ABC, h. The Sf of other b. computational errors
g. lowest Financial Proposal (Fm) Financial Proposals were corrected?
shall be given a Financial Score were computed
based on the c. prices in various
(Sf) of 100 points, formula: Sf = currencies were
h. The Sf of other Financial 100 x Fl/F. converted to the
Proposals were computed based Philippine peso at the
on the formula indicated below: rate indicated in ITB
Clause 13?
Sf = 100 x Fl/F
d. include the cost of all
Philippine Bidding Documents for the taxes, duties, fees,
Procurement of Consulting Services 3rd levies, and other
Edition (October 2009) approved through charges imposed
GPPB Resolution No. 05-2009 dated 30 under the applicable
September 2009: laws?
Part II, Section III. Bid Data Sheet
ITB Clause 25.2. If the Fund Source is e. special tax privileges
GOP are granted to a
For Quality Cost Based Evaluation particular class or
(QCBE) nationality of
Consultants by virtue
The BAC shall determine whether the of the GOPs
Financial Proposals are complete, i.e., all international
the documents mentioned in ITB Clause commitments, the
11 are present and all items of the amount of such tax
corresponding Technical Proposals that privileges shall be
are required to be priced are so priced. included in the
If not the Procuring Entity shall reject Financial Proposal for
the Proposal. The BAC shall correct any purposes of
computational errors and convert prices comparative
into various currencies to the Philippine evaluation of bids?
peso at the rate indicated in ITB Clause
13. The Financial Proposal shall not f. Financial Proposal did
exceed the ABC and shall be deemed not exceed the ABC?
to include the cost of all taxes, duties,
fees, levies, and other charges imposed g. Lowest Financial
under the applicable laws. The evaluation Proposal (Fm) shall be
shall include all such taxes, duties, fees, given a Financial
levies, and other charges imposed under Score (Sf) of 100
the applicable laws; where special tax points?
privileges are granted to a particular
class or nationality of Consultants by h. The Sf of other
virtue of the GOPs international Financial Proposals
commitments, the amount of such tax were computed based
privileges shall be included in the on the formula:
Financial Proposal for purposes of Sf = 100 x Fl/F ?
comparative evaluation of bids.
The lowest Financial Proposal (Fm)
shall be given a Financial Score (Sf) of
100 points. The Sf of other Financial
Proposals shall be computed based on
the formula indicated below:
Sf = 100 x Fl/F
Where:
Sf is the financial score of the Financial
Proposal under consideration,
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Audit Criteria Audit Activities Audit Question Yes No Particulars
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Fl is the price of the Fm,
F is the price of the Financial Proposal
under consideration
ITB Clause 11
ITB Clause 11.2
The Financial Proposal requires
completion of six (6) forms, particularly,
FPF 1, FPF 2, FPF 3, FPF 4, FPF 5, FPF
6. FPF 1. Financial Proposal Submission
Form should form the covering letter of
the Financial Proposal. Form FPF 2.
Summary of Costs, FPF 3. Breakdown
of Price per Activity, FPF 4. Breakdown
of Remuneration per Activity, FPF 5.
Reimbursables per Activity, and FPF 6.
Miscellaneous Expenses. Relate to the
cost of consulting services under two
distinct categories, namely: (a)
Remuneration; and (b) Reimbursable
Expenditures.
5. To verify if the BAC rejected for 5. From the TWG Did the BAC reject
reasons of: report and supporting incomplete Proposals
documents, duly (there were items of the
a. incomplete Proposals (there reviewed by the BAC, Technical Proposals that
were items of the Technical look for information on were required to be
Proposals that were required to the evaluation of the priced but not so
be priced but not so priced); financial proposals and priced)?
the results indicating
b. incomplete documents; thereof the
consultants with
c. Financial Proposals exceeded incomplete Did the BAC reject
the ABC proposals/documents proposals with
and whose bid price incomplete documents?
Philippine Bidding Documents for the exceeded ABC.
Procurement of Consulting Services 3rd
Edition (October 2009) approved through
GPPB Resolution No. 05-2009 dated 30 Did the BAC not
September 2009: consider Financial
Part II, Section III. Bid Data Sheet Proposals that exceeded
ITB Clause 25.2. If the Fund Source is the ABC?
GOP
The BAC shall determine whether the
Financial Proposals are complete, i.e., all
the documents mentioned in ITB Clause
11 are present and all items of the
corresponding Technical Proposals that
are required to be priced are so priced.
If not the Procuring Entity shall reject
the Proposal. ..The Financial Proposal
shall not exceed the ABC ..
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Audit Criteria Audit Activities Audit Question Yes No Particulars
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computational errors, which exceed the
ABC shall not be considered
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provided that the total weights
given to the Technical and Financial
Proposals shall add up to 1.0.
NOTE:
Something is wrong with the
formula! Perhaps F should be P?
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iv) After approval by the Head of the
Procuring Entity of the Highest
Rated Bid, the BAC shall, within
three (3) calendar days, notify and
invite the consultant with the
Highest Rated Bid for negotiation in
accordance with Section 33.2.5 of
this IRR, except for item (e)
thereof.
7. To verify if the Highest Rated 7. From the copy of Did the HOPE approve
Bid (HRB) recommended by the the BACs letter for the the HRB recommended
BAC was approved/disapproved HOPE count the by the BAC within two
number of days from (2) calendar days after
by the Head of the Procuring
receipt to the date of receipt of the results of
Entity (HOPE) within two (2) approval of the BAC evaluation?
calendar days after receipt of the Resolution and
results of evaluation compare with the 2-
day maximum.
Implementing Rules and Regulations (IRR)
of RA 9184, as amended on September 2,
2009:
33.2. The purpose of bid evaluation is to
determine the Highest Rated Bid using
the following steps:
33.2.1. The BAC shall conduct a detailed
evaluation of bids using either of the
following evaluation procedures as
specified in the Bidding Documents:
a)
b) Quality-Cost Based Evaluation
Procedure
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Answer
period of not less than 7 received by them).
calendar days and
b. post the ranking and
Implementing Rules and Regulations (IRR) 9. Using print-outs of total scores in the
of RA 9184, as amended on September 2, the web page PhilGEPS website for
2009: (PhilGEPS and the a period of not less
Procuring Entitys than 7 calendar days?
33.2.4. All participating short listed
websites) with the
consultants shall be furnished the results
posted results of and
(ranking and total scores only) of the
evaluation after the approval by the evaluation, count the c. post the ranking and
Head of the Procuring Entity of the number of days from total scores in the
the first to the last day Procuring Entitys
ranking. Said results shall also be posted
of said posting and website for a period
in the PhilGEPS and the website of the
compare with the 7- of not less than 7
procuring entity, whenever available, for
day requirement. calendar days?
a period of not less than seven (7)
calendar days.
9. To verify if the BAC, within 10. From the notice to Did the BAC, within
three (3) calendar days after the consultant with the three (3) calendar days
approval by the HOPE of the HRB HRB, look for after approval by the
information: HOPE of the HRB notify
notified and invited the
on the date of and invite the
consultant with the Highest Rated
receipt of the consultant with the
Bid (HRB) for the purpose of notice by the Highest Rated Bid
conducting negotiations with the consultant; and (HRB) for the purpose
said consultant that the BAC of conducting
invited the negotiations with the
Implementing Rules and Regulations (IRR) consultant for the said consultant?
of RA 9184, as amended on September 2, purpose of
2009: conducting
33.2. The purpose of bid evaluation is to negotiations.
determine the Highest Rated Bid using
the following steps:
33.2.1. The BAC shall conduct a detailed
evaluation of bids using either of the
following evaluation procedures as
specified in the Bidding Documents:
a)
b) Quality-Cost Based Evaluation
Procedure
iii)
iv) After approval by the Head of the
Procuring Entity of the Highest
Rated Bid, the BAC shall, within
three (3) calendar days, notify and
invite the consultant with the
Highest Rated Bid for negotiation in
accordance with Section 33.2.5 of
this IRR, except for item (e)
thereof.
10. To verify if the BACs 11. From the Minutes Did the BACs
negotiation with the consultant of the negotiations, negotiations with the
with the HRB covered the look for information on consultant with the HRB
the discussion of: cover the following:
following:
a. Discussion and
a. Discussion and clarification of clarification of the
the Terms Of Reference (TOR)
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and Scope of Services; Terms Of Reference a. Discussion and
b. Discussion and finalization of (TOR) and Scope of clarification of the
the methodology and work Services; Terms Of Reference
program proposed by the b. Discussion and (TOR) and Scope of
finalization of the Services?
consultant; methodology and
c. Consideration of the work program
appropriateness of qualifications proposed by the b. Discussion and
and pertinent compensation, consultant; finalization of the
number of man-months and the c. Consideration of the methodology and
personnel to be assigned to the appropriateness of work program
job, taking note of over- qualifications and proposed by the
qualified personnel, to be pertinent consultant?
compensation,
commensurate with the
number of man-
compensation of personnel with months and the c. Consideration of the
the appropriate qualifications, personnel to be appropriateness of
number of man-months and assigned to the job, qualifications and
schedule of activities (manning taking note of over- pertinent
schedule); qualified personnel, compensation,
d. Discussion on the services, to be commensurate number of man-
facilities and data, if any, to be with the months and the
provided by procuring entity; compensation of personnel to be
personnel with the assigned to the job,
and
appropriate taking note of over-
e. Provisions of the contract qualifications, qualified personnel,
number of man- to be commensurate
Implementing Rules and Regulations (IRR) months and with the
of RA 9184, as amended on September 2, schedule of activities compensation of
2009: (manning schedule); personnel with the
d. Discussion on the appropriate
33.2.5 Negotiations shall cover the services, facilities qualifications, number
following: and data, if any, to of man-months and
a) Discussion and clarification of the be provided by schedule of activities
TOR and Scope of Services; procuring entity; (manning schedule)?
b) Discussion and finalization of the e. Discussion on the
methodology and work program financial proposal
proposed by the consultant; submitted by the d. Discussion on the
c) Consideration of appropriateness of consultant; and services, facilities and
qualifications and pertinent f. Provisions of the data, if any, to be
compensation, number of man-months contract provided by procuring
and the personnel to be assigned to entity?
the job, taking note of over-qualified
personnel, to be commensurate with
the compensation of personnel with and
the appropriate qualifications, number
of man-months and schedule of
activities (manning schedule); e. Provisions of the
d) Discussion on the services, facilities contract?
and data, if any, to be provided by
procuring entity;
e) ; and
f) Provisions of the contract.
11. To verify if the BAC completed 12. From the minutes Did the BAC complete
negotiations with any one of the negotiations negotiations with any
consultant within 10 calendar with individual one consultant within
consultants, count the 10 calendar days?
days
number of days from
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Implementing Rules and Regulations (IRR) the start to the end of
of RA 9184, as amended on September 2, the negotiations and
2009: compare with the 10-
day period.
33.2.5. Negotiations
a)
.
f)
Except for meritorious reasons,
negotiations with anyone consultant shall
be completed within ten (10) calendar
days.
12. To verify if the BAC submitted 13. From the BAC Did the BAC submit
their Resolution on the results of Resolution check for their Resolution on the
the negotiation and their the approval of the results of the
HOPE. negotiation and their
recommendations to the HOPE for
recommendations to the
approval HOPE for approval?
and
if the HOPE approved the said
results and recommendations
Did the HOPE approve
Implementing Rules and Regulations (IRR)
the said results and
of RA 9184, as amended on September 2,
recommendations?
2009:
33.2.1.
a)
i)
iii) The Head of the Procuring Entity
shall approve or disapprove the
recommendations of the BAC
13. To verify if the BAC 14. Count the number Did the BAC complete
completed the entire evaluation of days from the the entire evaluation
process including submission of deadline for receipt of process including
proposals to submission of the
the results thereof to the HOPE for
the date of submission results thereof to the
approval within twenty one (21)
of the results of bid HOPE for approval
calendar days after the deadline evaluation to the within twenty one (21)
for receipt of proposals HOPE and compare calendar days after the
Implementing Rules and Regulations (IRR) with the 21-day deadline for receipt of
of RA 9184, as amended on September 2, period. proposals?
2009:
33.4. The entire evaluation process,
including submission of the results
thereof to the Head of the Procuring
Entity for approval, shall be completed
in not more than twenty one (21)
calendar days after the deadline for
receipt of proposals.
IN CASE OF FAILURE OF THE NEGOTIATION WITH THE CONSULTANT WITH THE HIGHEST RATED
BID (HRB)
1. To verify if the BAC terminated 1. From the minutes Did the BAC terminate
negotiations with the consultant of the negotiation, negotiations with the
with the HRB when no agreement look for information on consultant with the HRB
the official termination when no agreement on
on all items discussed was
of the negotiations as all items discussed was
possible
a result of non- possible?
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agreement in all of the
Implementing Rules and Regulations (IRR) items discussed with
of RA 9184, as amended on September 2, the consultant with the
2009: HRB.
6.2. Once issued by the GPPB, the use
of the Generic Procurement Manuals
(GPMs), Philippine Bidding Documents
(PBDs), and other standard forms shall
be mandatory upon all Procuring Entities.
However, whenever necessary, to suit
the particular needs of the procuring
entity, modifications may be made,
particularly for major and specialized
procurement, subject to the approval of
the GPPB.
2. To verify if the BAC invited the NOTE: Did the BAC invite the
next-rank consultant for For each failure next-rank consultant for
negotiations and adopted the of negotiations negotiations and
same conditions and procedures with the next- adopted the same
conditions and
used with the HRB rank bidder, the
procedures used with
BAC is to repeat the HRB?
Implementing Rules and Regulations (IRR) the process until
of RA 9184, as amended on September 2, the negotiation is
2009: completed.
6.2. Once issued by the GPPB, the use
of the Generic Procurement Manuals
The related audit
(GPMs), Philippine Bidding Documents
(PBDs), and other standard forms shall activities are
be mandatory upon all Procuring Entities. likewise to be
However, whenever necessary, to suit repeated.
the particular needs of the procuring
entity, modifications may be made,
particularly for major and specialized
procurement, subject to the approval of
the GPPB.
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Generic Procurement Manual of Procedures
for the Procurement of Consulting Services
Volume 4 (June 2006) published by the
GPPB:
Step 1
Step 8. Negotiate with the consultant
with the Highest Rated Bid.
What happens if negotiations with the
bidder with the HRB fail?
If agreement on all items discussed
during negotiations is not possible
between the BAC and the first-in-rank
consultant, the BAC would have to
terminate negotiations and invite the
next-rank consultant for negotiations.
The procedure for negotiations, as
described above, shall be repeated
until negotiation with the consultant is
successfully completed.
INVOLVEMENT OF THE BAC OBSERVERS IN THE OPENING OF THE FINANCIAL PROPOSAL(S) AND
NEGOTIATIONS WITH THE CONSULTANTS WITH THE HRB AND NEXT-IN-RANK
1. To verify if the BAC invited 1. From the Minutes of Did the BAC choose the
Observers: the BAC meeting on Observers considering:
a. representing the COA, the the selection of the
Observer from the g. One representing the
project-related professional
pool, check for COA?
organization accredited or duly
information on the
recognized by the Professional BACs evaluation in h. One representing the
Regulation Commission or the regard to: project-related
Supreme Court, and a non- the selection of the professional
government organization (NGO) organization from organization
from the procuring entitys Pool which the Observer accredited or duly
of Observers; will be invited; recognized by the
b. that have: knowledge, Professional
experience or Regulation
b.1. knowledge, experience or
expertise in Commission or the
expertise in procurement procurement or in Supreme Court?
or in the subject matter of the subject matter
the contract to be bid; of the contract to i. One representing a
b.2. no actual or potential be bid; non-government
conflict of interest in the no actual or organization?
contract to be bid; and potential conflict of
b.3. conformed with other interest in the j. With knowledge,
relevant criteria contract to be bid; experience or
and expertise in
determined by the BAC;
conformed with procurement or in
c. at least 3 calendar days prior to the subject matter of
other relevant
the opening of the financial criteria determined the contract to be
proposal by the BAC. bid?
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the procurement process, invite, in criteria determined
addition to the representative of the by the BAC?
COA, at least two (2) observers, who
shall not have the right to vote, to sit in 2. From certified Did the BAC invite the
its proceedings where: copies of the Observers at least 3
a) At least one (1) shall come from a duly invitations to the days from the date of
recognized private group in a sector or Observers with the opening of the
discipline relevant to the procurement at evidence of receipt, financial proposal and
hand, for example: compare the date of negotiations?
i) receipt with the 3-day
ii) minimum requirement.
iii) For consulting services, a project-
related professional organization
accredited or duly recognized by the
Professional Regulation Commission or
the Supreme Court, such as, but not
limited to:
(1) PICE;
(2) Philippine Institute of Certified
Public Accountants (PICPA); and
(3) Confederation of Filipino Consulting
Organizations; and
b) The other observer shall come from a
non-government organization (NGO).
2. To verify if the Procuring Entity 3. Based on the BACs Did the Procuring Entity
considered the Minutes on the consider the comments/
comments/observations of the Negotiations and the observations of the
Observers report of the Observers?
Observers check
Implementing Rules and Regulations (IRR) whether a deliberation
of RA 9184, as amended on September 2, was made on the
2009: comments
13.4. The observers shall have the /observations of the
following responsibilities: observers.
a) To prepare the report either jointly or
separately indicating their observations
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made on the procurement activities
conducted by the BAC for submission to
the Head of the Procuring Entity, copy
furnished the BAC Chairman. The report
shall assess the extent of the BACs
compliance with the provisions of this
IRR and areas of improvement in the
BACs proceedings;
b) To submit their report to the procuring
entity and furnish a copy to the GPPB
and Office of the Ombudsman/Resident
Ombudsman. If no report is
submitted by the observer, then it
is understood that the bidding
activity conducted by the BAC
followed the correct procedure; and
c) To immediately inhibit and notify in
writing the procuring entity concerned
of any actual or potential interest in the
contract to be bid.
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2. To verify the causes of Analyze the instances
instances of non-compliance and of non-compliances to Appropriate Audit Working Papers
develop appropriate audit establish the cause(s)
recommendations and develop
appropriate audit
recommendations.
Also determine if
appropriate actions
were taken by the
auditee in regard to
instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this
Audit Guide.
EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT
1. To verify the effects of Analyze the instances
instances of non-compliance on of non-compliance to Appropriate Audit Working Papers
the: establish the effects
and develop
a. validity of the procurement appropriate audit
activities and outputs including recommendations.
the validity of the resulting
contract; Also determine if
appropriate actions
b. validity of any payment to be
were taken by the
made on the basis of the auditee in regard to
contract; instances of non-
c. etc. compliance.
and develop appropriate audit
recommendations
Implementing Rules and Regulations NOTE:
(IRR) of RA 9184, as amended on Also refer to the
September 2, 2009: OFFENSES AND
PENALTIES
Observers shall be invited at least three
portion of this
(3) calendar days before the date of the
procurement stage/activity. The absence Audit Guide.
of observers will not nullify the BAC
proceedings, provided that they
have been duly invited in writing.
Also determine if
appropriate actions
were taken by the
auditee in regard to
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instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this
Audit Guide.
3. To communicate the results of Prepare the
the audit with the auditees appropriate audit/ Audit Observation Memorandum (AOM), if
Management validation document applicable
reflecting the results
COA Circular No. 2009-006 dated of the audit/validation
September 15, 2009 re- Prescribing the and transmit to
Use of the Rules and Regulations on Management
Settlement of Accounts
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XII. POST-QUALIFICATION
FOR THE PROCUREMENT OF CONSULTING SERVICES
The Highest Rated Bid (HRB) or Single Rated Bid (SRB), if lone, shall undergo post-
qualification in order to determine whether the bidder concerned complies with and is responsive
to all the requirements and conditions as specified in the Bidding Documents.
A. AUDIT OBJECTIVES:
2. To verify if the BAC performed the prescribed procedures for post-qualification within
the required time
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September 2, 2009:
34.1 The Highest Rated Bid shall
undergo post-qualification in order
to determine whether the bidder
concerned complies with and is
responsive to all the requirements
and conditions as specified in the
Bidding Documents.
2. To verify if the BAC 2. From the records of the Did the BAC require the
required the bidder whose BAC, check the date when bidder whose bid was
bid was declared as HRB the bidder with the HRB declared by the BAC as
submitted the: a) Tax HRB /SRB to submit the
/SRB to submit the
clearance, b) Latest income following documents
following documents within and business tax returns, c) within 3 calendar days
3 calendar days from the Certificate of PhilGEPS from its receipt of the
bidders receipt of the Registration; and d) Other notice:
notice: appropriate licenses and
a) Tax clearance; permits required by law and a) Tax clearance?
b) Latest income and stated in the Bidding
business tax returns; Documents and compare this b) Latest income and
c) Certificate of PhilGEPS with the date of receipt of business tax returns?
Registration; and the notice that the bidder has
the HRB. c) Certificate of
d) Other appropriate licenses PhilGEPS
and permits required by Registration?
law and stated in the
Bidding Documents and
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3. To verify if the BAC: 3. If based on the validation Did the BAC forfeit the
3.1. determined the veracity conducted in 2. above, the bid security and
of the documents submissions were found to be disqualify the bidder for
submitted and incomplete and/or not on award because of
time, obtain a copy of the failure to submit the
3.2. forfeited the bid
BAC Resolution disqualifying required documents on
security and disqualified the bidder and forfeiting its time?
the bidder for award for bid security.
reason that;
a. the bidder failed to
submit the required 4. Obtain from the BAC Did the BAC forfeit the
documents on time, Secretariat documents bid security and
and/or evidencing the BACs disqualify the bidder for
b. there was a finding validation of the veracity of award because of a
the documents submitted and finding against the
against the veracity of
the information thereon and veracity of the
the documents/ check the results of such documents/
information validation. information?
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on If the BAC had a finding
September 2, 2009: against the veracity of the
34.2.Within three (3) calendar documents/ information
days from receipt by the bidder of thereon, obtain a copy of the
the notice from the BAC that the BAC Resolution disqualifying
bidder has the Lowest Calculated the bidder and forfeiting its
Bid or Highest Rated Bid, the bidder bid security.
shall submit the following
documentary requirements to the
BAC:
a) Tax clearance;
b) Latest income and business tax
returns;
c) Certificate of PhilGEPS
Registration; and
d) Other appropriate licenses and
permits required by law and
stated in the Bidding Documents.
Failure to submit the above
requirements on time or a finding
against the veracity of such shall be
ground for the forfeiture of the bid
security and disqualify the bidder
for award.
4. To verify if the BAC 5. From the TWG report, as Did the BAC validate the
verified, validated, and reviewed by the BAC, and the authenticity of the
ascertained that the bidder Minutes of BAC meetings, Registration documents
with the HRB/SRB was: look for information submitted by the
evidencing validation of the bidder?
a. a duly licensed Filipino authenticity of the:
citizen/sole proprietor, or a. DTI Registration
b. a Partnerships duly Certificate, duly supported
organized under the laws with:
the DTI-certified copy of
of the Philippines and of
the Registration
which at least seventy five Certificate and
percent (60%) of the DTI certificate that the
interest belongs to sole proprietor is a
citizens of the Philippines, Filipino citizen (based on
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or the application for
registration filed by the
c. a Corporation duly bidder with the DTI),
organized under the laws if the bidder is a sole
proprietorship;
of the Philippines, and of
which at least seventy five b. SEC registration and of the
percent (60%) of the 60% Filipino ownership,
outstanding capital stock duly supported with:
belongs to citizens of the the SEC-certified copy
Philippines, or of the Registration
Certificate,
d. Cooperatives duly if the bidder is a
partnership;
organized under the laws
of the Philippines, and of c. SEC registration and of
which at least seventy five the 60% Filipino
percent (60%) belongs to ownership, duly supported
citizens of the Philippines, with:
or SEC-certified copy of
the Registration
e. Joint Venture - that Certificate and
Filipino ownership or SEC-certified copy of
interest of the joint the Articles of
Incorporation
venture concerned shall if the bidder is a
be at least seventy five corporation.
percent (60%)
d. CDA registration and of
Implementing Rules and Regulations the 60% Filipino
(IRR) of RA 9184, as amended on ownership, duly supported
September 2, 2009: with:
34.3. The post-qualification shall CDA-certified copy of
verify, validate, and ascertain all the Registration
statements made and documents Certificate and
submitted by the bidder with the CDA certificate that at
Highest Rated Bid, using non- least sixty percent
discretionary criteria, as stated in (60%) belongs to
the Bidding Documents. These citizens of the
criteria shall consider, but shall Philippines
not be limited to, the following: if the bidder is a
cooperative
a) Legal Requirements. To verify,
validate, and ascertain licenses, e. Joint Venture individual
certificates, permits, and partners:
agreements submitted by the DTI, SEC, or CDA
bidder, and the fact that it is not registrations and
included in any blacklist as of the 60% Filipino
provided in Section 25.2 of this ownership
IRR. For this purpose, the GPPB duly supported with the
shall maintain a consolidated file DTI-, SEC-, or CDA-
of all blacklisted suppliers, certified Certificate, as the
contractors, and consultants. case may be and DTI-,
SEC-, or CDA-certified
b) Technical Requirements. To documents evidencing
determine compliance of goods, ownership.
infrastructure projects, or
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consulting services offered with 6. From the TWG report, as Did the BAC validate
the requirements specified in reviewed by the BAC, and the Filipino ownership?
the Bidding Documents, Minutes of BAC meetings,
including, where applicable: look for information
i) Verification and validation of evidencing validation of
the bidders stated competence Filipino ownership of the
and experience, and the bidders firm.
competence and experience of
the bidders key personnel to be
assigned to the project, for the
procurement of infrastructure
projects and consulting services;
ii) Verification of availability and
commitment, and/or inspection
and testing for the required
capacities and operating
conditions, of equipment units
to be owned/leased/under
purchase by the bidder for use
in the contract under bidding, as
well as checking the
performance of the bidder in its
ongoing government and
private contracts (if any of these
on-going contracts shows a
reported negative slippage of at
least fifteen percent (15%), ;
iii)
iv) Ascertainment of the
sufficiency of the bid security as
to type, amount, form and
wording, and validity period;
c) Financial Requirements. To
verify, validate and ascertain
the bid price proposal of the
bidder and, whenever
applicable, the required CLC in
the amount specified and over
the period stipulated in the
Bidding Documents, or the
bidders NFCC to ensure that
the bidder can sustain the
operating cash flow of the
transaction.
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under the laws of the
Philippines and of which at
least sixty percent (60%) of
the outstanding capital stock
belongs to citizens of the
Philippines;
d) Cooperatives duly organized
under the laws of the
Philippines, and of which at
least sixty percent (60%)
belongs to citizens of the
Philippines; or
e) Persons/entities forming
themselves into a joint venture,
i.e., a group of two (2) or more
persons/entities that intend to
be jointly and severally
responsible or liable for a
particular contract: Provided,
however, That Filipino
ownership or interest thereof
shall be at least sixty percent
(60%). For this purpose,
Filipino ownership or interest
shall be based on the
contributions of each of the
members of the joint venture
as specified in their JVA.
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b) when the types and fields of
consulting services in which the
foreign consultant wishes to
engage involve the practice of
regulated professions, the foreign
consultant must be authorized by
the appropriate GOP professional
regulatory body to engage in the
practice of those professions and
allied professions: Provided,
however, That the limits of such
authority shall be strictly
observed.
5. To verify if the BAC 7. From the TWG report, as Did the BAC verify,
verified, validated, and reviewed by the BAC, and the validate, and ascertain
ascertained that the when Minutes of BAC meetings, that the when the
look for information types and fields of
the types and fields of
evidencing validation of the consulting services
consulting services involve
authenticity of the: involve the practice of
the practice of professions a. Document attesting to professions regulated
regulated by law, those who the Filipino citizenship of by law, those who will
will actually perform the the persons who will actually perform the
services shall be Filipino actually perform the services shall be
citizens and registered services, Filipino citizens and
professional authorized by b. Authorization document registered professional
the appropriate regulatory issued by the appropriate authorized by the
GOP professional appropriate regulatory
body to practice those
regulatory body to body to practice those
professions and allied
engage in the practice of professions and allied
profession those professions and profession?
allied professions
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
24.3.2. When the types and
fields of consulting services in
which the foregoing
persons/entities wish to engage
involve the practice of
professions regulated by law,
those who will actually perform
the services shall be Filipino
citizens and registered
professional authorized by the
appropriate regulatory body to
practice those professions and
allied professions.
6. To verify if the BAC 8. From the TWG report with Did the BAC verify,
verified, validated, and supporting documents and validate, and ascertain
ascertained that the Foreign duly reviewed by the BAC, the authenticity of the
consultant with the and the Minutes of BAC following documents
meetings, look for submitted by the
HRB/SRB was:
information evidencing Foreign consultant with
a. registered with the SEC validation of the authenticity the HRB/SRB was:
and/or any agency of the:
authorized by the laws of a. SEC registration of the a. SEC registration of
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the Answer
the Philippines; foreign consultant, the foreign
and consultant?
b. when the types and fields b. Authorization document
of consulting services in issued by the appropriate b. Authorization
GOP professional document issued by
which the foreign
regulatory body to the appropriate GOP
consultant wishes to engage in the practice of professional
engage involve the those professions and regulatory body to
practice of regulated allied professions and engage in the practice
professions, the foreign stating the limits of such of those professions
consultant was authority. and allied professions
authorized by the and stating the limits
appropriate GOP of such authority.
professional regulatory
body to engage in the
9. From the TWG report with Did the BAC verify,
practice of those supporting documents and validate, and ascertain
professions and allied duly reviewed by the BAC, that the Foreign
professions observing the and the Minutes of BAC consultant with the
limits of such authority meetings, look for HRB/SRB was:
information evidencing a. registered with the
Implementing Rules and Regulations validation of the: SEC and/or any
(IRR) of RA 9184, as amended on registration with the SEC agency authorized
September 2, 2009: and/or any agency by the laws of the
24.3.3. In order to manifest trust authorized by the laws of Philippines?
and confidence in and promote the the Philippines, and
development of Filipino authorization by the b. when the types and
consultancy, foreign consultants appropriate GOP fields of consulting
may be hired in the event Filipino professional regulatory services in which the
consultants do not have the body to engage in the foreign consultant
sufficient expertise and capability to practice of those wishes to engage
render the services required under professions and allied involve the practice
the project, as determined by the professions observing of regulated
Head of the Procuring Entity. the limits of such professions foreign
Foreign consultants may be eligible authority, when the types consultant was
to participate in the procurement of and fields of consulting authorized by the
consulting services, subject to the services in which the appropriate GOP
following qualifications: foreign consultant wishes professional
a) must be registered with the SEC to engage involve the regulatory body to
and/or any agency authorized by practice of regulated engage in the
the laws of the Philippines; and professions. practice of those
b) when the types and fields of professions and
consulting services in which the allied professions
foreign consultant wishes to observing the limits
engage involve the practice of of such authority?
regulated professions, the foreign
consultant must be authorized by
the appropriate GOP professional
regulatory body to engage in the
practice of those professions and
allied professions: Provided,
however, That the limits of such
authority shall be strictly
observed.
7. To verify if the BAC 10. From the TWG report, as Did the BAC verify,
verified, validated, and reviewed by the BAC, and the validate, and ascertain
ascertained that the Mayors Minutes of BAC meetings, that the Mayors Permit
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the Answer
Permit submitted by the look for information submitted by the bidder
bidder with the HRB/SRB evidencing validation of is authentic?
was issued by the city or authenticity of the Mayors
municipality where the Permit and whether it was
issued by the city or Did the BAC verify,
principal place of business of
municipality where the validate, and ascertain
the prospective bidder is principal place of the that the Mayors Permit
located business of the bidder is submitted by the bidder
located, duly supported with: was issued by the city
Implementing Rules and Regulations The LGU-certified copy or municipality where
(IRR) of RA 9184, as amended on of the Mayors permit, the principal place of
September 2, 2009: and business of the bidder is
34.3. The post-qualification shall DTI-, SEC-, or CDA- located?
verify, validate, and ascertain all certified Registration
statements made and documents Certificate showing the
submitted by the bidder with the bidders principal place
Lowest Calculated Bid/Highest of business
Rated Bid, using non-
discretionary criteria, as stated in
the Bidding Documents. These
criteria shall consider, but shall
not be limited to, the following:
a) Legal Requirements. To verify,
validate, and ascertain licenses,
certificates, permits, and
agreements submitted by the
bidder, and the fact that it is
not included in any blacklist
as provided in Section 25.2 of
this IRR. For this purpose, the
GPPB shall maintain a
consolidated file of all
blacklisted suppliers,
contractors, and consultants.
23.1. For purposes of
determining the eligibility of
bidders using the criteria stated
in Section 23.5 of this IRR, only
the following documents shall
be required by the BAC, using
the forms prescribed in the
Bidding Documents,:
a) Class A Documents
Legal Documents
i) ---
ii) Mayors permit issued by the
city or municipality where
the principal place of
business of the prospective
bidder is located.
8. To verify if the BAC 11. From the TWG report Did the BAC verify,
verified, validated, and with supporting documents, validate, and ascertain
ascertained that the bidder duly reviewed by the BAC, that the bidder is not
is not included in any and the Minutes of BAC included in any
meetings, look for blacklist?
blacklist
information evidencing
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Implementing Rules and Regulations validation by the BAC that
(IRR) of RA 9184, as amended on the bidder is not included in
September 2, 2009: any blacklist .
34.3. The post-qualification shall
verify, validate, and ascertain all
statements made and documents
submitted by the bidder with the
Highest Rated Bid, using non-
discretionary criteria, as stated in
the Bidding Documents. These
criteria shall consider, but shall
not be limited to, the following:
a) Legal Requirements. To verify,
validate, and ascertain licenses,
certificates, permits, and
agreements submitted by the
bidder, and the fact that it is
not included in any
blacklist as provided in
Section 25.2 of this IRR. For
this purpose, the GPPB shall
maintain a consolidated file of
all blacklisted suppliers,
contractors, and consultants
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the Answer
authorized and designated
representative of the prospective
bidder, and granted full power
and authority to do, execute and
perform any and all acts
necessary and/or to represent
the prospective bidder in the
bidding, with the duly notarized
Secretarys Certificate attesting to
such fact, if the prospective
bidder is a corporation,
partnership or joint venture;
(5) It complies with the
disclosure provision under
Section 47 of the Act in relation
to other provisions of R.A. 3019;
(6) It complies with the
responsibilities of a prospective
or eligible bidder provided in the
PBDs; and
(7) It complies with existing
labor laws and standards.
9. To verify if the BAC 12. From the TWG report Did the BAC validate the
validated the bidders with supporting documents, relationship of the
compliance with the no duly reviewed by the BAC, bidder with the:
the Minutes of BAC
relationship provision
meetings/deliberations and a. HOPE?
embodied in Section 47 of
BAC Resolution, check for
the Revised IRR of RA No. information showing the b. members of the BAC?
9184, i.e., that the bidder is BACs validation that:
not related by consanguinity a. the individual bidder in an c. members of the
or affinity up to the 3rd civil individual or a sole TWG?
degree to the: proprietorship, is not
a. HOPE, related to the persons d. members of the BAC
b. members of the BAC, mentioned in Sec. 47, Secretariat?
c. members of the TWG, Amended IRR of RA 9184;
b. all the officers and e. head of the Project
d. members of the BAC
members of the bidder Management Office
Secretariat, partnership are not (PMO)?
e. head of the Project related to the persons
Management Office mentioned in Sec. 47, f. head of the end-user
(PMO), Amended IRR of RA 9184; unit?
f. head of the end-user unit, c. all the officers, directors,
g. project consultants and controlling g. project consultants?
stockholders of the bidder
Section 47. Disclosure of corporation are not
Relations related to the persons
All bids shall be accompanied by a mentioned in Sec. 47,
sworn affidavit of the bidder that it Amended IRR of RA 9184.
is not related to the Head of the
Procuring Entity, members of the
BAC, the TWG, and the BAC 13. From the TWG report, as Did the BAC
Secretariat, the head of the PMO or reviewed by the BAC, the automatically disqualify
the end-user unit, and the project Minutes of BAC the bidder found to be
consultants, by consanguinity or meetings/deliberations and related within the 3rd
affinity up to the third civil degree. BAC Resolution, check for civil degree of
Failure to comply with the information showing the consanguinity or affinity
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aforementioned provision shall be a BACs decision/action in case with the persons listed
ground for the automatic of violation with the no in Section 47 of the
disqualification of the bid in relationship provision. Revised IRR of RA
consonance with Section 30 of this 9184?
IRR. For this reason, relation to
the aforementioned persons
within the third civil degree of
consanguinity or affinity shall
automatically disqualify the
bidder from participating
in the procurement of contracts
of the procuring entity. On the
part of the bidder, this
provision shall apply to the following
persons:
a) If the bidder is an individual or a
sole proprietorship, to the bidder
himself;
b) If the bidder is a partnership, to
all its officers and members;
c) If the bidder is a corporation, to
all its officers, directors, and
controlling stockholders; and
d) If the bidder is a joint venture,
the provisions of items (a), (b),
or (c) of this Section shall
correspondingly apply to each of
the members of the said joint
venture, as may be appropriate
10. To verify if the BAC 14. From the TWG report Did the BAC validate the
validated the bidders stated with supporting documents, bidders stated
competence and experience duly reviewed by the BAC, competence and
and the Minutes of BAC experience against the
Implementing Rules and Regulations meetings, check for requirements stated in
(IRR) of RA 9184, as amended on information showing the the Bidding Documents?
September 2, 2009: BACs validation of the From
34.3. The post-qualification shall the TWG report, as reviewed
verify, validate, and ascertain all by the BAC, and the Minutes
statements made and documents of BAC meetings, check for
submitted by the bidder with the information showing the
Lowest Calculated Bid/Highest BACs validation of the stated
Rated Bid, using non-discretionary competence and experience
criteria, as stated in the Bidding of the consulting
Documents. These criteria shall firm/consultant himself
consider, but shall not be limited to, compared to the competence
the following: and experience required as
stated in the Bidding
b) Technical Requirements. To Documents
determine compliance of the
goods, infrastructure projects, or
consulting services offered with
the requirements specified in the
Bidding Documents, including,
where applicable:
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and experience, and the
competence and experience of
the bidders key personnel to
be assigned to the project, for
the procurement of
infrastructure projects and
consulting services;
11. To verify if the BAC 15. From the TWG report Did the BAC validate the
validated the stated with supporting documents, stated competence and
competence and experience duly reviewed by the BAC, experience of the
of the bidders key personnel and the Minutes of BAC bidders key personnel
meetings, check for to be assigned to the
to be assigned to the project
information showing the project?
BACs validation of the
Implementing Rules and Regulations competence and experience
(IRR) of RA 9184, as amended on of the bidders key personnel
September 2, 2009: to be assigned to the project.
34.3. The post-qualification shall
verify, validate, and ascertain all
statements made and documents
submitted by the bidder with the
Lowest Calculated Bid/Highest
Rated Bid, using non-discretionary
criteria, as stated in the Bidding
Documents. These criteria shall
consider, but shall not be limited to,
the following:
b) Technical Requirements. To
determine compliance of the
goods, infrastructure projects, or
consulting services offered with
the requirements specified in the
Bidding Documents, including,
where applicable:
12. To verify if the BAC 16. From the TWG report, as Did the BAC ascertain
verified, validated, and reviewed by the BAC, the the sufficiency of the
ascertained authenticity of Minutes of BAC bid security as to:
meetings/deliberations and
the bid security and its
BAC Resolution, check for a. type?
sufficiency as to: information showing the
a. type, BACs validation of the b. amount?
b. amount, authenticity of the bid
c. form and wording, and security and its sufficiency as c. form and wording?
d. validity period. to type, amount, form and
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wording, and validity period. d. validity period?
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
34.3. The post-qualification shall
verify, validate, and ascertain all
statements made and documents
submitted by the bidder with the
Lowest Calculated Bid, using non-
discretionary criteria, as stated in
the Bidding Documents. These
criteria shall consider, but shall
not be limited to, the following:
b. Legal
Requirements
b) Technical Requirements.
i)
ii)
iii)
iv) Ascertainment of the
sufficiency of the bid security
as to type, amount, form and
wording, and validity period.
13. To verify if the BAC 17. From the TWG report, as Did the BAC verify,
verified, validated, and reviewed by the BAC, the validate, and ascertain
ascertained if the Net Minutes of BAC that the:
meetings/deliberations and
Financial Contracting
BAC Resolution, check for a. NFCC is at least equal
Capacity (NFCC) is at least
information showing the to the ABC? or
equal to the ABC or the BACs:
Credit Line Certificate (CLC) a. validation of the b. CLC is at least 10%
in favor of the prospective authenticity of the CLC or of the ABC?
bidder if awarded the the financial statements
contract is at least 10% of used as basis for
the ABC computing the NFCC,
b. validation of the accuracy
Implementing Rules and Regulations of the computation for
(IRR) of RA 9184, as amended on NFCC,
September 2, 2009: c. validation of the
34.3. The post-qualification shall Statement of the
verify, validate, and ascertain all prospective bidder of all
statements made and documents its ongoing and completed
submitted by the bidder with the government and private
Lowest Calculated Bid, using non- contracts, including
discretionary criteria, as stated in contracts awarded but not
the Bidding Documents. These yet started, and
criteria shall consider, but shall d. comparison with the
not be limited to, the following: requirements.
a) Legal Requirements .
b) Technical Requirements
c) Financial Requirements
To verify, validate and
ascertain the bid price proposal
of the bidder and, whenever
applicable, the required CLC in
the amount specified and over
the period stipulated in the
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Bidding Documents, or the
bidders NFCC to ensure that
the bidder can sustain the
operating cash flow of the
transaction.
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14. To verify if the BAC 18. From the post Did the HRB/SRB pass
declared the post-qualified qualification report of the post-qualification?
HRB/SRB as the Highest TWG, as reviewed by the
RAted Responsive Bid BAC, check if the HRB/SRB
passed all the criteria for post
(HRRB/SRRB)
qualification.
Did the BAC declare the
Implementing Rules and Regulations 19. Match the name of the HRB/SRB as the Highest
(IRR) of RA 9184, as amended on HRRB/SRRB as approved by rated Responsive Bid/
September 2, 2009: the HOPE with the name of Single Rated Responsive
34.4. If the BAC determines that bidder as indicated in the Bid (HRRB/SRRB)?
the bidder with the Highest Rated BAC resolution
Bid passes all the criteria for post- recommending HRRB/SRRB
qualification, it shall declare the
said bid as the Highest Rated
Responsive Bid, and recommend If Yes, proceed to:
to the Head of the Procuring AWARD OF
Entity the award of contract to the CONTRACT.
said bidder at its submitted bid
price or its calculated bid price,
whichever is lower, or in the case If No, proceed to the
of quality-based evaluation Sub-Objectives in
procedure, submitted bid price or
case of post-
its negotiated price, whichever is
lower. disqualification of
the bidder with
the HRB/SRB.
IN CASE OF POST-DISQUALIFICATION OF THE BIDDER WITH THE HIGHEST RATED BID (HRB) -FOR
THE PROCUREMENT OF CONSULTING SERVICES
1. To verify if the BAC, in 1. From the records of the Did the BAC
case of post-disqualification BAC Secretariat, check for immediately notify the
of the HRB/SRB immediately information on the date of HRB/SRB of the post-
receipt by the post- disqualification?
notified the HRB/SRB in
disqualified bidder of the
writing of the post-
notice and for the grounds Did the BAC indicate in
disqualification with the for disqualification indicated the notice the grounds
grounds for it. thereon. for post-disqualification?
2. To verify if the BAC 2. Look for the TWG report Did the BAC conduct
conducted and completed on the post-qualification of and complete the post-
the post-qualification of the the second rank bidder as qualification of the
reviewed by the BAC. second rank bidder?
second rank bidder using the
same post-qualification
process adopted for the HRB
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Implementing Rules and Regulations
(IRR) of RA 9184, as amended on 3. Repeat the audit activities
September 2, 2009: on the sub-objectives for the
34.6. the BAC shall initiate and post-qualification for the
complete the same post- second rank bidder.
qualification process on the bidder
with the second Highest Rated 4. Analyze the post- Did the BAC adopt the
Bid. qualification reports of the same process of
TWG, as reviewed by the verifying, validating and
BAC, for the HRB and the ascertaining all
second rank bidder to check statements made and
whether the TWG adopted documents submitted
the same process of by the HRB and the
verifying, validating and second rank bidder?
ascertaining all statements
made and documents
submitted by the HRB and
the second rank bidder.
3. To verify if the BAC 6. From the Minutes of the Did the BAC declare the
declared the HRB as the BAC meeting, analyze if the HRB as the HRRB after
HRRB after its request for BAC declared the HRB as the its request for
HRRB after its request for reconsideration was
reconsideration was granted
reconsideration has been granted and it was
and it was declared post- granted and it was declared declared post-qualified?
qualified post-qualified.
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o 34.4. If the BAC determines
that the bidder with the Highest
Rated Bid passes all the criteria
for post-qualification, it shall
declare the said bid as the
Highest Rated Responsive Bid,
and recommend to the Head of
the Procuring Entity the award of
contract to the said bidder at its
submitted bid price or its
calculated bid price, whichever is
lower, or in the case of quality-
based evaluation procedure,
submitted bid price or its
negotiated price, whichever is
lower.
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2. To verify if the BAC 3. Look for the date the Did the BAC complete
completed the post- post-qualification was started the post-qualification
qualification process in not by the BAC and the date the process in not more
more than seven (7) HRRB was declared and than seven (7) calendar
determine the number of days?
calendar days
days between said dates.
If BAC completed post-
Implementing Rules and Regulations qualification in more
(IRR) of RA 9184, as amended on than seven (7) calendar
September 2, 2009: days, was the extension
34.8. The post-qualification approved by the HOPE?
process shall be completed in not
more than seven (7) calendar
days from the determination of
the Highest Rated Bid. In
exceptional cases, the post-
qualification period may be
extended by the Head of the
Procuring Entity, but in no case
shall the aggregate period exceed
thirty (30) calendar days.
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the Answer
representative of the COA, at least contract to be bid?
two (2) observers, who shall not
have the right to vote, to sit in its
proceedings where: f. Conformed with
a) At least one (1) shall come from a other relevant
duly recognized private group in a criteria determined
sector or discipline relevant to the by the BAC?
procurement at hand, for example:
i)
ii) 2. From certified copies of Did the BAC invite the
iii) For consulting services, a the invitations to the observers at least 3
project-related professional Observers with evidence of days from the date of
organization accredited or duly receipt, compare the date of the post-qualification?
recognized by the Professional receipt with the 3-day
Regulation Commission or the minimum requirement.
Supreme Court, such as, but not
limited to:
(1) PICE;
(2) Philippine Institute of
Certified Public Accountants
(PICPA); and
(3) Confederation of Filipino
Consulting Organizations; and
b) The other observer shall come
from a non-government
organization (NGO).
2. To verify if the Procuring 3. Based on the BACs Did the Procuring Entity
Entity considered the Minutes on the Post consider the comments/
comments/observations of Qualification and the report observations of the
the Observers of the Observers check Observers?
whether a deliberation was
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made on the comments
Implementing Rules and Regulations /observations of the
(IRR) of RA 9184, as amended on observers.
September 2, 2009:
13.4. The observers shall have
the following responsibilities:
a) To prepare the report either
jointly or separately indicating
their observations made on the
procurement activities conducted
by the BAC for submission to the
Head of the Procuring Entity,
copy furnished the BAC
Chairman. The report shall assess
the extent of the BACs
compliance with the provisions of
this IRR and areas of
improvement in the BACs
proceedings;
b) To submit their report to the
procuring entity and furnish a
copy to the GPPB and Office of
the Ombudsman/Resident
Ombudsman. If no report is
submitted by the observer,
then it is understood that the
bidding activity conducted by
the BAC followed the correct
procedure; and
c) To immediately inhibit and notify
in writing the procuring entity
concerned of any actual or
potential interest in the contract
to be bid.
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be made on the basis of
the contract;
c. etc. NOTE:
Also refer to the
and develop appropriate OFFENSES AND
audit recommendations PENALTIES portion of
Implementing Rules and this Audit Guide.
Regulations (IRR) of RA 9184, as
amended on September 2, 2009:
Observers shall be invited at least
three (3) calendar days before
the date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the Prepare the appropriate
results of the audit with the audit/ validation document Audit Observation Memorandum (AOM), if applicable
auditees Management reflecting the results of the
audit/validation and transmit
COA Circular No. 2009-006 dated to Management
September 15, 2009 re-
Prescribing the Use of the Rules
and Regulations on Settlement of
Accounts
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XII. AWARD OF CONTRACT
FOR THE PROCUREMENT OF CONSULTING SERVICES
A. AUDIT OBJECTIVES:
1. To verify if the conditions/requirements and procedures for the award of contract were
adhered to by the procuring entity;
3. To verify if the conditions/requirements, procedures and timelines for entering into and
approval of the contract were adhered to by the procuring entity.
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Single Rated Responsive Bid qualification with the HRRB/ with the HRRB/SRRB?
(SRRB), if lone, to the HOPE SRRB recommended for
for award of contract award in the BAC Resolution
2. To verify if the BAC 2. From the TWG evaluation Did the BAC
recommended to the HOPE report with supporting recommend award of
the award of the contract to documents and duly reviewed the contract to the
by the BAC, and BAC bidder with the
the bidder with the
Resolution declaring the HRRB/SRRB at its:
HRRB/SRRB at its:
HRRB/SRRB and
recommending award, look a. submitted bid price
a. submitted bid price or its for information on the or its calculated bid
calculated bid price, contract amount price, whichever is
whichever is lower, or recommended by the BAC for lower?
award.
b. in the case of quality- or
based evaluation Then compare the
recommended contract price b. in the case of
procedure, submitted bid
with the submitted bid price quality-based
price or its negotiated
and calculated bid price OR evaluation
price, whichever is lower. the negotiated price, in case procedure,
of quality based evaluation. submitted bid price
Implementing Rules and Regulations or its negotiated
(IRR) of RA 9184, as amended on price, whichever is
September 2, 2009: lower?
34.4. If the BAC determines that
the bidder with the Highest Rated
Bid passes all the criteria for post-
qualification, it shall declare the
said bid as the Highest Rated
Responsive Bid, and recommend
to the Head of the Procuring
Entity the award of contract to the
said bidder at its submitted bid
price or its calculated bid price,
whichever is lower, or in the case
of quality-based evaluation
procedure, submitted bid price or
its negotiated price, whichever is
lower.
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
September 30, 2009:
27.4. If the BAC determines that
the Consultant with the HRB
passes all the criteria for post-
qualification, it shall declare the
said bid as the consultant with
the Highest Rated and
Responsive Bid (HRRB), and
recommend to the Head of the
Procuring Entity the award of
contract to the said Consultant at
its submitted price or its
calculated bid price, whichever is
lower, subject to ITB Clause 29.3.
3. To verify if the BAC 3. From the BAC Chairmans Did the BAC submit the
submitted the following letter for the HOPE following documents to
documents to the HOPE with submitting the results and the HOPE with the
the documents pertaining to recommendation for
the recommendation for
the recommendation, duly award:
award: received by the Office of the
a. Resolution of the BAC HOPE, look for information
recommending award; on the documents submitted. a. Resolution of the
b. Abstract of Bids; BAC recommending
c. Duly approved program award?
of work and Cost
Estimates;
d. Document issued by b. Abstract of Bids?
appropriate entity
authorizing the procuring c. Duly approved
entity to incur program of work
obligations for a specified and Cost
amount; and Estimates?
e. Other pertinent
documents required by
existing laws, rules and/ d. Document issued by
or the procuring entity appropriate entity
concerned authorizing the
procuring entity to
incur obligations for
Implementing Rules and Regulations
a specified
(IRR) of RA 9184, as amended on
amount?
September 2, 2009:
37.1.1. The BAC shall recommend
to the Head of the Procuring
e. Other pertinent
Entity the award of contract to the
documents required
bidder with the Highest Rated
by existing laws,
Responsive Bid or the Single
rules and/or the
Rated Responsive Bid after the
procuring entity
post qualification process has
concerned?
been completed.
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
recommending award;
b) Abstract of Bids;
c) Duly approved program of
work or delivery schedule, and
Cost Estimates;
d) Document issued by
appropriate entity authorizing
the procuring entity to incur
obligations for a specified
amount; and
e) Other pertinent documents
required by existing laws, rules
and/ or the procuring entity
concerned.
4. To verify if the HOPE, or 4. Determine the number of Did the HOPE approve
his/her duly authorized days from the date of receipt the BAC
official, approved the by the HOPE of the recommendation for
HRRB/SRRB recommended recommendation for award to award within the 7-
the date of approval and calendar-day period (or
by the BAC for award within compare with the 7-day or 15-calendar-day period
7 calendar days from the 15-day period. for GOCCs/ GFIs)?
date of receipt of the
recommendation from the
BAC (15 calendar days for
GOCCs/GFIs)
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Procuring Entity shall disapprove 6. Compare the date of the Was the Notice of
such recommendation, such release of the Notice of Award as recommended
disapproval shall be based only on Award with the expiry date of by the BAC and
valid, reasonable, and justifiable the bid validity period. approved by the HOPE
grounds to be expressed in issued to the winning
writing, a copy furnished the BAC. bidder within the bid
validity period of the bid
Annex C security?
PERIOD OF ACTION ON
PROCUREMENT ACTIVITIES
Stage 10
6. To verify if the BAC 7. From the notices to the Did the BAC notify all
notified all the losing bidders losing bidders, look for the the losing bidders within
within the 7 or 15 calendar date of its receipt and the 7 or 15 calendar
day period (same period compare with the 7-day or day period (same period
15-day requirement. provided for the HOPE
provided for the HOPE to
to approve/ disapprove
approve/ disapprove the BACs
8. Also compare the names the BACs Resolution)?
Resolution)
of the losing bidders notified
Implementing Rules and Regulations with those appearing in the
(IRR) of RA 9184, as amended on Abstract of Bids as Read.
September 2, 2009:
7. To verify if the BAC posted 9. Access the PhilGEPS Did the BAC post the
the Notice of Award within 3 website and the website of Notice of Award within
days from its issuance at the: the procuring entity, and 3 days from its issuance
a. PhilGEPS website, conduct inspection of the at the:
area where the Notice of
b. website of the procuring
Award is to be posted on the a. PhilGEPS website?
entity, and 3rd day from the issuance of
c. any conspicuous place in the Notice of Award to the b. website of the
the premises of the winning bidder. procuring entity? And
procuring entity.
c. any conspicuous
Implementing Rules and Regulations place in the premises
(IRR) of RA 9184, as amended on of the procuring
September 2, 2009: entity?
37.1.6. The BAC, through the
Secretariat, shall post, within
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
three (3) calendar days from its
issuance, the Notice of Award in
the PhilGEPS, the website of the
procuring entity, if any, and any
conspicuous place in the premises
of the procuring entity.
7. To verify if the procuring 10. From the receiving Did the bidder submit
entity observed the following records of the BAC, compare the JVA within ten (10)
conditions for the execution the date of submission of the calendar days from
of the contract: Joint Venture Agreement receipt of the notice of
(JVA) with the required 10 award?
a) Submission of valid joint
days from receipt of the
venture agreement, if Notice of Award.
applicable, within 10
days from receipt of the
Notice of Award by the
winning Joint Venture 11. From the receiving Was the performance
bidder, records of the BAC, compare security posted within
e) Posting of performance the date of posting of the ten (10) calendar days
security within ten (10) performance security with from receipt by the
the required 10 days from winning bidder of the
calendar days from
receipt of the Notice of Notice of Award & prior
receipt by the winning Award; also compare with to the signing of the
bidder of the Notice of the date of the signing of the contract?
Award & prior to the contract.
signing of the contract in
the required amount,
currency, form, issuing 12. Compare the amount, Was the performance
entity, and valid until the currency, form, issuing entity, security posted in the:
issuance by the procuring and validity period of the a. right amount?
performance security posted
entity of the final
by the winning bidder with b. right currency?
certificate of acceptance, the requirements of Sec 39.2
f) Signing of the contract of the Revised IRR of RA c. right form?
within the same ten (10) 9184.
day period provided that d. right issuing entity?
all the documentary
requirements are e. right validity period?
complied with,
g) Approval by higher
authority, if required, 13. Compare the date of Was the contract signed
signing of the contract with within 10 calendar days
within 15 days from
the required 10-day period from receipt of the
receipt (25 days for from receipt of the Notice of Notice of Award by the
GOCCs) Award. winning bidder?
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
within ten (10) calendar 15. Compare the date of Was the contract
days from receipt by the approval of the contract by approved by higher
bidder of the notice from higher authority with the 15- authority within 15
the BAC that the bidder has day-period from receipt (25 calendar days?
the Lowest Calculated days for GOCCs). (25 calendar days for
Responsive Bid, as the case GOCCs)?
may be; or
ii) In case of infrastructure
projects, valid PCAB license
and registration for the
type and cost of the
contract to be bid for
foreign bidders, within 30
calendar days from receipt
by the bidder of the notice
from the BAC that the
bidder has the LCRB, when
the treaty or international
or executive agreement
expressly allows submission
of the PCAB license and
registration for the type
and cost of the contract to
be (sic) as a pre-condition
to the notice of award.
h) Posting of performance
security in accordance with
Section 39 of this IRR;
i) Signing of the contract as
provided in Section 37.2 of
this IRR;
j) Approval by higher authority,
if required, as provided in
Section 37.3 of this IRR.
Form of Amount of
Performance Performance
Security Security (Equal
to Percentage
of the Total
Contract Price
a) Cash, cashiers/
managers check
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
issued by a
Universal or Two percent
Commercial Bank (2%)
b) Bank draft/
guarantee or
irrevocable letter of
credit issued by a
Universal or
Commercial Bank;
Provided, however,
that it shall be
confirmed or
authenticated by a
Universal or
Commercial Bank,
if issued by a
foreign bank.
c) Surety bond Five percent
callable upon (5%)
demand issued by
a surety or
insurance company
duly certified by
the Insurance
Commission as
authorized to issue
such security.
d) Any combination Proportionate
of the foregoing. to share of
form with
respect to total
amount of
security
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Million Pesos (P50,000,000) and
below, the maximum period is five
(5) calendar days. In the case of
GOCCs, the concerned board or its
duly authorized representative
shall be given a maximum of
twenty-five (25) calendar days
from receipt thereof to approve or
disapprove it.
8. To verify if the contract is 16. Obtain from the BAC Are the contract
complete Secretariat or the Project documents complete,
Management Office or the consisting of the
Implementing Rules and Regulations Office responsible for project following:
(IRR) of RA 9184, as amended on implementation/ contract
September 2, 2009: execution for a copy of the a) Contract Agreement;
37.2.3. The following documents complete set of documents
shall form part of the contract: comprising the contract and
a) Contract Agreement; compare with the b) Bidding Documents;
b) Bidding Documents; requirements.
c) Winning bidders bid, including
the Eligibility requirements, c) Winning bidders bid,
Technical and Financial including the Eligibility
Proposals, and all other requirements,
documents/statements Technical and Financial
submitted; Proposals, and all other
d) Performance Security; documents/statements
e) Credit line in accordance with submitted;
the provisions of this IRR, if
applicable;
f) Notice of Award of Contract; d) Performance
and Security;
g) Other contract documents that
may be required by existing
laws and/or the procuring entity e) Credit line in
concerned in the Bidding accordance with the
Documents, such as the provisions of this IRR,
construction schedule and S- if applicable;
curve, manpower schedule,
construction methods,
equipment utilization schedule, f) Notice of Award of
construction safety and health Contract; and
program approved by the
Department of Labor and
Employment, and PERT/CPM for g) Other contract
infrastructure projects. documents that may
be required by existing
laws and/or the
procuring entity
concerned in the
Bidding Documents,
such as the
construction schedule
and S-curve,
manpower schedule,
construction methods,
equipment utilization
schedule, construction
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
safety and health
program approved by
the Department of
Labor and
Employment, and
PERT/CPM for
infrastructure projects?
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Regulation Commission or the
Supreme Court, such as, but not
limited to:
(1) PICE;
(2) Philippine Institute of
Certified Public Accountants
(PICPA); and
(3) Confederation of Filipino
Consulting Organizations; and
b) The other observer shall come
from a non-government
organization (NGO).
2. To verify if the Procuring 3. Based on the BACs Did the Procuring Entity
Entity considered the Minutes on the Post consider the comments/
comments/observations of Qualification, the meetings observations of the
on the award of contract, and Observers?
the Observers
the report of the Observers
check whether a deliberation
Implementing Rules and Regulations was made on the comments
(IRR) of RA 9184, as amended on /observations of the
September 2, 2009:
observers.
13.4. The observers shall have
the following responsibilities:
a) To prepare the report either
jointly or separately indicating
their observations made on the
procurement activities conducted
by the BAC for submission to the
Head of the Procuring Entity,
copy furnished the BAC
Chairman. The report shall assess
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
the extent of the BACs
compliance with the provisions of
this IRR and areas of
improvement in the BACs
proceedings;
b) To submit their report to the
procuring entity and furnish a
copy to the GPPB and Office of
the Ombudsman/Resident
Ombudsman. If no report is
submitted by the observer,
then it is understood that the
bidding activity conducted by
the BAC followed the correct
procedure; and
c) To immediately inhibit and notify
in writing the procuring entity
concerned of any actual or
potential interest in the contract
to be bid.
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
September 2, 2009: forfeiture of the bid Did the BAC forfeit the
1. 40.1. If the bidder with the security and bid security of the
Lowest Calculated Responsive recommendation of the winning bidder who,
Bid/Highest Rated Responsive Bid imposition of sanctions through his fault, failed,
or the bidder with the Single to the winning bidder. refused or was unable
Calculated/Rated Responsive Bid, to:
fails, refuses or is unable to
submit the documents required a. submit the
under Section 37.1 of this IRR or documents required
to make good its bid by entering under Section 37.1
into a contract with the procuring of the Revised IRR
entity or post the required of RA 9184?
Performance Security within the or
period stipulated in this IRR or in b. to make good its bid
the Bidding Documents, the bid by entering into a
security shall be forfeited and the contract with the
appropriate sanctions provided in procuring entity?
this IRR and existing laws shall be or
imposed, except where such c. post the required
failure, refusal or inability is Performance
through no fault of the said Security within the
bidder. period stipulated in
the Revised IRR of
RA 9184 or in the
Bidding
Documents?
a. submit the
documents required
under Section 37.1
of the Revised IRR
of RA 9184?
or
or
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
3. To verify if the BAC, after 3. From the records of the Did the BAC, after
disqualifying the winning BAC, look for information on disqualifying the
bidder with the Single Rated the disqualification of the winning bidder with the
Responsive Bid (SRRB) who, winning bidder with the SCRB SRRB who, due to his
who, due to his fault, fault, refused, failed, or
due to his fault, refused,
refused, failed, or was unable was unable to enter into
failed, or was unable to enter to enter into contract, post contract, post the
into contract, post the the required performance required performance
required performance security, or submit other security, or submit
security, or submit other required documents within other required
required documents within the time stipulated. documents within the
the time stipulated, declared time stipulated,
the bidding a failure and Look also for information on
the declaration of the bidding a. declare the bidding a
conducted a re-bidding with
a failure and the conduct of a failure?
re-advertisement and/or re-bidding with re-
posting, as provided for in advertisement. and
Sections 21 and 25 of the b. conduct a re-bidding
Revised IRR of RA 9184 with re-advertisement
and/or posting?
Implementing Rules and
Regulations (IRR) of RA 9184, as
amended on September 2, 2009:
40.3. In the case of failure, refusal
or inability of the bidder with the
Single Calculated/Rated NOTE:
Responsive Bid to submit the For the audit on the
documents required under Section Failure of Bidding for
37.1 of this IRR or to enter into the Procurement of
contract and post the required
Consulting Services
Performance Security, as provided
in this Section, the BAC shall and on the
disqualify the said bidder, and Competitive/ Public
shall declare the bidding a failure Bidding for the
and conduct a re-bidding with re- Procurement of
advertisement and/or posting, as Consulting Services,
provided for in Sections 21 and 25 perform the audit
of this IRR. Should there occur activities pertaining
another failure of bidding after the to these procurement
conduct of the contracts re-
activities in other
bidding, the procuring entity
concerned may enter into a parts of this Guide.
negotiated procurement.
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
the contract;
c. etc. NOTE:
and develop appropriate Also refer to the
audit recommendations OFFENSES AND
Implementing Rules and PENALTIES portion of
Regulations (IRR) of RA 9184, as this Audit Guide.
amended on September 2, 2009:
Observers shall be invited at least
three (3) calendar days before
the date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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XIII. FAILURE OF BIDDING
DECLARED BY THE BIDS AND AWARDS COMMITTEE (BAC)
FOR THE PROCUREMENT OF CONSULTING SERVICES
A. AUDIT OBJECTIVE:
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
.
Implementing Rules and Regulations e) the bidder with the
(IRR) of RA 9184, as amended on Lowest Calculated
September 2, 2009: Responsive Bid
refused, without
35.1. The BAC shall declare the
justifiable cause, to
bidding a failure when: accept the award of
a) No bids are received; contract, and no
b) All prospective bidders are award was made in
declared ineligible; accordance with
c) All bids fail to comply with all the Section 40 of the RA
bid requirements or fail post- 9184 and Revised
qualification, or, in the case of IRR?
consulting services, there is no
successful negotiation; or
d) The bidder with the Lowest
Calculated Responsive
Bid/Highest Rated Responsive
Bid refuses, without justifiable
cause, to accept the award of
contract, and no award is made
in accordance with Section 40 of
the Act and this IRR.
2. To verify if the BAC 2. From the minutes of the Did the BAC determine
determined the reason for the BAC meetings held for the the reason for the failed
failed bidding by conducting a purpose, look for bidding by conducting a
information on the review mandatory review and
mandatory review and
and evaluation conducted on evaluation of the:
evaluation of the :
the: (a) terms, (b)
a. terms, conditions, (c) specifications,
b. conditions, and (d) cost estimates and a. terms in the Bidding
c. specifications, the Documents?
d. cost estimates recommendations/decisions
in the Bidding Documents made possible
revisions/adjustments. b. conditions in the
Implementing Rules and Regulations Bidding Documents?
(IRR) of RA 9184, as amended on
September 2, 2009:
35.2. In order to determine the c. specifications in the
reason for the failed bidding, the Bidding Documents?
BAC shall conduct a mandatory
review and evaluation of the terms, d. cost
conditions, and specifications in the estimates?
Bidding Documents, including its
cost estimates.
3. To verify if the BAC and the 3. From the minutes of the Did the BAC and the
concerned units/officials of BAC meetings held for the concerned units/officials
the procuring entity, revised purpose and other records of the procuring entity,
the following as a result of of the procuring entity, look revised the following as
for information on the a result of the review
the review and evaluation
revisions/adjustments made and evaluation
conducted: on the (a) terms, (b) conducted:
a. terms, conditions, (c) specifications,
b. conditions, (d) ABC and approvals made a. terms in the Bidding
c. specifications, thereon. Documents?
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
d. Approved Budget for the b. conditions in the
Contract (ABC); Bidding Documents?
had them approved; and
conducted a re-bidding with c. specifications in the
Bidding Documents?
re-advertisement and/or
posting d. cost estimates?
4. To verify if the BAC invited 5. From the Minutes of the Did the BAC choose the
Observers: BAC meeting on the Observers considering:
a. representing the COA, the selection of the Observer
duly recognized private group from the pool, check for 1. one representing the
in a sector or discipline information on the BACs COA?
relevant to the procurement evaluation in regard to:
at hand, and a non- the selection of the 2. One representing the
government organization organization from which specific relevant the
(NGO) from the procuring the Observer will be duly recognized
entitys Pool of Observers; invited; private group in a
knowledge, experience or sector or discipline
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Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
b. that have: expertise in procurement relevant to the
b.1. knowledge, experience or or in the subject matter procurement at
expertise in procurement or in of the contract to be bid; hand?
the subject matter of the no actual or potential
contract to be bid; conflict of interest in the 3. One representing a
b.2. no actual or potential contract to be bid; and non-government
conflict of interest in the conformed with other organization?
contract to be bid; and relevant criteria
determined by the BAC. 4. With knowledge,
b.3. conformed with other
experience or
relevant criteria determined by
expertise in
the BAC;
procurement or in
c. at least 3 calendar days the subject matter of
prior to the start of the the contract to be
activity bid?
Implementing Rules and Regulations 5. With no actual or
(IRR) of RA 9184, as amended on
potential conflict of
September 2, 2009:
interest in the
Section 13. Observers contract to be bid?
13.1. To enhance the transparency of
the process, the BAC shall, in all 6. Conformed with
stages of the other relevant
procurement process, invite, in criteria determined
addition to the representative of the by the BAC?
COA, at least two (2) observers, who
shall not have the right to vote, to sit 6. From certified copies of Did the BAC invite the
in its proceedings where: the invitations to the observers at least 3
a) At least one (1) shall come from a Observers with evidence of days from the date of
duly recognized private group in a receipt, compare the date of the bid evaluation?
sector or discipline relevant to the receipt with the 3-day
procurement at hand, for example: minimum requirement.
i)
ii)
iii) For consulting services, a
project-related professional
organization accredited or duly
recognized by the Professional
Regulation Commission or the
Supreme Court, such as, but not
limited to:
(1) PICE;
(2) Philippine Institute of
Certified Public Accountants
(PICPA); and
(3) Confederation of Filipino
Consulting Organizations; and
b) The other observer shall come
from a non-government
organization (NGO).
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 591
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
a) Knowledge, experience or
expertise in procurement or in the
subject matter of the contract to
be bid;
b) Absence of actual or potential
conflict of interest in the contract
to be bid; and
c) Any other relevant criteria that
may be determined by the BAC.
13.3. Observers shall be invited
at least three (3) calendar days
before the date of the
procurement stage/activity. The
absence of observers will not
nullify the BAC proceedings,
provided that they have been
duly invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 592
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Commission on Audit
Republic of the Philippines Page 593
XIV. FAILURE OF BIDDING DECLARED BY THE HOPE
FOR THE PROCUREMENT OF CONSULTING SERVICES
A. AUDIT OBJECTIVE:
To verify if the conditions/requirements for the declaration of failure of bidding were adhered to by
the procuring entity
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 594
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
including any act which
restricts, suppresses or c. there was prima
nullifies or tends to facie evidence of
restrict, suppress or nullify collusion between
the BAC and any of
competition; the bidders?
or
c. the BAC is found to have or
failed in following the
prescribed bidding d. there was prima
procedures; facie evidence of
or collusion between
d. the award of the contract or among the
bidders themselves?
will not redound to the
benefit of the GOP, for Or
justifiable and reasonable
grounds such as: (i) if the e. there was prima
physical and economic facie evidence of
conditions have collusion between a
significantly changed so as bidder and a third
to render the project no party?
longer economically,
Or
financially, or technically
feasible, as determined by
f. there was prima facie
the Head of the Procuring evidence of any act
Entity; (ii) if the project is which restricted,
no longer necessary as suppressed or
determined by the Head of nullified competition?
the Procuring Entity; and
(iii) if the source of funds or
for the project has been
withheld or reduced
g. the BAC was found
through no fault of the
to have failed in
procuring entity. following the
prescribed bidding
Implementing Rules and Regulations procedures?
(IRR) of RA 9184, as amended on
September 2, 2009: or
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 595
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
tends to restrict, suppress or as determined by the
nullify competition; Head of the
b) If the BAC is found to have failed Procuring Entity?
in following the prescribed bidding
procedures; or Or
c) For any justifiable and reasonable
ground where the award of the i. the award of the
contract will not redound to the contract will not
benefit of the GOP, as follows: (i) redound to the
if the physical and economic benefit of the GOP,
conditions have significantly for justifiable and
changed so as to render the reasonable grounds
project no longer economically, such as the project is
financially, or technically feasible, no longer necessary
as determined by the Head of the as determined by the
Procuring Entity; (ii) if the project Head of the
is no longer necessary as Procuring Entity?
determined by the Head of the
Procuring Entity; and (iii) if the Or
source of funds for the project has
been withheld or reduced through j. the award of the
no fault of the procuring entity. contract will not
redound to the
benefit of the GOP,
for justifiable and
reasonable grounds
such as the source
of funds for the
project has been
withheld or reduced
through no fault of
the procuring entity?
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 596
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 597
ALTERNATIVE METHODS OF PROCUREMENT
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 598
On the Procurement Procedures:
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Prepared by:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 599
Procurement Procedures:
LIMITED SOURCE BIDDING FOR CONSULTING SERVICES
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Limited Source Bidding was in accordance with
the rules and regulations
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 600
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
48.2. In accordance with Section 10
of this IRR, as a general rule, the
Procuring Entities shall adopt public
bidding as the general mode of
procurement and shall see to it that
the procurement program allows
sufficient lead time for such public
bidding. Alternative methods shall be
resorted to only in the highly
exceptional cases provided for in this
Rule.
48.3. The method of procurement to
be used shall be as indicated in the
Approved Procurement Plan (APP). If
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
49.1. Limited Source Bidding,
otherwise known as selective bidding,
is a method of procurement of
consulting services that involves
direct invitation to bid by the
procuring entity from the list of pre-
selected consultants with known
experience and proven capability of
the requirements of the particular
contract. This alternative method of
procurement may be employed under
the following condition:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 601
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
approve Limited
Implementing Rules and Regulations Source Bidding as the
(IRR) of RA 9184, as amended on method of
September 2, 2009: procurement?
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 602
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
provided that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
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Commission on Audit
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Limited Source Bidding for Consulting Services
NOTE:
Since the requirement of regulations is for the Procuring Entity to prepare the
Bidding Documents including the Request for Expression of Interest (indicating
therein the method of procurement to be used) and the technical specifications, in
accordance with the procedures laid down in the IRR, the Generic Procurement
Manual and the Philippine Bidding Documents (PBDs), the audit pertaining to
Bidding Documents shall be as indicated in the Audit Guide for Bidding Documents in
Competitive/Public Bidding for Consulting Services.
Audit Criteria:
49.4. The BAC of the concerned procuring entity shall directly invite all the consultants
appearing in the pre-selected list. All other procedures for competitive bidding shall be
undertaken, except for the advertisement Request for Expression of Interest under Section
21.2.1 of the Revised IRR of RA 9184.
NOTE:
Since the requirement of regulations is for the Procuring Entity to conduct Pre-
Procurement Conference in accordance with the procedures laid down in the IRR,
the Generic Procurement Manual and the Philippine Bidding Documents (PBDs), the
audit pertaining to Pre-Procurement Conference shall be as indicated in the Audit
Guide for Pre-Procurement Conference in Competitive/Public Bidding for Consulting
Services.
Audit Criteria:
49.4. The BAC of the concerned procuring entity shall directly invite all the consultants
appearing in the pre-selected list. All other procedures for competitive bidding shall be
undertaken, except for the advertisement of Request for Expression of Interest under Section
21.2.1 of the Revised IRR of RA 9184.
NOTE:
Since the requirement of regulations is for the Procuring Entity to post the Request
for Expression of Interest in accordance with the procedures laid down in the IRR,
the Generic Procurement Manual and the Philippine Bidding Documents (PBDs), the
audit pertaining to posting of the Request for Expression of Interest shall be as
indicated in the Audit Guide for posting of the Request for Expression of Interest in
Competitive/Public Bidding for Consulting Services.
Audit Criteria:
49.4. The BAC of the concerned procuring entity shall directly invite all the consultants
appearing in the pre-selected list. All other procedures for competitive bidding shall be
undertaken, except for the advertisement of Request for Expression of Interest under Section
21.2.1 of the Revised IRR of RA 9184.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 604
Limited Source Bidding for Consulting Services
A. AUDIT OBJECTIVES
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
49.2. The pre-selected account
consultants shall be those appearing capabilities with
in a list maintained by the relevant respect to
government authority that has equipment?
expertise in the type of procurement
concerned. The list of pre-selected e. took into
consultants shall be updated account
periodically. A copy of the list shall capabilities with
be submitted to, and maintained respect to
updated with, the GPPB. financial
position?
49.3. The pre-selection shall be
based upon the capability and
resources of the bidders to perform
the contract taking into account their
experience and past performance on
similar contracts, capabilities with
respect to personnel, equipment or
manufacturing facilities, and
financial position. Pre-selection shall
be done in accordance with the
procedures provided in the GPMs.
2. To verify if the BAC sent 2. Compare the names of Did the BAC send
invitations to bid to all the consultants per copies of Request for
pre-selected consultants Request for Expression of Expression of
Interest duly received by Interest to all the
them with the consultants pre-selected
Implementing Rules and Regulations
in the list of pre-selected consultants?
(IRR) of RA 9184, as amended on
consultants.
September 2, 2009:
49.4. The BAC of the concerned
procuring entity shall directly invite
all the consultants appearing in the
pre-selected list.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 606
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Request for Expression of Interest
to the pre-selected consultants.
The Request for Expression of
Interest is sent to ALL
consultants in the list.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 607
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
4. To verify if the BAC 6. Ahead of any Did the BAC post
Secretariat post the Request procurement, request the the Request for
for Expression of Interest in BAC Secretariat for advance Expression of
any conspicuous place in the information on the first day Interest
of any posting. continuously at any
premises of the procuring
conspicuous place
entity for a period of 7 7. Conduct ocular reserved for the
calendar days prior to the inspection on the first day of purpose in the
opening of the bids posting. premises of the
procuring entity for
Implementing Rules and Regulations 8. Repeat the ocular 7 calendar days, as
(IRR) of RA 9184, as amended on inspections (may be at certified by the
September 2, 2009: random) during the 7-day head of the BAC
6.2. Once issued by the GPPB, the period to verify the postings. Secretariat of the
use of the Generic Procurement procuring entity?
Manuals (GPMs), Philippine Bidding 9. Request for the
Documents (PBDs), and other certification of the head of
standard forms shall be mandatory the BAC Secretariat
upon all Procuring Entities. However,
whenever necessary, to suit the
particular needs of the procuring
entity, modifications may be made,
particularly for major and specialized
procurement, subject to the
approval of the GPPB.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 608
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
b. validity of any payment to regard to instances of non-
be made on the basis of compliance.
the contract;
c. etc.
and develop appropriate NOTE:
audit recommendations Also refer to the
OFFENSES AND
Implementing Rules and
PENALTIES portion of
Regulations (IRR) of RA 9184, as
this Audit Guide.
amended on September 2, 2009:
Observers shall be invited at least
three (3) calendar days before the
date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
NOTE:
Since the requirement of regulations is for the Procuring Entity to undertake all
other procedures for competitive bidding shall be undertaken, except for the
advertisement of Request for Expression of Interest, the audit pertaining to other
phases/activities in Limited Source Bidding shall be as indicated in the Audit Guide
for Competitive/Public Bidding for Consulting Services.
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Commission on Audit
Republic of the Philippines Page 609
Audit Criteria:
49.4. The BAC of the concerned procuring entity shall directly invite all the consultants
appearing in the pre-selected list. All other procedures for competitive bidding shall be
undertaken, except for the advertisement of Request for Expression of Interest under Section
21.2.1 of the Revised IRR of RA 9184.
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of bid
securities may be dispensed with.
54.5. Performance and warranty securities, as prescribed in Sections 39 and 62 of this IRR,
shall be submitted for contracts acquired through the alternative methods of procurement,
except for Shopping under Section 52 and Negotiated Procurement under Sections 53.2
emergency cases), 53.9 (small value procurement), 53.10 (lease of real property), and 53.13
(UN agencies).
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Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 610
On the Procurement Procedures:
NEGOTIATED PROCUREMENT
OF CONSULTING SERVICES
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 611
Procurement Procedures:
NEGOTIATED PROCUREMENT OF CONSULTING SERVICES
AFTER TWO (2) FAILED BIDDINGS
Two Failed Biddings Where there has been failure of public bidding for the second time.
The Registry of Consultants is to be maintained and constantly updated by the Procuring Entity.
A. AUDIT OBJECTIVE
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Commission on Audit
Republic of the Philippines Page 612
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
b. validity of any payment to non-compliance.
be made on the basis of
the contract;
c. etc.
NOTE:
and develop appropriate Also refer to the
audit recommendations OFFENSES AND
PENALTIES portion of this
Implementing Rules and
Regulations (IRR) of RA 9184, as Audit Guide.
amended on September 2, 2009:
Observers shall be invited at least
three (3) calendar days before the
date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of this
Audit Guide.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 613
Negotiated Procurement of Consulting Services
After Two (2) Failed Biddings
Bidding documents are documents issued by the Procuring Entity to provide prospective bidders
all the necessary information that they need to prepare their bids.
A. AUDIT OBJECTIVE:
To verify if after the Procuring Entitys conduct of mandatory review due to two (2) failed biddings,
the Bidding Documents for the specific procurement followed the standard forms and manuals
prescribed by the Government Procurement Policy Board (GPPB)
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 614
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
adjusted ABC; and Did the BAC submit the
recommendation to the revised minimum technical
HOPE for approval. specifications to the HOPE
for approval?
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 615
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
evaluation conference?
methodology/criteria in
accordance with the Act, - Place of the pre-bid
and post-qualification, conference?
as well as the date, time - Deadline for submission
and place of the pre-bid of price quotations?
conference (where
applicable), submission - Place of submission of
of price quotations and price quotations?
opening of price
quotations; - Date of opening of
d.1. including: Following price quotations?
completion of the
- Time of opening of
negotiations, the BAC price quotations?
shall request all
suppliers remaining - Place of opening of
in the proceedings to price quotations?
submit on a specified
date, a best and final - following completion of
offer with respect to the negotiations,
all aspects of the requesting all suppliers
remaining in the
proposals, and
proceedings to submit
d.2. selection of the
on a specified date, a
successful offer on best and final offer with
the basis of such best respect to all aspects
and final offers of the proposals?
meeting the minimum
technical - selection of the
requirements and not successful offer on the
exceeding the ABC; basis of such best and
final offers meeting the
e. Scope of work, where
minimum technical
applicable;
requirements and not
f. Form of Price Quotation; exceeding the ABC?
h. Completion Schedule;
i. Form, Amount, and e. Scope of work?
Validity of Performance
Security and Warranty; f. Form Price Quotation?
1. Form of Contract and
General and Special g. Completion Schedule?
Conditions of Contract;
h. Form of Contract and
General and Special
Implementing Rules and Conditions of Contract?
Regulations (IRR) of RA 9184, as
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 616
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
amended on September 2, 2009: Are the Bidding Documents
17.1. The Bidding Documents in the required form:
shall be prepared by the
procuring entity following the a. Invitation to Bid?
standard forms and manuals
prescribed by the GPPB. b. Instructions to Bidders?
a. Approved Budget for the
Contract; c. Bid Data Sheet?
b. Request for Submission of
Price Quotation; d. General Conditions of the
c. Eligibility Requirements; Contract?
d. Instruction to Bidders,
including scope of bid, e. Special Conditions of
documents comprising the bid, Contract?
criteria for eligibility, bid
evaluation f. Schedule of
methodology/criteria in Requirements?
accordance with the Act, and
post-qualification, as well as g. Technical Specifications?
the date, time and place of the
pre-bid conference (where h. Bidding Forms?
applicable), submission of bids
and opening of bids;
e. Scope of work, where
applicable;
f. Plans/Drawings and Technical
Specifications;
g. Form of Bid, Price Form, and
List of Goods;
h. Completion Schedule;
i. Form, Amount, and Validity
Period of Bid Security;
[REVISED BY the Revised IRR of
RA 9184, item 54.4. Except for
Limited Source Bidding under
Section 49 of this IRR,
submission of bid securities may
be dispensed with.]
j. Form, Amount, and Validity of
Performance Security and
Warranty;
[Also per Revised IRR of RA
9184, Section 54.5.
Performance and warranty
securities, as prescribed in
Sections 39 and 62 of this
IRR,
shall be submitted for
contracts acquired through
the alternative methods of
procurement, except for
Shopping under Section 52
and Negotiated Procurement
under Sections 53.2
(emergency cases), 53.9
(small value procurement),
53.10 (lease of real property),
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Commission on Audit
Republic of the Philippines Page 617
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
and 53.13 (UN agencies).]
and
k. Form of Contract and General
and Special Conditions of
Contract.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 618
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars
of the
Answer
audit recommendations Also refer to the
OFFENSES AND
Implementing Rules and
PENALTIES portion
Regulations (IRR) of RA 9184,
of this Audit Guide.
as amended on September 2,
2009:
Observers shall be invited at
least three (3) calendar days
before the date of the
procurement stage/activity. The
absence of observers will not
nullify the BAC proceedings,
provided that they have
been duly invited in writing.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 619
Negotiated Procurement of Consulting Services
After Two Failed Biddings
The pre-procurement conference is the forum where all officials involved in the procurement
meet and discuss all aspects of a specific procurement activity, which includes the technical
specifications, the Approved Budget for the Contract (ABC), the applicability and appropriateness of the
recommended method of procurement and the related milestones, the bidding documents, and
availability of the pertinent budget release for the project.
A. AUDIT OBJECTIVES:
1. To verify if the Pre-Procurement Conference was conducted within the required time;
3. To verify if during the Pre-Procurement Conference the participants, led by the Bids and
Awards Committee (BAC), performed the required tasks and attained the objectives of the
Conference.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 620
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
(GPMs), Philippine Bidding Documents
(PBDs), and other standard forms shall
be mandatory upon all Procuring Entities.
However, whenever necessary, to suit
the particular needs of the procuring
entity, modifications may be made,
particularly for major and specialized
procurement, subject to the approval of
the GPPB.
2. To verify if the participants to 2. Secure from the BAC Did the participants to
the Pre-Procurement Conference Secretariat duly certified the Pre-Procurement
included the BAC, the copies of the documents Conference include
Secretariat, the unit or officials, (Office Orders, contracts, the:
Organizational/Functional
including consultants hired by
Charts, etc) which it used a. BAC?
the procuring entity, who as bases for identifying
prepared the Bidding Documents and notifying the b. Secretariat?
and the draft Request for participants to the Pre-
Submission of Price Quotation Procurement Conference, c. unit or officials who
including duly certified prepared the
Implementing Rules and Regulations copies of the notices Bidding
(IRR) of RA 9184, as amended on issued with evidence of Documents and
September 2, 2009: receipt by the the draft Request
20.1. The pre-procurement participants. for Submission of
conference shall be attended by the Price Quotation?
BAC, the Secretariat, the unit or 3. From the Minutes of
officials, including consultants hired by Pre-Procurement d. consultants hired
the procuring entity, who prepared the Conference look for the by the procuring
Bidding Documents and the draft names of the members of entity, who
Request for Submission of Price the BAC, the members of prepared the
Quotation, for each procurement. the Secretariat, the Bidding
officials and/or Documents and
consultants who prepared the draft Request
the Bidding Documents for Submission of
and the draft Request for Price Quotation?
Submission of Price
Quotation.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 621
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
3. To verify if during the Pre- 4. From the Minutes of Did the participants
Procurement Conference the Pre-Procurement led by the BAC
participants, led by the BAC, Conference look for discuss and confirm
performed the following tasks information on the the:
presentation of the scope
and attained the related of the contract, the ABC, a. Description of the
objectives: and contract duration, the scope of the
a. Discussed relevant deliberation thereon, and contract?
information and confirmed the the conclusions reached
as a result of the b. That there was no
description of the scope of the deliberation; and analyze splitting?
contract, the ABC, and contract if they led to the
duration; confirmation of the c. ABC?
description of the scope of
b. Discussed relevant the contract, that there d. Contract duration?
information and confirmed that was no splitting, the ABC,
the procurement is in accordance and the contract duration.
with the project procurement
management plan (PPMP) and
annual procurement plan (APP); 5. From the Minutes of Did the participants
Pre-Procurement led by the BAC
c. Discussed relevant Conference look for discuss and confirm
information and confirmed information on the that the procurement
readiness of the procurement at presentation of the review is in accordance with
hand on the following: of the PPMP and APP, the the PPMP and APP?
c.1. the availability of deliberation thereon, and
appropriations and the conclusions reached
as a result of the
programmed budget for
deliberation; and analyze
contract; if they led to the
c.2. completeness of the confirmation of the
Bidding Documents and their procurement is in
adherence to relevant general accordance with the PPMP
procurement guidelines; and APP.
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Prepared by:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 622
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
h. identified the justification for b. completeness of the c. adherence of the
the change in the mode of Bidding Documents Bidding
procurement from public bidding and their adherence to Documents with
to Negotiated Procurement and the Philippine Bidding the PBDs/
Documents (PBDs)/ customized
agreed on the recommendations customized Bidding Bidding
to the HOPE. Documents. Documents?
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 623
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
7.2. No procurement shall be adoption of the
undertaken unless it is in accordance procurement schedule
with the approved APP of the including deadlines and
procuring entity. The APP shall bear timeframes for the
the approval of the Head of the different activities.
Procuring Entity or second-ranking
official designated by the Head of the
Procuring Entity to act on his behalf,
and must be consistent with its duly
approved yearly budget.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 624
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
ABC shall be based on the budget
levels under the National
Expenditure Program (NEP)
submitted to Congress.
4.3. For specifically appropriated
projects, agencies can proceed with
the procurement activities prior to
issuance of the notice of award
using as basis the NEP figures.
4.4. For lump-sum appropriations and
Centrally Managed Items (CMIs)
under the agencys budget, the head
of the agency shall identify and
thereafter notify the implementing
units (IUs) of the amount allocated
for the projects they are to
implement. On the basis of said
notification, the heads of the
respective IUs, as procuring entities,
can proceed with the procurement
activities prior to issuance of the
notice of award.
4.5. For Multi-Year Projects (MYPs), for
which the initial funding sourced
from either the existing/current
years budget or the NEP is not
sufficient to cover the total cost of
the project, it is required that a
Multi-Year Obligational Authority
(MYOA) must already have been
issued in accord with DBM Circular
Letter 2004-012 prior to
commencement of any procurement
activity.
Thus, the MYOA shall be a pre-
requisite for procurement of a multi-
year contract. All procurement
activities should be within the total
project cost and categories reflected
in the MYOA issued by DBP for the
said MYP.
4.6. As prescribed under Section 47,
Chapter 8, Subtitle B, Title I, Book V
of the Administrative Code of 1987,
no contract involving the
expenditure of public funds shall be
entered into unless the proper
accounting official of the procuring
entity shall have certified as to the
availability of funds and the
allotment to which the expenditure
or obligation may be properly
charged.
Definition:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 625
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
3.1. Allotment - document issued by
the Department of Budget and
Management (DBM) which
authorizes an agency to incur
obligations for a specified amount
as contained in a legislated
appropriation. The allotment
issued may either be trough the
Agency Budget Matrix (ABM)
which covers the comprehensive
release of specifically appropriated
items in the agencys budget or
through the Special Allotment
Release Order (SARO).
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 626
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
3.3.3. In the case of GOCCs,
including government financial
institutions as well as LGUs, the ABC
represents the amount of fund
transfers which they receive from a
national government agency to
implement a program/project/activity.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 627
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
a. validity of the procurement recommendations.
activities and outputs
including the validity of the Also determine if
resulting contract; appropriate actions were
taken by the auditee in
b. validity of any payment to be regard to instances of
made on the basis of the non-compliance.
contract;
c. etc.
and develop appropriate audit NOTE:
recommendations Also refer to the
Implementing Rules and Regulations OFFENSES AND
(IRR) of RA 9184, as amended on PENALTIES portion
September 2, 2009: of this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 628
Negotiated Procurement of Consulting Services
After Two Failed Biddings
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement (Two-Failed Biddings)
was in accordance with the rules and regulations
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Prepared by:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 629
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
be used shall be as indicated in the
Approved Procurement Plan (APP). If
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 630
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
(IRR) of RA 9184, as amended on of this Audit Guide.
September 2, 2009:
Observers shall be invited at least
three (3) calendar days before the
date of the procurement stage/activity.
The absence of observers will not
nullify the BAC proceedings,
provided that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 631
Negotiated Procurement of Consulting Services
After Two Failed Biddings
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement (Two-Failed Biddings)
was in accordance with the rules and regulations
2. To verify if the BAC invited 2. Compare the names of Did the BAC invite
all consultants identified from the consultants to whom and engage in
the Registry (ies) and other invitations have been sent negotiations with a
bases adopted by the BAC for by the BAC (with evidence sufficient number
of receipt) with the list of of consultants?
the purpose
selected consultants.
Implementing Rules and Regulations
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 632
Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of the
Audit Criteria Answer
(IRR) of RA 9184, as amended on
September 2, 2009:
53.1.2. The BAC shall invite and
engage in negotiations with a
sufficient number of consultants
to ensure effective competition.
53.1.2.1.
53.1.2.2. All Procuring Entities
shall maintain a registry of
consultants as basis for
selecting the consultants for
negotiations.
3. To verify if the BAC posted 3. Ahead of any Did the BAC post
the Request for Submission of procurement, request the the Request for
Price Quotations BAC Secretariat for Submission of Price
continuously in the PhilGEPS advance information on Quotations
the first day of any continuously in
website and the website of posting. the:
the procuring entity
concerned, if available, for 7 4. On the first day of 1. PhilGEPS
calendar days starting on the posting access the website for 7
date of posting PhilGEPS website, the calendar days
website of the procuring starting on the
Implementing Rules and Regulations entity concerned, if date of
(IRR) of RA 9184, as amended on available. Print the page advertisement?
September 2, 2009: where the notice was
54.2. For alternative methods of posted (to form part of 2. website of the
procurement, advertisement and the audit evidences). procuring entity
posting as prescribed in Section concerned, if
21.2.1 of this IRR may be 5. Access the websites at available, for 7
dispensed with: Provided, random during the 7-day calendar days
however, That the BAC, through period to verify the starting on the
its Secretariat, shall post the postings. date of
invitation or request for advertisement?
submission of price quotations for OR
Shopping under Sections 52.1(b) From the printouts of the
and Negotiated Procurement web pages indicating the
under Sections 53.1 (two-failed dates of printing, obtained
biddings) and 53.9 (small value from and duly certified by
procurement) of this IRR in the the BAC Secretariat as
PhilGEPS website, the website of true and correct, compare
the procuring entity concerned, if these dates with the
available, and at any conspicuous required dates of posting.
place reserved for this purpose in
the premises of the procuring
entity for a period of seven (7)
calendar days.
4. To verify if the BAC posted 6. Ahead of any Did the BAC post
the Request for Submission of procurement, request the the Invitation to
Price Quotation continuously BAC Secretariat for Bid:
at any conspicuous place advance information on
the first day of any
reserved for the purpose in
posting. 1. continuously for
the premises of the procuring seven (7)
entity for 7 calendar days, as 7. Conduct ocular calendar days?
certified by the head of the
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 633
Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of the
Audit Criteria Answer
BAC Secretariat of the inspection on the first day
procuring entity of posting.
2. at the
Implementing Rules and Regulations 8. Repeat the ocular conspicuous
(IRR) of RA 9184, as amended on inspections (may be at place reserved
September 2, 2009: random) during the 7-day for the purpose
54.2. For alternative methods of period to verify the in the premises
procurement, advertisement and postings. of the procuring
posting as prescribed in Section entity?
21.2.1 of this IRR may be 9. Request for the
dispensed with: Provided, certification of the head of
however, That the BAC, through the BAC Secretariat. 3. as certified by
its Secretariat, shall post the the head of the
invitation or request for BAC Secretariat
submission of price quotations for of the procuring
Shopping under Sections 52.1(b) entity?
and Negotiated Procurement
under Sections 53.1 (two-failed
biddings) and 53.9 (small value
procurement) of this IRR in the
PhilGEPS website, the website of
the procuring entity concerned, if
available, and at any conspicuous
place reserved for this purpose in
the premises of the procuring
entity for a period of seven (7)
calendar days.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 634
Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of the
Audit Criteria Answer
2. To verify the causes of Analyze the instances of
instances of non-compliance non-compliances to Appropriate Audit Working Papers
and develop appropriate establish the cause(s) and
audit recommendations develop appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
NOTES:
1. Based on the following requirement of the Manual of Procedures for the
Procurement of Consulting Services Vol 4 published by the GPPB:
for the rest of the procurement procedures up to the award of the contract, the Audit
Guide on the Procedures: Competitive/Public Bidding are to be observed with
particular attention given to compliance by the BAC of the following provisions of
the Revised IRR of RA 9184 during bid evaluation up to award:
53.1.4. Following completion of the negotiations, the procuring entity shall request all
suppliers, contractors, or consultants remaining in the proceedings to submit, on a
specified date, a best and final offer with respect to all aspects of their proposals.
53.1.5. The procuring entity shall select the successful offer on the basis of such best and
final offers which should meet the procuring entitys minimum technical requirements and
should not exceed the ABC.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 635
2. Other relevant criteria
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of bid
securities may be dispensed with.
54.5. Performance and warranty securities, as prescribed in Sections 39 and 62 of this IRR,
shall be submitted for contracts acquired through the alternative methods of procurement,
except for Shopping under Section 52 and Negotiated Procurement under Sections 53.2
emergency cases), 53.9 (small value procurement), 53.10 (lease of real property), and 53.13
(UN agencies).
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 636
On the Procurement Procedures:
NEGOTIATED PROCUREMENT
OF CONSULTING SERVICES
EMERGENCY CASES
----------------------------------------------------------------------------------------------------------
Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 637
Procurement Procedures:
NEGOTIATED PROCUREMENT OF CONSULTING SERVICES
EMERGENCY CASES
Emergency Cases - In case of imminent danger to life or property during a state of calamity,
or when time is of the essence arising from natural or man-made calamities or other causes where
immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public
services, infrastructure facilities and other public utilities.
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement in Emergency Cases
was in accordance with the rules and regulations
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 638
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
53.2. Emergency Cases - In case or loss of life or
of imminent danger to life or property property, or to
during a state of calamity, or when restore vital public
time is of the essence arising from services,
natural or man-made calamities or infrastructure
other causes where immediate action facilities and other
is necessary to prevent damage to or public utilities?
loss of life or property, or to restore
vital public services, infrastructure
facilities and other public utilities.
2. To verify if the BAC validated 2. From the BAC Did the BAC validate
the justification for adoption of Resolution, look for the justification for
the alternative method of information on the adoption of the
BACs validation of the alternative method of
procurement: Negotiated
justification for procurement:
Procurement and through a
adoption of the Negotiated
Resolution recommended said alternative method of Procurement and
method to the HOPE for approval procurement: recommended said
Negotiated method to the HOPE
Implementing Rules and Regulations Procurement and for approval?
(IRR) of RA 9184, as amended on recommended said
September 2, 2009: method to the HOPE
for approval.
48.1. Subject to the prior approval of
the Head of the Procuring Entity, and
whenever justified by the conditions
provided in this Act, the procuring
entity may, in order to promote
economy and efficiency, resort to any
of the alternative methods of
procurement provided in this Rule. In
all instances, the procuring entity
shall ensure that the most
advantageous price for the
Government is obtained.
48.3. The method of procurement to
be used shall be as indicated in the
Approved Procurement Plan (APP). If
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
----------------------------------------------------------------------------------------------------------
Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 639
Audit Sub-objective Suggested Audit Working Paper
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 640
Audit Sub-objective Suggested Audit Working Paper
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
PENALTIES portion
of this Audit Guide.
NOTES:
1. Based on the following requirement of the Manual of Procedures for the Procurement of
Consulting Services Vol. 4 (June 2006) published by the GPPB:
for the rest of the procurement procedures up to the award of the contract, the Audit
Guide on the Procedures: Competitive/Public Bidding are to be observed.
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of bid
securities may be dispensed with.
54.5. Performance and warranty securities, as prescribed in Sections 39 and 62 of this IRR,
shall be submitted for contracts acquired through the alternative methods of procurement,
except for Shopping under Section 52 and Negotiated Procurement under Sections 53.2
emergency cases), 53.9 (small value procurement), 53.10 (lease of real property), and 53.13
(UN agencies).
----------------------------------------------------------------------------------------------------------
Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 641
On the Procurement Procedures:
NEGOTIATED PROCUREMENT
OF CONSULTING SERVICES
TAKE-OVER OF CONTRACTS
----------------------------------------------------------------------------------------------------------
Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 642
Procurement Procedures:
NEGOTIATED PROCUREMENT OF CONSULTING SERVICES
TAKE-OVER OF CONTRACTS
Take-over of contracts, which have been rescinded or terminated for causes provided for
in the contract and existing laws, where immediate action is necessary to prevent damage to or
loss of life or property, or to restore vital public services, infrastructure facilities and other public
utilities.
A. AUDIT OBJECTIVE
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 643
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
a. validity of the procurement recommendations.
activities and outputs
including the validity of the Also determine if
resulting contract; appropriate actions were
taken by the auditee in
b. validity of any payment to regard to instances of non-
be made on the basis of compliance.
the contract;
c. etc.
and develop appropriate NOTE:
audit recommendations Also refer to the
Implementing Rules and OFFENSES AND
PENALTIES portion of
Regulations (IRR) of RA 9184, as
this Audit Guide.
amended on September 2, 2009:
Observers shall be invited at least
three (3) calendar days before the
date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Prepared by:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 644
Negotiated Procurement of Consulting Services
Take-Over of Contracts
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement (Take-Over) was
in accordance with the rules and regulations
2. To verify if the BAC validated 2. From the BAC Resolution, Did the BAC validate
the justification for adoption of look for information on the justification for
the alternative method of the BACs validation of adoption of the
the justification for alternative method of
procurement: Negotiated
adoption of the procurement:
Procurement (Take-Over) and alternative method of Negotiated
through a Resolution procurement: Negotiated Procurement (Take-
recommended said method to the Procurement (Take-Over) Over) and
HOPE for approval and recommended said recommend said
method to the HOPE for method to the HOPE
Implementing Rules and Regulations approval. for approval?
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Prepared by:
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 645
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
(IRR) of RA 9184, as amended on
September 2, 2009:
48.1. Subject to the prior approval of
the Head of the Procuring Entity, and
whenever justified by the conditions
provided in this Act, the procuring
entity may, in order to promote
economy and efficiency, resort to any
of the alternative methods of
procurement provided in this Rule. In
all instances, the procuring entity
shall ensure that the most
advantageous price for the
Government is obtained.
48.3. The method of procurement to
be used shall be as indicated in the
Approved Procurement Plan (APP). If
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
3. To verify if the HOPE 3. From the BAC Resolution Did the HOPE
approved the alternative method recommending the approve Negotiated
of procurement: Negotiated negotiated procurement as Procurement as the
Procurement (Take-Over) an alternative method, look method of
for the approval of the procurement?
HOPE.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
48.3. The method of procurement to
be used shall be as indicated in the
Approved Procurement Plan (APP). If
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
----------------------------------------------------------------------------------------------------------
Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 646
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT
1. To verify the effects of Analyze the instances of
instances of non-compliance on non-compliance to establish Appropriate Audit Working Papers
the: the effects and develop
appropriate audit
a. validity of the procurement recommendations.
activities and outputs
including the validity of the Also determine if
resulting contract; appropriate actions were
taken by the auditee in
b. validity of any payment to be
regard to instances of non-
made on the basis of the compliance.
contract;
c. etc.
and develop appropriate audit
NOTE:
recommendations
Also refer to the
Implementing Rules and Regulations OFFENSES AND
(IRR) of RA 9184, as amended on PENALTIES portion of
September 2, 2009: this Audit Guide.
Observers shall be invited at least
three (3) calendar days before the
date of the procurement stage/activity.
The absence of observers will not
nullify the BAC proceedings,
provided that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 647
Negotiated Procurement of Consulting Services
Take-Over of Contracts
III. NEGOTIATION
A. AUDIT OBJECTIVE:
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Commission on Audit
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Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of the
Audit Criteria Answer
WHEN NEGOTIATION WITH THE SECOND HRB FOR THE PROJECT FAILED
1. When the negotiation with 1. From the Minutes of the When the
the second HRB failed, to BAC meetings, TWG negotiation with
verify if the BAC negotiated evaluation reports with the second HRB
the contract with the bidder supporting documents duly failed, did the BAC
reviewed by the BAC, look negotiate the
with the third highest rated for information on the contract with the
bid for the project under BACs negotiations. third highest rated
consideration at the bidders bid at the bidders
original bid price original price?
53.3. NOTES:
WHEN NEGOTIATION WITH THE THIRD HRB FOR THE PROJECT FAILED
1. To verify if the BAC used 1. From the Minutes of the Did the BAC use
the Procuring Entitys registry BAC meetings, TWG the Procuring
of consultants under the type evaluation reports Entitys registry of
of contract/project where the supported with copies of consultants who
the Procuring Entitys have been
subject contract falls as basis
Registry of Consultants, classified under the
for preparing the shortlist of look for information on the type of
consultants to be invited for basis of identification of the contract/project
the negotiations consultants to be invited for where the subject
the negotiations and the contract falls, as
Implementing Rules and Regulations shortlist of identified one of the bases
(IRR) of RA 9184, as amended on consultants. for selecting the
September 2, 2009: consultants to be
invited for the
53.3. negotiations?
53.3.1.
53.3.2. If negotiation fails, then
negotiation shall be done with
the third highest rated bidder at
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Republic of the Philippines Page 649
Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of the
Audit Criteria Answer
his original price. If the Did the BAC arrive
negotiation fails again, a short at the shortlist of
list of at least three (3) eligible consultants to be
contractors shall be invited to invited using the
submit their bids, and criteria and
negotiation shall be made procedures as
starting with the highest rated agreed during the
bidder. meetings
conducted for the
53.1.2.2. All Procuring Entities purpose?
shall maintain a registry of
contractors as basis for selecting
the consultants for negotiations.
2. To verify if the BAC invited 2. Compare the names of Did the BAC invite
the shortlisted consultants to the consultants to whom the shortlisted
submit their bids invitations have been sent consultants to
by the BAC (with evidence submit their bids?
Implementing Rules and Regulations of receipt) with the
(IRR) of RA 9184, as amended on consultants in the shortlist.
September 2, 2009:
53.3.2. If negotiation fails, then
negotiation shall be done with
the third lowest calculated/
highest rated bidder at his
original price. If the negotiation
fails again, a short list of at least
three (3) eligible contractors
shall be invited to submit their
bids, and negotiation shall be
made starting with the highest
rated bidder.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 650
Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of the
Audit Criteria Answer
a. validity of the procurement recommendations.
activities and outputs
including the validity of the Also determine if
resulting contract; appropriate actions were
taken by the auditee in
b. validity of any payment to regard to instances of non-
be made on the basis of compliance.
the contract;
c. etc.
and develop appropriate NOTE:
audit recommendations Also refer to the
Implementing Rules and OFFENSES AND
PENALTIES portion of
Regulations (IRR) of RA 9184, as
this Audit Guide.
amended on September 2, 2009:
Observers shall be invited at least
three (3) calendar days before the
date of the procurement
stage/activity. The absence of
observers will not nullify the
BAC proceedings, provided
that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Commission on Audit
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NOTES:
for the rest of the procurement procedures up to the award of the contract, the
Audit Guide on the Procedures: Competitive/Public Bidding are to be observed.
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
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Commission on Audit
Republic of the Philippines Page 652
On the Procurement Procedures:
NEGOTIATED PROCUREMENT
OF CONSULTING SERVICES
ADJACENT OR CONTIGUOUS
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Procurement Procedures:
NEGOTIATED PROCUREMENT OF CONSULTING SERVICES
ADJACENT OR CONTIGUOUS
A. AUDIT OBJECTIVE:
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
g. the consultant has no e. the consultant uses d. it is within the
negative slippage/delay; the same prices or contracting
h. the negotiations for the lower unit prices capacity of the
as in the original consultant?
procurement are commenced
contract less
before the expiry of the
mobilization cost; e. the consultant uses
original contract. f. the amount the same prices or
involved does not lower prices as in
Implementing Rules and Regulations exceed the the original
(IRR) of RA 9184, as amended on amount of the contract?
September 2, 2009: ongoing project;
g. the consultant has f. the amount
53.4. Adjacent or Contiguous. Where
no negative involved does not
the subject contract is adjacent or
slippage/delay, exceed the
contiguous to an on-going Infrastructure
h. the negotiations amount of the
Project or Consulting Service where the
for the ongoing project?
consultants have unique experience and
procurement are
expertise to deliver the required service:
commenced g. the consultant has
Provided, however, That (a) the original
before the expiry no negative
contract is the result of a Competitive
of the original slippage/delay?
Bidding; (b) the subject contract to be
contract.
negotiated has similar or related scopes
h. the negotiations
of work; (c) it is within the contracting
for the
capacity of the consultant; (d) the
procurement are
consultant uses the same prices or lower
commenced
unit prices as in the original contract less
before the expiry
mobilization cost; (e) the amount
of the original
involved does not exceed the amount of
contract?
the ongoing project; and (f) the
consultant has no negative slippage/
delay: Provided, further, That
negotiations for the procurement are
commenced before the expiry of the
original contract.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 655
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
of the alternative methods of
procurement provided in this Rule. In
all instances, the procuring entity
shall ensure that the most
advantageous price for the
Government is obtained.
48.3. The method of procurement to
be used shall be as indicated in the
Approved Procurement Plan (APP). If
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 656
Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
resulting contract; Also determine if
appropriate actions
b. validity of any payment to be were taken by the
made on the basis of the auditee in regard to
contract; instances of non-
c. etc. compliance.
and develop appropriate audit
recommendations
Implementing Rules and Regulations NOTE:
(IRR) of RA 9184, as amended on Also refer to the
September 2, 2009: OFFENSES AND
PENALTIES
Observers shall be invited at least portion of this
three (3) calendar days before the
Audit Guide.
date of the procurement stage/activity.
The absence of observers will not
nullify the BAC proceedings,
provided that they have been duly
invited in writing.
Also determine if
appropriate actions
were taken by the
auditee in regard to
instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this
Audit Guide.
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Negotiated Procurement of Consulting Services
Adjacent or Contiguous
II. NEGOTIATION
A. AUDIT OBJECTIVE:
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Suggested Audit Working Paper
Audit Sub-objective Audit Activities Audit Question Yes No Particulars of
Audit Criteria the Answer
That negotiations for the
procurement are commenced before
the expiry of the original contract.
NOTES:
for the rest of the procurement procedures, the Audit Guide on the Procedures:
Competitive/Public Bidding are to be observed.
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 659
On the Procurement Procedures:
NEGOTIATED PROCUREMENT
OF CONSUTING SERVICES
AGENCY-TO-AGENCY
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Commission on Audit
Republic of the Philippines Page 660
Procurement Procedures:
NEGOTIATED PROCUREMENT OF CONSULTING SERVICES
AGENCY-TO-AGENCY
For purposes of this Section 53.5 of the Revised IRR of RA 9184, the term agency
excludes GOCCs incorporated under Batas Pambansa Blg. 68, otherwise known as the
Corporation Code of the Philippines. The GPPB shall issue guidelines to implement this provision
NOTE: No Audit Guide has been developed for this method of procurement
since this involves Government-to-Government transactions and in the
absence of GPPB Guidelines.
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Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 661
On the Procurement Procedures:
NEGOTIATED PROCUREMENT
OF CONSULTING SERVICES
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Procurement Procedures:
NEGOTIATED PROCUREMENT OF CONSULTING SERVICES
HIGHLY TECHNICAL CONSULTANTS
Highly Technical Consultants - Individual consultants hired to do work that is (i) highly
technical or proprietary; or (ii) primarily confidential or policy determining, where trust and
confidence are the primary consideration for the hiring of the consultant: Provided, however, That
the term of the individual consultants shall, at the most, be on a six month basis, renewable at the
option of the appointing Head of the Procuring Entity, but in no case shall exceed the term of the
latter. [AS AMENDED UNDER GPPB RESOLUTION NO. 06-2009 DATED 30 SEPTEMBER 2009]
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement (Highly Technical
Consultants) was in accordance with rules and regulations
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
where trust and confidence are the
primary consideration for the hiring of
the consultant: Provided, however,
That the term of the individual
consultants shall, at the most, be on a
six month basis, renewable at the
option of the appointing Head of the
Procuring Entity, but in no case shall
exceed the term of the latter.
2. To verify if the Head of the 2. From the Did the Head of the
Procuring Entity hired appointment/job Procuring Entity hire
the individual consultants for a order/contract (including the individual
renewals, if any) of the consultants for a term
term of at most six months,
individual consultant look of at most six
renewable at the option of the if the term does not months?
appointing Head of the Procuring exceed six (6) months.
Entity, and shall not exceed the
term of the Head of the Procuring
Entity 3. Compare the last day Did the term of the
of the term of the consultant within the
Implementing Rules and Regulations consultant with the last term of the Head of
(IRR) of RA 9184, as amended on day of the term of the the Procuring Entity?
September 2, 2009: Head of the Procuring
Entity.
53.7. Highly Technical Consultants. In
the case of individual consultants hired
to do work that is (i) highly technical
or proprietary; or (ii) primarily
confidential or policy determining,
where trust and confidence are the
primary consideration for the hiring of
the consultant: Provided, however,
That the term of the individual
consultants shall, at the most, be on a
six month basis, renewable at the
option of the appointing Head of the
Procuring Entity, but in no case shall
exceed the term of the latter.
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Commission on Audit
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars of
Audit Criteria
the Answer
c. etc. NOTE:
Also refer to the
and develop appropriate audit
OFFENSES AND
recommendations
PENALTIES portion
Implementing Rules and Regulations of this Audit Guide.
(IRR) of RA 9184, as amended on
September 2, 2009:
Observers shall be invited at least
three (3) calendar days before the
date of the procurement stage/activity.
The absence of observers will not
nullify the BAC proceedings,
provided that they have been duly
invited in writing.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
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Commission on Audit
Republic of the Philippines Page 665
On the Procurement Procedures:
NEGOTIATED PROCUREMENT
OF CONSULTING SERVICES
SMALL-VALUE PROCUREMENT
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Commission on Audit
Republic of the Philippines Page 666
Procurement Procedures:
NEGOTIATED PROCUREMENT OF CONSULTING SERVICES
SMALL-VALUE PROCUREMENT
Small-Value Procurement - Where the amount of procurement does not exceed the
thresholds prescribed in Annex H of the IRR, RA 984, the procuring entity shall draw up a list of
at least three (3) consultants of known qualifications which will be invited to submit proposals.
a) For NGAs, GOCCs, GFIs, and SUCs, Five Hundred Thousand Pesos (P500,000).
A. AUDIT OBJECTIVE:
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
1. To verify if the BAC validated: 1. From the evaluation Did the BAC validate
a. that the original mode of report with supporting that the original mode
procurement per APP was documents and minutes of procurement per
public bidding but cannot be of the BACs meetings APP was public
and relevant BAC bidding but cannot be
ultimately pursued; Resolution(s), look for ultimately pursued?
and, information on the BACs
b. the existence of the conditions validation that the
to justify Small-Value original mode of Did the BAC validate
Procurement and the amount procurement per APP the existence of the
involved did not exceed the was public bidding but conditions to justify
thresholds in Annex H of the cannot be ultimately Small-Value
Revised IRR of RA 9184. pursued and of the Procurement?
existence of the
Implementing Rules and Regulations conditions to justify Or
(IRR) of RA 9184, as amended on Small-Value b. the amount
September 2, 2009: Procurement. involved did not
exceed the
48.3. The method of procurement to thresholds in
be used shall be as indicated in the Annex H of the
Approved Procurement Plan (APP). If Revised IRR of RA
the original mode of procurement 9184?
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
2. To verify if the BAC: 2. From the BAC Resolution Did the BAC
a. recommended the alternative recommending Small-Value recommend the
mode of procurement: Small Procurement as the method alternative mode of
Value Procurement to the of procurement, look for procurement: Small-
the approval of the HOPE. Value Procurement to
HOPE,
the HOPE?
and
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
b. the HOPE approved the
alternative method of Did the HOPE
procurement approve Small-Value
Procurement as the
method of
Implementing Rules and Regulations
procurement?
(IRR) of RA 9184, as amended on
September 2, 2009:
48.3. The method of procurement to
be used shall be as indicated in the
Approved Procurement Plan (APP). If
the original mode of procurement
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
Also determine if
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Suggested Audit Working Paper
Audit Sub-objective
Audit Activities Audit Question Yes No Particulars
Audit Criteria of the
Answer
appropriate actions were
taken by the auditee in
regard to instances of non-
compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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NEGOTIATED PROCUREMENT OF CONSULTING SERVICES
SMALL-VALUE PROCUREMENT
A. AUDIT OBJECTIVE
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
c. any conspicuous place in (to form part of the audit b. the website of
the premises of the evidences). the procuring
procuring entity entity for a
for a period of 7 calendar 4. Conduct ocular inspection period of 7
on the schedule of posting. calendar days?
days
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
to the RFQ, their corresponding Did the
price quotations, and the procurement unit
highest rated offer submitted. of the Procuring
Entity determine
the highest rated
offer?
1. . . .
2. . . .
3. Procedural Guidelines
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
i. For information purposes, all
awards shall be posted in the
PhilG-EPS website, website of
the procuring entity, if available,
and at any conspicuous place
reserved for this purpose in the
premises of the procuring entity
except for those with ABCs
equal to Fifty Thousand Pesos
(Php 50,000.00) and below.
NOTE:
Also refer to the
OFFENSES AND
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Republic of the Philippines Page 674
Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
PENALTIES portion of
this Audit Guide.
Other criteria:
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
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ON OFFENSES AND
SANCTIONS / PENALTIES
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ON OFFENSES AND SANCTIONS/PENALTIES
A. AUDIT OBJECTIVES
1. To verify if the Head of the Procuring Entity initiated the conduct of investigation and
recommended the imposition of sanctions/ penalties to both the public officials and private
individuals who did not comply with the provisions of the procurement law
2. To verify if the Head of the Procuring Entity exercised his power judiciously
c. Unduly influencing or
exerting undue pressure on
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
c.1 any member of the
BAC or
c.2 any officer or
employee of the
procuring entity
d. Splitting of contracts
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
2. To Verify if the HOPE 2. Consolidate the offenses
conducted investigation and committed by private individuals Appropriate Audit Working Papers showing
recommended the imposition with any official of the Procuring the Consolidated List of Offenses and
of sanctions/ penalties to Entity mentioned in: possible sanctions/penalties, with
Audit Observation
private individuals and any information on the actions taken by the
Memoranda,
public officer conspiring with reports/comments of Procuring Entity
them, for any of the following observers,
violations: certified copies of project
monitoring reports prepared Did the HOPE
a. submission of falsified by the BAC as approved and initiate the conduct
eligibility documents, submitted by the HOPE to of investigation?
the GPPB,
relevant reports of the BAC,
b. submission of bids that
and Did the HOPE
contained false information, monitoring reports of the recommend the
TSO, GPPB. imposition of
c. participating in public penalty (ies)?
bidding using the name of 2. Identify the sanctions for the
another, offenses.
f. refusing to accept an
award and to enter into
contract , after he had been
adjudged as the LCRB/HRRB,
h. termination of the
contract,
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
least three (3) times within a
year.
l. attempt by a bidder to
unduly influence the outcome
of the bidding in his favor.
a) Submitting eligibility
requirements of whatever kind
and nature that contain false
information or falsified documents
calculated to influence the
outcome of the eligibility screening
process or conceal such
information in the eligibility
requirements when the
information will lead to a
declaration of ineligibility from
participating in public bidding.
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Commission on Audit
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
submission of requirements such
as, but not limited to,
performance security, preparatory
to the final award of the contract.
a) Submission of eligibility
requirements containing false
information or falsified documents.
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
receipt of the request for
clarification.
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
the contract in the following objectives and
situations: criteria.
Otherwise, he/she
a) If there is prima facie evidence may recommend a
of collusion between appropriate fraud or
public officers or employees of the performance audit
procuring entity, or between the to the proper COA
BAC and any of the bidders, or if Office.
the collusion is between or among
the bidders themselves, or
between a bidder and a third
party, including any act which
restricts, suppresses or nullifies or
tends to restrict, suppress or
nullify competition;
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
persons within the third civil
degree of consanguinity or affinity
shall automatically disqualify the
bidder from participating in the
procurement of contracts of the
procuring entity. On the part of
the bidder, this provision shall
apply to the following persons:
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Audit Sub-objective Suggested Audit Working Paper
Audit Criteria Audit Activities Audit Question Yes No Particulars of
the Answer
Services Volume 4, June 2006,
published by the GPPB:
How is a contract awarded?
5. In case of disapproval of
the recommendation of award
the HOPE shall state the reasons
for disapproval and instruct the
BAC on the subsequent actions
to be adopted.
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Prepared by:
Technical Services Office GUIDE IN THE AUDIT OF PROCUREMENT
Special Services Sector First Update - December 2009
Commission on Audit
Republic of the Philippines Page 685