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BIDDING

PROCESS
Based on the IRR (RA 9184)
GENERAL MODE OF PROCUREMENT

Procurement is done through


Competitive Bidding (Sec. 10 RA 9184;
NPM 67-2012)

Exception: Alternative Methods of


Procurement.
Preparation
of Bidding THE BIDDING PROCESS
Documents

Pre- Pre-Bid
Procurement Advertisement Conference
Conference

Opening of
Opening of
Submission 1st Envelope -
2nd Envelope -
of Bids Eligibility
Financial
Docs & Technical
Proposal
Proposal

Bid Post
Evaluation Qualificati Contract
& Ranking on Award
CONTRACT IMPLEMENTATION
GUIDELINES FOR THE
PROCUREMENT OF GOODS,
SUPPLIES AND MATERIALS
AMENDMENT TO
ORDER
Issued at any time by the procuring entity in
cases of:

1. Emergency
2. Fortuitous event
REASONS FOR ISSUING:
1. Necessary adjustments within the general scope
of the contract in any one or more of the
following:
a) drawings, design or specifications (if specifically
manufactured for Government)
b) method of shipment or packing; or
c) place of delivery.

2. Additional items needed and necessary for the


SUSPENSION OF
WORK

PE may suspend the work wholly or partly


by written order for a certain period of
time due to force majeure or fortuitous
events.

When the suspension order is lifted, or if


the period of the order expires, the
supplier or consultant shall resume work.
LIQUIDATED
DAMAGES
When bidder fails to perform obligations
within specified schedule, inclusive of
duly granted time extensions, he shall be
liable for damages and shall pay the PE
liquidates damages.

Bidder shall pay an amount equal to 1/10


of 1% of the cost of the cost of delayed
goods scheduled for delivery for every
day of delay until such goods are finally
delivered and accepted by the procuring
entity.
Whichever is convenient to the
procuring entity, amount shall be
deducted from:
1. any money due or which may become due to
the supplier, or
2. collected from any securities or warranties
posted by the supplier,

Ifsum of liquidated damages reach


10% of the contract amount, PE shall
automatically rescind the contract.
ADVANCE PAYMENT
Made only after prior approval of the
President.
Single advance payment not to exceed
50% of the contract for the following
services:
Hotel and restaurant services
Use of conference/seminar and exhibit areas
Lease of office space

Advance payment not to exceed 15%


allowed to address contingencies arising
from natural or man-made calamities in
For goods, 15% of the contract price shall
be paid within 60 days from signing of
contract and upon submission of a claim
and a bank guarantee. (Amended by M.O.
15, series of 2011)

NOTE: Progress payments shall first be


charged against the advance payment
until the latter is fully exhausted.
(UNLESS otherwise approved by the
President)
END
PREPARATION OF BIDDING
DOCUMENTS
Persons Involved Functions
prepared the Bidding Documents
and the draft invitation to bid.
conduct pre-procurement and
pre-bid conferences
BAC
determine the eligibility of
prospective bidders
receive and open bids
conduct the evaluation of bids
conduct engineering
investigations,surveys and
designs.
HoPE approve Infrastructure Projects
based on the standards and
specifications prescribed by the
HoPE.
gives authority or permit to
enter to some case of projects
Property Owner
with pending acquisition of right
of way

PREPARATION OF BIDDING DOCUMENTS


The Bidding Documents shall include the following:
a.) Approved Budget for the Contract
b.) Invitation to Bid/Request for Expression of Interest
c.) Eligibility Requirements
d.) Instructions to Bidders
e.) Terms of Reference, for Consulting Services
f.) Scope of work, where applicable
g.) Plans/Drawings and Technical Specifications
h.) Form of Bid, Price Form, and List of Goods or Bill of
Quantities
i.) Delivery Time or Completion Schedule
j.) Form, Amount, and Validity Period of Bid Security
k.)Form, Amount, and Validity of Performance Security
and Warranty
l.) Form of Contract and General and Special
Conditions of Contract PREPARATION OF BIDDING DOCUMENTS
Bidders may be asked to pay a fee to recover the
cost for the preparation and development of the
Bidding Documents
Approved Budget for Maximum cost of
the Contract Bidding Document
Php 500,000.00 & Below Php 500.00

> 500,000.00 to 1M Php 1,000.00

> 1M to 5M Php 5,000.00

> 5M to 10M Php 10,000.00

>10M to 50M Php 25,000.00

>50M to 500M Php 50,000.00

>500M Php 75,000.00

PREPARATION OF BIDDING DOCUMENTS


The Procuring Entity shall post the complete
Bidding Documents at its website and the
PhilGEPS website from the time the Invitation
to bid is advertised. Bidding Documents may
be downloaded from any of the said websites
or from the BAC Secretariat upon payment of
fee, if required.

PREPARATION OF BIDDING DOCUMENTS


PRE-PROCUREMENT
CONFERENCE
Purpose: Determine readiness to proceed with the
bidding process.

Attended by the following:


a.BAC
b.BAC Secretariat
c.Consultants
d.Other officials

. Mandatory for the procurement of Goods with ABC


above Php 2M
COSTS:
Procurement of Goods - 2,000,000 and Below
Procurement of Infrastructure Projects -
5,000,000 and Below
Procurement of Consulting Services -
1,000,000 and Below
PRE-PROCUREMENT CONFERENCE
CONTENTS OF THE INVITATION TO BID
Procurement of Goods, Infrastructure
Projects and Consulting Services.
Name of Project, Identification and number
of lots for bidding.
The date, time and place of the deadline
for submission and receipt of eligibility
requirements
ABC for project, lot or item to be bid
Source of Funding
Place, Time and Website where the bidding
documents may be secured or downloaded
Contract duration or schedule
PRE-PROCUREMENT CONFERENCE
ADVERTISING AND POSTING OF
INVITATION TO BID
Posted at any noticeable place for 7 days

Advertised at least once in 1 newspaper of general


nationwide circulation which is published regularly for
at least 2 years before issuance of advertisement.

To be a newspaper of general nationwide circulation, it is enough that


it is published for the dissemination of local news and general
information, that it has a bona fide subscription list of paying
subscribers, and that it is published at regular intervals. Over and
above all these, the newspaper must be available to the public in
general, and not just to a select few chosen by the publisher. (Efren L.
Alvarez vs. People of the Philippines; G.R. No. 192591; June 29, 2011)

PRE-PROCUREMENT CONFERENCE
ADVERTISEMENT/POSTING OF
THE INVITATION TO BID
Importance:
Signals the start of the bidding
process. Procurement process should
be made within 3 months starting
from posting and advertisement until
awarding of contract. (Sec. 38.1 IRR)

Signals the availability of the bidding


documents to the prospective bidders.
(if not mentioned in the Invitation to
Bid) (Sec. 17.3 IRR)

ADVERTISEMENT
regularly published for at least two (2) years
before advertisement date.

Posted continuously for 7 calendar days


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

Not required for projects with ABC of 2M and


below.

ADVERTISEMENT
2M and
Medium Above 2M
below
Newspaper of General
Nationwide Circulation
PhilGEPS website
PEs Website, if
available
Conspicuous Place
Website prescribed by
the foreign
government/foreign or
international funding
institution, in case of ADVERTISEMENT
PRE-BID
CONFERENCE
Pre-Bid Conference shall be held at least 12
calendar days before the deadline for submission
of bids, but not earlier 7 calendar days.

The Pre-Bid Conference shall discuss the


eligibility requirements and the technical and
financial components of contract to be bid.

The minutes of pre-bid conference shall be


recorded and prepared not later than 5 calendar
days after pre-bid conference.

Mandatory for projects with ABC of 1M or more

PRE-BID CONFERENCE
Section 22 affords bidders the
opportunity to raise concerns or
clarifications on the requirements, terms,
conditions, and specifications stipulated
in the bidding documents for the contract
to be bid.

Questions or clarifications pertaining to


the matters that may be discussed during
the pre-bid conference must be raised at
least ten (10) calendar days before the
deadline set for the submission and
receipt of bids. (NPM 49-2013)

PRE-BID CONFERENCE
PhP1 Million, in order to afford prospective
bidders the opportunity to inquire on or
clarify any of the requirements, terms,
conditions, and specifications stipulated in
the Bidding Documents.

Failure to conduct a pre-bid conference for


the Project amounts to a violation of a
mandatory provision of law, which will
render the procurement activity void under
Article 5 of the Civil Code of the Philippines.
(NPM 48-2013)

PRE-BID CONFERENCE
CLARIFICATION OF BIDDING
DOCUMENTS
Supplemental/Bid Bulletins issued by BAC
to answer requests for clarification (query
submitted 10 c.d. before deadline) or
interpretation, and upon BACs initiative to
clarify or modify any provision of Bidding Docs.
(at least 7 c.d. before deadline for bids).

Posted in PhilGEPS and PEs website

Bidders who have submitted bids before


issuance of Supplemental/Bid Bulletin must be
informed in writing and allowed to modify or
withdraw their respective bids

PRE-BID CONFERENCE
22.5.2 RA 9184 IRR allows PEs to issue
Supplemental/Bid OFBulletins
CLARIFICATION BIDDINGupon their
initiative for the purpose of clarifying or
DOCUMENTS
modifying any provision in the Bidding
Documents, including the IB.

PE has the authority to revise or amend any


statement in the Bidding Documents,
including the IB, specifically when such
revision or amendment is made for the
purpose of clarifying or modifying its
provisions.

Supplemental/Bid Bulletins must be posted in


the PhilGEPS and at the PEs website, in order
to address aspects of competition and
transparency. (NPM 46-2013)
PRE-BID CONFERENCE
winning bidder to submit or comply with
requirements not
ADDITIONAL initially provided in the Bidding
REQUIREMENTS
Documents or through any Supplemental/Bid
Bulletin issued by the PE for the project that
must be posted at the PhilGEPS and the PEs
website.

If no Supplemental/Bid Bulletin is issued to


reflect changes in the Bidding Documents, or
even if the same was issued but not posted at
the PhilGEPS and PEs websites, the original
provisions contained in the Bidding Documents
remain and the prospective bidder, including the
winning bidder cannot be compelled to abide or
comply with the changes made by the PE. (NPM
24-2013)
PRE-BID CONFERENCE
SUBMISSION AND RECEIPT OF
BIDS
and Technical Component
2nd Envelope Financial Component

Submitted to the BAC on the date, time,


and place specified in the Invitation to
Bid. Bids submitted after the deadline
should not be accepted.

Date of submission should not be later


than the following period from the last
day of posting of the Invitation to Bid.

SUBMISSION AND RECEIPT OF BIDS


Bidders are no longer required to submit a
written LOI together with their application
for eligibility as previously required in IRR
Part A of RA 9184.

Bidders only have to submit their bids not


later than the deadline for the submission
and receipt of bids, which can be extended
or rescheduled together with the opening
of bids as provided in Section 29 of the IRR
of RA 9184. (NPM 55-2013)

SUBMISSION AND RECEIPT OF BIDS


The practice of pre-qualification has been
abandoned in RA 9184 and its IRR. the
results of a pre-qualification have no legal
force and effect, bearing or weight, and
cannot preempt the findings of the BAC
during the preliminary examination of bids
conducted during the opening of bids. Hence,
a bidder may still be declared ineligible
during the opening of bids despite a finding
of qualification during the purported pre-
qualification exercise. (NPM 54-2013)

SUBMISSION AND RECEIPT OF BIDS


Procuring entity cannot validly and legally
refuse to accept a bid submitted before
the deadline for the submission indicated
the Invitation to Bid or Request for
Quotation.

This shall open a ground for the aggrieved


bidder to file a request for reconsideration
and, subsequently, protest as provided in
Section 55 of RA 9184 and its IRR, without
prejudice to the institution of civil,
administrative and/or criminal actions
against the erring officials under
applicable laws and rules. (NPM 67-2013)

SUBMISSION AND RECEIPT OF BIDS


OPENING AND EVALUATION
OF 1ST ENVELOPE
CONTENTS:
1. Eligibility requirements
2. Bid Security
3. Technical specifications
4. Omnibus sworn statement
Non-inclusion in blacklist
Authenticity of documents
Verification authority
Signatorys authority
Disclosure of relations
Responsibilities of bidders
Labor laws and standards
Non-payment (directly or indirectly) any
commission, amount, fee, or any form of
consideration in relation to any
procurement project or activity
OPENING AND EVALUATION OF 1ST ENVELOPE
examination of bids be conducted by
merely checking for the presence or
absence of documentary requirements
using a non-discretionary pass/fail
criterion.

However, the BAC has the right to review


the qualifications of a bidder during the
same stage if it has reasonable grounds
to believe that a misrepresentation has
been made or there has been changes in
the bidders capability to undertake the
project. (NPM 54-2013)

OPENING AND EVALUATION OF 1ST ENVELOPE


BAC should open a reconsidered bid under
the same circumstances as it opened the
bids that were not disqualified, i.e., upon
a duly scheduled opening of bid with
proper notices to the concerned entities.
(NPM 69-2013)

OPENING AND EVALUATION OF 1ST ENVELOPE


ELIGIBILITY REQUIREMENTS 41

Class A Documents
1.DTI/SEC/CDA Registration
2.Mayors permit
3.Tax clearance per Executive Order 398, series
of 2005, as finally reviewed and approved by the
BIR.
4.Statement of ongoing contracts.
5.Statement of SLCC
6.Audited financial statement
Class B Document
7.NFCC
JVA or notarized statement from the partners
that they will enter into joint venture if
awarded the contract.
OPENING AND EVALUATION OF 1ST ENVELOPE
MAYORS PERMIT
Mayors Permit allows an entity to legally
perform the requirements and obligations of the
project and the resultant contract.

It is therefore necessary for the BAC to


determine whether the Mayors Permit for
construction business issued to the construction
company likewise authorizes it to engage in the
business of supplying dump trucks. (NPM 36-
2013)

OPENING AND EVALUATION OF 1ST ENVELOPE


TAX CLEARANCE
Tax Clearance is now included as part of the
Class A legal eligibility documents to be
submitted during the opening of bids. (GPPB
Resolution No.21-2013)
EO 398 specifically requires the submission of
Tax Clearance issued by the BIR. It refers to the
clearance issued by the Collection Enforcement
Division of BIR attesting that the bidder has no
outstanding Final Assessment Notice and/or
delinquent account.

Hence, submission of tax clearance of the


previous year and application for tax clearance
cannot be considered as compliance. (NPM 02-
2013) OPENING AND EVALUATION OF 1 ENVELOPE
ST
Submission of BIR receipt for renewal of Tax
Clearance will not suffice in lieu of a valid Tax
Clearance Requirement since substitution is not
allowed under Section 34.2 of the IRR of RA 9184.

The Tax Clearance must be valid and existing at


the time it is submitted to BAC and must be
submitted within three (3) calendar days from
receipt of the notice from the BAC that the bidder
has the LCB. Failure to comply with the
requirement for the submission of a valid Tax
Clearance shall be a ground for post-
Submission of Provisionary
disqualification Tax 48-2013)
of the bidder. (NPM Clearance is
not considered as sufficient compliance for
bidding purposes. (GPPB Resolution No. 33-
2013)
OPENING AND EVALUATION OF 1ST ENVELOPE
CREDIT LINE
COMMITMENT

Credit Line Commitment shall


no longer be accepted as an
alternative to the prospective
bidders computation of Net
Financial Contracting Capacity
(NFCC). (Resolution 20-2013)

OPENING AND EVALUATION OF 1ST ENVELOPE


STATEMENT OF ON GOING
AND COMPLETED
CONTRACTS
Thesubmission of a Statement of
Ongoing Contracts should only be
required if the bidder opts to submit an
NFCC computation. If the bidder opts to
submit a CLC, it need not submit said
statement.
The Statement of Completed
Contract(s) should always be required for
the purpose of showing the bidders Single
Largest Completed Contract that is similar
to the contract toOPENING
be bid. (Resolution 29-
AND EVALUATION OF 1 ENVELOPE
ST
ELIGIBILITY REQUIREMENTS FOR 47

FOREIGN BIDDERS

In the case of foreign bidders, the foregoing


eligibility requirements under Class A Documents
may be submitted:
Equivalent documents issued by country

Accompanied by English translation certified by


appropriate embassy or consulate in the Philippines

OPENING AND EVALUATION OF 1ST ENVELOPE


Foreign bidders may substitute eligibility
documentary requirements with the appropriate
equivalent documents in their country.
Only upon actual determination and
confirmation of this equivalence through post
qualification by the BAC may it be categorically
resolved that the foreign documents submitted
are acceptable substitutes of the required
eligibility documents pursuant to 23.2 of the
IRR. (NPM 42-2013)

OPENING AND EVALUATION OF 1ST ENVELOPE


TAX CLEARANCE FOR FOREIGN BIDDERS

A Delinquency Verification Certificate issued


to Non-Resident Foreign Corporations
(NRFC)/Non-Resident Aliens Not Engaged in
Trade or Business (NRANETB) pursuant to BIR
RR 3-2005, attesting to the fact that the
taxpayer has no outstanding Final Assessment
Notice and/or delinquent account may be
submitted as a form of Tax Clearance required
under Sec 34.2 of the IRR. (NPM 02-2013)

OPENING AND EVALUATION OF 1ST ENVELOPE


50

ELIGIBILITY REQUIREMENTS FOR GOVT.


CORPORATE ENTITIES

Government corporate entities may be


eligible to participate only if they can
establish that they:

1.are legally and financially autonomous,


2.operate under commercial law, and
3.are not attached agencies of the procuring
entity.

OPENING AND EVALUATION OF 1ST ENVELOPE


51

ELIGIBILITY REQUIREMENTS FOR JOINT


VENTURES

1.WITH AN EXISTING JOINT VENTURE:


submission of a valid joint venture agreement

2.WITHOUT AN EXISTING JOINT VENTURE:


submission by each of the potential joint venture
members of a duly notarized statement stating
that they will enter into and abide by the
provisions of the joint venture in case their bid is
successful.

OPENING AND EVALUATION OF 1ST ENVELOPE


SUBMISSION OF ELIGIBILITY
REQUIREMENTS:

All co-venturers of the joint venture should


submit legal eligibility documents.

Any of the co-venturers can submit


technical and financial eligibility
requirements

OPENING AND EVALUATION OF 1ST ENVELOPE


53

LEGAL ELIGIBILITY CRITERIA

General rule: 60% Filipino

Foreign bidder allowed if:


Stated in treaty or international or executive
agreement
National of a country offering reciprocity
rights to Filipinos
Goods not available from local suppliers
To prevent situations that defeat competition
or restrain trade

OPENING AND EVALUATION OF 1ST ENVELOPE


GOODS SINGLE LARGEST CONTRACT

General Rule Exceptions Then require the ff.:

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

OPENING AND EVALUATION OF 1ST ENVELOPE


GOODS SINGLE LARGEST CONTRACT (Illustration)

Expendable Goods Non-expendable Goods

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


GR: 25% of the ABC GR: 50% of the ABC
THUS: Previous contract should be THUS: Previous contract should be
at least at least
P250,000 P500,000
EXCEPTION: At least 2 similar EXCEPTION: At least 2 similar
contracts aggregate amount at contracts aggregate amount at
least equivalent to required least equivalent to required
percentage; and Largest of the percentage; and Largest of the
similar contracts amounts to similar contracts amounts to at
at least 50% of required least 50% of required
percentage. percentage.

THUS: 1st contract = P100,00 THUS: 1st contract = P300,000


2nd contract = P200,00 2nd contract = P400,00[

OPENING AND EVALUATION OF 1ST ENVELOPE


56

FINANCIAL ELIGIBILITY CRITERIA

Audited Financial Statement


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

OPENING AND EVALUATION OF 1ST ENVELOPE


NFCC COMPUTATION 57

Net Financial Contracting Capacity (NFCC)


=
(current assets - current liabilities) (K) MINUS
(outstanding, uncompleted portions under
ongoing contracts + contracts awarded but not
yet started)

(K) = 10 (contract is 1 year or less)


15 (contract is more than 1 year to 2 years)
20 (contract is more than 2 years)
* The values of the bidders current assets and
current liabilities shall be based
OPENING on theOFdata
AND EVALUATION 1 ENVELOPE
ST
Participating bidder should be required to
submit an NFCC that is at least equal to all
the lots to which it participated in, in order
to establish the bidders financial liquidity
and absorptive capacity in carrying out the
contractual obligations required by the lots
to which it participated in. (NPM 76-2013)

OPENING AND EVALUATION OF 1ST ENVELOPE


BID SECURITY
Procuring entity shall indicate in the Bidding
Documents at least 2 acceptable forms of bid
security, one of which should be the Bid Securing
Declaration.

In general, bank issued securities must be issued by


a universal or commercial bank

However, in biddings conducted by LGUs,


securities may be issued by banks certified by
BSP as authorized to issue said instruments

Surety Bonds must be accompanied by


certification from Insurance Commission that issuer
is authorized to issueOPENING
such security
AND EVALUATION OF 1ST ENVELOPE
Amount
Form of Bid Security
Bid Security
(% = ABC)

a) Cash or
cashiers/managers
check
2%
b) Bank guarantee/draft or
Irrevocable LC

c) Surety bond callable upon


demand
5%

d) Combination of the Proportionate to share of form with respect


foregoing to the total amount of security

e) Bid Securing Declaration


No percentage required

OPENING AND EVALUATION OF 1ST ENVELOPE


BID SECURING DECLARATION
Bid Securing Declaration
- an additional form of bid security
- A document/undertaking signed by the bidder
committing to pay the corresponding fine
and be suspended for a period of time
from being qualified to participate in any
government activity in the event of violation
of any of the conditions stated therein as
required by the GPPB Guidelines. (GPPB
Resolution No. 03-2012, 27 January 2012)

OPENING AND EVALUATION OF 1ST ENVELOPE


Penalties
- Automatic blacklisting for 2 years in
ALL government procurement
activities, and
- Payment of fine
For multiple bidders: difference between the
evaluated bid prices of LCRB/HRB with the
next LCRB/HRB.
In case bidder is the LCRB/HRB, the amount
shall be based on the difference between
the evaluated bid price and ABC.
For a single bidder: difference between the
evaluated bid price and ABC.

OPENING AND EVALUATION OF 1ST ENVELOPE


BID VALIDITY PERIOD
Bids and bid securities (including bid
securing declaration) shall be valid for a
reasonable period as determined by the
HOPE as indicated in the Bid Docs.
Not to exceed 120 days
If the period is extended, PE shall request
in writing all those who submitted bids for
such extension before the expiration date.

NOTE: Bidders have a right to refuse to


grant such extension w/oAND
OPENING forfeiting
EVALUATION their bid
OF 1 ENVELOPE
ST
DISCLOSURE OF
RELATIONS
Relatives within the third civil
degree of the following shall be
disqualified:

Head of the procuring entity


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

OPENING AND EVALUATION OF 1ST ENVELOPE


CONFLICT OF INTEREST
The firm that has been engaged to
provide consulting services for the
preparation or implementation of a
project, and each of its affiliates, will be
disqualified from subsequently providing
goods, works, or services resulting from
or directly related to the firms consulting
services for such preparation or
implementation.

There is conflict of interest when the


entity that prepared the plans/drawings
likewise participates in EVALUATION
OPENING AND the ensuing
OF 1 ENVELOPE
ST
OPENING AND EVALUATION OF 2ND
ENVELOPE
CONTENTS:

1. Financial Bid Form (includes bid prices


and bill of quantities, as well as
applicable price schedules)
2. In case of Goods, Certification from the
DTI, SEC, or CDA, if claiming preference
as Domestic Bidder or Domestic Entity
3. Other documents required in the
bidding documents

OPENING AND EVALUATION OF 2ND ENVELOPE


EVALUATION OF BIDS
Calculated Bid (LCB), by:
1. Establishing correct calculated prices
of bids; and
2. Ranking calculated total bid prices
from lowest to highest

A non-discretionary criterion shall be


used, which shall include consideration
of:
1. completeness of bids; and
2. minor arithmetical corrections

EVALUATION OF BIDS
No Contact Rule - prohibition on communication
w/ bidders from bid evaluation until award of
contract.

The no contact rule applies only to those whose


bids are being evaluated by the BAC after passing
the preliminary examination.

No communication should be made by bidders


until a decision to award a contract is made by the
BAC.

Bidders who waived their right to utilize the


protest mechanism or those whose request for
reconsideration and/or protest were subsequently
denied are not covered by the prohibition under
32.1 of RA 9184 IRR. (NPM 07-2013)
EVALUATION OF BIDS
Bid Evaluation shall not be more
than 7 cd.

In case of discrepancies, the ff. shall


prevail:
- words over figures
- unit prices over total prices
- actual sum of prices over total price
- bill of quantities over detailed estimates

Section 32.2.3(c) of the IRR states that


where there is a discrepancy between the
stated total price and the actual sum of
prices of component items, the latter
shall prevail. (NPM 51-2013)

EVALUATION OF BIDS
Unless the ITB specifically allows
partial bids, those not providing all
required items shall be considered
non-responsive

Placing no price is considered as


non-responsive

Specifying a 0 or - means it is
offered for free

EVALUATION OF BIDS
DOMESTIC PREFERENCE

Applicable only for GOODS

Applies where the lowest bid has a foreign


component (foreign bid/entity) and the next
lowest bid has a domestic component
(domestic bidder/entity)

Requires procuring entity to give preference to


domestic bidder PROVIDED that:

1. The lowest foreign bid is increased by 15%; and


2. The lowest domestic bidder matches the lowest bid of the
foreign bidder

EVALUATION OF BIDS
SAMPLE COMPUTATION

Next Lowest Calculated


Lowest Calculated Bid
Bid

Foreign Bidder Domestic Bidder/Entity

Bid 2,653,360.00 3,009,492.00

% Preference x 15%

398,004.00

+ 2,653,360.00

Bid as increased 3,051,364.00 3,009,492.00

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


Award to Foreign Bidder if Domestic Bidder/Entity
Result
refuses

EVALUATION OF BIDS
POST-QUALIFICATION
To determine whether bidder with LCB
complies with and is responsive to all
requirements and conditions of eligibility
and the bidding of the contract to be
declared the Lowest Calculated and
Responsive Bid (LCRB)
A non-discretionary pass/fail criterion
shall be used to Verify, Validate and
Ascertain all statements and documents
(licenses, certificates, etc.)
To be accomplished not more than 7 c.d.
from determination of LCB. (Exceptional
cases not to exceed 30 c.d.) POST-QUALIFICATION
BAC will notify the Bidder with the Lowest
Calculated Bid that it was determined as such.

Within 3 c.d. from receipt of Notice, submit


the ff:
1. Latest Income and Business Tax Returns;
2. Certificate of PhilGEPS Registration; and,
3. Other appropriate Licenses and permits
required by law and stated in the Bidding
Documents.

POST-QUALIFICATION
BAC shall recommend award of contract to
the LOWEST CALCULATED AND
RESPONSIVE BID (LCRB) at submitted price
or calculated price, whichever is lower.

In case of approval by HOPE, Notice of


Award should be IMMEDIATELY issued by
HOPE to the LCRB. (HOPE has 7 days to
decide w/n to issue NOA)

POST-QUALIFICATION
The three (3) calendar day period under
34.2 of the IRR is mandatory and should
not be extended.
In case PE accepts the post-qualification
documentary requirements beyond the
reglementary period, it must show that
there is a compelling, sufficient, valid,
reasonable, and justifiable cause for such
extension, so that penal sanction or
liability will not set in. Applicable
administrative and civil sanctions or
liabilities may also be imposed against
the concerned officials. (NPM 27-2013)
POST-QUALIFICATION
PE may request for the submission of
additional documents from the bidder in
support of the information it has provided
in the bidding documents.
However, non-submission of the
additional supporting documents
requested cannot be a ground for the
bidders post-disqualification, as a bidder
may be post-disqualified only upon
ascertainment, validation, and verification
of its non-compliance with the legal,
technical, and financial requirements of
the project as provided in the bidding
documents. (NPM 25-2013)
POST-QUALIFICATION
Should PE decides to extend the period, it
must show and provide compelling,
sufficient, valid, reasonable, and
justifiable cause. Such valid justification,
however, will only free officials from penal
sanction or liability, but not from
applicable administrative and civil
sanctions or liabilities under existing laws,
rules and regulations. (NPM 57-2013)

POST-QUALIFICATION
FAILURE OF BIDDING
GROUNDS:

1)No bids received


2)Bids received but no one was eligible
3)All bids failed to post qualify
4)Someone post qualified but refused w/o
justifiable cause to accept the award.

POST-QUALIFICATION
EFFECTS:

1)Mandatory review shall be conducted by BAC

2)Based on findings, BAC shall:


Revise terms, conditions, specifications
Adjust ABC, subject to required approvals

3)Re-bidding

4)Re-advertisement

POST-QUALIFICATION
AWARD OF CONTRACT
Contract shall be awarded to the bidder with
the Lowest Calculated and Responsive Bid
(LCRB) at its submitted price or total
calculated bid price, whichever is lower

Notice of Award (NOA) is issued by the HOPE

NGAs and LGUs 7 cd


GOCCs and GFIs 15 cd

AWARD OF CONTRACT
NOA is subject to the following conditions:
If joint venture, submission of JVA
If foreign-funded and stated in treaty, international
or executive agreement, PCAB License
Posting of Performance Security
Signing of Contract (within 10 cd)
If required, approvals by higher authority

PROCUREMENT PROCESS
From Opening of Bids to Award of Contract shall
NOT EXCEED 3 MONTHS
AWARD OF CONTRACT
PERFORMANCE
SECURITY
Posted by winning bidder upon signing of
contract to guarantee performance of
obligation, in such form and amount
specified in the Bidding Documents.

EFFECTS OF FAILURE TO POST:


1.Ground for disqualification
2.Next-ranked LCRB shall undertake post-
disqualification
3.Bid security shall be forfeited without
prejudice to the imposition of sanctions
AWARD OF CONTRACT
Submission by the winning bidder of a
Performance Security in the form of a
personal check after the signing of the
contract could be considered as a failure to
post the Performance Security in the required
form under 39.2 of the IRR and in the
required period for posting under 37.1.4(b)
of the IRR.

4.1.5 of the Guidelines provides that the


refusal or failure of a contractor to post the
required Performance Security within the
prescribed period is one of the grounds for
blacklisting. (NPM 35-2013) AWARD OF CONTRACT
Amount
Form of
Performance Performance Security
(% equal to the Contract Price)
Security

a)Cash or
cashiers/manag
ers check
b)Bank 5% (Goods ) & 10% (Infra)
guarantee/draft
or Irrevocable
LC
c)Surety bond
callable upon 30%
demand
d)Combination of Proportionate to share of
the foregoing form with respect to the
total amount AWARD
of security
OF CONTRACT
RESERVATION
CLAUSE
HOPE reserves the right to:
Reject any and all bids;
Declare a failure of bidding;
Not award the contract.

GROUNDS:
1.Prima facie evidence of collusion;
2.BAC is found to have failed in following the prescribed bidding
procedures;
3.For justifiable reasons, the award of contract will not redound
to the benefit of the Government:
Physical and economic conditions have significantly
changed;
Project is no longer necessary
Source of funds for the project has been withdrawn/reduced.
AWARD OF CONTRACT
NOTICE TO PROCEED
Issued to the successful bidder together with
the copy of the approved contract within 3 cd
from date of approval

Contract effectivity date should be provided


in the NTP, which should not be later than 7
cd from its issuance
BAC Secretariat should post a copy of the NTP
and the approved contract in the PhilGEPS or
PEs website within 15 cd from issuance of NTP

AWARD OF CONTRACT
Procurement

-Refers to the acquisition of goods, consulting


services, and the contracting for infrastructure
projects by the Procuring Entity.

-In case of projects involving mixed procurements,


the nature of the procurement, i.e. , Goods,
Infrastructure Projects or Consulting Services, shall
be determined based on the primary purpose of the
contract.

-Procurement shall also include the lease of goods


and real estate. With respect to real property, its
procurement shall be governed by the provisions of
R.A. 10752 and other applicable laws, rules and
regulations.(a)
Competitive Bidding (Public
Bidding)
-Refers to a method of procurement which is open
to participation by any interested party and
which consists of the following processes:
Advertisement
pre-bid conference
eligibility screening of prospective bidders
receipt and opening of bids
evaluation of bids, post-qualification
award of contract.
Alternative Methods of Procurement
Alternative methods of procurement shall be
resorted to only in highly exceptional cases provided
for in RA 9184

The method of procurement to be used shall be as


indicated in the approved APP. If the original method
of procurement recommended in the APP was
competitive bidding but cannot be ultimately
pursued, the BAC, through a resolution, shall
justify and recommend the change in the
method of procurement to be approved by the
HoPE. Such changes must be reflected in the APP to
be submitted to the GPPB, pursuant to Section 7.4 of
the IRR.
Alternative Methods of Procurement

Methods:
Limited Source Bidding
Direct Contracting
Repeat Order
Shopping
Negotiated Procurement