IB 10: Procurement and Contract Management

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Questions and Answers

What is the primary purpose of the Postqualification of Contractor process?

To evaluate the contractor's eligibility and qualifications

What is the next step after the opening of bids/tenders?

Determination of the lowest calculated responsive bid

What is the purpose of the Submission, Opening and Abstracting of Bids/Tenders stage?

To receive and record bids from contractors

What is the focus of the Detailed Evaluation of Bids stage?

To evaluate the technical and financial aspects of the bids Signup and view all the answers

What is the By Negotiated Contract method used for?

To award a contract to a single bidder Signup and view all the answers

What is the purpose of the Supporting Documents stage?

To provide additional information to support the contract Signup and view all the answers

What is the focus of the Contract Implementation stage?

To implement the contract and monitor its progress Signup and view all the answers

What is the purpose of the Variation Orders/Change Order/Extra Work Order/Supplemental Agreement?

To make changes to the original contract Signup and view all the answers

Where should the advertisement for bidding be posted?

In the newspaper, website, and premises of the office/agency/corporation concerned Signup and view all the answers

What is the minimum number of contractors required to participate in the bidding?

Four Signup and view all the answers

When can the advertisement be made in a newspaper of general nationwide circulation?

When there is evident lack of interest to participate among the region-based contractors Signup and view all the answers

How are contractors invited for foreign-financed/assisted contracts?

Under the same procedures as local contracts and/or in accordance with procedures established by the lending/financing institution Signup and view all the answers

What information should the notice for prequalification/eligibility screening contain?

Among others, the name and location of the project Signup and view all the answers

What is the purpose of the notice for prequalification/eligibility screening?

To guide contractors in evaluating their capabilities and deciding whether to participate in the bidding Signup and view all the answers

Who provides the notice for prequalification/eligibility screening?

The BAC or designated procurement unit Signup and view all the answers

What is the primary responsibility of the Bid and Award Committee (BAC) in an office/agency/corporation?

Conducting bidding, evaluation of bids, postqualification, and recommending award of contracts Signup and view all the answers

Who is the administrative officer of the agency concerned in relation to the BAC?

The executive officer and secretary of the BAC when the agency does not have a legal officer Signup and view all the answers

What type of contracts may require direct invitation of contractors?

Contracts requiring special technology Signup and view all the answers

What is the minimum ranking of the Chairman of the BAC in the office/agency/corporation?

At least third ranking official Signup and view all the answers

How many provisional members are designated by the head of office/agency/corporation for the BAC?

At least two Signup and view all the answers

Who designates the technical member of the BAC?

The head of office/agency/corporation Signup and view all the answers

What is the requirement for the provisional members of the BAC?

They should have experience in the type of contract to be bid and in project management Signup and view all the answers

What is the purpose of the checklist of required documents in the bidding process?

To verify the completeness of the first envelope Signup and view all the answers

What is the minimum amount of the cash deposit certificate or credit line that the contractor's bank must extend to the contractor?

Ten percent of the approved budget for the contract to be bid Signup and view all the answers

What document is required to be submitted by the contractor to ensure compliance with the Occupational Safety and Health Standards?

Construction Safety and Health Program Signup and view all the answers

What happens if a contractor's first envelope is missing one or more of the required documents?

The contractor is disqualified and the second envelope is returned unopened Signup and view all the answers

What is the purpose of the first envelope in the bidding process?

To verify the contractor's compliance with the required documents Signup and view all the answers

What is the minimum amount of time that the contractor's bank must extend a credit line to the contractor?

Two months Signup and view all the answers

What is the purpose of the second envelope in the bidding process?

To determine the contractor's bid price Signup and view all the answers

What is the consequence of a contractor's failure to comply with the Occupational Safety and Health Standards?

The contractor is disqualified from the bidding process Signup and view all the answers

What is the minimum percentage of the approved budget for the contract under bidding that the contractor's single largest managed/supervised contract similar to the contract under bidding must be equal to?

Fifty percent (50%) Signup and view all the answers

Who verifies the experience of the contractor's key personnel?

The BAC or designated procurement unit Signup and view all the answers

What is the purpose of the BAC or designated procurement unit's inquiry with the contractor's previous employers and clients?

To verify the contractor's experience Signup and view all the answers

What is the requirement for the equipment units listed by the contractor?

They must be in full working condition Signup and view all the answers

What authority does the BAC or designated procurement unit have regarding the equipment units?

To undertake an actual physical inspection of the equipment units Signup and view all the answers

Why does the BAC or designated procurement unit check the contractor's performance in ongoing government and private contracts?

To determine the contractor's capability to perform the contract Signup and view all the answers

What is the purpose of the documented proofs of ownership and/or lease and/or purchase agreements?

To support the contractor's claim of equipment ownership Signup and view all the answers

What is the requirement for the number and capacities of the equipment units?

They must be adequate as to number and capacities compared to the minimum requirements specified Signup and view all the answers

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Study Notes

Bid and Award Committee (BAC)

The BAC or designated procurement unit is responsible for the conduct of prequalification, bidding, evaluation of bids, postqualification, and recommending award of contracts.
The committee is composed of:
- A chairman (at least third-ranking official of the office/agency/corporation)
- An executive officer and secretary (legal officer of the office/agency/corporation or administrative officer)
- A regular technical member designated by the head of office/agency/corporation
- At least two provisional members with experience in the type of contract to be bid and in project management, designated by the head of office/agency/corporation on a project-to-project basis

Advertisement and Invitation

The advertisement shall be posted in the newspaper, website, and premises of the office/agency/corporation concerned.
The invitation may also be advertised through other forms of media such as radio and television.
In cases of contracts requiring special technology, direct invitation of contractors known for their capacity to undertake such type of contracts may be made.
For foreign-financed/assisted contracts, contractors are invited under the same procedures and/or in accordance with procedures established by, and agreed upon with, the lending/financing institution.

Issuance of Qualification Statements/Forms

The BAC or designated procurement unit shall provide prospective bidders with the notice for prequalification/eligibility screening, which includes:
- Name and location of project
- Equipment utilization schedule
- Certificate of site inspection
- Bid security
- Certification that the Detailed Estimates, Cash Flow by Quarter, and Payments Schedule are in the second envelope
- Commitment from the contractor's bank to extend a credit line if awarded the contract to be bid
- Construction Safety and Health Program
- Other non-discretionary criteria as stated in the instructions to bidders

Contents of First Envelope

The first envelope shall contain:
- Notice for prequalification/eligibility screening
- Equipment utilization schedule
- Certificate of site inspection
- Bid security
- Certification that the Detailed Estimates, Cash Flow by Quarter, and Payments Schedule are in the second envelope
- Commitment from the contractor's bank to extend a credit line if awarded the contract to be bid
- Construction Safety and Health Program
- Other non-discretionary criteria as stated in the instructions to bidders

Contents of Second Envelope

The second envelope shall contain:
- Bid prices in the bill of quantities
- Experience of the contractor's key personnel
- Equipment units listed by the contractor

Verification and Evaluation

The BAC or designated procurement unit shall verify the experience of the contractor's key personnel and equipment units listed.
The BAC or designated procurement unit shall make appropriate inquiries with the personnel's previous employers and clients and conduct checks on their past contracts.
The BAC or designated procurement unit shall have the authority to undertake an actual physical inspection of the equipment units and make appropriate inquiries and checks with the equipment lessors and suppliers concerned.