Procurement Processes in Contract Bidding

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Questions and Answers

What is required for the financial component under Class A eligibility?

Bid Security

Single Largest Completed Contract (correct)

Valid Business Registration

Tax Clearance

Which documents are part of Class A eligibility requirements?

Ongoing Contracts List

Project Requirements (correct)

Joint Venture Agreement

Audited Financial Statements (correct)

What category does the Joint Venture Agreement fall under?

Class A

Class B (correct)

Technical Documents

Financial Documents

Which document is acceptable when the Mayor’s Business Permit is expired?

Original Receipt (OR) Signup and view all the answers

Which document serves as proof of net financial contracting capacity?

Audited Financial Statements Signup and view all the answers

What is the purpose of the Tax Clearance requirement in Class A eligibility?

To prove current taxation status Signup and view all the answers

Which document is not included in the technical requirements for Class A?

Joint Venture Agreement Signup and view all the answers

What type of license is required specifically for projects under Class B eligibility?

Special PCAB License for JVA Signup and view all the answers

What is the minimum amount for which a pre-bid conference must be conducted according to the guidelines?

₱1,000,000 Signup and view all the answers

Which participants are required to be involved in a mandatory pre-procurement conference for contracts over ₱2 million for goods?

BAC and BAC Secretariat Signup and view all the answers

What is one of the procurement activities that may be conducted electronically according to the GPPB Resolution No. 24-20218?

Pre-bid conference Signup and view all the answers

What does the posting of the Invitation to Bid signal?

The start of the bidding process Signup and view all the answers

At what minimum amount can a pre-bid conference be conducted at the discretion of the BAC?

₱1,000,000 Signup and view all the answers

Which level of contract value mandates a mandatory pre-procurement conference for infrastructure projects?

₱5 million Signup and view all the answers

What is the role of the BAC during the pre-bid conference?

To clarify and explain bidding requirements Signup and view all the answers

Which of the following statements is TRUE regarding the advertisement of the Invitation to Bid?

It should be done to ensure transparency and competitiveness. Signup and view all the answers

What is the minimum annual income required for a municipality classified as 6th Class?

P400,000 Signup and view all the answers

Which class of province has the highest minimum annual income requirement according to the classification?

1st Class Signup and view all the answers

What is the automatic penalty for failing to submit a sworn affidavit regarding relations in a bid?

Disqualification of bid Signup and view all the answers

How much is the minimum annual income required for a barangay?

P50,000 Signup and view all the answers

Which class of city has a minimum required annual income of P800,000?

3rd Class Signup and view all the answers

What is Limited Source Bidding also known as?

Selective bidding Signup and view all the answers

Which type of procurement does Limited Source Bidding apply to?

Goods and consulting services Signup and view all the answers

What is a necessity for using Limited Source Bidding?

Specialized goods and services Signup and view all the answers

What is required for the pre-selection of suppliers in Limited Source Bidding?

Proven capability and experience Signup and view all the answers

What does Direct Contracting also refer to?

Single source procurement Signup and view all the answers

What is NOT a characteristic of Direct Contracting?

Requires elaborate bidding documents Signup and view all the answers

How is the pre-selection list for Limited Source Bidding typically compiled?

Assessment of capability by authorized entities Signup and view all the answers

In what scenario is Limited Source Bidding particularly applicable?

For complex systems with limited suppliers Signup and view all the answers

What is the maximum period allowed for issuing the Notice to Proceed after the contract approval?

7 calendar days Signup and view all the answers

Which of the following actions by the Supplier of Goods can lead to contract termination?

Failing to deliver at least 10% of the contract price Signup and view all the answers

What does the Supreme Court state about the procurement periods in RA 9184?

They are mandatory and non-compliance renders the procurement process null and void. Signup and view all the answers

What action should the BAC Sec take after issuing the Notice to Proceed?

Post the NTP and approved contract on relevant websites Signup and view all the answers

In terms of infrastructure projects, when can a contract be terminated due to negative slippage?

While the project is ongoing with 15% or more negative slippage Signup and view all the answers

What is NOT included in the grounds for contract termination according to the content?

Inability to complete within the specified deadline Signup and view all the answers

Which of the following is a mandatory part of the procurement process for the successful bidder?

Posting of the Notice to Proceed Signup and view all the answers

How long does the Procuring Entity have to terminate a contract if the Supplier fails to meet obligations?

10 calendar days Signup and view all the answers

Study Notes

Pre-Bid Conference

Meeting required: For contracts worth ₱1,000,000 or more, the BAC must hold a pre-bid conference to clarify bidding documents.
Meeting optional: For contracts worth less than ₱1,000,000, the BAC can choose to have a pre-bid conference.
Bidder requests: Prospective bidders can request a pre-bid conference with BAC approval.

Pre-Procurement Conference

Purpose: To evaluate procurement readiness.
Participants: BAC, BAC Secretariat, Technical Working Group (TWG), Consultants, End-User, and other officials.
Requirement: Mandatory for projects with ABC (Approved Budget for the Contract) above ₱2 million for goods and ₱5 million for Infrastructure Projects.
Timing: Held before advertisements or posting of the Invitation to Bid.

Electronic Procurement

Permitted: Activities like pre-procurement conferences, bid openings, and other meetings can be conducted electronically.
GPPB Resolution: GPPB Resolution No. 24-20218 allows this.

Importance of Invitation To Bid

Signals: Marks the start of the bidding process and indicates that bidding documents are available to bidders.

Eligibility Requirements

Class A: Includes legal, technical, and financial requirements.
Class B: Required when there is a joint venture, including a Joint Venture Agreement.
Legal Requirements: Must provide PhilGEPS registration certificate or SEC Certificate of Registration, DTI Registration, Mayor's Business Permit, and Tax Clearance.
Technical Requirements: Must provide a statement of all ongoing contracts, audited financials, and a valid PCAB License.
Financial Requirements: Must provide a net financial statement of all contracting capacity (NFCC) for goods or a statement of the Single Largest Completed Contract (SLCC).
Joint Venture Requirement: A joint venture agreement entered into by the parties is required when a joint venture is used.

Notice to Proceed

Issuance: The Procuring Entity (PE) must issue a Notice to Proceed (NTP) to the successful bidder within 7 calendar days of the contract's approval.
Content: The NTP will include a copy of the approved contract.
Posting: The BAC Secretariat must post the NTP and the approved contract on the PhilGEPS and PE websites within 15 calendar days of the NTP issuance.

Contract Implementation

Regulations: Guided by Annex D and Annex E of the IRR of RA 9184.
Annex D: Covers amendments, suspension of work, liquidated damages, and advance payments.
Annex E: Covers variation orders, extra work costs, advance payments, progress payments, retention money, negative slippage, and liquidated damages.

Grounds for Termination

Goods Contract Termination: Can be terminated if the supplier fails to deliver at least 10% of the contract price or fails to meet other contract obligations.
Infrastructure Project Termination:
- Ongoing project termination: Can be terminated if there is a negative slippage of 15% or more due to the contractor's fault.
- Post-contract termination: Can be terminated if there is negative slippage of at least 10% after the contract deadline due to the contractor's fault.

Alternative Procurement Methods

Allowed methods: Limited Source Bidding, Direct Contracting, Shopping, Repeat Order, and Negotiated Procurement.
Goods: Negotiated Procurement, Limited Source Bidding, Direct Contracting, Repeat Order, and Shopping can be used.
Infrastructure: Negotiated Procurement, Limited Source Bidding, and Direct Contracting can be used.
Consulting: Negotiated Procurement, Limited Source Bidding, and Direct Contracting can be used.

Limited Source Bidding

Background: aka selective bidding, it involves inviting bids from pre-selected suppliers with specific expertise.
Applicability: Used for highly specialized goods or services where competitive bidding might not yield more suppliers.
Preconditions: May be used when procuring specialized goods or consulting services, or major plant components.
Selection Criteria: Based on experience, personnel, equipment, facilities, and financial position.
Pre-Selected List: Available on the GPPB website.

Direct Contracting

Background: Aka single-source procurement, it entails a price quotation request from the selected supplier with minimal bidding documents.
LGU Thresholds: There are different thresholds based on class of LGU (province, city, municipality, barangay) for using this method.

Disclosure of Relations

Requirement: Bidders must submit a sworn affidavit stating that they or any officer of their corporation is not related to the Head of the Procuring Entity up to the third civil degree.

Non-Compliance

Consequences: Failure to follow the disclosure requirement will automatically disqualify the bid.

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Description

This quiz covers key concepts related to pre-bid and pre-procurement conferences, including their requirements, participants, and the role of electronic procurement. Understand how these elements fit into the overall procurement process for contracts in the Philippines.