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?

    <p>Original Receipt (OR)</p> Signup and view all the answers

    Which document serves as proof of net financial contracting capacity?

    <p>Audited Financial Statements</p> Signup and view all the answers

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

    <p>To prove current taxation status</p> Signup and view all the answers

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

    <p>Joint Venture Agreement</p> Signup and view all the answers

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

    <p>Special PCAB License for JVA</p> Signup and view all the answers

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

    <p>₱1,000,000</p> 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?

    <p>BAC and BAC Secretariat</p> 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?

    <p>Pre-bid conference</p> Signup and view all the answers

    What does the posting of the Invitation to Bid signal?

    <p>The start of the bidding process</p> Signup and view all the answers

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

    <p>₱1,000,000</p> Signup and view all the answers

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

    <p>₱5 million</p> Signup and view all the answers

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

    <p>To clarify and explain bidding requirements</p> Signup and view all the answers

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

    <p>It should be done to ensure transparency and competitiveness.</p> Signup and view all the answers

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

    <p>P400,000</p> Signup and view all the answers

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

    <p>1st Class</p> Signup and view all the answers

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

    <p>Disqualification of bid</p> Signup and view all the answers

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

    <p>P50,000</p> Signup and view all the answers

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

    <p>3rd Class</p> Signup and view all the answers

    What is Limited Source Bidding also known as?

    <p>Selective bidding</p> Signup and view all the answers

    Which type of procurement does Limited Source Bidding apply to?

    <p>Goods and consulting services</p> Signup and view all the answers

    What is a necessity for using Limited Source Bidding?

    <p>Specialized goods and services</p> Signup and view all the answers

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

    <p>Proven capability and experience</p> Signup and view all the answers

    What does Direct Contracting also refer to?

    <p>Single source procurement</p> Signup and view all the answers

    What is NOT a characteristic of Direct Contracting?

    <p>Requires elaborate bidding documents</p> Signup and view all the answers

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

    <p>Assessment of capability by authorized entities</p> Signup and view all the answers

    In what scenario is Limited Source Bidding particularly applicable?

    <p>For complex systems with limited suppliers</p> Signup and view all the answers

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

    <p>7 calendar days</p> Signup and view all the answers

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

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

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

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

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

    <p>Post the NTP and approved contract on relevant websites</p> Signup and view all the answers

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

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

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

    <p>Inability to complete within the specified deadline</p> Signup and view all the answers

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

    <p>Posting of the Notice to Proceed</p> Signup and view all the answers

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

    <p>10 calendar days</p> 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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    Related Documents

    Government Procurement Law (R.A. 9184) Student Copy PDF

    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.

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