Government-Procurement_Student-Copy-1.pdf

Government Procurement Law R.A. 9184  CPALE Syllabus 1. Explain the general principles 2. Discuss the scope and application 3. Discuss the definition of terms 4. Discuss and apply the procurement procedures 4.1 Preparation of bidding documents 4.2 Invitati...

Government Procurement Law R.A. 9184  CPALE Syllabus 1. Explain the general principles 2. Discuss the scope and application 3. Discuss the definition of terms 4. Discuss and apply the procurement procedures 4.1 Preparation of bidding documents 4.2 Invitation to bid 4.3 Receipt and opening of bids 4.4 Bid evaluation 4.5 Post-qualification 4.6 Award, implementation, and termination of the contract 5. Demonstrate the alternative methods of procurement 6. Explain the Disclosure of relations 2 PHILIPPINE PROCUREMENT PARADIGM Assess ▪ Review studies ▪ Post/Advertise Procure ▪ Consolidate into APP opportunity ▪ Decide procurement ▪ Open and evaluate method bids ▪ Approve APP ▪ Post-qualify ▪ Determine readiness ▪ Award and enter into contract Identify ▪ Cost-benefit analysis ▪ Oversee Implement ▪ Feasibility study implementation ▪ Market study ▪ Inspect and accept ▪ PPMP deliveries ▪ Release payment  1. Explain the General Principles 4  5 General Principles The procurement of the GoP shall be governed by these principles: a) Transparency in the procurement process and in the implementation of procurement contracts through wide dissemination of bid opportunities and participation of pertinent non-government organizations. b) Competitiveness by extending equal opportunity to enable private contracting parties who are eligible and qualified to participate in competitive bidding. c) Streamlined procurement process that will uniformly apply to all government procurement. The procurement process shall be simple and made adaptable to advances in modern technology in order to ensure an effective and efficient method.  6 General Principles The procurement of the GoP shall be governed by these principles: d) System of accountability where both the public officials directly or indirectly involved in the procurement process as well as in the implementation of procurement contracts and the private parties that deal with GoP are, when warranted by circumstances, investigated and held liable for their actions relative thereto. e) Public monitoring of the procurement process and the implementation of awarded contracts with the end in view of guaranteeing that these contracts are awarded pursuant to the provisions of the Act and this IRR, and that all these contracts are performed strictly according to specifications. Section 3, R.A. 9184 7 General Principles P ublic Monitoring  Awareness and vigilance A ccountability  Responsibility over actions/decisions (“Answerable”) C ompetitiveness  Equal opportunity to all eligible bidders T ransparency  Wider dissemination of bid opportunities S treamlined Process  Uniformly applicable to all government agencies  Effective and efficient method 2. Discuss the Scope and Application 8 9 Scope and Application This act shall apply to the Procurement of Infrastructure Projects, Goods and Consulting Services, regardless of source of funds, whether local of foreign, by all branches and instrumentalities of government, its departments, offices and agencies, including government-owned and/or- controlled corporations and local government units, subject to the provisions of Commonwealth Act No. 138. Any treaty or international or executive agreement affecting the subject matter of this Act to which the Philippine government is signatory shall be observed. Section 4, R.A. 9184 10 Scope and Application ❑ R.A. 9184 applies to all branches and/or instrumentalities of the government: 1. National Government Agencies (NGAs) 2. State Universities and Colleges (SUCs) 3. Government Owned or Controlled Corporations (GOCCs) 4. Government Financial Institutions (GFIs) 5. Local Government Units (LGUs) ❑ It shall apply to all procurement activities involving: 1. Goods and Services 2. Infrastructure Projects 3. Consulting Services 11 Scope and Application The IRR shall not apply to the following: Procurement Actors 12 13 Parties in the Procurement ❑ Head of the Procuring Entity (HOPE) ❑ Bids and Awards Committee (BAC) ❑ BAC Secretariat ❑ Technical Working Group (TWG) ❑ Observers 14 Head of Procuring Entity Refers to: ❑ Head of the agency or body, or his duly authorized official, for NGAs and the constitutional commissions or offices, and other branches of government; 15 Head of Procuring Entity FUNCTIONS AND RESPONSIBILITIES: 1. Establishes BAC and appoints its members ❑ Ensures that BAC members give their utmost priority to duties ❑ Ensures professionalization of members of the procurement organization Within six (6) months upon designation, the BAC, its Secretariat and TWG members should have satisfactorily completed such training or program conducted, authorized or accredited by the GPPB through its TSO. (Sec. 16, 2016 IRR of RA 9184) 16 Head of Procuring Entity 2. Approves the Annual Procurement Plan (APP) 3. Approves/Disapproves the Contract Award 4. Resolves Protests 17 BIDS and Awards Committee FUNCTIONS AND RESPONSIBILITIES: ❑ Recommends Procurement Method ❑ Creates a Technical Working Group (TWG) ❑ Conducts the bidding activities ❑ Resolves Requests for Reconsideration ❑ Recommends Imposition of Sanctions ❑ Invites Observers during all stages of the procurement process ❑ Conducts due diligence review or verifications of the qualifications of observers ❑ Prepares Procurement Monitoring Report 18 BIDS and Awards Committee FUNCTIONS AND RESPONSIBILITIES: ❑ Advertise and/or post the IB/REI ❑ Conduct pre-procurement and pre-bid conferences; ❑ Determine the eligibility of prospective bidders; ❑ Receive and open bids; ❑ Conduct the evaluation of bids; ❑ Undertake post-qualification proceedings; ❑ Recommend award of contracts to the HoPE or his duly authorized representative; ❑ Recommend to the HoPE the use of Alternative Methods of Procurement 19 BIDS and Awards Committee FUNCTIONS AND RESPONSIBILITIES: ❑ Conduct any of the Alternative Methods of Procurement; ❑ Conduct periodic assessment of the procurement processes and procedures ❑ Perform such other related functions as may be necessary (Sec. 12.1, 2016 IRR of RA 9184) 20 BIDS and Awards Committee COMPOSITION: 5 but not more than 7 MEMBERS designated by the HOPE 1. Regular Members: ❑ Chairperson; ❑ Member representing the Legal or Administrative areas (5th Ranking Permanent Personnel); or if not available, an officer of the next lower rank; ❑ Member representing the Finance Area (5th Ranking Permanent Personnel); or if not available, an officer of the next lower rank; 21 BIDS and Awards Committee COMPOSITION: 5 but not more than 7 MEMBERS designated by the HOPE 1. Regular Members: ❑ Chairperson; ❑ Member representing the Legal or Administrative areas (5th Ranking Permanent Personnel); or if not available, an officer of the next lower rank; ❑ Member representing the Finance Area (5th Ranking Permanent Personnel); or if not available, an officer of the next lower rank; 22 BIDS and Awards Committee COMPOSITION: 5 but not more than 7 MEMBERS designated by the HOPE 2. Provisional Members ❑ Officer possessing Technical expertise relevant to the procurement. ❑ End user unit Representative. In case of procurement outsourcing, a representative from the Procuring Entity may be designated as a provisional member 23 BAC Secretariat ❑ HOPE may create a new office or designate an existing organic office to act as BAC Secretariat In case of ad hoc BAC Secretariat, the HOPE shall assign full- time support staff in its BAC Secretariat (Sec. 14.2) ❑ There is no minimum or maximum number of members of the BAC Secretariat. ❑ Head of the BAC Secretariat must be at least a 5th or 3rd ranking permanent employee or, if not available, a permanent official of the next lower rank 24 BAC Secretariat FUNCTIONS: ❑ Provide administrative support to the BAC and TWG ❑ Organize BAC and TWG meetings and conferences ❑ Take custody of procurement documents and other records ❑ Manage the sale and distribution of bidding documents ❑ Advertise/post bidding opportunities, including Bidding Documents, and notices of awards ❑ Assist in managing the procurement process ❑ Monitor procurement activities and milestones ❑ Consolidate PPMPs ❑ Act as central channel of communications ❑ Prepare minutes of meetings and resolutions of the BAC 25 BAC Secretariat BAC Secretariat Head’s authority to sign procurement-related documents should be confined to those that are within the scope of her duties and responsibilities under RA 9184 and its IRR, and should exclude those that require the exercise of discretion, consent or approval on matters under the jurisdiction of a different authority. NPM 66-2013 26 BAC Secretariat Section 14 of RA 9184 and its IRR limits the responsibilities of the BAC Secretariat to administrative support functions and primarily ministerial duties. Since the BAC Secretariat is limited to these functions, the conduct of opening and preliminary examination of bids, where discretion and sound judgment is required, cannot be considered as clerical or secretariat nature; therefore, outside the functions of the BAC Secretariat. 27 Technical Working Group ❑ Created by the BAC from a pool of legal, technical and financial experts - those experts outside the procuring entity concerned may be included, i.e. government personnel and officials and consultants from the private sector and academe with proven expertise on the sourcing of goods, works or consulting services. (GPPB Resolution No. 07-2012, GPPB Circular No. 02-2012) ❑ BAC may create separate TWGs to handle different procurements 28 Technical Working Group FUNCTIONS: Assist BAC in the following activities: ❑ Eligibility screening ❑ Bid evaluation ❑ Post-qualification ❑ Review of the Technical Specifications, Scope of Work, and Terms of Reference ❑ Review of Bidding Documents ❑ Shortlisting of consultants ❑ Resolution of Request for Reconsideration (Sec. 12.1, 2016 IRR of RA 9184) 29 Observers ❑ Observers represent the public, the taxpayers who are interested in seeing to it that procurement laws are observed and irregularities are averted. ❑ At least three (3) Observers shall be invited coming from: ✓ COA ✓ Duly recognized private group in the sector or discipline of the particular type of procurement involved ✓ Non-Government Organization (NGO) 30 Observers ❑ During the 1) eligibility checking, 2) shortlisting, 3) pre-bid conference, 4) preliminary examination of bids, 5) bid evaluation, and 6) post- qualification, the BAC must invite, in writing, at least three (3) Observers, at least 5cd before the date of the procurement stage/activity 31 Observers Observers shall be allowed access or be provided with the following documents free of charge upon their request, subject to signing of a confidentiality agreement: 1. Minutes of BAC meetings; 2. Abstract of Bids; 3. Post-qualification summary report; 4. APP and related PPMP; and 5. Opened proposals In all instances, observers shall be required to enter into a confidentiality agreement with the concerned Procuring Entity in accordance with the form prescribed by the GPPB.  3. Discuss the Definition of Terms 32 33 What is Procurement? Procurement refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by procuring entity. (Sec. 5(aa), IRR, R.A. 9184) 34 What is Bid? Bid refers to a signed offer or proposal submitted by a supplier, manufacturer, distributor, contractor or consultant in response to the Bidding Documents. It gives the owner an idea on how much money they should expect to pay a construction management company in order to complete the project. 35 ABC, Bidder Approved Budget for the Contract (ABC). Refers to the budget for the contract duly approved by the HoPE, as provided for in the General Appropriations Act (GAA). Bidder. Refers to a contractor, manufacturer, supplier, distributor and/or consultant who submits a bid in response to the requirements of the Bidding Documents. 36 Who are eligible bidders? 1. Duly licensed Filipino citizens/sole proprietorships 2. Corporations with a least 60% Filipino interest or ownership 3. Cooperatives duly organized under the laws of the Philippines 4. Partnership with at least 60% Filipino interest or ownership 5. Joint Ventures (JVs) with at least 60% Filipino Interest or ownership 6. Foreign bidders (Treaty or International or Executive Agreement) 37 Bidding Documents Bidding Documents. Refers to the documents issued by the PE as the basis for bids, furnishing all information necessary for a prospective bidder to prepare a bid for the Goods, Infrastructure Projects and/or Consulting Services required by the PE. 38 CSE, Competitive Bidding Common-Use Supplies and Equipment (CSE). Refer to those goods, materials and equipment that are used in the day-to-day operations of PE in the performance of their functions. Competitive 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 of opening of bids, evaluation of bids, post- qualification, and award of contract. 39 Procuring Entity Procuring Entity. Refers to any branch, constitutional commission or office agency, department, bureau, office, or instrumentality of the GoP (NGA), including GOCC, GFI, SUC and LGU procuring goods, infrastructure projects and consulting services. 40 Goods ❑ All items, supplies and materials ❑ Including general support services ❑ Needed in the transaction of public businesses or in the pursuit of any government undertaking, project or activity ❑ Whether in the nature of equipment, furniture, stationery, materials or construction, personal property, including non-personal or contractual services, such as: ◼ repair and maintenance of equipment and furniture ◼ trucking, hauling, janitorial and security and other related and analogous services justified by conditions specified in R.A. 9184 and its IRR 41 Infrastructure Projects ❑ construction, improvement, demolition, rehabilitation, repair, restoration or maintenance of civil works components of : ◼ IT projects ◼ Irrigation ◼ flood control and drainage ◼ water supply ◼ sanitation, sewerage and solid waste management ◼ national buildings, hospital buildings, and other related constructions projects of the Government 42 Consulting Services ❑ Refer to services for Infrastructure Projects and other types of projects or activities of the Government requiring adequate external technical and professional expertise that are beyond the capability and/or capacity of the Government to undertake such as, but not limited to: ◼ advisory and review services; ◼ pre-investment or feasibility studies; ◼ design; ◼ construction supervision; ◼ management and related services; and ◼ other technical services or special studies. 43 PhilGEPS The Government Electronic Procurement System (PhilGEPS) ❑ PhilGEPS shall serve as the primary and definite source of information on all government procurement ❑ Created to ensure transparency and efficiency on the government’s process. ❑ Utilized for the procurement of common-used supplies 44 PhilGEPS ❑ PhilGEPS is an online portal where businesses and contractors can access the requirements for government procurement. ❑ Establish to automate the procurement process and to strengthen transparency in government contracts. ❑ Assist suppliers address different issues related to bidding submissions and adherence to the procurement procedure. ❑ Provide access to suppliers and contractors on government bid opportunities 24/7 ❑ Access to copies of electronic bid documents ❑ Provides information on government bid projects that can help market research and business decisions. 45 PhilGEPS Features of the PhilGEPS a) Electronic Bulleting Board b) Registry of Manufacturers, Suppliers, Distributors, Contractors and Consultants c) Electronic Catalogue d) Virtual Store, Electronic Payment, and Electronic Bid Submission e) E-bidding System 4. Discuss and apply the procurement procedures 46  47 Procurement Procedure Pre- Advertisement Preparation of and/or Pre-Bid Procurement Bidding Documents Posting Conference Conference Opening of Opening of Bid Evaluation Technical Proposal Bid Submission Financial Proposal (incl. eligibility docs) Winning Bidder Notice of Award (Post Performance Execution of Post-qualification Security) Contract Contract Notice to Proceed Notice of Award Implementation & Termination  48 Procurement Procedure Pre- Advertisement Preparation of and/or Pre-Bid Procurement Bidding Documents Posting Conference Conference Opening of Opening of Bid Evaluation Technical Proposal Bid Submission Financial Proposal (incl. eligibility docs) Winning Bidder Notice of Award (Post Performance Execution of Post-qualification Security) Contract Contract Notice to Proceed Notice of Award Implementation & Termination 49 I. Preparation of Bidding Documents Form and Contents of Bidding Documents. The Bidding Documents shall be prepared by the Procuring Entity following the standard forms and manuals prescribed by the GPPB. (Sec. 17, R.A. 9184) Bidding Documents Refer to documents issued by the Procuring Entity as the basis for Bids, furnishing all information necessary for a prospective bidder to prepare a bid for the Goods, Infrastructure Projects, and Consulting Services to be provided. (Sec. 5 (c), R.A. 9184 50 II. Invitation to Bid Invitation to Bid a. Pre-procurement Prior to the issuance of the Invitation to Bid, the BAC is mandated to hold a pre-procurement Conference conference on each and every procurement, except those contracts below a certain level or amount specified in the IRR, in which case, the holding of the same is optional. The pre-procurement conference shall assess the readiness of the procurement in terms of confirming the certification of availability of funds, as well as reviewing all relevant documents and the draft Invitation to Bid, as well as consultants hired by the agency concerned and the representative of the end -user. (Sec. 20, R.A. 9180) b. Advertising & In line with the principle of transparency and competitiveness, all Invitations to Bid contracts Contents of Bid- under competitive bidding shall be advertised by the Procuring Entity in such manner and for such length of time as may be necessary under the circumstances, in order to ensure the Posting widest possible dissemination thereof, such as, but not limited to, posting in the Procuring Entity's premises, in newspapers of general circulation, the Phil GEPS and the website of the Procuring Entity, if available. (Sec. 21, R.A. 9180) c. Pre-bid conference For contracts to be bid with an ABC of One Million Pesos (₱1,000,000.00) or more, the BAC shall convene at least one (1) pre-bid conference to clarify and/or explain any of the requirements, terms, conditions, and specifications stipulated in the Bidding Documents. For contracts to be bid with an ABC of less than One Million Pesos (₱1,000,000), pre-bid conferences may be conducted 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. 51 PRE-PROCUREMENT CONFERENCE Purpose: To determine the readiness of the procurement TIMELINE CONDITION PARTICIPANTS Mandatory for projects with ▪ BAC Conducted prior to ABC above 2M for goods ▪ BAC Secretariat ▪ TWG advertisement or posting of and above 5M for Infra ▪ Consultants the Invitation to Bid Projects ▪ End-User ▪ Other Officials  Use of Videoconferencing, Webcasting & 52 Similar Technology Procurement Activities that may be conducted Electornically: 1. Pre-procurement Conference 2. Bid Opening 3. All other Procurement Activities/Meetings GPPB Resolution No. 24-20218 53 II. Invitation to Bid 54 II. Invitation to Bid Importance of ADVERTISEMENT/POSTING OF THE INVITATION TO BID ❑ Signals the start of the bidding process. ❑ Signals the availability of the bidding documents to the prospective bidders. (if not mentioned in the Invitation to Bid) (Sec. 17.3, IRR of RA 9184) 55 II. Invitation to Bid Advertisement and Posting of the Invitation to Bid. In line with the principle of transparency and competitiveness, all invitations to Bid for contracts under competitive bidding shall be advertised by the PE. a) At least once in one (1) newspaper of general circulation, which has been regularly published for at least two (2) years before advertisement date b) Not required for projects with ABC of 2M and below c) Posted continuously for 7 calendar days in the following: 1. PhilGEPS; 2. Website of the PE, if any; and 3. At any conspicuous place in the premises of the PE 56 II. Invitation to Bid Penalty for Non-Posting E.O. No. 662 dated 27 Sept. 2007, as amended by E.O. No. 662-A & 662-B, reiterated posting of all procurement opportunities and awards, and other related information in the PhilGEPS bulletin board. Failure to post the invitation to Bid in the PhilGEPS will hold accountable officials, particularly the BAC, liable for dereliction of duty and conduct grossly prejudicial to the best interest of the service, without prejudice to other charges, whether administrative, civil or criminal, that may be filed under appropriate laws and regulation. 57 III. Receipt and Opening of Bids ❑ BAC opens bid envelopes in public to determine each bidder’s compliance with the documents required to be submitted ❑ BAC shall check the submitted documents of each bidder against a checklist of required documents using a non-discretionary “pass/fail” criteria. ❑ If a bidder submits the required documents, it shall be rated “passed” for that particular requirement ❑ Bids that fail to include any of the requirement or are incomplete or patently insufficient shall be considered as “failed”. 58 III. Receipt and Opening of Bids ❑ Two-Envelope System ▪ 1st Envelope – Eligibility Requirements 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 (Sec. 25.5, 2016 IRR of RA 9184) Category Maximum Period (cd) Goods 45 Infra (50M and below) 50 Infra (above 50M) 65 ❑ For Consulting Services, a maximum period of seventy-five (75) calendar days.  1st Envelope 59 Opening and Evaluation of 1st Envelope TECHNICAL COMPONENT Technical Eligibility Requirements Requirements ▪ Class A ▪ Bid Security - Legal Documents - Technical Documents ▪ Project Requirements - Financial Documents ▪ Omnibus Sworn Statement ▪ Class B - Joint Venture Agreement 60 ELIGIBILITY REQUIREMENTS 1st Envelope Class “A” Class “A” Class “A” Legal Technical Financial Class “B” Documents Documents Documents Net Financial In case of Joint Statement of All Contracting Venture, JV Ongoing Capacity (NFCC) Agreement PhilGEPS Contracts or CLC (for entered into by Certificate of Goods) the parties Registration (Platinum Membership) Statement of Or Single Largest SEC Certificate of Completed Registration/ DTI Contract (SLCC) Registration Mayor’s Business Permit Valid PCAB Tax Clearance License/Special PCAB License for Audited FS JVA (for Infra) 61 Legal Eligibility Requirements (Class “A”) 1st Envelope Mayor’s Permit ❑ Recently expired Mayor’s /Business permit Shall Be Accepted together with the OR. ❑ The renewed permit shall be submitted as a POST-Qualification requirements in accordance with Sec. 34.2 of the 2016 IRR of RA 9184 Tax Clearance ❑ Submission of BIR receipt for renewal of Tax Clearance will not suffice in lieu of a valid Tax Clearance Requirement ❑ Submission of Provisionary Tax Clearance issued by the BIR for bidding purposes is not acceptable form of Tax Clearance (GPPB Resolution No. 01-2014) 62 Technical Eligibility Requirements (Class “A”) 1st Envelope Statement of ALL On-Going Completed Government and Private Contracts ❑ Statement of the prospective bidder of all its ongoing 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. (Sec. 23.1(a)(iv), IRR of RA 9184) ❑ The statement shall include ALL information required in the Bidding Documents 63 Technical Eligibility Requirements (Class “A”) 1st Envelope Statement of Single Largest Completed Contract (SLCC) ❑ Previous contract ❑ Similar to the contract to be bid out (as defined by the Bidding Documents) ❑ Completed within a period as defined by the Bidding Documents ❑ 25% of the ABC (expendable supplies) ❑ 50% of the ABC (non-expendable supplies) - Based on the value of the previous completed contract, as adjusted to current prices using the PSA consumer price index. 64 Technical Eligibility Requirements (Class “A”) 1st Envelope Statement of Single Largest Completed Contract (SLCC) General Rule Exceptions Then require the ff.: 1. Expendable Supplies If, at the outset and a) At least 2 similar ▪ 25% of the ABC after market research, contracts aggregate applying the general amount at least 2. Services and Non- rule will likely result equivalent to expendable supplies to: required percentage; ▪ 50% of the ABC and 1.Failure of bidding; or b) Largest of the similar contracts amounts 2.Monopoly to at least 50% of required percentage 65 Technical Eligibility Requirements (Class “A”) 1st Envelope Statement of Single Largest Completed Contract (SLCC) (Illustration) EXPENDABLE GOODS NON-EXPENDABLE GOODS ABC = P1,000,000.00 ABC = P1,000,000.00 GR: 25% of the ABC GR: 50% of the ABC THUS: Previous contract should be at least THUS: Previous contract should be at least P250,000.00 (required percentage) P500,000.00 (required percentage) EXCEPTION: The aggregate amount of at least 2 EXCEPTION: The aggregate amount of at least 2 similar similar contracts is at least equivalent to the required contracts is at least equivalent to required percentage; percentage; and Largest of the similar contracts and Largest of the similar contracts amounts to at amounts to at least 50% of required percentage. least 50% of required percentage. THUS: 1st contract = P100,000.00 THUS: 1st contract = P300,000.00 2nd contract = P200,000.00 2nd contract = P400,000.00 66 Technical Eligibility Requirements (Class “A”) 1st Envelope NON-ACCEPTANCE OF TEMPORARY PCAB LICENSE Class “A” PCAB License Technical Documents Refers to the 1. License issued by the document issued by Philippine Contractors PCAB to a contractor Accreditation Board who has filed for allowing an entity to renewal of PCAB engage in business as a License before the contractor 30th day of June but 2. Turn-around time for its have not yet been issuance is twenty (20) processed due to high calendar days volume of applicants. 67 Financial Eligibility Requirements (Class “A”) 1st Envelope Audited Financial Statement ❑ Showing, among others, the bidder’s total and current assets and liabilities ❑ Stamped “RECEIVED” by the BIR or its duly accredited and authorized institutions ❑ AFS for preceding calendar year which should not be earlier than two (2) years from the date of bid submission. 68 Financial Eligibility Requirements (Class “A”) 1st Envelope NET FINANCIAL CONTRACTING CAPACITY (NFCC) FOR GOODS AND INFRASTRUCTURE ❑ For goods and infrastructure projects, the NFCC’s K factor shall be fixed at 15, regardless of contract duration ❑ The values of the domestic bidder’s current assets and current liabilities shall be based on the latest Audited Financial Statements submitted to the BIR. 69 NFCC Computation 1st Envelope Net Financial Contracting Capacity (NFCC) = (current assets - current liabilities) (K) MINUS (outstanding, uncompleted portions under ongoing contracts + contracts awarded but not yet started) The constant NFCC’s K factor is set at 15, regardless of contract duration For Goods : Either NFCC or Credit line Certificate (CLC) 70 Committed Line of Credit 1st Envelope ❑ In the case of procurement of Goods, a bidder may opt to submit a committed Line of Credit (CLC) from a universal or commercial bank, in lieu of its NFCC computation. (Sec. 23.1 (a) (viii), 2016 IRR of RA 9184) ❑ If the bidder submits a CLC, it must be at least equal to ten percent (10%) of the ABC to be bid: Provided, that if the same is issued by a foreign Universal or Commercial Bank, it shall be confirmed or authenticated by a local Universal or Commercial Bank. 71 ELIGIBILITY REQUIREMENTS (CLASS “B”) 1st Envelope REQUIREMENTS FOR JOINT VENTURES: Valid joint venture agreement To be submitted by ALL partners To be submitted by Any of the partners ▪ Legal Eligibility Documents (or ▪ Technical Eligibility Documents PhilGEPS Certificates of ▪ Financial Eligibility Documents Registration under Platinum membership category 72 ELIGIBILITY REQUIREMENTS (CLASS “B”) 1st Envelope Bid Security. – All Bids shall be accompanied by a Bid security, which shall serve as guarantee that, after receipt of the Notice of Award, the winning bidders shall enter into contract with the Procuring Entity within the stipulated time and furnish the required performance security. The specific amounts and allowable forms of the Bid security shall be prescribed in the IRR. (Sec. 27, R.A. 9184) Bidders have the option to choose their preferred form of bid security (Sec. 27.2, 2016 IRR of RA 9184) 73 ELIGIBILITY REQUIREMENTS (CLASS “B”) 1st Envelope Form Bid Security Amount Form of Bid Security Bid Security (% = ABC) a) Cash or cashier’s/manager’s check 2% b) Bank guarantee/draft or Irrevocable LC c) Surety bond callable upon demand 5% d) Bid Securing Declaration No percentage required 74 Bid Security Refundable? ❑ Bid securities shall be returned only after the bidder with the Lowest Calculated Responsive Bid has signed the contract and furnished the performance security, except to those declared by the BAC as failed or post-disqualified in accordance with this IRR, upon submission of a written waiver of their right to file a request for reconsideration and/or protest. 75 ELIGIBILITY REQUIREMENTS (CLASS “B”) 1st Envelope Bid Securing Declaration is an additional form of bid security REVISED PROVISION REVISED PENALTIES ▪ A document/undertaking ▪ Penalty of disqualification for signed by the bidder two (2) years from bidding for committing to pay the any procurement contract with corresponding fine and be any PE, upon receipt of the BO. automatically disqualified from ▪ Payment of fine to be bidding of any procurement calculated in accordance with contract of a PE for a period of the rules set. time, upon receipt of the BLACKLISTING ORDER (BO) in the event it violated any of the conditions stated therein. 76 ELIGIBILITY REQUIREMENTS (CLASS “B”) 1st Envelope OMNIBUS SWORN STATEMENT REVISED OMNIBUS SWORN STATEMENT ▪ Non-inclusion in blacklist ▪ Non-payment (directly or ▪ Authenticity of documents indirectly ) any commission, ▪ Verification authority amount, fee, or any form of ▪ Signatory’s authority consideration in relation to any ▪ Disclosure of relations procurement project or activity ▪ Responsibilities of bidders ▪ In case advance payment was ▪ Labor laws and standards made or given, failure to perform or deliver any of the obligations and undertakings in the contract shall be sufficient grounds to constitute criminal liability. 77 III. Receipt and Opening of Bids Modification and Withdrawal of Bids ❑ A bidder may modify his bid, provided that this is done before the deadline for the receipt of bids. The modification shall be submitted in a sealed envelope duly identified as a modification of the original bid and stamped received by the BAC. ❑ A bidder may, through a letter, withdraw his bid or express his intention not to participate in the bidding before the deadline for the receipts of bids. In such case, he shall no longer be allowed to submit another Bid on the same contract either directly or indirectly. 78 IV. Bid Evaluation ❑ A non-discretionary criterion shall be used, which shall include consideration of: 1. Completeness of bids; and 2. Minor arithmetical corrections ❑ Purpose is to determine the Lowest Calculated Bid (LCB), by: 1. Establishing correct calculated prices of bids; and 2. Ranking calculated total bid prices from lowest to highest 79 IV. Bid Evaluation Abstract of Bids ❑ After all bids have been received, opened, examined, evaluated, and ranked, the BAC shall prepare the corresponding Abstract of Bids. All members of the BAC shall sign the Abstract of Bids and attach thereto all the bids with their corresponding bid securities and the minutes or proceedings of the bidding. 80 V. 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.) submitted by the LCB 81 V. Post-Qualification ❑ Post-qualification is the stage where the bidder with the Lowest Calculated Bid, in the case of Goods and Infrastructure Projects, or the Highest Rated Bid, in the case of Consulting Services, undergoes verification and validation whether he has passed all the requirements and conditions as specified in the Bidding Documents. ❑ If the bidder with the Lowest Calculated Bid or Highest Rated Bid passes all the criteria for post-qualification, his Bid shall be considered the "Lowest Calculated Responsive Bid," in the case of Goods and Infrastructure or the "Highest Rated Responsive Bid," in the case of Consulting Services. ❑ However, if a bidder fails to meet any of the requirements or conditions, he shall be "post-disqualified" and the BAC shall conduct the post-qualification on the bidder with the second Lowest Calculated Bid or Highest Rated Bid. ❑ If the bidder with the second Lowest Calculated Bid or Highest Rated Bid is post- disqualified, the same procedure shall be repeated until the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid is finally determined. ❑ In all cases, the contract shall be awarded only to the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. Section 34, R.A. 9184 82 Failure of Bidding Failure of Bidding. - there shall be a failure of bidding if: a. No bids are received; b. No bid qualifies as the Lowest Calculated Responsive Bid; or, c. Whenever the bidder with the highest rated/lowest calculated responsive bid refuses, without justifiable cause to accept the award of contract, as the case may be. Under any of the above instances, the contract shall be re-advertised and re-bid. The BAC shall observe the same process and set the new periods according to the same rules followed during the first bidding. After the second failed bidding, however, the BAC may resort to negotiated procurement as provided for in Section 53 of this Act. Sec. 35, R.A. 9184 83 Failure of Bidding 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 5. Negotiated Procurement 84 Failure of Bidding Failure of Bidding. - there shall be a failure of bidding if: a. No bids are received; b. No bid qualifies as the Lowest Calculated Responsive Bid; or, c. Whenever the bidder with the highest rated/lowest calculated responsive bid refuses, without justifiable cause to accept the award of contract, as the case may be. Under any of the above instances, the contract shall be re-advertised and re-bid. The BAC shall observe the same process and set the new periods according to the same rules followed during the first bidding. After the second failed bidding, however, the BAC may resort to negotiated procurement as provided for in Section 53 of this Act. Sec. 35, R.A. 9184 85 Single Calculate/Rated and Responsive Bid Submission A single calculated/rated and responsive bid shall be considered for award if it falls under of the following circumstances: a. If after advertisement, only one prospective bidder submits a Letter of Intent and/or applies for eligibility check, and meets the eligibility requirements or criteria, after which it submits a bide, which is found to be responsive to the bidding requirements; b. If after the advertisement, more than one prospective bidder applies for eligibility check, but only one bidder meets the eligibility requirements or criteria, after which in submits a bid which is found to be responsive to the bidding requirements; or c. If after the eligibility check, more than one bidder meets the eligibility requirements, but only one bidder submits a bid, and its bid is found to be responsive to the bidding requirements. In all instances, the Procuring Entity shall ensure that the ABC reflects the most advantageous prevailing price for the government. Section 36, R.A. 9184 86 VI. Award, Implementation, and Termination of the Contract ❑ Recommendation of Award through a resolution ❑ Reservation Clause - HOPE approval/disapproval of the recommendation (15 cd) ❑ Remedies of the Bidder – Appeal (3 cd) ❑ Notice of Award ❑ Submission of Additional Documents (10 cd) ❑ Posting of Performance Security ❑ Contract Signing ❑ Notice to Proceed ❑ Posting of the Contract and NTP on Philgeps and PE’s Website 87 Recommendation of Award ❑ The BAC shall recommend award of contract to the LOWEST CALCULATED AND RESPONSIVE BID (LCRB) at submitted price or calculated price, whichever is lower. ❑ The HOPE has 15 cd to decide whether or not to approve or disapprove the recommendation. 88 Reservation Clause ❑ HOPE reserves the right to: ▪ Reject any and all bids; ▪ Declare a failure of bidding; or ▪ Not award the contract. (Sec. 41, IRR of RA 9184) ❑ 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. 89 Notice of Award ❑ In case of approval, the Head of the Procuring Entity or his duly authorized representative shall immediately issue the Notice of Award to the bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid. ❑ Within ten (10) calendar days from receipt of the Notice of Award, the Winning bidder shall formally enter into contract with the Procuring Entity. 90 Award of Contract Conditions ❑ Award of contract is subject to the following conditions within 10 cd from issuance of NOA: ▪ 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 upon compliance with all documentary requirements ▪ If required, approvals by higher authority 91 Performance Security ❑ Posted by winning bidder 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 LCB shall undertake post-qualification 3. Bid security shall be forfeited without prejudice to the imposition of sanctions 92 Performance Security Amount FORM OF PERFORMANCE SECURITY PERFORMANCE SECURITY (% EQUAL TO THE CONTRACT PRICE) a) Cash or cashier’s/manager’s check 5% (Goods ) & 10% (Infra) b) Bank guarantee/draft or Irrevocable LC c) Surety bond callable upon demand 30% 93 Contract Signing ❑ When required, the approving higher authority or his duly authorized representative shall be given a maximum of 20 cd from receipt to approve or disapprove the contract. ❑ In the case of GOCCs, the concerned board or its duly authorized representative shall be given a maximum of 30 cd from receipt to approve or disapprove the contract. 94 Contract Signing ❑ When required, the approving higher authority or his duly authorized representative shall be given a maximum of 20 cd from receipt to approve or disapprove the contract. ❑ In the case of GOCCs, the concerned board or its duly authorized representative shall be given a maximum of 30 cd from receipt to approve or disapprove the contract. 95 Period to Complete Procurement Process PROCUREMENT PROCESS From Opening of Bids to Award of Contract shall NOT EXCEED 3 MONTHS In the case of Jacomille v. Abaya, et al., the petitioner contends that the public respondents failed to comply with the periods provided by law, specifically the 3-month period from the opening of the bids up to the award of the contract under Section 38 of RA 9184. The Supreme Court held that “[t]he different periods provided by RA 9184 within which certain stages of the procurement process must be completed is not merely directory but mandatory.” Thus, it concluded that such irregularity rendered the procurement process null and void. (G.R. No. 212381, 22 April 2015) 96 Notice to Proceed ❑ The concerned PE shall issue the Notice to Proceed (NTP) together with a copy or copies of the approved contract to the successful bidder within 3 cd 7 cd from the date of approval of the contract by the appropriate government approving authority. ❑ All notices called for by the terms of the contract shall be effective only at the time of receipt thereof by the successful bidder. ❑ The BAC Sec shall post the NTP and the approved contract in the PhilGEPS and PE’s websites within 15 cd from the issuance of the NTP. 97 Contract Implementation ❑ IRR of R.A. 9184 Annex “D” - Amendment of Order - Suspension of Work - Liquidated Damages - Advance Payment ❑ IRR of R.A. 9184 Annex “E” - Variation Orders - Additional/ Extra Work Costing - Advance Payment - Progress Payment - Retention Money - Negative Slippage - Liquidated Damages 98 Grounds for Termination of Contract ❑ The Procuring Entity may terminate the contract when the Supplier of Goods fails to deliver at least ten percent (10%) of the contract price; ❑ The Procuring Entity shall terminate the contract when the Supplier of Goods fails to perform any other obligation under the Contract For infrastructure projects ❑ Due to the Contractor’s fault and while the project is on-going, it has incurred negative slippage of fifteen percent (15%) or more ❑ Due to the Contractor’s fault and after the contract time has expired, it has incurred a negative slippage of ten percent (10%) or more in the completion of the work; 99 Grounds for Termination of Contract ❑ The Contractor: i. abandons the contract works, refuses or fails to comply with a valid instruction of the Procuring Entity or fails to proceed expeditiously and without delay despite a written notice by the Procuring Entity; ii. does not actually have on the project site the minimum essential equipment listed on the Bid necessary to prosecute the Works in accordance with the approved work plan and equipment deployment schedule as required for the project; iii. does not execute the Works in accordance with the contract or persistently or flagrantly neglects to carry out its obligations under the contract; iv. neglects or refuses to remove materials or to perform a new work that has been rejected as defective or unsuitable; or v. sub-lets any part of the contract works without approval by the Procuring Entity. 100 Grounds for Termination of Contract ❑ The Contractor: i. abandons the contract works, refuses or fails to comply with a valid instruction of the Procuring Entity or fails to proceed expeditiously and without delay despite a written notice by the Procuring Entity; ii. does not actually have on the project site the minimum essential equipment listed on the Bid necessary to prosecute the Works in accordance with the approved work plan and equipment deployment schedule as required for the project; iii. does not execute the Works in accordance with the contract or persistently or flagrantly neglects to carry out its obligations under the contract; iv. neglects or refuses to remove materials or to perform a new work that has been rejected as defective or unsuitable; or v. sub-lets any part of the contract works without approval by the Procuring Entity. 101 Grounds for Termination of Contract In contracts for Consulting Services: The Procuring Entity shall terminate a contract for default when any of the following conditions attend its implementation: a) Outside of force majeure, the Consultant fails to deliver or perform the Outputs and Deliverables within the period(s) specified in the contract, or within any extension thereof granted by the Procuring Entity pursuant to a request made by the Consultant prior to the delay; b) As a result of force majeure, the Consultant is unable to deliver or perform a material portion of the Outputs and Deliverables for a period of not less than sixty (60) calendar days after the Consultant’s receipt of the notice from the Procuring Entity stating that the circumstance of force majeure is deemed to have ceased; or c) The Consultant fails to perform any other obligation under the contract 102 Other Grounds for Termination of Contract ❑ For convenience ❑ Insolvency of the supplier, contractor or consultant ❑ Unlawful acts ❑ Termination by contractor/consultant 103 Splitting of Contracts Splitting of Government Contracts is not allowed. Splitting 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, particularly the necessity of competitive bidding and the requirements for the alternative methods of procurement. 104 Other Terms and Conditions on Alternative Methods ❑ No procurement shall be undertaken unless in accordance with APP. ❑ Most advantageous price for government should be obtained (Sec. 48.1) ❑ Splitting of contracts is strictly prohibited (Sec. 54.1) ❑ Bid security NOT necessary, except in Limited Source Bidding. ❑ The Uniform Guidelines for Blacklisting of Manufacturers, Suppliers, Distributors, Contractors, and Consultants also apply to Alternative Methods of Procurement. 5. Alternative Modes of Procurement 105 106 General Guidelines ❑ Procuring Entities (PEs) shall adopt Competitive Bidding as the general mode of procurement Basis: ▪ Aims to protect Public Interest…. Best Possible Advantages through Open Competition. ▪ To avoid/preclude suspicion of favoritism and anomalies ❑Alternative Methods shall be resorted ONLY: a. In highly exceptional cases b. To promote economy and efficiency c. Justified by conditions specified in the IRR of RA No. 9184 107 General Guidelines ❑ No procurement shall be undertaken unless it is in accordance with the Approved Procurement Plan (APP) of the PE ❑ The method of procurement to be used shall be as indicated in the approved APP. 108 General Guidelines Prohibition on Splitting of Government Contracts ❑ Division or breaking up of government 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 procurement rules & procedures is prohibited. ❑ However, mere act of dividing a contract into smaller quantities or phases does not automatically constitute splitting of contract. ❑ PEs are authorized to divide a procurement project into lots to attract the maximum competition but must ensure that doing so is not made to circumvent any provisions of RA No. 9184 and its IRR 109 Transparency Requirements for PE ▪ All Pes are reminded of the transparency and accountability requirements under RA No. 9184 and its 2016 IRR, the General Appropriations Act (GAA), Resolutions issued by the Government Procurement Policy Board (BPPB) and other relevant laws, rules and regulations. Posting in Official Website and Social Media Platforms ▪ All agencies and instrumentalities under the Executive Department shall post the Invitation or Request for Submission of Price Quotations in PhilGEPS, on their official websites and social media platforms in an organized manner shall ensure its security and integrity. 110 General Guidelines Most Advantageous Price for Government ❑ In all procurement activities, Pes shall ensure to get the most advantageous price for the government ❑ PEs shall ensure that the objectives & purpose of the contract do not constitute unnecessary, excessive, extravagant or unconscionable expenditure Posting of Notice of Award, Contract and Notice to Proceed ❑ NOA, Contract/PO, including the NTP if necessary shall be posted, within 10 days from their issuance, in the following: PhilGEPS website PE’s website Conspicuous place in PE’s premises ❑ Except for contracts with ABC of P50,000.00 & below. 111 General Guidelines Timeline of Submission of Documentary Requirements ❑ The BAC shall indicate in the RFQ or RFP at what stage of the procurement process to which the documentary requirements must be submitted, i.e., submission of offer/s, evaluation of offer/s or before issuance of Notice of Award. 112 General Guidelines Latest Updates: GPPB Resolution No. 09-2020 Measures for Efficient Conduct of Procurement Activities during the State of Calamity, or Implementation of Community Quarantine or Similar Restrictions ❑ Submission of Procurement Documents through E-mail/Facsimlie Submission of procurement related documents, except for the submission and receipt of bids, through electronic mail or facsimile shall be allowed, subject to the submission of the printed copies as soon as practicable, as determined by the BAC ❑ Maximizing Existing Government Procurement Rules Use of videoconferencing, webcasting and similar technology in the conduct of any of the meetings and determination of quorum by the BAC Use of digital signatures in procurement related documents ❑ Cancellation/Termination of Procurement Activities Without prejudice to Section 35.1 of the 20216 revised IRR of RA No. 9184, the BAC, upon consultation with the end-user unit, shall be allowed to cancel or terminate the conduct of procurement activities for any justifiable reason. 113 Alternative Modes of Procurement 1. It shall be resorted to only in highly exceptional cases provided for in this act. 2. In order to promote economy and efficiency 3. Subject to the prior approval of the HOPE upon recommendation by the BAC. 4. Not in the APP no procurement. 114 CONDITIONS, PROCUREDURES & DOCUMENTARY REQUIREMENTS OF ALTERNATIVE METHODS OF PROCUREMENT 115 Alternative Modes of Procurement ❑ Limited Source Bidding ❑ Direct Contracting ❑ Shopping ❑ Repeat Order ❑ Negotiated Procurement 116 Alternative Modes of Procurement Goods INFRA CONSULTING Negotiated Negotiated Negotiated Procurement Procurement Procurement Limited Source Limited Source Bidding Bidding Direct Contracting Repeat Order Shopping 117 Limited Source Bidding Background ❑ Also known as selective bidding (Sec. 49) ❑ Involves direct invitation to bid by the PE from the list of pre-selected suppliers or consultants with known experience and proven capability on the requirements of the particular contract. ❑ Public Bidding Applicability ❑ Goods ❑ Consulting Services 118 Limited Source Bidding Conditions ❑ Procurement of highly specialized types of Goods and Consulting Services (e.g. sophisticated defense equipment, complex air navigation systems, coal) such that resorting to the competitive bidding method will not likely result in any additional suppliers or consultants participating in the bidding; or ❑ Procurement of major plant components All the suppliers or consultants in the list shall be invited. Preselected Supplier (Coming from authorized government entity e.g. DITC) 119 Limited Source Bidding Pre-selection is based on capability and resources to perform the contract taking into account: - Experience and performance on similar contracts - Personnel, equipment, manufacturing facilities - Financial Position The pre-selected list may be accessed at the GPPB website. 120 Direct Contracting Background ❑ Also known as single source procurement (Sec. 50) ❑ Does not require elaborate bidding documents ❑ The supplier is simply asked to submit a price quotation or pro-forma invoice together wit the conditions of sale. The offer may be accepted immediately or after some negotiations. Applicability ❑ Goods 121 Direct Contracting Those sold by an exclusive dealer/manufacturer; ✓ No other suppliers selling it at lower prices ✓ No suitable substitute can be obtained ✓ Advantageous terms to the government 122 Direct Contracting Conditions 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; b) When the procurement of critical components from a specific supplier is a condition precedent to hold a contractor to guarantee its project performance, in accordance with the provisions of its contract; or c) Those sold by an exclusive dealer or manufacturer which does not have sub- dealers selling at lower prices and for which no suitable substitute can be obtained at more advantageous terms to the GoP. 123 Direct Contracting Documentary Requirements a) Mayor’s Permit b) PhilGEPS Reg. No. c) Income/Business Tax Return (For ABCs above PhP500,000.00 124 Direct Contracting Procedural Guidelines a) Market Study – End-User shall conduct survey of the industry & determine the supply source to justify the need to procure through Direct Contracting. b) Preparation of Request for Quotation (RFQ) – BAC, through its Secretariat, shall prepare the RFQ or pro-forma invoice, & send to identified direct supplier. c) Simplified Negotiations – BAC may conduct simplified negotiations on the terms & conditions of the contract to ensure that supplier is technically, legally and financially capable to undertake the project d) Award of Contract – BAC shall recommend award of contract to the HoPE 125 Repeat Order Background 1. Method of procurement of goods from previous winning bidder (Sec. 51) 2. There is a need to replenish goods procured 3. Under a contract previously awarded through competitive bidding Conditions 1. Contract prices must be the same or lower unit prices than those in the original contract 2. Will not result in splitting of contracts, requisitions or purchase orders 3. May be availed of only within 6 months from the date of Notice to proceed 4. Should not exceed 25% (quantity) of the original contract 5. Original Contract awarded through competitive bidding 6. Must be quantifiable, divisible and consisting of at least four (4) units per item. 126 Repeat Order What stage in the procurement process can repeat order be considered to be within the reglementary period of 6 months? Repeat order may be undertaken any time within the 6-month period reckoned from contract effectivity date which should in no case be later than 7 calendar days from the issuance of the NTP & if such mode of procurement has been duly approved by the HoPE and the previous winning supplier has been notified before the lapse of said period. 127 Shopping Background ▪ Procuring entity simply requests for submission of price quotations for readily available off-the-shelf goods/ordinary/regular equipment (Sec. 52) and Appendix 18) ▪ Or to be procured directly from suppliers of known qualifications ▪ In this case, at least three (3) price quotations from bona fide suppliers shall be obtained. Applicability ▪ Goods Condition 1. Occurrence of an unforeseen contingency provided that it shall not exceed P200,000 for NGAs, GOCCs, GFIs, SUCs, ARG 2. Procurement of ordinary/regular office supplies and equipment not available in the PS-DBM provided the amount shall not exceed P1M for NGA’s, GOCCs, GFIs, SUCs, ARG. 128 Shopping Latest Update CSE Items not available in DBM-PS may be procured from other sources without the need of securing Certificate of Non- Availability of Stocks (CNAS), subject to conditions set forth in GPPB-Resolution No. 17-2020. ▪ Not available in PS-DBM ▪ Amount below P1,000,000.00 ▪ Provided that it will not result in splitting of contracts ▪ Provided, further, that at least three (3) price quotations from suppliers shall be obtained 129 Shopping Shopping A The RFQ may be sent directly to the supplier of known technical, legal and financial qualifications. Sending & receipt of one (1) RFQ will suffice. Posting of the RFQ may be dispensed with. Shopping B BAC shall send RFQs to at least three (3) suppliers of known qualifications, & at least three (3) price quotations must be obtained. 130 Negotiated Procurement ▪ A method of procurement Goods, Infrastructure Projects and Consulting services whereby the Procuring Entity directly negotiates a contract with a technically, legally and financially capable supplier, contractor or consultant. 131 Types of Negotiated Procurement Type of Negotiated Procurement ▪ Two Failed Biddings ▪ Emergency Cases ▪ Take Over Contract ▪ Adjacent or Contiguous ▪ Agency to Agency ▪ Scientific, Scholarly or Artistic Work, Exclusive Technology & Media Services ▪ Highly Technical Consultants ▪ Small Value Procurement ▪ Lease of Real Property & Venue ▪ Defense Cooperation Agreement ▪ NGO Participation ▪ Community Participation ▪ United Nations Agencies, International Organization or International Financing Institutions ▪ Direct Retail Purchase of Petroleum, Fuel, Oil & Lubricant (POL) Products, and Airline Tickets 132 Two Failed Biddings Background ▪ Undertaken when there has been failure of competitive bidding for the second time. Applicability ▪ Goods ▪ Infrastructure Projects ▪ Consulting Services Conditions ▪ No bids were received ▪ All prospective bidders are ineligible ▪ All bids failed to comply with all of the bid requirements, post- qualifications, or there is no successful negation; or ▪ The bidder with the Lowest/Single Calculated Responsive Bid or Highest/Single Rated Responsive Bid refuses, without justifiable cause, to accept the award of contract, and no award is made in accordance with Section 40 of RA 9184 and its IRR 133 Emergency Cases Applicability ▪ Goods ▪ Infrastructure Projects ▪ Consulting Services Conditions ▪ In case of imminent danger to life or property during a state of calamity; ▪ When time is of the essence arising from natural/man-made calamities ▪ Other causes where immediate action is necessary; 1) To prevent damage to or loss of life or property 2) Restore vital public services, infrastructure facilities and other public utilities 134 Emergency Cases ▪ PE should consider appropriate timing or the proximity of time between the actual procurement activity to be conducted and the emergency sought to be addressed. ▪ When the reason or cause for the emergency has already been abated, adoption of competitive bidding shall be considered. ▪ When the ground is based on imminent danger to life during a state of calamity, there must be a declaration by a competent authority of a state of calamity before any procurement activity may be undertaken. 135 Emergency Cases Emergency Procurement Procedure ▪ The End-User unit or the duly authorized official or personnel shall submit a request to the BAC or the HOPE, as the case may be, accompanied by appropriate supporting documents identifying the emergency sought to be addressed, and the necessary goods, civil works or consulting services ( e.g., Technical Specifications, Scope of Work or Terms of Reference) that have to be procured to address the emergency. ▪ The BAC or the End-user unit or any other appropriate bureau, committee, support or procuring unit shall recommend to the HoPE any revision of the Annual Procurement Plan (APP) to cover the Procurement Project that will be subject to Negotiated Procurement (Emergency Cases) under Section 53.2 of the 2016 revised IRR ▪ The BAC or the End-user unit or any other appropriate bureau, committee, support or procuring unit, authorized by the HoPE shall then directly negotiate with a legally, technically, and financially capable supplier, contractor, or consultant. 136 Small Value Procurement ▪ Procurement of a) goods not covered by Shopping under b) infrastructure projects, and c) consulting services, where the amount involved does not exceed the following threshold: i. For NGAs, GOCCs, GFIs, SUCs, and Autonomous Regional Government, One Million Pesos (P1,000,000) ii. For LGUS, in accordance with the following schedule: DOF Classification Province City MUnicipality 1st Class 1,000,000 1,000,000 200,000 2nd Class 1,000,000 1,000,000 200,000 3rd Class 1,000,000 800,000 200,000 4th Class 800,000 600,000 100,000 5th Class 600,000 400,000 100,000 6th Class 400,000 200,000 100,000 In the case of barangays, Fifty Thousand Pesos (P50,000) 6. Disclosure of Relations 137  138 Disclosure of Relations Section 47. Disclosure of Relations. - In addition to the proposed contents of the Invitation to Bid as mentioned under Section 21 of this Act, all bidding documents shall be accompanied by a sworn affidavit of the bidder that he or she or any officer of their corporation is not related to the Head of the Procuring Entity by consanguinity or affinity up to the third civil degree. Failure to comply with the aforementioned provision shall be a ground for the automatic disqualification of the bid in consonance with Section30 of this Act. 139 140 ❑Thank You ! 141