Procurement Management - SLC PDF

PROCUREMENT MANAGEMENT WHAT IS PROCUREMENT?  refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by procuring entity. (Sec. 5(aa), RIRR, R.A. 9184)  Shall also include lease of goods, and real estate. (Sec. 5(aa), RIRR, R.A. 9184)  a proce...

PROCUREMENT MANAGEMENT WHAT IS PROCUREMENT?  refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by procuring entity. (Sec. 5(aa), RIRR, R.A. 9184)  Shall also include lease of goods, and real estate. (Sec. 5(aa), RIRR, R.A. 9184)  a process of sourcing and purchasing goods and services from an external source (supplier/ contractor) LEGAL BASIS OF PROCUREMENT  2016 Revised Implementing Rules and Regulations (IRR) of Republic Act 9184  RA 9184 – Government Procurement Reform Act  Government Procurement Policy Board (GPPB)  Non-Policy Matter (NPM) Opinions  Resolutions  Department Orders  DPWH Procurement Manual (DPM) (DO 151, S.2016) BIDS AND AWARDS COMMITTEE (BAC)  BAC Structure  Each PE shall establish in its head office a single BAC to undertake the functions specified in Section 12 of IRR in order to facilitate professionalization and harmonization of procedures and standards. (Sec 11, 11.1.1 of 2016 RIRR of RA9184)  BAC Composition  BAC Members – at least 5 but not more than 7 members of unquestionable integrity and procurement proficiency 1. Regular Members – at least 3rd ranking permanent employee with knowledge, experience and/or expertise in procurement 2. Provisional Members – has technical expertise / representative from the end-user or implementing unit FUNCTIONS OF THE BAC a) Advertise and/or post the invitation to bid/ request for expressions of interest b) Conduct Pre-procurement and Pre-Bid Conferences c) Determine the eligibility of prospective bidders d) Receive and open bids e) Conduct the evaluation of bids f) Undertake post-qualification proceedings g) Resolve requests for reconsideration h) Recommend award of contracts to the HoPE or his duly authorized representative i) Recommend the imposition of sanctions j) Recommend use of Alternative Methods of Procurement k) Conduct periodic assessment of procurement processes and procedures to streamline procurement activities l) Perform such other related functions as necessary, including creation of Technical Working Group PROCUREMENT PROCESS – CIVIL WORKS (INFRASTRUCTURE)  PRE-PROCUREMENT CONFERENCE  ADVERTISEMENT/INVITATION TO BID  ISSUANCE OF BIDDING DOCUMENTS  PRE-BID CONFERENCE  SUPPLEMENTAL BID BULLETIN  SUBMISSION/RECEIPT/OPENING OF BIDS  ELIGIBILITY CHECK  BID EVALUATION  POST-QUALIFICATION PRE-PROCUREMENT CONFERENCE  Prior to advertisement/ Invitation to Bid/ Request for Expression of Interest  Confirm the description and scope of the contract, the ABC, and the contract duration;  Ensure that the procurement is in accordance with the project and annual procurement plans; PRE-PROCUREMENT CONFERENCE Determine the readiness of the procurement at hand, including, among other aspects, the following:  Availability of appropriations and programmed budget for contract  Completeness of the Bidding Documents and their adherence to relevant general procurement guidelines;  Completion of the detailed engineering according to the prescribed standards in case of infrastructure projects; and  Confirmation of the availability of ROW and the ownership of affected properties. PRE-PROCUREMENT CONFERENCE  Review, modify and agree on the criteria for eligibility screening, evaluation, and post-qualification;  Review and adopt the procurement schedule, including the deadlines and timeframes, for the different activities; and  Reiterate and emphasize the importance of confidentiality, in accordance with Section 19 of this IRR, and the applicable sanctions and penalties, as well as agree on measures to ensure compliance with the foregoing. ADVERTISEMENT/ INVITATION TO BID What is the Invitation to Bid (IB)?  It serves as the notice to the public and all interested parties of the procurement and bidding opportunities at the Department. Why do we post? It ensures transparency of the procurement process, the widest possible dissemination to increase the number of prospective bidders, and intensify competition for the procurement activity project. POSTINGS 1. Philippine Government Electronic Procurement System (PhilGEPS) Website 2. Procuring Entity’s Website (DPWH Website) 3. Conspicuous place reserved for the purpose of advertising procurement opportunities ISSUANCE OF BIDDING DOCUMENTS  The bidding documents must be made available to the prospective bidders from the time the ITB is advertised until the deadline for the submission and receipts of bids. (Available on the first day of advertisement).  The BAC must issue Bidding Documents to Observers free of charge. BIDDING DOCUMENT FEE PRE-BID CONFERENCE  It is the initial forum where the Department’s representatives and the prospective bidders discuss the different aspects of the procurement at hand.  The ground rules that will govern the procurement are discussed during the conference. In particular, the participants discuss the legal, technical and financial components of the contract to be bid.  This is also an opportunity for the prospective bidders to request for clarifications about the bidding documents for those who have already purchased bid documents.  Failure to conduct a pre-bid conference for the Project amounts to a violation of a mandatory provision of law, which will render the procurement activity void under Art. 5 of the Civil Code of the Philippines. (NPM 48- 2013) WHEN TO CONDUCT A PRE-BID CONFERENCE? 1. ABC 1 Million Pesos or more - (Mandatory).  at least one (1) pre-bid conference to clarify and/or explain any of the requirements, terms, conditions, and specifications 2. ABC less than 1M, conducted at the discretion of the BAC - (Discretionary) * It should be conducted 12 calendar days (cds) before deadline for submission and receipt of bids Statements made during the conference must be included in the Supplemental/Bid Bulletin SUPPLEMENTAL/ BID BULLETIN Reference: NPM 46-2013  S22.5.2 RA 9184 IRR allows PEs to issue Supplemental/Bid Bulletins upon their initiative for the purpose of clarifying or modifying any provision in the Bidding Documents, including the IB.  Accordingly, PE has the authority to revise or amend any statement in the Bidding Documents, including the IB, specifically when such revision or amendment is made for the purpose of clarifying or modifying its provisions.  Supplemental/Bid Bulletins must be posted in the PhilGeps and at the PEs website, in order to address aspects of competition and transparency. SUBMISSION/RECEIPT/OPENING OF BIDS Bidders shall submit bids through their duly authorized representative using the forms specified in the Bidding Documents in two (2) separate sealed bid envelopes on or before the scheduled date and time of Submission/ Receipt/ Opening of Bids 1ST Envelope – Technical Component 2nd Envelope – Financial Component Reference: NPM 55-2013  Bidders are no longer required to submit a written Letter of Intent (LOI) together with their application for eligibility.  Instead, bidders only have to submit their bids not later than the deadline for the submission and receipt of bids, which can be extended or rescheduled together with the opening of bids as provided in sec. 29 of the IRR of RA 9184. ELIGIBILITY  It is a procedure to determine if a prospective bidder is eligible to participate in the bidding at hand. In determining a prospective bidder’s eligibility, the BAC shall use non-discretionary “pass/fail” criteria as stated in the ITB. Essentially, this means that the absence, incompleteness or insufficiency of a document shall make a prospective bidder ineligible to bid for the particular procurement. BID AS READ Lowest bid “as read” during bid opening may not necessarily be the bidder with the Lowest Calculated Bid (LCB) until this is confirmed during detailed bid evaluation. (NPM 111-2014) BID EVALUATION  Main purpose is to determine the Lowest Calculated Bid (LCB) Ceiling for Bid Prices: The ABC shall be the upper limit or ceiling for acceptable bid prices. If a bid price, as evaluated and calculated in accordance with this IRR, is higher than the ABC, the bidder submitting the same shall be automatically disqualified. There shall be no lower limit or floor on the amount of the award. (2016 Revised IRR of RA 9184) Detailed Evaluation: a. Completeness of Bid b. Arithmetical Corrections c. Prices shall be inclusive of all taxes BID EVALUATION  In case of discrepancies between: (a) bid prices in figures and in words, (b) total price per item and unit price for the item as extended or multiplied by the quantity of that item, (c) stated total price and the actual sum of prices of component items, (d) unit cost in the detailed estimate and unit cost in the bill of quantities  Bids shall then be ranked in the ascending order of their total calculated bid prices, as evaluated and corrected for computational errors, and other bid modifications, to identify the Lowest Calculated Bid. Total calculated bid prices, as evaluated and corrected for computational errors, and other bid modifications, which exceed the ABC shall be disqualified. DETAILED BID EVALUATION No contact rule: during the bid evaluation stage, the BAC, BAC Secretariat, TWG shall not entertain clarification from the bidders, neither shall they initiate communications with the bidders regarding the evaluation of the bids. BAC, thru Secretariat, may request for clarification of bid as long as it is in writing Determine the Lowest Calculated Bid (LCB) by: Establishing correct calculated prices of bids Ranking calculated total bid prices from lowest to highest POST-QUALIFICATION  is the process of verifying, validating and ascertaining all the statements made and documents submitted by the bidder with the lowest calculated bid (LCB), which includes ascertaining the said bidder’s compliance with the legal, financial and technical requirements of the bid.  Within five (5) calendar days from receipt by the bidder of the notice from the BAC that the bidder has the Lowest Calculated Bid or Highest Rated Bid, the bidder shall submit to the BAC its latest income and business tax returns, and other appropriate licenses and permits required by law and stated in the Bidding Documents. Failure to submit any of the post-qualification requirements on time, or a finding against the veracity thereof, shall disqualify the bidder for award: Provided, That in the event that a finding against the veracity of any of the documents submitted is made, it shall cause the forfeiture of the Bid Security in accordance with Section 69 of this IRR.(a) POST-QUALIFICATION  a) Legal Requirements. licenses, certificates, permits, and agreements submitted by the bidder, and the fact that it is not included in any “blacklist” as provided in Section 25.3 of this IRR. For this purpose, the GPPB shall maintain a consolidated file of all “blacklisted” suppliers, contractors, and consultants. The 2016 Revised Implementing Rules and Regulations 80  b) Technical Requirements.  i) bidder’s competence and experience, and the competence and experience of the bidder’s key personnel to be assigned to the project,  ii) capacities and operating conditions, of equipment units to be owned/leased/under purchase by the bidder  performance of the bidder in its ongoing government and private contracts  a. Negative slippage of at least fifteen percent (15%) in any one project or a negative slippage of at least ten percent (10%) in each of two (2) or more contracts;  b. Failure of the contractor to commence repair works on ongoing contracts within seven (7) calendar days and to complete them within thirty (30) calendar days after receipt of the Procuring Entity's notice of defects and deficiencies;  c. Failure of the contractor to commence repair works on contracts with pending certificates of acceptance within thirty (30) calendar days and complete them within ninety (90) days after receipt of the Procuring Entity's notice of defects and failures; or  d. Substandard quality of work as per contract plans and specifications, or unsatisfactory performance of the contractor’s obligations as per contract terms and conditions, at the time of inspection. If the BAC verifies any of these deficiencies to be due to the contractor’s fault or negligence, the agency shall disqualify the contractor from the award, for the procurement of Infrastructure Projects.  iii) Verification and/or inspection and testing of the goods/product, aftersales and/or maintenance capabilities, in applicable cases, as well as checking the following: a. Delay in the partial delivery of goods amounting to ten percent (10%) of the contract price in its ongoing government and private contracts; b. If any of these contracts shows the bidder’s failure to deliver or perform any or all of the goods or services 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 supplier prior to the delay, and such failure amounts to at least ten percent (10%) of the contract price; or The 2016 Revised Implementing Rules and Regulations 81 c. Unsatisfactory performance of the supplier’s obligations as per contract terms and conditions at the time of inspection. If the BAC verifies any of these deficiencies to be due to the bidder's fault or negligence, the BAC shall disqualify the bidder from the award, for the procurement of Goods.  iv) Ascertainment of the authenticity of the bid security and its correctness as to type, amount, form and wording, and validity period, as required in the Bidding Documents.  c) Financial Requirements. To verify, validate and ascertain the bid price proposal of the bidder and, whenever applicable, the required committed Line of Credit in the amount specified and over the period stipulated in the Bidding Documents, or the bidder’s NFCC to ensure that the bidder can sustain the operating cash flow of the transaction. (a)