2016 Revised IRR of RA No. 9184 (July 2023) PDF

The 2016 Revised Implementing Rules and Regulations – Annex “A” THE 2016 REVISED IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 9184 (Updated as of 03 July 2023) 9  The 2016 Revised Implementing Rules and Regulations – A...

The 2016 Revised Implementing Rules and Regulations – Annex “A” THE 2016 REVISED IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 9184 (Updated as of 03 July 2023) 9  The 2016 Revised Implementing Rules and Regulations – Annex “A” THE 2016 REVISED IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 9184, OTHERWISE KNOWN AS THE GOVERNMENT PROCUREMENT REFORM ACT (Updated as of 03 July 2023) RULE I – GENERAL PROVISIONS Section 1. Short Title and Purpose This Updated 2016 Revised Implementing Rules and Regulations,2 hereinafter called the IRR, is promulgated pursuant to Section 75 of Republic Act No. (R.A.) 9184, otherwise known as the “Government Procurement Reform Act,” for the purpose of prescribing the necessary rules and regulations for the modernization, standardization, and regulation of the procurement activities of the Government of the Philippines (GoP).(a) Section 2. Declaration of Policy The provisions of this IRR are in line with the commitment of the GoP to promote good governance and its effort to adhere to the principles of transparency, accountability, equity, efficiency, and economy in its procurement process. It is the policy of the GoP that procurement of Goods, Infrastructure Projects and Consulting Services shall be competitive and transparent, and therefore shall undergo competitive bidding, except as provided in Rule XVI of this IRR.(a) Section 3. Governing Principles on Government Procurement 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. 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. 2 The 2016 revised IRR was approved by the Government Procurement Policy Board (GPPB) through its Resolution 13-2016, dated 9 August 2016, and published in the Official Gazette on 29 August 2016. It took effect sixty (60) days after its publication or on 28 October 2016. 10  The 2016 Revised Implementing Rules and Regulations – Annex “A” Section 4. Scope and Application of the IRR 4.1 This IRR shall apply to all procurement of any branch, agency, department, bureau, office, or instrumentality of the GoP, including government-owned and/or -controlled corporations (GOCCs), government financial institutions (GFIs), state universities and colleges (SUCs), and local government units (LGUs). 4.2 Any Treaty or International or Executive Agreement to which the GoP is a signatory affecting the subject matter of the Act and this IRR shall be observed. In case of conflict between the terms of the Treaty or International or Executive Agreement and this IRR, the former shall prevail. 4.3 Unless the Treaty or International or Executive Agreement expressly provides another or different procurement procedures and guidelines, R.A. 9184 and this IRR shall apply to Foreign-funded Procurement of Goods, Infrastructure Projects, and Consulting Services by the GoP. The GoP negotiating panels shall, as its default position, adhere to R.A. 9184 and this IRR, or at the very least, selection through competitive bidding, in all Foreign-funded Procurement. If the Treaty or International or Executive Agreement states otherwise, then the negotiating panel shall ensure that the reasons for the adoption of a different rule or method of procurement are clearly reflected in the records of discussion.(a) 4.4 This IRR shall not apply to the following activities: a) Procurement of Goods, Infrastructure Projects and Consulting Services funded from Foreign Grants covered by R.A. 8182, as amended by R.A. 8555, entitled “An Act Excluding Official Development Assistance (ODA) from the Foreign Debt Limit in order to Facilitate the Absorption and Optimize the Utilization of ODA Resources, Amending for the Purpose Paragraph 1, Section 2 of R.A. 4860, As Amended,” unless the GoP and the foreign grantor/foreign or international financing institution agree otherwise; b) Acquisition of real property which shall be governed by R.A. 107523,3 entitled “An Act Facilitating the Acquisition of Right-Of-Way Site or Location for National Government Infrastructure Projects,” and other applicable laws, rules and regulations; and c) Public-Private sector infrastructure or development projects and other procurement covered by R.A. 6957, as amended by R.A. 7718, entitled “An Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector, and for Other Purposes,” as amended: Provided, however, That for the portions financed by the GoP, in whole or in part, the provisions of the Act and this IRR shall apply.(a) 4.5 The following are not procurement activities under R.A. 9184 and this IRR: a) Direct financial or material assistance given to beneficiaries in accordance with the existing laws, rules and regulations, and subject to the guidelines of the concerned agency; 3 Repealed R.A. No. 8974. 11  The 2016 Revised Implementing Rules and Regulations – Annex “A” b) Participation in local or foreign scholarships, trainings, continuing education, conferences, seminars or similar activities that shall be governed by applicable COA, CSC, and DBM rules; c) Lease of government-owned property as lessor for private use; d) Hiring of Job Order Workers; e) Joint Venture under the revised NEDA Guidelines (GOCC and Private Entities), and Joint Venture Agreements by LGU with Private entities; and f) Disposal of Property and Other Assets of the Government.(n) Section 5. Definition of Terms For purposes of this IRR, the following terms or words and phrases shall mean or be understood as follows: a) Act. Refers to R.A. 9184, entitled “An Act Providing for the Modernization, Standardization and Regulation of the Procurement Activities of the Government and for other Purposes,” otherwise known as the Government Procurement Reform Act. b) 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), continuing, and automatic appropriations, in the case of national government agencies (NGAs); the corporate budget for the contract approved by the governing board, pursuant to Executive Order (E.O). No. 518, s. 1979, in the case of GOCCs and GFIs, and R.A. 8292 in the case of SUCs; the budget approved by the Sanggunian through an appropriations ordinance in the case of LGUs. For multi-year contracts, for which a Multi-Year Obligational Authority (MYOA) or an equivalent document is required, the ABC shall be that incorporated in the project cost reflected in the MYOA or equivalent document. For Foreign-funded Procurement, the ABC refers to the cost estimate prepared by the Procuring Entity and approved by the foreign government/foreign or international financing institution as specified in the Treaty or International or Executive Agreement.(a) c) Bid. Refers to a signed offer or proposal to undertake a contract submitted by a bidder in response to and in consonance with the requirements of the Bidding Documents. For purposes of, and throughout this IRR, the term “Bid” shall be equivalent to and be used interchangeably with “Proposal” and “Tender.”(5.d) d) Bidder. Refers to a contractor, manufacturer, supplier, distributor and/or consultant who submits a bid in response to the requirements of the Bidding Documents.(5.ea) e) Bidding Documents. Refer to the 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/or Consulting Services required by the Procuring Entity.(5.f) f) Bids and Awards Committee (BAC). Refers to the Committee established in 12  The 2016 Revised Implementing Rules and Regulations – Annex “A” accordance with Rule V of this IRR.(5.c) g) Common-Use Supplies and Equipment (CSE). Refer to those goods, materials and equipment that are used in the day-to-day operations of Procuring Entities in the performance of their functions. For the purpose of this IRR, CSE shall be those included in the Electronic Catalogue of the PhilGEPS.(a) h) 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 and opening of bids, evaluation of bids, post-qualification, and award of contract. For purposes of, and throughout this IRR, the terms “Competitive Bidding” and “Public Bidding” shall have the same meaning and shall be used interchangeably. i) Consulting Services. Refer to services for infrastructure projects and other types of projects or activities of the GoP requiring adequate external technical and professional expertise that are beyond the capability and/or capacity of the GoP to undertake such as, but not limited to: (i) advisory and review services; (ii) pre- investment or feasibility studies; (iii) design; (iv) construction supervision; (v) management and related services; and (vi) other technical services or special studies. General principles on Consulting Services are provided for in Annex “B” of this IRR. j) Domestic Bidder. Refers to any person or entity offering unmanufactured articles, materials or supplies of the growth or production of the Philippines, or manufactured articles, materials, or supplies manufactured or to be manufactured in the Philippines substantially from articles, materials, or supplies of the growth, production, or manufacture, as the case may be, of the Philippines. k) Domestic Entity. Refers to an individual or a sole proprietor who is a citizen of the Philippines or a partnership, corporation, cooperative, or association duly organized under the laws of the Philippines and of which at least seventy five percent (75%) of the interest or outstanding capital stock belongs to citizens of the Philippines, habitually established in business and habitually engaged in the manufacture or sale of the merchandise covered by his bid, and the business has been in existence for at least five (5) consecutive years prior to the advertisement and/or posting of the Invitation to Bid.4 l) Executive Agreements. Refer to International Agreements except that they do not require legislative ratification. m) Expendable Supplies. Refer to articles which are normally consumed in use within one (1) year or converted in the process of manufacture or construction, or those having a life expectancy of more than one (1) year but which shall have decreased substantially in value after being put to use for only one (1) year (e.g., medicines, stationery, fuel, and spare parts). n) Foreign Bid. Refers to any offer of articles, materials or supplies not manufactured or not to be manufactured in the Philippines, substantially from articles, materials, or supplies of the growth, production, or manufacture, as the case may be, of the Philippines. 4 Preference to domestic entities, provided for under Commonwealth Act No. 138, dated 7 November 1936, which has been expressly repealed by R.A. No. 10667, or the “Philippine Competition Act of 2015” shall no longer be applied. 13  The 2016 Revised Implementing Rules and Regulations – Annex “A” o) Foreign-funded Procurement. Refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by the GoP which are wholly or partly funded by Foreign Loans or Grants pursuant to a Treaty or International or Executive Agreement. For purposes of, and throughout this IRR, the term “foreign- funded procurement” shall have the same meaning as and shall be used interchangeably with “foreign-funded projects” or “foreign-assisted projects.” p) Foreign Grants. Refer to grants with no repayment obligations and are provided in monetary form, goods, works, and consultancy services, among others. q) Foreign Loans. Refer to loans, credits, and indebtedness with private foreign banks or with foreign governments, agencies, or instrumentalities of such foreign governments, foreign financial institutions, or other international organizations with whom, or belonging to countries with which, the Philippines has diplomatic relations, as may be necessary and upon such terms and conditions as may be agreed upon, to enable the GoP to finance, either directly or through any government office, agency or instrumentality or any government-owned and controlled corporation, industrial, agricultural or other economic development purposes or projects authorized by law. r) Goods. Refer to all items, supplies, materials and general support services, except Consulting Services and infrastructure projects, which may be 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 for construction, or personal property of any kind, including non-personal or contractual services, such as, the repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services, as well as procurement of materials and supplies provided by the Procuring Entity for such services. The term “related” or “analogous services” shall include, but is not limited to, lease of office space, media advertisements, health maintenance services, and other services essential to the operation of the Procuring Entity.(a) s) Government Procurement Policy Board (GPPB). Refers to the Body created in accordance with Rule XX of this IRR. t) Head of the Procuring Entity (HoPE). Refers to: (i) the head of the agency or body, or his duly authorized official, for NGAs and the constitutional commissions or offices, and other branches of government; (ii) the governing board or its duly authorized official, for GOCCs, GFIs and SUCs; or (iii) the local chief executive, for LGUs: Provided, however, That in an agency, department, or office where the procurement is decentralized, the head of each decentralized unit shall be considered as the HoPE, subject to the limitations and authority delegated by the head of the agency, department, or office.(a) u) Infrastructure Projects. Include the construction, improvement, rehabilitation, demolition, repair, restoration or maintenance of roads and bridges, railways, airports, seaports, communication facilities, civil works components of information technology projects, irrigation, flood control and drainage, water supply, sanitation, sewerage and solid waste management systems, shore protection, energy/power and electrification facilities, national buildings, school buildings, hospital buildings, and other related construction projects of the government. For purposes of, and throughout this IRR, the term “Infrastructure Projects” shall have the same meaning as, and shall be used interchangeably with, “civil works” or “works.” 14  The 2016 Revised Implementing Rules and Regulations – Annex “A” v) International Agreement. Refers to a contract or understanding, regardless of nomenclature, entered into between the GoP and another government or foreign or international financing institution in written form and governed by international law, whether embodied in a single instrument or in two (2) or more related instruments. w) Non-expendable Supplies. Refer to articles which are not consumed in use and ordinarily retain their original identity during the period of use, whose serviceable life is more than one (1) year and which add to the assets of the GoP (e.g., furniture, fixtures, transport and other equipment). For this IRR, the term non-expendable supplies shall include semi-expendable property.(a) x) Philippine Government Electronic Procurement System (PhilGEPS). Refers to the electronic System as provided in Section 8 of this IRR. For purposes of, and throughout this IRR, the term “PhilGEPS” shall have the same meaning as, and shall be used interchangeably with, “G-EPS” referred to in the Act. y) Philippine National. Refers to an individual or a sole proprietor who is a citizen of the Philippines or a partnership, corporation, or association organized under the laws of the Philippines of which at least sixty percent (60%) of the capital or interest is owned by citizens of the Philippines, or cooperatives registered with the Cooperative Development Authority.(a) z) Portal. Refers to a website that integrates a wide variety of contents for the purpose of attracting and aggregating multiple users together in a central virtual space. aa) Procurement. Refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by the Procuring Entity. In case of projects involving mixed procurements, the nature of the procurement, i.e., Goods, Infrastructure Projects or Consulting Services, shall be determined based on the primary purpose of the contract. Procurement shall also include the lease of goods and real estate. With respect to real property, its procurement shall be governed by the provisions of R.A. 10752 and other applicable laws, rules and regulations.(a) bb) 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. cc) Treaties. Refer to international agreements entered into by the GoP which require legislative ratification after executive concurrence. dd) Universal or Commercial Banks. Refer to universal or commercial banks duly authorized under R.A. 8791, otherwise known as “The General Banking Act of 2000.” Section 6. Standardization of Procurement Process and Forms 6.1 To systematize the procurement process, avoid confusion and ensure transparency, the GPPB shall pursue the development and approval of generic procurement manuals, standard Bidding Documents, and forms, including those to be used for major procurement like drugs and textbooks.(a) 6.2 Procuring Entities are mandated to use the Generic Procurement Manuals (GPMs), Philippine Bidding Documents (PBDs), and other standard forms issued by the GPPB. 15  The 2016 Revised Implementing Rules and Regulations – Annex “A” However, whenever necessary, to suit the particular needs of the Procuring Entity, modifications may be made, particularly for major and specialized procurement, subject to the approval of the GPPB.(a) RULE II – PROCUREMENT PLANNING Section 7. Procurement Planning and Budgeting Linkage 7.1 All procurement shall be within the approved budget of the Procuring Entity and should be meticulously and judiciously planned by the Procuring Entity. Consistent with government fiscal discipline measures, only those considered crucial to the efficient discharge of governmental functions shall be included in the Annual Procurement Plan (APP). For purposes of this IRR, a procurement project shall be considered crucial to the efficient discharge of governmental functions if it is required for the day-to-day operations or is in pursuit of the principal mandate of the Procuring Entity concerned. The APP shall include provisions for foreseeable emergencies based on historical records. In the case of Infrastructure Projects, the APP shall consider the appropriate timing/phasing of related project activities, such as, engineering design and acquisition of right-of-way site or location, to reduce/lower project costs.(a) 7.2 No procurement shall be undertaken unless it is in accordance with the approved APP, including approved changes thereto. The APP must be consistent with the duly approved yearly budget of the Procuring Entity and shall bear the approval of the HoPE or second-ranking official designated by the HoPE to act on his behalf.(a) 7.3 The APP shall be formulated and revised only in accordance with the following guidelines: 7.3.1 Upon issuance of the budget call in the case of NGAs, SUCs, Constitutional Commissions or Offices, or similar document for GOCCs, GFIs and LGUs, the Procuring Entity shall prepare its indicative APP for the succeeding calendar year to support its proposed budget taking into consideration the budget framework for that year in order to reflect its priorities and objectives.(a) 7.3.2 In the preparation of the indicative APP, the end-user or implementing units of the Procuring Entity shall formulate their respective Project Procurement Management Plans (PPMPs) for their different programs, activities, and projects (PAPs). The PPMP shall include: a) information on whether PAPs will be contracted out, implemented by administration in accordance with the guidelines5 issued by the GPPB, or consigned; b) the type and objective of contract to be employed; c) the extent/size of contract scopes/packages; d) the procurement methods to be adopted, and indicating if the procurement tasks are to be outsourced as provided in Section 7.3.3 of this IRR; 5 Refer to Appendix 1 for the Revised Guidelines for the Implementation of Infrastructure Projects By Administration. 16  The 2016 Revised Implementing Rules and Regulations – Annex “A” e) the time schedule for each procurement activity and for the contract implementation; and f) the estimated budget for the general components of the contract. For purposes of this Section, consignment refers to an arrangement where the following requisites are present: (a) delivery of goods by their owner (consignor), without sale, to a government agency (consignee); (b) consignee must try to sell the goods and remit the price of the sold goods to the consignor; (c) consignee accepts without any liability except for failure to reasonably protect them from damage; (d) no disbursement of government funds is involved; and (e) at terms not disadvantageous to the GoP. Based on the specific needs, the end-user or implementing units of the Procuring Entity shall be responsible for the preparation of all documents necessary for the procurement activity, including but shall not be limited to, the technical specifications, scope of work, or terms of reference. (a) 7.3.3 In order to hasten project implementation, Procuring Entities which may not have the proficiency or capability to undertake a particular procurement, as determined by the HoPE concerned, may outsource the procurement tasks by: a) Requesting other GoP agencies to undertake such procurement for them, through the execution of a memorandum of agreement containing specific arrangements, stipulations and covenants, in accordance with the relevant issuance of the GPPB and6 government budgeting, accounting and auditing rules;(a) As long as the procurement process was conducted in accordance with RA 9184, its IRR and associated issuances, recommendations to award a contract made by the government procurement agent shall be accepted by the requesting agency, subject to Section 41 of this IRR.7(n) b) Engaging private procurement agents to directly undertake the procurement for them, subject to the guidelines to be issued by the GPPB; or c) Recruiting or engaging consultants to assist them directly and/or train their staff in the management of the procurement function.(53.6a) 7.3.4 The PPMPs shall then be submitted to the Procuring Entity’s Budget Office for evaluation in order to ensure consistency with the Procuring Entity's budget proposal and compliance with existing budgeting rules. The PPMPs included in the budget proposal shall be forwarded to the BAC Secretariat for consolidation into an indicative APP, and to the BAC for final recommendation of the appropriate procurement modality. For this purpose, the indicative APP shall include the following: a) Name of Procurement Project; 6 As amended by GPPB Resolution No. 07-2022, dated 27 October 2022, published in the Philippine Star on 19 May 2023. 7 As amended by GPPB Resolution No. 21-2017, dated 30 May 2017, published in the Philippine Daily Inquirer on 20 November 2017. 17  The 2016 Revised Implementing Rules and Regulations – Annex “A” b) Procurement Management Office (PMO)/end-user/implementing unit; c) Method of Procurement; d) Schedule of identified procurement activities as reflected in the APP form approved by the GPPB;8 e) Source of funds; f) Indicative ABC; and g) Other relevant descriptions of the project, if applicable. The indicative APP and budget proposal shall be simultaneously submitted to the HoPE and/or other oversight bodies for approval.(a) 7.3.5 As soon as the GAA, corporate budget, or appropriation ordinance, as the case may be, becomes final, the end-user or implementing units shall revise and adjust the PPMPs to reflect the budgetary allocation for their respective PAPs. The revised PPMPs shall be submitted to the BAC, through its Secretariat, for the final recommendation of the methods of procurement. The indicative APP shall then be revised and approved in accordance with Section 7.2 of this IRR. The APP shall be submitted to the GPPB on or before the end of January of the budget year, and shall be posted in accordance with E.O. 662, series of 2007, as amended.(a) 7.4 Changes to the individual PPMPs and the consolidated APP may be undertaken every six (6) months or as often as may be required by the HoPE. The respective end-user or implementing units of the Procuring Entity shall be responsible for the changes to the PPMPs, while the BAC Secretariat shall be responsible for the consolidation of these PPMPs into an APP, which shall be subject to the approval of the HoPE. Changes in the APP, if any, for the budget year shall be submitted to the GPPB in July of the current budget year, and in January of the following budget year.(a) 7.5 Except for procurement projects and renewal of contracts for regular and recurring services9 undertaken through early procurement activities (EPA), the ABC as reflected in the approved APP shall be at all times consistent with the appropriations for the project authorized in the GAA, continuing, and automatic appropriations, the corporate budget, and the appropriations ordinance, as the case may be.10(a) For EPA, the posted ABC may be higher than the approved budget as long as the contract price to be awarded is within the amount authorized in the GAA, reenacted budget, appropriations ordinance, corporate budget, or loan agreement, as the case may be.11(n) 7.6 To facilitate the immediate implementation of procurement of Goods, Infrastructure Projects or Consulting Services, and renewal of contract for regular and recurring 8 Refer to Appendix 2 for the Annual Procurement Plan (APP) format. 9 As amended by GPPB Resolution No. 06-2022, dated 12 September 2022, published in the Philippine Star on 13 April 2023. 10 As amended by GPPB Resolution No. 14-2019, dated 17 July 2019, published in the Official Gazette on 26 August 2019. 11 Ibid. 18  The 2016 Revised Implementing Rules and Regulations – Annex “A” services,12 even pending approval of the GAA, corporate budget, appropriations ordinance or loan agreements in the case of FAPs, as the case may be, and notwithstanding Section 7.2 hereof, the Procuring Entity may undertake EPA.13(a) Procuring Entities are encouraged to undertake EPA to ensure the timely delivery of goods, implementation of infrastructure projects, rendition of consultancy services, or renewal of contract for regular and recurring services.14 The conduct of EPA for nationally-funded procurement projects may commence as early as the submission of the NEP to Congress, usually in July. No EPA may be conducted without an indicative APP duly approved by the HoPE and the MYCA issued by the DBM, in the case of multi- year projects. This will facilitate the awarding or renewal15 of contracts upon approval and effectivity of their respective funding sources or the reenactment of the previous year’s budget which constitutes the current year’s authorized budget, when authorized by the Constitution, law or rules.16(a) For EPA, the indicative APP shall be based on the ABC in the proposed national budget submitted by the President to Congress; for GOCCs, on budget levels as proposed to the governing board; for LGUs, on budget levels as proposed in the executive budget submitted to the Sanggunian; and for foreign-assisted projects (FAPS), on the document issued by the foreign donor or financing institution explicitly stating that a loan is to be made available to the Philippines or any of its agencies or instrumentalities with borrowing authority.17 No award of contract shall be made until the approval and effectivity of the GAA, corporate budget, appropriations ordinance or the loan agreement in the case of FAPs.18(a) Notwithstanding the approval and effectivity of the GAA, reenacted budget, appropriations ordinance, corporate budget or loan agreement, Procuring Entities shall not award contracts or renew19 contracts for projects requiring Special Allotment Release Order or Sub-Allotment Release Order until the same has been issued, secured or released.20(n) 7.7 For procurement projects subject to Framework Agreement as provided in the Guidelines on the use of Framework Agreement by all Procuring Entities, the end- user unit shall ensure that the Framework Agreement List must be attached to the APP submitted to the BAC to be approved by the HoPE.21(n) 12 As amended by GPPB Resolution No. 06-2022, dated 12 September 2022, published in the Philippine Star on 13 April 2023. 13 Ibid. 14 Ibid. 15 Ibid. 16 Ibid. 17 Ibid. 18 Ibid. 19 Ibid. 20 Ibid. 21 As amended by GPPB Resolution No. 27-2019, dated 10 December 2019, published in the Official Gazette on 30 December 2019. 19  The 2016 Revised Implementing Rules and Regulations – Annex “A” RULE III – PROCUREMENT BY ELECTRONIC MEANS Section 8. Procurement by Electronic Means and the Philippine Government Electronic Procurement System (PhilGEPS) 8.1 The PhilGEPS 8.1.1 To promote transparency and efficiency, information and communications technology shall be utilized in the conduct of procurement procedures. Accordingly, there shall be a single portal that shall serve as the primary source of information on all government procurement. The PhilGEPS shall serve as the primary and definitive source of information on government procurement. For this purpose, the Electronic Procurement System (EPS) established in accordance with E.O. 322, s. 2000, and E.O. 40, s. 2001, shall continue to be managed by the DBM-PS under the supervision of the GPPB, as the PhilGEPS, in accordance with this IRR. 8.1.2 To take advantage of the significant built-in efficiencies of the PhilGEPS and the volume discounts inherent in bulk purchasing, all Procuring Entities shall utilize the PhilGEPS for the procurement of Common-Use Supplies in accordance with the rules and procedures to be established by the GPPB. With regard to the procurement of non-common use items, Infrastructure Projects, and Consulting Services, agencies may hire service providers through competitive bidding to undertake their electronic procurement: Provided, however, That these service providers meet the following minimum requirements: a) Comply with the provisions of the Act and this IRR, and R.A. 8792, otherwise known as the “Electronic Commerce Act;” b) Linked to the PhilGEPS, particularly with regard to the posting of all bid opportunities and awards; c) Allow parallel manual submission of bids to the Procuring Entity; d) Ensure that the BAC shall have complete control of the bidding process, and that the BAC’s sole authority to open bids is strictly observed; e) Its system must be virus-resilient and must provide sufficient security which is at least equivalent to that employed by the PhilGEPS, such as, but not limited to, firewall and encryption devices; f) Must provide for the use of electronic signatures and other current electronic authentication devices; g) Must have sufficient redundant back-up facilities; h) Must have provisions for linkage to the Procuring Entity’s Financial Management Information System (FMIS), Logistics Management Systems, and other internal information systems that may interact with the procurement process; and 20  The 2016 Revised Implementing Rules and Regulations – Annex “A” i) Electronic payment facilities, if used, shall comply with all laws, rules and regulations issued by the Government. 8.1.3 The GPPB shall determine and certify compliance with the above requirements. However, the GPPB may delegate this task to technically capable agencies/offices/units of the Government. 8.2 Features of the PhilGEPS 8.2.1 The Electronic Bulletin Board a) The PhilGEPS shall have a centralized electronic bulletin board for posting procurement opportunities, notices, awards and reasons for award. All Procuring Entities are required to post all procurement opportunities, results of bidding and related information in the PhilGEPS bulletin board. b) Procuring Entities shall post the Invitation to Bid for Goods and Infrastructure Projects or the Request for Expression of Interest for Consulting Services, in the electronic bulletin board in accordance with Section 21 of this IRR. 8.2.2 Registry of Manufacturers, Suppliers, Distributors, Contractors and Consultants a) The PhilGEPS shall have a centralized electronic database of all manufacturers, suppliers, distributors, contractors and consultants registered under the system. b) Registration shall entail the submission of the requirements specified by the DBM-PS. Submission of these requirements may be done on-line at the PhilGEPS website or physically at the PhilGEPS office. Registration shall be effective for one year and may be renewed, provided that the manufacturer, supplier, distributor, contractor or consultant concerned maintains its registration current and updated at least once a year, or more frequently when needed. c) Manufacturers, suppliers, distributors, contractors and consultants applying for registration must also indicate their account number with a bank duly licensed by the Bangko Sentral ng Pilipinas (BSP) to facilitate payment as well as the posting of bid and performance security, when applicable. Any information submitted in connection with this subsection shall be kept confidential. d) The PhilGEPS shall deny registration to or exclude from the registry any party that is found to have willfully misrepresented any of the information provided in the application for registration or who is in the “blacklist” of the Government or any of its Procuring Entities in accordance with Section 69.4 of this IRR, including foreign government/foreign or international financing institution whose blacklisting rules have been recognized by the GPPB. e) A manufacturer, supplier, distributor, contractor or consultant applying for registration shall be required to provide an e-mail address to which all communications from the BAC and the Procuring Entity shall be sent. The 21  The 2016 Revised Implementing Rules and Regulations – Annex “A” e-mail address provided shall be considered as such applicant’s information system for purposes of reckoning the date of sending or receipt of electronic messages or documents. f) Registered manufacturers, suppliers, distributors, contractors and consultants shall secure a digital certificate from the government- accredited certification authority to be able to participate in the procurement activities of the PhilGEPS. g) Registration with the PhilGEPS is not an accreditation and thus not tantamount to a finding of eligibility, nor is it a guaranty that a manufacturer, supplier, distributor, contractor or consultant may participate in a competitive bidding without first being determined to be eligible for that particular competitive bidding. 8.2.3 The Electronic Catalogue a) The PhilGEPS shall have a centralized electronic catalogue of common and non-common use goods, supplies, materials and equipment. b) Procuring Entities shall procure common-use goods, supplies, materials and equipment from the Electronic Catalogue in the PhilGEPS. To be able to use the PhilGEPS, Procuring Entities shall be required to register and designate the officials or personnel authorized to transact with and operate the PhilGEPS from such Procuring Entities’ terminals. c) Procuring Entities without internet access may avail of the PhilGEPS Public Access Terminals which shall be installed at DBM-designated locations in the provinces and in Metro Manila: Provided, however, That they shall comply with Section 8.3 of this IRR. d) The Electronic Catalogue may also feature non-common use items that may be procured directly and without competitive bidding by Procuring Entities from suppliers through the PhilGEPS Virtual Store: Provided, however, That for an item to be carried in the Electronic Catalogue for this purpose, the supplier thereof must have been determined as the Lowest Calculated Responsive Bidder in a previous bidding conducted by DBM-PS or by a Procuring Entity for DBM-PS: Provided, further, That such item will be featured in the Electronic Catalogue for a maximum period of six (6) months unless another supplier offers a price lower by at least five percent (5%) and such supplier is determined by the DBM-PS or by the Procuring Entity that conducted the previous bidding for DBM-PS to meet the eligibility and bidding requirements for the item, in which case the item from the latter supplier will be that featured in the Electronic Catalogue for the remainder of the six (6)-month period. 8.2.4 Additional Features The PhilGEPS shall also feature a Virtual Store, Electronic Payment, Electronic Bid Submission, and such other features as may be developed in the future. 22  The 2016 Revised Implementing Rules and Regulations – Annex “A” 8.2.4.1 Virtual Store The PhilGEPS may have a feature that will enable the ordering of common-use and non-common use items online called a virtual store. The virtual store shall be open only to registered Procuring Entities and may not be accessed by suppliers. 8.2.4.2 Electronic Payment The PhilGEPS may support e-payment functions to pay for goods purchased through the Virtual Store to manage the generation of purchase orders and the payment of bids processed through the system. The focus of this feature is to facilitate the electronic transfer of funds from DBM-PS to and from Procuring Entities and suppliers, and from Procuring Entities to suppliers, for bids managed directly by the Procuring Entity. The system shall: a) Generate purchase orders from a bid notice, award notice or contract; b) Support approval process for purchase orders before any payment or fund transfer is processed; c) Have a process to submit request for payment upon delivery of goods and/or services and the completion of the approval process; and d) Have the ability to interface with the designated bank of the Procuring Entity and suppliers to support the electronic transfer of funds. 8.2.4.3 Electronic Bid Submission22 The PhilGEPS may support the implementation of e-Bid submission processes, which includes creation of electronic bid forms, creation of bid box, delivery of bid submissions, notification to supplier of receipt of bids, bid receiving and electronic bid evaluation. This facility shall cover all types of procurement for Goods, Infrastructure Projects and Consulting Services. 8.3 Use of the PhilGEPS 8.3.1 All Procuring Entities are mandated to fully use the PhilGEPS in accordance with the policies, rules, regulations, and procedures adopted by the GPPB and embodied in this IRR. In this connection, all Procuring Entities shall register with the PhilGEPS and shall undertake measures to ensure their access to an on-line network to facilitate the open, speedy and efficient on-line transmission, conveyance and use of electronic data messages or electronic documents. The DBM-PS shall assist Procuring Entities to ensure 22 Refer to Appendix 3 for the Revised Guidelines on Electronic Bidding. 23  The 2016 Revised Implementing Rules and Regulations – Annex “A” their on-line connectivity and help in training their personnel responsible for the operation of the PhilGEPS from their terminals. 8.3.2 The rules and regulations governing the manual method of procurement shall apply whenever the rules in this Section are silent. Further, the GPPB is authorized to approve changes in the procurement process to adapt to improvements in modern technology, provided that such modifications are consistent with the provisions of Section 3 of the Act and this IRR. 8.4 Pre-bid Conferences and Notices under the PhilGEPS 8.4.1 Pre-bid conferences shall be conducted in accordance with Section 22 of this IRR.(a) 8.4.2 Requests for clarification from bidders may be sent electronically to the BAC. To be binding on bidders, clarifications and amendments to the Invitation to Bid/Request for Expression of Interest and to the Bidding Documents shall be in the form of Supplemental/Bid Bulletins which shall be posted in the PhilGEPS bulletin board. 8.4.3 The Supplemental/Bid Bulletins mentioned in the immediately preceding Subsection as well as all other notices to be made by the BAC to the biddersor prospective bidders shall be posted in the PhilGEPS bulletin board and sent electronically to the e-mail address indicated in the bidders’ registration. 8.5 Registration, Eligibility Requirements and Submission of Bids under the PhilGEPS 8.5.1 To ensure the widest dissemination of the Invitation to Bid/Request for Expression of Interest, manufacturers, suppliers, distributors, contractors and/or consultants shall register with the PhilGEPS. All Procuring Entities already maintaining an electronic registry upon the effectivity of this IRR shall integrate the same with that of the PhilGEPS. A manufacturer, supplier, distributor, contractor or consultant duly registered with the PhilGEPS may participate in a procurement undertaken by any Procuring Entity, providedthat the said manufacturer, supplier, distributor, contractor or consultant maintains its registration current and updated in accordance with the provisions of this IRR, and its registration is proper and relevant to the particular type of procurement. 8.5.2 All bidders shall upload and maintain in PhilGEPS a current and updated file of the following Class “A” eligibility documents under Sections 23.1(a) and 24.1(a):23 a) Registration Certificate; b) Mayor’s/Business Permit or its Equivalent Document; c) Tax Clearance; 23 Informing all procurement entities on the lifting of the suspension on the implementation of the mandatory submission of PhilGEPS Certificate of Platinum Registration and membership in Competitive Bidding and Limited Source Bidding through GPPB Resolution No. 15-2021, dated 14 October 2021. 24  The 2016 Revised Implementing Rules and Regulations – Annex “A” d) Philippine Contractors Accreditation Board (PCAB) license and registration; and e) Audited Financial Statements. For Foreign Bidders, the foregoing documents may be substituted by the appropriate equivalent documents in English, if any, issued by the country of the bidder concerned. Otherwise, it must be accompanied by a translation of the documents in English issued by the relevant foreign government agency, the foreign government agency authorized to translate documents, or a registered translator in the foreign bidder’s country; and shall be authenticated by the appropriate Philippine foreign service establishment/post or the equivalent office having jurisdiction over the foreign bidder’s affairs in the Philippines. However, for Contracting Parties to the Apostille Convention, the documents shall be authenticated through an apostille by the Competent Authority, except for countries24 identified by the Department of Foreign Affairs (DFA) that will still require legalization (red ribbon) by the relevant Embassy or Consulate.25(n) A Contracting Party refers to a State that has joined the Apostille Convention, whether or not the Convention has entered into force for that State.26(n) A Competent Authority refers to the authority designated by a Contracting Party that is competent to issue an apostille. A Contracting Party may designate one or more Competent Authorities and may designate Competent Authorities that are competent to issue an apostille for certain categories of public documents. Information about designated Competent Authorities may be found on the Apostille Section of the Hague Conference website under “Competent Authorities”. The PE can confirm the list of Competent Authorities using the link below: https://www.hcch.net/en/instruments/conventions/authorities1/?cid=41. 27 (n) These documents shall be accompanied by a Sworn Statement in a form prescribed by the GPPB stating that the documents submitted are complete and authentic copies of the original, and all statements and information provided therein are true and correct. Upon receipt of the said documents, the PhilGEPS shall process the same in accordance with the guidelines on the Government of the Philippines – Official Merchants Registry (GoP-OMR) and shall issue a Certificate of Platinum Registration and Membership.28 The said Certificate shall include the following certification by the Bidder: a. the authenticity, genuineness, validity, and completeness of the copy 24 As of 14 May 2019, Austria, Finland, Germany and Greece. 25 As amended by GPPB Resolution No. 13-2019, dated 23 May 2019, published in the Official Gazette on 26 August 2019. 26 Ibid. 27 Ibid. 28 As amended by GPPB Resolution No. 15-2021, dated 14 October 2021, published in the Official Gazette on 20 November 2021. 25  The 2016 Revised Implementing Rules and Regulations – Annex “A” of the original eligibility documents submitted; b. the veracity of the statements and information contained therein; c. that the Certificate is neither a guaranty that the named registrant will be declared eligible without first being determined to be such for that particular bidding nor is it evidence that the same has passed the post- qualification stage; and d. that any finding of concealment, falsification, or misrepresentation of any of the eligibility documents submitted, or the contents thereof shall be a ground for disqualification of the Bidder from further participation in the bidding process, without prejudice to the imposition of appropriate administrative, civil and criminal penalty in accordance with the laws. For the purpose of updating the Certificate of Registration and Membership, all Class “A” eligibility documents mentioned in this section supporting the veracity, authenticity and validity of the Certificate shall remain current and updated. The failure by the prospective bidder to update its Certificate with the current and updated Class “A” eligibility documents shall result in the automatic suspension of the validity of its Certificate until such time that all of the expired Class “A” eligibility documents has been updated.29 8.5.3 Registered bidders determined to be eligible may submit their bids at any time before the closing date specified in the Bidding Documents. The PhilGEPS shall bar all incoming bids after such prescribed date and time.(a) 8.5.4 The PhilGEPS shall have a feature that allows the electronic submission of eligibility requirements and bids. 8.5.5 Upon receipt of a bid, the PhilGEPS shall generate and send a message to the bidder acknowledging such receipt. 8.6 Opening of Bids under the PhilGEPS 8.6.1 The BAC shall have the sole authority to open the bids. 8.6.2 Only the financial proposals of bidders whose technical proposals meet the minimum technical requirements shall be opened or decrypted. 8.6.3 An update of all procurement contracts, regardless of whether procurement is done electronically or manually, shall be posted on the PhilGEPS bulletin board. The update shall include, but shall not be limited to, the status of procurement contracts, including the names of contract awardees and the amount of the contract. 8.6.4 Without prejudice to criminal prosecution under the applicable provisions of the Act and this IRR, R.A. 8792, R.A. 3019, otherwise known as the “Anti- Graft and Corrupt Practices Act,” and other applicable penal laws, 29 Ibid. 26  The 2016 Revised Implementing Rules and Regulations – Annex “A” public officials and employees who commit any of the following acts shall be deemed to have committed grave misconduct and shall be sanctioned and/or penalized in accordance with the applicable Civil Service rules and regulations: a) Opening or decryption, by whatever means, of bids submitted through the PhilGEPS ahead of the appointed time for the opening or decryption of such bids; b) Causing the unauthorized disclosure of any information or document submitted through the PhilGEPS; c) Hacking into or cracking the PhilGEPS, or aiding another person to hack into or crack the same; or d) Any other act that breaches or violates the security, integrity, and confidentiality of the PhilGEPS. 8.6.5 When any of the foregoing acts is done by the administrator(s) or employee(s) of a service provider hired by a Procuring Entity, or in collusion with, or by a private party who is a participant in the bidding process, said administrator(s), employee(s) or private party shall be imposed the corresponding sanctions and/or penalties under this IRR. 8.7 Observers The PhilGEPS shall allow observers, duly authorized by the BAC, to monitor the procurement proceedings on-line: Provided, however, That such observers do not have any direct or indirect interest in the contract to be bid as prescribed in Section 13 of this IRR. Section 9. Security, Integrity and Confidentiality The PhilGEPS shall incorporate the following features, which shall be periodically upgraded to keep abreast with developments in technology: a) Security – The PhilGEPS shall be protected from unauthorized access or interference through the incorporation of security features such as, but not limited to, firewalls. Periodic tests shall be conducted to ensure that the system cannot be breached. b) Integrity – The PhilGEPS shall ensure that no person, including the system administrators and chairperson and members of the BAC, shall be able to alter the contents of bids submitted through the system or read the same ahead of the stipulated time for the decryption or opening of bids. For this purpose, bids submitted through the PhilGEPS shall be sealed through electronic keys. The authenticity of messages and documents submitted through the PhilGEPS shall also be ensured by the use of electronic signatures. c) Confidentiality – The PhilGEPS shall ensure the privacy of parties transacting with it. For this purpose, no electronic message or document sent through the system shall be divulged to third parties unless such electronic message or document was sent after the sender was informed that the same will be made publicly available. The PhilGEPS 27  The 2016 Revised Implementing Rules and Regulations – Annex “A” shall protect the intellectual property rights over documents, including technical designs, submitted in response to Invitations to Bid. d) Audit Trail – The PhilGEPS shall include a feature that provides for an audit trail for on- line transactions, and allows the Commission on Audit (COA) to verify the security and integrity of the system at any time. e) Performance Tracking – The performance of manufacturers, suppliers, distributors, contractors and consultants shall be tracked to monitor compliance with delivery schedules and other performance indicators. Similarly, the performance of Procuring Entities shall be tracked to monitor the settlement of their obligations to manufacturers, suppliers, distributors, contractors and consultants. RULE IV – COMPETITIVE BIDDING Section 10. Competitive Bidding All procurement shall be done through competitive bidding, except as provided in Rule XVI of this IRR. RULE V – BIDS AND AWARDS COMMITTEE Section 11. The BAC and its Composition 11.1 BAC Structure 11.1.1 Each Procuring Entity shall establish in its head office a single BAC to undertake the functions specified in Section 12 of this IRR in order to facilitate professionalization and harmonization of procedures and standards. In line with the standardization of procurement procedures and the thrust towards strengthening the procurement function to increase operational efficiency and effectiveness, Heads of Procuring Entities shall aim to consolidate or unify all procurement activities of the organization, whether locally-funded or foreign- assisted, and whether pertaining to Goods, Infrastructure Projects or Consulting Services. 11.1.2 However, to expedite the procurement process for practical intents and purposes, the HoPE may create separate BACs where the number and complexity of the items to be procured shall so warrant. The BACs may be organized either according to: (a) geographical location of PMO or end-user or implementing units of the Procuring Entity; or (b) nature of procurement. Similar committees for decentralized and lower level offices may also be formed when deemed necessary by the HoPE. 11.2 BAC Composition 11.2.1 The HoPE shall designate at least five (5) but not more than seven (7) members to the BAC of unquestionable integrity and procurement proficiency. 11.2.2 The BAC for NGAs, departments, bureaus, offices, or instrumentalities of the 28  The 2016 Revised Implementing Rules and Regulations – Annex “A” GoP, including the judicial and legislative branches, constitutional commissions, SUCs, GOCCs, and GFIs shall be composed of the following: Regular Members: a) Chairperson, who is at least a third (3rd) ranking permanent official of the Procuring Entity; b) An officer, who is at least a fifth (5th) ranking permanent official, or if not available, an officer of the next lower rank with knowledge, experience and/or expertise in procurement who, to the extent possible, represents the legal or administrative area of the Procuring Entity: Provided, That in the case of bureaus, regional offices and sub-regional/district offices, BAC members shall be at least a third (3rd) ranking permanent personnel or if not available, an officer of the next lower rank; c) An officer, who is at least a fifth (5th) ranking permanent official, or if not available, an officer of the next lower rank with knowledge, experience and/or expertise in procurement who, to the extent possible, represents the finance area of the Procuring Entity: Provided, That in the case of bureaus, regional offices and sub-regional/district offices, BAC members shall be at least a third (3rd) ranking permanent personnel or if not available, an officer of the next lower rank; Provisional Members: d) An officer who has technical expertise relevant to the procurement at hand, and, to the extent possible, has knowledge, experience and/or expertise in procurement; and e) A representative from the end-user or implementing unit who has knowledge of procurement laws and procedures, subject to existing laws, rules and regulations.30(a) The Chairperson and the Vice-Chairperson shall also be designated by the HoPE. Moreover, the Vice-Chairperson shall be a regular member of the BAC. For purposes of this IRR, the term “permanent” shall refer to a plantilla position within the Procuring Entity concerned.(a) 11.2.3 The BAC for Local Government Units shall be composed of the following: a) For Provinces, Cities, and Municipalities i. One representative each from the regular offices under the Office of the Local Chief Executive such as, but not limited to, the following: Office of the Administrator, Budget Office, Legal Office, Engineering Office, General Services Offices; and ii. A representative from the end user unit. The Chairperson and Vice-Chairperson shall be designated by 30 As amended by GPPB Resolution No. 07-2022, dated 27 October 2022, published in the Philippine Star on 19 May 2023. 29  The 2016 Revised Implementing Rules and Regulations – Annex “A” the Local Chief Executive. The Chairperson of the BAC shall be at least a third (3rd) ranking permanent official of the Procuring Entity. The members of the BAC shall be personnel occupying plantilla positions of the Procuring Entity concerned. b) For Barangays: i. The BAC shall be composed of at least five (5), but not more than seven (7) regular members of the Sangguniang Barangay, except the Punong Barangay. ii. The Punong Barangay, being the Local Chief Executive, shall designate the Chairperson, Vice-Chairperson, and members of the BAC.(a) 11.2.4 The HoPE may designate alternate BAC members, who shall have the same qualifications as that of the members originally designated under Section 11.2.2 of this IRR. The alternate members shall attend meetings of the BAC and receive the proportionate honoraria, whenever the original members are absent. The alternate members shall have the same term as the original members.(a) 11.2.5 In no case shall the HoPE and/or the approving authority be the Chairperson or a member of the BAC. 11.2.6 Unless sooner removed for a cause, the members of the BAC shall have a fixed term of one (1) year reckoned from the date of appointment, renewable at the discretion of the HoPE. Upon expiration of the terms of the current members, they shall continue to exercise their functions until new BAC members are designated. In case of resignation, retirement, separation, transfer, re- assignment, removal, or death, the replacement shall serve only for the unexpired term: Provided, however, That in case of leave or suspension, the replacement shall serve only for the duration of the leave or suspension. For justifiable causes, a member shall be suspended or removed by the HoPE. Section 12. Functions of the BAC 12.1 The BAC shall have the following functions: (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 in accordance with Rule XXIII; (j) recommend to the HoPE the use of Alternative Methods of Procurement as provided in Rule XVI hereof; k) conduct any of the Alternative Methods of Procurement; l) conduct periodic assessment of the procurement processes and procedures to streamline procurement activities pursuant to Section 3(c) of this IRR; and m) perform such other related functions as may be necessary, including the creation of a Technical Working Group (TWG) from a pool of technical, financial, and/or legal experts to assist in the following: i. Review of the Technical Specifications, Scope of Work, and Terms of 30  The 2016 Revised Implementing Rules and Regulations – Annex “A” Reference; ii. Review of Bidding Documents; iii. Shortlisting of Consultants; iv. Eligibility Screening; v. Evaluation of Bids; vi. Post-Qualification; and vii. Resolution of Request for Reconsideration. To the extent possible, the BAC in central offices shall render necessary assistance to its regional or lower office BACs to facilitate the conduct of procurement from pre- procurement conference to the post-qualification stage.(a) 12.2 The BAC shall be responsible for ensuring that the Procuring Entity abides by the standards set forth by the Act and this IRR, and it shall prepare a Procurement Monitoring Report (PMR) in the form prescribed by the GPPB.31 The PMR shall cover all procurement activities specified in the APP, whether ongoing and completed, from the holding of the pre-procurement conference to the issuance of notice of award and the approval of the contract, including the standard and actual time for each major procurement activity. The PMR shall be approved and submitted by the HoPE to the GPPB in electronic format32 within fourteen (14) calendar days after the end of each semester. The PMR shall likewise be posted in accordance with E.O. 662, s. 2007, as amended.(a) 12.3 Quorum A majority of the total BAC composition as designated by the HoPE shall constitute a quorum for the transaction of business, provided that the presence of the Chairperson or Vice-Chairperson shall be required. For purposes of determining a quorum, a member of the BAC, which include the Chairperson or the Vice-Chairperson, may be present, either in person or face-to- face through videoconferencing, webcasting or similar technology for procuring entities with such technology.33(n) 12.4 Meetings The Chairperson or, in his absence, the Vice-Chairperson, shall preside at all meetings of the BAC. Meetings of the BAC may be conducted electronically for procuring entities with videoconferencing, webcasting, or similar technology capability. The decision of at least a majority of those present, either in person, face- to-face through videoconferencing, webcasting or similar technology, or a combination thereof, at a meeting at which there is quorum shall be valid and binding as an act of the BAC: Provided, however, That the Chairperson or, in his absence, the Vice-Chairperson, shall vote only in case of a tie.34(a) 31 Refer to Appendix 5 for the Procurement Monitoring Report (PMR) Format. 32 As amended by GPPB Resolution No. 11-2020, dated 20 May 2020, published in the Philippine Daily Inquirer on 27 May 2020. 33 As amended by GPPB Resolution No. 24-2018, dated 4 December 2018, published in the Official Gazette on 26 August 2019. 34 Ibid. 31  The 2016 Revised Implementing Rules and Regulations – Annex “A” Section 13. Observers35 13.1 To enhance the transparency of the process, the BAC shall, during the eligibility checking, shortlisting, pre-bid conference, preliminary examination of bids, bid evaluation, and post-qualification, invite, in addition to the representative of the COA, at least two (2) observers, who shall not have the right to vote, to sit in its proceedings where: 1. At least one (1) shall come from a duly recognized private group in a sector or discipline relevant to the procurement at hand, for example: a) For Infrastructure Projects, national associations of constructors duly recognized by the Construction Industry Authority of the Philippines (CIAP), such as, but not limited to the following: (1) Philippine Constructors Association, Inc.; or (2) National Constructors Association of the Philippines, Inc. b) For Goods, a specific relevant chamber-member of the Philippine Chamber of Commerce and Industry. c) For Consulting Services, a project-related professional organization accredited or duly recognized by the Professional Regulation Commission or the Supreme Court, such as, but not limited to: (1) Philippine Institute of Civil Engineers (PICE); (2) Philippine Institute of Certified Public Accountants (PICPA); or (3) Confederation of Filipino Consulting Organizations; and 2. The other observer shall come from a non-government organization (NGO).(a) 13.2 The observers shall come from an organization duly registered with the Securities and Exchange Commission (SEC) or the Cooperative Development Authority (CDA), and should meet the following criteria: a) Knowledge, experience or expertise in procurement or in the subject matter of the contract to be bid; b) Absence of actual or potential conflict of interest in the contract to be bid; and c) Any other relevant criteria that may be determined by the BAC. 13.3 Observers shall be invited at least five (5) calendar days before the date of the procurement stage/activity. The absence of observers will not nullify the BAC proceedings: Provided, That they have been duly invited in writing. The Procuring Entities should ensure that the invitation is received at least five (5) calendar days before each procurement activity. In the event that a procurement activity has to be postponed, the observers shall be notified immediately of the change in schedule.(a) 13.4 The observers shall have the following responsibilities: a) To prepare the report either jointly or separately indicating their observations made on the procurement activities conducted by the BAC for submission to the HoPE, copy furnished the BAC Chairperson. The report shall assess the extent of the BAC’s 35 As amended by GPPB Circular No. 01-2021, dated 4 March 2021, published in the Philippine Star on 15 March 2021. 32  The 2016 Revised Implementing Rules and Regulations – Annex “A” compliance with the provisions of this IRR and areas of improvement in the BAC’s proceedings; b) To submit their report to the Procuring Entity and furnish a copy to the GPPB and Office of the Ombudsman/Resident Ombudsman. If no report is submitted by the observer within seven (7) calendar days after each procurement activity, then it is presumed that the bidding activity conducted by the BAC followed the correct procedure; and c) To immediately inhibit and notify in writing the Procuring Entity concerned of any actual or potential interest in the contract to be bid.(a) 13.5 Observers shall be allowed access to or be provided with the following documents free of charge upon their request: (a) minutes of BAC meetings; (b) abstract of Bids; (c) post-qualification summary report; (d) APP and related PPMP; and (e) 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.36(a) Section 14. BAC Secretariat/ Procurement Unit 14.1 The HoPE shall create a Secretariat which will serve as the main support unit of the BAC. An existing organic office within the Procuring Entity may also be designated to serve as Secretariat. To strengthen and promote the professionalization of the organizations’ procuring unit, the HoPE may create procurement units that may serve concurrently as BAC Secretariat in accordance with the guidelines issued by DBM. The Secretariat shall have the following functions and responsibilities: a) Provide administrative support to the BAC and the TWG; b) Organize and make all necessary arrangements for BAC and the TWG meetings and conferences; c) Prepare minutes of meetings and resolutions of the BAC; d) Take custody of procurement documents and other records and ensure that all procurements undertaken by the Procuring Entity are properly documented; e) Manage the sale and distribution of Bidding Documents to interested bidders; f) Advertise and/or post bidding opportunities, including Bidding Documents, and notices of awards; g) Assist in managing the procurement processes; h) Monitor procurement activities and milestones for proper reporting to relevant agencies when required; i) Consolidate PPMPs from various units of the Procuring Entity to make them available for review as indicated in Section 7 of this IRR and prepare the APP; 36 Confidentiality Agreement based on the 2014 Procurement Observer’s Guide. Refer to Appendix 6 for the Confidentiality Agreement Format. 33  The 2016 Revised Implementing Rules and Regulations – Annex “A” and j) Act as the central channel of communications for the BAC with end-user or implementing units, PMOs, other units of the line agency, other government agencies, providers of goods, infrastructure projects, and consulting services, observers, and the general public.(a) 14.2 In case of an existing ad hoc Secretariat, the HoPE shall assign full-time support staff to their BAC Secretariat. The head of the Secretariat in central offices shall be at least a fifth (5th) ranking permanent employee or, if not available, a permanent employee of lower rank; or shall be at least a third (3rd) ranking permanent employee in bureaus, regional offices and sub-regional/ district offices, or if not available, a permanent employee of lower rank. In addition to integrity, Heads of Procuring Entities shall consider procurement proficiency as a factor in designating the head of the Secretariat and Procurement Unit.(a) 14.3 To expedite the procurement process, the HoPE shall ensure that the members of the BAC, its Secretariat and TWG, shall give utmost priority to BAC assignments over all other duties and responsibilities, until the requirements for the said assignments at hand are completed.(a) Section 15. Honoraria of BAC, BAC Secretariat, and TWG Members The Procuring Entity may grant payment of honoraria to the BAC members in an amount not to exceed twenty five percent (25%) of their respective basic monthly salary subject to availability of funds. For this purpose, the DBM shall promulgate the necessary guidelines.37 The Procuring Entity may also grant payment of honoraria to the BAC Secretariat and the TWG members, subject to the relevant rules of the DBM. Section 16. Professionalization of BAC, TWG Members and Procurement Units The GPPB shall establish a sustained training program to develop the capability of the BACs, BAC Secretariats, TWGs, and the Procurement Units of Procuring Entities, and professionalize the same. The HoPE shall ensure that the BAC, its Secretariat and TWG members, including other relevant procurement personnel are sent to attend procurement training or capacity development program. 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 Technical Support Office.38 The HoPE is encouraged to attend similar procurement training and capacity development activities.(a) 37 Refer to Appendix 7 for the Guidelines on the Grant of Honoraria to Government Personnel Involved in Government Procurement. 38 Refer to GPPB Circular No. 07-2018 dated 4 September 2018. Integrated in the 2016 updated IRR of R.A. No. 9184 as Appendix 29. 34  The 2016 Revised Implementing Rules and Regulations – Annex “A” RULE VI - PREPARATION OF BIDDING DOCUMENTS Section 17. Form and Contents of Bidding Documents 17.1 The Bidding Documents shall be prepared by the Procuring Entity following the standard forms and manuals prescribed by the GPPB.39 The Bidding Documents shall include the following: a) ABC; b) Invitation to Bid/Request for Expression of Interest; c) Eligibility Requirements; d) Instructions to Bidders, including scope of bid, documents comprising the bid, criteria for eligibility, bid evaluation methodology/criteria in accordance with the Act, and post-qualification, as well as the date, time and place of the pre- bid conference (where applicable), submission of bids and opening of bids; e) Terms of Reference, for Consulting Services; f) Scope of work, where applicable; g) Plans/Drawings and Technical Specifications; h) Form of Bid, Price Form, and List of Goods or Bill of Quantities; i) Delivery Time or Completion Schedule; j) Form, Amount, and Validity Period of Bid Security; k) Form, Amount, and Validity of Performance Security and Warranty; and l) Form of Contract and General and Special Conditions of Contract. 17.2 The specifications and other terms in the Bidding Documents shall reflect the necessary specifications required to meet the needs of the Procuring Entity in clear and unambiguous terms. The renewal of contract for regular and recurring services, including the required performance evaluation of the service provider, must be stated by the procuring entity in the scope of work or technical specifications and special conditions of the contract of the bidding documents.40(n) In mixed procurements, the Procuring Entity shall specify in the Bidding Documents the requirements, criteria and other conditions of the bidding procedures and of the ensuing contract as applicable to each component of the project. In the preparation of Bidding Documents, the Procuring Entity shall ensure compliance with existing laws, rules and regulations, especially those concerning licenses and permits required for 39 Refer to GPPP Circular No. 04-2020 dated 16 September 2020, published in the Philippine Star on 26 September 2020. 40 As amended by GPPB Resolution No. 06-2022, dated 12 September 2022, published in the Philippine Star on 13 April 2023. 35  The 2016 Revised Implementing Rules and Regulations – Annex “A” the project, in accordance with Section 34.2 of this IRR.(a) 17.3 To provide prospective bidders ample time to examine the Bidding Documents and to prepare their respective bids, the concerned BAC shall make the Bidding Documents available from the time the Invitation to Bid / Request for Expression of Interest is first advertised/posted until the deadline for the submission and receipt of bids.(a) 17.4 Bidders may be asked to pay a fee to recover the cost for the preparation and development of the Bidding Documents pursuant to the Guidelines on the Sale of Bidding Documents.41 The Procuring Entity shall post the complete Bidding Documents at its website and the PhilGEPS website from the time the Invitation to Bid/Request for Expression of Interest is advertised. Bidding Documents may be downloaded from any of the said websites: Provided, That upon submission of their bids, the bidders shall pay the applicable fee, if required. The Bidding Documents may also be secured from the BAC Secretariat upon payment of the corresponding fee, if required.(a) 17.5 Bidding Documents Fee may be refunded in accordance with the aforementioned Guidelines based on the grounds provided for under Section 41 of the Act and this IRR.(n) 17.6 Detailed Engineering for the Procurement of Infrastructure Projects No bidding and award of contract for Infrastructure Projects shall be made unless the detailed engineering investigations, surveys and designs, for the project have been sufficiently carried out and duly approved in accordance with the standards and specifications prescribed by the HoPE concerned or his duly authorized representative, pursuant to the recommendation of the end-user or implementing unit and in accordance with the provisions of Annex “A”42 of this IRR. In case of projects with pending acquisition of right-of-way site or location, the procurement process may commence, but no award of contract shall be made until an authority or permit to enter is issued by the property owner; or a notarized deed of sale or deed of donation is executed in favor of the government; or a writ of possession is issued by a court of competent jurisdiction, as the case may be. The exception is in case of design and build scheme, wherein the bidders shall be allowed to submit its preliminary engineering designs as part of its bid. The procedures for the procurement and contract implementation of Infrastructure Projects using a design and build scheme shall be in accordance with the provisions of Annex “G”43 of this IRR.(a) Section 18. Reference to Brand Names Specifications for the procurement of Goods shall be based on relevant characteristics, functionality and/or performance requirements. Reference to brand names shall not be allowed except for items or parts that are compatible with the existing fleet or equipment of the same make and brand, and to maintain the performance, functionality and useful life of the equipment. This Section shall also apply to the goods component of Infrastructure Projects and Consulting 41 Refer to Appendix 8 for the Guidelines on the Sale of Bidding Documents. 42 Detailed Engineering for the Procurement of Infrastructure Projects. 43 Guidelines for the Procurement and Implementation of Contracts for Design and Build Infrastructure Projects. 36  The 2016 Revised Implementing Rules and Regulations – Annex “A” Services.(a) Section 19. Access to Information In all stages of the preparation of the Bidding Documents, the Procuring Entity shall ensure equal access to information. Prior to their official release to prospective bidders, no aspect or part of the Bidding Documents shall be divulged or released to any prospective bidder or person having direct or indirect interest in the project to be procured, or to any party, except those officially authorized in the handling of the documents.(a) However, in procurements involving and affecting national security, the disclosure of the specific components of the procurement documents, such as, the technical specifications, requirements and components, shall be dependent upon the HoPE having due regard to the nature, classification, sensitivity and confidentiality of the relevant documents vis-à-vis the purpose and reason for the request.44(n) RULE VII – INVITATION TO BID Section 20. Pre-procurement Conference 20.1 Prior to the advertisement or the issuance of the Invitation to Bid/Request for Expression of Interest for each procurement undertaken through a competitive bidding, the BAC, through its Secretariat, shall call for a pre-procurement conference. The pre-procurement conference shall be attended by the BAC, the Secretariat, the unit or officials, including consultants hired by the Procuring Entity, who prepared the Bidding Documents and the draft Invitation to Bid/Request for Expression of Interest for each procurement. During this conference, the participants, led by the BAC, shall: a) Confirm the description and scope of the contract, the ABC, and contract duration; b) Ensure that the procurement is in accordance with the PPMP and APP; c) Determine the readiness of the procurement at hand, including, among other aspects, the following: i) The availability of appropriations. In the case of EPA, the inclusion of the procurement project in the proposed funding source, i.e., the GAA, appropriations ordinance, corporate budget, or loan agreement, as the case may be.45(n) ii) completeness of the Bidding Documents and their adherence to relevant general procurement guidelines; iii) completion of the detailed engineering according to the prescribed standards in the case of Infrastructure Projects; and 44 As amended by GPPB Resolution No. 21-2017, dated 30 May 2017, published in the Philippine Daily Inquirer on 20 November 2017. 45 As amended by GPPB Resolution No. 14-2019, dated 17 July 2019, published in the Official Gazette on 26 August 2019. 37  The 2016 Revised Implementing Rules and Regulations – Annex “A” iv) confirmation of the availability of right-of-way site or location, and the possession of affected properties, subject to Section 17.6 of this IRR. d) Review, modify and agree on the criteria for eligibility screening, evaluation, and post-qualification; e) Review and adopt the procurement schedule, including deadlines and timeframes, for the different activities; and f) 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.(a) 20.2 The holding of a pre-procurement conference may not be required for small procurements, i.e., procurement of Goods costing Two Million Pesos (₱2,000,000.00) and below, procurement of Infrastructure Projects costing Five Million Pesos (₱5,000,000.00) and below, and procurement of Consulting Services costing One Million Pesos (₱1,000,000.00) and below. Section 21. Advertising and Contents of the Invitation to Bid/Request for Expression of Interest 21.1 Contents of the Invitation to Bid/Request for Expression of Interest The Invitation to Bid/Request for Expression of Interest shall provide prospective bidders the following information, among others: a) For the procurement of: i) Goods, the name of the contract to be bid and a brief description of the goods to be procured; ii) Infrastructure Projects, the name and location of the contract to be bid, the project background and other relevant information regarding the proposed contract works, including a brief description of the type, size, major items, and other important or relevant features of the works; and iii) Consulting services, the name of the contract to be bid, a general description of the project and other important or relevant information; b) The name of the project, identification and number of lots or items specific to the bidding, as well as the basis of evaluation of the project, lots, or items, where applicable; c) A general statement on the criteria to be used by the Procuring Entity for the eligibility check, the short listing of prospective bidders, in the case of the procurement of Consulting Services, the examination and evaluation of bids, post- qualification, and award