03 bidding procedure for goods and infra

8/17/2019 03 Bidding Procedure for Goods and Infra

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CAPACITY DEVELOPMENT DIVISION

GOVERNMENT PROCUREMENT POLICY BOARD TECHNICAL SUPPORT OFFICE (GPPB-TSO)

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GENERAL MODE OF PROCUREMENT

Procurement is done through CompetitiveBidding. (Sec. 10 RA 9184; NPM 67-2012)

Exception: Alternative Methods ofProcurement.

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COMPETITIVE BIDDING

WHAT IS COMPETITIVE BIDDING?

It is a method of procurement which is open toparticipation by any interested party and which

consists of the following processes: eligibilityscreening of prospective bidders, evaluation of bids,post-qualification, and award of contract. (Section5(e) of RA 9184 and its IRR)

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COMPETITIVE BIDDING

Garcia vs. Burgos (291 SCRA 546)

“By its nature and characteristics, a competitive publicbidding aims to protect public interest by giving the

public the best possible advantages through opencompetition”

COA vs. RTC-NCRJR (GR NO. 85285, 7/7/89)

“Purpose is to avoid/preclude suspicion of favoritism andanomalies in the execution of public contracts.”

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COMPETITIVE BIDDING

Municipal Order requiring an accreditation processfor Bidders as a condition precedent for theirparticipation in procurement activities of the localgovernment unit runs counter RA 9185 and its IRRwould limit the participation of bidders only to thoseaccredited suppliers, to the exclusion and prejudice ofother bidders in the market, it in fact contravenes thevery basic principles of competitive bidding. (NPM

47-2013)

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STANDARDIZED BIDDING PROCEDURE

FOR GOODS AND INFRA

Pre-ProcurementConf.

Advertisement Pre-BidConference

Opening of1st Env. - Eligibility

Docs & Technical

Proposal

Opening of 2nd Envelope – Financial

Proposal

Submission ofBids

Bid Evaluation

& RankingPost-qualification Award of

Contract

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Purpose: Determine readiness of procurement

Conducted prior to advertisement/posting of theInvitation to Bid

Mandatory for projects with ABC above PhP 2M(goods), 5M (infra projects), 1M (consulting services)

Attended by the following:a) BACb) BAC Secretariat

c) TWGd) Consultantse) End-user unit/Other officials

I. PRE-PROCUREMENT

CONFERENCE

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Importance:

Signals the start of the bidding process. Procurementprocess should be made within 3 months starting

from posting and advertisement until awarding ofcontract. (Sec. 38.1 IRR)

Signals the availability of the bidding documents tothe prospective bidders. (if not mentioned in the

Invitation to Bid) (Sec. 17.3 IRR)

II. ADVERTISEMENT/POSTING OF

THE INVITATION TO BID

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At least once in one (1) newspaper of general nationwidecirculation, which has been regularly published for at least two(2) years before advertisement date.

Posted continuously for 7 calendar days – – PhilGEPS

– website of the PE, if any.

– website of IFI, if applicable.

– At any conspicuous place in the premises of the PE.

Not required for projects with ABC of 2M and below.



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MediumAbove2M/5M

2M/5M andbelow

Newspaper of General NationwideCirculation

PhilGEPS website PE’s Website, if available

Conspicuous Place

Website prescribed by the foreigngovernment/foreign or internationalfunding institution, in case of foreignfunded procurement

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Forum where the PE’s representatives & the biddersdiscuss the different aspects of the project

Mandatory ABC 1M or more; Discretionary – ABC lessthan 1M

Held at least 12 cd before deadline for bid submission.May be held at least 30 cd considering the following:a) Method, nature, and complexity of contract

b) International participation is more advantageous

At the option of procuring entity, only bidders whopurchased bid documents are allowed to attend or askquestions

III. PRE-BID CONFERENCE

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Section 22 affords bidders the opportunity to raise

concerns or clarifications on the requirements, terms,

conditions, and specifications stipulated in the bidding

documents for the contract to be bid.

Questions or clarifications pertaining to the matters that

may be discussed during the pre-bid conference must

be raised at least ten (10) calendar days before the

deadline set for the submission and receipt of bids.

(NPM 49-2013)


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• Section 22.1 of the IRR of RA 9184 provides that at least one (1)pre-bid conference should be conducted by the procuring entityfor projects costing at least PhP1 Million, in order to affordprospective bidders the opportunity to inquire on or clarify any of

the requirements, terms, conditions, and specifications stipulatedin the Bidding Documents.

• Failure to conduct a pre-bid conference for the Project amounts toa violation of a mandatory provision of law, which will render theprocurement activity void under Article 5 of the Civil Code of the

Philippines. (NPM 48-2013)


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Supplemental/Bid Bulletins

– issued by BAC to answerrequests for clarification (query submitted 10 c.d.before deadline) or interpretation, and upon BAC’s initiative to clarify or modify any provision of Bidding

Docs. (at least 7 c.d. before deadline for bids).

Posted in PhilGEPS and PE’s website

Bidders who have submitted bids before issuance ofSupplemental/Bid Bulletin must be informed inwriting and allowed to modify or withdraw theirrespective bids

CLARIFICATION OF BIDDING

DOCUMENTS

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§22.5.2 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.

PE has the authority to revise or amend any statement in theBidding 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 atthe PE’s website, in order to address aspects of competition and

transparency. (NPM 46-2013)

CLARIFICATION OF BIDDINGDOCUMENTS

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PE cannot compel prospective bidders or the winning bidder to

submit or comply with requirements not initially provided in the

Bidding Documents or through any Supplemental/Bid Bulletin

issued by the PE for the project that must be posted at the

PhilGEPS’

and the PE’

s website.

If no Supplemental/Bid Bulletin is issued to reflect changes in the

Bidding Documents, or even if the same was issued but not posted

at the PhilGEPS ’ and PE ’ s websites, the original provisions

contained in the Bidding Documents remain and the prospective

bidder, including the winning bidder cannot be compelled to abideor comply with the changes made by the PE. (NPM 24-2013)

ADDITIONAL REQUIREMENTS

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Two-Envelope System 1st Envelope – Eligibility Requirements and Technical Component

2nd Envelope – Financial Component

Submitted to the BAC on the date, time, and place specified in theInvitation to Bid. Bids submitted after the deadline should not beaccepted.

Date of submission should not be later than the following period fromthe last day of posting of the Invitation to Bid.

IV. SUBMISSION AND RECEIPT OF

BIDS

Category Maximum Period (cd)Goods 45

Infra (50M and below) 50

Infra (above 50M) 65

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BIDS

Bidders are no longer required to submit awritten LOI together with their applicationfor eligibility as previously required in IRRPart A of RA 9184.

Bidders only have to submit their bids notlater than the deadline for the submission

and receipt of bids, which can be extended orrescheduled together with the opening of bidsas provided in Section 29 of the IRR of RA9184. (NPM 55-2013)

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BIDS

The practice of pre-qualification has been abandonedin RA 9184 and its IRR. the results of a pre-qualification have no legal force and effect, bearing orweight, and cannot preempt the findings of the BAC

during the preliminary examination of bidsconducted during the opening of bids. Hence, a biddermay still be declared ineligible during the opening ofbids despite a finding of qualification during the

purported pre-qualification exercise. (NPM 54-2013)

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BIDS

Procuring entity cannot validly and legally refuse toaccept a bid submitted before the deadline for thesubmission indicated the Invitation to Bid or Requestfor Quotation.

This shall open a ground for the aggrieved bidder tofile a request for reconsideration and, subsequently,protest as provided in Section 55 of RA 9184 and its

IRR, without prejudice to the institution of civil,administrative and/or criminal actions against theerring officials under applicable laws and rules.(NPM 67-2013)

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CONTENTS:

1. Eligibility requirements

2. Bid Security

3. Technical specifications (Goods) / Projectrequirements (Infra)

4. Omnibus sworn statementNon-inclusion in blacklist Authenticity of documents Verification authority

V. OPENING AND EVALUATION OF 1

ST

ENVELOPE

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CONTENTS (continuation):

4. Omnibus Sworn Statement

Signatory’s authority

Disclosure of relationsResponsibilities of biddersLabor laws and standardsNon-payment (directly or indirectly) any

commission, amount, fee, or any form ofconsideration in relation to anyprocurement project or activity

V. OPENING AND EVALUATION OF 1

ST

ENVELOPE

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Section 30 requires that the preliminary examination of

bids be conducted by merely checking for the presence

or absence of documentary requirements using a non-

discretionary “pass/fail” criterion.

However, the BAC has the right to review the

qualifications of a bidder during the same stage if it has

reasonable grounds to believe that a misrepresentation

has been made or there has been changes in the

bidder ’s capability to undertake the project. (NPM 54-

2013)

V. OPENING AND EVALUATION OF 1ST ENVELOPE

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BAC should open a reconsidered bid under the

same circumstances as it opened the bids that

were not disqualified, i.e., upon a duly

scheduled opening of bid with proper notices tothe concerned entities. (NPM 69-2013)

V. OPENING AND EVALUATION OF 1ST ENVELOPE

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ELIGIBILITY REQUIREMENTS

GOODS INFRASTRUCTURE

Class Documents

1. DTI/SEC/CDA

Registration

1. DTI/SEC/CDA

Registration2. Mayor’s permit 2. Mayor’s permit

3. Tax clearance perExecutive Order 398, series

of 2005, as finally reviewedand approved by the BIR.

3. Tax clearance perExecutive Order 398, series

of 2005, as finally reviewedand approved by the BIR.

4. Statement of ongoingcontracts.

4. Statement of ongoingcontracts.

5. Statement of SLCC 5. Statement of SLCC 26


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Class Documents

5. Audited financial

statement

5. PCAB license and

registration.6. NFCC 6. Audited financial

statement

7. NFCC

Class B Document

JVA or notarized statement from the partners that theywill enter into joint venture if awarded the contract.

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Mayor

’

Permit allows an entity to legally performthe requirements and obligations of the project andthe resultant contract.

It is therefore necessary for the BAC to determinewhether the Mayor ’ s Permit for constructionbusiness issued to the construction company likewiseauthorizes it to engage in the business of supplying

dump trucks. (NPM 36-2013)

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A valid PCAB license required as an eligibilityrequirement for the procurement of infrastructureprojects under Section 23.1 (a) (iv) of the revised IRRof RA 9184 should be valid at the time of the deadlinefor the submission and opening of bids.

The submission of a PCAB license with validity periodafter the date of the opening of the bids is a ground

for the prospective bidder’s disqualification. (NPM 71- 2013)

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EO 398 specifically requires the submission of Tax

Clearance issued by the BIR. It refers to the clearance

issued by the Collection Enforcement Division of BIR

attesting that the bidder has no outstanding Final

Assessment Notice and/or delinquent account.

Hence, submission of tax clearance of the previous year

and application for tax clearance cannot be considered

as compliance. (NPM 02-2013)

TAX CLEARANCE

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Submission of BIR receipt for renewal of Tax Clearance will not

suffice in lieu of a valid Tax Clearance Requirement since

substitution is not allowed under Section 34.2 of the IRR of RA

9184.

The Tax Clearance must be valid and existing at the time it is

submitted to BAC and must be submitted within three (3) calendar

days from receipt of the notice from the BAC that the bidder has

the LCB. Failure to comply with the requirement for the submission

of a valid Tax Clearance shall be a ground for post-disqualification

of the bidder. (NPM 48-2013)

TAX CLEARANCE

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FOR FOREIGN BIDDERS

A Delinquency Verification Certificate issued to Non-

Resident Foreign Corporations (NRFC)/Non-Resident

Aliens Not Engaged in Trade or Business (NRANETB)

pursuant to BIR RR 3-2005, attesting to the fact that thetaxpayer has no outstanding Final Assessment Notice

and/or delinquent account may be submitted as a form of

Tax Clearance required under Sec 34.2 of the IRR. (NPM

02-2013)

TAX CLEARANCE

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In the case of foreign bidders, the foregoing eligibilityrequirements under Class “A” Documents may besubmitted:

Equivalent documents issued by country

Accompanied by English translation certified byappropriate embassy or consulate in the Philippines

ELIGIBILITY REQUIREMENTS FOR

FOREIGN BIDDERS

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Foreign bidders may substitute eligibility documentary

requirements with the appropriate equivalent documents

in their country.

Only upon actual determination and confirmation of this

equivalence through post qualification by the BAC may it

be categorically resolved that the foreign documents

submitted are acceptable substitutes of the required

eligibility documents pursuant to §23.2 of the IRR. (NPM

42-2013)

ELIGIBILITY REQUIREMENTS FORFOREIGN BIDDERS

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Government corporate entities may be eligible toparticipate only if they can establish that they:

1. are legally and financially autonomous,2. operate under commercial law, and3. are not attached agencies of the procuring

entity.

ELIGIBILITY REQUIREMENTS FOR GOVT.

CORPORATE ENTITIES

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1. WITH AN EXISTING JOINT VENTURE: submissionof a valid joint venture agreement

2. WITHOUT AN EXISTING JOINT VENTURE:submission by each of the potential joint venturemembers of a duly notarized statement stating thatthey will enter into and abide by the provisions of the

joint venture in case their bid is successful.


JOINT VENTURES

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SUBMISSION OF ELIGIBILITY REQUIREMENTS:

All co-venturers of the joint venture should submit

legal eligibility documents.

Any of the co-venturers can submit technical andfinancial eligibility requirements


JOINT VENTURES

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• JV Bidders are required to submit a Joint License issued by the

PCAB in compliance with the eligibility requirement for a “valid

PCAB license and registration.

•§38 RA 4566 prohibits 2 or more contractors from jointly submittinga bid without first securing a Joint License to engage or act in the

capacity of such a joint venture.

• Failure of the JV Bidder to submit a Joint License may be a ground

for its disqualification despite the submission of the individual

licenses of each joint venture partner. (NPM 17-2013)

ELIGIBILITY REQUIREMENTS FOR JOINTVENTURES

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LEGAL ELIGIBILITY CRITERIA


• General rule: 60% Filipino • General rule: 75% Filipino

• Foreign bidder allowed if:• Stated in treaty or international or

executive agreement

• National of a country offeringreciprocity rights to Filipinos

• Goods not available from localsuppliers

• To prevent situations that defeatcompetition or restrain trade

• Foreign contractors allowed if statedin treaty or international or

executive agreement

• If joint venture, less than 75% isallowed if -• Structures to be built require

techniques not possessed by 75%Filipinos

• Not less than 25% Filipino

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TECHNICAL ELIGIBILITY CRITERIA

Previous contract

Similar to the contract to be bid out (as defined by the BiddingDocuments)

Completed within a period as defined by the Bidding Documents

25% of the ABC (expendable supplies)

50% of the ABC (non-expendable supplies)- Based on the value of the previous completed contract, as

adjusted to current prices using the NSO consumer priceindex.

For foreign funded procurement, a different track record may beagreed upon

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GOODS SINGLE LARGEST CONTRACT

General Rule Exceptions Then require the ff.:

1. Expendable Supplies• 25% of the ABC

2. Services and Non-expendable supplies• 50% of the ABC

If, at the outset andafter market

research, applying thegeneral rule willlikely result to:

1. Failure of bidding;or

2. Monopoly

a) At least 2 similarcontracts aggregate

amount at leastequivalent to requiredpercentage; and

b) Largest of the similarcontracts amounts toat least 50% ofrequired percentage

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GOODS SINGLE LARGEST CONTRACT (Illustration)

Expendable Goods Non-expendable Goods

ABC = P1,000,000

GR: 25% of the ABC

THUS: Previous contract should be at leastP250,000

EXCEPTION: At least 2 similar contractsaggregate amount at least equivalent torequired percentage; and Largest of thesimilar contracts amounts to at least 50%

of required percentage.

THUS: 1st contract = P100,002nd contract = P200,00

ABC = P1,000,000

GR: 50% of the ABC

THUS: Previous contract should be at leastP500,000

EXCEPTION: At least 2 similar contractsaggregate amount at least equivalent torequired percentage; and Largest of thesimilar contracts amounts to at least 50% of

required percentage.

THUS: 1st contract = P300,0002nd contract = P400,00[

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INFRASTRUCTURE PROJECTS SINGLE LARGEST

CONTRACT

Previous contract

Similar to the contract to be bid out (having the same civil works

components) 50% of the ABC

- Based on the value of the previous completed contract, asadjusted to current prices using the NSO consumer priceindex.

For foreign funded procurement, a different track record may beagreed upon

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Construction experience/track record of a soleproprietor, cannot be carried over to a corporationdespite the fact that the sole proprietor ’s assets,

personnel and other resources have been infused intothe corporation inasmuch as the latter has a separateand distinct juridical personality from the former.(NPM 31-2013)

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FINANCIAL ELIGIBILITY CRITERIA

FOR GOODS AND INFRASTRUCTURE

PROJECTS:

• Audited Financial Statement (showingprospective bidder’s total and currentassets and liabilities. )

•NFCC at least equal to ABC.

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Net Financial Contracting Capacity (NFCC) =

(current assets - current liabilities) (K) MINUS(outstanding, uncompleted portions under ongoingcontracts + contracts awarded but not yet started)

(K) = 10 (contract is 1 year or less)

15 (contract is more than 1 year to 2 years)

20 (contract is more than 2 years)* The values of the bidder’s current assets and currentliabilities shall be based on the data submitted to the BIR,through its Electronic Filing and Payment System (EFPS)

NFCC COMPUTATION

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Participating bidder should be required to submit

an NFCC that is at least equal to all the lots to

which it participated in, in order to establish the

bidder ’ s financial liquidity and absorptivecapacity in carrying out the contractual

obligations required by the lots to which it

participated in. (NPM 76-2013)

NFCC COMPUTATION or CLCAMOUNT

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Procuring entity shall indicate in the Bidding Documents at least2 acceptable forms of bid security, one of which should be the BidSecuring Declaration.

In general, bank issued securities must be issued by a universalor commercial bank

However, in biddings conducted by LGUs, securities may beissued by banks certified by BSP as authorized to issue saidinstruments

Surety Bonds must be accompanied by certification fromInsurance Commission that issuer is authorized to issue suchsecurity

BID SECURITY

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BID SECURITY

Form of Bid Security

Amount

Bid Security

( = ABC)

a) Cash or cashier’s/manager’s

check2%b) Bank guarantee/draft or

Irrevocable LC

c) Surety bond callable upondemand 5%

d) Combination of theforegoing

Proportionate to share of form with respect tothe total amount of security

e) Bid Securing Declaration No percentage required

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BID SECURITY

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• For biddings conducted by LGUs , theBidder may also submit bid securities inthe form of cashier’s/manager’s check,

bank draft/guarantee, or irrevocable letterof credit from other banks certified by theBSP as authorized to issue such financial

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BID SECURING DECLARATION

Bid Securing Declaration

- an additional form of bid security

- A document/undertaking signed by the biddercommitting to pay the corresponding fine and besuspended for a period of time from being qualifiedto participate in any government activity in theevent of violation of any of the conditions stated

therein as required by the GPPB Guidelines. (GPPBResolution No. 03-2012, 27 January 2012)

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BID SECURING DECLARATION

Penalties

- Automatic blacklisting for 2 years in ALLgovernment procurement activities, and

- Payment of fine

• For multiple bidders: difference between theevaluated bid prices of LCRB/HRB with the nextLCRB/HRB.In case bidder is the LCRB/HRB, the amount

shall be based on the difference between theevaluated bid price and ABC. • For a single bidder: difference between the

evaluated bid price and ABC.

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Bids and bid securities (including bid securingdeclaration) shall be valid for a reasonable period asdetermined by the HOPE as indicated in the Bid Docs.

Not to exceed 120 days

If the period is extended, PE shall request in writingall those who submitted bids for such extension beforethe expiration date.

NOTE: Bidders have a right to refuse to grant suchextension w/o forfeiting their bid security.

BID VALIDITY PERIOD

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Relatives within the third civil degree of the followingshall be disqualified:

Head of the procuring entity

Members of the BAC, Secretariat and TWG

Head of the end-user unit or project managementoffice

Project consultants

DISCLOSURE OF RELATIONS

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The firm that has been engaged to provide consulting services for

the preparation or implementation of a project, and each of its

affiliates, will be disqualified from subsequently providing goods,

works, or services resulting from or directly related to the firm’s

consulting services for such preparation or implementation.

There is conflict of interest when the entity that prepared the

plans/drawings likewise participates in the ensuing procurement

activities for the Project. (NPM 10-2013)

CONFLICT OF INTEREST

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CONTENTS:

1. Financial Bid Form (includes bid prices and bill ofquantities, as well as applicable price schedules)

2. In case of Goods, Certification from the DTI, SEC,or CDA, if claiming preference as Domestic Bidderor Domestic Entity

3. Other documents required in the bidding

documents

VI. OPENING AND EVALUATION OF

2

ND

ENVELOPE

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Purpose is to determine the Lowest Calculated Bid(LCB), by:

1. Establishing correct calculated prices of bids; and

2. Ranking calculated total bid prices from lowest to

highest

A non-discretionary criterion shall be used, whichshall include consideration of:

1. completeness of bids; and2. minor arithmetical corrections

VII. DETAILED EVALUATION

OF BIDS

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No Contact Rule - prohibition on communication w/ bidders frombid evaluation until award of contract.

The “no contact” rule applies only to those whose bids are being

evaluated by the BAC after passing the preliminary examination.

No communication should be made by bidders until a decision to

award a contract is made by the BAC.

Bidders who waived their right to utilize the protest mechanism or

those whose request for reconsideration and/or protest weresubsequently denied are not covered by the prohibition under §32.1

of RA 9184 IRR. (NPM 07-2013)

VII. DETAILED EVALUATIONOF BIDS

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Bid Evaluation shall not be more than 7 cd.

In case of discrepancies, the ff. shall prevail:- words over figures

- unit prices over total prices- actual sum of prices over total price- bill of quantities over detailed estimates

Section 32.2.3(c) of the IRR states that where there is a

discrepancy between the stated total price and the actualsum of prices of component items, the latter shall prevail.

(NPM 51-2013)

VII. DETAILED EVALUATIONOF BIDS

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Unless the ITB specifically allows partial bids, thosenot providing all required items shall be considerednon-responsive

Placing no price is considered as non-responsive

Specifying a “0” or “-” means it is offered for free

VII. DETAILED EVALUATION

OF BIDS

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Applicable only for GOODS

Applies where the lowest bid has a foreign component(foreign bid/entity) and the next lowest bid has adomestic component (domestic bidder/entity)

Requires procuring entity to give preference todomestic bidder PROVIDED that:

1. The lowest foreign bid is increased by 15%; and2. The lowest domestic bidder matches the lowest bid

of the foreign bidder

DOMESTIC PREFERENCE

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DOMESTIC PREFERENCE

SAMPLE COMPUTATION

Lowest Calculated Bid Next Lowest Calculated Bid

Foreign Bidder Domestic Bidder/Entity

Bid 2,653,360.00 3,009,492.00% Preference x 15%

398,004.00

+ 2,653,360.00

Bid as increased 3,051,364.00 3,009,492.00

Result

Award to Domestic Bidder/Entity at 2,653,360.00, or Award to Foreign Bidder if Domestic Bidder/Entity

refuses

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To determine whether bidder with LCB complies withand is responsive to all requirements and conditionsof eligibility and the bidding of the contract – to bedeclared the Lowest Calculated and Responsive Bid

(LCRB)

A non-discretionary pass/fail criterion shall be usedto “Verify, Validate and Ascertain” all statements anddocuments (licenses, certificates, etc.)

To be accomplished not more than 7 c.d. fromdetermination of LCB. (Exceptional cases not toexceed 30 c.d.)

VIII. POST-QUALIFICATION

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BAC will notify the Bidder with the Lowest CalculatedBid that it was determined as such.

Within 3 c.d. from receipt of Notice, submit the ff:

1. Latest Income and Business Tax Returns;2. Certificate of PhilGEPS Registration; and,

3. Other appropriate Licenses and permits requiredby law and stated in the Bidding Documents.


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BAC shall recommend award of contract to theLOWEST CALCULATED AND RESPONSIVE BID(LCRB) at submitted price or calculated price ,whichever is lower.

In case of approval by HOPE, Notice of Award shouldbe IMMEDIATELY issued by HOPE to the LCRB.(HOPE has 7 days to decide w/n to issue NOA)


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The three (3) calendar day period under §34.2 of theIRR is mandatory and should not be extended.

In case PE accepts the post-qualification documentary

requirements beyond the reglementary period, it must

show that there is a compelling, sufficient, valid,

reasonable, and justifiable cause for such extension, so

that penal sanction or liability will not set in. Applicable

administrative and civil sanctions or liabilities may also

be imposed against the concerned officials. (NPM 27-2013)


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PE may request for the submission of additional

documents from the bidder in support of the information

it has provided in the bidding documents.

However, non-submission of the additional supporting

documents requested cannot be a ground for thebidder ’s post-disqualification, as a bidder may be post-

disqualified only upon ascertainment, validation, and

verification of its non-compliance with the legal,

technical, and financial requirements of the project asprovided in the bidding documents. (NPM 25-2013)


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Should PE decides to extend the period, it must show

and provide compelling, sufficient, valid, reasonable,

and justifiable cause. Such valid justification, however,

will only free officials from penal sanction or liability, but

not from applicable administrative and civil sanctions orliabilities under existing laws, rules and regulations.

(NPM 57-2013)


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GROUNDS:

1) No bids received

2) Bids received but no one was eligible3) All bids failed to post qualify

4) Someone post qualified but refused w/o justifiablecause to accept the award.

FAILURE OF BIDDING

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EFFECTS:

1) Mandatory review shall be conducted by BAC

2) Based on findings, BAC shall: Revise terms, conditions, specificationsAdjust ABC, subject to required approvals

3) Re-bidding

4) Re-advertisement

FAILURE OF BIDDING

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Contract shall be awarded to the bidder with the

Lowest Calculated and Responsive Bid (LCRB) at itssubmitted price or total calculated bid price,whichever is lower

Notice of Award (NOA) is issued by the HOPE

NGAs and LGUs – 7 cd GOCCs and GFIs – 15 cd

IX. AWARD OF CONTRACT

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NOA is subject to the following conditions:

◦ If joint venture, submission of JVA

◦ If foreign-funded and stated in treaty, international orexecutive agreement, PCAB License

◦ Posting of Performance Security◦ Signing of Contract (within 10 cd)

◦ If required, approvals by higher authority

PROCUREMENT PROCESSFrom Opening of Bids to Award of Contract shall

NOT EXCEED 3 MONTHS

IX. AWARD OF CONTRACT

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PERFORMANCE SECURITY

Posted by winning bidder upon signing of contract toguarantee performance of obligation, in such form andamount specified in the Bidding Documents.

EFFECTS OF FAILURE TO POST:

1. Ground for disqualification2. Next-ranked LCRB shall undertake post-

disqualification3. Bid security shall be forfeited without prejudice to

the imposition of sanctions

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Submission by the winning bidder of a Performance Security inthe form of a personal check after the signing of the contractcould be considered as a failure to post the Performance Securityin the required form under §39.2 of the IRR and in the required

period for posting under § 37.1.4(b) of the IRR.

§4.1.5 of the Guidelines provides that the refusal or failure of acontractor to post the required Performance Security within theprescribed period is one of the grounds for blacklisting. (NPM 35- 2013)

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Form of Performance Security

Amount

Performance Security

( equal to the Contract Price)

a) Cash or

cashier’s/manager’s check 5% (Goods ) & 10% (Infra)

b) Bank guarantee/draft orIrrevocable LC

c) Surety bond callable upon

demand30%

d) Combination of theforegoing

Proportionate to share of form with respect tothe total amount of security

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RESERVATION CLAUSE

HOPE reserves the right to:◦ Reject any and all bids;

◦ Declare a failure of bidding;

◦ Not award the contract.

GROUNDS:1. Prima facie evidence of collusion;

2. BAC is found to have failed in following the prescribed biddingprocedures;

3. For justifiable reasons, the award of contract will not redound to thebenefit of the Government:

Physical and economic conditions have significantly changed; Project is no longer necessary Source of funds for the project has been withdrawn/reduced.

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NOTICE TO PROCEED

Issued to the successful bidder together with the copyof the approved contract within 3 cd from date ofapproval

For infrastructure projects with ABC of 50M and

below, the maximum period is 2 cd Contract effectivity date should be provided in the

NTP, which should not be later than 7 cd from itsissuance

BAC Secretariat should post a copy of the NTP andthe approved contract in the PhilGEPS or PE’s website within 15 cd from issuance of NTP

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CONTRACT IMPLEMENTATION

GUIDELINES FOR THE

PROCUREMENT OF GOODS,

SUPPLIES AND MATERIALS

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SUSPENSION OF WORK

PE may suspend the work wholly or partly by writtenorder for a certain period of time due to force majeureor fortuitous events.

When the suspension order is lifted, or if the period ofthe order expires, the supplier or consultant shallresume work.

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LIQUIDATED DAMAGES

When bidder fails to perform obligations within specifiedschedule, inclusive of duly granted time extensions, he shall beliable for damages and shall pay the PE liquidates damages.

Bidder shall pay an amount equal to 1/10 of 1 of the cost of thecost of delayed goods scheduled for delivery for every day of delayuntil such goods are finally delivered and accepted by theprocuring entity.

PE need not prove it incurred actual damages.

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LIQUIDATED DAMAGES

Whichever is convenient to the procuring entity,amount shall be deducted from:1. any money due or which may become due to the

supplier, or2. collected from any securities or warranties posted

by the supplier,

If sum of liquidated damages reach 10% of thecontract amount, PE shall automatically rescind thecontract.

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ADVANCE PAYMENT

Made only after prior approval of the President.

Single advance payment not to exceed 50% of thecontract for the following services:◦ Hotel and restaurant services

◦ Use of conference/seminar and exhibit areas◦ Lease of office space

Advance payment not to exceed 15% allowed toaddress contingencies arising from natural or man-

made calamities in areas where “state of calamity” has been declared

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ADVANCE PAYMENT

For goods, 10% of the contract price shall be paidwithin 60 days from signing of contract and uponsubmission of a claim and a bank guarantee.(Amended by M.O. 15, series of 2011)

NOTE: Progress payments shall first be chargedagainst the advance payment until the latter is fullyexhausted. (UNLESS otherwise approved by the

President)

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CONTRACT IMPLEMENTATION

GUIDELINES FOR THE

PROCUREMENT OF

INFRASTRUCTURE PROJECTS

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VARIATION ORDER

Conditions:

1. Does not exceed 10% of the original contract price.

2. Scope of works shall not be reduced to accommodate

positive variation order.3. Any cumulative positive variation order beyond 10%

of the original contract price shall be subject ofanother contract to be bid out if works are separable

from the original contract.

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VARIATION ORDER

For an increase/decrease in quantities of work to be covered by Variation Order, it should be:

within the general scope of the Project as bid and awarded,

due to the change of plans, design, or alignment to suit actualfield conditions resulting in disparity between thepreconstruction plans used for purposes of bidding and the “asstaked plans” or the construction drawings prepared after the joint survey by the contractor and the government after award

of contract. (NPM 56-2013)

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ADVANCE PAYMENT

REQUIREMENTS:

1. Written request of the contractor

2. Submission of :

a. an irrevocable standby letter of credit of equivalent valuefrom a commercial bank;

b. bank guarantee,; or

c. surety bond

3. Amount not to exceed 15% of the contract price

4. Amount shall be repaid by the contractor

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ADVANCE PAYMENT

Section 4 of the Contract Implementation Guidelinesfor the Procurement of Infrastructure Projects(Guidelines) under Annex “ E ” of the revisedImplementing Rules and Regulations (IRR) of

Republic Act (RA) No. 9184

The President approved an advance payment notexceeding fifteen percent (15%) of the total contractprice, provided that requirements under Section 4 of

the Guidelines are complied with. (NPM 12-2013)

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ADVANCE PAYMENT

Advance payment in case of infrastructure projects may begranted by the procuring entity upon compliance with theconditions provided in Section 4 of the Guidelines and only forthe purpose of mobilization.

Thus, if the contractor has already mobilized its equipment andhas commenced with the required works under the contract,advance payment can no longer be provided as doing so alreadynegates the very purpose of granting such privilege to thecontractor. (NPM 56-2013)

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PROGRESS PAYMENT

Payments made by the Procuring Entity to thecontractor for portions of the work done.

Contractor may submit:

1. A statement of works accomplished (SWA) or progress billing

2. Request for progress payment for the work accomplished inamounts the contractor considers itself to be entitled to.

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PROGRESS PAYMENT

The procuring entity shall deduct the following from thecertified gross amounts to be paid to the contractor asprogress payment:

1. Cumulative value of the work previously certified and paid for.

2. Portion of the advance payment to be recouped for the month.3. Retention money in accordance with the condition of contract.

4. Amount to cover third party liabilities.

5. Amount to cover uncorrected discovered defects in the works

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RETENTION MONEY

Progress payments are subject to retention of ten percent (10%)referred to as the "retention money.“ This is to cover uncorrecteddefects after each progress billing.

It shall be based on the total amount due to the contractor priorto any deduction and shall be retained from every progresspayment until fifty percent (50 ) of the value of works, asdetermined by the procuring entity, are completed.

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RETENTION MONEY

SUBSTITUTE FOR RETENTION MONEY:

( provided that the project is on schedule and is satisfactorily undertaken)

1. Irrevocable letter of credit from commercial bank

2. bank guarantee or surety bond callable on demand.

*Valid for a duration determined by PE

No more retention if:

- work is satisfactorily done- work is on schedule

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LIQUIDATED DAMAGES

When contractor fails to perform obligations withinspecified contract time, inclusive of duly granted timeextensions, he shall be liable for damages and shallpay the PE liquidates damages equal to at least one

tenth (1/10) of one (1) percent of the cost of the

unperformed portion of the works for every day .ofdelay

If sum of liquidated damages reach 10% of the

contract amount, PE shall automatically rescind thecontract.

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SUSPENSION OF WORK

Contractor or its duly authorized representative shall have the rightto suspend work operation fifteen (15) calendar days from date ofreceipt of written notice from the contractor to the districtengineer/regional director/consultant or equivalent official, due to

the following:

1. There exist right-of-way problems.

2. Requisite construction plans which must be owner-furnished arenot issued to the contractor.

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SUSPENSION OF WORK

3. Peace and order conditions certified in writing by the PhilippineNational Police (PNP) and confirmed by the Department ofInterior and Local Government (DILG) Regional Director.

4. Failure on the part of the procuring entity to delivergovernment-furnished materials and equipment

5. Delay in the payment of contractor's claim for progress billingbeyond forty-five (45) calendar days from the time thecontractor's claim has been certified

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THANK YOU!!

Contact us:

Unit 2506 Raffles Corporate CenterF. Ortigas Road, Ortigas Center

Pasay City, Philippines 1605

TeleFax: (632)900-6741 to 44