Revised IRR RA 9184 (Goods)

Salient IRR RevisionsProcurement of Goods

IRR Revisions: Goods Eligibility Requirements (Sec. 23)

Legal Documents DTI / SEC / CDA Registration Mayor’s permit for principal place of business

Technical Documents Statement of all on-going and completed contracts

IRR Revisions: Goods Eligibility Requirements (Sec. 23)

Financial Documents Audited Financial Statement received by the BIR NFCC computation or Credit Line Commitment from a

universal or commercial bank For LGUs, other banks authorized by BSP to issue said instrument

IRR Revisions: Goods Eligibility Requirements (Sec. 23)

If Joint Venture - JVA If no JVA, sworn statements by each partner that they will

enter into and abide by provisions of the JVA if awarded the contract

IRR Revisions: Goods Eligibility Criteria (Sec. 23)

Legal Eligibility General rule: 60% Filipino Foreign bidders eligible allowed –

If stated in treaty, international or executive agreement National of a country offering reciprocity rights to Filipinos

(RA 5183) Goods not available from local suppliers To prevent situations that defeat competition or restrain

trade

IRR Revisions: Goods Eligibility Requirements for Foreign Bidders (Sec.

23)

Submit equivalent documents issued by country

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

IRR Revisions: Goods Eligibility Criteria (Sec. 23)

Single Largest Contract for GoodsGeneral 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 and after market research, applying the general rule will likely result to:1.Failure of bidding; or2.Monopoly

a) At least 2 similar contracts aggregate amount at least equivalent to required percentage; and

b) Largest of the similar contracts amounts to at least 50% of required percentage

IRR Revisions: Goods Eligibility Criteria (Sec. 23)

Expendable Supplies (Sec. 5 [m]) Articles normally consumed within 1 year or value is

substantially decreased after 1 year Examples: medicines, stationery, fuel, and spare

parts

IRR Revisions: Goods Eligibility Criteria (Sec. 23)

Non-expendable Supplies (Sec. 5 [w]) Not consumed in use Serviceable life more than 1 year Examples: furniture, fixtures, transport, and other

equipment

IRR Revisions: Goods Eligibility Criteria (Sec. 23)

Financial Eligibility NFCC at least equal to ABC Credit Line Certificate at least equal to 10% of ABC

Issued/confirmed by Universal or Commercial Bank For LGUs: other banks certified by BSP as authorized to

issued said CLC Option to submit cash deposit certificate deleted

IRR Revisions: Goods Submission and Receipt of Bids (Sec. 25)

Two-Envelope System (Eligibility requirements included in the Technical Proposal)

IRR Revisions: Goods Submission and Receipt of Bids (Sec. 25)

First Envelope Eligibility requirements Bid security Technical specifications Omnibus sworn statement

IRR Revisions: Goods Submission and Receipt of Bids (Sec. 25)

Second Envelope Financial information/documents specified in the

Philippine Bidding Documents

IRR Revisions: Goods Bid Opening (Sec. 29)

BAC shall adopt a procedure for ensuring the integrity, security, and confidentiality of all submitted bids

IRR Revisions: Goods No Contact Rule (Sec. 32)

BAC, thru Secretariat, may request for clarification of bid as long as it is in writing

IRR Revisions: Goods Post-qualification (Sec. 34)

Submission of the ff documents within 3 calendar days from receipt of notice that bidder is LCB: Tax clearance Latest income and business tax returns Certificate of PhilGEPS registration Other appropriate licenses and permits required by

law and stated in the Bidding Documents.

IRR Revisions: Goods Notice of Award (Sec. 37)

Conditioned on the following: If joint venture, submission of JVA Posting of Performance Security Signing of Contract If required, approvals by higher authority

IRR Revisions: Goods Bid & Performance Securities (Secs. 27 & 39)

Deleted certified check from acceptable forms

In general, bank issued securities must be issued by a universal/commercial bank For LGUs, securities may be issued by banks certified

by BSP as authorized to issue said instruments

Surety Bonds must be accompanied by certification from Insurance Commission that issuer is authorized to issue such security

IRR Revisions: GoodsForm of Bid and

Performance SecurityAmt of Bid Security

(% of the ABC)Amt of Performance

Security (% of Contract Price)

a)Cash, cashier’s/manager’s check, bank guarantee/ draft

2% 5%b) Irrevocable LC

c)Surety bond callable upon demand

5% 30%

d) Combination of the foregoing

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

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

IRR Revisions: Goods Domestic and Foreign Goods (Sec. 43)

Requires procuring entity to give preference to domestic entities and to materials and supplies produced, made, and manufactured in the Philippines (domestic bidder).

IRR Revisions: Goods Domestic and Foreign Goods (Sec. 43)

Domestic entities (Sec. 5 [k]) 75% Filipino Habitually established in business and engaged in the

manufacture or sale of product to be bid In existence for at least 5 consecutive years

Domestic entities can only claim preference if certified by SEC/DTI/CDA

IRR Revisions: Goods Domestic and Foreign Goods (Sec. 43)

Domestic bidder (Sec. 5 [j]) Any person or entity Offering articles/materials/supplies

If unmanufactured, grown or produced in the Philippines If manufactured, substantially from those grown or

produced in the Philippines

Domestic bidder can only claim preference if certified by DTI

IRR Revisions: Goods Domestic and Foreign Goods (Sec. 43)

Provides procedures in determining entitlement to domestic preference

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

SAMPLE APPLICATION OF PREFERENCE

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, orAward to Foreign Bidder if Domestic Bidder/Entity refuses

Sample Computation

IRR Revisions: Goods Warranty Security (Sec. 62)

Expendable Supplies – 3 months, unless consumed earlier

Non-expendable Supplies – 1 year

IRR Revisions: Goods Advance Payment for Goods

Goods supplied from abroad 10% advance payment allowed Upon submission of a bank guarantee

Equivalent amount Valid until goods are delivered

Thank you Comments, questions?

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