ALTERNATIVE METHODS OF PROCUREMENT - Jagna: …jagna.gov.ph/wp-content/uploads/2015/02/… · PPT file · Web view · 2015-02-02resort to alternative methods of procurement,

ALTERNATIVE METHODS

OF PROCUREMENTCAPACITY DEVELOPMENT DIVISION

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

1

PROCUREMENT STANDARD

GENERAL RULE : Sec. 10All procurement shall be done through competitive bidding, except as provided in Rule XVI of the IRR.EXCEPTIONAlternative methods shall be resorted only:

1. In highly exceptional case2. To promote economy and efficiency3. Justified by the conditions specified in IRR4. Prior approval of the HOPE5. GPPB approval as required under EO 423, S. 2005 (as

amended)6. Most advantageous price for the Government

2

ALTERNATIVE METHODS

1. Limited Source Bidding2. Direct Contracting3. Repeat Order4. Shopping5. Negotiated Procurement

3

LIMITED SOURCE BIDDING(Sec. 49)

APPLICABILITY:GoodsConsulting services

CONDITIONS:Highly specialized types where only a few

bidders are known to be availableMajor plant components beneficial to limit

bidding to known qualified bidders to maintain uniform quality and performance of the plant

4

LIMITED SOURCE BIDDING List shall be maintained by the relevant government

authority (RGA) PE may be the relevant government authority List shall be updated periodically and submitted to the

GPPB

Pre-selection shall based on capability and resources to perform the contract taking into account: Experience and past performance on similar contracts Capabilities with respect to personnel, equipment,

and/or manufacturing facilities Financial position

5

LIMITED SOURCE BIDDINGPRE-SELECTION PROCEDURES PER GPM GPPB Resolution 06-2012

PE through BAC identifies LSB as applicable mode

Acquires/Issues a Pre-selected List

HOPE transmits list to the GPPB

GPPB-TSO acknowledges

receipt and posts the list in the

website (ministerial)

PE posts procurement

opportunity and conducts LSB

6

LIMITED SOURCE BIDDINGPRE-SELECTION PROCEDURES GPPB Resolution 06-2012

Relevant Government Authority?

PE represents itself as the RGA (self-generated

list

Issues a List?

Competitive Bidding

Limited Source Bidding

Request for a List

Y

N

Y

N

7

LIMITED SOURCE BIDDING In order to apply LSB on the procurement of motor

vehicle, PE should first establish that the motor vehicle sought to be procured is either a highly specialized type of goods or a major plant component; otherwise, Competitive Bidding shall apply. (NPM 63-2013)

Catering Services does not involve highly specialized requirements, and is undoubtedly not a major plant component. Limited Source Bidding cannot be resorted to in the procurement of Catering Services. Competitive Bidding should be resorted to in the acquisition of the contemplated service. (NPM 61-2013)

8

APPLICABILITY: Goods

CONDITIONS:

Items of proprietary nature from proprietary source Critical components from a specific supplier to hold a

contractor to guarantee its project performance Items sold by an exclusive manufacturer or dealer

no other suppliers selling it at lower prices no suitable substitute can be obtained at more

advantageous terms to the Government

DIRECT CONTRACTING

9

Since there are other Passport Readers available in the market apart from that manufactured by 3M Corporation, Direct Contracting cannot be utilized for the acquisition of brand new passport readers.

Even though 3M Passport Reader is proprietary in nature and can be obtained from the proprietary source, there may be other Passport Readers in the market, which are likewise proprietary in nature that can be obtained. (NPM 41-2013)

DIRECT CONTRACTING

10

APPLICABILITY:Goods

CONDITIONS:1. Same or lower unit prices, provided that such

prices are still the most advantageous to the GOP after price verification

2. No splitting of contracts3. Availed of within 6 months from the contract

effectivity date stated in the NTP arising from the original contract, except in cases duly approved by the GPPB

4. Not to exceed 25% of the quantity of each item 5. Original contract awarded through competitive

bidding

REPEAT ORDER

11

Repeat Order under Section 51 of RA 9184 does not require post-qualification.

The phrase “subject to post-qualification process described in the Bidding Documents”, as stated in the provision refers to Competitive Bidding and not to Repeat Order. (NPM 13-2013)

REPEAT ORDER

12

APPLICABILITY [52.1(A) AND (B)]: Goods

CONDITIONS [SHOPPING UNDER §52.1(A)]:1. There is an unforeseen contingency requiring

immediate purchase2. Amount does not exceed the threshold

CONDITIONS [SHOPPING UNDER §52.1(B)]:3. Procurement of ordinary or regular office supplies and

equipment not available in PS-DBM4. Amount does not exceed the threshold

SHOPPING

13

THRESHOLD FOR UNFORESEEN CONTINGENCIES [S. 52.1(a)]

NGAs, GOCCs, GFIs, SUCs – PhP100,000LGUs –

ClassificationMaximum Amount (in Philippine Pesos)

Province City Municipality1st Class 100,000 100,000 50,0002nd Class 100,000 100,000 50,0003rd Class 100,000 80,000 50,0004th Class 80,000 60,000 50,0005th Class 60,000 50,000 50,0006th Class 50,000 50,000 50,000

In the case of Barangays, the maximum amount is PhP50,000

14

APPLICABILITY All types of Procurement

CONDITIONS:1. Procurement does not fall under

Shopping [§52]2. Amount does not exceed the threshold

NEGOTIATED PROCUREMENTSMALL VALUE PROCUREMENT

15

NGAs, GOCCs, GFIs, SUCs – PhP500,000

LGUs –

SHOPPING [S 52.1(b)] ANDSMALL VALUE PROCUREMENT

ClassificationMaximum Amount (in Philippine Pesos)

Province City Municipality1st Class 500,000 500,000 100,0002nd Class 500,000 500,000 100,0003rd Class 500,000 400,000 100,0004th Class 400,000 300,000 50,0005th Class 300,000 200,000 50,0006th Class 200,000 100,000 50,000

In the case of Barangays, the maximum amount is PhP50,000

16

Decision to resort to shopping/SVP shall be reflected in the Annual Procurement Plan (APP)

After approval, BAC may delegate execution Posting in PhilGEPS required if amount is >

PhP50,000 Request for Quotation Extension of deadline for submission of

quotation Award

PE to validate legal, technical, and financial capability through relevant documents or other means

SHOPPING and SMALL VALUE PROCUREMENT

17

Attach copy of DILG Department Order

SHOPPING and SMALL VALUE PROCUREMENT COMMITTEE (SSVPC)

18

PROCEDURAL GUIDELINES:

SHOPPING and SMALL VALUE PROCUREMENT

Prepare RFQSend RFQ to at least

3 suppliers [may be 1 in case of

52.1(a)]

Prepare Abstract of Quotations

Extend deadline if no quotation is received

Award to LCB/HRB that complies with

specs and ABC

19

APPLICABILITY All types of Procurement

CONDITIONS:1. Two failed biddings2. Mandatory review of the following:

Minimum technical specifications ABC, which may be adjusted up to 20%

from last bidding

NEGOTIATED PROCUREMENTTWO FAILED BIDDINGS

20

BAC shall invite and engage in negotiations with sufficient number of suppliers, contractors or consultants to ensure effective competition

Requirements, guidelines, documents, clarifications, or other information relative to the negotiations shall be communicated on an equal basis


21

Submission of best and final offer by suppliers, contractors, or consultants on a specified date.

Criteria in selecting the successful offer:1. Offer should meet the PE’s minimum technical

requirements.2. Offer should not exceed ABC

Observers shall be invited in all stages


22

PROCEDURAL GUIDELINE


Preparation of RFQ Invitation of bidders

Submission and opening of 1st offer

Negotiation with bidders

Submission and opening of best and final offer (2nd offer)

23

Where the PE failed to receive any quotations for the procurement of the services of a private counsel despite posting twice in the PhilGEPS website, the procuring entity has the discretion to resort to alternative methods of procurement, subject to compliance with the parameters and factors laid out in RA 9184 and its associated IRR. (NPM 09-2013)


24

PE can only resort to Negotiated Procurement under Section 53.1 (Two-Failed Biddings) of the IRR of RA 9184 for the procurement of the Project if the two-failed biddings were due to circumstances enumerated under Section 35 of the same IRR.

If the failure of bidding is due to the declaration by the HOPE pursuant to Section 41 of the IRR , Negotiated Procurement (Two Failed Biddings) cannot be resorted to. (NPM 72-2013)


25

APPLICABILITY: All types of Procurement

CONDITIONS: In case of imminent danger to life or property during a state

of calamity When time is of the essence arising from natural or man-

made calamities Other causes where immediate action is necessary

• To prevent damage to or loss of life or property• To restore vital public services, infrastructure facilities

and other public utilities

NEGOTIATED PROCUREMENTEMERGENCY CASES

26


CONDITIONS: Rescinded or terminated contract Immediate action is necessary:

To prevent damage to or loss of life or property To restore vital public services, infrastructure

facilities, and other public utilities

NEGOTIATED PROCUREMENTTAKE-OVER OF CONTRACTS

27

Negotiate starting with the 2nd LCB or HRB at the bidder’s original bid price, then to the next if negotiation fails

If negotiation fails, invite a short list of at least 3 to submit bids and negotiate starting with the LCB or HRB

NEGOTIATED PROCUREMENTTAKE-OVER OF CONTRACTS

28

APPLICABILITY: Infrastructure Consulting Services

CONDITIONS:1. Subject contract is adjacent or contiguous to

an on-going infra or consulting2. Original contract is a result of competitive

bidding3. Subject contract has similar or related scopes

of work

NEGOTIATED PROCUREMENTADJACENT OR CONTIGUOUS

29

4. Within the contracting capacity of the contractor/consultant

5. The same prices or lower unit prices as the original contract less mobilization cost

6. Amount does not exceed amount of the on-going project

7. No negative slippage8. Negotiations commenced before expiry of

original contract

NEGOTIATED PROCUREMENTADJACENT OR CONTIGUOUS

30

NEGOTIATED PROCUREMENTAGENCY TO AGENCY


CONDITIONS:1. Cost-benefit analysis indicating A-to-A is more efficient

and economical2. A-to-A does not exceed 25% of PE’s total budget for

each category (goods, infra, consulting)3. Servicing agency has mandate to undertake the project4. Servicing agency owns or has access to necessary

tools required for the project

Other requirements provided in Implementing Guidelines on Agency-to-Agency Arrangements (GPPB Resolution 18-2007)

31


PITC Pharma, Inc. (PPI) has been given express mandate to be the central/lead agency for procurement of all government agencies’ requirements for drugs and medicines pursuant to RA 9501. However, RA 9501 does not exempt it from the procurement policies, rules and regulations established under RA 9184 and its IRR.

PPI is not exempt from posting a Performance Security under §39 of RA 9184 and its IRR when entering into a contract with other government agencies and the PE requires such security. (NPM 37-2013)

32


For the procurement of CTC, the more appropriate method to be used is A to A rather than Direct Contracting

In cases where procurement from another agency of the government is more efficient and economical, Negotiated Procurement under Section 53.5 (Agency-to-Agency Agreements) may be resorted to. This rule allows a government entity to procure from another government entity without need of public bidding, subject to compliance with the prescribed conditions and procedures under existing rules and the Guidelines on Agency-to-Agency Agreements (Guidelines). (NPM 52-2013)

33

NEGOTIATED PROCUREMENTPROCUREMENT AGENT


CONDITIONS: HOPE has determined that PE does not have procurement

proficiency or capability to undertake a particular procurement

ACTIONS AVAILABLE: Request other GOP agencies to undertake such

procurement for them Recruit and hire consultants or procurement agents to

assist them directly and/or train their staff in the management of the procurement function

34

NEGOTIATED PROCUREMENTPROCUREMENT AGENT

Where a PE has determined that it lacks the proficiency or capability to undertake its rehabilitation project, which need not be based solely on the PE’s failure to constitute its BAC, the PE may request another government agency to be its Procurement Agent as Section 53.6 of the IRR may also apply in cases where a BAC is validly constituted, but due to the number of bidding activities to be undertaken by the procuring entity; magnitude and complexity of the project; experience of the members of the BAC; location and situs of both the principal and the agent; and, other valid and reasonable circumstances, the procuring entity may not have the proficiency or capability to undertake the particular procurement activity. (NPM 38-2013)

35

NEGOTIATED PROCUREMENTHIGHLY TECHNICAL PROCUREMENT

APPLICABILITY: Consulting Services

CONDITIONS:1. Individual consultant2. Work involves:

Highly technical or proprietary Primarily confidential or policy determining, where

trust and confidence are the primary consideration3. Term is, at the most, 6 months, renewable at the option of

the appointing HOPE, but in no case to exceed the term of the latter

36

NEGOTIATED PROCUREMENTLEASE OF REAL PROPERTY

APPLICABILITY: Goods (Real Estate and Venue)CONDITIONS:

1. Cost-benefit analysis indicating leasing privately-owned real estate or venue is more efficient and economical

2. APP reflect the proposed lease3. Selection to follow the guidelines (GPPB Resolution 08-2009)

Eligibility documents need not be submitted, but PE must validate whether lessor is technically, legally, and financially capable through other means

Lease contracts costing > PhP50,000 should be posted in the PhilGEPS

37

NEGOTIATED PROCUREMENTNGO PARTICIPATION


CONDITIONS: Appropriation law or ordinance earmarks an amount to

be contracted to NGOs

PE may opt to conduct public bidding or negotiated procurement for the selection of NGO, subject to the rules provided in the guidelines (GPPB Resolution 12-2007)

38

NEGOTIATED PROCUREMENTCOMMUNITY PARTICIPATION

APPLICABILITY: Delivery of goods, including non-consulting services and

simple infrastructure projects

CONDITIONS:1. In the interest of project sustainability or to achieve

certain specific social objectives2. PE to propose procedures, specifications, and contract

packaging for GPPB approval

39

NEGOTIATED PROCUREMENTUN AGENCIES


CONDITIONS: Procure from UN Agencies Small quantities of off-the-shelf goods, primarily in the

fields of education and health Specialized products where the number of suppliers is

limited (e.g., vaccines or drugs)

40

OTHER TERMS AND CONDITIONS Most advantageous price for government should be obtained

(S48.1)

Splitting of contracts strictly prohibited (S54.1)

Advertisement and posting for the following methods may be dispensed with provided that the BAC through its Secretariat shall post the Invitation or Request for Submission of Price Quotations:

Shopping [§52.1(b)] Except: PhP50,000 and below

Negotiated Procurement under Two Failed Biddings [§53.1] NGO Participation [§53.11] Small Value Procurement [§53.9]

Except: PhP50,000 and below

OTHER TERMS AND CONDITIONS

ALL awards should be posted, except Shopping and Small Value Procurement with ABC of

PhP50,000 and below

Bid security NOT necessary, except in Limited Source Bidding

Performance and warranty securities necessary, except: Shopping [§52] Emergency Cases [§53.2] Small Value Procurement [§53.9] Lease of Real Property [§53.10] Procurement from UN agencies [§53.13]

42

SUMMARY

Method Goods Infrastructure

Consulting

1. Limited Source Bidding 2. Direct Contracting 3. Repeat Order 4. Shopping 5. Negotiated Procurement

43

SUMMARY

Negotiated Procurement Goods Infra Consulting

1. Small Value Procurement

2. Two Failed Biddings

3. Emergency Cases

4. Take Over Contracts

5. Adjacent or Contiguous

6. Agency to Agency

44

SUMMARY

Negotiated Procurement Goods Infra Consulting

7. Procurement Agent

8. Highly Technical Consultants

9. Lease of Real Property

10. NGO Participation

11. Community Participation

12. UN Agencies

45

THANK YOU!!

Contact us at:

Unit 2506 Raffles Corporate CenterF. Ortigas Road, Ortigas CenterPasig City, Philippines 1605

TeleFax: (632)900-6741 to 44

46