Salient IRR Revisions

Alternative Methods of Procurement

IRR: Alternative Methods

General Rule: Public Bidding APP provides sufficient lead time for bidding

Resort to Alternative Methods allowed- Highly exceptional cases To promote economy and efficiency Justified by conditions specified in IRR

IRR: Alternative Methods

Limited Source Bidding (Sec. 49)

Procedure for pre-selection shall be outlined in Generic Procurement Manual Invitation shall be advertised Those who meet specified criteria shall be pre-

selected List shall be updated periodically

IRR: Alternative Methods

Limited Source Bidding (Sec. 49)

List to be maintained by relevant government authority Procuring entity may be the relevant government

authority Submitted to GPPB

IRR: Alternative Methods

Shopping and Small Value Procurement (Secs. 52 & 53.9)

Higher thresholds set for shopping and small value procurement Guidelines to follow

For Foreign-funded procurement, thresholds shall be agreed upon between GOP and foreign government/institution

Higher Threshold Amount for Unforeseen Contingencies

NGAs, GOCCs, GFIs, SUCs – P100,000

LGUs –

In the case of Barangays, the maximum amount is P50,000

Shopping & Small Value Procurement

ClassificationMaximum Amount (in Philippine Pesos)

Province City Municipality

1st Class 100,000 100,000 50,000

2nd Class 100,000 100,000 50,000

3rd Class 100,000 80,000 50,000

4th Class 80,000 60,000 50,000

5th Class 60,000 50,000 50,000

6th Class 50,000 50,000 50,000

Higher Threshold Amount for Regular Office Supplies and Small Value Procurement

NGAs, GOCCs, GFIs, SUCs – P500,000

LGUs –

In the case of Barangays, the maximum amount is P50,000

Shopping & Small Value Procurement

ClassificationMaximum Amount (in Philippine Pesos)

Province City Municipality

1st Class 500,000 500,000 100,000

2nd Class 500,000 500,000 100,000

3rd Class 500,000 400,000 100,000

4th Class 400,000 300,000 50,000

5th Class 300,000 200,000 50,000

6th Class 200,000 100,000 50,000

IRR: Alternative Methods

Negotiated Procurement (Sec. 53)

Clearer rules on two-failed bidding

Additional instances of negotiated procurement

IRR: Alternative Methods

Recap: Failure of Bidding (Sec. 35)

Mandatory review after each failed bidding

Based on findings Revise terms, conditions, specifications Adjust ABC, subject to required approvals

Rebid Invite previous bidders

IRR: Alternative Methods

Two-Failed Bidding (Sec. 53.1)

Mandatory review and agree on the following: Minimum technical specifications ABC adjusted only up to 20%

Invite sufficient number to ensure competition

Information communicated on an equal basis

IRR: Alternative Methods

Two-Failed Bidding (Sec. 53.1, cont.)

Simultaneous negotiations

Submission of best and final offer on a specified date

IRR: Alternative Methods

Two-Failed Bidding (Sec. 53.1, cont.)

Successful offer to be selected: Meet minimum technical specifications Does not exceed ABC

Observers shall be invited in all stages

IRR: Alternative Methods

Distinction between the following:

Agency-to-Agency (Sec. 53.5) GOCCs formed under the Corporation Code excluded Implementing Guidelines on A2A

Procurement Agent (Sec. 53.6)

By Administration (Sec. 7.3.2[a])

IRR: Alternative Methods

Additional instances of Negotiated Procurement:

Lease of Real Property (Sec. 53.10) Include lease of venues Guidelines to follow

IRR: Alternative Methods

Additional instances of Negotiated Procurement:

Community Participation (Sec. 52.12) Local community participation in service delivery

Project sustainability Meet social objectives

Procuring entity shall propose (procedures, specifications and contract packaging)

Subject to GPPB approval

IRR: Alternative Methods

Additional instances of Negotiated Procurement:

United Nations Agencies (Sec. 52.13) Small quantities of off-the-shelf goods (education and

health) Specialized products (vaccines or drugs)

IRR: Alternative Methods

Other Terms and Conditions

In all instances, the most advantageous price for government should be obtained (Sec. 48.1)

Splitting of contracts is not allowed (Sec. 54.1)

IRR: Alternative Methods

Other Terms and Conditions (Sec. 54)

Posting not necessary, except: shopping [Sec. 52.1(b)], two-failed biddings [Sec. 53.1] small value procurement [Sec. 53.9]

But all awards to be posted

IRR: Alternative Methods

Other Terms and Conditions (Sec. 54)

Bid securities not necessary, except: Limited Source Bidding (Sec. 49)

IRR: Alternative Methods

Other Terms and Conditions (Sec. 54)

Performance and Warranty Securities necessary, except Shopping [Sec. 52] Emergency Cases [Sec. 53.2] Small value procurement [Sec. 53.9] Lease of real property [Sec. 53.10] Procurement from UN agencies [Sec. 53.13]

Thank you

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