STANDARD BIDDING PROCEDURES FOR INFRASTRUCTURE …

STANDARD BIDDING PROCEDURES

FOR INFRASTRUCTURE

PROJECTS

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution without the author’s approval is prohibited.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and

distribution without the author’s approval is prohibited.

MODULE OBJECTIVES

By the end of this module, participants should be able to:

1. Understand key concepts in the bidding procedures

for the procurement of infrastructure projects; and

2. Implement procurement activities involving

infrastructure projects, in compliance with Republic

Act No. 9184 and its 2016 revised Implementing

Rules and Regulations.

General Principles and Considerations I

II Competitive Bidding Procedure and

Requirements for Infrastructure Projects

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and

distribution without the author’s approval is prohibited.

GENERAL PRINCIPLES AND

CONSIDERATIONS


GENERAL MODE OF PROCUREMENT

Competitive Bidding (Sec. 10, IRR of R.A. No. 9184)

Default Method

Alternative Methods of

Procurement (Sec. 48 to 54, IRR of R.A. No. 9184)

Exception

It is a method of procurement

which is open to participation by

any interested party and which

consists of the following

processes:

1) advertisement,

2) pre-bid conference,

3) eligibility screening of

prospective bidders,

4) receipt and opening of bids,

5) evaluation of bids,

6) post-qualification, and

7) award of contract.

(Sec. 5(h), IRR of RA 9184)

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution

without the author’s approval is prohibited.

COMPETITIVE BIDDING



PROCUREMENT STANDARD

No procurement shall be undertaken unless it is in accordance with the approved

Annual Procurement Plan (APP) of the PE

The method of procurement to be used shall be as indicated in the approved APP

Mode of

Procurement



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. This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution


REQUIREMENTS PRIOR TO COMMENCEMENT OF

PROCUREMENT

These shall likewise form part of the Bidding Documents

The DPWH Standard

Specifications for Public

Works and Highways (“Blue

Book”) shall be the main

basis for the standards and

codes to be met by the goods

and materials to be furnished

and work performed or tested

for the Contract.

� Scope of Work/

Technical Specifications

Graphic

representation of

the Works required

� Plans/Drawings

List of the specific

items of the Work

and their

corresponding unit

prices, lump sums,

and/or provisional

sums

� Bill of Quantities




PROCUREMENT

� Plans/Drawings

� Bill of Quantities




PROCUREMENT

Detailed Engineering:

❑Detailed engineering investigations, surveys and designs

❑ 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

Exemption: In case of Design and Build Scheme (Annex “G” of the 2016

Revised IRR of RA No. 9184)



DETAILED ENGINEERING FOR THE PROCUREMENT

OF INFRASTRUCTURE PROJECTS

Annex “A” of the 2016 revised IRR of RA No. 9184



A schedule of detailed engineering activities involves the following:

a) Survey

b) Site Investigation

c) Soils and Foundation Investigation

d) Construction Materials Investigation

e) Preparation of Design Plans

f) Preparation of Technical Specifications

g) Preparation of Quantity and Cost Estimates

h) Preparation of Program of Work

i) Preparation of Proposed Construction Schedule

(and estimated Cash Flow for projects with

Schedule over Six (6) Months)

j) Preparation of Site or Right-of-Way Plans

including Schedule of Acquisition

k) Preparation of Utility Relocation Plan

l) Preparation and Submission of Design Report

m) Environmental Impact Statement for critical

project as defined by the Department of

Environment and Natural Resources (DENR)

n) Preparation of minimum requirements for a

Construction Safety and Health Program for the

project being considered

o) Value Engineering Studies

p) Preparation of Bid/Tender Documents

DETAILED ENGINEERING FOR THE PROCUREMENT

OF INFRASTRUCTURE PROJECTS

Annex “A” of the 2016 revised IRR of RA No. 9184



Work under detailed engineering may cover the following:

a) Design Standards

b) Field Surveys and Investigations

c) Contract Plans

d) Quantities

e) Special Provisions

f) Unit Prices

g) Approved Budget for the Contract

h) Bidding Documents

i) Program of Work

j) Contract Time or Duration

k) Warranty Period

l) Preparation of Utility Relocation Plan

m) Value Engineering Site or Right-of-

Way Acquisition Plans and

Resettlement Action Plans

WHO ARE ELIGIBLE BIDDERS

Duly licensed Filipino citizens/sole proprietorships

Partnerships with at least 60% Filipino interest or

ownership

Corporations with at least 60% Filipino interest or

ownership

Cooperatives duly organized under the laws of the

Philippines

Joint Ventures (JVs) with at least 60% Filipino

interest or ownership

Foreign bidders when provided under any Treaty

or International or Executive Agreement



FOREIGN EQUITY REQUIREMENT IN

GOVERNMENT PROCUREMENT

✔Promulgated the 11th Foreign Investment Negative List (FINL) which provides for limitation

on investment by foreign entities in specific business and/or industry

✔ Intended to ease restrictions on foreign participation in certain investment areas or

activities by increasing the threshold of how much foreign entities may own from 25% to

40%

Executive Order No. 65, s. 2018

✔Partnerships duly organized under the laws of the Philippines and which at least 60%

[from 75%] of the interest belongs to citizens of the Philippines

✔Corporations duly organized under the laws of the Philippines, and of which at least 60%

of the outstanding capital stock belongs to citizens of the Philippines

✔For persons/entities forming themselves into a joint venture, Filipino ownership or interest of

the joint venture concerned shall be at least 60%

Amendment on Foreign Equity Requirement



WHO ARE ELIGIBLE BIDDERS

JVs with less than 60% Filipino

ownership or interest may be allowed

to participate if:

❑The structures to be built require the

application of techniques and/or

technologies which are not adequately

possessed by a person/entity meeting

the 60% Filipino ownership requirement

Provided further that Filipino ownership

or interest shall not be less than 25%

GOCCs may be eligible to

participate only if they can

establish that:

❑They are legally and

financially autonomous;

❑They operate under

commercial law; and

❑They are not attached

agencies of the PE



INVITATION TO OBSERVERS

Represent the public, the taxpayers who are

interested in seeing to it that procurement laws are

observed and irregularities are averted Must be invited in writing at least five (5) calendar

days (CD) before the date of the following

procurement stage/activity:

Pre-bid Conference Preliminary Bid

Examination

Bid Evaluation Post-Qualification

At least three (3)

Observers

COA

Duly recognized

private sector

group

NGO



ONLINE ACCESS TO OBSERVERS

Online monitoring for

observers using the mPhilGEPS

PEs to provide online access to

observers for monitoring all stages of

procurement using the mPhilGEPS

PEs to inform the GPPB-TSO via

email ([email protected]) if

online access cannot be provided

3

2

1

GPPB Resolution No. 04-2021 and Circular No. 01-2021

mailto:[email protected]

COMPETITIVE BIDDING

PROCEDURE AND

REQUIREMENTS FOR



STANDARD BIDDING PROCEDURE FOR




USE OF DIGITAL SIGNATURES

GPPB Resolution No. 16-2019;

GPPB Resolution No. 09-2020

Procurement officers and

officials may digitally or

electronically sign procurement

documents

PPMP and APP

RFQ/ RFP

PBDs

Invitation to Bid/ REI

Supplemental/ Bid

Bulletin

Notice of Postponement

Notice of Eligibility

Notice of Shortlisting

Abstract of Quotations

Abstract of Bids

Bid Evaluation Report

Notice to the LCB

Post- Qualification Report

Notice of Post-Disqualification

Notice of Award

Approval of Higher

Authority

Notice to Proceed

BAC Resolutions

22 22

USE OF VIDEOCONFERENCING, WEBCASTING & SIMILAR TECHNOLOGY

(GPPB Resolution No. 24-2018)

Procurement Activities that may be conducted electronically

Pre-Procurement Conference Bid Opening All other procurement

activities/ meetings



23 23

TRANSPARENCY REQUIREMENTS

FOR PROCURING ENTITIES

All PEs are reminded of the transparency

and accountability requirements under RA

No. 9184 and its 2016 IRR, the General

Appropriations Act (GAA), Resolutions

issued by the Government Procurement

Policy Board (GPPB) and other relevant

laws, rules and regulations.

GPPB Circular No. 01-2021

24 24



Document or Information

Invitation to Bid

Downloadable complete

Bidding Documents

Supplemental Bid Bulletin,

if applicable

Notice of Postponement

PhilGEPS

website

Conspicuous

Place

PE’s website, if

any Others

✓ ✓ ✓ Conspicuous

Place


Place

✓ ✓ ✓ Send to all those

who have secured

the Bid Docs


Place

25 25



Document or Information

Notice of Award

Notice to Proceed

Approved Contract

PhilGEPS

website

Conspicuous

Place

PE’s website, if

any Others


Place

✓ ✓ Conspicuous

Place

✓ ✓ Conspicuous

Place

26 26

Decisions made of at least a majority of the BAC members present, using such

technology shall be considered valid and binding

QUORUM A member of the BAC (including

Chairperson and Vice-

Chairperson) may be present

either in person or face-to-face

through videoconferencing,

webcasting or similar

technology for PEs with such technology

USE OF VIDEOCONFERENCING, WEBCASTING & SIMILAR TECHNOLOGY




PRE-PROCUREMENT CONFERENCE

� Description and scope of the contract

� Approved Budget for the Contract

(ABC)

� Contract duration

� Whether project is in accordance with

the PPMP and APP

� Availability of appropriations

� Completeness and correctness of the

Bidding Documents

Purpose: To determine the readiness of the procurement

� Completion of the detailed engineering

according to the prescribed standards in

the case of Infrastructure Projects

� Availability of right-of-way site or location,

and the possession of affected properties

� Review and adopt the procurement

schedule

� Reiterate and emphasize the importance

of confidentiality



PRE-PROCUREMENT CONFERENCE

❑Conducted

prior to

advertisement

or posting of

the Invitation to

Bid (IB)

❑Mandatory for

projects with

Approved Budget

for the Contract

(ABC) above

PhP5,000,000.00

Condition

❑Bids and Awards

Committee (BAC)

❑BAC Secretariat

❑Technical Working

Group (TWG)

❑Consultants for the

subject procurement

project, if any

❑End-user unit

❑Other Officials

� Participants Timeline



REFERENCE TO BRAND NAMES

Sec. 18 of RA 9184 and its IRR

❑The prohibition applies to the procurement of goods, and

goods component of Infrastructure Projects and Consulting

Services.

❑Specifications should be based on relevant characteristics,

functionality and performance requirements, 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.



ADVERTISEMENT/POSTING OF THE

INVITATION TO BID

To signal the

start of the

bidding process

and invite

interested

bidders to

participate in the

procurement

activity

Purpose

Bid opportunity, including complete Bidding Documents

shall be posted continuously for seven (7) CDs, in the

following: ✔ Philippine Government Electronic Procurement System

(PhilGEPS);

✔ Website of the PE, if any;

✔ Website of IFI, if applicable; and

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

Guidelines



SUNSET PROVISION ON ADVERTISEMENT IN

NEWSPAPER

However:

Advertisement of bid opportunities in a newspaper

shall no longer be required two (2) years after the

effectivity of the 2016 Revised IRR of RA No. 9184 or

from October 28, 2018 onwards (GPPB Resolution

No. 22-2018)

PEs that cannot post its opportunities in the PhilGEPS for

justifiable reasons shall continue to publish its advertisements in

a newspaper of general nationwide circulation

Posting shall be for a continuous period of 7 calendar days



32 32

POSTING IN OFFICIAL WEBSITE AND

SOCIAL MEDIA PLATFORMS

All agencies and instrumentalities

under the Executive Department shall

post the Request for Invitation to Bid

on their official websites and social

media platforms in an organized

manner and shall ensure its security

and integrity

GPPB Circular No. 01-2021

BIDDING DOCUMENTS FEE

❑ PEs may charge fees for the acquisition of Bidding

Documents based on the following rates:

APPROVED BUDGET FOR THE

CONTRACT

MAXIMUM COST OF BIDDING

DOCUMENTS IN PHP

500, 000 and below 500.00

More than 500, 000 up to 1 Million 1,000.00

More than 1 Million up to 5 Million 5,000.00



More than 50 Million to 500 Million 50,000.00

More than 500 Million 75,000.00

May be refunded based on the

grounds provided for under Section 41 (Reservation

Clause)



PRE-BID CONFERENCE

❑ To discuss, clarify and explain, among other things,

the eligibility requirements and the technical and

financial components of the contract to be bid

including questions and clarifications raised by the

prospective bidders before and during the Pre-Bid

Conference

❑ It is open to prospective bidders, but attendance shall

not be mandatory

Purpose



PRE-BID CONFERENCE

❑Held at least 12 CDs before deadline for bid

submission but not earlier than 7 CDs from the

PhilGEPS posting of the IB and Bidding

Documents

❑May be held at least 30 CDs before deadline for

bid submission, considering the following:

✔Method, nature, and complexity of contract

✔International participation is more

advantageous

Timeline

❑Mandatory for

projects with

ABC of

PhP1,000,000.00

or more

Condition



Minutes of the Pre-Bid Conference is no longer required to be

posted in the website of the PE.


MEASURES TO MAXIMIZE PRE-BID CONFERENCE

BAC shall have a proactive role during the Pre-Bid Conference by:

Initiating discussions on the requirements of the

project

Discussing the common reasons of bidders’

disqualification and ways to prevent occurrence of

such reasons


Issuance of Supplemental/Bid Bulletin at its own

initiative or in response to requests for clarifications



MEASURES TO MAXIMIZE PRE-BID CONFERENCE

BAC shall have a proactive role during the Pre-Bid Conference by:


Provision of alternative documents to the Eligibility

Requirements

Relaxing the eligibility requirements for foreign

consultants

Separate eligibility requirements for individual

consultants

Less stringent rules in sealing and marking of bids



SUPPLEMENTAL/BID BULLETINS

Issued by the BAC, duly signed

by BAC Chairperson, to:

❑ Answer requests for

clarification or interpretation

❑ Clarify or modify any

provision of Bidding Docs

Purpose

❑ Must be issued at

least 7 CDs

before deadline

for bid

submission

❑ Meanwhile,

queries should be

submitted to the

BAC 10 CDs

before deadline

for bid

submission

Timeline

❑Must be posted in

PhilGEPS and PE’s

website, and at a

conspicuous place within

the premises of the PE

❑Bidders who have

submitted bids before

issuance of

Supplemental/Bid Bulletin

must be informed in

writing and allowed to

modify or withdraw their

bids

Conditions

This learning module was developed by the Government Procurement Policy Board – Technical Support

Office, and any form of reproduction and distribution without the author’s approval is prohibited.

SUBMISSION AND RECEIPT OF BIDS

Bids should be submitted

to the BAC on the date,

time, and either at its

physical address or

through online

submission specified in

the IB, through the

bidder’s duly authorized

representative in a Two-

Envelope System

Financial Proposal

Bids should be valid for a period not exceeding one hundred twenty

(120) calendar days from the date of the opening of bids



40 40

40

40

Enclose the ORIGINAL eligibility and

technical documents in one sealed

envelope marked “ORIGINAL –

TECHNICAL COMPONENT” and the

ORIGINAL financial component in

another sealed envelope marked

“ORIGINAL – FINANCIAL

COMPONENT” (Apply the same for copies, if PE quested, but

marking should be “Copy # - Technical/Financial

Component”)

1

SEALING AND MARKING OF BIDS



41 41

41

41

Seal both envelopes in an

outer envelope marked

“ORIGINAL BID”

(Apply the same for copies, if PE requested,

but marking should be “Copy # of Original

Bid”)

2




42 42

42

42

The ORIGINAL

Technical/Financial Envelope

and the COPY Envelopes, if

any, shall be CONTAINED in

ONE ENVELOPE 3





Unsealed or unmarked

bid envelopes or in case

of electronic bid

submission, not in

compressed archive

folders and are not

password-protected

REJECTED

Improperly sealed and

marked bid envelopes or

not properly compressed

and password-protected

ACCEPTED Provided that the bidder or

its duly authorized

representative shall

acknowledge such condition

of the bid as submitted.

ELECTRONIC SUBMISSION AND

RECEIPT OF BIDS

GPPB RESOLUTION NO. 09-2020

1. Through Any Electronic Means Available

Online or electronic submission and receipt of bids for procurement

modalities where a two-envelope procedure or sealed price quotation is

required shall be allowed.

2. Through the GPPB Online Portal

https://gppbgovph.com/ Currently being developed

The BAC shall decide whether to allow the online or electronic submission and

receipt of bids based on the PE’s procurement needs and capabilities, and shall

be clearly stated in the IB, including bidding documents if allowed



https://gppbgovph.com/





Capable of

generating an audit

trail of transactions

to ensure the

security, integrity and

authenticity of bid submissions


RECEIPT OF BIDS


SUBMISSION THROUGH ANY ELECTRONIC MEANS AVAILABLE

PASSWORD-PROTECTED

BIDDING DOCUMENTS

Password Protection

Archive Format

Compression

�

Upon receipt of the first and second envelopes, PEs shall generate a Bid

receipt page for the official time of submission which can be saved or

printed by the bidder

Passwords shall be disclosed by the

Bidders only during the actual bid opening



CERTIFICATION ON ELECTRONIC SUBMISSION

AND RECEIPT OF BIDS


Certification, using GPPB-prescribed format, must:

❑ Be issued by the highest official managing the Information

Technology system of the agency

❑ Describe the electronic system or procedure to be used by

the PE for the electronic submission and receipt of bids, and

compliant with the requirements under GPPB Resolution No.

09-2020

❑ Submitted to the GPPB-TSO through

[email protected]



mailto:[email protected]


Bids submitted after the deadline shall not be accepted

Date of submission should not be later than the

following periods from the last day of posting of the IB:

ABC (in PhP) PERIOD (in CD)

50,000,000.00 and Below 50

Above 50,000,000.00 65

The BAC Secretariat shall notify in writing all bidders

whose bids it has received through its PhilGEPS-

registered physical address or official e-mail address

within 7 CD from the date of the bid opening

For bids submitted

electronically, the PEs shall

generate a Bid receipt page for

the official time of submission

which can be saved or printed

by the bidder, upon receipt of

the first and second envelope





MODIFICATION OF BIDS

All Bids may be

modified before

the deadline

WITHDRAWAL OF BIDS

❑ LETTER of WITHDRAWAL, must be

received prior to the deadline for

submission and receipt of bids

❑ Withdrawing bidder is NOT allowed

to submit another Bid.

❑ For bids withdrawn within the interval

between the deadline and expiration

of Bid validity, the Bid Security shall

be FORFEITED

For electronic bid submission, Bidders shall send

another Bid equally secured, properly identified, and

labelled as a “modification” of the one previously

submitted. The time indicated in the latest Bid receipt

page generated shall be the official time of submission.




OPENING AND PRELIMINARY EXAMINATION OF BIDS

The BAC shall open the bids in public immediately after the deadline for the

submission and receipt of bids

Checking presence

or absence of

submitted documents

against a checklist of

required documents

using a non-

discretionary

“pass/fail” criterion

▪ Only 2nd Envelopes of

bidders whose 1st Envelope

was rated “Passed” will be

opened

▪ Bids with missing,

incomplete or patently

insufficient, and/or bid price

exceeding the ABC shall be

rated “Failed”

Ranking

Only bidders

whose both 1st

and 2nd

envelopes were

rated “Passed”

will be ranked

Opening of

1st Envelope Opening of

2nd Envelope An electronic

copy that cannot

be opened or is

Corrupted shall

be considered

non-responsive

and, thus,

automatically

disqualified.

OPENING AND PRELIMINARY EXAMINATION OF BIDS

4.57

In case the submitted bids cannot be opened

as scheduled due to justifiable reasons, the

BAC shall take custody of the said bids and

reschedule the opening on the next working

day or at the soonest possible time through

the issuance of a Notice of Postponement

to be posted in the PhilGEPS website and the

website of the PE concerned.

OF

POSTPONEMENT



OPENING AND EVALUATION OF 1ST ENVELOPE

1. Legal Documents

2. Technical

Documents

3. Financial

Documents

Eligibility Requirements

1. Bid Security

2. Project

Requirements

3. Omnibus Sworn

Statement

Technical Requirements Opening of 1st Envelope –

Eligibility Docs & Technical

Requirements



ELIGIBILITY REQUIREMENTS C

las

s “

A”

� PhilGEPS

Certificate of

Registration

and

Membership

Legal

� Statement of all ongoing

contracts

� Statement of Single Largest

Completed Contract (SLCC)

� Philippine Contractors

Accreditation Board (PCAB)

License (For Joint Venture)

� Net Financial

Contracting

Capacity

(NFCC)

Technical Financial

Class “B” � In case of JV, JV Agreement entered into by the parties



ELIGIBILITY REQUIREMENTS (CLASS “A”)

PhilGEPS Certificate of Registration and Membership

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):

1. Registration Certificate;

2. Mayor’s/Business Permit or its Equivalent Document;

3. Tax Clearance;

4. PCAB license and registration; and

5. Audited Financial Statements (AFS)

Mandatory submission of PhilGEPS Certificate of Registration and Membership under Platinum category

for Competitive Bidding, Limited Source Bidding and Two-Failed Bidding has been suspended, thus,

bidders can submit the individual eligibility documents. However, said Certificate shall be required to be

submitted during post-qualification (GPPB Circular No. 07-2017)



ELIGIBILITY REQUIREMENTS (CLASS “A”)

PhilGEPS Certificate of Registration and Membership

For foreign bidders participating in the procurement by a Philippine

Foreign Service Office or Post, they shall submit their eligibility

documents under Section 23.1, 2016 IRR of R.A. No. 9184.

Provided, that the winning bidder shall register with the PhilGEPS

in accordance with Sec. 37.1.4 of the 2016 IRR of R.A. No. 9184.



LEGAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

❑Recently expired Mayor’s/Business permit shall

be accepted together with the official receipt as

proof that the bidder has applied for renewal

within the period prescribed by the concerned

LGU.

❑However, the renewed permit shall be

submitted as a post-qualification requirement

in accordance with Sec. 34.2 of the 2016 IRR of

R.A. No. 9184

MAYOR’S PERMIT



LEGAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

❑ 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 R.A. No.

9184.

❑ Submission of Provisionary Tax Clearance issued by

the BIR for bidding purposes is not acceptable form

of Tax Clearance. (GPPB Resolution No. 01-2014)

TAX CLEARANCE



TECHNICAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

STATEMENT OF ALL ONGOING GOVERNMENT AND

PRIVATE CONTRACTS

❑ Statement of the prospective bidder of all ongoing

government and private contracts, including

contracts awarded but not yet started, if any, whether

similar or not similar in nature and complexity to the

contract to be bid. (Sec. 23.1(a)(iv), IRR of R.A. No.

9184)

❑ The statement shall include all information required in

the Philippine Bidding Documents prescribed by

GPPB




SINGLE LARGEST COMPLETED CONTRACTS (SLCC)

❑ The SLCC completed should be similar to the contract to be bid, or

has the same major categories of work

❑ The SLCC’s value should be at least 50% of the ABC to be bid upon

adjustment to current prices using the PSA consumer price indices

❑ Contractors under Small A and Small B categories without similar

experience on the contract may participate if the cost of the contract

to be bid is not more than the Allowable Range of Contract Cost

(ARCC) of their registration




❑A valid PCAB License or Special PCAB

License for JV, and Registration for the type

and cost of the contract to be bid, should be

valid at the time of the deadline for the

submission and opening of bids. PCAB LICENSE



NON-ACCEPTABILITY OF TEMPORARY PCAB LICENSE

✔License issued by the Philippine

Contractors Accreditation Board

allowing an entity to engage in

business as a contractor

✔Turn-around time for its issuance is

twenty (20) calendar days

PCAB License

✔Refers to the document issued by

PCAB to a contractor who has filed for

renewal of PCAB License before the

30th day of June but have not yet been

processed due to high volume of

applicants

Temporary PCAB License ✋




NON-ACCEPTABILITY OF TEMPORARY PCAB LICENSE


Infrastructure Projects, either procured through competitive bidding

or alternative methods of procurement.

Bidders shall submit a valid PCAB License for the following procurement

projects:

Goods or Consulting Services with civil works component, either

procured through competitive bidding or alternative methods of

procurement.

Temporary PCAB License shall not be accepted as an eligibility or

documentary requirement in lieu of a valid PCAB license



FINANCIAL ELIGIBILITY REQUIREMENTS (CLASS “A”)

AUDITED FINANCIAL STATEMENT

Audited financial statements, showing, among

others, the bidder’s total and current assets and

liabilities, stamped “received” by the BIR or its

duly accredited and authorized institutions, for

the preceding calendar year which should not be

earlier than two (2) years from the date of bid

submission.




❑ The NFCC value should be at least equal to the ABC to be bid

NET FINANCIAL CONTRACTING CAPACITY (NFCC)

The constant NFCC’s K factor is set at 15,

regardless of contract duration – Financial Component

[(Current assets minus current liabilities) (K)] minus

the value of all outstanding or uncompleted portions

of the projects under ongoing contracts, including

awarded contracts yet to be started, coinciding with

the contract to be bid.

NFCC =




NET FINANCIAL CONTRACTING CAPACITY (NFCC)

❑ The values of the domestic bidder’s current assets and

current liabilities shall be based on the latest AFS submitted

to the BIR.

❑ For purposes of computing the foreign bidder’s NFCC, the

value of the current assets and current liabilities shall be

based on their AFS prepared in accordance with

international financial reporting standards.



ELIGIBILITY REQUIREMENTS (CLASS “B”)

REQUIREMENTS FOR JOINT VENTURES

� Legal Eligibility

Documents (or

PhilGEPS Certificates

of Registration under

Platinum membership

category)

To be Submitted by

All Partners

� Technical Eligibility

Documents

� Financial Eligibility

Documents

To be Submitted by

Any of the Partners

� Valid Joint Venture Agreement

Joint Submission



ELIGIBILITY REQUIREMENTS FOR FOREIGN BIDDERS

Equivalent

Class “A” Documents

Issued in the country of the Foreign Bidder

Must be in ENGLISH

If not, it must have a translation in ENGLISH

by any of the following:

❑ relevant foreign government agency;

❑ the foreign government agency

authorized to translate documents, or

❑ a registered translator in the foreign

bidder’s country.

Documents 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.



For Contracting Parties to

the Apostille Convention,

the documents shall be

authenticated through an

apostille by the

Competent Authority,

except for countries

identified by the Department

of Foreign Affairs (DFA) that

will still require legalization

(red ribbon) by the relevant Embassy or Consulate.

ELIGIBILITY REQUIREMENTS FOR FOREIGN BIDDERS

NEW PROVISION



TECHNICAL REQUIREMENTS

BID SECURITY

To guarantee that the

successful bidder shall,

within ten (10) CDs from

receipt of the notice of

award, enter into contract

with the PE and furnish

the performance security

required

Purpose

Form of Bid Security Amount

a) Cash or cashier’s/ manager’s check

2% of ABC b) Bank guarantee/draft or Irrevocable Letter of

Credit, issued by a universal or commercial bank

c) Surety bond callable upon demand, accompanied

by certification from Insurance Commission 5% of ABC

e) Bid Securing Declaration No percentage

required

❑Only 1 form of Bid Security is required to be submitted

❑ Bidders have the option to choose their preferred form of bid security

*For biddings conducted by LGUs, these may be issued by other banks

certified by the BSP as authorized to issue such financial instrument




BID SECURING DECLARATION


A document/undertaking signed

by the bidder committing to pay

the corresponding fine and be

automatically disqualified from

bidding of any procurement

contract of ant PE for a period of

time, upon receipt of the

Blacklisting Order (BO), in the

event it violated any of the

conditions stated therein

REVISED PROVISION

❑ Penalty of

disqualification for two

(2) years from bidding

for any procurement

contract with any PE,

upon receipt of the BO;

and

❑ Payment of fine to be

calculated in accordance

to the rules set

REVISED PENALTIES




PROJECT REQUIREMENTS

Must contain the following:

� Organizational chart for the contract to be bid

� List of contractor’s personnel (e.g., Project Manager, Project

Engineers, Materials Engineers, and Foremen), to be assigned to

the contract to be bid, with their complete qualification and

experience data; and

� List of contractor’s major equipment units, which are owned,

leased, and/or under purchase agreements, supported by proof

of ownership or certification of availability of equipment from the

equipment lessor/vendor for the duration of the project




REVISED

OMNIBUS

SWORN

STATEMENT

FORM (GPPB Resolution

No. 16-2020)



SIXTH EDITION OF THE PHILIPPINE BIDDING

DOCUMENTS


RECEIPT OF BIDS

The SCANNED Copies of the FIRST ENVELOPE with the

Required Forms shall be considered as compliant with the

requirements of bid submission,

✔ subject to the submission of the original copies of the

following during post-qualification:

1. Bid Security or Bid Securing Declaration

2. Omnibus Sworn Statement

Non-submission of these forms shall be a ground for post-

disqualification, pursuant to Section 30.1 of the 2016 revised

IRR of RA No. 9184




ALTERNATIVE DOCUMENTARY REQUIREMENTS

DURING A STATE OF CALAMITY OR RESTRICTIONS


subject to submission of Business or Mayor's permit after award of contract but before payment;

subject to compliance therewith after award of contract but before payment

Unnotarized Bid Securing Declaration

Expired Business or Mayor's permit with

Official Receipt of renewal application

Omnibus Sworn Statement

PEs shall accept alternate

documentary requirements

for procurement activities

during a State of Calamity,

or implementation of

community quarantine or

similar restrictions

declared, which existence

shall be determined and

validated by the BAC



CONTENTS OF 2ND ENVELOPE

Opening of 2nd

Envelope – Financial

Proposal

1. Financial Bid Form,

including bid prices

and bill of quantities,

as well as applicable

price schedules

2. Other documents

required in the

bidding documents



DETAILED EVALUATION OF BIDS

To determine the

Lowest Calculated

Bid (LCB) , by: ❑ Establishing

correct

calculated prices

of bids; and

❑ Ranking

calculated total

bid prices from

lowest to highest

Purpose

A non-discretionary

criterion shall be used,

which shall include

consideration of: ❑ Completeness of

bids; and

❑ Minor arithmetical

corrections

Results shall be

contained in the

Abstract of Bids

Method

Should be

completed

within 7 CD

from the

deadline for

receipt of

proposals

Timeline



DETAILED EVALUATION OF BIDS

Unless the Instructions to

Bidders (ITB) specifically

allows partial bids, those

not providing all required

items shall be considered

non-responsive

Placing no price is

considered as non-

responsive

Specifying a “0” or “-”

means it is offered for

free

Prohibition on communication w/ bidders from bid

evaluation until award of contract

NO CONTACT RULE



POST-QUALIFICATION

To determine whether

the LCB complies with

and is responsive to all

requirements and

conditions as specified

in the Bidding

Documents, to be

declared the Lowest

Calculated and

Responsive Bid (LCRB)

Purpose

A non-

discretionary pass

or fail criterion

shall be used to

“Verify, Validate

and Ascertain” all

statements and

documents

submitted by the

LCB

Method



POST-QUALIFICATION



SEC CERTIFICATE OF REGISTRATION FOR

FOREIGN BIDDERS

Within ten (10) CD from receipt by the winning bidder of the Notice of Award,

the following documents shall be submitted before the contract may be

awarded:

i. xxx

ii. xxx

iii. The SEC Certificate of Registration of the foreign

corporation/consulting firm and/or the authority or license from the

appropriate government agency or professional regulatory body of the

foreign professionals engaging in the practice of regulated professions

and allied professions, where applicable.

Section 37.1.4 (a)(iii) of the IRR of RA 9184

Amendment




AWARD OF CONTRACT

❑ The BAC shall recommend award of contract to

the Lowest Calculated and Responsive Bid

(LCRB) at submitted price or calculated price,

whichever is lower.

❑ The BAC shall notify all other bidders, in

writing, of its recommendation to HoPE of

award of contract to LCRB within 3 CD from

the issuance of the resolution recommending

award

Award of contract is subject to the

following conditions within 10 CD from

issuance of NOA:

� If JV, submission of JVA

� In the case of procurement by a

Philippine Foreign Office or Post,

PhilGEPS Registration Number

� If foreign-funded and stated in treaty,

international or executive agreement,

PCAB License

� Posting of Performance Security

� Signing of Contract upon compliance

with all documentary requirements

� If required, approvals by higher

authority



AWARD OF CONTRACT

POSTING OF PERFORMANCE SECURITY

To guarantee

performance of

obligation by the

LCRB in such form

and amount

specified in the

Bidding

Documents

Purpose

❑ Ground for

disqualification

❑ Next-ranked LCB

shall undertake post-

qualification

❑ Bid security shall be

forfeited without

prejudice to the

imposition of

sanctions

Effects of Failure to Post

Form of Performance Security Amount

a) Cash or

cashier’s/manager’s check

issued by Universal of

Commercial Bank* Not less than

10% of the

Contract Price b) Bank draft/guarantee or

Irrevocable LC issued by

Universal of Commercial

Bank*

c) Surety bond callable upon

demand certified by the

Insurance Commission as

authorized to issue such

security

Not less than

30% of the

Contract Price

*For biddings conducted by LGUs, these may be

issued by other banks certified by the BSP as

authorized to issue such financial instrument



ALTERNATIVE DOCUMENTARY REQUIREMENTS

DURING A STATE OF CALAMITY OR RESTRICTIONS

REVISED PERFORMANCE SECURING

DECLARATION FORM


Similar to the PSD used in Framework Agreement, such

declaration shall state, among others, that the winning bidder

that it will be automatically disqualified from bidding of any

procurement contract of any procuring entity for a period of

one (1) year for the first offense or two (2) years for the

second offense, upon receipt of the Blacklisting Order, in the

event it violates any of the conditions stated in the contract. � An unnotarized PSD may be accepted, subject to submission of a

notarized PSD before payment, unless the same is replaced with a

performance security in the prescribed form



AWARD OF CONTRACT

CONTRACT SIGNING

GOCC’s

CONCERNED

BOARD

APPROVING

HIGHER AUTHORITY

20 CD Maximum days from receipt to APPROVE

or DISAPPROVE the CONTRACT

30 CD Maximum days from receipt to APPROVE

or DISAPPROVE the CONTRACT



AWARD OF CONTRACT

ISSUANCE OF NOTICE TO PROCEED

TIMEFRAME: The PE shall issue the

Notice to Proceed (NTP) together with a copy

or copies of the approved contract to the

successful bidder within 7 CD from the date

of approval of the contract by the appropriate

government approving authority.

NOA within 3 CD from issuance, in:

NTP and the approved contract within 15 CD

from the issuance of the NTP, in: All notices called for by the terms of the contract

shall be effective only at the time of receipt

thereof by the successful bidder.

PhilGEPS PE’s Website Conspicuous Place

POSTING REQUIREMENT



85 85

ADDITIONAL TRANSPARENCY REQUIREMENTS

Posting of procurement

documents

• PhilGEPS

• Agency's Official Website

(Transparency Seal)

• Social Media Platforms

What to post?

• Advertisements of procurement

projects

• Post-award information

Post-award information shall also

be published

once in a newspaper of general

circulation

86 86

POSTING IN NEWSPAPERS

GPPB Resolution No. 04-2021, pursuant to Sec 4 of AO No. 34

For ABC of Php 50,000,000 and above

(Executive Department)

AWARD OF CONTRACT

POSTING OF WARRANTY SECURITY

To guarantee that the

contractor shall perform his

responsibilities and shall

answer for an liability

arising due to: ❑ improper construction

❑ use of inferior

quality/standard

❑ any violation of the contract

plans and specifications

Purpose

Type of Structural Defects

and Failures

Warranty

Period

Permanent

Structures(Types 4 and 5;

Ex. steel, iron, concrete)

15 years

Semi-Permanent structures

(Types 1,2 and 3; Ex. roads,

concrete river control,

drainage, irrigation lined

canals)

5 years

Other structures (Ex.

wooden bridges, spring

developments)

2 years



AWARD OF CONTRACT

POSTING OF WARRANTY SECURITY

Form of Warranty Security Amount

a) Cash or cashier’s/manager’s check

issued by Universal of Commercial

Bank*

Not less than 5% of

the Contract Price

b) Bank draft/guarantee or Irrevocable LC

issued by Universal of Commercial

Bank*

Not less than 10% of

the Contract Price

c) Surety bond callable upon demand

certified by the Insurance Commission

as authorized to issue such security

Not less than 30% of

the Contract Price

*For biddings conducted by LGUs, these may be issued by other banks certified by

the BSP as authorized to issue such financial instrument



AWARD OF CONTRACT



FAILURE OF BIDDING

Effects

1. Mandatory review shall be

conducted by BAC

2. Based on findings, BAC

shall:

• Revise terms, conditions,

specifications

• Adjust ABC, subject to

required approvals

3. Re-bidding

4. Re-advertisement

Declared by the BAC when:

No bids are received;

Bids were received but no

one was eligible;

All bids failed to post qualify; or

Refusal of the post-qualified

bidder to accept award

without justifiable cause

SECTION 35 This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution


CANCELLATION/TERMINATION OF

PROCUREMENT ACTIVITIES


Without prejudice to Section 35.1 of the 2016 revised IRR of RA No. 9184, the BAC,

upon consultation with the end-user unit, shall be allowed to cancel or terminate the

conduct of procurement activities for any justifiable reason, such as but not limited to:

the physical and economic conditions have

significantly changed so as to render the

project no longer economically, financially, or

technically feasible, as determined by the

end-user unit;

1

the project is no longer necessary as

determined by the end-user unit;

2

the source of funds for the project has

been withheld or reduced through no fault of the PE; or

3

brought about by the declaration of a State

of Calamity, or implementation of

community quarantine or similar

restrictions.

4



RESERVATION CLAUSE

Grounds

❑ Prima facie evidence of collusion

❑ BAC is found to have failed in following the

prescribed bidding procedures

❑ For justifiable reasons, the award of contract

will not redound to the benefit 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.

HoPE reserves the right to:

Reject any and all bids

Declare a failure of

bidding; or

Not award the contract



RECOMMENDED POSSIBLE PERIOD TO COMPLETE

THE PROCUREMENT ACTIVITY

26 CDs

.

141 or

156 CDs Excluding Approval of Higher Authority, if applicable

EARLIEST PERIOD MAXIMUM PERIOD



PERIOD TO COMPLETE PROCUREMENT PROCESS

In the case of Jacomille v. Abaya, et al., the

petitioner contends that the public respondents

failed to comply with the periods provided by law,

specifically the 3-month period from the opening

of the bids up to the award of the contract under

Section 38 of RA 9184. The Supreme Court held

that “[t]he different periods provided by RA 9184

within which certain stages of the procurement

process must be completed is not merely directory

but mandatory.”

Thus, it concluded that such irregularity rendered

the procurement process null and void.

PROCUREMENT PROCESS

From Opening of Bids to

Award of Contract shall

NOT EXCEED 3

MONTHS

G.R. No. 212381, 22 April 2015



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