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?
GPPB On Line Forum http://gppb.topicsolutions.net/