CAPACITY DEVELOPMENT DIVISION
GOVERNMENT PROCUREMENT POLICY BOARD
TECHNICAL SUPPORT OFFICE (GPPB-TSO)
1
PROCUREMENT STANDARD
GENERAL RULE : Sec. 10
All procurement shall be done through competitive
bidding, except as provided in Rule XVI of the IRR.
EXCEPTION
Alternative methods shall be resorted only:
1.
2.
3.
4.
5.
In highly exceptional case
To promote economy and efficiency
Justified by the conditions specified in IRR
Prior approval of the HOPE
GPPB approval as required under EO 423, S. 2005
(as amended)
6. Most advantageous price for the Government
2
ALTERNATIVE METHODS
1. Limited Source Bidding
2. Direct Contracting
3. Repeat Order
4. Shopping
5. Negotiated Procurement
3
LIMITED SOURCE BIDDING
(Sec. 49)
APPLICABILITY:
Goods
Consulting services
CONDITIONS:
Highly specialized types where only a few bidders
are known to be available
Major 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 BIDDING
PRE-SELECTION PROCEDURES PER GPM
GPPB Resolution 06-2012
PE through BAC
identifies LSB as
applicable mode
Acquires/Issues a Preselected List
HOPE transmits list to
the GPPB
PE posts procurement
opportunity and
conducts LSB
GPPB-TSO
acknowledges receipt
and posts the list in the
website (ministerial)
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LIMITED SOURCE BIDDING
PRE-SELECTION PROCEDURES
GPPB Resolution 06-2012
Relevant
Government
Authority?
Y
Request for a
List
N
PE represents
itself as the
RGA (selfgenerated list
Issues a List?
Y
Limited Source
Bidding
N
Competitive
Bidding
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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
DIRECT CONTRACTING
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
9
DIRECT CONTRACTING
 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)
10
REPEAT ORDER
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 contracts
3. 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
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REPEAT ORDER
 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)
12
SHOPPING
APPLICABILITY [52.1(A) AND (B)]:
 Goods
CONDITIONS [SHOPPING UNDER §52.1(A)]:
1. There is an unforeseen contingency requiring immediate
purchase
2. Amount does not exceed the threshold
CONDITIONS [SHOPPING UNDER §52.1(B)]:
1. Procurement of ordinary or regular office supplies and
equipment not available in PS-DBM
2. Amount does not exceed the threshold
13
THRESHOLD FOR UNFORESEEN
CONTINGENCIES [S. 52.1(a)]
 NGAs, GOCCs, GFIs, SUCs – PhP100,000
 LGUs –
Classification
Maximum 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
In the case of Barangays, the maximum amount is PhP50,000
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NEGOTIATED PROCUREMENT
SMALL VALUE PROCUREMENT
APPLICABILITY
 All types of Procurement
CONDITIONS:
1. Procurement does not fall under Shopping
[§52]
2. Amount does not exceed the threshold
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SHOPPING [S 52.1(b)] AND
SMALL VALUE PROCUREMENT
 NGAs, GOCCs, GFIs, SUCs – PhP500,000
 LGUs –
Classification
Maximum 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
In the case of Barangays, the maximum amount is PhP50,000
16
SHOPPING and SMALL VALUE
PROCUREMENT




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
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SHOPPING and SMALL VALUE
PROCUREMENT COMMITTEE (SSVPC)
Attach copy of DILG Department Order
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SHOPPING and SMALL VALUE
PROCUREMENT
PROCEDURAL GUIDELINES:
Prepare RFQ
Extend deadline if
no quotation is
received
Send RFQ to at
least 3 suppliers
[may be 1 in case
of 52.1(a)]
Prepare Abstract
of Quotations
Award to
LCB/HRB that
complies with
specs and ABC
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NEGOTIATED PROCUREMENT
TWO FAILED BIDDINGS
APPLICABILITY
 All types of Procurement
CONDITIONS:
1. Two failed biddings
2. Mandatory review of the following:
 Minimum technical specifications
 ABC, which may be adjusted up to 20% from
last bidding
20
NEGOTIATED PROCUREMENT
TWO FAILED BIDDINGS


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
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NEGOTIATED PROCUREMENT
TWO FAILED BIDDINGS



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
NEGOTIATED PROCUREMENT
TWO FAILED BIDDINGS
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)
Awarding of
contract
23
NEGOTIATED PROCUREMENT
TWO FAILED BIDDINGS
 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
NEGOTIATED PROCUREMENT
TWO FAILED BIDDINGS
 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)
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NEGOTIATED PROCUREMENT
EMERGENCY CASES
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
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NEGOTIATED PROCUREMENT
TAKE-OVER OF CONTRACTS
APPLICABILITY:
 All types of Procurement
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
27
NEGOTIATED PROCUREMENT
TAKE-OVER OF CONTRACTS


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
28
NEGOTIATED PROCUREMENT
ADJACENT OR CONTIGUOUS
APPLICABILITY:
 Infrastructure
 Consulting Services
CONDITIONS:
1. Subject contract is adjacent or contiguous to an
on-going infra or consulting
2. Original contract is a result of competitive bidding
3. Subject contract has similar or related scopes of
work
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NEGOTIATED PROCUREMENT
ADJACENT OR CONTIGUOUS
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 slippage
8. Negotiations commenced before expiry of original
contract
30
NEGOTIATED PROCUREMENT
AGENCY TO AGENCY
APPLICABILITY:
 All types of Procurement
CONDITIONS:
1. Cost-benefit analysis indicating A-to-A is more efficient and
economical
2. 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 project
4. 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
NEGOTIATED PROCUREMENT
AGENCY TO AGENCY
 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)
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NEGOTIATED PROCUREMENT
AGENCY TO AGENCY
 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 PROCUREMENT
PROCUREMENT AGENT
APPLICABILITY:
 All types of Procurement
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 PROCUREMENT
PROCUREMENT 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)
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NEGOTIATED PROCUREMENT
HIGHLY TECHNICAL PROCUREMENT
APPLICABILITY:
 Consulting Services
CONDITIONS:
1.
Individual consultant
2.
Work involves:
 Highly technical or proprietary
 Primarily confidential or policy determining, where trust
and confidence are the primary consideration
3.
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 PROCUREMENT
LEASE 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 lease
3. 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
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NEGOTIATED PROCUREMENT
NGO PARTICIPATION
APPLICABILITY:
 All types of Procurement
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 PROCUREMENT
COMMUNITY 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 objectives
2. PE to propose procedures, specifications, and contract
packaging for GPPB approval
39
NEGOTIATED PROCUREMENT
UN AGENCIES
APPLICABILITY:
 All types of Procurement
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]
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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
7. Procurement Agent
8. Highly Technical Consultants
9. Lease of Real Property
10. NGO Participation
11. Community Participation
12. UN Agencies
Goods
Infra
Consulting


















45
THANK YOU!!
Contact us at:
Unit 2506 Raffles Corporate Center
F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605
TeleFax: (632)900-6741 to 44
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