BIDDING PROCEDURES FOR THE
PROCUREMENT
OF GOODS AND SERVICES
CAPACITY DEVELOPMENT DIVISION
Government Procurement Policy Board
Technical Support Office (GPPB-TSO)
1
GENERAL MODE OF PROCUREMENT
Procurement is done through Competitive Bidding. (Sec. 10 RA 9184;
NPM 67-2012)
Exception: Alternative Methods of Procurement.
2
COMPETITIVE BIDDING
WHAT IS COMPETITIVE BIDDING?
It is a method of procurement which is open to participation by any interested party
and which consists of the following processes: eligibility screening of prospective
bidders, evaluation of bids, post-qualification, and award of contract. (Section 5(e) of
RA 9184 and its IRR)
3
COMPETITIVE BIDDING
Garcia vs. Burgos (291 SCRA 546)
“By its nature and characteristics, a competitive public bidding
aims to protect
public interest by giving the public the best
possible advantages through open
competition”
COA vs. RTC-NCRJR (GR NO. 85285, 7/7/89)
“Purpose is to avoid/preclude suspicion of favoritism and anomalies in the execution
of public contracts.”
4
COMPETITIVE BIDDING
 Municipal Order requiring an accreditation process for Bidders as a condition
precedent for their participation in procurement activities of the local government
unit runs counter RA 9185 and its IRR would limit the participation of bidders only
to those accredited suppliers, to the exclusion and prejudice of other bidders in the
market, it in fact contravenes the very basic principles of competitive bidding.
(NPM 47-2013)
5
STANDARDIZED BIDDING PROCEDURE FOR GOODS AND SERVICES
Pre-Procurement
Conf.
Submission of
Bids
Bid Evaluation
& Ranking
Advertisement
Pre-Bid
Conference
Opening of
1st Env. - Eligibility
Docs & Technical
Proposal
Opening of 2nd
Envelope – Financial
Proposal
Post-qualification
Award of
Contract
6
I. PRE-PROCUREMENT CONFERENCE
Purpose: Determine readiness of procurement
Conducted prior to advertisement/posting of the Invitation to Bid
Mandatory for projects with ABC above PhP 2M
Attended by the following:
a)BAC
b)BAC Secretariat
c)TWG
d)Consultants
e)End-user unit/Other officials
7
REFERENCE TO BRAND NAMES
Section 18 of RA 9184 and its IRR
Applicable only to procurement of goods
Specifications should be based on relevant characteristics and performance requirements.
Prohibition includes reference to country of origin pursuant to Section 43.1.1 of the IRR
of RA 9184.
-PEs are precluded from requiring specific country of origin as part of the technical specifications for the
project.
-Specifications shall be based on the performance requirements and recognized industry standards and
not on the basis of country of origin.
(NPM 22-2013)
8
II. ADVERTISEMENT/POSTING OF THE INVITATION TO BID
Importance:
Signals the start of the bidding process. Procurement process should be made
within 3 months starting from posting and advertisement until awarding of contract.
(Sec. 38.1 IRR)
Signals the availability of the bidding documents to the prospective bidders. (if not
mentioned in the Invitation to Bid) (Sec. 17.3 IRR)
9
II. ADVERTISEMENT/POSTING OF THE INVITATION TO BID
 At least once in one (1) newspaper of general nationwide circulation, which has been regularly
published for at least two (2) years before advertisement date.
 Posted continuously for 7 calendar days –
–PhilGEPS
–website of the PE, if any.
–website of IFI, if applicable.
–At any conspicuous place in the premises of the PE.
 Not required for projects with ABC of 2M and below.
10
II. ADVERTISEMENT/POSTING OF THE INVITATION TO BID
Medium
Above 2M
2M and below
Newspaper of General Nationwide Circulation
PhilGEPS website
PE’s Website, if available
Conspicuous Place
Website prescribed by the foreign government/foreign or
international funding institution, in case of foreign funded
procurement
11
III. PRE-BID CONFERENCE
Forum where the PE’s representatives & the bidders discuss the different aspects of the
project
Mandatory – ABC 1M or more; Discretionary – ABC less than 1M
Held at least 12 cd before deadline for bid submission. May be held at least 30 cd
considering the following:
a)
b)
Method, nature, and complexity of contract
International participation is more advantageous
At
the option of procuring entity, only bidders who purchased bid documents are
allowed to attend or ask questions
12
III. PRE-BID CONFERENCE
 Section 22 affords bidders the opportunity to raise concerns or clarifications on
the requirements, terms, conditions, and specifications stipulated in the bidding
documents for the contract to be bid.
 Questions or clarifications pertaining to the matters that may be discussed during
the pre-bid conference must be raised at least ten (10) calendar days before the
deadline set for the submission and receipt of bids. (NPM 49-2013)
13
III. PRE-BID CONFERENCE
• Section 22.1 of the IRR of RA 9184 provides that at least one (1) pre-bid conference should be
conducted by the procuring entity for projects costing at least PhP1 Million, in order to afford
prospective bidders the opportunity to inquire on or clarify any of the requirements, terms,
conditions, and specifications stipulated in the Bidding Documents.
• Failure to conduct a pre-bid conference for the Project amounts to a violation of a mandatory
provision of law, which will render the procurement activity void under Article 5 of the Civil Code
of the Philippines. (NPM 48-2013)
14
CLARIFICATION OF BIDDING DOCUMENTS
 Supplemental/Bid Bulletins– issued by BAC to answer requests for clarification
(query submitted 10 c.d. before deadline) or interpretation, and upon BAC’s
initiative to clarify or modify any provision of Bidding Docs. (at least 7 c.d. before
deadline for bids).
 Posted in PhilGEPS and PE’s website
 Bidders who have submitted bids before issuance of Supplemental/Bid Bulletin
must be informed in writing and allowed to modify or withdraw their respective
bids
15
CLARIFICATION OF BIDDING DOCUMENTS
 §22.5.2 RA 9184 IRR allows PEs to issue Supplemental/Bid Bulletins upon their initiative for the
purpose of clarifying or modifying any provision in the Bidding Documents, including the IB.
 PE has the authority to revise or amend any statement in the Bidding Documents, including the IB,
specifically when such revision or amendment is made for the purpose of clarifying or modifying its
provisions.
 Supplemental/Bid Bulletins must be posted in the PhilGEPS and at the PE’s website, in order to
address aspects of competition and transparency. (NPM 46-2013)
16
ADDITIONAL REQUIREMENTS
 PE cannot compel prospective bidders or the winning bidder to submit or comply with
requirements not initially provided in the Bidding Documents or through any Supplemental/Bid
Bulletin issued by the PE for the project that must be posted at the PhilGEPS’ and the PE’s
website.
 If no Supplemental/Bid Bulletin is issued to reflect changes in the Bidding Documents, or even if
the same was issued but not posted at the PhilGEPS’ and PE’s websites, the original
provisions contained in the Bidding Documents remain and the prospective bidder, including the
winning bidder cannot be compelled to abide or comply with the changes made by the PE. (NPM
24-2013)
17
IV. SUBMISSION AND RECEIPT OF BIDS

Two-Envelope System

1st Envelope – Eligibility Requirements and Technical Component

2nd Envelope – Financial Component

Submitted to the BAC on the date, time, and place specified in the Invitation to Bid. Bids submitted after
the deadline should not be accepted.

Date of submission should not be later than the following period from the last day of posting of the
Invitation to Bid.
Category
Goods
Maximum Period (cd)
45
18
IV. SUBMISSION AND RECEIPT OF BIDS
 Bidders are no longer required to submit a written LOI together with
their application for eligibility as previously required in IRR Part A of RA
9184.
 Bidders only have to submit their bids not later than the deadline for the
submission and receipt of bids, which can be extended or rescheduled
together with the opening of bids as provided in Section 29 of the IRR
of RA 9184. (NPM 55-2013)
19
IV. SUBMISSION AND RECEIPT OF BIDS
 The practice of pre-qualification has been abandoned in RA 9184 and its IRR. the
results of a pre-qualification have no legal force and effect, bearing or weight, and
cannot preempt the findings of the BAC during the preliminary examination of
bids conducted during the opening of bids. Hence, a bidder may still be declared
ineligible during the opening of bids despite a finding of qualification during the
purported pre-qualification exercise. (NPM 54-2013)
20
IV. SUBMISSION AND RECEIPT OF BIDS
 Procuring entity cannot validly and legally refuse to accept a bid submitted
before the deadline for the submission indicated the Invitation to Bid or Request
for Quotation.
 This shall open a ground for the aggrieved bidder to file a request for
reconsideration and, subsequently, protest as provided in Section 55 of RA 9184
and its IRR, without prejudice to the institution of civil, administrative and/or
criminal actions against the erring officials under applicable laws and rules.
(NPM 67-2013)
21
V. OPENING AND EVALUATION OF 1ST ENVELOPE
CONTENTS:
1. Eligibility requirements
2. Bid Security
3. Technical specifications
4. Omnibus sworn statement
Non-inclusion in blacklist
Authenticity of documents
Verification authority
22
V. OPENING AND EVALUATION OF 1ST ENVELOPE
CONTENTS (continuation):
4. Omnibus Sworn Statement
Signatory’s authority
Disclosure of relations
Responsibilities of bidders
Labor laws and standards
Non-payment (directly or indirectly) any commission, amount,
fee, or any form of consideration in relation to any
procurement project or activity
23
V. OPENING AND EVALUATION OF 1ST ENVELOPE
 Section 30 requires that the preliminary examination of bids be conducted by
merely checking for the presence or absence of documentary requirements using
a non-discretionary “pass/fail” criterion.
 However, the BAC has the right to review the qualifications of a bidder during the
same stage if it has reasonable grounds to believe that a misrepresentation has
been made or there has been changes in the bidder’s capability to undertake
the project. (NPM 54-2013)
24
V. OPENING AND EVALUATION OF 1ST ENVELOPE
 BAC should open a reconsidered bid under the same circumstances as
it opened the bids that were not disqualified, i.e., upon a duly
scheduled opening of bid with proper notices to the concerned
entities. (NPM 69-2013)
25
ELIGIBILITY REQUIREMENTS
Class A Documents
1.DTI/SEC/CDA Registration
2.Mayor’s permit
3.Tax clearance per Executive Order 398, series of 2005,
as finally reviewed and approved by the BIR.
4.Statement of ongoing contracts.
5.Statement of SLCC
6.Audited financial statement
7.NFCC
26
ELIGIBILITY REQUIREMENTS
Class B Document
•JVA or notarized statement from the partners that they will enter into
joint venture if awarded the contract.
27
MAYOR’S PERMIT
 Mayor’s Permit allows an entity to legally perform the requirements and
obligations of the project and the resultant contract.
 It is therefore necessary for the BAC to determine whether the Mayor’s Permit
for construction business issued to the construction company likewise
authorizes it to engage in the business of supplying dump trucks. (NPM 36-
2013)
28
TAX CLEARANCE
Tax Clearance is now included as part of the Class “A” legal eligibility
documents to be submitted during the opening of bids. (GPPB Resolution
No.21-2013)
29
TAX CLEARANCE
 EO 398 specifically requires the submission of Tax Clearance issued by the BIR. It
refers to the clearance issued by the Collection Enforcement Division of BIR
attesting that the bidder has no outstanding Final Assessment Notice and/or
delinquent account.
 Hence, submission of tax clearance of the previous year and application for tax
clearance cannot be considered as compliance. (NPM 02-2013)
30
TAX CLEARANCE
 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 RA 9184.
 The Tax Clearance must be valid and existing at the time it is submitted to BAC and
must be submitted within three (3) calendar days from receipt of the notice from the
BAC that the bidder has the LCB. Failure to comply with the requirement for the
submission of a valid Tax Clearance shall be a ground for post-disqualification of the
bidder. (NPM 48-2013)
31
TAX CLEARANCE
Submission of Provisionary Tax Clearance is not considered as sufficient
compliance for bidding purposes. (GPPB Resolution No. 33-2013)
32
CREDIT LINE COMMITMENT
Credit Line Commitment shall no longer be accepted
as an alternative to the prospective bidder’s
computation of Net Financial Contracting Capacity
(NFCC). (Resolution 20-2013)
33
STATEMENT OF ON GOING AND COMPLETED
CONTRACTS
 The submission of a Statement of Ongoing Contracts should only be required if
the bidder opts to submit an NFCC computation. If the bidder opts to submit a CLC,
it need not submit said statement.
 The Statement of Completed Contract(s) should always be required for the
purpose of showing the bidder’s Single Largest Completed Contract that is similar to
the contract to be bid. (Resolution 29-2012)
34
ELIGIBILITY REQUIREMENTS FOR FOREIGN BIDDERS
In the case of foreign bidders, the foregoing eligibility requirements under Class “A”
Documents may be submitted:
Equivalent documents issued by country
Accompanied
by English translation certified by appropriate embassy or consulate
in the Philippines
35
ELIGIBILITY REQUIREMENTS FOR FOREIGN BIDDERS
Foreign bidders may substitute eligibility documentary requirements with the
appropriate equivalent documents in their country.
Only upon actual determination and confirmation of this equivalence through post
qualification by the BAC may it be categorically resolved that the foreign documents
submitted are acceptable substitutes of the required eligibility documents pursuant to
§23.2 of the IRR. (NPM 42-2013)
36
ELIGIBILITY REQUIREMENTS FOR FOREIGN BIDDERS
 TAX CLEARANCE FOR FOREIGN BIDDERS
A Delinquency Verification Certificate issued to Non-Resident Foreign Corporations
(NRFC)/Non-Resident Aliens Not Engaged in Trade or Business (NRANETB)
pursuant to BIR RR 3-2005, attesting to the fact that the taxpayer has no
outstanding Final Assessment Notice and/or delinquent account may be
submitted as a form of Tax Clearance required under Sec 34.2 of the IRR. (NPM
02-2013)
37
ELIGIBILITY REQUIREMENTS FOR GOVT. CORPORATE ENTITIES
Government corporate entities may be eligible to participate only if they
can establish that they:
1.are legally and financially autonomous,
2.operate under commercial law, and
3.are not attached agencies of the procuring entity.
38
ELIGIBILITY REQUIREMENTS FOR JOINT VENTURES
1. WITH AN EXISTING JOINT VENTURE: submission of a valid joint venture
agreement
2. WITHOUT AN EXISTING JOINT VENTURE: submission by each of the potential
joint venture members of a duly notarized statement stating that they will enter
into and abide by the provisions of the joint venture in case their bid is successful.
39
ELIGIBILITY REQUIREMENTS FOR JOINT VENTURES
SUBMISSION OF ELIGIBILITY REQUIREMENTS:
All co-venturers of the joint venture should submit legal eligibility documents.
Any of the co-venturers can submit technical and financial eligibility
requirements
40
LEGAL ELIGIBILITY CRITERIA
General rule: 60% Filipino
Foreign bidder allowed if:
–Stated in treaty or international or executive agreement
–National of a country offering reciprocity rights to Filipinos
–Goods not available from local suppliers
–To prevent situations that defeat competition or restrain trade
41
TECHNICAL ELIGIBILITY CRITERIA
 Previous contract
 Similar to the contract to be bid out (as defined by the Bidding Documents)
 Completed within a period as defined by the Bidding Documents
 25% of the ABC (expendable supplies)
 50% of the ABC (non-expendable supplies)
- Based on the value of the previous completed contract, as adjusted to current prices using the NSO
consumer price index.
 For foreign funded procurement, a different track record may be agreed upon
42
TECHNICAL ELIGIBILITY CRITERIA
GOODS – SINGLE LARGEST CONTRACT
General Rule
1. Expendable Supplies
• 25% of the ABC
2. Services and Non-expendable
supplies
• 50% of the ABC
Exceptions
Then require the ff.:
If, at the outset and after
a) At least 2 similar contracts
market research, applying the
aggregate amount at least
general rule will likely result to:
equivalent to required
percentage; and
1.Failure of bidding; or
b) Largest of the similar contracts
2.Monopoly
amounts to at least 50% of
required percentage
43
TECHNICAL ELIGIBILITY CRITERIA
GOODS – SINGLE LARGEST CONTRACT (Illustration)
Expendable Goods
Non-expendable Goods
ABC = P1,000,000
ABC = P1,000,000
GR: 25% of the ABC
GR: 50% of the ABC
THUS: Previous contract should be at least
P250,000
THUS: Previous contract should be at least
P500,000
EXCEPTION: At least 2 similar contracts aggregate amount at EXCEPTION: At least 2 similar contracts aggregate amount at least
least equivalent to required percentage; and Largest of the equivalent to required percentage; and Largest of the similar
similar contracts amounts to at least 50% of required contracts amounts to at least 50% of required percentage.
percentage.
THUS: 1st contract = P100,00
2nd contract = P200,00
THUS: 1st contract = P300,000
2nd contract = P400,00[
44
FINANCIAL ELIGIBILITY CRITERIA
• Audited Financial Statement (showing prospective bidder’s
total and current assets and liabilities. )
• NFCC at least equal to ABC.
45
NFCC COMPUTATION
Net Financial Contracting Capacity (NFCC) =
(current assets - current liabilities) (K) MINUS (outstanding, uncompleted portions
under ongoing contracts + contracts awarded but not yet started)
(K) = 10 (contract is 1 year or less)
15 (contract is more than 1 year to 2 years)
20 (contract is more than 2 years)
* The values of the bidder’s current assets and current
liabilities shall be based on the data submitted to the BIR,
through its Electronic Filing and Payment System (EFPS)
46
NFCC COMPUTATION
Participating bidder should be required to submit an NFCC that is at
least equal to all the lots to which it participated in, in order to establish
the bidder’s financial liquidity and absorptive capacity in carrying
out the contractual obligations required by the lots to which it
participated in. (NPM 76-2013)
47
BID SECURITY

Procuring entity shall indicate in the Bidding Documents at least 2 acceptable forms of
bid security, one of which should be the Bid Securing Declaration.

In general, bank issued securities must be issued by a universal or commercial bank
 However, in biddings conducted by 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
48
BID SECURITY
Amount
Form of Bid Security
Bid Security
(% = ABC)
a) Cash or cashier’s/manager’s check
b) Bank guarantee/draft or Irrevocable LC
c) Surety bond callable upon demand
d) Combination of the foregoing
e) Bid Securing Declaration
2%
5%
Proportionate to share of form with respect to the total amount of
security
No percentage required
49
BID SECURING DECLARATION
 Bid Securing Declaration
-
an additional form of bid security
-
A document/undertaking signed by the bidder committing to pay the
corresponding fine and be suspended for a period of time from being
qualified to participate in any government activity in the event of violation of any
of the conditions stated therein as required by the GPPB Guidelines. (GPPB
Resolution No. 03-2012, 27 January 2012)
50
BID SECURING DECLARATION
 Penalties
- Automatic blacklisting for 2 years in ALL government procurement activities,
and
- Payment of fine
• For multiple bidders: difference between the evaluated bid prices of
LCRB/HRB with the next LCRB/HRB.
In case bidder is the LCRB/HRB, the amount shall be based on the difference
between the evaluated bid price and ABC.
• For a single bidder: difference between the evaluated bid price and ABC.
51
BID VALIDITY PERIOD
Bids and bid securities (including bid securing declaration) shall be valid for a
reasonable period as determined by the HOPE as indicated in the Bid Docs.
Not to exceed 120 days
If the period is extended, PE shall request in writing all those who submitted bids
for such extension before the expiration date.
NOTE: Bidders have a right to refuse to grant such extension w/o forfeiting their bid
security.
52
DISCLOSURE OF RELATIONS
Relatives within the third civil degree of the following shall be disqualified:
 Head of the procuring entity
 Members of the BAC, Secretariat and TWG
 Head of the end-user unit or project management office
 Project consultants
53
CONFLICT OF INTEREST
 The firm that has been engaged to provide consulting services for the preparation or
implementation of a project, and each of its affiliates, will be disqualified from
subsequently providing goods, works, or services resulting from or directly related to
the firm’s consulting services for such preparation or implementation.
 There is conflict of interest when the entity that prepared the plans/drawings
likewise participates in the ensuing procurement activities for the Project. (NPM 10-
2013)
54
VI. OPENING AND EVALUATION OF 2ND ENVELOPE
CONTENTS:
1. Financial Bid Form (includes bid prices and bill of quantities, as well as
applicable price schedules)
2. In case of Goods, Certification from the DTI, SEC, or CDA, if claiming
preference as Domestic Bidder or Domestic Entity
3. Other documents required in the bidding documents
55
VII. DETAILED EVALUATION
OF BIDS
 Purpose is to determine the Lowest Calculated Bid (LCB), by:
1. Establishing correct calculated prices of bids; and
2. Ranking calculated total bid prices from lowest to highest
 A non-discretionary criterion shall be used, which shall include consideration of:
1. completeness of bids; and
2. minor arithmetical corrections
56
VII. DETAILED EVALUATION
OF BIDS
No Contact Rule - prohibition on communication w/ bidders from bid evaluation until award
of contract.
The “no contact” rule applies only to those whose bids are being evaluated by the BAC after
passing the preliminary examination.
No communication should be made by bidders until a decision to award a contract is made by
the BAC.
Bidders who waived their right to utilize the protest mechanism or those whose request for
reconsideration and/or protest were subsequently denied are not covered by the prohibition under
§32.1 of RA 9184 IRR. (NPM 07-2013)
57
VII. DETAILED EVALUATION
OF BIDS
 Bid Evaluation shall not be more than 7 cd.

-
In case of discrepancies, the ff. shall prevail:
words over figures
unit prices over total prices
actual sum of prices over total price
bill of quantities over detailed estimates
 Section 32.2.3(c) of the IRR states that where there is a discrepancy between the
stated total price and the actual sum of prices of component items, the latter
shall prevail. (NPM 51-2013)
58
VII. DETAILED EVALUATION
OF BIDS
 Unless the 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
59
DOMESTIC PREFERENCE

Applicable only for GOODS

Applies where the lowest bid has a foreign component (foreign bid/entity) and the
next lowest bid has a domestic component (domestic bidder/entity)

Requires procuring entity to give preference to domestic bidder PROVIDED that:
1.
2.
The lowest foreign bid is increased by 15%; and
The lowest domestic bidder matches the lowest bid of the foreign bidder
60
DOMESTIC PREFERENCE
SAMPLE COMPUTATION
Lowest Calculated Bid
Next Lowest Calculated Bid
Foreign Bidder
Domestic Bidder/Entity
Bid
2,653,360.00
% Preference
x
3,009,492.00
15%
398,004.00
+ 2,653,360.00
Bid as increased
Result
3,051,364.00
3,009,492.00
Award to Domestic Bidder/Entity at 2,653,360.00, or
Award to Foreign Bidder if Domestic Bidder/Entity refuses
61
VIII. POST-QUALIFICATION
 To determine whether bidder with LCB complies with and is responsive to all
requirements and conditions of eligibility and the bidding of the contract – to be
declared the Lowest Calculated and Responsive Bid (LCRB)
 A non-discretionary pass/fail criterion shall be used to “Verify, Validate and
Ascertain” all statements and documents (licenses, certificates, etc.)
 To be accomplished not more than 7 c.d. from determination of LCB. (Exceptional
cases not to exceed 30 c.d.)
62
VIII. POST-QUALIFICATION
 BAC will notify the Bidder with the Lowest Calculated Bid that it was determined
as such.
 Within 3 c.d. from receipt of Notice, submit the ff:
1. Latest Income and Business Tax Returns;
2. Certificate of PhilGEPS Registration; and,
3. Other appropriate Licenses and permits required by law and stated in the
Bidding Documents.
63
VIII. POST-QUALIFICATION
 BAC shall recommend award of contract to the LOWEST CALCULATED AND
RESPONSIVE BID (LCRB) at submitted price or calculated price, whichever is lower.
 In case of approval by HOPE, Notice of Award should be IMMEDIATELY issued by
HOPE to the LCRB. (HOPE has 7 days to decide w/n to issue NOA)
64
VIII. POST-QUALIFICATION
 The three (3) calendar day period under §34.2 of the IRR is mandatory and
should not be extended.
 In case PE accepts the post-qualification documentary requirements beyond the
reglementary period, it must show that there is a compelling, sufficient, valid,
reasonable, and justifiable cause for such extension, so that penal sanction or
liability will not set in. Applicable administrative and civil sanctions or liabilities
may also be imposed against the concerned officials. (NPM 27-2013)
65
VIII. POST-QUALIFICATION
 PE may request for the submission of additional documents from the bidder in
support of the information it has provided in the bidding documents.
 However, non-submission of the additional supporting documents requested
cannot be a ground for the bidder’s post-disqualification, as a bidder may be
post-disqualified only upon ascertainment, validation, and verification of its noncompliance with the legal, technical, and financial requirements of the project as
provided in the bidding documents. (NPM 25-2013)
66
VIII. POST-QUALIFICATION
 Should PE decides to extend the period, it must show and provide compelling,
sufficient, valid, reasonable, and justifiable cause. Such valid justification,
however, will only free officials from penal sanction or liability, but not from
applicable administrative and civil sanctions or liabilities under existing laws,
rules and regulations. (NPM 57-2013)
67
FAILURE OF BIDDING
GROUNDS:
1)No bids received
2)Bids received but no one was eligible
3)All bids failed to post qualify
4)Someone post qualified but refused w/o justifiable cause to accept the award.
68
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
69
IX. AWARD OF CONTRACT

Contract shall be awarded to the bidder with the Lowest Calculated and
Responsive Bid (LCRB) at its submitted price or total calculated bid price,
whichever is lower

Notice of Award (NOA) is issued by the HOPE

NGAs and LGUs – 7 cd
GOCCs and GFIs – 15 cd

70
IX. AWARD OF CONTRACT
NOA is subject to the following conditions:
◦If joint venture, submission of JVA
◦If foreign-funded and stated in treaty, international or executive agreement, PCAB License
◦Posting of Performance Security
◦Signing of Contract (within 10 cd)
◦If required, approvals by higher authority
PROCUREMENT PROCESS
From Opening of Bids to Award of Contract shall
NOT EXCEED 3 MONTHS
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PERFORMANCE SECURITY
Posted by winning bidder upon signing of contract to guarantee performance of
obligation, in such form and amount specified in the Bidding Documents.
EFFECTS OF FAILURE TO POST:
1.Ground for disqualification
2.Next-ranked LCRB shall undertake post-disqualification
3.Bid security shall be forfeited without prejudice to the imposition of sanctions
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PERFORMANCE SECURITY
 Submission by the winning bidder of a Performance Security in the form of a personal check after
the signing of the contract could be considered as a failure to post the Performance Security in the
required form under §39.2 of the IRR and in the required period for posting under § 37.1.4(b)
of the IRR.
 §4.1.5 of the Guidelines provides that the refusal or failure of a contractor to post the required
Performance Security within the prescribed period is one of the grounds for blacklisting. (NPM 35-
2013)
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PERFORMANCE SECURITY
Amount
Form of Performance Security
Performance Security
(% equal to the Contract Price)
a) Cash or cashier’s/manager’s check
b) Bank guarantee/draft or Irrevocable
LC
c) Surety bond callable upon demand
d) Combination of the foregoing
5% (Goods ) & 10% (Infra)
30%
Proportionate to share of form with respect to the total amount
of security
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RESERVATION CLAUSE
HOPE reserves the right to:
◦ Reject any and all bids;
◦ Declare a failure of bidding;
◦ Not award the contract.
GROUNDS:
1. Prima facie evidence of collusion;
2. BAC is found to have failed in following the prescribed bidding procedures;
3. 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.
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NOTICE TO PROCEED

Issued to the successful bidder together with the copy of the approved contract
within 3 cd from date of approval

Contract effectivity date should be provided in the NTP, which should not be
later than 7 cd from its issuance

BAC Secretariat should post a copy of the NTP and the approved contract in the
PhilGEPS or PE’s website within 15 cd from issuance of NTP
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CONTRACT IMPLEMENTATION GUIDELINES FOR
THE PROCUREMENT OF GOODS, SUPPLIES
AND MATERIALS
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AMENDMENT TO ORDER

Issued at any time by the procuring entity in cases of:
1.
2.
Emergency
Fortuitous event
REASONS FOR ISSUING:
1. Necessary adjustments within the general scope of the contract in any one or more of the following:
a) drawings, design or specifications (if specifically manufactured for Government)
b) method of shipment or packing; or
c) place of delivery.
2.
Additional items needed and necessary for the protection of the goods, which were not included in
the original contract.
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SUSPENSION OF WORK

PE may suspend the work wholly or partly by written order for a certain period of
time due to force majeure or fortuitous events.

When the suspension order is lifted, or if the period of the order expires, the
supplier or consultant shall resume work.
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LIQUIDATED DAMAGES

When bidder fails to perform obligations within specified schedule, inclusive of duly granted time
extensions, he shall be liable for damages and shall pay the PE liquidates damages.

Bidder shall pay an amount equal to 1/10 of 1% of the cost of the cost of delayed goods scheduled
for delivery for every day of delay until such goods are finally delivered and accepted by the
procuring entity.

PE need not prove it incurred actual damages.
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LIQUIDATED DAMAGES

Whichever is convenient to the procuring entity, amount shall be deducted from:
1.
any money due or which may become due to the supplier, or
2.
collected from any securities or warranties posted by the supplier,

If sum of liquidated damages reach 10% of the contract amount, PE shall
automatically rescind the contract.
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ADVANCE PAYMENT

Made only after prior approval of the President.

Single advance payment not to exceed 50% of the contract for the following
services:
◦ Hotel and restaurant services
◦ Use of conference/seminar and exhibit areas
◦ Lease of office space

Advance payment not to exceed 15% allowed to address contingencies arising
from natural or man-made calamities in areas where “state of calamity” has been
declared
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ADVANCE PAYMENT

For goods, 15% of the contract price shall be paid within 60 days from signing of
contract and upon submission of a claim and a bank guarantee. (Amended by
M.O. 15, series of 2011)

NOTE: Progress payments shall first be charged against the advance payment
until the latter is fully exhausted. (UNLESS otherwise approved by the President)
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THANK YOU!!
Contact us:
Unit 2506 Raffles Corporate Center
F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605
TeleFax: (632)900-6741 to 44
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