Salient Provisions of RA 9184

RULE XVI – ALTERNATIVE METHODS OF PROCUREMENT
Section 48. Alternative Methods
48.2 In accordance with Section 10 of this IRR, as a general rule, the Procuring Entities shall
adopt public bidding as the general mode of procurement and shall see to it that the
procurement program allows sufficient lead time for such public bidding. Alternative
methods shall be resorted to only in the highly exceptional cases provided for in this
Rule.
48.3 The method of procurement to be used shall be as indicated in the approved APP. If
the original mode of procurement recommended in the APP was public bidding but
cannot be ultimately pursued, the BAC, through a resolution, shall justify and
recommend the change in the mode of procurement to be approved by the Head of the
procuring entity.(n)
Section 49. Limited Source Bidding Limited Source Bidding, otherwise known as selective
bidding, is a method of procurement of goods and consulting services that involves direct
invitation to bid by the procuring entity from the list of pre-selected suppliers or consultants 1
with known experience and proven capability on the requirements of the particular contract.
Conditions:
 Procurement of highly specialized types of goods

 Procurement of major plant components
Section 50. Direct Contracting Direct Contracting or single source procurement is a method
of procurement of goods that does not require elaborate Bidding Documents. The supplier is
simply asked to submit a price quotation or a pro-forma invoice together with the conditions of
sale.
Conditions:
 Procurement of goods of proprietary nature which can be obtained only from the
proprietary source
 When the procurement of critical plant components from a specific supplier is a
condition precedent to hold a contractor to guarantee its project performance
 Those sold by an exclusive dealer or manufacturer which does not have sub-dealers
1
.
Section 51. Repeat Order Repeat Order, when provided for in the APP, is a method of
procurement of goods from the previous winning bidder, whenever there is a need to replenish
goods procured under a contract previously awarded through Competitive Bidding.
Conditions:
 Unit prices of the repeat order must be the same as or lower than those in the
original contract
 The repeat order will not result in splitting of contracts,
 Except in cases duly approved by the GPPB, the repeat order shall be availed of
only within six (6) months from the contract effectivity date
 The repeat order shall not exceed twenty-five percent (25%) of the quantity of
each item in the original contract.
Section 52. Shopping Shopping2 is a method of procurement of goods whereby the

procuring entity simply requests for the submission of price quotations for readily available off-
the-shelf goods or ordinary/regular equipment to be procured directly from suppliers of known
qualifications.
Conditions:
a) When there is an unforeseen contingency requiring immediate purchase:

Provided, however, That the amount shall not exceed the thresholds prescribed in
Annex “H” of this IRR.
b) Procurement of ordinary or regular office supplies and equipment not available in
the Procurement Service involving an amount not exceeding the thresholds
prescribed in Annex “H” of this IRR.(a)
(The phrase “ordinary or regular office supplies” shall be understood to include

those supplies, commodities, or materials which, depending on the procuring entity’s
mandate and nature of operations, are necessary in the transaction of its official
businesses, and consumed in the day-to-day operations of said procuring entity.
However, office supplies shall not include services such as repair and maintenance of
equipment and furniture, as well as trucking, hauling, janitorial, security, and related or
analogous services.)
Section 53. Negotiated Procurement Negotiated Procurement is a method of procurement

of goods, infrastructure projects and consulting services, whereby the procuring entity directly
negotiates a contract with a technically, legally and financially capable supplier, contractor or
consultant in any of the following cases:
 Two Failed Biddings

 Emergency Cases.
 Take-Over of Contracts
2
Refer to Appendix 18 for the Guidelines on Shopping and Small Value Procurement.
 Adjacent or Contiguous
 Agency-to-Agency
 Procurement Agent
 Highly Technical Consultants
 Defense Cooperation Agreement
Section 53.9 Small Value Procurement.3 Where the procurement does not fall under
Shopping in Section 52 of this IRR and the amount involved does not exceed the thresholds
prescribed in Annex “H” of this IRR.(a
SALIENT PROVISIONS:
For alternative methods of procurement, advertisement and posting as

prescribed in Section of this IRR may be dispensed with: Provided, however,
That the BAC, through its Secretariat, shall post the invitation or request for
submission of price quotations for Shopping under Sections 52.1 (b) and
Negotiated Procurement under Sections 53.1 (two-failed biddings) and 53.9
(small value procurement); and 53.11 (NGO Participation) 4 of this IRR in the
PhilGEPS website, the website of the procuring entity concerned, if available, and
at any conspicuous place reserved for this purpose in the premises of the
procuring entity for a period of seven (7) calendar days.( (Section 54.2, RIRR of RA 9184)
In all instances of alternative methods of procurement, the BAC, through the
Secretariat, shall post, for information purposes, the notice of award in the
PhilGEPS website, the website of the procuring entity concerned, if available, and
at any conspicuous place reserved for this purpose in the premises of the
procuring entity (Section 54.3, RIRR of RA 9184)
Performance and warranty securities, as prescribed in Sections 39 and 62 of this

IRR, shall be submitted for contracts acquired through the alternative methods
of procurement, except for Shopping under Section 52 and Negotiated
Procurement under Sections 53.2 (emergency cases), 53.9 (small value
procurement), 53.10 (lease of real property), and 53.13 (UN agencies). (n) (Section 54.5,
RIRR of RA 9184)
21.2 Advertising and Posting of the Invitation to Bid/Request for Expression of Interest
21.2.1 Except as otherwise provided in Sections 21.2.2 and Error: Reference source not
found of this IRR and for the procurement of common-use goods and supplies, the
Invitation to Bid/Request for Expression of Interest shall be:
a) Advertised at least once in one (1) newspaper of general nationwide

circulation which has been regularly published for at least two (2) years
before the date of issue of the advertisement;
b) Posted continuously in the PhilGEPS website, the website of the procuring

entity concerned, if available, and the website prescribed by the foreign
3
Refer to Appendix 18 for the Guidelines on Shopping and Small Value Procurement.
4
As amended by GPPB Resolution 03-2011 dated 28 January 2011.
government/foreign or international financing institution, if applicable, for
seven (7) calendar days starting on date of advertisement; and
c) Posted at any conspicuous place reserved for this purpose in the premises of
the procuring entity concerned for seven (7) calendar days, if applicable, as
certified by the head of the BAC Secretariat of the procuring entity concerned.
(a)
21.2.2 Advertisement of the Invitation to Bid/Request for Expression of Interest in a

newspaper of general nationwide circulation provided in Section 21.2.1(a shall not
be required for contracts to be bid with an approved budget of Two Million Pesos
(P2,000,000.00) and below for the procurement of goods, Five Million Pesos
(P5,000,000.00) and below for the procurement of infrastructure projects, and One
Million Pesos (P1,000,000.00) and below or those whose duration is four (4)
months or less for the procurement of consulting services.(a)

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RULE XVI – ALTERNATIVE METHODS OF PROCUREMENT

Section 48. Alternative Methods

 Procurement of highly specialized types of goods

Section 52. Shopping Shopping2 is a method of procurement of goods whereby the

a) When there is an unforeseen contingency requiring immediate purchase:

(The phrase “ordinary or regular office supplies” shall be understood to include

Section 53. Negotiated Procurement Negotiated Procurement is a method of procurement

 Two Failed Biddings

For alternative methods of procurement, advertisement and posting as

Performance and warranty securities, as prescribed in Sections 39 and 62 of this

a) Advertised at least once in one (1) newspaper of general nationwide

b) Posted continuously in the PhilGEPS website, the website of the procuring

21.2.2 Advertisement of the Invitation to Bid/Request for Expression of Interest in a

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