Negotiated Procurement Under Emergency Cases GPPB NPM No. 003-2020
Negotiated Procurement Under Emergency Cases GPPB NPM No. 003-2020
Negotiated Procurement Under Emergency Cases GPPB NPM No. 003-2020
23 March 2020
Dear Sir/Madam:
On 9 March 2020, the GPPB issued Resolution No. 03-20203 on the Adoption of
Efficient, Effective, and Expedient Procurement Procedures during a State of Public Health
Emergency. In particular, the GPPB further simplified the rules in this wise:
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Entitled the “Government Procurement Reform Act.”
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Item No. 1.3 of GPPB Circular No. 06-2019, defining a Procurement Project. It shall refer to a specific or identified
procurement covering goods, infrastructure project or consulting services. A Procurement Project shall be described, detailed,
and scheduled in the Project Procurement Management Plan prepared by the agency which shall be consolidated in the
Procuring Entity's Annual Procurement Plan (APP)
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Approved on 9 March 2020, and published in the Philippine Daily Inquirer on 12 March 2020.
__________________________________________________________________________________________________
Unit 2504 Raffles Corporate Center, F. Ortigas Jr. Road, Ortigas Center, Pasig City, Philippines 1605
(02) 7900-6741 to 44 www.gppb.gov.ph [email protected]
(2) To simplify the process, allow the End-user unit or any other appropriate
bureau, committee, support or procuring unit to recommend to the Head of
the Procuring Entity (HoPE) any revision of the Annual Procurement Plan
(APP) to cover the Procurement Project that will be resorting to Negotiated
Procurement (Emergency Cases) subject to the validation by the appropriate
office in the PE that there are funds in the budget to cover for the same.
Thus, the Bids and Awards Committee (BAC) need not be the one to
recommend the revision of the APP;
(3) Similarly, the HoPE may now authorize the End-user unit or any
other appropriate bureau, committee, support or procuring unit to
directly negotiate with a legally, technically, and financially capable
supplier, contractor, or consultant. Hence, the BAC need not be the
one to negotiate or procure.
(4) Allow the HoPE to delegate the awarding of contract to any official of
the PE, except to those where there exists conflict of interest such as the
BAC Chairperson, members or person authorized to negotiate the bidding;
and
This was followed by GPPB Resolution No. 05-2020,4 which allows the submission
of the recently expired Mayor’s or Business Permit and the Official Receipt as proof of
application and payment for the renewal of the permit and an unnotarized Omnibus
Sworn Statement (OSS) subject to submission of the Mayor’s Permit and notarized OSS
after award of contract.
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Approved on 20 March 2020.
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Under the rule of construction known as "ejusdem generis", where general words follow the enumeration of particular
classes of persons or things, the general words will be construed as applicable only to persons or things of the same
general nature or class as those enumerated. The rule is based on the obvious reason that if the legislature had intended
the general words to be used in their unrestricted sense they would have made no mention of the particular classes. (82
CJS 658-660.)
General words, (b) when time is of the essence arising from actual or man-made calamities
which standing or other causes where immediate action is necessary to prevent
alone might have a damage to or loss of life or property; or
wide and
comprehensive (c) to restore vital public services, infrastructure facilities and other public
meaning, when utilities. (Section 53.2 of the 2016 IRR of RA No. 9184)
joined with an
enumeration of The instances or situations where the foregoing conditions may be applied
articles, things,
include the provision of immediate response and initial recovery steps to
and entities will be
interpreted in their avoid loss of life, injury, disease and other negative effects on human,
narrower sense physical, mental and social well-being, together with damage to property,
and understood to destruction of assets, loss of services, social and economic disruption and
refer only to environmental degradation. (GPPB Resolution No. 03-2020)
articles, things and
entities fairly
similar in kind, (2) What types of Procurement Projects may Negotiated Procurement
class and nature to (Emergency Cases) be applied? And can it be used for lease of real
those set forth in property or venue?
the associated list
of enumeration.' Negotiated Procurement (Emergency Cases) covers Goods, Civil Works projects
(Sandack v.
and Consulting Services.
Tamme, C.A. N.M.,
182 F. 2d. 759.)
Yes, it includes the lease of real property or venue such as those for use as
quarantine centers, evacuation sites, medical relief and aid distribution locations,
warehousing facilities, or similar temporary disaster or emergency response
facility. (GPPB Resolution No. 03-2020)
(3) Is the HoPE required to issue a written confirmation on the existence and
veracity of the grounds used for Negotiated Procurement (Emergency
Cases) prior to the approval of contract?
(4) What are the requirements before the HoPE approves the APP covering the
Procurement Project subject to Negotiated Procurement (Emergency
Cases)?
(a) The HoPE shall confirm the existence and veracity of the grounds relied
upon in the adoption of Negotiated Procurement (Emergency Cases).
This means that the HoPE must be able to relate the projects to be
procured to the emergency situation or condition it is intending to
address, for e.g. provision of food packs, lease of venue or real property for
use as quarantine facilities, purchase of COVID-19 testing kits and the like.
The HoPE shall likewise consider the appropriate timing or the proximity
of time between the actual procurement activity to be conducted and the
emergency sought to be addressed, such that when the reason or cause
for the emergency has already been abated, adoption of Competitive Bidding
or other applicable Alternative Modes of Procurement should be considered;
and
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(b) The HoPE shall validate from the appropriate office that there are funds
in the budget to cover the Procurement Project subject to Negotiated
Procurement (Emergency Cases).
(b) the End-user unit or any other appropriate bureau, committee, support or
procuring unit authorized by the HoPE.
(b) Income Tax Returns (Annual Income Tax Return of the preceding
tax year) OR Business Tax Returns (Value Added Tax or Percentage
tax return covering the previous six months)6
(7) What if the local government unit has not issued the Mayor’s or Business
Permit, is the PE allowed to accept a substitute?
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Approved Budget for the Contract
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Sections 3.2 and 3.3 of Revenue Regulation No. 3-2005.
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Philippine Contractors Accreditation Board
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renewal of the permit will suffice, subject to submission of the Mayor’s
Permit after award of contract. (GPPB Resolution No. 05-2020)
(8) Can the PE accept an unnotarized OSS given the difficulty of securing the
services of a notary public under a State of Emergency or Calamity or
Enhanced Community Quarantine?
The documents shall be submitted at any time before the award of the
contract. Thus, it may be required during:
(10) Are bid, performance and warranty securities required for Negotiated
Procurement (Emergency Cases)?
(11) Can PEs procure from foreign bidders under Negotiated Procurement
(Emergency Cases) and if so, what are documents required from them?
Yes, provided that the PE determined that the foreign bidder is legally,
technically, and financially capable to undertake the procurement at
hand.
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A capable foreign bidder has (i) submitted the mandatory documentary
requirements i.e. Mayor’s Permit, OSS, and Business or Income tax Returns,
PCAB license for infrastructure projects; (ii) complied with the technical
specifications set by the PEs, including the required certification under existing
rules such as the Certificate of Product Registration issued by the Food and
Drug Administration for testing kits; and (iii) submitted the financial
requirements of the project such as NFCC, in case of infrastructure projects.
Note as well that for foreign bidders, the equivalent document in their
jurisdiction would suffice consistent with Section 23.2 of the 2016 IRR of RA
No. 9184.
(a) not to exceed fifteen percent (15%) of the contract amount for
procurement of Goods required to address contingencies arising
from natural or man-made calamities in areas where a “State of
Calamity” has been declared by the appropriate authorities;
(b) a single advance payment not to exceed fifty percent (50%) of the
contract amount for hotel and restaurant services, use of conference
or seminar and exhibit areas and lease of office space where down-
payment is a standard industry practice;
(c) a lump sum or at most two installments not to exceed fifteen percent
(15%) of the contract amount as mobilization cost for Infrastructure
Projects, subject to the submission of an irrevocable standby letter of
credit or bank guarantee or surety bond;
(d) not to exceed fifteen percent (15%) of the contract amount for cost of
mobilization for Consultancy Services, subject to the submission of
an irrevocable standby letter of credit; and
(e) Any amount in excess of the foregoing requires prior approval of the
President of the Philippines.
(1) The BAC or the End-user unit or any other appropriate bureau, committee,
support or procuring unit shall request for the approval of the APP from the HoPE
to cover the Procurement Project. This shall be accompanied by documents
identifying the projects needed to address the emergency i.e., Technical
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Specifications, Scope of Work or Terms of Reference and validating the
existence of funds in the budget to cover the same.
The APP may only be approved by the HoPE upon confirmation of the existence
and veracity of the ground(s) relied upon in resorting to Negotiated Procurement
(Emergency Cases) and the existence of funds for the purpose. Thus, by
approving the APP, the HoPE effectively confirms the existence of the grounds
for emergency procurement, thereby dispensing with the previous requirement for
a written confirmation from the HoPE prior to the approval of contract.
(2) The BAC or the End-user unit or any other appropriate bureau, committee,
support or procuring unit, authorized by the HoPE shall then directly negotiate
with a legally, technically, and financially capable supplier, contractor, or
consultant.
(3) Upon recommendation of the BAC or End-user unit or any other appropriate
bureau, committee, support or procuring unit duly authorized by the HoPE, the
contract shall be immediately awarded to the legally, technically, and financially
capable supplier, manufacturer, distributor, contractor, and consultant, contractor,
or consultant.
This includes a foreign bidder determined to satisfy any of the legal, technical and
financial requirements of the PE.
Note that the HoPE may delegate the authority to award the contract to any
official of the PE, except to those where there exists conflict of interest such as
the BAC Chairperson and members pursuant to Section 11.2.5 of the 2016
revised IRR of RA No. 9184 and other associated issuances or the person
authorized to negotiate the bidding.
(4) Except for contracts with ABC of Fifty Thousand Pesos (PhP50,000.00) and
below, the BAC, through the Secretariat shall post for information purposes the
Notice of Award, contract or purchase order, including the Notice to Proceed, if
necessary, in (i) the PhilGEPS website; (ii) the website of the PE or its electronic
procurement service provider, if any; and (iii) any conspicuous place in the
premises of the PE.