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PUBLIC PROCUREMENT

SPECIALIST COURSE
(INTERMEDIATE LEVEL)
S U M M A RY O F TO P I C S

SESSION 1 Procurement of Consulting Services


SESSION 2 Contract Management and Administration of
Consulting Services
SESSION 3 Procurement of Infrastructure Projects
SESSION 4 Public Expenditure Management
SESSION 5 Contract Management and Administration of
Infrastructure Projects
SESSION 6 Public Procurement Audit
SESSION 7 Green Public Procurement
MODULE CONTENT

I Alternative Methods of Procurement for Infrastructure


Projects
II Procurement of Infrastructure Projects by Administration
III Philippine Bidding Documents for Infrastructure Projects
IV Essential Contents of the Philippine Bidding Documents
ALTERNATIVE METHODS OF
PROCUREMENT FOR INFRASTRUCTURE
PROJECTS
MR. RONNIE L. GUTIERREZ
GPP Recognized Trainer
Module Learning Objective

By the end of the Session, the participants will be able to describe:

The conditions and procedures for each


alternative method of procurement for
infrastructure projects.
PROCUREMENT STANDARD

Procuring Entities (PEs) shall adopt


Public Bidding as the general mode of procurement

Alternative Methods shall be resorted ONLY:

Justified by conditions
In highly To promote economy specified in the
exceptional cases and efficiency IRR of RA No. 9184
PROCUREMENT STANDARD

No procurement shall be undertaken unless it is in accordance with the


approved Annual Procurement Plan (APP) of the PE

The method of procurement to be used shall


be as indicated in the approved APP

Mode of
Procurement
SCOPE AND COVERAGE
The guidelines on the alternative methods of
procurement shall apply to all types of PEs

Excluded from this guidelines are the following:


🔨 Undertaken by Armed Forces of the Philippines Corps of Engineers
Infrastructure
for purposes of Emergency Cases (Sec. 53.2) or Agency-to-Agency
Projects (Sec. 53.5)

GPPB-Resolution No. 09-2005

Selected Limited Source Bidding (Sec. 49); Defense Cooperation Agreement (Sec.
alternative 53.8); NGO Participation (Sec. 53.11); Community Participation (Sec.
modalities 53.12); and UN Agencies (Sec. 53.13)
GENERAL GUIDELINES

Executive
PEs may resort to
Order No. 34
(17 July 2017)
alternative methods of procurement for:

Government Contracts Government Contracts


involving an amount of involving an amount of
PhP500 Million and above less than PhP500 Million

With GPPB approval Without GPPB approval

The Head of the Procuring Entity (HoPE) shall


issue a certification under oath that the contract
falls within the exception of public bidding
ALTERNATIVE METHODS OF PROCUREMENT

Applicability to
Alternative Method of
Infrastructure
Procurement
Projects
Limited Source Bidding X
Direct Contracting X
Repeat Order X
Shopping X
Negotiated Procurement ✓
ALTERNATIVE METHODS OF PROCUREMENT
Modality of Negotiated Procurement
Applicable to Infrastructure Projects Not Applicable
Two Failed Biddings Highly Technical Consultant
Emergency Cases Defense Cooperation
Take-Over of Contracts Agreement
Adjacent or Contiguous Lease of Real Property and
Agency-to-Agency Venue
Scientific, Scholarly or Artistic Work…
Small Value Procurement
NGO Participation
Community Participation
UN Agencies, IOs or IFIs
[Sec 48, Revised IRR of RA 9184]
NEGOTIATED PROCUREMENT

What is Negotiated Procurement?

A method of procurement, whereby the procuring entity


directly negotiates a contract with a technically, legally
and financially capable contractor in any of the cases
specified in the IRR.

[Sec 53 IRR of RA 9184]


NEGOTIATED PROCUREMENT:
TWO (2) FAILED BIDDINGS

[Section 53.1 of the 2016 Revised IRR of RA 9184]


NEGOTIATED PROCUREMENT
Applicability

Two Failed Biddings


Goods Infrastructure Consulting
Projects Services

Background Conditions

No bids were received


Undertaken when All prospective bidders are ineligible
there has been
failure of All bids failed to comply with all of the bid
requirements, post-qualification, or there is
competitive
no successful negotiation; or
bidding or limited
source bidding for The Single/LCRB/HRCB refuses, without
the second time
✋ justifiable cause, to accept the award or no
award was made
NEGOTIATED PROCUREMENT
Exception

Failure of Bidding as Declared by the HoPE


Two Failed Biddings
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.
Procedural Guidelines

Declaration of 2 Failed Mandatory Preparation of


Competitive Review RFQ/Bid Docs
Bidding/LSB

Invite at least (3) Awarding of


suppliers/contractors/ Best Offer
Contract
consultants
PROCEDURES

Revision of Requirements, if necessary

Posting and Sending of Invitation

Negotiations

Submission of Best Offer

Award of Contract
PROCEDURES

1. The BAC revises and agrees on the technical, legal, and


financial eligibility requirements, and technical
specifications, and if necessary, adjust the ABC, subject to the
required approvals.

• The ABC cannot be increased by more than twenty percent (20%) of


the ABC for the last failed bidding.

[Annex “H”, V, D, 1(b) of the 2016 Revised IRR of RA 9184]


PROCEDURES

2. The BAC, through the Secretariat, posts for information purposes the
procurement opportunity (Request for Submission of Price
Quotations/Invitation to Bid), continuously for a period of three (3)
calendar days from the date of posting, in:
a. The PhilGEPS website;
b. The website of the Procuring Entity, if any; and
c. Any conspicuous place in the premises of the Procuring Entity.

[Annex “H”, V, D, 1(b) of the 2016 Revised IRR of RA 9184]


PROCEDURES

3. The BAC invites at least 3 contractors for negotiations to ensure


effective competition.
• Those who responded through any of the required postings shall be allowed
to participate.
• Even if only 1 bidder responds, the BAC shall proceed with the negotiation.
• Communication on an equal basis to all contractors, engaging in the
negotiations.

[Annex “H”, V, D, 1(b) of the 2016 Revised IRR of RA 9184]


PROCEDURES

4. Following completion of the negotiations, the BAC requests all


contractors remaining in the proceedings to submit, on a
specified date, a best offer with respect to all aspects of their
proposals.

[Annex “H”, V, D, 1(b) of the 2016 Revised IRR of RA 9184]


PROCEDURES

5. The BAC shall recommend award of contact to the HoPE in favor


of the contractor having the Single or Lowest Calculated and
Responsive Quotation, which should meet the procuring entity’s
minimum technical requirements and should not exceed the
ABC

[Annex “H” (V)(D)(1), IRR of RA 9184]


Is it mandatory to resort to Negotiated
Procurement modality of Two-Failed Biddings
after two failures of Competitive Bidding?

• Resort to two-failed biddings modality is not mandatory, as the


primary mode of procurement under Section 10 of the procurement
law and associated rules is Competitive Bidding.

• It is up to the procuring entity to resolve, in the interest of efficiency


and economy, whether is it still best to resort to Competitive Bidding
under Section 10 or Negotiated Procurement under Section 53.1 of
the IRR of RA 9184 after the 2 failures of bidding.

[Sec 54.5 of IRR of RA 9184]


What are the eligibility requirements to be
submitted when resorting to Negotiated
Procurement (Two-Failed Bidding)?

• Under the 2016 Revised IRR of RA 9184, PEs, in the interest of promoting
economy and efficiency, are now given the discretion to determine which
requirements must be submitted by bidders when resorting to Negotiated
Procurement (Two-Failed Biddings). This gives PEs the authority to choose the
eligibility documents necessary for the project.

• However, Certificate of Registration under Platinum Registration is required.

[Sec 54.5 of IRR of RA 9184]


NEGOTIATED PROCUREMENT:
EMERGENCY CASE

[Section 53.1 of the 2016 Revised IRR of RA 9184]


NEGOTIATED PROCUREMENT
Applicability

Emergency Cases
Goods Infrastructure Consulting
Projects Services

Conditions

In case of imminent danger to life or property during a state of calamity;

When time is of the essence arising from natural/man-made calamities;

Other causes where immediate action is necessary:


• To prevent damage to or loss of life or property
• Restore vital public services, infrastructure facilities and other public utilities
NEGOTIATED PROCUREMENT
Applicability

Emergency Cases Goods Infrastructure Consulting


Projects Services

HoPE shall confirm in writing the existence and veracity of the ground/s relied upon before
approving the contract.

PE should consider appropriate timing or the proximity of time between the actual procurement
activity to be conducted and the emergency sought to be addressed.

When the reason or cause for the emergency has already been abated, adoption of competitive
bidding shall be considered.

When the ground is based on imminent danger to life during a state of calamity, there must be a
declaration by a competent authority of a state of calamity before any procurement activity may be
undertaken.
NEGOTIATED PROCUREMENT

Applicability

Emergency Cases
Goods Infrastructure Consulting
Projects Services

Procedural Guidelines

Direct negotiation with Award of


Purchase Request supplier, contractor,
from End-User Contract
consultant
PROCEDURES

1. The End-User unit or the duly authorized official or personnel


shall submit a request to the BAC or the HOPE, as the case
may be, accompanied by appropriate supporting documents
identifying the emergency sought to be addressed, and the
necessary works that have to be procured to address the
emergency.

[Annex “H” (V)(D)(2)(b), IRR of RA 9184]


PROCEDURES

2. Upon preparation of the appropriate procurement documents, the


BAC may directly negotiate with a contractor with technical, legal
and financial capability to deliver the goods to address the
emergency.

3. Upon confirmation and ascertainment of such capability to address


the emergency, the HOPE, upon recommendation of the BAC, shall
immediately award the project to the contractor.

[Annex “H” (V)(D)(2)(b), IRR of RA 9184]


May a Procuring Entity adopt emergency
procurement timelines as it may deem fit in
view of the urgency of the situation?

RA 9184 and its 2016 Revised IRR indicate no prescribed


timelines for the use of Negotiated Procurement through
Emergency Cases modality. Nonetheless, we wish to stress
that the decision to resort to this alternative modality must
be attended by highly exceptional circumstances, whenever
justified by conditions provided under the law, taking into
consideration the promotion of economy and efficiency in
public procurement.
CASES

Nava v. Palattao
G.R. No. 16021, August 28, 2006

National Center for Mental Health v. COA


265 SCRA 390, December 6, 1996
ILLUSTRATIVE CASES
Nava v. Palattao
G.R. No. 16021, August 28, 2006

Facts:

The head of the procuring entity persuaded his 7 Schools Division


Superintendents to ignore Circular No. 85-55A (public bidding).
Because allegedly time was of the essence in making the
purchases and if not done before the calendar year 1990, the
funds allotted will revert back to the general fund. In justifying the
negotiated purchase without public bidding, it claims that “any delay
in the enrichment of the minds of the public school students is
detrimental and antithetical to public service.” As a result, the prices
as purchased, exceeded the prevailing market price from 56% to
1,175 percent as determined by the COA.

32
ILLUSTRATIVE CASES
Nava v. Palattao
G.R. No. 16021, August 28, 2006

Issue:
Is Nava guilty of violation of the Anti-Graft and Corrupt Practices Act
particularly Section 3(g) thereof, or entering on behalf of government in
any contract or transaction manifestly and grossly disadvantageous to
the same whether or not the pubic officer profited or will profit thereby.
Ruling:

There was no showing of any immediate and compelling


justification for dispensing with the requirement of public bidding.
Unsubstantiated reasoning that a public bidding would unnecessarily
delay the purchase is unacceptable. The law on public bidding is not
an empty formality. It aims to secure the lowest possible price and
obtain the best bargain for the government. It is based on the
principle that ordinary circumstances, fair competition in the
market tends to lowers prices and eliminate favoritism.
33
ILLUSTRATIVE CASES
National Center for Mental Health v. COA
265 SCRA 390, December 6, 1996
Facts:
❑NCMH undertook the long overdue rehabilitation of its various
facilities, which includes several major repairs of, and renovations
on, the Center’s 120 pavilions and buildings in a vast compound of
about 46.7 hectares. It is a long term enhancement program to
provide healthy and pleasant environment, considered to be an
essential part in the correct treatment of mental illnesses. The plan
was costly, but it had to be done fast if the mental health care
services in the country were to be put to a suitable state.

Issue:
Whether or not NCMH is justified in resorting to Negotiated
Procurement.
ILLUSTRATIVE CASES
National Center for Mental Health v. COA
265 SCRA 390, December 6, 1996

Ruling:

❑The SC upheld the validity of the negotiated contracts


for the renovation and the improvement of the NCMH.
Petitioners were able to show that the long overdue
need to renovate the Center “made it compelling to
fast track what had been felt to be essential in
providing due and proper treatment and care for the
Center’s patients.
NEGOTIATED PROCUREMENT:
TAKE-OVER OF CONTRACTS

[Section 53.3 of the 2016 Revised IRR of RA 9184]


NEGOTIATED PROCUREMENT

Applicability

Take-Over of
Contracts
Goods Infrastructure Consulting
Projects Services

Conditions

Contract, previously Immediate action is necessary:


awarded through • To prevent damage to or loss of life
or property; or
Competitive Bidding, has
• To restore vital public services,
been rescinded or infrastructure facilities, and other
terminated public utilities.
NEGOTIATED PROCUREMENT

Applicability

Take-Over of
Contracts Goods Infrastructure Consulting
Projects Services

Procedural Guidelines Procedural Guidelines

Post-Qualify & Negotiate If negotiation fails…

The BAC shall post-qualify and • Invite a short list of at least three (3)
negotiate starting with the 2nd suppliers, contractors or consultants
LCB or HRB at the said bidder’s to submit bids and negotiate starting
original bid price, then on to the with the LCB or HRB; or
next if negotiation fails. • Resort to any other appropriate
alternative method of procurement.
PROCEDURES

Termination Award of
Negotiations
of Contract Contract

[Annex “H”, (V)(D)(3)(b) of the 2016 Revised IRR of RA 9184]


PROCEDURES

1. The BAC shall post-qualify and negotiate starting with the


2nd LCB at the bidder’s original bid price, then to the next if
negotiation fails.
• Authority to negotiate contracts shall be subject to prior
approval by the HoPE, within their respective limits of
approving authority.
2. If negotiation fails another time, the process is repeated until
all the bidders from the previous bidding have been
considered.
[Annex “H”, (V)(D)(3)(b) of the 2016 Revised IRR of RA 9184]
PROCEDURES

3. If negotiation fails and there is no bidder left from the previous


bidding or if the original awardee is an SCRB, BAC may:
• Invite a short list of at least 3 to submit bids and negotiate starting with the
LCB; or
• Resort to any other appropriate alternative method of procurement.
4. In case of successful post-qualification and negotiation, the BAC
shall recommend to the HoPE the award of contract with the said
contractor.

[Annex “H”, (V)(D)(3)(b) of the 2016 Revised IRR of RA 9184]


41
What action may the Procuring Entity take
if the contractor continues to delay the
project?
• Aside from collecting on the liquidated damages, once the
cumulative amount of liquidated damages reaches 10% of
the contract amount, the PE may rescind or terminate the
contract, without prejudice to other courses of action and
remedies available under the circumstances.
• The PE may also take over the contract or award the
same to a qualified contractor through negotiation.
• In addition to the liquidated damages, the erring contractor’s
performance security shall also be forfeited.
NEGOTIATED PROCUREMENT:
ADJACENT OR CONTIGUOUS

[Section 53.4 of the 2016 Revised IRR of RA 9184]


NEGOTIATED PROCUREMENT
Background
Where subject contract is adjacent/contiguous to an on-going civil work
Adjacent or
or consulting service where contractors/consultants have unique
Contiguous experience & expertise to deliver required service

Applicability
Conditions
Original contract is a result of competitive
bidding;
Infrastructure
Projects
Subject contract has similar or related scopes
🔨 of work;

Within the contracting capacity of the


Consulting
Services contractor/consultant;
NEGOTIATED PROCUREMENT
Conditions

Adjacent or In determining the SLCC, NFCC & PCAB license, the sum of the
Contiguous value of remaining works for the existing contract and the ABC of
contiguous or adjacent work shall be considered;

Applicability Same prices or lower unit prices as the original contract less
mobilization cost,

ABC of contiguous or adjacent work involved does not exceed the


Infrastructure contract amount of ongoing project.
Projects
No negative slippage/delay during the time of negotiation

Negotiations shall commenced before expiry of original contract


Consulting
Services
NEGOTIATED PROCUREMENT:
AGENCY-TO-AGENCY

[Section 53.5 of the 2016 Revised IRR of RA 9184]


WHAT IS A “SERVICING AGENCY”?

Procurement of goods from another agency of


the Government of the Philippines (GOP)

WHAT IS “AGENCY-TO-AGENCY”
PROCUREMENT?
The agency which delivers the goods or provides
the services
[Sec 53.5 of the IRR of RA 9184]
NEGOTIATED PROCUREMENT
Background

Agency-To-Agency Procurement from another government agency (Servicing Agency) that


has the mandate to deliver goods or services or to undertake
infrastructure projects or consultancy services as required by the PE.
Applicability

Goods
Conditions

PE shall justify that entering into an A-to-A with Servicing Agency is


Infrastructure more efficient & economical to the government
Projects
Servicing Agency has the absorptive capacity to undertake the
project;
Consulting
Services Servicing Agency owns or has access to necessary tools &
equipment required for the project;
NEGOTIATED PROCUREMENT

Agency-to-Agency Procedural Guidelines

The End-User
The End-User shall secure a The HoPE
shall justify to certificate The BAC shall shall enter into
the BAC that from the issue a a MOA with
the resort to relevant Resolution the Servicing
A-to-A is more officer of the recommending Agency upon
efficient and Servicing the use of A- approval of
economical to Agency that to-A to the the BAC
the the latter HoPE. recommendati
government. complies with on
the conditions.
NEGOTIATED PROCUREMENT -
AGENCY – TO – AGENCY
Important Reminders

Sub-contracting is not allowed. However, the servicing agency may


implement the infrastructure project in-house, by job-order, or through the
pakyaw contracting system; and

For procurement of infrastructure projects, the Servicing Agency must


have a track record of having completed, or supervised a project, by
administration or by contract, similar to and with a cost of at least fifty
percent (50%) of the project at hand.
PROCEDURES

Justification

Secure Certificate of Compliance


with requirements

BAC recommendation and HoPE


approval

Enter into MOA

51
NEGOTIATED PROCUREMENT:
SCIENTIFIC, SCHOLARLY OR ARTISTIC
WORK, EXCLUSIVE TECHNOLOGY &
MEDIA SERVICES

[Section 53.6 of the 2016 Revised IRR of RA 9184]


NEGOTIATED PROCUREMENT
Scientific, Scholarly or Artistic Work,
Exclusive Technology & Media Services
Applicability

Goods Infrastructure Consulting


Projects Services

Work of art; commissioned work or services of an artist for specific artistic


🎨 skills (e.g., singer, performer, poet, writer, painter, sculptor, etc.);

Scientific, academic, scholarly work or research, or legal services;

Highly-specialized life-saving medical equipment, as certified by the


Department of Health;
NEGOTIATED PROCUREMENT

Scientific, Scholarly or Artistic Work,


Exclusive Technology & Media Services
Applicability

Goods Infrastructure Consulting


Projects Services

Scientific, technical, economic, business, trade or legal journal, magazine,


paper, subscription, or other exclusive statistical publications and references;

Media documentation, advertisement, or announcement through television,


radio, newspaper, internet, and other communication media; and
Construction or installation of an infrastructure facility where the material,
🏰🔨equipment, or technology under a proprietary right can only be obtained from
the same contractor.
NEGOTIATED PROCUREMENT
Scientific, Scholarly or Artistic Work,
Exclusive Technology & Media Services
Applicability

Goods Infrastructure Consulting


Projects Services

Procedural Guidelines

Markey Study by Direct negotiation with Award of


End-User to supplier, contractor, Contract
justification consultant
CONDITIONS

Infrastructure Projects can be contracted to a


particular contractor for the reason that:

➢ the construction or installation of an


infrastructure facility where the material,
equipment, or technology under a proprietary
right can only be obtained from the same
contractor.

(Sec. 53.6 IRR of RA 9184)

56
CONDITIONS

➢ End-User shall conduct a market study and


determine the probable sources to justify the
need to procure through this negotiated modality.

➢ The study should confirm that the contractor,


contractor or consultant could undertake the
project at more advantageous terms.

➢ It must be conducted prior to the commencement


of the procurement process.

[Annex “H” (V)(D)(6)(b), IRR of RA 9184]

57
PROCEDURES

Market Award of
Negotiations
Study Contract

[Annex “H”, (V)(D)(3)(b) of the 2016 Revised IRR of RA 9184]


NEGOTIATED PROCUREMENT:
SMALL VALUE PROCUREMENT

[Section 53.9 of the 2016 Revised IRR of RA 9184]


NEGOTIATED PROCUREMENT
Applicability
Small Value
Procurement
Goods Infrastructure Consulting
Projects Services
Background
Procurement not Procedures
covered by
The BAC shall prepare and send the
Shopping under
RFQs/RFPs to at least three (3) suppliers,
Sec. 52 contractors or consultants of known
qualifications.
Threshold For procurement activities with ABC of
PhP50,000.00 & above, RFQ shall be posted
PhP1,000,000.00 in the PhilGEPS website, PE’s website &
for NGAs, GOCCs, GFIs, conspicuous place in the premises of the PE
SUCs & Autonomous Receipt of at least one (1) quotation/proposal
Regional Government
is sufficient to proceed with the evaluation.
NEGOTIATED PROCUREMENT
Small Value Procurement
Procedural Guidelines

Send RFQ/RFP to at Post in PhilGEPS,


least 3 suppliers PE’s website and
conspicuous place
Prepare *May be 1 in case of 52.1(a) for 3 cd
RFQ/RFP *Receipt of 3 RFQs for 52.1(b) is *Except 52.1(a) and ABC 50k
mandatory and below
Receipt of 1 RFQ in SVP will *Extend deadline if no
suffice quotation is received

Award to LCB (for


SHP & SVP)/HRB
Prepare Abstract (for SVP) that
of Quotations complies with
specs and ABC
THRESHOLDS IN “SMALL
VALUE PROCUREMENT”
• For LGUs, in accordance with the following schedule:

LGU Classification Province City Municipality


1st Class 1,000,000 1,000,000 200,000
2nd Class 1,000,000 1,000,000 200,000
3rd Class 1,000,000 800,000 200,000
4th Class 800,000 600,000 200,000
5th Class 600,000 400,000 200,000
6th Class 400,000 200,000 200,000

(Annex “H” (V)(D)(8), IRR of RA 9184)


PROCEDURES

1. The End-User shall submit a request for SVP to the


BAC, which indicates the technical specifications,
ABC and other terms and conditions.

2. The BAC shall prepare and send the RFQs to at least


three (3) contractors of known qualifications. This,
notwithstanding, those who responded through any of
the required postings shall be allowed to participate.
Receipt of at least one (1) quotation is sufficient to
proceed with the evaluation thereof.

[Annex “H” (V)(D)(8)(b), IRR of RA 9184]


PROCEDURES

3. Except for those with ABCs equal to Fifty Thousand


Pesos (₱ 50,000.00) and below, RFQs shall be posted
for a period of three (3) calendar days in the
PhilGEPS website, website of the Procuring Entity, if
available, and at any conspicuous place reserved for
this purpose in the premises of the Procuring Entity.

4. Pre-bid conference may be conducted at the


discretion of the BAC, in order to clarify and/or explain
any of the requirements, terms, conditions, and
specifications stipulated in the RFQ.
[Annex “H” (V)(D)(8)(b), IRR of RA 9184]
PROCEDURES
5. After the deadline for submission of quotations, an
Abstract of Quotation shall be prepared setting forth
the names of those who responded to the RFQ, their
corresponding price quotations.

6. The BAC shall recommend to the HOPE the award of


contract in favor of the contractor with the Single or
Lowest Calculated and Responsive Quotation. In
case of approval, the HOPE shall immediately enter
into contract with the said contractor.
(Annex “H” (V)(D)(8)(b), IRR of RA 9184)

65
NEGOTIATED PROCUREMENT:
NON-GOVERNMENTAL
ORGANIZATION (NGO)
PARTICIPATION IN PUBLIC
PROCUREMENT

[Section 53.11 of the 2016 Revised IRR of RA 9184]


NEGOTIATED PROCUREMENT
Applicability

NGO Participation
Goods Infrastructure Consulting
Projects Services

Conditions
Appropriation law or ordinance earmarks an amount to be contracted
to NGOs
PE may opt to conducting public bidding or enter into a MOA with an
NGO

Procedural Guidelines (for Negotiated Procurement)


BAC shall invite at least 3 prospective NGOs to submit sealed price quotations
with complete project proposals
Upon determination of the Lowest Calculated Bid & after the submission &
evaluation of eligibility documents, PE shall enter a MOA with the eligible NGO
PROCEDURES AND REQUIREMENTS

GPPB Resolution No. 12-2007, dated 29 June


2007 approving the Guidelines on Non-
Governmental Organization Participation in
Public Procurement

❑ Public Bidding Limited to NGOs; or


❑ Negotiated Procurement

[GPPB Resolution No. 12- 2007, dated 29 June 2007]


NEGOTIATED PROCUREMENT:
COMMUNITY PARTICIPATION

[Section 53.12 of the 2016 Revised IRR of RA 9184]


NEGOTIATED PROCUREMENT
Background
Involvement of people in a community in projects to
Community address their own community needs
Participation
Participation of local communities in the delivery of
goods, including non-consulting services and simple
Applicability infrastructure projects
In the interest of project sustainability or to achieve
certain specific social objectives

Goods References
Community Participation in Procurement Manual
Supplemental Guidelines for Community
Infrastructure Participation in Procurement Method for Foreign
Projects Assisted Projects
Supplemental Guidelines for Community-
Managed Procurement in Locally-Funded Projects
NEGOTIATED PROCUREMENT:
Community Participation
Opening &
Preparation of RFQ Posting Award of Contract
Evaluation
PE shall prepare RFQ to reflect brief description of the project,
1 specifications or scope of work, ABC & other necessary
information
BAC, through its Secretariat, shall post the RFQ in the website of
the PE (if any), the premises of the PE, & in at least 3 conspicuous
2
places where the project will be implemented for a period of at
least 3 calendar days
Should less than 3 quotations is obtained, the BAC shall continue
3 the procurement process. The opening of sealed quotations shall
use a non-discretionary pass or fail criterion

In case of approval, the HOPE shall issue the notice of award within
4
a period not exceeding 15 calendar days
CONDITIONS

The ABC meets the following thresholds:


Maximum Amount
Procuring Entity
(Pesos)
1. National Government Agencies 5,000,000
2. Government Owned/Controlled Corporations
3. Government Financial Institutions
4. State Universities and Colleges

5. LGUs 2,500,000
• 1st-3rd Class Provinces
• 1st-2nd Class Cities
• Highly Urbanized Cities

[GPPB Resolution No. 09-2014 dated 23 May 2014]


72
CONDITIONS

Procuring Entity Maximum Amount (Pesos)


5. LGUs 1,750,000
• 4th Class Province
• 3rd Class City
5. LGUs 1,000,000
• 5th Class Province
• 4th Class City
5. LGUs 750,000
• 6th Class Province
• 5th-6th Class Cities
• Municipalities
• Barangays

[GPPB Resolution No. 09-2014 dated 23 May 2014]


PROCEDURES & REQUIREMENTS

• GPPB Resolution 09-2014, dated 23 May 2014


approving and adopting the Community
Participation Procurement Manual (CPPM)
and the Implementing Guidelines for Negotiated
Procurement under Section 53.12 (Community
Participation) of the IRR of RA 9184.
UPDATED PROCEDURES &
REQUIREMENTS
• Resolution No. 28-2016
20 December 2016

➢Approving the Guidelines on Community-Managed


Procurement as a Supplement to the Community
Participation Procurement Manual (CPPM)

75
NEGOTIATED PROCUREMENT:
UNITED NATION AGENCIES,
INTERNATIONAL ORGANIZATIONS
OR INTERNATIONAL FINANCING
INSTITUTIONS
[Section 53.13 of the 2016 Revised IRR of RA 9184]
NEGOTIATED PROCUREMENT
Applicability
United Nations Agencies,
International
Organizations or Infrastructure Consulting
Goods
International Financing Projects Services
Institutions

Conditions

Procurement from UN Agencies, IOs or IFIs, of any of the following:


Small quantities of off-the-shelf goods, primarily in fields of education
& health;
Specialized products where the number of suppliers is limited (e.g.
vaccines, drugs); or
Goods, infrastructure projects and consulting services, involving
advanced technologies, techniques and innovations not locally
available as certified by the HoPE,.
CASE STUDY
CASE STUDY
Facts:

National Government Agency A is bidding for the


construction of a 6-storey building. The first Public Bidding
attempt was discontinued upon the instruction of the Head
of the Procuring Entity on the ground that the bidding
process was not followed by the BAC and the Secretariat,
i.e., Observers were not invited within the reglementary
period as prescribed in RA 9184 and its IRR. The second
attempt for Public Bidding failed as no bidder bought
bidding documents and submitted bid proposals.

79
CASE STUDY
Facts:

The Procuring Entity then undertook a mandatory review of


the process undertaken to determine the reason for the
failed bidding in accordance with Section 35. Based on the
findings, the ABC used is way below the prevailing market
prices and that the cost for the construction of power house
was not considered. The Procuring Entity estimates that an
increase of 15% in the ABC is necessary to approximate
the cost of the said construction of power house.

80
CASE STUDY
Questions:

1. If you were the BAC, what should be the most


appropriate method of procurement to be
recommended to the HoPE after the two (2) failed
biddings?

2. Assuming that there was a successful award in the


foregoing case, can the Procuring Entity resort to
Repeat Order for additional air-conditioning units to be
installed in the building? Explain your answer

81
CASE STUDY
Questions:

3. Assuming that the contract was terminated for default,


what will be the remedy of the Procuring Entity for the
completion of the 6-storey building?

4. Assuming that after the completion of the 6-storey


building and expiration of the contract, a new power
house will be constructed, although not emergency in
nature, in the adjacent lot with an ABC of PhP 1 million
pesos. What can be the appropriate method of
procurement?

82
GENERAL GUIDELINES &
OTHER TERMS & CONDITIONS

[Appendix H of the 2016 Revised IRR of RA 9184]


GENERAL GUIDELINES
Prohibition on Splitting of Government Contracts
Division or breaking up of government contracts into smaller quantities
and amounts, or dividing contract implementation into artificial phases
or sub-contracts for the purpose of evading or circumventing the
requirements of procurement rules & procedures is prohibited.
However, mere act of dividing a contract into smaller quantities or
phases does not automatically constitute splitting of contract.
PEs are authorized to divide a procurement project into lots to attract
the maximum competition but must ensure that doing so is not made
to circumvent any provisions of RA No. 9184 & its IRR.

- (NPM 020-2019)
GENERAL GUIDELINES

Advertisement Posting of Procurement Opportunities


Advertisement in the newspaper and posting requirements may be
dispensed with provided that the BAC through its Secretariat shall post the
procurement opportunity (RFQ or RFP) in PhilGEPS, website of PE if
available, and conspicuous place in the premise of PE for a period of at
least three (3) calendar days, for the following methods:

Small Value
Limited Source Shopping Two-Failed NGO
[Sec 52.1(b), above Procurement
Bidding PhP50,000.00] Biddings Participation [above PhP50,000.00]
GENERAL GUIDELINES
PhilGEPS Registration
Bidders are mandated to register with PhilGEPS, and provide PhilGEPS
Registration Number as a condition for award on the following modalities:

Direct Shopping Take-Over of Small Value


Contracting [Sec 52.1(b)] Contracts Procurement

👨👩
Lease of Real Scientific, Scholarly or Artistic Highly
Property Work, Exclusive Technology Technical
&Venue and Media Services Consultants
GENERAL GUIDELINES
Reference to Brand Names
Reference to brand names shall not be allowed except for items or
parts that are compatible with the existing fleet or equipment of the
same make and brand and will maintain the performance, functionality
and useful life of the equipment.
This rule shall also apply to the goods component of infrastructure
projects and consulting services.

Delegation of Authority
The conduct of the following may be delegated to End-user unit or any
other appropriate bureau, committee, or support unit duly authorized
by the BAC through a Resolution approved by the HoPE:

Shopping Nego. Proc. Small Value Lease of Real


[Sec 52.1(b)] Emergency Cases Procurement Property &Venue
GENERAL GUIDELINES

Most Advantageous Price for Government

In all procurement activities, PEs shall ensure to get the most advantageous
price for the government
PEs shall ensure that the objectives & purpose of the contract do not
constitute unnecessary, excessive, extravagant or unconscionable
expenditure

Posting of Notice of Award, Contract and Notice to Proceed


NOA, Contract/PO, including the NTP if necessary shall be poste, within 10 days
from their issuance, in the following:
Conspicuous place in PE’s
PhilGEPS website PE’s website premises

Except for contracts with ABC of ₱50,000.00 & below.


GENERAL GUIDELINES

Invitation of Observers

👨👩Generally, invitation of Observers are not required when resorting to alternative


methods of procurement except in those where competitive bidding or semblance
a semblance thereof is still present, such as:

Limited Source Bidding Two-Failed Biddings

👨👩Observers shall be invited at least five (5) cd before the date of the
negotiation and the absence of Observers will not nullify the BAC
proceedings, provided that they have been duly invited in writing.
Guidelines, Terms & Conditions
Award of Contract
1. Except in Negotiated Procurement through
Emergency Cases, Agency-to-Agency and Small
Value Procurement, the BAC shall recommend to
the HOPE the award of contract. Within a period not
exceeding fifteen (15) calendar days from receipt, the
HOPE shall approve or disapprove the BAC’s
recommendation. In case of approval, the HOPE shall
immediately issue the NOA to the Contractor.
In the event the HOPE shall disapprove the
recommendation, such disapproval shall be based
only on valid, reasonable, and justifiable grounds to
be expressed in writing, addressed to the BAC.
[Annex “H” (IV)(L) IRR of RA 9184]
90
Guidelines, Terms & Conditions

Award of Contract

2. The Supplier shall immediately enter into contract


with the Procuring Entity upon receipt of the NOA.
Upon transmission of the signed contract/PO, the
HOPE or his duly authorized representative shall
immediately sign the contract/PO provided that all
the relevant documentary requirements are
submitted.

[Annex “H” (IV)(L) IRR of RA 9184]


Guidelines, Terms & Conditions

Award of Contract

3. The HOPE or his duly authorized representative shall


issue the NTP, if necessary, and a copy of the
approved contract to the Supplier within three (3)
calendar days from the date of approval of the
contract by the appropriate government approving
authority.

[Annex “H” (IV)(L) IRR of RA 9184]


Guidelines, Terms & Conditions

Award of Contract

3. The BAC, through its Secretariat, shall post the NOA,


Contract/PO, including the NTP if necessary, in the
PhilGEPS website, the PE’s website, if available, and
at any conspicuous place in the premises of the PE
within ten (10) days from their issuance.

[Annex “H” (IV)(L) IRR of RA 9184]


DOCUMENTARY REQUIREMENTS

The BAC shall indicate in the RFQ or RFP at what


stage of the procurement process the documentary
requirements must be submitted, i.e., submission of
offer/s, evaluation of offer/s, before issuance of
Notice of Award or prior to payment.
DOCUMENTARY
REQUIREMENTS
Direct Shopping Negotiated Procurement
Contracting [Sec 52.1(b)] Emergency Cases

Mayor’s Permit Mayor’s Permit Mayor’s Permit

PCAB License (for Infra.)


PhilGEPS Reg. No. PhilGEPS Reg. No.
NFCC (for Infra.)
For ABCs above PhP500,000.00
Income/Business
Tax Return Income/Business Tax Return
For ABCs above For ABCs above PhP500,000.00
PhP500,000.00
Omnibus Sworn Statement

For ABCs above PhP500,000.00


DOCUMENTARY
REQUIREMENTS
Scientific, Scholarly or Artistic
Take-Over of Adjacent or
Work, Exclusive Technology and
Contracts Contiguous Media Services

Mayor’s Permit PCAB License Mayor’s Permit


(for Infra.)

Professional NFCC (for Infra.) Professional License/CV


License/CV (for Consulting Services)
(for Consulting Services)
PhilGEPS Reg. No.
PhilGEPS Reg. No.
Income/Business Tax Return
PCAB License
(for Infra.)
For ABCs above PhP500,000.00

NFCC (for Infra.)


DOCUMENTARY
REQUIREMENTS
👨👩
Highly Small Value Lease of Real
Technical Procurement Property &Venue
Consultants
Mayor’s Permit
Mayor’s Permit Professional Mayor’s Permit
License/CV Except for gov’t agencies as lessors
(for Consulting Services)
Professional
License/CV PhilGEPS Reg. No. PhilGEPS Reg. No.
(for Consulting Services)
Except for gov’t agencies as lessors
PCAB License
(for Infra.)
PhilGEPS Reg. No. Income/Business
Income/Business Tax Tax Return
Return
Except for gov’t agencies as lessors
For ABCs above PhP500,000.00
Omnibus Sworn
Statement
For ABCs above PhP500,000.00
PERFORMANCE AND
WARRANTY SECURITIES
Alternative Method of
Performance Security Warranty Security
Procurement

For highly-specialized types of


Limited Source Yes goods, WS is required
Bidding

Direct No Yes
Contracting

No Yes
Repeat Order

Yes
Yes (in no case shall WS be required
Two-Failed for Consulting Services)
Biddings
PERFORMANCE AND
WARRANTY SECURITIES
Alternative Method of
Performance Security Warranty Security
Procurement

PE may require PS PE may require WS


Negotiated Procurement depending on the depending on the
Emergency Cases nature of the nature of the
procurement procurement project.
project. However, In no case shall WS
for Infrastructure be required in the
Projects, PS is procurement of
Small Value
required Consulting Services.
Procurement

Take-Over of Yes Yes


Contracts

For Infrastructure Projects,


Yes WS is required
Adjacent or
Contiguous
Contact us:
Unit 2504 Raffles Corporate Center, F. Ortigas Road,
THANK YOU! Ortigas Center, Pasig City, Philippines 1605

TeleFax: (632)7900-6741 to 44
Email address: training@gppb.gov.ph

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