PROCUREMENT PROCESS UNDER

EMERGENCY CASES
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

The process involved in Negotiated Procurement (Emergency) Cases under Section

53(b) of Republic Act (RA) No. 9184 and 53.2 of its IRR, is summarized as follows:

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 Specification, Scope of Work or Terms of
Reference and validating the existence of funds in the budget to cover
the same.
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

The process involved in Negotiated Procurement (Emergency) Cases under Section

53(b) of Republic Act (RA) No. 9184 and 53.2 of its IRR, is summarized as follows:

Cont.

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 by the grounds for emergency procurement,
Thereby, dispensing with the previous requirement for a written
confirmation from the HOPE prior to the approval of contract.
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

The process involved in Negotiated Procurement (Emergency) Cases under Section

53(b) of Republic Act (RA) No. 9184 and 53.2 of its IRR, is summarized as follows:

Cont.

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.
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

The process involved in Negotiated Procurement (Emergency) Cases under Section

53(b) of Republic Act (RA) No. 9184 and 53.2 of its IRR, is summarized as follows:

Cont.

3. Upon recommendation of the BAC or the 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.
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

The process involved in Negotiated Procurement (Emergency) Cases under Section

53(b) of Republic Act (RA) No. 9184 and 53.2 of its IRR, is summarized as follows:

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.
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

The process involved in Negotiated Procurement (Emergency) Cases under Section

53(b) of Republic Act (RA) No. 9184 and 53.2 of its IRR, is summarized as follows:

Cont.

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.
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

1. When can PE’s resort to Negotiated Procurement (Emergency Cases)

PEs shall be allowed to apply the rules of Negotiated Procurement

(Emergency Cases) in any of the following:

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

b. When time is of the essence arising from actual or man-made calamities
or other causes where immediate action is necessary to prevent damages
to or loss of life or property; or
c. To restore vital public services, infrastructure facilities and other public
utilities. (Section 53.2 of the 2016 IRR of RA no. 9184)
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

1. When can PE’s resort to Negotiated Procurement (Emergency Cases)

Cont…
The instances or situations where the foregoing conditions may be
applied include the provision of immediate response and initial
recovery steps to avoid loss of life, injury, disease and other
negative effects on human, physical, mental and social well-being,
together with damage to property, destruction of assets, loss of
services, social and economic disruption and environmental
degradation. (GPPB Resolution no. 03-2020)
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

2. What types of Procurement Projects may Negotiated Procurement

(Emergency Cases) be applied? And can it be used for Lease of real
property or venue?

Negotiated Procurement (Emergency Cases) covers Goods, Civil

Works projects and Consulting Services.

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 Res. No. 03-2020)
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

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?

No more, by approving the APP containing the Procurement Project

subject to Negotiated Procurement (Emergency Cases), the HOPE
effectively confirms the existence and veracity of the grounds relied
upon in resorting to this modality. (GPPB Res. No. 03-2020)
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

4. What are the requirement before 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).
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

4. What are the requirement before HOPE approves the APP covering
the Procurement Project subject to 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.
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

4. What are the requirement before HOPE approves the APP covering
the Procurement Project subject to Negotiated Procurement
(Emergency Cases)

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 Alternate Mode of Procurement should be
considered; and
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

4. What are the requirements before HOPE approves the APP covering
the Procurement Project subject to Negotiated Procurement
(Emergency Cases)

b. The HOPE shall validate from appropriate office that there

are funds in the budget to cover the Procurement Project
subject to Negotiated Procurement (Emergency cases).
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

5. Who will undertake the negotiations or procurement in the case of

Negotiated Procurement (Emergency Cases)

a. The BAC; or

b. The End-user unit or any other appropriate bureau, committee,

support or procuring unit authorized by the HOPE.
(GPPB Res. No. 03-2020)
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

6. What are the mandatory documentary requirements for Negotiated

Procurement (Emergency Cases)

PE’s already maintaining a bidders updated file on any of the

following requirements, whether through the Philippine
Government Electronic Procurement System (PhilGEPS)
Certificate of Registration and Membership or its own records,
shall not require its re-submission.
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

6. What are the mandatory documentary requirements for Negotiated

Procurement (Emergency Cases)

Otherwise, PEs shall require:

a. Mayor’s or Business Permit;
b. Omnibus Sworn Statement; and
c. PCAB License (Infra)
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

6. What are the mandatory documentary requirements for Negotiated

Procurement (Emergency Cases)

For projects with an ABC above PhP 500,000.00:

d. 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)
e. Omnibus Sworn Statement (OSS)
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

6. What are the mandatory documentary requirements for Negotiated

Procurement (Emergency Cases)

Additional requirement for infrastructure project:

f. PCAB License; and
g. Net financial Contracting Capacity (NFCC) for
infrastructure projects with an ABC above
PhP 500,000.00.
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

7. What if the local government unit has not issued the Mayor’s or
Business Permit, is the PE allowed to accept substitute?

Yes. The PE is allowed to accept the recently expired

Mayor’s or business Permit and the Official Receipt as
proof of application and payment for the renewal of the
permit will suffice, subject to submission of the Mayor’s
Permit after award of contract. (GPPB Res. No. 05-2020)
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

8. Can the PE accept an unnotarized OSS given the difficulty of securing

the service of a Notary Public under a State of Emergency or Calamity or
Enhanced Community Quarantine?

Yes, The PE may accept an unnotarized OSS, subject to compliance

therewith after award of the contract (GPPB Res. No. 05-2020)
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

9. When should the documentary requirements for Negotiated

Procurement (Emergency cases) be submitted?

The documents shall be submitted at any time before the

award of the contract. Thus, it may be required during:
a. submission of offers;
b. Evaluation of offer/s; or
c. Before issuance of Notice of Award.
The PE should indicate in the Request for Quotation/Proposal
at what stage of the Procurement process these requirements
shall be submitted.
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

10. Are bid, performance and warranty securities required for

Negotiated Procurement (Emergency cases)

a. Submission of bid security may be dispensed with;

b. Performance Security shall be required for infrastructure
Projects. For GOODs and Consulting Services, PEs have
option to require or dispense with the posting of
Performance Security taking into consideration the nature
of the emergency sought to be addressed, and the imminent
danger to life and property it poses and defending on the
nature and requirements of their Procurement Projects,
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

10. Are bid, performance and warranty securities required for

Negotiated Procurement (Emergency cases)

i.e., amount of the ABC, delivery requirement, industry

practice, etc. (Section 54.5 of 2016 IRR of RA No. 9184).

c. Warranty Security shall not be required in the procurement

Consulting Services. For Goods and Infrastructure projects,
Pes have the option to require or dispense with the posting
of warranty security taking into consideration the nature of
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

10. Are bid, performance and warranty securities required for

Negotiated Procurement (Emergency cases)

emergency sought to be addressed and the imminent danger

to life and property it poses and depending on the nature and
requirements of the procurement project, i.e. amount od ABC,

industry practice, etc (Section 54.5 of 2016 IRR of RA No. 9184)

 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

11. Can PEs make advance payment?

Yes, advance payment is allowed in the following:

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.
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

11. Can PEs make advance payment?

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.
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

11. Can PEs make advance payment?

c) a lump sum or at most two installment 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.
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

11. Can PEs make advance payment?

d) not to exceed fifteen percent (15%) of the contract

amount for cost of mobilization for Consultancy
Services, subject to submission of an irrevocable standby
letter of credit ; and
 PROCUREMENT PROCESS UNDER
EMERGENCY CASES

FREQUENTLY ASKED QUESTION

11. Can PEs make advance payment?

e) Amount in excess of the foregoing requires prior approval

of the President of the Philippines.

( Section 1 of Memorandum Order No. 172 series of 2005,

Annexes D,E and F of the 2016 IRR of RA 9184, and Section
88 of Presidential Decree No. 1445 or the Auditing Code of
the Philippines)