Procurement Revision

1. Salient IRR Revisions
Standardized Bidding Procedures
Goods, Infra, Consulting

2. IRR Revisions:
 Eligibility Requirements (Sec. 23)
 Legal Documents
 DTI / SEC / CDA Registration
 Mayor’s permit for principal place of business
 Technical Documents
 Statement of all on-going and completed contracts
 PCAB license and registration (Infra only)
 Unless otherwise stated in treaty or international or executive
agreement
 Statement of the consultant’s nationality and Key staff’s
confirmation that they are registered professionals
(consulting only)

3. IRR Revisions:
 Eligibility Requirements (Sec. 23)
 Financial Documents
 Latest Audited Financial Statements
 NFCC computation or Credit Line Commitment from a
universal or commercial bank (goods and infra only)
 For LGUs, other banks authorized by BSP to issue said instrument

4. IRR Revisions:
 Eligibility Requirements
 Class “B” Documents: If Joint Venture -
 JVA
 If no JVA, sworn statements by each partner that they will
enter into and abide by provisions of the JVA if awarded the
contract

5. IRR Revisions:
 Eligibility Requirements (Sec. 23)
 If foreign bidder -
 Submit equivalent documents issued by country
 Accompanied by English translation certified by appropriate
embassy or consulate in the Philippines

6. IRR Revisions:
 Eligibility Criteria (Sec. 23)
 Legal Eligibility (Goods)
 General rule: 60% Filipino
 Foreign bidders eligible allowed –
 If stated in treaty, 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

7. IRR Revisions:
 Eligibility Criteria (Sec. 23)
 Legal Eligibility (Infra)
 General rule: 75% Filipino (LOI 630)
 If joint venture, less than 75% is allowed if -
 Not less than 25% Filipino
 Structures to be built require techniques not possessed by
75% Filipinos
 Foreign contractors allowed if stated in treaty or
international or executive agreement

8. IRR Revisions: Goods
 Eligibility Criteria (Sec. 23)
 Technical Eligibility (Goods) - Single Largest Contract
General Rule Exceptions Then require the ff.:
1.Expendable
Supplies
• 25% of the ABC
2.Services and Non-
expendable Supplies
• 50% of the ABC
If, at the outset and
after market research,
applying the general
rule will likely result to:
1.Failure of bidding; or
2.Monopoly
a) At least 2 similar
contracts
aggregate amount
at least equivalent
to required
percentage; and
b) Largest of the
similar contracts
amounts to at least
50% of required
percentage
8

9. IRR Revisions:
 Eligibility Criteria (Sec. 23)
 Technical Eligibility (Infra)
 Track Record: Single Largest Contract
 Retain at 50%
 But within a period of ten years
 For foreign funded procurement, a different track
record may be agreed upon

10. IRR Revisions:
 Eligibility Criteria (Sec. 23)
 Technical Eligibility (Infra)
 PCAB License (RA 4566)
 Satisfactory CPES Rating and/or certificate of
completion and acceptance

11. IRR Revisions:
 Eligibility Criteria (Sec. 23)
 Financial Eligibility (Goods and Infra)
 NFCC at least equal to ABC
 Credit Line Certificate at least equal to 10% of ABC
 Issued by Universal or Commercial Bank
 For LGUs: other banks certified by BSP as authorized to
issued said CLC
 Option to submit cash deposit certificate deleted

12. IRR Revisions:
 Submission and Receipt of Bids (Sec. 25)
 Two-Envelope System (Eligibility requirements
included in the Technical Proposal)
 In Infrastructure Projects, Technical (incl. eligibility
requirements) and Financial Proposals will now
be submitted at the same time

13. IRR Revisions:
 Submission and Receipt of Bids (Sec. 25)
 First Envelope
 Eligibility requirements
 Bid security
 Technical specifications (goods)/
Project Requirements (infra)
 Approach, work plan and schedule (consulting only)
 List of key personnel (consulting only)
 Omnibus sworn statement

14. IRR Revisions:
 Submission and Receipt of Bids (Sec. 25)
 Second Envelope
 Financial information/documents specified in the
Philippine Bidding Documents

15. IRR Revisions:
 Notice of Award (Sec. 37)
 Conditioned on the following:
 If joint venture, submission of JVA
 Posting of Performance Security
 Signing of Contract
 If required, approvals by higher authority

16. IRR Revisions:
 Domestic and Foreign Goods (Sec. 43)
 Requires procuring entity to give preference to
domestic entities and to materials and supplies
produced, made, and manufactured in the
Philippines (domestic bidder).
 Domestic entities can only claim preference if certified
by SEC/DTI/CDA
 Domestic bidder can only claim preference if certified
by DTI

17. IRR Revisions:
 Domestic and Foreign Goods (Sec. 43)
 Domestic entities (Sec. 5 [k])
 75% Filipino
 Habitually established in business and engaged in the
manufacture or sale of product to be bid
 In existence for at least 5 consecutive years
 Domestic entities can only claim preference if certified
by SEC/DTI/CDA

18. IRR Revisions:
 Domestic and Foreign Goods (Sec. 43)
 Domestic bidder (Sec. 5 [j])
 Any person or entity
 Offering articles/materials/supplies
 If unmanufactured, grown or produced in the Philippines
 If manufactured, substantially from those grown or produced
in the Philippines
 Domestic bidder can only claim preference if certified
by DTI

19. IRR Revisions
 Domestic and Foreign Goods (Sec. 43)
 Provides procedures in determining entitlement to
domestic preference
 Applied only where the lowest bid has a foreign
component (foreign bid/entity) and the next lowest
bid has a domestic component (domestic
bidder/entity)

20. SAMPLE APPLICATION OF PREFERENCE
Lowest Calculated Bid
Next Lowest Calculated
Bid
Foreign Bidder Domestic Bidder/Entity
Bid 2,653,360.00 3,009,492.00
% Preference x 15%
398,004.00
+ 2,653,360.00
Bid as increased 3,051,364.00 3,009,492.00
Result
Award to Domestic Bidder/Entity at 2,653,360.00, or
Award to Foreign Bidder if Domestic Bidder/Entity refuses
Sample Computation

21. IRR Revisions:
 Warranty Security – Goods (Sec. 62)
 Expendable Supplies – 3 months, unless
consumed earlier
 Non-expendable Supplies – 1 year

22. IRR Revisions:
 Warranty Security – Infra (Sec. 62)
 Warranty period vs. Warranty security period
 Warranty security period reduced to 1 year
 Liability per stage
 From project construction to final acceptance
 From project completion to final acceptance
 From final acceptance to warranty security period
Bidding Construction Completion Acceptance Warranty

23. IRR Revisions:
 Liquidated Damages (Sec. 68)
 Adopted formula of Goods
 One-tenth of one percent (1%) of the cost of the
unperformed portion for every day of delay

24. IRR Revisions:
 Advance Payment for Goods
 Goods supplied from abroad
 10% advance payment allowed
 Upon submission of a bank guarantee
 Equivalent amount
 Valid until goods are delivered

25. Thank you
 Comments, questions?
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