BIDDING PROCEDURES AND UPDATES.pptx

2. ADVERTISEMENT/POSTING OF THE INVITATION TO
BID OR REQUEST FOR EXPRESSION OF INTEREST
Pre-Procurement
Conference
Advertisement
and Posting
Pre-Bid
Conference
Receipt and
Opening of Bids
Bid Evaluation
Post-
Qualification
Award of
Contract
 Purpose: To signal the start of the bidding process and invite interested
bidders to participate in the procurement activity, through the following:
 Bid opportunity, including complete Bidding Documents is uploaded for
at least seven (7) calendar days at the websites of the agency and the
Philippine Government Electronic Procurement System (PhilGEPS);
 Bid opportunity is posted at conspicuous places; and
 Recently Repealed: Advertisement in at least one (1) newspaper of
general nationwide circulation for procurement projects with ABC
>PhP10,000,000.00 for Goods, >PhP 15,000,000.00 for Infrastructure
Projects, and >PhP5,000,00.00 for Consulting Services

2. ADVERTISEMENT/POSTING
 Procuring entity may charge fees for the acquisition of Bidding Documents
based on the following rates:
APPROVED BUDGET FOR THE
CONTRACT
MAXIMUM COST OF BIDDING
DOCUMENTS IN PHP
500, 000 and below 500.00
More than 500, 000 up to 1 Million 1,000.00
More than 1 Million up to 5 Million 5,000.00
More than 50 Million to 500 Million 50,000.00
More than 500 Million 75,000.00
Pre-Procurement
Conference
Advertisement
and Posting
Pre-Bid
Conference
Receipt and
Opening of Bids
Bid Evaluation
Post-
Qualification
Award of
Contract

3. PRE-BID CONFERENCE
 Purpose: To discuss, clarify and explain the different aspects of the
project of the procuring entity with the prospective bidders
 When is it conducted: Held at least 12 calendar days before the
deadline for bid submission but not earlier than seven (7) calendar
days from the advertisement/posting of bid opportunity
 Required for procurement projects with ABC of equal to or more than
1,000,000.00
Pre-Procurement
Conference
Advertisement
and Posting
Pre-Bid
Conference
Receipt and
Opening of Bids
Bid Evaluation
Post-
Qualification
Award of
Contract

3. PRE-BID CONFERENCE
 May be conducted in person or face-to-face through
videoconferencing, webcasting, or similar technology, or a
combination thereof
 Answers to requests for clarifications or interpretation, as well as any
changes in the Bidding Documents shall be issued by the BAC through
the Supplemental/Bid Bulletins which is posted at the websites of
PhilGEPS and the agency, and at conspicuous places at least seven (7)
calendar days before the deadline for the submission of bids
 Modification or withdrawal of bids is allowed prior to the deadline for
the submission of bids
Pre-Procurement
Conference
Advertisement
and Posting
Pre-Bid
Conference
Receipt and
Opening of Bids
Bid Evaluation
Post-
Qualification
Award of
Contract

4. RECEIPT AND OPENING OF BIDS
 Bids submitted should be on the date, time, and place specified in
the advertisement through a Two-Envelope System:
 1st Envelope - Eligibility Requirements (except for Consulting
Services) and Technical Component
 2nd Envelope – Financial Component
 Only the 2nd envelope of eligible bidders whose 1st envelope have
been rated “passed” shall be opened
 Bids submitted after the deadline shall not be accepted
Pre-Procurement
Conference
Advertisement
and Posting
Pre-Bid
Conference
Receipt and
Opening of Bids
Bid Evaluation
Post-
Qualification
Award of
Contract

In the case of foreign bidders, appropriate equivalent documents issued
by the country of the foreign bidder under Class “A” Documents shall be
submitted, provided that:
 The documents are in English, or
 If the documents submitted are in a foreign language other than
English, it must be accompanied by a translation of documents in
English by any of the following:
 relevant foreign government agency;
 the foreign government agency authorized to translate
documents, or
 a registered translator in the foreign bidder’s country.

 Submitted documents of foreign bidder shall be authenticated by the
appropriate Philippine foreign service establishment/post or the
equivalent office having jurisdiction over the foreign bidder’s affairs
in the Philippines.
 Only upon actual determination and confirmation of this equivalence
through post qualification by the BAC may it be categorically
resolved that the foreign documents submitted are acceptable
substitutes of the required eligibility documents pursuant to Section
23.2 of the IRR. (NPM 42-2013)

 Only 1 form of Bid Security among the following allowed forms
is required to be submitted by the participating bidders
Form of Bid Security
Amount
Bid Security (% = ABC)
a) Cash or cashier’s/manager’s check
2%
b) Bank guarantee/draft or Irrevocable LC
c) Surety bond callable upon demand 5%
e) Bid Securing Declaration No percentage required

4. RECEIPT AND OPENING OF BIDS
 To ensure transparency and accurate representation of the bid
submission, the BAC Secretariat shall notify in writing all bidders
whose bids it has received within seven (7) calendar days from the
date of the bid opening.
 Original copy of bid form shall be typed or written in ink and shall be
signed by the bidder or its duly authorized representative
Pre-Procurement
Conference
Advertisement
and Posting
Pre-Bid
Conference
Receipt and
Opening of Bids
Bid Evaluation
Post-
Qualification
Award of
Contract

5. BID EVALUATION
Pre-Procurement
Conference
Advertisement
and Posting
Pre-Bid
Conference
Receipt and
Opening of Bids
Bid Evaluation
Post-
Qualification
Award of
Contract
 Purpose: To determine the Lowest Calculated Bid/LCB (for Goods and
Infrastructure Projects) or Highest Rated Bid/HRB (for Consulting
Services) by:
 Establishing correct calculated prices of bids; and
 Ranking calculated total bid prices from lowest to highest
 A non-discretionary criterion shall be used, which shall include
consideration of:
 Completeness of bids; and
 Minor arithmetical corrections

5. BID EVALUATION FOR CONSULTING SERVICES
 Two Methods of Evaluation:
 Quality-Based Evaluation (QBE) which considers only the
Technical Proposals in the ranking of consultants
 Quality-Cost-Based Evaluation (QCBE) which considers both the
Technical and Financial Proposals in the ranking of consultants
 Evaluation may be per individual or collegial
Pre-Procurement
Conference
Advertisement
and Posting
Pre-Bid
Conference
Receipt and
Opening of Bids
Bid Evaluation
Post-
Qualification
Award of
Contract

5. BID EVALUATION
 The No Contact Rule which prohibits communication between bidders and the
BAC shall apply only to those whose bids are being evaluated by the BAC after
passing the preliminary examination until the issuance of Notice of Award.
 No communication should be made by bidders until a decision to award a
contract is made by the BAC
 Domestics Preference shall only apply to Goods where the lowest bid has a
foreign component (foreign bid/entity) and the next lowest bid has a
domestic component (domestic bidder/entity)
Pre-Procurement
Conference
Advertisement
and Posting
Pre-Bid
Conference
Receipt and
Opening of Bids
Bid Evaluation
Post-
Qualification
Award of
Contract

NEGOTIATION FOR CONSULTING SERVICES
 Negotiations shall cover the following:
a) Discussion and clarification of the TOR and Scope of Services;
b) Discussion and finalization of the Procedural Requirements and work
program;
c) Consideration of appropriateness of qualifications and pertinent
compensation, number of man-months and the personnel;
d) Discussion on the services, facilities and data, if any, to be provided by
PE
concerned
Pre-Procurement
Conference
Advertisement
and Posting
Pre-Bid
Conference
Receipt and
Opening of Bids
Bid Evaluation
Post-
Qualification
Award of
Contract

NEGOTIATION FOR CONSULTING SERVICES
 Negotiations shall cover the following:
e) Discussion on the financial proposal submitted by the
consultant for QBE; and
f) Provisions of the contract.
Pre-Procurement
Conference
Advertisement
and Posting
Pre-Bid
Conference
Receipt and
Opening of Bids
Bid Evaluation
Post-
Qualification
Award of
Contract
 Except for meritorious reasons, negotiations with any one
consultant shall be completed within ten (10) calendar days

6. POST - QUALIFICATION
 Purpose: To determine whether the bidder/consultant with the LCB/HRB
complies with and is responsive to all requirements and conditions of
eligibility and the bidding of the contract – to be declared the Lowest
Calculated and Responsive Bid (LCRB)/Highest Rated Responsive Bid
(HRRB)
 A non-discretionary pass/fail criterion shall be used to “Verify, Validate
and Ascertain” all statements and documents (licenses, certificates, etc.)
submitted by the LCB/HRB
Pre-Procurement
Conference
Advertisement
and Posting
Pre-Bid
Conference
Receipt and
Opening of Bids
Bid Evaluation
Post-
Qualification
Award of
Contract

7. AWARD OF CONTRACT
 Additional documents are also required to be submitted by the
LCRB/HRRB
 Contract shall be awarded to the bidder with the LCRB/HRRB at its
submitted price or total calculated bid price, whichever is lower
 The BAC shall notify all other bidders, in writing, of its
recommendation to HOPE of award of contract to LCRB/HRRB within
three (3) calendar days from the issuance of the resolution
recommending award
Pre-Procurement
Conference
Advertisement
and Posting
Pre-Bid
Conference
Receipt and
Opening of Bids
Bid Evaluation
Post-
Qualification
Award of
Contract

 The Notice of Award (NOA) and Notice to Proceed (NTP) are issued
by the Head of the Procuring Entity (HoPE)
 The NOA, and NTP along with the contract are required to be
posted at the websites of PhilGEPS and the agency, and at any
conspicuous place within three (3) calendar days and 15 calendar
days from the respective date of issuance
Pre-Procurement
Conference
Advertisement
and Posting
Pre-Bid
Conference
Receipt and
Opening of Bids
Bid Evaluation
Post-
Qualification
Award of
Contract

 The contract effectivity date should be provided in the Notice to
Proceed, which should not be later than seven (7) calendar days
from its issuance.
 The BAC Secretariat shall post the NOA in the PhilGEPS, PE’s
websites and in any conspicuous place within 3 calendar days
from its issuance.
Pre-Procurement
Conference
Advertisement
and Posting
Pre-Bid
Conference
Receipt and
Opening of Bids
Bid Evaluation
Post-
Qualification
Award of
Contract

FAILURE OF BIDDING
 A failure of bidding is declared by the BAC when:
a) No bids are received;
b) Bids were received but no one was eligible;
c) All bids failed to post qualify; or
d) Someone post qualified but refused without justifiable cause
to
accept the award.

RESERVATION CLAUSE
 The HoPE reserves the right to:
a) Reject any and all bids;
b) Declare a failure of bidding; or
c) Not award the contract.
 Grounds:
a) Prima facie evidence of collusion;
b) BAC is found to have failed in following the prescribed bidding
procedures;
c) For justifiable reasons, the award of contract will not redound to
the
benefit of the Government

RECOMMENDED POSSIBLE PERIOD TO
COMPLETE THE PROCUREMENT ACTIVITY
Type
Earliest Period
(calendar days)
Maximum
Period
(calendar
days)
Goods and Services 26 136
Infrastructure
Projects
26 142 or 156
Consulting Services 36 180

PARTICIPATION OF OBSERVERS
 Observers represent the public, the taxpayers who are interested
in seeing to it that procurement laws are observed and
irregularities are averted
 At least three (3) Observers shall be invited by the BAC coming
from the following:
a) Commission on Audit (COA);
b) Duly recognized private group in the sector or discipline of
the particular type of procurement involved; and
c) Non-Government Organization (NGO)

PARTICIPATION OF OBSERVERS
 Observes must be invited in writing at least five (5) calendar days
before the date of the following procurement stage/activity:
a) Eligibility checking;
b) Shortlisting;
c) Pre-bid Conference;
d) Preliminary examination of bids;
e) Bid evaluation; and
f) Post qualification

 The GPPB has issued Standard Bidding Documents to be adopted
by all procuring entities, downloadable at the GPPB website:
a) Philippine Bidding Documents for Goods and Services, 5th
Edition
b) Philippine Bidding Documents for Infrastructure Projects, 5th
Edition
c) Philippine Bidding Documents for Consulting Services, 5th
Edition

RA 8182 as amended by RA 8555
Procurement funded from Foreign Grants
An Act Excluding Official Development Assistance (ODA)
from the Foreign Debt Limit in order to Facilitate the
Absorption and Optimize the Utilization of ODA Resources
Acquisition of Real Property
RA 8974 as amended by RA 10752
“An Act to Facilitate the Acquisition of Right-of-Way Site
or Location for National Government Infrastructure
Projects and for Other Purposes,”
Public-Private Sector Projects
RA 6957 as amended by RA 7718 (BOT Law)
“An Act Authorizing the Financing, Construction,
Operation and Maintenance of Infrastructure Projects by
the Private Sector, and for Other Purposes,”

Direct financial or material assistant to beneficiaries
If the direct financial or material assistance takes the form of goods, supplies or items that are
to be procured (e.g., relief goods), the same do not fall within the coverage of the cited
provision, but is subject to procurement rules and regulations embodied in RA 9184 and its IRR.
- (GPPB Circular 01-2017)
Participation to scholarships, training programs, continuing education,
etc.
Lease of government property for private use
Job order workers
Joint Venture Agreements between Private Entities and GOCCs or LGUs
Disposal of property and assets

Issue/s Revision Impact
Lack of
members to
constitute
BAC
Allows designation of an officer of the
next lower rank, in case of
unavailability of 5th ranking
permanent official (except for BAC
Chairperson) (Sec. 11.2.2)
In case of procurement outsourcing, a
representative from the Procuring Entity
may be designated as a provisional
member
The Chairperson and Vice-chairperson
shall be designated by the local chief
executive (Sec.11.2.2, 11.2.3(a),
11.2.3(b)(iii))
Increases the
pool from which
HOPE select its
BAC members

32
Lack of full-
time BAC
Sec
members to
support the
BAC in every
procurement
activity
Allows designation of an officer of the
next lower rank, in case of
unavailability of 5th ranking permanent
official
In case of ad hoc BAC Secretariat,
the HOPE shall assign full-time
support staff in its BAC Secretariat
(Sec. 14.2)
Fast-track
procurement

34
Lack of
training of
HOPE, BAC,
Secretariat
and TWG
The HoPE shall ensure that the BAC,
its Secretariat and TWG members,
including other relevant procurement
personnel are sent to attend capacity
development program.
Within six (6) months upon
designation, the BAC, its Secretariat
and TWG members should have
satisfactorily completed such training
or program conducted, authorized
or accredited by the GPPB through
its Technical Support Office.
Procurement
Professionali-
zation

36
Poor
specifications
a. Bid documents shall reflect the
necessary specifications required
to meet the needs of the PE
b. For mixed procurement, PE shall
specify all relevant requirements
for each procurement type (Sec.
17.2)
Quality of
Goods for the
lowest prices
Non-
Refundable
Fee
For bid docs
Provide instances when bid doc fees
may be refunded to the bidder, i.e.
declaration of failure of bidding
under Section 41 (Sec. 17.5)
Fairness in
procurement

38
Difficulty in
preparing
technical
specifications
Reference to
Brand Names
Prohibition on brand names likewise
apply to the goods component of
Infrastructure Projects and
Consulting Services. (Sec. 18)
However, PEs may indicate brand
names 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.
Ensure
compatibility,
interoperability,
performance,
functionality
and useful life
of the
equipment.

40
Newspaper
advertisement
a. Increase thresholds for
advertisement requirement
b. 2 years sunset clause on
advertisement requirement (Sec.
21.2.1)
Reduce
government cost
for newspaper
advertisements
Low
participation of
bidders in pre-
bid
a. Allow conduct of pre-bid via video-
conferencing, webcasting
b. Allow all prospective bidders
(even those who did not buy bid
docs) to raise queries (Sec. 22)
Clarifies
procurement
requirements;
Reduce
disqualification;
Increase
competition

42
Disqualificati
on of
Bidders/
Failure of
Biddings due
to
documentary
requirements
Low turn-out
of bidders
a. Mandatory registration under
Platinum Membership (Sec. 8.5.2,
25.2)
Per GPPB Circular No. 07-2017 which
took effect on 3 September 2017, the
mandatory requirement under Sec.
8.5.2 on the submission of PhilGEPS
Certificate of Registration and
Membership under Platinum
category for Competitive Bidding,
Limited Source Bidding and Two-
Failed Bidding has been deferred
until revoked by the GPPB.
Easier
eligibility check
Reduce
disqualification
of bidders/
failure of
biddings
Increase
competition

43
Disqualification
of Bidders/
Failure of
Biddings due to
documentary
requirements
Low turn-out of
bidders
b. Mayor’s permit:
- Allows submission of recently
expired mayor’s permit with
official receipt of application
for renewal of permit
- Allows equivalent document
for economic zones (Sec.
23.1(a)(ii), 24.1(a)(ii))
c. For goods procurement,
submission of a Credit Line, as
an alternative to NFCC (Sec.
23.1(a)(viii))
Easier
eligibility check
Reduce
disqualification
of bidders/
failure of
biddings
Increase
competition

44
Disqualificatio
n of Bidders/
Failure of
Biddings due
to
documentary
requirements
Low turn-out
of bidders
b. Mayor’s permit:
- Allows submission of recently
expired mayor’s permit with official
receipt of application for renewal of
permit
- Allows equivalent document for
economic zones (Sec. 23.1(a)(ii),
24.1(a)(ii))
c. For goods procurement, submission
of a Credit Line, as an alternative to
NFCC (Sec. 23.1(a)(viii))
Easier eligibility
check
Reduce
disqualification
of bidders/
failure of
biddings
Increase
competition

46
Disqualification
of
Bidders/Failure
of Biddings
due to
documentary
requirements
Low turn-out of
bidders
d. For goods and infrastructure projects,
fixing the NFCC’s K factor at 15,
regardless of contract duration (Sec.
23.4.1.4, 23.4.2.7)
e. For individual consultants not
registered as sole proprietors,
they can submit BIR Certificate of
Registration instead of DTI and
Mayor’s Permit (Sec. 24.1(a)(ii))
f. In consulting services, submission of
foreign bidders’ SEC Certificate of
Registration and/or PRC permit is
moved from eligibility to contract
award (Sec. 37.1.4(a)(iv))
Easier
eligibility check
Reduce
disqualification
of bidders/
failure of
biddings
Increase
competition

48
Strict rules on
marking/
sealing of
bids
Bid envelopes that are not properly
sealed and marked, as required in the
bidding documents, shall be
accepted, provided that the bidder or
its duly authorized representative shall
acknowledge such condition of the
bid as submitted. The BAC shall
assume no responsibility for the
misplacement of the contents of the
improperly sealed or marked bid, or for
its premature opening(Sec. 25.9)
Reduce
disqualification
of bidders

50
Bid Rigging/
Simulation of
bids;
a. BAC Secretariat shall notify in
writing all bidders whose bids it
has received through its PhilGEPS-
registered physical address or
official e-mail address (Sec. 25.7)
b. The BAC shall notify all other
bidders, in writing, of its
recommendation to HOPE of
award of contract to LCRB/HRRB
within 3 calendar days. (Sec.
37.1.1)
Ensure
transparency
and accurate
representation
of the bid
submission

52
Procurement
by Foreign
Service Posts
a. Exempts foreign bidders from the
mandatory PhilGEPS Certificate of
Registration (Sec. 25.2)
b. Winning bidder shall be required
to register (Registration Number
only) prior to contract signing.
(Section 37.1.4(a)(ii)
Encourage
participation of
foreign bidders
in the
procurement
by FSPs
Bid and
Performance
Securities
a. Allows the bidder to choose their
preferred form of bid security (Sec.
27.2)
b. Clarifies the required amount for Bid
Security and Performance
Security(Secs. 27.2 and 39.2)
Avoid undue
disqualification
of bidders who
posted more
than the
required
amount.

54
Bid and
Performance
Securities
a. Allows the bidder to choose their
preferred form of bid security
(Sec. 27.2)
b. Clarifies the required amount for Bid
Security and Performance
Security(Secs. 27.2 and 39.2)
Avoid undue
disqualification
of bidders who
posted more
than the
required
amount.

58
Difficulty in
procuring the
following:
-Media
services;
-Scientific,
academic
references,
works
- life-saving
equipment
-Legal services
-Artistic works
- Infra projects
with exclusive
technology
New Alternative Modality:
Section 53.6 Scientific, Scholarly or
Artistic Work, Exclusive Technology
and Media Services.
Efficiency in
procurement
considering
that only 1
supplier/contra
ctor could
provide the
needs of the
PE

60
Delay in
procurement
process due to
declaration of
holidays
Specific procurement activities
may be held on a Saturday, Sunday,
nonworking day or holiday: provided,
that the BAC, secretariat and TWG
members shall be available on such
date, and the appropriate
supplemental/bid bulletin is
issued and posted pursuant to the
posting requirements embodied in
section 22.5.3 of
this IRR.
(GPPB Resolution No. 21-2017)
Fast-track
procurement
activities

62
Issue/s Revision
The number
of quotation
that the BAC
has to obtain,
in order to
proceed with
the
negotiation
a. Shopping 52.1(a) and Emergency Procurement–
send at least 1 RFQ
b. Shopping 52.1(b) – send at least 3 RFQs, receive
at least 3 quotations
c. Two Failed Biddings, Small Value Procurement,
Lease of Real Property/Venue - send at least 3
RFQs, receive at least 1 quotation will suffice

Streamline Bidding Process
Use of pump prices for the procurement of non-bulk petroleum, oil and lubricant
products
Use of Digital Signature on all procurement documents
Use of Videoconferencing, Webcasting and Similar Technology in the Conduct
of Meetings and Determination of Quorum by the BAC

Responsive Bidding Rules
Rules for Sangguniang Kabataan Procurement
Removal on the ceiling of maximum percentage of liquidated damage

BIDDING PROCEDURES AND UPDATES.pptx

BIDDING PROCEDURES AND UPDATES.pptx

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