The document summarizes revisions made to the Implementing Rules and Regulations (IRR) of the Government Procurement Reform Act (R.A. 9184) regarding eligibility requirements, submission of bids, notice of award, domestic preference, warranty security, and liquidated damages. Key changes include: requiring additional eligibility documents; submitting technical and financial proposals for infrastructure projects at the same time; allowing 10% advance payment for goods supplied from abroad; and reducing warranty security period for infrastructure to 1 year.

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

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