republic act no. 9184. background o harmonization alignment with international best practices o...

Republic Act No. 9184

Background

o Harmonization• Alignment with International Best Practices

o Application of Domestic Preference• AO 227, Flag Law

o Learning from Experience• Concerns raised by procuring entities, bidders and

observers

Scope and Application (Sec. 4)

o All domestically-funded procurement activities

o All foreign-funded procurement activities, unless otherwise stated in the treaty, international or executive agreement• But procurement funded through foreign grants are excluded

o GOP negotiating panels shall:• Adopt as default position, use of the IRR or selection thru

competitive bidding• Explain in writing if treaty, international or executive

agreement states otherwise

o IRR now includes definition of treaty, international or executive agreements, foreign loans & grants

Procurement Planning (Sec. 7)

End UserBudget Office

BAC Sec / BAC

Approving Authority

Prepare PPMP

Evaluate PPMP and include in

budget proposal

Review and consolidate

into APP

Approve GAA/

Corporate Budget/

Ordinance

Revise PPMPFinalize

procurement mode

HOPE or 2nd in rank

approves APP

1

2

Bids and Awards Committee (Sec. 11)

o Alternate BAC member allowed:• Same qualification and term as principal• Attend meetings and receive honoraria• Accountability limited to their acts and decisions

o Honoraria for BAC Secretariat subject to DBM Rules

Observers (Sec. 13)

o Allows observers from cooperatives

o Requires 3 days’ prior written notice for invitation of observers

o Requires observers to inhibit in case of actual or potential conflict of interest

o Access to documents upon signing of a confidentiality agreement

Advertising of Invitation to Bid (Sec. 21)

o IAEB to Invitation to Bid (goods and infra) or Request for Expression of Interest (consulting)

o Includes posting in the website prescribed by the foreign government/foreign or international financing institution, for foreign-funded procurement

Pre-Bid Conference (Sec. 22)

o May be extended up to 30 cd before bid submission• Method, nature and complexity of contract• International participation is more advantageous

o Option to limit participation in pre-bid conference to those bidders who purchased bid documents

Eligibility Requirements (Secs. 23 & 24)

o Reduced to 5-6 documents

o Others to be submitted during –• Post-qualification• Prior to Award of Contract

Eligibility Requirements (Secs. 23 & 24)GOODS INFRASTRUCTURE CONSULTING

Class A Documents

1. DTI/SEC/CDA Registration



2. Mayor’s permit 2. Mayor’s permit 2. Mayor’s permit

3. Statement of ongoing & completed contracts



4. Audited financial statement



5. NFCC or CLC 5. NFCC or CLC

6. PCAB license and registration

5. Statement on nationality and professional eligibility (includes CV)

Class B Document

JVA or notarized statement from the partners that they will enter into joint venture if awarded the contract

Eligibility Requirements (Secs. 23-24)

o Class “A” Documents• Legal, Technical, and Financial

o Class “B” Documents:• 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

o If foreign bidder –• Submit equivalent documents issued by country• Accompanied by English translation certified by

appropriate embassy or consulate in the Philippines

Eligibility Requirements (Secs. 23 & 24)

o Registry System• Manual or electronic• Class “A” documents (legal, technical, & financial) • Maintained current and updated• Certification in lieu of eligibility documents

o Letter of Intent/Application for eligibility or updates• Deadline stated in bid documents

• Not later than date of bid submission

• Documents submitted after shall not be considered

Eligibility Criteria (Secs. 23 & 24)

o Defines foreign eligible bidders

o Government corporate entities eligible only if –• Legally and financially autonomous• Operate under commercial law• Not dependent agencies of GOP or procuring entity

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

Eligibility Criteria (Goods - Single Largest Completed Contract)

Eligibility Criteria (Infra - Single Largest Completed Contract)

o Track record: 50% of the ABC

o For foreign funded procurement, a different track record may be agreed upon

Submission and Receipt of Bids (Sec. 25)

o Two-envelope system • 1st Envelope – Eligibility Documents and Technical

Proposal• 2nd Envelope – Financial Proposal

o Date of submission should not be later than the following period from the last day of posting of the Invitation to BidCategory Maximum Period (cd)

Goods 45

Infra (50M and below) 50

Infra (above 50M) 65

Consulting 75

Submission and Receipt of Bids (Sec. 25)

o Project related statements lumped into one document (Omnibus Sworn Statement)

o Harmonize with blacklists of recognized IFIs

Bid and Performance Securities (Secs. 27 & 39)

o Bidder has option to choose among acceptable forms of security

o Procuring entity may not limit options available to bidders

o In general, bank issued securities must be issued by a universal or commercial bank

• However, in biddings conducted by LGUs, securities may be issued by banks certified by BSP as authorized to issue said instruments

o Surety Bonds must be accompanied by certification from Insurance Commission that issuer is authorized to issue such security

Bid and Performance Securities (Secs. 27 & 39)

FORM OF SECURITY

AMOUNT

Bid Security (% = ABC)

Performance Security

(% = Contract Price)

a) Cash or cashier’s/manager’s check 2%

5% (Goods & Consulting) 10% (Infrastructure)b) Bank guarantee/draft or

Irrevocable LC

c) Surety bond callable upon demand

5% 30%

d) Combination of the foregoing

Proportionate to share of form with respect to the total amount of security

Ceiling for Bid Prices (Sec. 31)

o Enumerated conditions for application of ABC as ceiling for foreign-funded procurement

o Definition of ABC includes estimated contract cost in the case of foreign-funded procurement [Sec. 5(b)]

Failure of Bidding (Sec. 35)

o Mandatory review after each failed bidding

o Based on findings• Revise terms, conditions, specifications• Adjust ABC, subject to required approvals

o Rebid• Invite previous bidders

Post-qualification (Sec. 34)

o Submission of the ff documents:• Tax clearance• Latest income and business tax returns• Certificate of PhilGEPS registration• Other appropriate licenses and permits required by law

and stated in the Bidding Documents.

Notice of Award (Sec. 37)

o Conditioned on the following:• If joint venture, submission of JVA• If foreign-funded and stated in treaty, international or

executive agreement, PCAB License• Posting of Performance Security• Signing of Contract• If required, approvals by higher authority

Notice to Proceed (Sec. 37.4)

o Issued to the successful bidder together with the copy of the approved contract within 3 cd from date of approval

o For infrastructure projects with ABC of 50M and below, the maximum period is 2 cd

o Contract effectivity date should be provided in the NTP, which should not be later than 7 cd from its issuance

o BAC Secretariat should post a copy of the NTP and the approved contract in the PhilGEPS or PE’s website within 15 cd from issuance of NTP

Disclosure of Relations (Sec. 47)

o Relatives within the third civil degree of the following shall be disqualified:• Head of the procuring entity• Members of the BAC, Secretariat and TWG• Head of the end-user unit or project management office• Project consultants

Type Period FormPercentage of Contract

Price

Expendable 3 mos., unless earlier

consumed

Special bank guarantee or

Retention money

10%Non-expendable

1 year

Service None None None

Infrastructure 1 year Cash/LC 5%

Bank guarantee

10%

Surety bond 30%

Warranty Security (Sec. 62)

Alternative Methods of Procurement (Secs. 48 to 53)

o Alignment with international best practices• Recognized additional instances of Negotiated

Procurement (e.g., procurement from UN Agencies, Community Participation)

o Address concerns raised by stakeholders• Clearer rules on negotiated procurement due to 2-failed

bidding• Increase in thresholds• Lease of venue

Effectivityo 2 September 2009

• 30 days from publication in the Official Gazette (3 August 2009)

Transitoryo When was Invitation to Bid/Request for Expression of

Interest published?

Comments? Questions?

Dennis Lorne S. NacarioDeputy Executive DirectorGOVERNMENT PROCUREMENT POLICY BOARD – TECHNICAL SUPPORT OFFICE

Address: Unit 2506 Raffles Corporate Center, F. Ortigas Jr. Road, Ortigas Center, Pasig CityTelephone: (+632) 9006741 to 44Website: www.gppb.gov.phEmail: [email protected]