revised implementing rules and regulations of republic act ... · revised implementing rules and...

REVISEDIMPLEMENTINGRULESANDREGULATIONSOFREPUBLICACTNO.9184,OTHERWISEKNOWNASTHEGOVERNMENTPROCUREMENTREFORMACT

RULEI-GENERALPROVISIONSRULEII–PROCUREMENTPLANNINGRULEIII–PROCUREMENTBYELECTRONICMEANSRULEIV–COMPETITIVEBIDDINGRULEV–BIDSANDAWARDSCOMMITTEERULEVI-PREPARATIONOFBIDDINGDOCUMENTSRULEVII–INVITATIONTOBIDRULEVIII–RECEIPTANDOPENINGOFBIDSRULEIX–BIDEVALUATIONRULEX–POST-QUALIFICATIONRULEXI–AWARD,IMPLEMENTATIONANDTERMINATIONOFTHECONTRACTRULEXII–DOMESTICANDFOREIGNPROCUREMENTRULEXIII–BIDDINGOFPROVINCIALPROJECTSRULEXIV–LEASEOFCOMPUTERS,COMMUNICATIONS,INFORMATIONANDOTHEREQUIPMENTRULEXV–DISCLOSUREOFRELATIONSRULEXVI–ALTERNATIVEMETHODSOFPROCUREMENTRULEXVII–PROTESTMECHANISMRULEXVIII–SETTLEMENTOFDISPUTESRULEXIX–CONTRACTPRICESANDWARRANTIESRULEXX–THEGOVERNMENTPROCUREMENTPOLICYBOARDRULEXXI–PENALCLAUSERULEXXII–CIVILLIABILITYRULEXXIII–ADMINISTRATIVESANCTIONSRULEXXIV-LEGALASSISTANCEANDINDEMNIFICATIONOFBACMEMBERSRULEXXV-FINALPROVISIONS

RULEI-GENERALPROVISIONS

Section1.ShortTitleandPurposeSection2.DeclarationofPolicySection3.GoverningPrinciplesonGovernmentProcurementSection4.ScopeandApplicationoftheIRRSection5.DefinitionofTermsSection6.StandardizationofProcurementProcessandForms

<<-REVISEDIMPLEMENTINGRULES

Section1.ShortTitleandPurpose

ThisRevisedImplementingRulesandRegulations,hereinaftercalledtheIRR,ispromulgatedpursuanttoSection75ofRepublicActNo.(R.A.)9184,otherwiseknownasthe"GovernmentProcurementReformAct",forthepurposeofprescribingthenecessaryrulesandregulationsforthemodernization,standardization,andregulationoftheprocurementactivitiesoftheGovernmentofthePhilippines(GOP).(a)

RULEIGENERALPROVISIONS

Section2.DeclarationofPolicy

TheprovisionsofthisIRRareinlinewiththecommitmentoftheGOPtopromotegoodgovernanceanditsefforttoadheretotheprincipleoftransparency,accountability,equity,efficiency,andeconomyinitsprocurementprocess.ItisthepolicyoftheGOPthatprocurementofinfrastructureprojects,goodsandconsultingservicesshallbecompetitiveandtransparent,andthereforeshallgothroughpublicbidding,exceptasotherwiseprovidedinthisIRR.(a)


Section3.GoverningPrinciplesonGovernmentProcurement

TheprocurementoftheGOPshallbegovernedbytheseprinciples:

PrincipleofTransparencyPrincipleofCompetitivenessPrincipleofStreamlinedPrincipleofSystemofAccountabilityPrincipleofPublicMonitoring


a)Transparencyintheprocurementprocessandintheimplementationofprocurementcontractsthroughwidedisseminationofbidopportunitiesandparticipationofpertinentnon-governmentorganizations.

Section3

b)Competitivenessbyextendingequalopportunitytoenableprivatecontractingpartieswhoareeligibleandqualifiedtoparticipateinpublicbidding.

Section3

c)Streamlinedprocurementprocessthatwilluniformlyapplytoallgovernmentprocurement.Theprocurementprocessshallbesimpleandmadeadaptabletoadvancesinmoderntechnologyinordertoensureaneffectiveandefficientmethod.

Section3

d)SystemofaccountabilitywhereboththepublicofficialsdirectlyorindirectlyinvolvedintheprocurementprocessaswellasintheimplementationofprocurementcontractsandtheprivatepartiesthatdealwithGOPare,whenwarrantedbycircumstances,investigatedandheldliablefortheiractionsrelativethereto.

Section3

e)PublicmonitoringoftheprocurementprocessandtheimplementationofawardedcontractswiththeendinviewofguaranteeingthatthesecontractsareawardedpursuanttotheprovisionsoftheActandthisIRR,andthatallthesecontractsareperformedstrictlyaccordingtospecifications.

Section3

Section4.ScopeandApplicationoftheIRR

4.1.ThisIRRshallapplytoallprocurement4.2.AnyTreatyorInternationalorExecutiveAgreement4.3.UnlesstheTreatyorInternationalorExecutiveAgreement4.4.ThisIRRshallnotapply


4.1ThisIRRshallapplytoallprocurementofanybranch,agency,department,bureau,office,orinstrumentalityoftheGOP,includinggovernment-ownedand/or-controlledcorporations(GOCCs),governmentfinancialinstitutions(GFIs),stateuniversitiesandcolleges(SUCs),andlocalgovernmentunits(LGUs).(a)


4.2.AnyTreatyorInternationalorExecutiveAgreementtowhichtheGOPisasignatoryaffectingthesubjectmatteroftheActandthisIRRshallbeobserved.IncaseofconflictbetweenthetermsoftheTreatyorInternationalorExecutiveAgreementandthisIRR,theformershallprevail.(a)


4.3.UnlesstheTreatyorInternationalorExecutiveAgreementexpresslyprovidesuseofforeigngovernment/foreignorinternationalfinancinginstitutionprocurementproceduresandguidelines,thisIRRshallapplytoForeign-fundedProcurementforgoods,infrastructureprojects,andconsultingservicesbytheGOP.ConsistentwiththepoliciesandprinciplessetforthinSections2and3ofthisIRR,theGOPnegotiatingpanelsshalladopt,asitsdefaultposition,useofthisIRR,orattheveryleast,selectionthroughcompetitivebidding,inallForeign-fundedProcurement.IftheTreatyorInternationalorExecutiveAgreementstatesotherwise,thenthenegotiatingpanelsshallexplaininwritingthereasonstherefor.(n)


4.4.ThisIRRshallnotapplytothefollowingactivities:a)Procurementforgoodsb)Acquisitionofrealpropertyc)Public-Privatesector


Section5.DefinitionofTerms

ForpurposesofthisIRR,thefollowingtermsorwordsandphrasesshallmeanorbeunderstoodasfollows:

Act.ReferstoR.A.9184ApprovedBudgetfortheContractBACBidBidderBiddingDocumentsCommon-UseSuppliesCompetitiveBiddingConsultingServicesDomesticBidderDomesticEntityExecutiveAgreementsExpendableSuppliesForeignBidForeign-fundedProcurementForeignGrantsForeignLoansGoodsGPPBHeadoftheProcuringEntityInfrastructureProjectsInternationalAgreementNon-expendableSuppliesPhilGEPSPhilippineNationalPortalProcurementProcuringEntityTreatiesUniversalorCommercialBanks


Section6.StandardizationofProcurementProcessandForms

6.1.Tosystematizetheprocurementprocess,avoidconfusionandensuretransparency,theGPPBshallpursuethedevelopmentandapprovalofgenericprocurementmanualsandstandardbiddingdocumentsandformsincludingthosetobeusedformajorprocurementlikedrugsandtextbooks.

6.2.OnceissuedbytheGPPB,theuseoftheGenericProcurementManuals(GPMs),PhilippineBiddingDocuments(PBDs),andotherstandardformsshallbemandatoryuponallProcuringEntities.However,whenevernecessary,tosuittheparticularneedsoftheprocuringentity,modificationsmaybemade,particularlyformajorandspecializedprocurement,subjecttotheapprovaloftheGPPB.

RULEIGENERALPROVISIONS

RULEII–PROCUREMENTPLANNING

Section7.ProcurementPlanningandBudgetingLinkage



7.1.Allprocurementshallbewithintheapprovedbudget7.2.Noprocurementshallbeundertaken7.3.TheAPPshallbeformulatedandrevised7.4.UpdatingoftheindividualPPMPs7.5.TheABCasreflectedintheAPPorPPMP

RULEII-PROCUREMENTPLANNING

7.1.Allprocurementshallbewithintheapprovedbudgetoftheprocuringentityandshouldbemeticulouslyandjudiciouslyplannedbytheprocuringentity.Consistentwithgovernmentfiscaldisciplinemeasures,onlythoseconsideredcrucialtotheefficientdischargeofgovernmentalfunctionsshallbeincludedintheAnnualProcurementPlan(APP).ForpurposesofthisIRR,aprocurementprojectshallbeconsideredcrucialtotheefficientdischargeofgovernmentalfunctionsifitisrequiredfortheday-to-dayoperationsorisinpursuitoftheprincipalmandateoftheprocuringentityconcerned.TheAPPshallincludeprovisionsforforeseeableemergenciesbasedonhistoricalrecords.Inthecaseofinfrastructureprojects,theAPPshallconsidertheappropriatetiming/phasingofrelatedprojectactivities,suchas,engineeringdesignandacquisitionofrightofway,toreduce/lowerprojectcosts.(a)


7.2.NoprocurementshallbeundertakenunlessitisinaccordancewiththeapprovedAPPoftheprocuringentity.TheAPPshallbeartheapprovaloftheHeadoftheProcuringEntityorsecond-rankingofficialdesignatedbytheHeadoftheProcuringEntitytoactonhisbehalf,andmustbeconsistentwithitsdulyapprovedyearlybudget.(a)


7.3.TheAPPshallbeformulatedandrevisedonlyinaccordancewiththefollowingguidelines:7.3.1.Atthestartofeverybudgetperiod7.3.2.Theend-userunitsoftheprocuringentity7.3.3.ThePPMP7.3.4.Afterthebudgetproposal7.3.5.AssoonastheGAA,corporatebudget,orappropriationordinance


7.4.UpdatingoftheindividualPPMPsandtheconsolidatedAPPforeachprocuringentityshallbeundertakeneverysix(6)monthsorasoftenasmayberequiredbytheHeadoftheProcuringEntity.TheupdatingofthePPMPsshallbetheresponsibilityoftherespectiveend-userunitsoftheProcuringEntities,whiletheconsolidationofthesePPMPsintoanAPPshallbelodgedwiththeBACSecretariat,subjecttoapprovaloftheHeadoftheProcuringEntity.(a)


7.5.TheABCasreflectedintheAPPorPPMPshallbeatalltimesconsistentwiththeappropriationsfortheprojectauthorizedintheGAA,continuing,andautomaticappropriations,thecorporatebudget,andtheappropriationordinance,asthecasemaybe.ForNGAs,tofacilitatetheimmediateimplementationofprojectsevenpendingapprovaloftheGAA,theABCshallbebasedonthebudgetlevelsundertheproposednationalbudgetsubmittedbythePresidenttoCongress.(a)


RULEIII–PROCUREMENTBYELECTRONICMEANS

Section8.ProcurementbyElectronicMeansandthePhilippineGovernmentElectronicProcurementSystem(PhilGEPS)Section9.Security,IntegrityandConfidentiality


Section8.ProcurementbyElectronicMeansandthePhilippineGovernmentElectronicProcurementSystem(PhilGEPS)

8.1.ThePhilGEPS8.2.FeaturesofthePhilGEPS8.3.UseofthePhilGEPS8.4.Pre-bidConferencesandNoticesunderthePhilGEPS8.5.Registration,EligibilityRequirementsandSubmissionofBidsunderthePhilGEPS8.6.OpeningofBidsunderthePhilGEPS8.7.Observers

RULEIII-PROCUREMENTBYELECTRONICMEANS

8.1.ThePhilGEPS

8.1.1.Topromotetransparencyandefficiency8.1.2.Totakeadvantageofthesignificantbuilt-inefficienciesofthePhilGEPS8.1.3.TheGPPB


8.2.FeaturesofthePhilGEPS

8.2.1.TheElectronicBulletinBoard8.2.2.RegistryofManufacturers,Suppliers,Distributors,ContractorsandConsultants8.2.3.TheElectronicCatalogue8.2.4.AdditionalFeatures


8.3.UseofthePhilGEPS

8.3.1.AllProcuringEntities8.3.2.Therulesandregulations


8.4.Pre-bidConferencesandNoticesunderthePhilGEPS

8.4.1.Pre-bidconferences8.4.2.Requestsforclarification8.4.3.TheSupplemental/BidBulletins


8.5.Registration,EligibilityRequirementsandSubmissionofBidsunderthePhilGEPS

8.5.1.Toensurethewidestdissemination8.5.2.Eligibilityrequirements8.5.3.Registeredbidders8.5.4.ThePhilGEPS8.5.5.Uponreceiptofabid


8.6.OpeningofBidsunderthePhilGEPS

8.6.1.TheBAC8.6.2.Onlythefinancialproposalsofbidders8.6.3.Anupdateofallprocurementcontracts8.6.4.Withoutprejudicetocriminalprosecution8.6.5.Whenanyoftheforegoingacts


8.7.Observers

ThePhilGEPSshallallowobservers,dulyauthorizedbytheBAC,tomonitortheprocurementproceedingson-line:Provided,however,ThatsuchobserversdonothaveanydirectorindirectinterestinthecontracttobebidasprescribedinSection13ofthisIRR.(a)


Section9.Security,IntegrityandConfidentiality

ThePhilGEPSshallincorporatethefollowingfeatures,whichshallbeperiodicallyupgradedtokeepabreastwithdevelopmentsintechnology:

a)Securityb)Integrityc)Confidentialityd)AuditTraile)PerformanceTracking

RULEIII-PROCUREMENTBYELECTRONICMEANS

RULEIV–COMPETITIVEBIDDING

Section10.CompetitiveBidding


Section10.CompetitiveBidding

Allprocurementshallbedonethroughcompetitivebidding,exceptasprovidedinRuleXVIofthisIRR.

RULEIV-COMPETITIVEBIDDING

RULEV–BIDSANDAWARDSCOMMITTEE

Section11.TheBACanditsCompositionSection12.FunctionsoftheBACSection13.ObserversSection14.BACSecretariatSection15.HonorariaofBAC,BACSecretariat,andTWGMembersSection16.ProfessionalizationofBAC,TWGMembersandProcurementUnits


Section11.TheBACanditsComposition

11.1.BACStructure11.2.BACComposition

RULEV-BIDSANDAWARDSCOMMITTEE

11.1.BACStructure

11.1.1.Eachprocuringentity11.1.2.However,toexpeditetheprocurementprocess


11.2.BACComposition

11.2.1.TheHeadoftheProcuringEntity11.2.2.TheBACforNGAs11.2.3.TheBACforLocalGovernmentUnits11.2.4.TheHeadoftheProcuringEntitymaydesignatealternatememberstotheBAC11.2.5.InnocaseshalltheHeadoftheProcuringEntity11.2.6.Unlesssoonerremovedforacause


Section12.FunctionsoftheBAC

12.1.TheBACshallhavethefollowingfunctions12.2.TheBACshallberesponsibleforensuring12.3.Quorum12.4.Meetings


12.1.TheBACshallhavethefollowingfunctions:(a)advertiseand/orposttheinvitationtobid/requestforexpressionsofinterest;(b)conductpre-procurementandpre-bidconferences;(c)determinetheeligibilityofprospectivebidders;(d)receivebids;(e)conducttheevaluationofbids;(f)undertakepost-qualificationproceedings;(g)resolvemotionsforreconsideration;(h)recommendawardofcontractstotheHeadoftheProcuringEntityorhisdulyauthorizedrepresentative:(i)recommendtheimpositionofsanctionsinaccordancewithRuleXXIII;(j)recommendtotheHeadoftheProcuringEntitytheuseofAlternativeMethodsofProcurementasprovidedforinRuleXVIhereof;and(k)performsuchotherrelatedfunctionsasmaybenecessary,includingthecreationofaTechnicalWorkingGroup(TWG)fromapooloftechnical,financial,and/orlegalexpertstoassistintheprocurementprocess,particularlyintheeligibilityscreening,evaluationofbids,andpost-qualification.(a)


12.2.TheBACshallberesponsibleforensuringthattheprocuringentityabidesbythestandardssetforthbytheActandthisIRR,anditshallprepareaprocurementmonitoringreportintheformprescribedbytheGPPB.TheprocurementmonitoringreportshallcoverallprocurementactivitiesspecifiedintheAPP,whetherongoingandcompleted,fromtheholdingofthepre-procurementconferencetotheissuanceofnoticeofawardandtheapprovalofthecontract,includingthestandardandactualtimeforeachmajorprocurementactivity.TheprocurementmonitoringreportshallbeapprovedandsubmittedbytheHeadoftheProcuringEntitytotheGPPBinprintedandelectronicformatwithinfourteen(14)calendardaysaftertheendofeachsemester.(a)


12.3.QuorumAmajorityofthetotalBACcompositionasdesignatedbytheHeadoftheProcuringEntityshallconstituteaquorumforthetransactionofbusiness,providedthatthepresenceoftheChairmanorVice-Chairmanshallberequired.


12.4.MeetingsTheChairmanor,inhisabsence,theVice-Chairman,shallpresideatallmeetingsoftheBAC.ThedecisionofatleastamajorityofthosepresentatameetingatwhichthereisquorumshallbevalidandbindingasanactoftheBAC:Provided,however,ThattheChairmanor,inhisabsence,theVice-Chairman,shallvoteonlyincaseofatie.(a)


Section13.Observers

13.1.Toenhancethetransparencyoftheprocess13.2.Theobserversshallcomefromanorganizationdulyregistered13.3.Observersshallbeinvitedatleastthree(3)calendardays13.4.Theobserversshallhavethefollowingresponsibilities13.5.Observersshallbeallowedaccesstothefollowingdocuments


13.1.Toenhancethetransparencyoftheprocess,theBACshall,inallstagesoftheprocurementprocess,invite,inadditiontotherepresentativeoftheCOA,atleasttwo(2)observers,whoshallnothavetherighttovote,tositinitsproceedingswhere:a)Atleastone(1)shallcomefromadulyrecognizedprivategroupinasectorordisciplinerelevanttotheprocurementathand,forexample:

i)Forinfrastructureprojectsii)Forgoodsiii)Forconsultingservices

b)Theotherobservershallcomefromanon-governmentorganization(NGO).(a)

Section13.Observers

13.2.TheobserversshallcomefromanorganizationdulyregisteredwiththeSecuritiesandExchangeCommission(SEC)ortheCooperativeDevelopmentAuthority(CDA),andshouldmeetthefollowingcriteria:a)Knowledge,experienceorexpertiseinprocurementorinthesubjectmatterofthecontracttobebid;b)Absenceofactualorpotentialconflictofinterestinthecontracttobebid;andc)AnyotherrelevantcriteriathatmaybedeterminedbytheBAC.(a)

Section13.Observers

13.3.Observersshallbeinvitedatleastthree(3)calendardaysbeforethedateoftheprocurementstage/activity.TheabsenceofobserverswillnotnullifytheBACproceedings,providedthattheyhavebeendulyinvitedinwriting.(a)

Section13.Observers

13.4.Theobserversshallhavethefollowingresponsibilities:a)TopreparethereporteitherjointlyorseparatelyindicatingtheirobservationsmadeontheprocurementactivitiesconductedbytheBACforsubmissiontotheHeadoftheProcuringEntity,copyfurnishedtheBACChairman.ThereportshallassesstheextentoftheBAC'scompliancewiththeprovisionsofthisIRRandareasofimprovementintheBAC'sproceedings;

b)TosubmittheirreporttotheprocuringentityandfurnishacopytotheGPPBandOfficeoftheOmbudsman/ResidentOmbudsman.Ifnoreportissubmittedbytheobserver,thenitisunderstoodthatthebiddingactivityconductedbytheBACfollowedthecorrectprocedure;and

c)Toimmediatelyinhibitandnotifyinwritingtheprocuringentityconcernedofanyactualorpotentialinterestinthecontracttobebid.(a)

Section13.Observers

13.5.Observersshallbeallowedaccesstothefollowingdocumentsupontheirrequest,subjecttosigningofaconfidentialityagreement:(a)minutesofBACmeetings;(b)abstractofBids;(c)post-qualificationsummaryreport;(d)APPandrelatedPPMP;and(e)openedproposals.(a)

Section13.Observers

Section14.BACSecretariat

14.1.TheHeadoftheProcuringEntity14.2.TheheadoftheSecretariatincentraloffices14.3.Toexpeditetheprocurementprocess


14.1.TheHeadoftheProcuringEntityshallcreateaSecretariatwhichwillserveasthemainsupportunitoftheBAC.AnexistingorganicofficewithintheprocuringentitymayalsobedesignatedtoserveasSecretariat.However,tostrengthenandpromotetheprofessionalizationoftheorganizations'procuringunit,theHeadoftheProcuringEntitymaycreateprocurementunitsthatmayserveconcurrentlyasBACSecretariatinaccordancewiththeguidelinesissuedbyDBM.TheSecretariatshallhavethefollowingfunctionsandresponsibilities:a)ProvideadministrativesupporttotheBAC;

b)OrganizeandmakeallnecessaryarrangementsforBACmeetingsandconferences;

c)PrepareminutesofmeetingsandresolutionsoftheBAC;

d)Takecustodyofprocurementdocumentsandotherrecords;

e)ManagethesaleanddistributionofBiddingDocumentstointerestedbidders;

f)Advertiseand/orpostbiddingopportunities,includingBiddingDocuments,andnoticesofawards;

g)Assistinmanagingtheprocurementprocesses;

h)Monitorprocurementactivitiesandmilestonesforproperreportingtorelevantagencieswhenrequired;

i)ConsolidatePPMPsfromvariousunitsoftheprocuringentitytomakethemavailableforreviewasindicatedinSection7ofthisIRR;and

j)ActasthecentralchannelofcommunicationsfortheBACwithendusers,PMOs,otherunitsofthelineagency,othergovernmentagencies,providersofgoods,infrastructureprojects,andconsultingservices,observers,andthegeneralpublic.(a)


14.2.TheheadoftheSecretariatincentralofficesshallbeatleastafifthrankingpermanentemployeeor,ifnotavailable,apermanentofficialofthenextlowerrank;orshallbeatleastathirdrankingpermanentemployeeinbureaus,regionalofficesandsub-regional/districtoffices,orifnotavailable,apermanentemployeeofthenextlowerrank.Inadditiontointegrity,headsofProcuringEntitiesshallconsiderprocurementproficiencyasafactorindesignatingtheheadoftheSecretariatandProcurementUnit.(a)


14.3.Toexpeditetheprocurementprocess,theHeadoftheProcuringEntityshallensurethatthemembersoftheBACandTWGshallgiveutmostprioritytoBACassignmentsoverallotherdutiesandresponsibilities,untiltherequirementsforthesaidassignmentsathandarecompleted.


Section15.HonorariaofBAC,BACSecretariat,andTWGMembers

TheprocuringentitymaygrantpaymentofhonorariatotheBACmembersinanamountnottoexceedtwentyfivepercent(25%)oftheirrespectivebasicmonthlysalarysubjecttoavailabilityoffunds.Forthispurpose,theDBMshallpromulgatethenecessaryguidelines.TheprocuringentitymayalsograntpaymentofhonorariatotheBACSecretariatandtheTWGmembers,subjecttotherelevantrulesoftheDBM.(a)


Section16.ProfessionalizationofBAC,TWGMembersandProcurementUnits

TheGPPBshallestablishasustainedtrainingprogramtodevelopthecapabilityoftheBACs,BACSecretariats,TWGs,andtheProcurementUnitsofProcuringEntities,andprofessionalizethesame.


RULEVI-PREPARATIONOFBIDDINGDOCUMENTS

Section17.FormandContentsofBiddingDocumentsSection18.ReferencetoBrandNamesSection19.AccesstoInformation


Section17.FormandContentsofBiddingDocuments

17.1.TheBiddingDocuments17.2.ThespecificationsandothertermsintheBiddingDocuments17.3.Toprovideprospectivebiddersampletime17.4.BiddersmaybeaskedtopayfortheBiddingDocuments17.5.Theprocuringentity17.6.DetailedEngineeringfortheProcurementofInfrastructure


17.1.TheBiddingDocumentsshallbepreparedbytheprocuringentityfollowingthestandardformsandmanualsprescribedbytheGPPB.TheBiddingDocumentsshallincludethefollowing:a)ApprovedBudgetfortheContract;

b)InvitationtoBid/RequestforExpressionofInterest;

c)EligibilityRequirements;

d)InstructionstoBidders,includingscopeofbid,documentscomprisingthebid,criteriaforeligibility,bidevaluationmethodology/criteriainaccordancewiththeAct,andpost-qualification,aswellasthedate,timeandplaceofthepre-bidconference(whereapplicable),submissionofbidsandopeningofbids;

e)TermsofReference(TOR),forconsultingservices;

f)Scopeofwork,whereapplicable;

g)Plans/DrawingsandTechnicalSpecifications;

h)FormofBid,PriceForm,andListofGoodsorBillofQuantities;i)DeliveryTimeorCompletionSchedule;

j)Form,Amount,andValidityPeriodofBidSecurity;

k)Form,Amount,andValidityofPerformanceSecurityandWarranty;and

l)FormofContractandGeneralandSpecialConditionsofContract.(a)


17.2.ThespecificationsandothertermsintheBiddingDocumentsshallreflectminimumrequirementsorspecificationsrequiredtomeettheneedsoftheprocuringentityinclearandunambiguousterms.(a)


17.3.ToprovideprospectivebiddersampletimetoexaminetheBiddingDocumentsandtopreparetheirrespectivebids,theconcernedBACshallmaketheBiddingDocumentsforthecontracttobebidavailableforthefollowingperiod:a)Fortheprocurementofgoodsandinfrastructureprojects,fromthetimetheInvitationtoBidisfirstadvertised/posteduntilthedeadlineforthesubmissionandreceiptofbids.

b)Fortheprocurementofconsultingservices,eligibilitydocumentsshallbemadeavailablefromthetimetheRequestforExpressionofInterestisfirstadvertised/posteduntilthedeadlinefortheeligibilitycheck,andtheBiddingDocuments,fromthedeterminationoftheshortlistuntilthedeadlineforthesubmissionandreceiptofbids.(21a)


17.4.BiddersmaybeaskedtopayfortheBiddingDocumentstorecoverthecostofitspreparationanddevelopment.TheBACshallissuetheBiddingDocumentsuponpaymentofthecorrespondingcostthereoftothecollecting/disbursingofficeroftheprocuringentityconcerned.(a)


17.5.TheprocuringentityshallalsoposttheBiddingDocumentsatitswebsiteandatthePhilGEPSwebsitefromthetimethattheInvitationtoBid/RequestforExpressionofInterestisadvertised.ProspectivebiddersmaydownloadtheBiddingDocumentsfromanyofthesaidwebsites;Providedthat,biddersshallpaythefeefortheBiddingDocumentsuponsubmissionoftheirBids.(n)


17.6.DetailedEngineeringfortheProcurementofInfrastructureProjectsNobiddingandawardofcontractforinfrastructureprojectsshallbemadeunlessthedetailedengineeringinvestigations,surveysanddesigns,includingtheacquisitionoftheROW,fortheprojecthavebeensufficientlycarriedoutanddulyapprovedinaccordancewiththestandardsandspecificationsprescribedbytheHeadoftheProcuringEntityconcernedorhisdulyauthorizedrepresentative,andinaccordancewiththeprovisionsofAnnex"A"ofthisIRR.Theexceptionisdesignandbuildscheme,whereinthebiddersshallbeallowedtosubmititsdetailedengineeringdesignsaspartofitsbid.TheproceduresfortheprocurementandcontractimplementationofinfrastructureprojectsusingadesignandbuildschemeshallbeinaccordancewiththeprovisionsofofAnnex"G"ofthisIRR.(a)


Section18.ReferencetoBrandNames

Specificationsfortheprocurementofgoodsshallbebasedonrelevantcharacteristicsand/orperformancerequirements.Referencetobrandnamesshallnotbeallowed.


Section19.AccesstoInformation

InallstagesofthepreparationoftheBiddingDocuments,theprocuringentityshallensureequalaccesstoinformation.Priortotheirofficialreleasetoprospectivebidders,noaspectoftheBiddingDocumentsshallbedivulgedorreleasedtoanyprospectivebidderorpersonhavingdirectorindirectinterestintheprojecttobeprocured,ortoanyparty,exceptthoseofficiallyauthorizedinthehandlingofthedocuments.


RULEVII–INVITATIONTOBID

Section20.Pre-procurementConferenceSection21.AdvertisingandContentsoftheInvitationtoBid/RequestforExpressionofInterestSection22.Pre-bidConference


Section20.Pre-procurementConference

20.1.Priortotheadvertisement20.2.Theholdingofapre-procurementconference

RULEVII-INVITATIONTOBID

20.1.PriortotheadvertisementortheissuanceoftheInvitationtoBid/RequestforExpressionofInterestforeachprocurementundertakenthroughapublicbidding,theBAC,throughitsSecretariat,shallcallforapre-procurementconference.Thepre-procurementconferenceshallbeattendedbytheBAC,theSecretariat,theunitorofficials,includingconsultantshiredbytheprocuringentity,whopreparedtheBiddingDocumentsandthedraftInvitationtoBid/RequestforExpressionofInterestforeachprocurement.Duringthisconference,theparticipants,ledbytheBAC,shall:a)Confirmthedescriptionandscopeofthecontract,theABC,andcontractduration.

b)Ensurethattheprocurementisinaccordancewiththeprojectandannualprocurementplans;

c)Determinethereadinessoftheprocurementathand,including,amongotheraspects,thefollowing:

i)availabilityofappropriationsii)completenessoftheBiddingDocumentsiii)completionofthedetailedengineeringiv)confirmationoftheavailabilityofROW

d)Review,modifyandagreeonthecriteriaforeligibilityscreening,evaluation,andpost-qualification;e)Reviewandadopttheprocurementschedule,includingdeadlinesandtimeframes,forthedifferentactivities;andf)Reiterateandemphasizetheimportanceofconfidentiality,inaccordancewithSection19ofthisIRR,andtheapplicablesanctionsandpenalties,aswellasagreeonmeasurestoensurecompliancewiththeforegoing.(a)


20.2.Theholdingofapre-procurementconferencemaynotberequiredforsmallprocurements,i.e.,procurementofgoodscostingTwoMillionPesos(P2,000,000.00)andbelow,procurementofinfrastructureprojectscostingFiveMillionPesos(P5,000,000.00)andbelow,andprocurementofconsultingservicescostingOneMillionPesos(P1,000,000.00)andbelow.


Section21.AdvertisingandContentsoftheInvitationtoBid/RequestforExpressionofInterest

21.1.ContentsoftheInvitationtoBid/Request21.2.AdvertisingandPostingoftheInvitation


21.1.ContentsoftheInvitationtoBid/RequestforExpressionofInterestTheInvitationtoBid/RequestforExpressionofInterestshallprovideprospectivebiddersthefollowinginformation,amongothers:a)Fortheprocurementof:

i)Goods

ii)Infrastructureprojects

iii)Consultingservices

b)Ageneralstatementonthecriteriatobeusedbytheprocuringentityfortheeligibilitycheck,theshortlistingofprospectivebidders,inthecaseoftheprocurementofconsultingservices,theexaminationandevaluationofbids,post-qualification,andaward;

c)Thedate,timeandplaceofthedeadlineforthesubmissionandreceiptoftheeligibilityrequirements,thepre-bidconferenceifany,thesubmissionandreceiptofbids,andtheopeningofbids;

d)ABCtobebid;

e)Thesourceoffunding;

f)TheperiodofavailabilityoftheBiddingDocuments,theplacewheretheBiddingDocumentsmaybesecured,thewebsitewheretheBiddingDocumentsmaybedownloaded,and,whereapplicable,thepriceoftheBiddingDocuments;

g)Thecontractdurationordeliveryschedule;

h)Thename,address,telephonenumber,facsimilenumber,e-mailandwebsiteaddressesoftheconcernedprocuringentity,aswellasitsdesignatedcontactperson;and

i)Suchothernecessaryinformationdeemedrelevantbytheprocuringentity.


21.2.AdvertisingandPostingoftheInvitationtoBid/RequestforExpressionofInterest21.2.1.ExceptasotherwiseprovidedinSections21.2.2and54.221.2.2.AdvertisementoftheInvitationtoBid/Request


RULEVIIIRECEIPTANDOPENINGOFBIDS

Section23.EligibilityRequirementsfortheProcurementofGoodsandInfrastructureProjectsSection24.EligibilityRequirementsandShortListingforConsultingServicesSection25.SubmissionandReceiptofBidsSection26.ModificationandWithdrawalofBidsSection27.BidSecuritySection28.BidValiditySection29.BidOpening


Section22.Pre-bidConference

22.1.Forcontractstobebid22.2.Thepre-bidconferenceshallbeheldatleasttwelve(12)calendardays22.3.Thepre-bidconferenceshalldiscuss22.4.Theminutesofthepre-bidconference22.5.Supplemental/BidBulletins


22.1.ForcontractstobebidwithanapprovedbudgetofOneMillionPesos(P1,000,000.00)ormore,theBACshallconveneatleastone(1)pre-bidconferencetoclarifyand/orexplainanyoftherequirements,terms,conditions,andspecificationsstipulatedintheBiddingDocuments.ForcontractstobebidwithanapprovedbudgetoflessthanOneMillionPesos(P1,000,000),pre-bidconferencesmaybeconductedatthediscretionoftheBAC.SubjecttotheapprovaloftheBAC,apre-bidconferencemayalsobeconducteduponwrittenrequestofanyprospectivebidder.


22.2.Thepre-bidconferenceshallbeheldatleasttwelve(12)calendardaysbeforethedeadlineforthesubmissionandreceiptofbids.Iftheprocuringentitydeterminesthat,byreasonofthemethod,nature,orcomplexityofthecontracttobebidorwheninternationalparticipationwillbemoreadvantageoustotheGOP,alongerperiodforthepreparationofbidsisnecessary,thepre-bidconferenceshallbeheldatleastthirty(30)calendardaysbeforethedeadlineforthesubmissionandreceiptofbids.(a)


22.3.Thepre-bidconferenceshalldiscuss,amongotherthings,theeligibilityrequirementsandthetechnicalandfinancialcomponentsofthecontracttobebid.Attendanceofthebiddersshallnotbemandatory.However,onlythosewhohavepurchasedtheBiddingDocumentsshallbeallowedtoparticipateinthepre-bidconferenceandraiseorsubmitwrittenqueriesorclarifications.(a)


22.4.Theminutesofthepre-bidconferenceshallberecordedandmadeavailabletoallparticipantsnotlaterthanthree(3)calendardaysafterthepre-bidconference.Anystatementmadeatthepre-bidconferenceshallnotmodifythetermsoftheBiddingDocuments,unlesssuchstatementisspecificallyidentifiedinwritingasanamendmenttheretoandissuedasaSupplemental/BidBulletin.(a)


22.5.Supplemental/BidBulletins22.5.1.Requestsforclarification(s)22.5.2.Supplemental/BidBulletinsmaybeissuedupontheprocuringentity'sinitiative22.5.3.AnySupplemental/BidBulletinissuedbytheBAC


Section23.EligibilityRequirementsfortheProcurementofGoodsandInfrastructureProjects

23.1.Forpurposesofdeterminingtheeligibility23.2.SubjecttoSection37.1ofthisIRR23.3.Aprospectivebidder23.4.Tofacilitatedeterminationofeligibility23.5.EligibilityCriteria23.6.Governmentcorporateentities23.7.Notwithstandingtheeligibilityofaprospectivebidder

RULEVIII-RECEIPTANDOPENINGOFBIDS

23.1.ForpurposesofdeterminingtheeligibilityofbiddersusingthecriteriastatedinSection23.5ofthisIRR,onlythefollowingdocumentsshallberequiredbytheBAC,usingtheformsprescribedintheBiddingDocuments,:a)ClassADocumentsLegalDocuments

i)RegistrationcertificatefromSECii)Mayor spermitissuedbythecityormunicipalityiii)Statementoftheprospectivebidderiv)Inthecaseofprocurementofinfrastructureprojectsv)Theprospectivebidder sauditedfinancialstatementsvi)Theprospectivebidder scomputation

b)ClassBDocumentValidjointventureagreement(JVA),incasethejointventureisalreadyinexistence.IntheabsenceofaJVA,dulynotarizedstatementsfromallthepotentialjointventurepartnersstatingthattheywillenterintoandabidebytheprovisionsoftheJVAintheinstancethatthebidissuccessfulshallbeincludedinthebid.Failuretoenterintoajointventureintheeventofacontractawardshallbegroundfortheforfeitureofthebidsecurity.Eachpartnerofthejointventureshallsubmitthelegaleligibilitydocuments.Thesubmissionoftechnicalandfinancialeligibilitydocumentsbyanyofthejointventurepartnersconstitutescompliance.(a)


23.2.SubjecttoSection37.1ofthisIRR,inthecaseofforeignbidders,theforegoingeligibilityrequirementsunderClassADocumentsmaybesubstitutedbytheappropriateequivalentdocuments,ifany,issuedbythecountryoftheforeignbidderconcerned.Theeligibilityrequirementsorstatements,thebids,andallotherdocumentstobesubmittedtotheBACmustbeinEnglish.AtranslationofthedocumentsinEnglishcertifiedbytheappropriateembassyorconsulateinthePhilippinesmustaccompanytheeligibilityrequirementsunderClassAandBDocumentsiftheyareinotherforeignlanguage.(a)


23.3.AprospectivebiddermaybeallowedtosubmithiseligibilityrequirementselectronicallyinaccordancewithSection8.5ofthisIRR.(a)


23.4.Tofacilitatedeterminationofeligibility,theBACofaprocuringentitymaymaintainaregistrysystemusingthePhilGEPSoritsownmanualorelectronicsystemthatallowssubmissionand/orrecording/entryofeligibilityrequirementssimultaneouslywithregistration.(a)23.4.1.Theregistrysystem23.4.2.Abidderwhomaintainsacurrentandupdatedfile23.4.3.Iftheprocuringentitymaintainsaregistrysystem


23.5.EligibilityCriteria

23.5.1.Fortheprocurementofgoods:23.5.2.Fortheprocurementofinfrastructureprojects:


23.6.GovernmentcorporateentitiesmaybeeligibletoparticipateinCompetitiveBiddingonlyiftheycanestablishthatthey(a)arelegallyandfinanciallyautonomous,(b)operateundercommerciallaw,and(c)arenotdependentagenciesoftheGOPortheprocuringentity.TheGPPBshallpromulgatethenecessaryguidelinesforthisprovision.(n)


23.7.Notwithstandingtheeligibilityofaprospectivebidder,theprocuringentityconcernedreservestherighttoreviewthequalificationsofthebidderatanystageoftheprocurementprocessiftheprocuringentityhasreasonablegroundstobelievethatamisrepresentationhasbeenmadebythesaidprospectivebidder,orthattherehasbeenachangeintheprospectivebidder scapabilitytoundertaketheprojectfromthetimeitsubmitteditseligibilityrequirements.Shouldsuchreviewuncoveranymisrepresentationmadeintheeligibilityrequirements,statementsordocuments,oranychangesinthesituationoftheprospectivebidderwhichwillaffectthecapabilityofthebiddertoundertaketheprojectsothatitfailstheeligibilitycriteria,theprocuringentityshallconsiderthesaidprospectivebidderasineligibleandshalldisqualifyitfromobtaininganawardorcontract,inaccordancewithRulesXXI,XXII,andXXIIIofthisIRR.


Section24.EligibilityRequirementsandShortListingforConsultingServices

24.1.Thefollowingdocumentsshallbesubmitted24.2.Inthecaseofforeignconsultants24.3.EligibilityCriteria24.4.EligibilityCheckofProspectiveBidders24.5.ShortListingofProspectiveBidders24.6.Governmentcorporateentities24.7.Notwithstandingtheeligibilityofaconsultant


24.1.Thefollowingdocumentsshallbesubmitted,usingtheformsprescribedbytheBACintheBiddingDocuments,forpurposesofdeterminingeligibilityandshortlistingofprospectivebiddersinaccordancewithSections24.4and24.5ofthisIRR:a)ClassADocumentsLegalDocuments

i)RegistrationcertificatefromSECii)Mayor spermitissuedbythecityiii)Statementoftheprospectivebidderiv)Statementoftheconsultantv)Theconsultantsauditedfinancialstatements

b)ClassBDocumentValidjointventureagreement(JVA),incaseajointventureisalreadyinexistence.IntheabsenceofaJVA,dulynotarizedstatementsfromallthepotentialjointventurepartnersstatingthattheywillenterintoandabidebytheprovisionsoftheJVAintheinstancethatthebidissuccessful,shallbeincludedinthebid.Failuretoenterintoajointventureintheeventofacontractawardshallbegroundfortheforfeitureofthebidsecurity.Eachpartnerofthejointventureshallsubmitthelegaleligibilitydocuments.Thesubmissionoftechnicalandfinancialdocumentsbyanyofthejointventurepartnersconstitutescompliance.(a)


24.2.Inthecaseofforeignconsultants,theforegoingeligibilityrequirementsunderClassADocumentsmaybesubstitutedbytheappropriateequivalentdocuments,ifany,issuedbytheforeignconsultantscountry.Theeligibilityrequirementsorstatements,thebids,andallotherdocumentstobesubmittedtotheBACmustbeinEnglish.AtranslationofthedocumentsinEnglishcertifiedbytheappropriateembassyorconsulateinthePhilippinesmustaccompanytheeligibilityrequirementsunderClassAandBDocumentsiftheyareinotherforeignlanguage.(a)


24.3.EligibilityCriteria

24.3.1.Thefollowingpersons/entities24.3.2.Whenthetypesandfieldsofconsultingservices24.3.3.Inordertomanifesttrustandconfidence


24.4.EligibilityCheckofProspectiveBidders

24.4.1.Theeligibilityenvelopesofprospectivebidders24.4.2.Subjecttotheshortlistingofconsultants24.4.3.Tofacilitatedeterminationofeligibility


24.5.ShortListingofProspectiveBidders24.5.1.Withrespecttoaparticularcontract24.5.2.TheBACshalldrawuptheshortlistofconsultants24.5.3.TheBACshallspecifyintheRequestforExpression24.5.4.TheBACshallrecommendtheshortlistofconsultants


24.6.GovernmentcorporateentitiesmaybeeligibletoparticipateinCompetitiveBiddingonlyiftheycanestablishthatthey(a)arelegallyandfinanciallyautonomous,(b)operateundercommerciallaw,and(c)arenotdependentagenciesoftheGOPortheprocuringentity.TheGPPBshallpromulgatethenecessaryguidelinesforthisprovision.(n)


24.7.Notwithstandingtheeligibilityofaconsultantand/orinclusionintheshortlistofconsultants,theprocuringentityconcernedreservestherighttoreviewhisqualificationsatanystageoftheprocurementprocessifithasreasonablegroundstobelievethatamisrepresentationhasbeenmadebythesaidconsultant,orthattherehasbeenachangeintheconsultantscapabilitytoundertaketheprojectfromthetimehesubmittedhiseligibilityrequirements.Shouldsuchreviewuncoveranymisrepresentationmadeintheeligibilityrequirements,statementsordocuments,oranychangesinthesituationoftheconsultantwhichwillaffectthecapabilityoftheconsultanttoundertaketheprojectsothattheconsultantfailsthepreseteligibilitycriteria,theprocuringentityshallconsiderthesaidconsultantasineligibleandshalldisqualifyhimfromsubmittingabidorfromobtaininganawardorcontract,inaccordancewithRulesXXI,XXII,andXXIIIofthisIRR.


Section25.SubmissionandReceiptofBids

25.1.Biddersshallsubmittheirbids25.2.Thefirstenvelope25.3.Thesecondenvelope25.4.BidsshallbereceivedbytheBAC25.5.Bids,includingtheeligibilityrequirements


25.1.BiddersshallsubmittheirbidsthroughtheirdulyauthorizedrepresentativeusingtheformsspecifiedintheBiddingDocumentsintwo(2)separatesealedbidenvelopes,andwhichshallbesubmittedsimultaneously.Thefirstshallcontainthetechnicalcomponentofthebid,includingtheeligibilityrequirementsunderSection23.1ofthisIRR,andthesecondshallcontainthefinancialcomponentofthebid.(a)


25.2.Thefirstenvelopeshallcontainthefollowingtechnicalinformation/documents,attheleast:a)Fortheprocurementofgoods:

i)Eligibilityrequirementsii)Thebidsecurityiii)Technicalspecificationsiv)Swornstatement

b)Fortheprocurementofinfrastructureprojects:

i)Eligibilityrequirementsii)Bidsecurityiii)ProjectRequirementsiv)Swornstatement

c)Fortheprocurementofconsultingservices:

i)Thebidsecurityii)Organizationalchartiii)Listofcompletediv)Approach,workplan,andschedulev)Listofkeypersonnelvi)Swornstatement


25.3.Thesecondenvelopeshallcontainthefinancialinformation/documentsasspecifiedinthePBDs.(a)


25.4.BidsshallbereceivedbytheBAConthedate,time,andplacespecifiedintheInvitationtoBid/RequestforExpressionofInterest.ThefollowingperiodsfromthelastdayofpostingoftheInvitationtoBid/RequestforExpressionofInterestuptothesubmissionandreceiptofbidsshallbeobserved:a)ForGoods,amaximumperiodofforty-five(45)calendardays.

b)Forinfrastructureprojects,thefollowingmaximumperiods:ApprovedBudgetfortheContract(inPhilippinecurrency)PeriodFifty(50)millionandbelow50calendardaysAbovefifty(50)million65calendardays

c)Forconsultingservices,amaximumperiodofseventyfive(75)calendardays.(21a)


25.5.Bids,includingtheeligibilityrequirementsunderSection23.1ofthisIRR,submittedafterthedeadlineshallnotbeacceptedbytheBAC.(a)


Section26.ModificationandWithdrawalofBids

26.1.Abiddermaymodifyitsbid,providedthatthisisdonebeforethedeadlineforthesubmissionandreceiptofbids.Whereabiddermodifiesitsbid,itshallnotbeallowedtoretrieveitsoriginalbid,butshallonlybeallowedtosendanotherbidequallysealed,properlyidentified,linkedtoitsoriginalbidandmarkedasamodification,thereof,andstampedreceivedbytheBAC.Bidmodificationsreceivedaftertheapplicabledeadlineshallnotbeconsideredandshallbereturnedtothebidderunopened.

26.2.Abiddermay,throughaletter,withdrawitsbidbeforethedeadlineforthereceiptofbids.WithdrawalofbidsaftertheapplicabledeadlineshallbesubjecttoappropriatesanctionsasprescribedinthisIRR.AbiddermayalsoexpressitsintentionnottoparticipateinthebiddingthroughaletterwhichshouldreachandbestampedreceivedbytheBACbeforethedeadlineforthereceiptofbids.Abidderthatwithdrawsitsbidshallnotbepermittedtosubmitanotherbid,directlyorindirectly,forthesamecontract.


Section27.BidSecurity

27.1.Allbidsshallbeaccompanied27.2.Thebidsecurityshallbeinanamountequal27.3.Thebidsecurityshallbedenominated27.4.Withoutprejudicetotheprovisions27.5.Innocaseshallbidsecurity


27.1.Allbidsshallbeaccompaniedbyabidsecurity,payabletotheprocuringentityconcernedasaguaranteethatthesuccessfulbiddershall,withinten(10)calendardaysorless,asindicatedintheInstructionstoBidders,fromreceiptofthenoticeofaward,enterintocontractwiththeprocuringentityandfurnishtheperformancesecurityrequiredinSection39ofthisIRR,exceptwhenSection37.1ofthisIRRallowsalongerperiod.Failuretoenclosetherequiredbidsecurityintheformandamountprescribedhereinshallautomaticallydisqualifythebidconcerned.


27.2.ThebidsecurityshallbeinanamountequaltoapercentageoftheABCinaccordancewiththefollowingschedule:FormofBidSecurityAmountofBidSecurity(EqualtoPercentageoftheABC)a)Cash,cashier s/manager scheck,bankdraft/guaranteeconfirmedbyaUniversalorCommercialBank.Twopercent(2%)

b)IrrevocableletterofcreditissuedbyaUniversalorCommercialBank:Provided,however,thatitshallbeconfirmedorauthenticatedbyaUniversalorCommercialBank,ifissuedbyaforeignbank.

c)SuretybondcallableupondemandissuedbyasuretyorinsurancecompanydulycertifiedbytheInsuranceCommissionasauthorizedtoissuesuchsecurity.Fivepercent(5%)

d)Anycombinationoftheforegoing.ProportionatetoshareofformwithrespecttototalamountofsecurityForbiddingsconductedbyLGUs,theprospectivebiddermayalsosubmitbidsecuritiesintheformofcashier s/manager scheck,bankdraft/guarantee,orirrevocableletterofcreditfromotherbankscertifiedbytheBSPasauthorizedtoissuesuchfinancialinstrument.(a)


27.3.ThebidsecurityshallbedenominatedinPhilippinePesosandpostedinfavoroftheprocuringentity.(a)


27.4.WithoutprejudicetotheprovisionsoftheActandthisIRRontheforfeitureofbidsecurities,bidsecuritiesshallbereturnedonlyafterthebidderwiththeLowestCalculatedResponsiveBidorHighestRatedResponsiveBid,asthecasemaybe,hassignedthecontractandfurnishedtheperformancesecurity,excepttothosedeclaredbytheBACasfailedorpost-disqualifiedinaccordancewiththisIRR,uponsubmissionofawrittenwaiveroftheirrighttofileamotionforreconsiderationand/orprotest.(a)


27.5.InnocaseshallbidsecuritybereturnedlaterthantheexpirationofthebidvalidityperiodindicatedintheBiddingDocuments,unlessithasbeenextendedinaccordancewithSection28.2ofthisIRR.(n)


Section28.BidValidity

28.1.Bidsandbidsecurities28.2.Shoulditbecomenecessarytoextendthevalidity


28.1.BidsandbidsecuritiesshallbevalidforareasonableperiodasdeterminedbytheHeadoftheProcuringEntityconcerned,whichshallbeindicatedintheBiddingDocuments,butinnocaseshalltheperiodexceedonehundredtwenty(120)calendardaysfromthedateoftheopeningofbids.


28.2.Shoulditbecomenecessarytoextendthevalidityofthebidsandbidsecuritiesbeyondonehundredtwenty(120)calendardays,theprocuringentityconcernedshallrequestinwritingallthosewhosubmittedbidsforsuchextensionbeforetheexpirationdatetherefor.Bidders,however,shallhavetherighttorefusetograntsuchextensionwithoutforfeitingtheirbidsecurity.(37a)


Section29.BidOpening

TheBACshallopenthebidsatthetime,date,andplacespecifiedintheBiddingDocuments.Thebiddersortheirdulyauthorizedrepresentativesmayattendtheopeningofbids.TheBACshalladoptaprocedureforensuringtheintegrity,security,andconfidentialityofallsubmittedbids.Theminutesofthebidopeningshallbemadeavailabletothepublicuponwrittenrequestandpaymentofaspecifiedfeetorecovercostofmaterials.


RULEIX-BIDEVALUATION

Section30.ShortTitleandPurposeSection31.DeclarationofPolicySection32.GoverningPrinciplesonGovernmentProcurementSection33.ScopeandApplicationoftheIRR


Section30.PreliminaryExaminationofBids

30.1.TheBACshallopenthefirstbidenvelopes30.2.Immediatelyafterdeterminingcompliance30.3.Fortheprocurementofgoods30.4.Fortheprocurementofconsultingservices

RULEIXBIDEVALUATION

30.1.TheBACshallopenthefirstbidenvelopesofprospectivebiddersinpublictodetermineeachbidder scompliancewiththedocumentsrequiredtobesubmittedforeligibilityandforthetechnicalrequirements,asprescribedinthisIRR.Forthispurpose,theBACshallcheckthesubmitteddocumentsofeachbidderagainstachecklistofrequireddocumentstoascertainiftheyareallpresent,usinganondiscretionarypass/failcriterion,asstatedintheInstructionstoBidders.Ifabiddersubmitstherequireddocument,itshallberatedpassedforthatparticularrequirement.Inthisregard,bidsthatfailtoincludeanyrequirementorareincompleteorpatentlyinsufficientshallbeconsideredasfailed.Otherwise,theBACshallratethesaidfirstbidenvelopeaspassed.(a)


30.2.Immediatelyafterdeterminingcompliancewiththerequirementsinthefirstenvelope,theBACshallforthwithopenthesecondbidenvelopeofeachremainingeligiblebidderwhosefirstbidenvelopewasratedpassed.Thesecondenvelopeofeachcomplyingbiddershallbeopenedwithinthesameday,exceptasprovidedunderSection33ofthisIRR.Incaseoneormoreoftherequirementsinthesecondenvelopeofaparticularbidismissing,incompleteorpatentlyinsufficient,and/orifthesubmittedtotalbidpriceexceedstheABC,theBACshallratethebidconcernedasfailed.Onlybidsthataredeterminedtocontainallthebidrequirementsforbothcomponentsshallberatedpassedandshallimmediatelybeconsideredforevaluationandcomparison.


30.3.Fortheprocurementofgoodswhere,duetothenatureoftherequirementsoftheproject,therequiredtechnicalspecifications/requirementsofthecontractcannotbepreciselydefinedinadvanceofbidding,orwheretheproblemoftechnicallyunequalbidsislikelytooccur,atwo(2)-stagebiddingproceduremaybeemployed.Inthesecases,theprocuringentityconcernedshallpreparetheBiddingDocuments,includingthetechnicalspecificationintheformofperformancecriteriaonly.Underthisprocedure,prospectivebiddersshallberequestedatthefirststagetosubmittheirrespectiveeligibilityrequirementsifneeded,andinitialtechnicalproposalsonly(nopricetenders).TheconcernedBACshallthenevaluatethetechnicalmeritsoftheproposalsreceivedfromeligiblebiddersvis-ŕ-vistherequiredperformancestandards.Ameeting/discussionshallthenbeheldbytheBACwiththoseeligiblebidderswhosetechnicaltendersmeettheminimumrequiredstandardsstipulatedintheBiddingDocumentsforpurposesofdrawingupthefinalrevisedtechnicalspecifications/requirementsofthecontract.OncethefinalrevisedtechnicalspecificationsarecompletedanddulyapprovedbytheconcernedBAC,copiesofthesameshallbeissuedtoallthebiddersidentifiedinthefirststagewhoshallthenberequiredtosubmittheirrevisedtechnicaltenders,includingtheirpriceproposalsintwo(2)separatesealedenvelopesinaccordancewiththisIRR,ataspecifieddeadline,afterwhichtimenomorebidsshallbereceived.TheconcernedBACshallthenproceedinaccordancewiththeprocedureprescribedinthisIRR.


30.4.Fortheprocurementofconsultingservices,thedetailedimplementationoftheprocedurespecifiedinthisSectionshallbeasprovidedinSection33ofthisIRR.


Section31.CeilingforBidPrices

31.1.TheABCshallbetheupperlimit31.2.ForForeign-fundedProcurement

RULEIX–BIDEVALUATION

31.1.TheABCshallbetheupperlimitorceilingforacceptablebidprices.Ifabidprice,asevaluatedandcalculatedinaccordancewiththisIRR,ishigherthantheABC,thebiddersubmittingthesameshallbeautomaticallydisqualified.Thereshallbenolowerlimitorfloorontheamountoftheaward.


31.2.ForForeign-fundedProcurement,theABCshallbeappliedastheceiling,providedthatthefollowingconditionsaremet:a)BiddingDocumentsareobtainablefreeofchargeonafreelyaccessiblewebsite.IfpaymentofBiddingDocumentsisrequiredbytheprocuringentity,paymentcouldbemadeuponthesubmissionofbids.

b)TheprocuringentityhasproceduresinplacetoensurethattheABCisbasedonrecentestimatesmadebytheengineerortheresponsibleunitoftheprocuringentityandthattheestimatesarebasedonadequatedetailedengineering(inthecaseofworks)andreflectthequality,supervisionandriskandinflationaryfactors,aswellasprevailingmarketprices,associatedwiththetypesofworksorgoodstobeprocured.

c)Theprocuringentityhastrainedcostestimatorsonestimatingpricesandanalyzingbidvariances.Inthecaseofinfrastructureprojects,theprocuringentitymustalsohavetrainedquantitysurveyors.

d)TheprocuringentityhasestablishedasystemtomonitorandreportbidpricesrelativetoABCandengineer s/procuringentitysestimate.

e)Theprocuringentityhasestablishedamonitoringandevaluationsystemforcontractimplementationtoprovideafeedbackonactualtotalcostsofgoodsandworks.However,theGOPandtheforeigngovernment/foreignorinternationalfinancinginstitutionmayagreetowaivetheforegoingconditions.(n)


Section32.BidEvaluationfortheProcurementofGoodsandInfrastructureProjects

32.1.MembersoftheBAC32.2.Fortheprocurementofgoods32.3.Afterallbidshavebeenreceived32.4.Theentireevaluationprocess

RULEIXBIDEVALUATION

32.1.MembersoftheBAC,includingitsstaffandpersonnel,aswellasitsSecretariatandTWG,areprohibitedfrommakingoracceptinganycommunicationwithanybidderregardingtheevaluationoftheirbidsuntiltheissuanceoftheNoticeofAward.However,theBAC,throughitsSecretariat,mayaskinwritingthebidderforaclarificationofitsbid.Allresponsestorequestsforclarificationshallbeinwriting.(a)


32.2.Fortheprocurementofgoodsandinfrastructureprojects,thepurposeofbidevaluationistodeterminetheLowestCalculatedBidusingthefollowingsteps:32.2.1.TheBACshallimmediatelyconduct32.2.2.TheBACshallevaluateallbids32.2.3.Incaseofdiscrepancies32.2.4.Bidsshallthenberanked


32.3.Afterallbidshavebeenreceived,opened,examined,evaluated,andranked,theBACshallpreparethecorrespondingAbstractofBids.AllmembersoftheBACshallsigntheAbstractofBidsandattachtheretoallthebidswiththeircorrespondingbidsecuritiesandtheminutesorproceedingsofthebidding.TheAbstractofBidsshallcontainthefollowing:a)Nameofthecontractanditslocation,ifapplicable;b)Time,dateandplaceofbidopening;andc)Namesofbiddersandtheircorrespondingcalculatedbidpricesarrangedfromlowesttohighest,theamountofbidsecurityandthenameoftheissuingentity.


32.4.Theentireevaluationprocessfortheprocurementofgoodsandinfrastructureprojectsshallbecompletedwithinseven(7)calendardaysfromthedeadlineforreceiptofproposals.However,forinfrastructureprojectscostingFiftyMillionPesos(P50,000,000)andbelow,theentireevaluationprocessshallbecompletedinnotmorethanfive(5)calendardaysfromthedeadlineforreceiptofproposals.(a)


Section33.BidEvaluationofShortListedBiddersforConsultingServices

33.1.Fromsubmissionandreceiptofbids33.2.Thepurposeofbidevaluation33.3.Thereshouldbenoreplacementofkeypersonnel33.4.Theentireevaluationprocess

RULEIXBIDEVALUATION

33.1.FromsubmissionandreceiptofbidsuntiltheapprovalbytheHeadoftheProcuringEntityoftherankingofshortlistedbidders,thosethathavesubmittedtheirbidsareprohibitedfrommakinganycommunicationwithanyBACmember,includingitsstaffandpersonnel,aswellasitsSecretariatandTWG,regardingmattersconnectedtotheirbids.However,theBAC,throughitsSecretariat,mayaskinwritingthebidderforaclarificationofitsbid.Allresponsestorequestsforclarificationshallbeinwriting.(a)


33.2.ThepurposeofbidevaluationistodeterminetheHighestRatedBidusingthefollowingsteps:33.2.1.TheBACshallconductadetailedevaluation33.2.2.Thetechnicalproposalsofconsultants33.2.3.Inordertoeliminatebias33.2.4.Allparticipatingshortlistedconsultants33.2.5.Negotiations33.2.6.Totalcalculatedbidprices


33.3.Thereshouldbenoreplacementofkeypersonnelbeforetheawardingofcontract,exceptforjustifiablereason,suchas,illness,death,orresignationprovideditisdulysupportedbyrelevantcertificates,oranydelaycausedbytheprocuringentity.Theprocuringentityshallimmediatelyconsidernegotiationwiththenextrankedconsultantifunjustifiablereplacementofpersonnelbythefirstrankedfirmismade.Oncethecontracthasbeenawarded,noreplacementshallbealloweduntilafterfiftypercent(50%)ofthepersonnelsman-monthshavebeenserved,exceptforjustifiablereasons,subjecttoappropriatesanctionsasprescribedinthePBDs.(a)


33.4.Theentireevaluationprocess,includingthesubmissionoftheresultsthereoftotheHeadoftheProcuringEntityforapproval,shallbecompletedinnotmorethantwenty-one(21)calendardaysafterthedeadlineforreceiptofproposals.TheproposalwiththehighestscoreshallbeidentifiedastheHighestRatedBid.(a)


RULEX–POST-QUALIFICATION

Section34.ObjectiveandProcessofPost-QualificationSection35.FailureofBiddingSection36.SingleCalculated/RatedandResponsiveBidSubmission


Section34.ObjectiveandProcessofPost-Qualification

34.1.TheLowestCalculatedBid/HighestRatedBid34.2.Withinthree(3)calendardays34.3.Thepost-qualificationshallverify,validate,andascertainallstatements34.4.IftheBACdeterminesthatthebidder34.5.If,however,theBACdeterminesthatthebidder34.6.ImmediatelyaftertheBAChasnotifiedthefirstbidder34.7.Ifthesecondbidder,however,failsthepost-qualification34.8.Thepost-qualificationprocessshallbecompleted

RULEXPOST-QUALIFICATION

34.1.TheLowestCalculatedBid/HighestRatedBidshallundergopost-qualificationinordertodeterminewhetherthebidderconcernedcomplieswithandisresponsivetoalltherequirementsandconditionsasspecifiedintheBiddingDocuments.(a)


34.2.Withinthree(3)calendardaysfromreceiptbythebidderofthenoticefromtheBACthatthebidderhastheLowestCalculatedBidorHighestRatedBid,thebiddershallsubmitthefollowingdocumentaryrequirementstotheBAC:a)Taxclearance;

b)Latestincomeandbusinesstaxreturns;

c)CertificateofPhilGEPSRegistration;and

d)OtherappropriatelicensesandpermitsrequiredbylawandstatedintheBiddingDocuments.Failuretosubmittheaboverequirementsontimeorafindingagainsttheveracityofsuchshallbegroundfortheforfeitureofthebidsecurityanddisqualifythebidderforaward.(n)


34.3.Thepost-qualificationshallverify,validate,andascertainallstatementsmadeanddocumentssubmittedbythebidderwiththeLowestCalculatedBid/HighestRatedBid,usingnon-discretionarycriteria,asstatedintheBiddingDocuments.Thesecriteriashallconsider,butshallnotbelimitedto,thefollowing:a)LegalRequirements.Toverify,validate,andascertainlicenses,certificates,permits,andagreementssubmittedbythebidder,andthefactthatitisnotincludedinanyblacklistasprovidedinSection25.2ofthisIRR.Forthispurpose,theGPPBshallmaintainaconsolidatedfileofallblacklistedsuppliers,contractors,andconsultants.

b)TechnicalRequirements.Todeterminecomplianceofthegoods,infrastructureprojects,orconsultingservicesofferedwiththerequirementsspecifiedintheBiddingDocuments,including,whereapplicable:

i)Verificationandvalidationii)Verificationofavailabilityiii)Verificationand/orinspectioniv)Ascertainmentofthesufficiency

c)FinancialRequirements.Toverify,validateandascertainthebidpriceproposalofthebidderand,wheneverapplicable,therequiredCLCintheamountspecifiedandovertheperiodstipulatedintheBiddingDocuments,orthebidder sNFCCtoensurethatthebiddercansustaintheoperatingcashflowofthetransaction.


34.4.IftheBACdeterminesthatthebidderwiththeLowestCalculatedBid/HighestRatedBidpassesallthecriteriaforpost-qualification,itshalldeclarethesaidbidastheLowestCalculatedResponsiveBid/HighestRatedResponsiveBid,andrecommendtotheHeadoftheProcuringEntitytheawardofcontracttothesaidbidderatitssubmittedbidpriceoritscalculatedbidprice,whicheverisloweror,inthecaseofquality-basedevaluationprocedure,submittedbidpriceoritsnegotiatedprice,whicheverislower.(a)


34.5.If,however,theBACdeterminesthatthebidderwiththeLowestCalculatedBid/HighestRatedBidfailsthecriteriaforpost-qualification,itshallimmediatelynotifythesaidbidderinwritingofitspost-disqualificationandthegroundsforit.(a)


34.6.ImmediatelyaftertheBAChasnotifiedthefirstbidderofitspost-disqualification,andnotwithstandinganypendingrequestforreconsiderationthereof,theBACshallinitiateandcompletethesamepost-qualificationprocessonthebidderwiththesecondLowestCalculatedBid/HighestRatedBid.Ifthesecondbidderpassesthepost-qualification,andprovidedthattherequestforreconsiderationofthefirstbidderhasbeendenied,thesecondbiddershallbepost-qualifiedasthebidderwiththeLowestCalculatedResponsiveBid/HighestRatedResponsiveBid.(a)


34.7.Ifthesecondbidder,however,failsthepost-qualification,theprocedureforpost-qualificationshallberepeatedforthebidderwiththenextLowestCalculatedBid/HighestRatedBid,andsoonuntiltheLowestCalculatedResponsiveBidorHighestRatedResponsiveBid,asthecasemaybe,isdeterminedforaward,subjecttoSection37ofthisIRR.


34.8.Thepost-qualificationprocessshallbecompletedinnotmorethanseven(7)calendardaysfromthedeterminationoftheLowestCalculatedBid/HighestRatedBid.Inexceptionalcases,thepost-qualificationperiodmaybeextendedbytheHeadoftheProcuringEntity,butinnocaseshalltheaggregateperiodexceedthirty(30)calendardays.(a)


Section35.FailureofBidding

35.1.TheBACshalldeclarethebidding35.2.Inordertodeterminethereason35.3.Basedonitsfindings35.4.Allbidderswhohaveinitiallyresponded35.5.Shouldthereoccurasecondfailure


35.1.TheBACshalldeclarethebiddingafailurewhen:a)Nobidsarereceived;

b)Allprospectivebiddersaredeclaredineligible;

c)Allbidsfailtocomplywithallthebidrequirementsorfailpost-qualification,or,inthecaseofconsultingservices,thereisnosuccessfulnegotiation;or

d)ThebidderwiththeLowestCalculatedResponsiveBid/HighestRatedResponsiveBidrefuses,withoutjustifiablecause,toaccepttheawardofcontract,andnoawardismadeinaccordancewithSection40oftheActandthisIRR.


35.2.Inordertodeterminethereasonforthefailedbidding,theBACshallconductamandatoryreviewandevaluationoftheterms,conditions,andspecificationsintheBiddingDocuments,includingitscostestimates.(a)


35.3.Basedonitsfindings,theBACshallrevisetheterms,conditions,andspecifications,andifnecessary,adjusttheABC,subjecttotherequiredapprovals,andconductare-biddingwithre-advertisementand/orposting,asprovidedforinSection21.2ofthisIRR.(a)


35.4.AllbidderswhohaveinitiallyrespondedtotheInvitationtoBid/RequestforExpressionofInterestandhavebeendeclaredeligibleorshortlistedinthepreviousbiddingsshallbeallowedtosubmitnewbids.TheBACshallobservethesameprocessandsetthenewperiodsaccordingtothesamerulesfollowedduringthepreviousbidding(s).(a)


35.5.Shouldthereoccurasecondfailureofbidding,theprocuringentitymayresorttonegotiatedprocurement,asprovidedforinSection53.1ofthisIRR.


Section36.SingleCalculated/RatedandResponsiveBidSubmission

Asinglecalculated/ratedandresponsivebidshallbeconsideredforawardifitfallsunderanyofthefollowingcircumstances:

a)Ifafteradvertisement,onlyoneprospectivebiddersubmitsanLOIand/orappliesforeligibilitycheck,inaccordancewiththeprovisionsofthisIRR,anditmeetstheeligibilityrequirementsorcriteria,afterwhichitsubmitsabidwhichisfoundtoberesponsivetothebiddingrequirements;

b)Ifafteradvertisement,morethanoneprospectivebiddersubmitsanLOIand/orappliesforeligibilitycheck,inaccordancewiththeprovisionsofthisIRR,butonlyonebiddermeetstheeligibilityrequirementsorcriteria,afterwhichitsubmitsabidwhichisfoundtoberesponsivetothebiddingrequirements;or

c)Ifaftertheeligibilitycheck,morethanonebiddermeetstheeligibilityrequirements,butonlyonebiddersubmitsabid,anditsbidisfoundtoberesponsivetothebiddingrequirements.Inallinstances,theprocuringentityshallensurethattheABCreflectsthemostadvantageousprevailingpricefortheGovernment.


RULEXI–AWARD,IMPLEMENTATIONANDTERMINATIONOFTHECONTRACT

Section37.NoticeandExecutionofAwardSection38.PeriodofActiononProcurementActivitiesSection39.PerformanceSecuritySection40.FailuretoEnterintoContractandPostPerformanceSecuritySection41.ReservationClauseSection42.ContractImplementationandTermination


Section37.NoticeandExecutionofAward

37.1.ContractAward37.2.ContractSigning37.3.ContractApproval37.4.NoticetoProceed


37.1.ContractAward

37.1.1.TheBACshallrecommendtotheHeadoftheProcuringEntity37.1.2.Withinaperiodnotexceedingseven(7)calendardays37.1.3.Incaseofapproval,theHeadoftheProcuringEntity37.1.4.NotwithstandingtheissuanceoftheNoticeofAward37.1.5.Contractaward37.1.6.TheBAC,throughtheSecretariat


37.2.ContractSigning

37.2.1.Thewinningbidder37.2.2.Theprocuringentity37.2.3.Thefollowingdocuments


37.3.ContractApprovalbyHigherAuthorityWhenfurtherapprovalofhigherauthorityisrequired,theapprovingauthorityforthecontractorhisdulyauthorizedrepresentativeshallbegivenamaximumoffifteen(15)calendardaysfromreceiptthereoftoapproveordisapproveit.However,forinfrastructureprojectswithanABCofFiftyMillionPesos(P50,000,000)andbelow,themaximumperiodisfive(5)calendardays.InthecaseofGOCCs,theconcernedboardoritsdulyauthorizedrepresentativeshallbegivenamaximumoftwenty-five(25)calendardaysfromreceiptthereoftoapproveordisapproveit.


37.4.NoticetoProceed

37.4.1.TheprocuringentityshallissuetheNotice37.4.2.Theprocuringentity,throughtheBACSecretariat


Section38.PeriodofActiononProcurementActivities

38.1.Theprocurementprocess38.2.Themaximumperiods38.3.Ifnoactiononthecontract


38.1.Theprocurementprocessfromtheopeningofbidsuptotheawardofcontractshallnotexceedthree(3)months,orashorterperiodtobedeterminedbytheprocuringentityconcerned.AllmembersoftheBACshallbeonajurydutytypeofassignmentuntiltheNoticeofAwardisissuedbytheHeadoftheProcuringEntityinordertocompletetheentireprocurementprocessattheearliestpossibletime.Forpurposesofthissection,thetermjurydutyshallbeunderstoodtomeanastatebywhichthemembersgiveutmostprioritytoBACassignmentoveralltheotherdutiesandresponsibilitiesuntiltherequirementsforthesaidassignmentsathandarecompleted.


38.2.ThemaximumperiodsandearliestpossibletimeforactiononspecificprocurementactivitiesareprovidedforinAnnexCofthisIRR.Incasethedeadlineforeachactivityfallsonanon-workingday(i.e.SaturdayandSunday),legalholiday,orspecialnon-workingholiday,thedeadlineshallbethenextworkingday.


38.3.IfnoactiononthecontractistakenbytheHeadoftheProcuringEntityortheappropriateapprovingauthoritywithintheperiodsspecifiedinthisIRR,thecontractconcernedshallbedeemedapproved:Provided,however,ThatwherefurtherapprovalbytheOfficeofthePresidentisrequired,thecontractshallnotbedeemedapprovedunlessanduntiltheOfficeofthePresidentgivesactualapprovaltothecontractconcerned.


Section39.PerformanceSecurity

39.1.Toguaranteethefaithfulperformance39.2.Theperformancesecurityshallbeinanamountequal39.3.TheperformancesecurityshallbedenominatedinPhilippinePesos39.4.Theperformancesecurityshallremainvalid39.5.Theperformancesecuritymaybereleased39.6.Fortheprocurementofinfrastructureprojects39.7.Incaseofareductioninthecontractvalue

RULEXIAWARD,IMPLEMENTATIONANDTERMINATIONOFTHECONTRACT

39.1.ToguaranteethefaithfulperformancebythewinningbidderofitsobligationsunderthecontractinaccordancewiththeBiddingDocuments,itshallpostaperformancesecuritypriortothesigningofthecontract.


39.2.Theperformancesecurityshallbeinanamountequaltoapercentageofthetotalcontractpriceinaccordancewiththefollowingschedule:FormofPerformanceSecurityAmountofPerformanceSecurity(EqualtoPercentageoftheTotalContractPrice)a)Cash,cashier s/manager scheck,bankdraft/guaranteeconfirmedbyaUniversalorCommercialBank.GoodsandConsultingServicesFivepercent(5%)InfrastructureProjectsTenpercent(10%)

b)IrrevocableletterofcreditissuedbyaUniversalorCommercialBank:Provided,however,thatitshallbeconfirmedorauthenticatedbyaUniversalorCommercialBank,ifissuedbyaforeignbank.

c)SuretybondcallableupondemandissuedbyasuretyorinsurancecompanydulycertifiedThirtypercent(30%)bytheInsuranceCommissionasauthorizedtoissuesuchsecurity.

d)Anycombinationoftheforegoing.ProportionatetoshareofformwithrespecttototalamountofsecurityForbiddingsconductedbyLGUs,theprospectivebiddermayalsosubmitperformancesecuritiesintheformofcashier s/manager scheck,bankdraft/guarantee,orirrevocableletterofcreditfromotherbankscertifiedbytheBSPasauthorizedtoissuesuchfinancialinstrument.(a)


39.3.TheperformancesecurityshallbedenominatedinPhilippinePesosandpostedinfavoroftheprocuringentity,whichshallbeforfeitedintheeventitisestablishedthatthewinningbidderisindefaultinanyofitsobligationsunderthecontract.(n)


39.4.TheperformancesecurityshallremainvaliduntilissuancebytheprocuringentityofthefinalCertificateofAcceptance.


39.5.TheperformancesecuritymaybereleasedbytheprocuringentityaftertheissuanceoftheCertificateofAcceptance,subjecttothefollowingconditions:a)Procuringentityhasnoclaimsfiledagainstthecontractawardeeorthesuretycompany;

b)Ithasnoclaimsforlaborandmaterialsfiledagainstthecontractor;and

c)Othertermsofthecontract.(a)


39.6.Fortheprocurementofinfrastructureprojects,thewinningbiddershallpostanadditionalperformancesecurityfollowingthescheduleabovetocoveranycumulativeincreaseofmorethantenpercent(10%)overtheoriginalvalueofthecontractasaresultofamendmentstoorderorchangeorders,extraworkordersandsupplementalagreements,asthecasemaybe.ThewinningbiddershallcausetheextensionofthevalidityofthePerformanceSecuritytocoverapprovedcontracttimeextensions.


39.7.Incaseofareductioninthecontractvalue,or,inthecaseofprocurementofinfrastructureprojects,forpartiallycompletedworksunderthecontractwhichareusableandacceptedbytheGOP,andtheuseofwhich,inthejudgmentoftheimplementingagencyortheprocuringentity,willnotaffectthestructuralintegrityoftheentireproject,thesaidagencyorprocuringentityshallallowaproportionalreductionintheoriginalperformancesecurity,providedthatanysuchreductionismorethantenpercent(10%)andthattheaggregateofsuchreductionsisnotmorethanfiftypercent(50%)oftheoriginalPerformanceSecurity.(a)


Section40.FailuretoEnterintoContractandPostPerformanceSecurity

40.1.IfthebidderwiththeLowestCalculated40.2.Inthecaseofthefailure,refusalorinabilitythebidderwiththeLowestCalculatedResponsiveBid/HighestRatedResponsiveBid40.3.Inthecaseoffailure,refusalorinabilityofthebidderwiththeSingleCalculated/RatedResponsiveBid


40.1.IfthebidderwiththeLowestCalculatedResponsiveBid/HighestRatedResponsiveBidorthebidderwiththeSingleCalculated/RatedResponsiveBid,fails,refusesorisunabletosubmitthedocumentsrequiredunderSection37.1ofthisIRRortomakegooditsbidbyenteringintoacontractwiththeprocuringentityorposttherequiredPerformanceSecuritywithintheperiodstipulatedinthisIRRorintheBiddingDocuments,thebidsecurityshallbeforfeitedandtheappropriatesanctionsprovidedinthisIRRandexistinglawsshallbeimposed,exceptwheresuchfailure,refusalorinabilityisthroughnofaultofthesaidbidder.


40.2.Inthecaseofthefailure,refusalorinabilityofthebidderwiththeLowestCalculatedResponsiveBid/HighestRatedResponsiveBidtosubmitthedocumentsrequiredunderSection37.1ofthisIRRortoenterintocontractandposttherequiredPerformanceSecurity,asprovidedinthisSection,theBACshalldisqualifythesaidbidder,andshallinitiateandcompletethepost-qualificationprocessonthebidderwiththesecondLowestCalculatedBid/HighestRatedBid:Provided,however,Thatinthecaseofconsultingservices,thesecondHighestRatedBidhassuccessfullyundergonethenegotiationstageinaccordancewithSection33.2.5ofthisIRR.ThisprocedureshallberepeateduntiltheLowestCalculatedResponsiveBid/HighestRatedResponsiveBidisdeterminedforaward.However,ifnobidderpassespost-qualification,theBACshalldeclarethebiddingafailureandconductare-biddingwithre-advertisement.Shouldthereoccuranotherfailureofbiddingaftertheconductofthecontractsre-bidding,theprocuringentityconcernedmayenterintoanegotiatedprocurement.


40.3.Inthecaseoffailure,refusalorinabilityofthebidderwiththeSingleCalculated/RatedResponsiveBidtosubmitthedocumentsrequiredunderSection37.1ofthisIRRortoenterintocontractandposttherequiredPerformanceSecurity,asprovidedinthisSection,theBACshalldisqualifythesaidbidder,andshalldeclarethebiddingafailureandconductare-biddingwithre-advertisementand/orposting,asprovidedforinSections21and25ofthisIRR.Shouldthereoccuranotherfailureofbiddingaftertheconductofthecontractsre-bidding,theprocuringentityconcernedmayenterintoanegotiatedprocurement.


Section41.ReservationClause

TheHeadoftheProcuringEntityreservestherighttorejectanyandallbids,declareafailureofbidding,ornotawardthecontractinthefollowingsituations:

a)Ifthereisprimafacieevidenceofcollusionbetweenappropriatepublicofficersoremployeesoftheprocuringentity,orbetweentheBACandanyofthebidders,orifthecollusionisbetweenoramongthebiddersthemselves,orbetweenabidderandathirdparty,includinganyactwhichrestricts,suppressesornullifiesortendstorestrict,suppressornullifycompetition;

b)IftheBACisfoundtohavefailedinfollowingtheprescribedbiddingprocedures;or

c)ForanyjustifiableandreasonablegroundwheretheawardofthecontractwillnotredoundtothebenefitoftheGOP,asfollows:(i)ifthephysicalandeconomicconditionshavesignificantlychangedsoastorendertheprojectnolongereconomically,financially,ortechnicallyfeasible,asdeterminedbytheHeadoftheProcuringEntity;(ii)iftheprojectisnolongernecessaryasdeterminedbytheHeadoftheProcuringEntity;and(iii)ifthesourceoffundsfortheprojecthasbeenwithheldorreducedthroughnofaultoftheprocuringentity.


Section42.ContractImplementationandTermination

42.1.Thecontractimplementationguidelinesfortheprocurementofgoods42.2.Thecontractimplementationguidelinesfortheprocurementofinfrastructureprojects42.3.Thecontractimplementationguidelinesfortheprocurementofconsultingservices42.4.Noincentivebonus42.5.ProcuringEntities


42.1.Thecontractimplementationguidelinesfortheprocurementofgoods,suppliesandmaterialsareprovidedforinAnnexDofthisIRR.


42.2.ThecontractimplementationguidelinesfortheprocurementofinfrastructureprojectsareprovidedforinAnnexEofthisIRR.


42.3.ThecontractimplementationguidelinesfortheprocurementofconsultingservicesareprovidedforinAnnexFofthisIRR.


42.4.Noincentivebonus,inwhateverformorforwhateverpurpose,shallbeallowed.


42.5.ProcuringEntitiesmayissuealetterofcreditinfavorofalocalorforeignsuppliers;Provided,that,nopaymentontheletterofcreditshallbemadeuntildeliveryandacceptanceofthegoodsascertifiedtobytheprocuringentityinaccordancewiththedeliveryscheduleprovidedforinthecontracthavebeenconcluded;Providedfurther,that,thecostfortheopeningofletterofcreditshallbefortheaccountofthelocalorforeignsupplierandmustbestatedintheBiddingDocuments.


RULEXII–DOMESTICANDFOREIGNPROCUREMENT

Section43.ProcurementofDomesticandForeignGoods



43.1.ScopeandApplication43.2.ProceduresandGuidelines

RULEXII–DOMESTICANDFOREIGNPROCUREMENT

43.1.ScopeandApplication

43.1.1.ConsistentwiththeGOPsobligations43.1.2.Theprocuringentity43.1.3.ADomesticEntity43.1.4.ADomesticBidder


43.2.ProceduresandGuidelines

43.2.1.Thepreferenceshallbeapplied43.2.2.Forevaluationpurposes43.2.3.Intheeventthat(a)thelowestbid43.2.4.IftheDomesticEntity/Bidder


RULEXIII–BIDDINGOFPROVINCIALPROJECTS

Section44.BiddingofProvincialProjectsSection45.ProvincialBidders


Section44.BiddingofProvincialProjects

PriorityprogramsandinfrastructureprojectsfundedoutoftheannualGAAwhichareintendedforimplementationwithintheprovinceshallbesubjecttothesamepublicbiddingandtotheprocurementprocessesprescribedinthisIRR.ForpurposesofthisSection,EngineeringDistrictinfrastructureprojectsandpriorityprogramsfullyfundedbytheGovernmentandidentifiedinconsultationwiththeconcernedmembersofCongress,shallconstituteprovincialprojectsandshallbegovernedbythisSection.

RULEXIIIBIDDINGOFPROVINCIALPROJECTS

Section45.ProvincialBidders

InaccordancewithSection45oftheAct,therighttomatchaccordedtoprovincialbiddersisnolongeravailableafter26January2008.(a)

RULEXIIIBIDDINGOFPROVINCIALPROJECTS

RULEXIV-LEASEOFCOMPUTERS,COMMUNICATIONS,INFORMATIONANDOTHEREQUIPMENT

Section46.LeaseContracts


Section46.LeaseContracts

Theleaseofconstructionandofficeequipment,includingcomputers,communicationandinformationtechnologyequipment,aresubjecttothesamepublicbiddingandtotheprocessesprescribedundertheActandthisIRR.Leasemayalsocoverleasepurchasesorlease-to-ownandsimilarvariations.

RULEXIVLEASEOFCOMPUTERS,COMMUNICATIONS,INFORMATIONANDOTHEREQUIPMENT

RULEXV–DISCLOSUREOFRELATIONS

Section47.DisclosureofRelations


Section47.DisclosureofRelations

AllbidsshallbeaccompaniedbyaswornaffidavitofthebidderthatitisnotrelatedtotheHeadoftheProcuringEntity,membersoftheBAC,theTWG,andtheBACSecretariat,theheadofthePMOortheend-userunit,andtheprojectconsultants,byconsanguinityoraffinityuptothethirdcivildegree.FailuretocomplywiththeaforementionedprovisionshallbeagroundfortheautomaticdisqualificationofthebidinconsonancewithSection30ofthisIRR.Forthisreason,relationtotheaforementionedpersonswithinthethirdcivildegreeofconsanguinityoraffinityshallautomaticallydisqualifythebidderfromparticipatingintheprocurementofcontractsoftheprocuringentity.Onthepartofthebidder,thisprovisionshallapplytothefollowingpersons:

a)Ifthebidderisanindividualorasoleproprietorship,tothebidderhimself;

b)Ifthebidderisapartnership,toallitsofficersandmembers;

c)Ifthebidderisacorporation,toallitsofficers,directors,andcontrollingstockholders;and

d)Ifthebidderisajointventure,theprovisionsofitems(a),(b),or(c)ofthisSectionshallcorrespondinglyapplytoeachofthemembersofthesaidjointventure,asmaybeappropriate.(a)

RULEXVDISCLOSUREOFRELATIONS

RULEXVI–ALTERNATIVEMETHODSOFPROCUREMENT

Section48.AlternativeMethodsSection49.LimitedSourceBiddingSection50.DirectContractingSection51.RepeatOrderSection52.ShoppingSection53.NegotiatedProcurementSection54.TermsandConditionsfortheuseofAlternativeMethods


Section48.AlternativeMethods

48.1.Subjecttothepriorapproval48.2.InaccordancewithSection10ofthisIRR48.3.Themethodofprocurement

RULEXVI–ALTERNATIVEMETHODSOFPROCUREMENT

48.1.SubjecttothepriorapprovaloftheHeadoftheProcuringEntity,andwheneverjustifiedbytheconditionsprovidedinthisAct,theprocuringentitymay,inordertopromoteeconomyandefficiency,resorttoanyofthealternativemethodsofprocurementprovidedinthisRule.Inallinstances,theprocuringentityshallensurethatthemostadvantageouspricefortheGovernmentisobtained.


48.2.InaccordancewithSection10ofthisIRR,asageneralrule,theProcuringEntitiesshalladoptpublicbiddingasthegeneralmodeofprocurementandshallseetoitthattheprocurementprogramallowssufficientleadtimeforsuchpublicbidding.AlternativemethodsshallberesortedtoonlyinthehighlyexceptionalcasesprovidedforinthisRule.


48.3.ThemethodofprocurementtobeusedshallbeasindicatedintheapprovedAPP.IftheoriginalmodeofprocurementrecommendedintheAPPwaspublicbiddingbutcannotbeultimatelypursued,theBAC,througharesolution,shalljustifyandrecommendthechangeinthemodeofprocurementtobeapprovedbytheHeadoftheprocuringentity.(n)


Section49.LimitedSourceBidding

49.1.LimitedSourceBidding49.2.Thepre-selectedsuppliersorconsultants49.3.Thepre-selectionshallbebaseduponthecapability49.4.TheBACoftheconcernedprocuringentity

RULEXVI-ALTERNATIVEMETHODSOFPROCUREMENT

49.1.LimitedSourceBidding,otherwiseknownasselectivebidding,isamethodofprocurementofgoodsandconsultingservicesthatinvolvesdirectinvitationtobidbytheprocuringentityfromthelistofpre-selectedsuppliersorconsultantswithknownexperienceandprovencapabilityontherequirementsoftheparticularcontract.Thisalternativemethodofprocurementmaybeemployedunderanyofthefollowingconditions:a)Procurementofhighlyspecializedtypesofgoods(e.g.,sophisticateddefenseequipment,complexairnavigationsystems,coal)andconsultingserviceswhereonlyafewsuppliersorconsultantsareknowntobeavailable,suchthatresortingtothepublicbiddingmethodwillnotlikelyresultinanyadditionalsuppliersorconsultantsparticipatinginthebidding;or

b)Procurementofmajorplantcomponentswhereitisdeemedadvantageoustolimitthebiddingtoknownqualifiedbiddersinordertomaintainuniformqualityandperformanceoftheplantasawhole.(a)


49.2.Thepre-selectedsuppliersorconsultantsshallbethoseappearinginalistmaintainedbytherelevantgovernmentauthoritythathasexpertiseinthetypeofprocurementconcerned.Thelistofpre-selectedsuppliersorconsultantsshallbeupdatedperiodically.Acopyofthelistshallbesubmittedto,andmaintainedupdatedwith,theGPPB.(a)


49.3.Thepre-selectionshallbebaseduponthecapabilityandresourcesofthebidderstoperformthecontracttakingintoaccounttheirexperienceandpastperformanceonsimilarcontracts,capabilitieswithrespecttopersonnelequipmentormanufacturingfacilities,andfinancialposition.Pre-selectionshallbedoneinaccordancewiththeproceduresprovidedintheGPMs.(n)


49.4.TheBACoftheconcernedprocuringentityshalldirectlyinviteallthesuppliersorconsultantsappearinginthepre-selectedlist.Allotherproceduresforcompetitivebiddingshallbeundertaken,exceptfortheadvertisementofInvitationtoBid/RequestforExpressionofInterestunderSection21.2.1ofthisIRR.(a)


Section50.DirectContracting

DirectContractingorsinglesourceprocurementisamethodofprocurementofgoodsthatdoesnotrequireelaborateBiddingDocuments.Thesupplierissimplyaskedtosubmitapricequotationorapro-formainvoicetogetherwiththeconditionsofsale.Theoffermaybeacceptedimmediatelyoraftersomenegotiations.DirectcontractingmayberesortedtobyconcernedProcuringEntitiesunderanyofthefollowingconditions:

a)Procurementofgoodsofproprietarynaturewhichcanbeobtainedonlyfromtheproprietarysource,i.e.whenpatents,tradesecrets,andcopyrightsprohibitothersfrommanufacturingthesameitem;

b)Whentheprocurementofcriticalplantcomponentsfromaspecificsupplierisaconditionprecedenttoholdacontractortoguaranteeitsprojectperformance,inaccordancewiththeprovisionsofitscontract;or

c)Thosesoldbyanexclusivedealerormanufacturerwhichdoesnothavesub-dealerssellingatlowerpricesandforwhichnosuitablesubstitutecanbeobtainedatmoreadvantageoustermstotheGOP.


Section51.RepeatOrder

RepeatOrder,whenprovidedforintheAPP,isamethodofprocurementofgoodsfromthepreviouswinningbidder,wheneverthereisaneedtoreplenishgoodsprocuredunderacontractpreviouslyawardedthroughCompetitiveBidding.Repeatordersshalllikewisebesubjecttothefollowingconditions:

a)Unitpricesoftherepeatordermustbethesameasorlowerthanthoseintheoriginalcontract,providedthatsuchpricesarestillthemostadvantageoustotheGOPafterpriceverification;

b)Therepeatorderwillnotresultinsplittingofcontracts,requisitions,orpurchaseorders,asprovidedforinSection54.1ofthisIRR;

c)ExceptincasesdulyapprovedbytheGPPB,therepeatordershallbeavailedofonlywithinsix(6)monthsfromthecontracteffectivitydatestatedintheNoticetoProceedarisingfromtheoriginalcontract;and

d)Therepeatordershallnotexceedtwenty-fivepercent(25%)ofthequantityofeachitemintheoriginalcontract.


Section52.Shopping

52.1.Shoppingisamethodofprocurementofgoods52.2.Thephrase“ordinaryorregularofficesupplies”52.3.UnderSection52.1(b)ofthisIRR52.4.ThethresholdsprescribedinAnnex“H”ofthisIRR


52.1.Shoppingisamethodofprocurementofgoodswherebytheprocuringentitysimplyrequestsforthesubmissionofpricequotationsforreadilyavailableoff-the-shelfgoodsorordinary/regularequipmenttobeprocureddirectlyfromsuppliersofknownqualifications.Thismethodofprocurementshallbeemployedinanyofthefollowingcases:a)Whenthereisanunforeseencontingencyrequiringimmediatepurchase:Provided,however,ThattheamountshallnotexceedthethresholdsprescribedinAnnexHofthisIRR.

b)ProcurementofordinaryorregularofficesuppliesandequipmentnotavailableintheProcurementServiceinvolvinganamountnotexceedingthethresholdsprescribedinAnnexHofthisIRR.(a)

Section52.Shopping

52.2.Thephraseordinaryorregularofficesuppliesshallbeunderstoodtoincludethosesupplies,commodities,ormaterialswhich,dependingontheprocuringentitysmandateandnatureofoperations,arenecessaryinthetransactionofitsofficialbusinesses,andconsumedintheday-to-dayoperationsofsaidprocuringentity.However,officesuppliesshallnotincludeservicessuchasrepairandmaintenanceofequipmentandfurniture,aswellastrucking,hauling,janitorial,security,andrelatedoranalogousservices.(a)

Section52.Shopping

52.3.UnderSection52.1(b)ofthisIRR,atleastthree(3)pricequotationsfrombonafidesuppliersshallbeobtained.(a)

Section52.Shopping

52.4.ThethresholdsprescribedinAnnexHofthisIRRshallbesubjecttoaperiodicreviewbytheGPPB.Forthispurpose,theGPPBshallbeauthorizedtoincreaseordecreasethesaidamountinordertoreflectchangesineconomicconditionsandforotherjustifiablereasons.(a)

Section52.Shopping

Section53.NegotiatedProcurement

NegotiatedProcurementisamethodofprocurementofgoods,infrastructureprojectsandconsultingservices,wherebytheprocuringentitydirectlynegotiatesacontractwithatechnically,legallyandfinanciallycapablesupplier,contractororconsultantinanyofthefollowingcases:

53.1.TwoFailedBiddings53.2.EmergencyCases53.3.Take-OverofContracts53.4.AdjacentorContiguous53.5.Agency-to-Agency53.6.ProcurementAgent53.7.HighlyTechnicalConsultants53.8.DefenseCooperationAgreement53.9.SmallValueProcurement53.10.LeaseofRealProperty53.11.NGOParticipation53.12.CommunityParticipation53.13.UnitedNationsAgencies


53.1.TwoFailedBiddings.WheretherehasbeenfailureofpublicbiddingforthesecondtimeasprovidedinSection35oftheActandthisIRR.

53.1.1.Afterconductofthemandatoryreview53.1.2.TheBACshallinviteandengage53.1.3.Anyrequirements,guidelines,documents,clarifications53.1.4.Followingcompletionofthenegotiations53.1.5.Theprocuringentity53.1.6.Inallstagesofthenegotiations


53.2.EmergencyCases.Incaseofimminentdangertolifeorpropertyduringastateofcalamity,orwhentimeisoftheessencearisingfromnaturalorman-madecalamitiesorothercauseswhereimmediateactionisnecessarytopreventdamagetoorlossoflifeorproperty,ortorestorevitalpublicservices,infrastructurefacilitiesandotherpublicutilities.Inthecaseofinfrastructureprojects,theprocuringentityhastheoptiontoundertaketheprojectthroughnegotiatedprocurementorbyadministrationor,inhighsecurityriskareas,throughtheAFP.


53.3.Take-OverofContracts.Take-overofcontracts,whichhavebeenrescindedorterminatedforcausesprovidedforinthecontractandexistinglaws,whereimmediateactionisnecessarytopreventdamagetoorlossoflifeorproperty,ortorestorevitalpublicservices,infrastructurefacilitiesandotherpublicutilities.

53.3.1.Thecontractmaybenegotiated53.3.2.Ifnegotiationfails53.3.3.Authoritytonegotiatecontracts


53.4.AdjacentorContiguous.Wherethesubjectcontractisadjacentorcontiguoustoanon-goingInfrastructureProjectorConsultingServicewheretheconsultantshaveuniqueexperienceandexpertisetodelivertherequiredservice:Provided,however,That(a)theoriginalcontractistheresultofaCompetitiveBidding;(b)thesubjectcontracttobenegotiatedhassimilarorrelatedscopesofwork;(c)itiswithinthecontractingcapacityofthecontractor/consultant;(d)thecontractor/consultantusesthesamepricesorlowerunitpricesasintheoriginalcontractlessmobilizationcost;(e)theamountinvolveddoesnotexceedtheamountoftheongoingproject;and(f)thecontractor/consultanthasnonegativeslippage/delay:Provided,further,Thatnegotiationsfortheprocurementarecommencedbeforetheexpiryoftheoriginalcontract.(a)


53.5.Agency-to-Agency.Procurementofinfrastructureprojects,consultingservices,andgoodsfromanotheragencyoftheGOP,suchasthePS-DBM,whichistaskedwithacentralizedprocurementofCommon-UseSuppliesfortheGOPinaccordancewithLettersofInstructionNo.755andExecutiveOrderNo.359,seriesof1989.Forpurposesofthissub-section,thetermagencyshallexcludeGOCCsincorporatedunderBatasPambansaBlg.68,otherwiseknownastheCorporationCodeofthePhilippines.TheGPPBshallissueguidelinestoimplementthisprovision.(a)


53.6.ProcurementAgent.Inordertohastenprojectimplementation,ProcuringEntitieswhichmaynothavetheproficiencyorcapabilitytoundertakeaparticularprocurement,asdeterminedbytheHeadoftheProcuringEntityconcerned,mayrequestotherGOPagenciestoundertakesuchprocurementforthem,orattheiroption,recruitandhireconsultantsorprocurementagentstoassistthemdirectlyand/ortraintheirstaffinthemanagementoftheprocurementfunction.TheGPPBshallissueguidelinestoimplementthisprovision.(a)


53.7.HighlyTechnicalConsultants.Inthecaseofindividualconsultantsorpartnershipshiredtodoworkthatis(i)highlytechnicalorproprietary;or(ii)primarilyconfidentialorpolicydetermining,wheretrustandconfidencearetheprimaryconsiderationforthehiringoftheconsultant:Provided,however,Thatthetermoftheindividualconsultantsorpartnershipsshall,atthemost,beonasixmonthbasis,renewableattheoptionoftheappointingHeadoftheProcuringEntity,butinnocaseshallexceedthetermofthelatter.(a)


53.8.DefenseCooperationAgreement.UponpriorapprovalbythePresidentofthePhilippines,andwhentheprocurementforusebytheAFPinvolvesmajordefenseequipmentormaterieland/ordefense-relatedconsultancyservices,whentheexpertiseorcapabilityrequiredisnotavailablelocally,andtheSecretaryofNationalDefensehasdeterminedthattheinterestsofthecountryshallbeprotectedbynegotiatingdirectlywithanagencyorinstrumentalityofanothercountrywithwhichthePhilippineshasenteredintoadefensecooperationagreementorotherwisemaintainsdiplomaticrelations:Provided,however,ThattheperformancebythesupplierofitsobligationsundertheprocurementcontractshallbecoveredbyaperformancesecurityinaccordancewithSection39ofthisIRR.(a)


53.9.SmallValueProcurement.WheretheprocurementdoesnotfallunderShoppinginSection52ofthisIRRandtheamountinvolveddoesnotexceedthethresholdsprescribedinAnnexHofthisIRR.(a)

53.9.1.Theprocuringentity53.9.2.ThethresholdsprescribedinAnnexHofthisIRR


53.10.LeaseofRealProperty.Leaseofprivatelyownedrealpropertyandvenueforofficialuse,subjecttoguidelinestobeissuedbytheGPPB.(a)


53.11.NGOParticipation.WhenanappropriationlaworordinanceearmarksanamounttobespecificallycontractedouttoNon-GovernmentalOrganizations(NGOs),theprocuringentitymayenterintoaMemorandumofAgreementwithanNGO,subjecttoguidelinestobeissuedbytheGPPB.(a)


53.12.CommunityParticipation.Where,intheinterestofprojectsustainabilityortoachievecertainspecificsocialobjectives,itisdesirableinselectedprojectcomponentstocallforparticipationoflocalcommunitiesinthedeliveryofservices,theprocuringentityshallproposetheprocedures,specifications,andcontractpackagingwhicharesubjecttotheapprovaloftheGPPB.(n)


53.13.UnitedNationsAgencies.ProcurementfromspecializedagenciesoftheUnitedNationsofanyofthefollowing:(a)smallquantitiesofoff-the-shelfgoods,primarilyinthefieldsofeducationandhealth;and(b)specializedproductswherethenumberofsuppliersislimited,suchasvaccinesordrugs.(n)


Section54.TermsandConditionsfortheuseofAlternativeMethods

54.1.SplittingofGovernmentContracts54.2.Foralternativemethodsofprocurement54.3.Inallinstancesofalternativemethods54.4.ExceptforLimitedSourceBidding54.5.Performanceandwarrantysecurities


54.1.SplittingofGovernmentContractsisnotallowed.SplittingofGovernmentContractsmeansthedivisionorbreakingupofGOPcontractsintosmallerquantitiesandamounts,ordividingcontractimplementationintoartificialphasesorsub-contractsforthepurposeofevadingorcircumventingtherequirementsoflawandthisIRR,especiallythenecessityofpublicbiddingandtherequirementsforthealternativemethodsofprocurement.


54.2.Foralternativemethodsofprocurement,advertisementandpostingasprescribedinSection21.2.1ofthisIRRmaybedispensedwith:Provided,however,ThattheBAC,throughitsSecretariat,shallposttheinvitationorrequestforsubmissionofpricequotationsforShoppingunderSections52.1(b)andNegotiatedProcurementunderSections53.1(two-failedbiddings)and53.9(smallvalueprocurement)ofthisIRRinthePhilGEPSwebsite,thewebsiteoftheprocuringentityconcerned,ifavailable,andatanyconspicuousplacereservedforthispurposeinthepremisesoftheprocuringentityforaperiodofseven(7)calendardays.(a)


54.3.Inallinstancesofalternativemethodsofprocurement,theBAC,throughtheSecretariat,shallpost,forinformationpurposes,thenoticeofawardinthePhilGEPSwebsite,thewebsiteoftheprocuringentityconcerned,ifavailable,andatanyconspicuousplacereservedforthispurposeinthepremisesoftheprocuringentity.(a)


54.4.ExceptforLimitedSourceBiddingunderSection49ofthisIRR,submissionofbidsecuritiesmaybedispensedwith.(n)


54.5.Performanceandwarrantysecurities,asprescribedinSections39and62ofthisIRR,shallbesubmittedforcontractsacquiredthroughthealternativemethodsofprocurement,exceptforShoppingunderSection52andNegotiatedProcurementunderSections53.2(emergencycases),53.9(smallvalueprocurement),53.10(leaseofrealproperty),and53.13(UNagencies).(n)


RULEXVII–PROTESTMECHANISM

Section55.ProtestsonDecisionsoftheBACSection56.ResolutionofProtestsSection57.Non-interruptionoftheBiddingProcessSection58.ResorttoRegularCourts;Certiorari


Section55.ProtestsonDecisionsoftheBAC

55.1.DecisionsoftheBAC55.2.Intheeventthattherequest55.3.Theprotestmustbefiledwithinseven(7)calendardays55.4.Theverifiedpositionpaper

RULEXVIIPROTESTMECHANISM

55.1.DecisionsoftheBACatanystageoftheprocurementprocessmaybequestionedbyfilingarequestforreconsiderationwithinthethree(3)calendardaysuponreceiptofwrittennoticeoruponverbalnotification.TheBACshalldecideontherequestforreconsiderationwithinseven(7)calendardaysfromreceiptthereof.Ifafailedbiddersignifieshisintenttofilearequestforreconsideration,theBACshallkeepthebidenvelopesofthesaidfailedbidderunopenedand/ordulysealeduntilsuchtimethattherequestforreconsiderationhasbeenresolved.(a)


55.2.Intheeventthattherequestforreconsiderationisdenied,decisionsoftheBACmaybeprotestedinwritingtotheHeadoftheProcuringEntity:Provided,however,ThatapriorrequestforreconsiderationshouldhavebeenfiledbythepartyconcernedinaccordancewiththeprecedingSection,andthesamehasbeenresolved.(a)


55.3.Theprotestmustbefiledwithinseven(7)calendardaysfromreceiptbythepartyconcernedoftheresolutionoftheBACdenyingitsrequestforreconsideration.AprotestmaybemadebyfilingaverifiedpositionpaperwiththeHeadoftheProcuringEntityconcerned,accompaniedbythepaymentofanon-refundableprotestfee.Thenon-refundableprotestfeeshallbeinanamountequivalenttonolessthanonepercent(1%)oftheABC.(a)


55.4.Theverifiedpositionpapershallcontainthefollowinginformation:a)Thenameofbidder;b)Theofficeaddressofthebidder;c)Thenameofproject/contract;d)Theimplementingoffice/agencyorprocuringentity;e)Abriefstatementoffacts;f)Theissuetoberesolved;andg)Suchothermattersandinformationpertinentandrelevanttotheproperresolutionoftheprotest.Thepositionpaperisverifiedbyanaffidavitthattheaffianthasreadandunderstoodthecontentsthereofandthattheallegationsthereinaretrueandcorrectofhispersonalknowledgeorbasedonauthenticrecords.Anunverifiedpositionpapershallbeconsideredunsigned,producesnolegaleffect,andresultstotheoutrightdismissaloftheprotest.


Section56.ResolutionofProtests

TheprotestsshallberesolvedstrictlyonthebasisofrecordsoftheBAC.TheHeadoftheProcuringEntityshallresolvetheprotestwithinseven(7)calendardaysfromreceiptthereof.SubjecttotheprovisionsofexistinglawsontheauthorityofDepartmentSecretariesandtheheadsofagencies,branches,constitutionalcommissions,orinstrumentalitiesoftheGOPtoapprovecontracts,thedecisionsoftheHeadoftheProcuringEntityconcernedshallbefinaluptothelimitofhiscontractapprovingauthority.WithrespecttoLGUs,thedecisionofthelocalchiefexecutiveshallbefinal.TheheadoftheBACSecretariatshallfurnishtheGPPBacopyofthedecisionresolvingtheprotestwithinseven(7)calendardaysfromreceiptthereof.

RULEXVII-PROTESTMECHANISM

Section57.Non-interruptionoftheBiddingProcess

InnocaseshallanyprotesttakenfromanydecisiontreatedinthisRulestayordelaythebiddingprocess:Provided,however,Thatprotestsmustfirstberesolvedbeforeanyawardismade.


Section58.ResorttoRegularCourts;Certiorari

58.1.Courtactionmayberesorted58.2.Thisprovisioniswithoutprejudice58.3.TheheadoftheBACSecretariat


58.1.CourtactionmayberesortedtoonlyaftertheprotestscontemplatedinthisRuleshallhavebeencompleted,i.e.,resolvedbytheHeadoftheProcuringEntitywithfinality.TheregionaltrialcourtshallhavejurisdictionoverfinaldecisionsoftheHeadoftheProcuringEntity.CourtactionsshallbegovernedbyRule65ofthe1997RulesofCivilProcedure.


58.2.ThisprovisioniswithoutprejudicetoanylawconferringontheSupremeCourtthesolejurisdictiontoissuetemporaryrestrainingordersandinjunctionsrelatingtoinfrastructureprojectsoftheGOP.


58.3.TheheadoftheBACSecretariatoftheprocuringentityconcernedshallensurethattheGPPBshallbefurnishedacopyofthecasesfiledinaccordancewiththisSection.


RULEXVIII–SETTLEMENTOFDISPUTES

Section59.ArbitrationSection60.Appeals


Section59.Arbitration

59.1.Ifanydisputeordifference59.2.Anyandalldisputesarising

RULEXVIII-SETTLEMENTOFDISPUTES

59.1.IfanydisputeordifferenceofanykindwhatsoevershallarisebetweenthepartiesinconnectionwiththeimplementationofthecontractcoveredbytheActandthisIRR,thepartiesshallmakeeveryefforttoresolveamicablysuchdisputeordifferencebymutualconsultation.(n)


59.2.AnyandalldisputesarisingfromtheimplementationofacontractcoveredbytheActandthisIRRshallbesubmittedtoarbitrationinthePhilippinesaccordingtotheprovisionsofRepublicActNo.876,otherwiseknownasthe"ArbitrationLaw"andRepublicActNo.9285,otherwiseknownastheAlternativeDisputeResolutionActof2004:Provided,however,That,disputesthatarewithinthecompetenceoftheConstructionIndustryArbitrationCommissiontoresolveshallbereferredthereto.TheprocessofarbitrationshallbeincorporatedasaprovisioninthecontractthatwillbeexecutedpursuanttotheprovisionsoftheActandthisIRR:Provided,further,That,bymutualagreement,thepartiesmayagreeinwritingtoresorttootheralternativemodesofdisputeresolution.(a)


Section60.Appeals

ThearbitralawardandanydecisionrenderedinaccordancewiththeforegoingSectionshallbeappealablebywayofapetitionforreviewtotheCourtofAppeals.ThepetitionshallraisepurequestionsoflawandshallbegovernedbytheRulesofCourt.

RULEXVIII-SETTLEMENTOFDISPUTES

RULEXIX–CONTRACTPRICESANDWARRANTIES

Section61.ContractPricesSection62.Warranty


Section61.ContractPrices

61.1.Forthegivenscopeofwork61.2.Incaseswherethecostoftheawardedcontract61.3.Anyrequestforpriceescalation61.4.Allcontractsshallbedenominated

RULEXIX–CONTRACTPRICESANDWARRANTIES

61.1.Forthegivenscopeofworkinthecontractasawarded,allbidpricesshallbeconsideredasfixedprices,andthereforenotsubjecttopriceadjustmentandescalationduringcontractimplementation,exceptunderextraordinarycircumstancesanduponpriorapprovaloftheGPPB,orwhenaTreatyorInternationalorExecutiveAgreementexpresslyallowsitpursuanttoSection4ofthisIRR.(a)


61.2.Incaseswherethecostoftheawardedcontractisaffectedbyanyapplicablenewlaws,ordinances,regulations,orotheractsoftheGOP,promulgatedafterthedateofbidopening,acontractpriceadjustmentshallbemadeorappropriatereliefshallbeappliedonanoloss-nogainbasis.(17a)


61.3.AnyrequestforpriceescalationunderextraordinarycircumstancesshallbesubmittedbytheconcernedentitytotheNationalEconomicandDevelopmentAuthority(NEDA)withtheendorsementoftheprocuringentity.Theburdenofprovingtheoccurrenceofextraordinarycircumstancesthatwillallowforpriceescalationshallrestwiththeentityrequestingforsuchescalation.NEDAshallonlyrespondtosuchrequestafterreceivingtheproofandthenecessarydocumentation.ForpurposesofthisSection,extraordinarycircumstancesshallrefertoeventsthatmaybedeterminedbytheNEDAinaccordancewiththeCivilCodeofthePhilippines,andupontherecommendationoftheprocuringentityconcerned.(a)


61.4.AllcontractsshallbedenominatedandpayableinPhilippinecurrency,andthisshallbestatedintheBiddingDocuments:Provided,however,ThatsubjecttotheguidelinesissuedbytheGPPB,theprocuringentitymayprovideintheBiddingDocumentsthatobligationsmaybepaidinforeigncurrency;Provided,further,Thatshouldtheprocuringentityreceivebidsdenominatedinforeigncurrency,thesameshallbeconvertedtoPhilippinecurrencybasedontheexchangerateprevailingonthedayofthebidopeningforpurposesofbidcomparisonandevaluation.(a)


Section62.Warranty

62.1.Fortheprocurementofgoods62.2.Fortheprocurementofinfrastructureprojects

RULEXIX-CONTRACTPRICESANDWARRANTIES

62.1.Fortheprocurementofgoods,inordertoassurethatmanufacturingdefectsshallbecorrectedbythesupplier,awarrantysecurityshallberequiredfromthecontractawardeeforaminimumperiodofthree(3)months,inthecaseofExpendableSupplies,oraminimumperiodofone(1)year,inthecaseofNon-expendableSupplies,afteracceptancebytheprocuringentityofthedeliveredsupplies.Theobligationforthewarrantyshallbecoveredbyeitherretentionmoneyinanamountequivalenttoatleasttenpercent(10%)ofeveryprogresspayment,oraspecialbankguaranteeequivalenttoatleasttenpercent(10%)ofthetotalcontractprice.Thesaidamountsshallonlybereleasedafterthelapseofthewarrantyperiodor,inthecaseofExpendableSupplies,afterconsumptionthereof:Provided,however,Thatthesuppliesdeliveredarefreefrompatentandlatentdefectsandalltheconditionsimposedunderthecontracthavebeenfullymet.(a)

Section62.Warranty

62.2.Fortheprocurementofinfrastructureprojects,thefollowingwarrantiesshallbemade:62.2.1.Fromthetimeprojectconstruction62.2.2.One(1)yearfromprojectcompletion62.2.3.Fromfinalacceptanceoftheproject62.2.4.IncaseofStructuralDefects/Failure

Section62.Warranty

RULEXX–THEGOVERNMENTPROCUREMENTPOLICYBOARD

Section63.OrganizationandFunctionsSection64.Membership


Section63.OrganizationandFunctions

63.1.TheGovernmentProcurementPolicyBoard63.2.TheGPPBTechnicalSupportOffice63.3.TheTSO63.4.Inadditiontothepowersgranted

RULEXX-THEGOVERNMENTPROCUREMENTPOLICYBOARD

63.1.TheGovernmentProcurementPolicyBoard(GPPB),asestablishedinSection63oftheAct,shallhavethefollowingdutiesandresponsibilities:a)Toprotectnationalinterestinallmattersaffectingpublicprocurement,havingdueregardtothecountrysregionalandinternationalobligations;

b)Toformulateandamendpublicprocurementpolicies,rulesandregulations,andamend,whenevernecessary,thisIRR;

c)Toprepareagenericprocurementmanualandthestandardbiddingformsforprocurement;

d)ToensuretheproperimplementationbyProcuringEntitiesoftheAct,thisIRRandallotherrelevantrulesandregulationspertainingtopublicprocurement;

e)ToestablishasustainabletrainingprogramtodevelopthecapacityofGovernmentprocurementofficersandemployees,andtoensuretheconductofregularprocurementtrainingprogramsbyandforProcuringEntities;and

f)ToconductanannualreviewoftheeffectivenessoftheActandrecommendanyamendmentsthereto,asmaybenecessary.TheGPPBshallbeundertheadministrativesupervisionoftheDBMforgeneraloversightandforbudgetingpurposes.


63.2.TheGPPBTechnicalSupportOfficeTheGPPBshallcreateaTechnicalSupportOffice(TSO)whichshallprovidesupportintheperformanceofitsdutiesandresponsibilitiesspecifiedintheActandthisIRR.TheGPPBshalldeterminetheTSOsorganizationalstructureandstaffing,subjecttoDBMapproval.TheTSOshallbeheadedbyanExecutiveDirectorofgoodmoralcharacter,unquestionableintegrity,andknownprobity.


63.3.TheTSOshallprovideresearch,technicalandadministrativesupporttotheGPPB,including:a)Research-basedprocurementpolicyrecommendationsandrule-drafting;

b)Developmentandupdatingofgenericprocurementmanualsandstandardbiddingforms;

c)Managementandconductoftrainingonprocurementsystemsandprocedures;

d)Evaluationoftheeffectivenessofthegovernmentprocurementsystemandrecommendationofimprovementsinsystemsandprocedures;

e)MonitoringthecompliancetotheActandassistingProcuringEntitiesimprovetheircompliance;

f)MonitoringtheimplementationandeffectivenessofthePHILGEPS;and

g)Secretariatsupport.


63.4.InadditiontothepowersgrantedundertheActandthisIRR,theGPPBshallabsorballthepowers,functionsandresponsibilitiesoftheProcurementPolicyBoardcreatedunderExecutiveOrderNo.359,seriesof1989.Allfunctionsrelatedtoprocurementpolicy-makingoftheInfrastructureCommitteeoftheNEDABoardaretransferredtotheGPPB.


Section64.Membership

TheGPPBshallbecomposedoftheSecretaryoftheDepartmentofBudgetandManagement,asChairman,theDirector-GeneralofNEDA,asAlternateChairman,withthefollowingasMembers;theSecretariesoftheDepartmentsofPublicWorksandHighways,Finance,TradeandIndustry,Health,NationalDefense,Education,InteriorandLocalGovernment,ScienceandTechnology,TransportationandCommunications,andEnergy,ortheirdulyauthorizedrepresentativesandarepresentativefromtheprivatesectortobeappointedbythePresidentupontherecommendationoftheGPPB.TheGPPBmayinviterepresentativesfromtheCOAorfromrelevantGovernmentagenciesandprivatesectorstoserveasresourcepersons.

RULEXX-THEGOVERNMENTPROCUREMENTPOLICYBOARD

RULEXXI–PENALCLAUSE

Section65.OffensesandPenaltiesSection66.Jurisdiction


Section65.OffensesandPenalties

65.1.Withoutprejudicetotheprovisions65.2.Privateindividuals65.3.Privateindividualswhocommitanyofthefollowingacts65.4.Itisunderstoodthattheabovepenalties65.5.Whenthebidderisajuridicalentity

RULEXXI-PENALCLAUSE

65.1.WithoutprejudicetotheprovisionsofR.A.3019andotherpenallaws,publicofficerswhocommitanyofthefollowingactsshallsufferthepenaltyofimprisonmentofnotlessthansix(6)yearsandone(1)day,butnotmorethanfifteen(15)years:a)OpeninganysealedbidincludingbutnotlimitedtoBidsthatmayhavebeensubmittedthroughtheelectronicsystemandanyandalldocumentsrequiredtobesealedordivulgingtheircontents,priortotheappointedtimeforthepublicopeningofBidsorotherdocuments.

b)Delaying,withoutjustifiablecause,thescreeningforeligibility,openingofbids,evaluationandpostevaluationofbids,andawardingofcontractsbeyondtheprescribedperiodsofactionprovidedforinthisIRR.

c)UndulyinfluencingorexertingunduepressureonanymemberoftheBACoranyofficeroremployeeoftheprocuringentitytotakeaparticularactionwhichfavors,ortendstofavoraparticularbidder.

d)Splittingofcontractswhichexceedproceduralpurchaselimitstoavoidcompetitivebiddingortocircumventthelimitsofapprovingorprocurementauthority.

e)AbusebytheHeadoftheProcuringEntityofhispowertorejectanyandallbidsasmentionedunderSection41oftheActandthisIRR,withmanifestpreferencetoanybidderwhoiscloselyrelatedtohiminaccordancewithSection47oftheActandthisIRR.Whenanyoftheforegoingactsisdoneincollusionwithprivateindividuals,theprivateindividualsshalllikewisebeliablefortheoffense.Inaddition,thepublicofficerinvolvedshallalsosufferthepenaltyoftemporarydisqualificationfrompublicoffice,whiletheprivateindividualshallbepermanentlydisqualifiedfromtransactingbusinesswiththeGovernment.


65.2.Privateindividualswhocommitanyofthefollowingacts,andanypublicofficerwhoconspireswiththem,shalluponconviction,sufferthepenaltyofimprisonmentofnotlessthansix(6)yearsandone(1)daybutnotmorethanfifteen(15)years:a)Whentwoormorebiddersagreeandsubmitdifferentbidsasbonafidebidders,allthewhileknowingthatthebid(s)ofoneormoreofthemwassomuchhigherthantheotherthatthelattercouldnotbehonestlyacceptedandthatthecontractwillsurelybeawardedtothepre-arrangedlowestbid.

b)Whenabiddermaliciouslysubmitsdifferentbidsthroughtwoormorepersons,corporations,partnershipsoranyotherbusinessentityinwhichhehasaninterest,tocreatetheappearanceofcompetitionthatdoesnotinfactexistsoastobeadjudgedasthewinningbidder.

c)Whentwoormorebiddersenterintoanagreementwhichcallsupononeormoreofthemtorefrainfrombiddingforprocurementcontracts,orwhichrequiresoneormoreofthemtowithdrawBidsalreadysubmitted,inordertosecureanundueadvantagetoanyoneofthem.

d)Whenabidder,byhimselforinconnivancewithothers,employsschemeswhichtendtorestrainthenaturalrivalryofthepartiesoroperatestostifleorsuppresscompetitionandthusproducearesultdisadvantageoustothepublic.Inaddition,thepublicofficerpersonsinvolvedshallalsosufferthepenaltyoftemporaryorperpetualdisqualificationfrompublicofficeandtheprivateindividualshallbepermanentlydisqualifiedfromtransactingbusinesswiththeGovernment.


65.3.Privateindividualswhocommitanyofthefollowingacts,andanypublicofficerconspiringwiththem,shalluponconviction,sufferthepenaltyofimprisonmentofnotlessthansix(6)yearsandone(1)daybutnotmorethanfifteen(15)years:a)Submittingeligibilityrequirementsofwhateverkindandnaturethatcontainfalseinformationorfalsifieddocumentscalculatedtoinfluencetheoutcomeoftheeligibilityscreeningprocessorconcealsuchinformationintheeligibilityrequirementswhentheinformationwillleadtoadeclarationofineligibilityfromparticipatinginpublicbidding.

b)SubmittingBiddingDocumentsofwhateverkindandnaturethatcontainfalseinformationorfalsifieddocumentsorconcealsuchinformationintheBiddingDocuments,inordertoinfluencetheoutcomeofthepublicbidding.

c)Participatinginapublicbiddingusingthenameofanotherorallowinganothertouseonesnameforthepurposeofparticipatinginapublicbidding.

d)Withdrawingabid,afteritshallhavequalifiedastheLowestCalculatedBid/HighestRatedBid,orrefusingtoacceptanaward,withoutjustcauseorforthepurposeofforcingtheprocuringentitytoawardthecontracttoanotherbidder.Thisshallincludethenon-submissionwithintheprescribedtime,ordelayingthesubmissionofrequirementssuchas,butnotlimitedto,performancesecurity,preparatorytothefinalawardofthecontract.


65.4.Itisunderstoodthattheabovepenaltiesandoffensesshallcoveralltypesofprocurementwhetherdonemanuallyorelectronically.


65.5.Whenthebidderisajuridicalentity,criminalliabilityandtheaccessorypenaltiesshallbeimposedonitsdirectors,officersoremployeeswhoactuallycommitanyoftheforegoingacts.IfapersonpreviouslyheldliableorfoundguiltyundertheprovisionsoftheActandthisIRRhasacontrollinginterestinaprospectivebidder-entity,thesaidbidder-entityshallbedisqualifiedtoparticipateinanyprocurementactivitybeingconductedbytheGovernment.


Section66.Jurisdiction

JurisdictionovertheoffensesdefinedunderthisRuleshallbelongtotheappropriatecourts,accordingtolawsexistingatthetimeofthecommissionoftheoffenses.

RULEXXI-PENALCLAUSE

RULEXXII–CIVILLIABILITY

Section67.CivilLiabilityinCaseofConvictionSection68.LiquidatedDamages


Section67.CivilLiabilityinCaseofConviction

Withoutprejudicetoadministrativesanctionsthatmaybeimposedinpropercases,aconvictionundertheActandthisIRRorR.A.3019shallcarrywithitcivilliability,whichmayeitherconsistofrestitutionforthedamagedoneortheforfeitureinfavorofthegovernmentofanyunwarrantedbenefitderivedfromtheactoractsinquestion,orboth,atthediscretionofthecourts.

RULEXXII-CIVILLIABILITY

Section68.LiquidatedDamages

AllcontractsexecutedinaccordancewiththeActandthisIRRshallcontainaprovisiononliquidateddamageswhichshallbepayablebythecontractorincaseofbreachthereof.Fortheprocurementofgoods,infrastructureprojectsandconsultingservices,theamountoftheliquidateddamagesshallbeatleastequaltoone-tenthofonepercent(0.1%)ofthecostoftheunperformedportionforeverydayofdelay.Oncethecumulativeamountofliquidateddamagesreachestenpercent(10%)oftheamountofthecontract,theprocuringentityshallrescindthecontract,withoutprejudicetoothercoursesofactionandremediesopentoit.

RULEXXII-CIVILLIABILITY

RULEXXIII–ADMINISTRATIVESANCTIONS

Section69.ImpositionofAdministrativePenaltiesSection70.PreventiveSuspensionSection71.LiftingofSuspensionandRemovalofAdministrativeDisabilities


Section69.ImpositionofAdministrativePenalties

69.1.InadditiontotheprovisionsofRulesXXIandXXIIofthisIRR69.2.Inadditiontothepenaltyofsuspension69.3.TheHeadoftheProcuringEntity69.4.Theproceduresforthesuspension

RULEXXIII-ADMINISTRATIVESANCTIONS

69.1.InadditiontotheprovisionsofRulesXXIandXXIIofthisIRR,theHeadoftheProcuringEntity,subjecttotheauthoritydelegatedtotheBAC,ifany,shallimposeonbiddersorprospectivebidders,theadministrativepenaltyofsuspensionforone(1)yearforthefirstoffense,andsuspensionoftwo(2)yearsforthesecondoffensefromparticipatinginthepublicbiddingprocess,aswellasdisqualificationfromfurtherparticipatinginthepublicbiddingbeingundertakenbytheprocuringentityconcerned,whereapplicable,forthefollowingviolations:a)Submissionofeligibilityrequirementscontainingfalseinformationorfalsifieddocuments.

b)SubmissionofBidsthatcontainfalseinformationorfalsifieddocuments,ortheconcealmentofsuchinformationintheBidsinordertoinfluencetheoutcomeofeligibilityscreening,oranyotherstageofthepublicbidding.

c)Allowingtheuseofonesname,orusingthenameofanotherforpurposesofpublicbidding.

d)Withdrawalofabid,orrefusaltoacceptanaward,orenterintocontractwiththeGovernmentwithoutjustifiablecause,afterhehadbeenadjudgedashavingsubmittedtheLowestCalculatedResponsiveBidorHighestRatedResponsiveBid.

e)Refusalorfailuretoposttherequiredperformancesecuritywithintheprescribedtime.

f)Terminationofthecontractduetothedefaultofthebidder.

g)Refusaltoclarifyorvalidateinwritingitsbidduringpost-qualificationwithinaperiodofseven(7)calendardaysfromreceiptoftherequestforclarification.

h)Anydocumentedattemptbyabiddertoundulyinfluencetheoutcomeofthebiddinginhisfavor.

i)Allotheractsthattendtodefeatthepurposeofthecompetitivebidding,suchashabituallywithdrawingfrombidding,submittinglateBidsorpatentlyinsufficientbid,foratleastthree(3)timeswithinayear,exceptforvalidreasons.(a)


69.2.Inadditiontothepenaltyofsuspension,thebidsecurityortheperformancesecuritypostedbytheconcernedbidderorprospectivebiddershallalsobeforfeited.


69.3.TheHeadoftheProcuringEntitymaydelegatetotheBACtheauthoritytoimposetheaforementionedadministrativepenalties.


69.4.Theproceduresforthesuspensionorblacklistingofsuppliers,contractors,orconsultantsforGOPprojectsshallbeundertakeninaccordancewiththeguidelinesissuedbytheGPPB.


Section70.PreventiveSuspension

TheHeadoftheProcuringEntitymaypreventivelysuspendanymemberoftheTechnicalWorkingGrouportheSecretariat,ortheBAC,iftherearestrongreasonsorprimafacieevidenceshowingthattheofficialsoremployeesconcernedareguiltyofthechargesfiledagainstthemunderRulesXXIandXXIIofthisIRR,orfordishonestyasdefinedbytheCivilServiceLaws.ForuniformedpersonneloftheAFP,thesubstantiveandproceduraldueprocessunderitsjusticesystemshallbeapplied.Inallcases,dueprocessasmandatedbytheConstitutionandCivilServicelaws,rulesandregulations,shallbestrictlyobserved.


Section71.LiftingofSuspensionandRemovalofAdministrativeDisabilities

Liftingofpreventivesuspensionpendingadministrativeinvestigation,aswellasremovalofadministrativepenaltiesanddisabilitiesshallbeinaccordancewiththeprovisionsofSections52and53,Chapter6,SubtitleA(CivilServiceCommission),TitleI,BookVofExecutiveOrderNo.292,otherwiseknownastheAdministrativeCodeof1987.


RULEXXIV-LEGALASSISTANCEANDINDEMNIFICATIONOFBACMEMBERS

Section72.PrivateLegalAssistanceSection73.IndemnificationofBACMembers


Section72.PrivateLegalAssistance

AllthemembersoftheBACareherebyauthorizedtoengagetheservicesofprivatelawyersorexternalcounselimmediatelyuponreceiptofCourtNoticethatacivilorcriminalaction,suitorproceedingisfiledagainsttheminconnectionwiththelawfulperformanceoftheirofficialfunctionsanddutiesasBACmembers.Thelawyer'sfeeshallbepartoftheindemnificationpackagefortheBACmembers,subjecttotheprovisionsofSection73oftheActandthisIRR.ForpurposesofthisRule,theBACmembersshallbeunderstoodtoincludeitssupportstaff,suchasthemembersoftheTWGandtheBACSecretariat.


Section73.IndemnificationofBACMembers

73.1.TheGPPBshallestablishanequitableindemnification73.2.Intheeventofasettlementorcompromise73.3.ThemembersoftheBAC


73.1.TheGPPBshallestablishanequitableindemnificationpackageforpublicofficialsprovidingservicesinandfortheBAC,whichmaybeintheformoffreelegalassistance,liabilityinsurance,andotherformsofprotectionandindemnificationforallreasonablefees,costs,andexpensesincurredbysuchpersonsinconnectionwithanyadministrative,civilorcriminalaction,suitorproceedingtowhichtheymaybe,orhavebeenmade,aparty,byreasonofthelawfulperformanceoftheirofficialfunctionsandduties,unlesstheyarefinallyadjudgedinsuchactionorproceedingtobeliableforgrossnegligenceormisconductorgraveabuseofdiscretion,orotherwiseheldliableorguiltyofthecomplaintsorcharges.


73.2.Intheeventofasettlementorcompromise,indemnificationshallbeconfinedonlyonmatterscoveredbythesettlement,forwhichtheprocuringentityhadbeenadvisedbycounsel,that,thepublicofficialstobeindemnifiedhavenotcommittedgrossnegligenceormisconductorgraveabuseofdiscretionintheperformanceoftheirfunctionsandduties.


73.3.ThemembersoftheBACanditssupportstaff,suchasthemembersoftheTWGandtheBACSecretariat,shallalsobeentitledtomedicalassistanceforinjuriesincurredintheperformanceoftheirfunctions.


RULEXXV-FINALPROVISIONS

Section74.AmendmentSection75.RepealingClauseSection76.SeparabilityClauseSection77.TransitoryClauseSection78.EffectivityClause


Section74.Amendment

74.1.Astheneedarises,thisIRRmaybeamendedbytheGPPB.(a)

74.2.AnyamendmenttothisIRRshallbeapplicabletoallprocurementactivities,theadvertisementorinvitationofwhichwereissuedafterthedateofeffectivityofthesaidamendment.


Section75.RepealingClause

TheActrepealsE.O.40,entitledConsolidatingProcurementRulesandProceduresforAllNationalGovernmentAgencies,Government-Ownedor-ControlledCorporationsand/orGovernmentFinancialInstitutions,andRequiringtheUseoftheGovernmentElectronicProcurementSystem;ExecutiveOrderNo.262,seriesof2000,entitled"AmendingExecutiveOrderNo.302,seriesof1996,entitled"ProvidingPolices,Guidelines,RulesandRegulationsfortheProcurementofGoods/SuppliesbytheNationalGovernment"andSec.Three(3)ofExecutiveorderNo.201,seriesof2000,entitled"ProvidingAdditionalPoliciesandGuidelinesintheProcurementofGoods/SuppliesbytheNationalGovernment;"ExecutiveOrderNo.302,seriesof1996,entitled"ProvidingPolicies,Guidelines,RulesandRegulationsfortheProcurementofGoods/SuppliesbytheNationalGovernment"andPresidentialDecreeNo.1594(P.D.1594),datedJune11,1978,entitledPrescribingPolicies,Guidelines,RulesandRegulationsforGovernmentInfrastructureContracts;"andtherelevantprovisionsofRepublicActNo.7898datedFebruary23,1995,entitledAnActProvidingfortheModernizationoftheArmedForcesofthePhilippinesandforOtherPurposes.ThislawamendsTitleSix,BookTwoofRepublicActNo.7160(R.A.7160),otherwiseknownastheLocalGovernmentCodeof1991,"and,infurtherancethereto,ChapterFive,TitleOne,BookOneofthesamelaw;therelevantprovisionsofExecutiveOrderNo.164,seriesof1987,entitled"ProvidingAdditionalGuidelinesintheProcessingandApprovalofContractsoftheNationalGovernment."Anyotherlaw,presidentialdecreeorissuance,executiveorder,letterofinstruction,administrativeorder,proclamation,charter,ruleorregulationand/orpartsthereofcontrarytoorinconsistentwiththeprovisionsoftheActisherebyrepealed,modifiedoramendedaccordingly.ThisIRRrepealsMemorandumOrderNo.119dated18September2003,otherwiseknownastheImplementingRulesandRegulationsPartAandrelevantportionsofExecutiveOrderNo.301,seriesof1987entitledDecentralizingActionsonGovernmentNegotiatedContracts,LeaseContractsandRecordsDisposal.Anyotherissuance,executiveorder,administrativeorder,proclamation,charter,ruleorregulationand/orpartsthereofcontrarytoorinconsistentwiththeprovisionsofthisIRRisherebyrepealed,modifiedoramendedaccordingly.(a)


Section76.SeparabilityClause

IfanyprovisioninthisIRR,orapplicationofsuchprovisiontoanycircumstance,isdeclaredinvalidorunconstitutional,theotherprovisionsnotaffectedtherebyshallremainvalidandsubsisting.


Section77.TransitoryClause

77.1.Inallprocurementactivities,iftheadvertisementorinvitationforbidswasissuedpriortotheeffectivityoftheAct,theprovisionsofE.O.40anditsIRR,P.D.1594anditsIRR,R.A.7160anditsIRR,orotherapplicablelaws,asthecasemaybe,shallgovern.(a)

77.2.IncaseswheretheadvertisementsorinvitationsforbidswereissuedbeforetheeffectivityofthisIRR,ProcuringEntitiesmaycontinueadoptingtheprocurementprocedures,rules,andregulationsprovidedintheIRRPartAorotherapplicablelaws,asthecasemaybe.(a)


Section78.EffectivityClause

ThisIRRshalltakeeffectthirty(30)calendardaysafteritspublicationintheOfficialGazetteorinanewspaperofgeneralnationwidecirculationanduponfilingwiththeUniversityofthePhilippinesLawCenterofthree(3)certifiedcopiesofthisIRR.(a)
