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Salient IRR Revisions

Alternative Methods of
Procurement
IRR: Alternative Methods
 General Rule: Public Bidding
 APP provides sufficient lead time for bidding

 Resort to Alternative Methods allowed-


 Highly exceptional cases
 To promote economy and efficiency
 Justified by conditions specified in IRR
IRR: Alternative Methods
 Limited Source Bidding (Sec. 49)

 Procedure for pre-selection shall be outlined in


Generic Procurement Manual
 Invitation shall be advertised
 Those who meet specified criteria shall be pre-
selected
 List shall be updated periodically
IRR: Alternative Methods
 Limited Source Bidding (Sec. 49)

 List to be maintained by relevant government


authority
 Procuring entity may be the relevant government
authority
 Submitted to GPPB
IRR: Alternative Methods
 Shopping and Small Value Procurement (Secs.
52 & 53.9)

 Higher thresholds set for shopping and small value


procurement
 Guidelines to follow

 For Foreign-funded procurement, thresholds shall


be agreed upon between GOP and foreign
government/institution
Shopping & Small Value Procurement

Higher Threshold Amount for Unforeseen Contingencies

 NGAs, GOCCs, GFIs, SUCs – P100,000

 LGUs –

Classification Maximum Amount (in Philippine Pesos)


Province City Municipality
1st Class 100,000 100,000 50,000
2nd Class 100,000 100,000 50,000
3rd Class 100,000 80,000 50,000
4th Class 80,000 60,000 50,000
5th Class 60,000 50,000 50,000
6th Class 50,000 50,000 50,000
In the case of Barangays, the maximum amount is P50,000
Shopping & Small Value Procurement

Higher Threshold Amount for Regular Office Supplies and Small


Value Procurement

 NGAs, GOCCs, GFIs, SUCs – P500,000

 LGUs –

Classification Maximum Amount (in Philippine Pesos)


Province City Municipality
1st Class 500,000 500,000 100,000
2nd Class 500,000 500,000 100,000
3rd Class 500,000 400,000 100,000
4th Class 400,000 300,000 50,000
5th Class 300,000 200,000 50,000
6th Class 200,000 100,000 50,000
In the case of Barangays, the maximum amount is P50,000
IRR: Alternative Methods
 Negotiated Procurement (Sec. 53)

 Clearer rules on two-failed bidding

 Additional instances of negotiated procurement


IRR: Alternative Methods
 Recap: Failure of Bidding (Sec. 35)

 Mandatory review after each failed bidding

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

 Rebid
 Invite previous bidders
IRR: Alternative Methods
 Two-Failed Bidding (Sec. 53.1)

 Mandatory review and agree on the following:


 Minimum technical specifications
 ABC adjusted only up to 20%

 Invite sufficient number to ensure competition

 Information communicated on an equal basis


IRR: Alternative Methods
 Two-Failed Bidding (Sec. 53.1, cont.)

 Simultaneous negotiations

 Submission of best and final offer on a specified


date
IRR: Alternative Methods
 Two-Failed Bidding (Sec. 53.1, cont.)

 Successful offer to be selected:


 Meet minimum technical specifications
 Does not exceed ABC

 Observers shall be invited in all stages


IRR: Alternative Methods
 Distinction between the following:

 Agency-to-Agency (Sec. 53.5)


 GOCCs formed under the Corporation Code excluded
 Implementing Guidelines on A2A

 Procurement Agent (Sec. 53.6)

 By Administration (Sec. 7.3.2[a])


IRR: Alternative Methods
 Additional
instances of Negotiated
Procurement:

 Lease of Real Property (Sec. 53.10)


 Include lease of venues
 Guidelines to follow
IRR: Alternative Methods
 Additional instances of Negotiated Procurement:

 Community Participation (Sec. 52.12)


 Local community participation in service delivery
 Project sustainability
 Meet social objectives
 Procuring entity shall propose (procedures, specifications
and contract packaging)
 Subject to GPPB approval
IRR: Alternative Methods
 Additional
instances of Negotiated
Procurement:

 United Nations Agencies (Sec. 52.13)


 Small quantities of off-the-shelf goods (education and
health)
 Specialized products (vaccines or drugs)
IRR: Alternative Methods
 Other Terms and Conditions

 In all instances, the most advantageous price for


government should be obtained (Sec. 48.1)

 Splitting of contracts is not allowed (Sec. 54.1)


IRR: Alternative Methods
 Other Terms and Conditions (Sec. 54)

 Posting not necessary, except:


 shopping [Sec. 52.1(b)],
 two-failed biddings [Sec. 53.1]
 small value procurement [Sec. 53.9]

 But all awards to be posted


IRR: Alternative Methods
 Other Terms and Conditions (Sec. 54)

 Bid securities not necessary, except:


 Limited Source Bidding (Sec. 49)
IRR: Alternative Methods
 Other Terms and Conditions (Sec. 54)

 Performance and Warranty Securities necessary,


except
 Shopping [Sec. 52]

 Emergency Cases [Sec. 53.2]

 Small value procurement [Sec. 53.9]

 Lease of real property [Sec. 53.10]

 Procurement from UN agencies [Sec. 53.13]


Thank you
 Comments, questions?

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