CONSOLIDATED GUIDELINES IN PREPARING

TECHNICAL SPECIFICATIONS

I. DEFINITIONS

Based on the GPPB Manual of Procedures for the Procurement of Goods and
Services, the following terms are hereby defined:

The term technical specifications refers to the physical description of the goods or
services, as well as the Procuring Entitys requirements in terms of the functional,
performance, environmental interface and design standard requirements to be met by
the goods to be manufactured or supplied, or the services to be rendered. The technical
specifications must include the testing parameters for goods, when such testing is
required in the contract.

Functional description is the description of the functions for which the Goods are to
be utilized. For example, a ball pen is expected to write 1.5 km of straight, continuous
lines.

Performance description refers to the manner that the Goods are required to
perform the functions expected of them. For example, a ball pen that writes at 1.5km
should do so continuously and smoothly, without skipping, and with the color of the ink
being consistent.

Environmental interface refers to the environment in which the required functions are
performed at the desired level. For example, a ball pen should write continuously for
1.5km on pad paper or bond paper, but not necessarily on wood or on a white board.

Design refers to the technical design or drawing of the goods being procured. A
design standard is particularly useful in cases where the goods procured are specially
manufactured for the Procuring Entity. For example, in procuring BDA for the PA, there
is specific pattern of color and shade that the BDA should follow.

II. CONSIDERATIONS

According to the GPPB-TSO, the specification for goods should (1) identify minimum
requirements, (2) allow for competition, (3) provide means to benchmark products
against other products, and stated requirements, (4) enable effective and
objective evaluation, and (5) support best value purchasing.

In determining the technical specifications of the goods it will procure, the PMO or end-
user unit must consider the objectives of the project or the procurement at hand, and
identify the standards that should be met by the goods in terms of function,
performance, environmental interface and/or design. It must also conduct a market
survey that will include a study of the available products or services, industry
developments or standards, product or service standards specified by the authorized
government entity like the Bureau of Product Standards, ISO9000 or similar local or
international bodies.

As a rule, Philippine standards, as specified by the Bureau of Product Standards, must

be followed. For products where there are no specified Philippine standards, the
standards of the country of origin or other international body may be considered.
Product brochures, technical publications, industry newsletters, the industry itself, as
well as the Internet, are good sources of product information. The conduct of a
comparative study of the options available in the market and their relevance to the
requirements of the Project is highly recommended

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In-house experts who are part of the TWG or the PMO must likewise be tapped to
provide technical advice. If there are no in-house experts available to provide advice on
highly technical Goods, the Procuring Entity may hire consultants to assist it in
developing the technical specifications for the procurement at hand.

III. LIMITATIONS

Reference to brand names

It is important to note that the use of brand names is prohibited by the IRR-A.
Specifications for the procurement of goods shall be based on relevant characteristics
and/or performance requirements. Hence, a generic description of the product or
service must be used.

NPM 002-2009 dated 9 January 2009 provides that while procuring entities can make
the technical specifications in their bid documents more detailed, to encourage
competition, however, they cannot "tailor fit" to a particular brand. Furthermore,
inclusion in the bid documents of such detailed design and technical descriptions that
leave the procuring entity no other option but to procure from a particular brand or
supplier defeats the very essence and purpose of public bidding

Under NPM 013-2011 dated 21 June 2011, GPPB opined that under Section 43.1.1 of
the Implementing Rules and Regulations (IRR) of Republic Act (RA) 9184, consistent
with the obligations of the Philippines under international treaties or agreement, goods
may be obtained from domestic or foreign sources and the procurement shall be open
to all eligible suppliers, manufacturers, and distributors. As such, although procuring
entities are given leeway in formulating the specifications in the terms of reference, they
cannot limit the origin of goods to their preferred countries of origin to the
exclusion of other countries.

Section 18 of the IRR is limited to the prohibition on specifying the brand name of the
items to be procured and does not apply to prohibition on restriction of sources by
country of origin. Although said section mandates specifications to be based on
performance requirements, it does not provide basis for restricting country of origin. As
discussed above, the proven quality, durability, and workmanship of the equipment to be
procured may be tested, not on the basis of its country of origin, but on the basis of
recognized industry standards.

Also, NPM 026-2004 dated 8 March 2004 provide for certain limitations in procuring
computer products. It provides that since only few software companies comply with
Gartner Standard, it clearly excludes the rest who may desire to participate in the
bidding, thereby defeating the concept of competition.

One of the governing principles of R.A. 9184 is ensuring competitiveness among all
private contracting parties. By requiring a specific brand or a particular standard
pertinent only to a certain software or program developer as yardstick, either for a
product or a set of standards, will cater to the disadvantage of bidders whose products,
although not of the same brand name, can equally comply with the procuring entitys
desired output.

In this regard, although the use of the Gartner Standard as basis for developing the
technical specifications for your agencys procurement of ERP software may be
allowed, the TOR cannot expressly include or specifically state the term Gartner
Standard in defining the technical requirements and in determining compliance
on the technical specifications.

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Exceptions

While NPM 158-2012 provides that the prohibition is absolute in its terms and bars any
exception as it is restrictive or preventive of any healthy competition and creates an
uneven playing field, NPM 002-2209 allows certain exceptions. The said issuance
provides that in such case where the procurement from a specific brand is necessary,
indispensable and justified under the pertinent Rules, alternative methods may be
availed of.

This is further amplified by the amendments introduced by the 2016 Revised

Implementing Rules and Regulations of Republic Act 9184 which provides under
Section 18 thereof that reference to brand names shall not be allowed EXCEPT for
items or parts that are compatible with the existing fleet or equipment of the same make
or brand, and to maintain the performance, functionality and useful life of the equipment.

Scope of prohibition

However, NPM 032-2014 dated 08 October 2014 clarified that the prohibition against
reference to brand names applies only to procurement of goods. Consequently,
materials included in the procurement of Infrastructure Projects are beyond the ambit of
the prohibition. This is on the assumption that the infrastructure materials were procured
together with the Infrastructure Project itself. However, it would be different if the
infrastructure materials will be procured separately from the Infrastructure Project. In
which case, the procurement of infrastructure materials may be considered as
Procurement of Goods that is covered by the restriction against reference to brand
names.

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