LIMITED SOURCE

BIDDING
LEARNING OBJECTIVE/S:
Differentiate LSB from other modes of
procurement
Identify the requirements/conditions for LSB
Become familiar with the steps in LSB

LIMITED SOURCE BIDDING

It is a method of procurement of goods and consulting

services that involves the issuance of a direct invitation

to bid by the concerned procuring entity to a set of preselected consultants with known experience and proven
capability to provide the services required in a particular
contract.

Applicability
1. Procurement of highly specialized
types of and consulting services where
only a few consultants are known to be
available
2. Procurement of major plant
components where it is deemed
advantageous to limit the bidding to
known qualified bidders to maintain
uniform quality and performance of the
plant as a whole.

Procedure

Invite listed
consultants to bid
Secure list of
consultants
BAC
Recommendation
of LSB/
Plan to use LSB

Proceed to steps
in Competitive
Bidding
those after posting/
advertising

Period:

After procurement preparations

Participants: HOPE;
BAC;
TWG;
BAC Secretariat
Invited suppliers/consultants; and
Observers.

Requisites:

BAC Resolution regarding change of procurement

mode (when applicable)
GAA

Purpose:

To allow the use of alternative methods of

procurement for administrative convenience.

Tasks:

Securing list of consultants

Inviting listed consultants to bid

Bidders to be Invited
Procuring

entity shall consider only those suppliers or

consultants appearing in a list maintained by the relevant
government authority that has expertise in the type of
procurement concerned.

The pre-selection shall be based upon the capability and

resources of the bidders to perform the contract taking into

account their experience and past performance on similar
contracts, capabilities with respect to personnel equipment or
manufacturing facilities, and financial position.
The BAC of the concerned procuring entity shall directly invite

all the consultants appearing in the pre-selected list.

ACTIVITY 1:
True or False:
Determine if the statement is true or false.
Provide an explanation for your answers.
1. There is no need to shortlist consultants when using LSB
since the invited consultants are all deemed qualified.
2. In procurement through LSB there is no need to post or
advertise the REI.

3. Pre-bid conference is dispensed with in procurement through

LSB.

DISCUSSION 1:
There is no need to shortlist
consultants when using LSB
since the invited consultants
are all deemed qualified.

FALSE. Shortlisting is still required. In

LSB, the BAC still has to shortlist
consultants invited based on the criteria
provided in the Invitation to Bid (ITB) and
other bidding documents.

In procurement through LSB TRUE. The BAC Secretariat sends the

there is no need to post or
ITB to all the pre-selected consultants.
advertise the REI.
Pre-bid conference is
dispensed with in
procurement through LSB.

FALSE. The need for Pre-bid conference

depends on the circumstances
surrounding the procurement at hand
ABC of P 1M or more, discretion of the
BAC, written request by a bidder.

ACTIVITY 2:
Scenario:
The DOH is planning week-long workshop to train its staff

in implementing the RH law. The BAC has already

procured the consultants who will conduct the training and
the venue for the activity.
The

venue does not allow non-accredited caterers.

Because of the restriction, the BAC decided to procure
accredited caterers through Limited Source Bidding.

Is the BAC correct? Why? Why not?

DISCUSSION 2:
Suggested Answer: NO. The BAC is incorrect.
Catering Services are available from and is being offered

by various companies in the country, and does not involve

highly specialized requirements, and is undoubtedly not a
major plant component.
Limited Source Bidding cannot be resorted to in the

procurement of Catering Services. Competitive Bidding

should be resorted to in the acquisition of the
contemplated service.
Note: Catering Services is a general service.