BIDDING PROCEDURES FOR THE

PROCUREMENT
OF GOODS AND SERVICES
CAPACITY DEVELOPMENT DIVISION
Government Procurement Policy Board
Technical Support Office (GPPB-TSO)

GENERAL MODE OF PROCUREMENT

Procurement is done through Competitive

Bidding. (Sec. 10 RA 9184; NPM 67-2012)

Exception:
Procurement.

Alternative

Methods

of

COMPETITIVE BIDDING
WHAT IS COMPETITIVE BIDDING?
It is a method of procurement which is open to
participation by any interested party and which
consists of the following processes: eligibility
screening of prospective bidders, evaluation of bids,
post-qualification, and award of contract. (Section
5(e) of RA 9184 and its IRR)

COMPETITIVE BIDDING
Garcia vs. Burgos (291 SCRA 546)
By its nature and characteristics, a competitive
public bidding
aims to protect public interest by
giving the public the best
possible advantages
through open competition
COA vs. RTC-NCRJR (GR NO. 85285, 7/7/89)
Purpose is to avoid/preclude suspicion of favoritism
and anomalies in the execution of public contracts.

COMPETITIVE BIDDING
Municipal Order requiring an accreditation
process for Bidders as a condition precedent for
their participation in procurement activities of the
local government unit runs counter RA 9185 and
its IRR would limit the participation of bidders
only to those accredited suppliers, to the
exclusion and prejudice of other bidders in the
market, it in fact contravenes the very basic
principles of competitive bidding. (NPM 47-2013)

STANDARDIZED BIDDING PROCEDURE

FOR GOODS AND SERVICES
Pre-Procurement
Conf.

Submission of
Bids

Bid Evaluation
& Ranking

Advertisement

Pre-Bid
Conference

Opening of
1st Env. - Eligibility
Docs & Technical
Proposal

Opening of 2nd
Envelope Financial
Proposal

Post-qualification

Award of
Contract

I. PRE-PROCUREMENT
CONFERENCE
Purpose: Determine readiness of procurement
Conducted prior to advertisement/posting of the
Invitation to Bid
Mandatory for projects with ABC above PhP 2M
Attended by the following:
a)BAC
b)BAC Secretariat
c)TWG
d)Consultants
e)End-user unit/Other officials

REFERENCE TO BRAND NAMES

Section 18 of RA 9184 and its IRR
Applicable only to procurement of goods
Specifications should be based on relevant
characteristics and performance requirements.
Prohibition includes reference to country of origin
pursuant to Section 43.1.1 of the IRR of RA 9184.
-PEs are precluded from requiring specific country of origin as
part of the technical specifications for the project.
-Specifications shall be based on the performance
requirements and recognized industry standards and not on
the basis of country of origin.
(NPM 22-2013)
8

II. ADVERTISEMENT/POSTING OF
THE INVITATION TO BID
Importance:
Signals the start of the bidding process.
Procurement process should be made within 3
months starting from posting and advertisement
until awarding of contract. (Sec. 38.1 IRR)
Signals the availability of the bidding documents
to the prospective bidders. (if not mentioned in the
Invitation to Bid) (Sec. 17.3 IRR)

II. ADVERTISEMENT/POSTING OF
THE INVITATION TO BID
At least once in one (1) newspaper of general nationwide
circulation, which has been regularly published for at least
two (2) years before advertisement date.
Posted continuously for 7 calendar days
PhilGEPS
website of the PE, if any.
website of IFI, if applicable.
At any conspicuous place in the premises of the PE.
Not required for projects with ABC of 2M and below.

10

II. ADVERTISEMENT/POSTING OF
THE INVITATION TO BID
Above 2M

2M and below

Newspaper of General
Nationwide Circulation

PhilGEPS website

PEs Website, if available

Conspicuous Place

Medium

Website prescribed by the

foreign government/foreign or
international funding institution,
in case of foreign funded
procurement

11

III. PRE-BID CONFERENCE

Forum where the PEs representatives & the bidders
discuss the different aspects of the project
Mandatory ABC 1M or more;
ABC less than 1M

Discretionary

Held at least 12 cd before deadline for bid

submission. May be held at least 30 cd considering
the following:
a) Method, nature, and complexity of contract
b) International participation is more advantageous
At

the option of procuring entity, only bidders who

purchased bid documents are allowed to attend or
ask questions
12

III. PRE-BID CONFERENCE

Section 22 affords bidders the opportunity to
raise
concerns
or
clarifications
on
the
requirements,
terms,
conditions,
and
specifications
stipulated
in
the
bidding
documents for the contract to be bid.
Questions or clarifications pertaining to the
matters that may be discussed during the prebid conference must be raised at least ten (10)
calendar days before the deadline set for the
submission and receipt of bids. (NPM 49-2013)
13

III. PRE-BID CONFERENCE

Section 22.1 of the IRR of RA 9184 provides that at least

one (1) pre-bid conference should be conducted by the
procuring entity for projects costing at least PhP1 Million, in
order to afford prospective bidders the opportunity to
inquire on or clarify any of the requirements, terms,
conditions, and specifications stipulated in the Bidding
Documents.

Failure to conduct a pre-bid conference for the Project

amounts to a violation of a mandatory provision of law,
which will render the procurement activity void under
Article 5 of the Civil Code of the Philippines. (NPM 48-2013)

14

CLARIFICATION OF BIDDING
DOCUMENTS
Supplemental/Bid Bulletins issued by BAC to
answer requests for clarification (query submitted
10 c.d. before deadline) or interpretation, and upon
BACs initiative to clarify or modify any provision of
Bidding Docs. (at least 7 c.d. before deadline for
bids).
Posted in PhilGEPS and PEs website
Bidders who have submitted bids before issuance
of Supplemental/Bid Bulletin must be informed in
writing and allowed to modify or withdraw their
respective bids
15

CLARIFICATION OF BIDDING
DOCUMENTS
22.5.2 RA 9184 IRR allows PEs to issue Supplemental/Bid
Bulletins upon their initiative for the purpose of clarifying or
modifying any provision in the Bidding Documents,
including the IB.
PE has the authority to revise or amend any statement in
the Bidding Documents, including the IB, specifically when
such revision or amendment is made for the purpose of
clarifying or modifying its provisions.
Supplemental/Bid Bulletins must be posted in the PhilGEPS
and at the PEs website, in order to address aspects of
competition and transparency. (NPM 46-2013)
16

ADDITIONAL REQUIREMENTS
PE cannot compel prospective bidders or the winning
bidder to submit or comply with requirements not initially
provided in the Bidding Documents or through any
Supplemental/Bid Bulletin issued by the PE for the project
that must be posted at the PhilGEPS and the PEs website.
If no Supplemental/Bid Bulletin is issued to reflect changes
in the Bidding Documents, or even if the same was issued
but not posted at the PhilGEPS and PEs websites, the
original provisions contained in the Bidding Documents
remain and the prospective bidder, including the winning
bidder cannot be compelled to abide or comply with the
changes made by the PE. (NPM 24-2013)

17

IV. SUBMISSION AND RECEIPT

OF BIDS

Two-Envelope System

1st Envelope Eligibility Requirements

Component

2nd Envelope Financial Component

and

Technical

Submitted to the BAC on the date, time, and place specified in

the Invitation to Bid. Bids submitted after the deadline should
not be accepted.

Date of submission should not be later than the following period

from the last day of posting of the Invitation to Bid.
Category
Goods

Maximum Period (cd)

45

18

IV. SUBMISSION AND RECEIPT

OF BIDS
Bidders are no longer required to submit a
written LOI together with their application for
eligibility as previously required in IRR Part A of
RA 9184.
Bidders only have to submit their bids not later
than the deadline for the submission and receipt
of bids, which can be extended or rescheduled
together with the opening of bids as provided in
Section 29 of the IRR of RA 9184. (NPM 55-2013)
19

IV. SUBMISSION AND RECEIPT

OF BIDS
The practice of pre-qualification has been
abandoned in RA 9184 and its IRR. the results of
a pre-qualification have no legal force and effect,
bearing or weight, and cannot preempt the
findings of the BAC during the preliminary
examination of bids conducted during the
opening of bids. Hence, a bidder may still be
declared ineligible during the opening of bids
despite a finding of qualification during the
purported pre-qualification exercise. (NPM 542013)

20

IV. SUBMISSION AND RECEIPT

OF BIDS
Procuring entity cannot validly and legally refuse
to accept a bid submitted before the deadline for
the submission indicated the Invitation to Bid or
Request for Quotation.
This shall open a ground for the aggrieved bidder
to file a request for reconsideration and,
subsequently, protest as provided in Section 55
of RA 9184 and its IRR, without prejudice to the
institution of civil, administrative and/or criminal
actions against the erring officials under
applicable laws and rules. (NPM 67-2013)
21

V. OPENING AND EVALUATION OF

1ST ENVELOPE
CONTENTS:
1. Eligibility requirements
2. Bid Security
3. Technical specifications
4. Omnibus sworn statement
Non-inclusion in blacklist
Authenticity of documents
Verification authority

22

V. OPENING AND EVALUATION OF

1ST ENVELOPE
CONTENTS (continuation):
4. Omnibus Sworn Statement
Signatorys authority
Disclosure of relations
Responsibilities of bidders
Labor laws and standards
Non-payment (directly or indirectly)
any commission, amount, fee, or any
form of consideration in relation to
any procurement project or activity
23

V. OPENING AND EVALUATION OF

1ST ENVELOPE
Section 30 requires that the preliminary
examination of bids be conducted by merely
checking for the presence or absence of
documentary
requirements
using
a
nondiscretionary pass/fail criterion.
However, the BAC has the right to review the
qualifications of a bidder during the same stage if
it has reasonable grounds to believe that a
misrepresentation has been made or there has
been changes in the bidders capability to
undertake the project. (NPM 54-2013)
24

V. OPENING AND EVALUATION OF

1ST ENVELOPE
BAC should open a reconsidered bid under
the same circumstances as it opened the
bids that were not disqualified, i.e., upon
a duly scheduled opening of bid with
proper notices to the concerned entities.
(NPM 69-2013)

25

ELIGIBILITY REQUIREMENTS
Class A Documents
1.DTI/SEC/CDA Registration
2.Mayors permit
3.Tax clearance per Executive Order 398, series of 2005,
as finally reviewed and approved by the BIR.
4.Statement of ongoing contracts.
5.Statement of SLCC
6.Audited financial statement
7.NFCC
26

ELIGIBILITY REQUIREMENTS
Class B Document

JVA or notarized statement from the

partners that they will enter into joint
venture if awarded the contract.

27

MAYORS PERMIT
Mayors Permit allows an entity to legally
perform the requirements and obligations of the
project and the resultant contract.
It is therefore necessary for the BAC to
determine whether the Mayors Permit for
construction business issued to the construction
company likewise authorizes it to engage in the
business of supplying dump trucks. (NPM 362013)

28

TAX CLEARANCE
Tax Clearance is now included as part of the
Class A legal eligibility documents to be
submitted during the opening of bids. (GPPB
Resolution No.21-2013)

29

TAX CLEARANCE
EO 398 specifically requires the submission of
Tax Clearance issued by the BIR. It refers to the
clearance issued by the Collection Enforcement
Division of BIR attesting that the bidder has no
outstanding Final Assessment Notice and/or
delinquent account.
Hence, submission of tax clearance of the
previous year and application for tax clearance
cannot be considered as compliance. (NPM 022013)
30

TAX CLEARANCE
Submission of BIR receipt for renewal of Tax
Clearance will not suffice in lieu of a valid Tax
Clearance Requirement since substitution is not
allowed under Section 34.2 of the IRR of RA 9184.
The Tax Clearance must be valid and existing at the
time it is submitted to BAC and must be submitted
within three (3) calendar days from receipt of the
notice from the BAC that the bidder has the LCB.
Failure to comply with the requirement for the
submission of a valid Tax Clearance shall be a ground
for post-disqualification of the bidder. (NPM 48-2013)
31

TAX CLEARANCE
Submission of Provisionary Tax Clearance is
not considered as sufficient compliance for
bidding purposes. (GPPB Resolution No. 332013)

32

CREDIT LINE COMMITMENT

Credit Line Commitment shall
no longer be accepted as an
alternative to the prospective
bidders computation of Net
Financial Contracting Capacity
(NFCC). (Resolution 20-2013)

33

STATEMENT OF ON GOING AND

COMPLETED CONTRACTS
Thesubmission of a Statement of Ongoing
Contracts should only be required if the bidder
opts to submit an NFCC computation. If the bidder
opts to submit a CLC, it need not submit said
statement.
The Statement of Completed Contract(s)
should always be required for the purpose of
showing the bidders Single Largest Completed
Contract that is similar to the contract to be bid.
(Resolution 29-2012)

34

ELIGIBILITY REQUIREMENTS FOR

FOREIGN BIDDERS
In the case of foreign bidders, the foregoing
eligibility requirements under Class A Documents
may be submitted:
Equivalent

documents issued by country

Accompanied

by English translation certified by

appropriate embassy or consulate in the Philippines

35

ELIGIBILITY REQUIREMENTS FOR

FOREIGN BIDDERS
Foreign
bidders
may
substitute
eligibility
documentary requirements with the appropriate
equivalent documents in their country.
Only upon actual determination and confirmation
of this equivalence through post qualification by the
BAC may it be categorically resolved that the
foreign documents submitted are acceptable
substitutes of the required eligibility documents
pursuant to 23.2 of the IRR. (NPM 42-2013)

36

ELIGIBILITY REQUIREMENTS FOR

FOREIGN BIDDERS
TAX CLEARANCE FOR FOREIGN BIDDERS
A Delinquency Verification Certificate issued to NonResident Foreign Corporations (NRFC)/NonResident Aliens Not Engaged in Trade or Business
(NRANETB) pursuant to BIR RR 3-2005, attesting
to the fact that the taxpayer has no outstanding
Final Assessment Notice and/or delinquent
account may be submitted as a form of Tax
Clearance required under Sec 34.2 of the IRR.
(NPM 02-2013)
37

ELIGIBILITY REQUIREMENTS FOR GOVT.

CORPORATE ENTITIES
Government corporate entities may be
eligible to participate only if they can
establish that they:
1.are

legally and financially autonomous,

2.operate under commercial law, and
3.are not attached agencies of the procuring
entity.

38

ELIGIBILITY REQUIREMENTS FOR

JOINT VENTURES
1.WITH
AN
EXISTING
JOINT
VENTURE:
submission of a valid joint venture agreement

2.WITHOUT AN EXISTING JOINT VENTURE:

submission by each of the potential joint venture
members of a duly notarized statement stating
that they will enter into and abide by the
provisions of the joint venture in case their bid is
successful.

39

ELIGIBILITY REQUIREMENTS FOR

JOINT VENTURES
SUBMISSION OF ELIGIBILITY REQUIREMENTS:
All co-venturers of the joint venture should submit
legal eligibility documents.
Any of the co-venturers can submit technical
and financial eligibility requirements

40

LEGAL ELIGIBILITY CRITERIA

General rule: 60% Filipino
Foreign bidder allowed if:
Stated in treaty or international or executive
agreement
National of a country offering reciprocity
rights to Filipinos
Goods not available from local suppliers
To prevent situations that defeat competition
or restrain trade
41

TECHNICAL ELIGIBILITY CRITERIA

Previous contract
Similar to the contract to be bid out (as defined by the Bidding
Documents)
Completed within
Documents

period

as

defined

by

the

Bidding

25% of the ABC (expendable supplies)

50% of the ABC (non-expendable supplies)
- Based on the value of the previous completed contract, as
adjusted to current prices using the NSO consumer price index.
For foreign funded procurement, a different track record may
be agreed upon

42

TECHNICAL ELIGIBILITY CRITERIA

GOODS SINGLE LARGEST CONTRACT
General Rule

Exceptions

1. Expendable
Supplies
25% of the ABC

If, at the outset

and after market
research,
applying the
2. Services and Non- general rule will
expendable
likely result to:
supplies
50% of the ABC 1.Failure of
bidding; or
2.Monopoly

Then require the ff.:

a) At least 2 similar
contracts
aggregate amount
at least equivalent
to required
percentage; and
b) Largest of the
similar contracts
amounts to at
least 50% of
required
percentage
43

TECHNICAL ELIGIBILITY CRITERIA

GOODS SINGLE LARGEST CONTRACT (Illustration)
Expendable Goods

Non-expendable Goods

ABC = P1,000,000

ABC = P1,000,000

GR: 25% of the ABC

GR: 50% of the ABC

THUS: Previous contract should be at

least
P250,000

THUS: Previous contract should be at

least
P500,000

EXCEPTION:
At least 2 similar
contracts aggregate amount at least
equivalent to required percentage; and
Largest of the similar contracts
amounts to at least 50% of
required percentage.

EXCEPTION: At least 2 similar contracts

aggregate amount at least equivalent to
required percentage; and Largest of
the similar contracts amounts to at
least 50% of required percentage.

THUS: 1st contract = P100,00

2nd contract = P200,00

THUS: 1st contract = P300,000

2nd contract = P400,00[

44

FINANCIAL ELIGIBILITY CRITERIA

Audited
Financial
Statement
(showing prospective bidders total and
current assets and liabilities. )
NFCC at least equal to ABC.

45

NFCC COMPUTATION
Net Financial Contracting Capacity (NFCC) =
(current assets - current liabilities) (K) MINUS
(outstanding, uncompleted portions under ongoing
contracts + contracts awarded but not yet started)
(K) = 10 (contract is 1 year or less)
15 (contract is more than 1 year to 2 years)
20 (contract is more than 2 years)
* The values of the bidders current assets and current
liabilities shall be based on the data submitted to the BIR,
through its Electronic Filing and Payment System (EFPS)
46

NFCC COMPUTATION
Participating bidder should be required to
submit an NFCC that is at least equal to all
the lots to which it participated in, in order
to establish the bidders financial liquidity
and absorptive capacity in carrying out the
contractual obligations required by the lots
to which it participated in. (NPM 76-2013)

47

BID SECURITY

Procuring entity shall indicate in the Bidding

Documents at least 2 acceptable forms of bid security,
one of which should be the Bid Securing Declaration.

In general, bank issued securities must be issued by a

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

Surety Bonds must be accompanied by certification

from Insurance Commission that issuer is authorized
to issue such security
48

BID SECURITY
Amount
Form of Bid Security

Bid Security
(% = ABC)

a) Cash or
cashiers/managers
check

2%

b) Bank guarantee/draft
or Irrevocable LC
c) Surety bond callable
upon demand
d) Combination of the
foregoing
e) Bid Securing
Declaration

5%
Proportionate to share of form with
respect to the total amount of
security
No percentage required

49

BID SECURING DECLARATION

Bid Securing Declaration
-

an additional form of bid security

A document/undertaking signed by the bidder

committing to pay the corresponding fine and
be suspended for a period of time from
being qualified to participate in any government
activity in the event of violation of any of the
conditions stated therein as required by the
GPPB Guidelines. (GPPB Resolution No. 03-2012,
27 January 2012)
50

BID SECURING DECLARATION

Penalties
- Automatic blacklisting for 2 years in ALL
government procurement activities, and
- Payment of fine
For multiple bidders: difference between the
evaluated bid prices of LCRB/HRB with the
next LCRB/HRB.
In case bidder is the LCRB/HRB, the amount
shall be based on the difference between
the evaluated bid price and ABC.
For a single bidder: difference between the
evaluated bid price and ABC.
51

BID VALIDITY PERIOD

Bids and bid securities (including bid securing
declaration) shall be valid for a reasonable period as
determined by the HOPE as indicated in the Bid
Docs.
Not to exceed 120 days
If the period is extended, PE shall request in
writing all those who submitted bids for such
extension before the expiration date.
NOTE: Bidders have a right to refuse to grant such
extension w/o forfeiting their bid security.
52

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

53

CONFLICT OF INTEREST
The firm that has been engaged to provide consulting
services for the preparation or implementation of a
project, and each of its affiliates, will be disqualified
from subsequently providing goods, works, or services
resulting from or directly related to the firms
consulting
services
for
such
preparation
or
implementation.
There is conflict of interest when the entity that
prepared the plans/drawings likewise participates in
the ensuing procurement activities for the Project.
(NPM 10-2013)
54

VI. OPENING AND EVALUATION OF

2ND ENVELOPE
CONTENTS:
1. Financial Bid Form (includes bid prices and bill
of quantities, as well as applicable price
schedules)
2. In case of Goods, Certification from the DTI,
SEC, or CDA, if claiming preference as
Domestic Bidder or Domestic Entity
3. Other documents required in the bidding
documents

55

VII. DETAILED EVALUATION

OF BIDS
Purpose is to determine the Lowest Calculated
Bid (LCB), by:
1. Establishing correct calculated prices of bids;
and
2. Ranking calculated total bid prices from
lowest to highest
A non-discretionary criterion shall be used,
which shall include consideration of:
1. completeness of bids; and
2. minor arithmetical corrections
56

VII. DETAILED EVALUATION

OF BIDS
No Contact Rule - prohibition on communication w/ bidders
from bid evaluation until award of contract.
The no contact rule applies only to those whose bids are
being evaluated by the BAC after passing the preliminary
examination.
No communication should be made by bidders until a
decision to award a contract is made by the BAC.
Bidders who waived their right to utilize the protest
mechanism or those whose request for reconsideration and/or
protest were subsequently denied are not covered by the
prohibition under 32.1 of RA 9184 IRR. (NPM 07-2013)
57

VII. DETAILED EVALUATION

OF BIDS
Bid Evaluation shall not be more than 7 cd.

In case of discrepancies, the ff. shall prevail:

words over figures
unit prices over total prices
actual sum of prices over total price
bill of quantities over detailed estimates

Section 32.2.3(c) of the IRR states that where

there is a discrepancy between the stated total
price and the actual sum of prices of component
items, the latter shall prevail. (NPM 51-2013)
58

VII. DETAILED EVALUATION

OF BIDS
Unless the ITB specifically allows partial bids,
those not providing all required items shall be
considered non-responsive
Placing no price is considered as non-responsive
Specifying a 0 or - means it is offered for free

59

DOMESTIC PREFERENCE

Applicable only for GOODS

Applies where the lowest bid has a foreign

component (foreign bid/entity) and the next
lowest bid has a domestic component (domestic
bidder/entity)

Requires procuring entity to give preference to

domestic bidder PROVIDED that:
1.
2.

The lowest foreign bid is increased by 15%;

and
The lowest domestic bidder matches the
lowest bid of the foreign bidder
60

DOMESTIC PREFERENCE
SAMPLE COMPUTATION
Lowest Calculated Bid

Next Lowest Calculated

Bid

Foreign Bidder

Domestic Bidder/Entity

Bid
% Preference

2,653,360.00
x

3,009,492.00

15%
398,004.00

+ 2,653,360.00

Bid as
increased

Result

3,051,364.00

3,009,492.00

Award to Domestic Bidder/Entity at

2,653,360.00, or
Award to Foreign Bidder if Domestic
Bidder/Entity refuses
61

VIII. POST-QUALIFICATION
To determine whether bidder with LCB complies
with and is responsive to all requirements and
conditions of eligibility and the bidding of the
contract to be declared the Lowest Calculated
and Responsive Bid (LCRB)
A non-discretionary pass/fail criterion shall be
used to Verify, Validate and Ascertain all
statements and documents (licenses, certificates,
etc.)
To be accomplished not more than 7 c.d. from
determination of LCB. (Exceptional cases not to
exceed 30 c.d.)
62

VIII. POST-QUALIFICATION
BAC will notify the Bidder with the Lowest
Calculated Bid that it was determined as such.
Within 3 c.d. from receipt of Notice, submit the ff:
1. Latest Income and Business Tax Returns;
2. Certificate of PhilGEPS Registration; and,
3. Other appropriate Licenses and permits
required by law and stated in the Bidding
Documents.

63

VIII. POST-QUALIFICATION
BAC shall recommend award of contract to the
LOWEST CALCULATED AND RESPONSIVE BID
(LCRB) at submitted price or calculated price,
whichever is lower.
In case of approval by HOPE, Notice of Award
should be IMMEDIATELY issued by HOPE to the
LCRB. (HOPE has 7 days to decide w/n to issue
NOA)

64

VIII. POST-QUALIFICATION
The three (3) calendar day period under 34.2 of
the IRR is mandatory and should not be extended.
In case PE accepts the post-qualification
documentary
requirements
beyond
the
reglementary period, it must show that there is a
compelling, sufficient, valid, reasonable, and
justifiable cause for such extension, so that penal
sanction or liability will not set in. Applicable
administrative and civil sanctions or liabilities may
also be imposed against the concerned officials.
(NPM 27-2013)
65

VIII. POST-QUALIFICATION
PE may request for the submission of additional
documents from the bidder in support of the
information it has provided in the bidding
documents.
However, non-submission of the additional
supporting documents requested cannot be a
ground for the bidders post-disqualification, as a
bidder may be post-disqualified only upon
ascertainment, validation, and verification of its
non-compliance with the legal, technical, and
financial requirements of the project as provided
in the bidding documents. (NPM 25-2013)
66

VIII. POST-QUALIFICATION
Should PE decides to extend the period, it must
show and provide compelling, sufficient, valid,
reasonable, and justifiable cause. Such valid
justification, however, will only free officials from
penal sanction or liability, but not from
applicable administrative and civil sanctions or
liabilities under existing laws, rules and
regulations. (NPM 57-2013)

67

FAILURE OF BIDDING
GROUNDS:
1)No bids received
2)Bids received but no one was eligible
3)All bids failed to post qualify
4)Someone post qualified but refused w/o
justifiable cause to accept the award.

68

FAILURE OF BIDDING
EFFECTS:
1)Mandatory review shall be conducted by BAC
2)Based on findings, BAC shall:
Revise terms, conditions, specifications
Adjust ABC, subject to required approvals
3)Re-bidding
4)Re-advertisement

69

IX. AWARD OF CONTRACT

Contract shall be awarded to the bidder with the

Lowest Calculated and Responsive Bid (LCRB) at
its submitted price or total calculated bid price,
whichever is lower

Notice of Award (NOA) is issued by the HOPE

NGAs and LGUs 7 cd

GOCCs and GFIs 15 cd

70

IX. AWARD OF CONTRACT

NOA

is subject to the following conditions:

If joint venture, submission of JVA

If foreign-funded and stated in treaty, international or
executive agreement, PCAB License
Posting of Performance Security
Signing of Contract (within 10 cd)
If required, approvals by higher authority
PROCUREMENT PROCESS
From Opening of Bids to Award of Contract shall
NOT EXCEED 3 MONTHS
71

PERFORMANCE SECURITY
Posted by winning bidder upon signing of contract
to guarantee performance of obligation, in
such form and amount specified in the Bidding
Documents.
EFFECTS OF FAILURE TO POST:
1.Ground for disqualification
2.Next-ranked
LCRB
shall
undertake
postdisqualification
3.Bid security shall be forfeited without prejudice to
the imposition of sanctions
72

PERFORMANCE SECURITY
Submission by the winning bidder of a Performance
Security in the form of a personal check after the signing of
the contract could be considered as a failure to post the
Performance Security in the required form under 39.2 of
the IRR and in the required period for posting under
37.1.4(b) of the IRR.
4.1.5 of the Guidelines provides that the refusal or failure
of a contractor to post the required Performance Security
within the prescribed period is one of the grounds for
blacklisting. (NPM 35-2013)

73

PERFORMANCE SECURITY
Amount
Form of Performance
Security
a) Cash or
cashiers/managers
check
b) Bank guarantee/draft
or Irrevocable LC
c) Surety bond callable
upon demand
d) Combination of the
foregoing

Performance Security
(% equal to the Contract Price)

5% (Goods ) & 10% (Infra)

30%
Proportionate to share of form with
respect to the total amount of
security
74

RESERVATION CLAUSE
HOPE reserves the right to:
Reject any and all bids;
Declare a failure of bidding;
Not award the contract.
GROUNDS:
1. Prima facie evidence of collusion;
2. BAC is found to have failed in following the prescribed bidding
procedures;
3. For justifiable reasons, the award of contract will not redound to
the benefit of the Government:
Physical and economic conditions have significantly changed;
Project is no longer necessary
Source of funds for the project has been withdrawn/reduced.
75

NOTICE TO PROCEED

Issued to the successful bidder together with the

copy of the approved contract within 3 cd from
date of approval

Contract effectivity date should be provided in

the NTP, which should not be later than 7 cd
from its issuance

BAC Secretariat should post a copy of the NTP

and the approved contract in the PhilGEPS or PEs
website within 15 cd from issuance of NTP

76

CONTRACT IMPLEMENTATION
GUIDELINES FOR THE
PROCUREMENT OF GOODS,
SUPPLIES AND MATERIALS

77

AMENDMENT TO ORDER

Issued at any time by the procuring entity in cases of:

1.
2.

Emergency
Fortuitous event

REASONS FOR ISSUING:

1. Necessary adjustments within the general scope of the
contract in any one or more of the following:
a) drawings, design or specifications (if specifically manufactured for
Government)
b) method of shipment or packing; or
c) place of delivery.
2.

Additional items needed and necessary for the protection of

the goods, which were not included in the original contract.
78

SUSPENSION OF WORK

PE may suspend the work wholly or partly by

written order for a certain period of time due to
force majeure or fortuitous events.

When the suspension order is lifted, or if the

period of the order expires, the supplier or
consultant shall resume work.

79

LIQUIDATED DAMAGES

When bidder fails to perform obligations within specified

schedule, inclusive of duly granted time extensions, he
shall be liable for damages and shall pay the PE liquidates
damages.

Bidder shall pay an amount equal to 1/10 of 1% of the

cost of the cost of delayed goods scheduled for delivery for
every day of delay until such goods are finally delivered and
accepted by the procuring entity.

PE need not prove it incurred actual damages.

80

LIQUIDATED DAMAGES

Whichever is convenient to the procuring entity,

amount shall be deducted from:
1. any money due or which may become due to
the supplier, or
2. collected from any securities or warranties
posted by the supplier,

If sum of liquidated damages reach 10% of the

contract amount, PE shall automatically rescind
the contract.

81

ADVANCE PAYMENT

Made only after prior approval of the President.

Single advance payment not to exceed 50% of

the contract for the following services:

Hotel and restaurant services

Use of conference/seminar and exhibit areas
Lease of office space

Advance payment not to exceed 15% allowed to

address contingencies arising from natural or
man-made calamities in areas where state of
calamity has been declared

82

ADVANCE PAYMENT

For goods, 15% of the contract price shall be

paid within 60 days from signing of contract and
upon submission of a claim and a bank
guarantee. (Amended by M.O. 15, series of 2011)

NOTE: Progress payments shall first be charged

against the advance payment until the latter is
fully exhausted. (UNLESS otherwise approved by
the President)

83

THANK YOU!!
Contact us:
Unit 2506 Raffles Corporate Center
F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605
TeleFax: (632)900-6741 to 44
84