Localgovernmentadministration 131010013945 Phpapp01

Holy Name University
cor. Gallares & Lessage sts, Tagbilaran City
The only catholic university in the Province of Bohol
RESOURCE UTILIZATION AND ACCOUNTABILITY
Property & Supply Management

(w/ introduction to R.A. 9184)
JUAN PAOLO S. ARANAS
Master in Public Administration
LOCAL GOVERNMENT
BASIC PRINCIPLES
Public office is a Public Trust (Sec. 1 Art. 11
of the 1987 Philippine Constitution; RA
6713). Public officials and employees must
be at all times accountable to the people,
serve
them
with
utmost
honesty,
responsibility,
integrity,
loyalty,
and
efficiently, act with patriotism and lead
modest lives.
BASIC PRINCIPLES
Section 2 of the PD no. 1445 otherwise
known as the State Auditing of the
Philippines states that all resources of the
government shall be managed, expended
or utilized in accordance with laws, rules,
regulations, and safeguarded against loss
or wastage through illegal or improper
disposition with the view of ensuring
economy, efficiency, and effectiveness in
the operation of the government.
References:
Republic Act No. 7160 Book II Title 6
Revised
Implementing
Rules
and
Regulations of Republic Act No. 9184,
otherwise known as the Government
Procurement Reform Act.
Course Objectives:
To know and discuss Supply & Property
Management; and to
Appreciate Provisions under Republic
Act. No. 9184 and its Implementing Rules
and Regulations
SUPPLY AND PROPERTY MANAGEMENT
*SECTION 356 GENERAL RULE IN

PROCUREMENT AND DISPOSAL
Except as otherwise provided herein,
acquisition of supplies by local government
units shall be through COMPETITIVE
PUBLIC BIDDING. Supplies which
become unserviceable or no longer needed
shall be SOLD, whenever applicable, at
PUBLIC AUCTION, subject to applicable
rules and regulations
PROCUREMENT
DEFINITION OF TERMS (R.A. 7160 & 9184)

Lowest Complying and Responsible Bid
1. proposal of one who offers the lowest price;
2. meets all the technical specifications and
requirements of the supplies desired;
3. as a leader in the line of supplies involved;
4. maintains a regular establishment; and
5. has complied consistently with previous
commitments;
Suitable
Substitute refers to the kind of article which would serve

substantially the same purpose or produce substantially the same results
as the brand, type, or make of article originally desired or requisitioned.
Supplies include everything, except real property
Terms & Conditions refers to other requirements not affecting the
technical specifications and requirements of the required supplies
desired
Approved
Budget for the Contract

budget for the contract duly approved by
the HOPE.
Fund Instrumentality
National Government
Agencies (NGAs)
General Appropriations
Act (GAA)
GOCCs, GFIs, SUCs
Corporate budget for

the contract approved
by the governing board
Local Government Units Budget Approved by

(LGUs)
Sanggunian
Foreign Funded
Procurement
Treaty, International or
Executive Agreement
Bid
equivalent to Proposal and Tender

Bidder eligible contractor, manufacturer,
supplier, distributor and or consultant
Bidding Documents documents issued by
the P.E. as basis for bids, furnishing all
information necessary for a prospective
bidder to prepare a bid.
Common-Use supplies goods, materials
and equipment that are used in the day-to-day
operations of the PE in the performance of
their duty
Competitive
Bidding method of
procurement which is open to participation
by an interested party which consists of
processes.
Expendable
Supplies articles which are

normally consumed in use within one (1)
year or more than a year but which shall have
decreased substantially in value after only
one year in use
Goods
all items except consulting services

and infrastructure projects which may be
needed in the transaction of public businesses
including related or analogous services.
Head of the Procuring Entity (HOPE) the
head of the Agency.
Infrastructure Projects civil works
Non-Expendable Supplies - articles which
retain their identity during the period of use
whose serviceable life is more than one year.
PhilGEPS
Philippine Government
Electronic Procurement System
Portal
website
Procurement
Procuring
acquisition by the PE
Entity (PE) refers to branch,

offices, agencies, bureau of the GOP, incl.
GOCC, GFI, SUC, LGU.
SECTION I SHORT TITLE AND PURPOSE

OF RA 9184
Purpose of the IRR of R.A. 9184:

Modernization
Standardization
Regulation of the procurement

activities of the GOP
SECTION 2 DECLARATION OF POLICY
Modernization
Standardization
Regulation of Procurement Activities
Transparency
Accountability
Equity
Efficiency
Economy
SECTION 3 GOVERNING PRINCIPLES
Transparency
Competitiveness
Streamlined procurement
process
System of Accountability
Public monitoring
SECTION 4 SCOPE AND APPLICATION
Branch, agency, department, bureau,

office or instrumentality of GOP, incl.
GOCCs, GFIs, SUCs, & LGUs
Any Treaty or International or
Executive Agreement to which the
GOP is signatory
This IRR shall not apply to the following:

Procurement funded by foreign grants
Acquisition of real property
Public Private sector infra or
development projects and other
procurement covered by R.A 6957
DUTIES OF THE
PMO / End-user(s)
Duties of the PMO/End-user(s)

1.
To provide the technical specifications of the goods it

will procure
2.
To conduct a market survey that will

include
a
study of the available products or services, industry
developments
3.
To recommend the ABC
4.
To provide technical advice
5.
To assist in the preparation of bidding
documents

6.
7.
8.
To attend all stages of the procurement

To determine the period of contract implementation
during the procurement planning stage, and include it in
the PPMP.
To ensure that the Chief Accountant of the procuring
entity issues a CAF for the project.
Only with a CAF can the contract be valid.
The Chief Accountant must also sign the contract as a witness. (Sec. 5 GPM)
Fund availability is an indispensable prerequisite to the execution of any

government contract involving the expenditure of public funds by all
government agencies at all levels.

9.
To determine the existence of condition/s that require

an amendment to order.
10.
To determine the existence of a force majeure or

fortuitous event that will be the basis for the issuance of
a suspension order.
11.
To either approve or disapprove the request for

extension.
PROCUREMENT
PLANNING
What is Planning?
The act or process of making or carrying out plans.
The establishment of goals, policies, and procedures for a social or
economic unit.
It involves resource allocation and scheduling.
Through plans, a PE is able to effectively manage and track
procurement all the way to contract performance.
Allows managers to determine how to allocate limited cash and
other appropriate resources under a given time line, identify chokepoints, weaknesses, and delays in the entire activity that can be
addressed or eliminated.
Planning & budgeting linkages

PE Agency Budget Proposal by considering the budget
framework
PMO/End-User prepares their respective WFP for their
different PPAs as annex to Budget call.
Procuring Entitys Budget Proposal embodies the agency
thrusts and the resources needed to produce the key services it
delivers to the public.
Procurement planning should be done within this budgetary
context, reflecting the Procuring Entitys priorities and
objectives for the budget period.

The WFP or the Work and Financial Plan
Contains the initial list of projects/requirements of each PMO/End-User unit
and the corresponding estimated budgetary requirement.
Submitted by the PMOs or end-user units to the PEs Budget Office on or
about May of each year, to coincide with the submission of their respective
budget proposals. This will be evaluated and included in the PEs Budget
Proposal .
This will support the Budget Proposal submitted to DBM and becomes the
basis for the proposed PPMP.
The Budget Office shall furnish a copy of the WFPs and proposed PPMP to
the BAC Sec for the consolidation of the initial list of items/projects for
procurement into the proposed APP.

When GAA becomes final (Nov. - Dec.), PMOs/End-User must refine the
proposed PPMP.
Within 15 days from issuance of the Agency Budget Matrix (ABM) during the
1st quarter of the fiscal year, PMOs/End-User shall finalize the PPMPs to reflect
the budgetary allocation for their respective PPAs as provided in the ABM.
The final PPMPs shall be submitted to the BAC Sec for the finalization of the
proposed Procuring Entitys APP to be submitted to the HOPE for confirmation
or approval.
Preparation of the Project Procurement Management Plan

(PPMP)
What is a Project Procurement Management Plan (PPMP)?
A Project Procurement Management Plan or PPMP, which is a component of
the Project Management Plan, deals primarily with:
a.planning for the procurement of project requirements;
b.bidding or procurement strategy;
c.source selection;
d.delivery and payment schedules;
e.contract administration;
f.contract termination; and
g.other major milestones; in an effort to obtain goods, infrastructure and services
from suppliers, contractors and consultants.

(PPMP)
The PPMP serves as a guide document in the procurement and
contract implementation process, as well as a vital reference in
procurement monitoring.
It serves as an important tool in resource and financial
management, allowing the Procuring Entity the flexibility to
optimize the utilization of scarce resources.
Well-planned procurement will significantly minimize the
practice of doing short-cuts to ensure that the Procuring Entity is
able to purchase its requirements for the delivery of public services.

(PPMP)
Developing the Project Requirements:

The development of the project requirements should be done
during the preparation of the proposed PPMP. At this stage of
the procurement planning process, the PMO or end-user unit
must:
a. Identify the need of the PMO or end-user unit
What is the purpose of the procurement?
What are the problem/s or needs that the project or
procurement aims to address?

(PPMP)

b. Identify the alternative solutions, products, and services.
What alternative solutions to the problem/s or need/s are
available in the market?
What is the profile of the supply market?
Are they easily obtainable?
How much is the cost of each alternative?
The PMO or end-user unit should conduct the market research at this point, and
gather as much information about the Goods, Services or expertise required. At
the end of this activity, it should know the market or the industry well enough to
make an informed choice.

(PPMP)

c. Compare the alternatives
quantitative factors)
(consider
qualitative
and
Consider how the PMO or end-user unit would rate the various
alternatives in terms of the following:
i. Value for money
The concept of value for money is not restricted to price alone. In addition to
costs, other considerations are non cost factors like suitability or fitness to the
purpose, quality, among others. In comparing costs, all relevant costs should be
considered, e.g., acquisition costs, life-cycle costs (including maintenance and
operating costs for goods and infrastructure, spare parts of goods, etc.).

(PPMP)

ii. Risk assessment and management
Some risks that may be identified are: obsolescence of
equipment, availability of support services, capacity of contractors
to implement the project. It is recommended, especially for hightechnology, complex, or high value procurement, that the PMO or
end-user unit identifies the risks involved and come up with its own
risk management plan. Or the bidders could be required to submit,
as part of their technical document, a risk assessment and risk
management plan.

(PPMP)

iii. Government policies that have an impact on the project or
procurement
Are there any restrictions on the procurement contemplated?
What relevant government policies should be considered in
determining the goods or services that will be purchased?
iv. Other relevant factors that may be identified by the PMO
or end-user unit.

(PPMP)

iii. Government policies that have an impact on the project or
procurement
Are there any restrictions on the procurement contemplated?
What relevant government policies should be considered in
determining the goods or services that will be purchased?
iv. Other relevant factors that may be identified by the PMO
or end-user unit.

(PPMP)
Writing the Technical Specifications, Scope of Work

(SOW) and Terms of Reference (TOR):
The Technical Specifications (for Procurement of
Goods), Scope of Work (for Services and Infrastructure
Projects) or Terms of Reference (for Consulting Services)
is the document that provides the detailed description of
the deliverables of the Supplier, Contractor or Consultant.

(PPMP)

The following guidelines are, considered helpful in writing the
TS/SOW/TOR:
Quality Assurance actually starts at this stage of the procurement cycle,
considering that the deliverables are decided at this time. It is therefore
important that all stakeholders are consulted, and the actual requirements of
the PMO or end-user unit are determined and put in writing.
If the procurement is complex, highly technical, or high value, and the
Procuring Entity does not have sufficient technical proficiency, it would be
prudent to engage the services of technical experts who will serve as
consultants in the preparation of the TS/SOW/TOR.

(PPMP)

TS/SOW/TOR:
In engaging these consultants, the Procuring Entity shall follow the
procedures for procurement of consulting services. Moreover, care should be
taken that possible conflict of interest is avoided; that is, the consultant/s
engaged should not be connected with the prospective bidders/contractors,
and are barred from being engaged by the latter for any purpose related to
the procurement at hand.

(PPMP)

TS/SOW/TOR:
The description should be generic and flexible, not product-specific or
seemingly tailored for a particular brand, product, contractor or consultant,
unless the procurement involves products or services that have intellectual
property rights attached to it, or are exclusively offered by a single source,
and there are no suitable substitute products or services.

(PPMP)

TS/SOW/TOR:
If the procurement involves products or services that have intellectual
property rights attached, or are exclusively offered by a single source without
any suitable substitute, then the PMO or end-user unit must be able to
satisfactorily justify the need for such a product or service.
The description should be clear and unambiguous, to avoid confusion and to
facilitate the evaluation process. It is noted that the TS/SOW/TOR is also the
basis of the evaluation or, when applicable, the testing parameters.

(PPMP)

TS/SOW/TOR:
Considering that planning is done sometime before actual procurement
and even farther from the date of actual delivery or project implementation,
changes in technology or changes in the concerned industry or field of
expertise should already be taken into account in writing the TS/SOW/TOR.
This will allow the Procuring Entity to procure the latest products and/or
services available in the market.
What is an ABC?
The ABC refers to the budget for the contract duly approved
by the Head of the Procuring Entity, as provided for in the GAA
and/or continuing appropriations, in the case of NGAs; the
corporate budget for the contract approved by the governing board,
pursuant to E.O. No. 518 series of 1979 in the case of GOCCs and
GFIs, and R.A. 8292 in the case of SUCs; and the budget approved
by the Sanggunian in the case of LGUs. (IRR-A Section 5)
What is an ABC?
The ABC, insofar as National Government Agencies are
concerned, refers to the budget for the contract duly approved by
the Head of the Procuring Entity which is contained in the Agency
Budget as reflected in the GAA or to be proposed in succeeding
GAAs. Thus, the ABC referred to in the R.A. 9184 and its IRR-A
basically refers to the proposed budget for the project approved by
the Head of the Procuring Entity based on the APP as consolidated
from various PPMPs. (GPPB Resolution 011- 2005 dated 26 May
2005)
Determining the Approved Budget for the

Contract (ABC):
In determining the ABC, the PMO or end-user unit has to consider

several factors, namely:
a. the appropriation for the project or procurement (whether
taken from the current years appropriations or continuing
appropriations),
b. the market price of the goods and/or services being
procured, inflation and cost of money which are directly
related to the procurement time table.
FORMAT OF THE PPMP

The PPMP shall contain the following information:
a.The name of the project/procurement;
b.General description of the project/procurement;
c.The extent/size of contract scopes/packages;
(This refers to the general description of the lot to be included in a
particular contract, i.e. the goods, infrastructure project or services, or
a combination of any two or three of these types of procurement,
including quantities where applicable.)
FORMAT OF THE PPMP

The PPMP shall contain the following information:
d.The procurement methods to be adopted, and indicating if the
procurement tasks are to be outsourced as provided in Section 53(e)
of the IRR-A;
e.The time schedule for each procurement activity; and
f.The ABC.
Preparation of the Annual Procurement

Plan (APP)
The APP is the document that consolidates the various PPMPs
submitted by the various PMOs and end-user units within the
Procuring Entity.
It reflects the entirety of the procurement activities that will be
undertaken by the Procuring Entity within the calendar year.
The APP is prepared by the BAC through the BAC Secretariat
upon submission by the PMOs and end-user units of their respective
PPMPs and finalized after the ABM has been approved by the
DBM.

Plan (APP)
The APP shall subsequently be re-submitted by the BAC for
approval to the Head of the Procuring Entity or a second-ranking
official designated by the Head of the Procuring Entity to act on his
behalf.
In preparing the APP, the BAC shall take into consideration the
following factors:
a. The APP should include all procurement activities planned for the year.
The approved APP shall be the basis for the Procuring Entitys procurement,
and only those projects / procurement included therein shall be undertaken.

Plan (APP)
b. The APP shall include only those procurements that are considered crucial
to the efficient discharge of governmental functions. The IRR-A considers a
procurement crucial to the efficient discharge of governmental functions if:
i. it is required for the day-to-day operations of the Procuring Entity; or
ii. it is in pursuit of the principal mandate of the Procuring Entity
concerned.
c. The APP shall include provisions for foreseeable emergencies based on
historical records. The BAC, through the BAC Secretariat, shall include
therein a lump sum to cover for these emergencies or contingencies, which
amount shall not be more than four percent (4%) of the Procuring Entitys
total appropriations for MOOE.
d. Scheduling of procurement activities should be done in such a manner that
the BAC and the other offices/units in the Procuring Entity that are involved
in the procurement process are able to efficiently manage the conduct of
procurement.
What is a Procurement Strategy?

The procurement strategy refers to the approach that will be adopted by
the BAC in the procurement of the goods, infrastructure projects and
consulting services included in the APP.
It reflects the entirety of the procurement activities that will be
undertaken by the Procuring Entity within the calendar year.
In the review and consolidation of the PPMPs, the BAC will be able to
determine the extent of diversity, quantities, quality, cost, the supply
market, and other characteristics of the Procuring Entitys requirements
for the year.
The profile of the procurement is a major determinant in the choice of
procurement strategy to be employed, as well as in the scheduling of
procurement activities.

There may be common requirements for the various PPMPs. For
example, three projects require the purchase of five (5) units of laptop
computers for each project office, or a total of fifteen (15) laptop
computers. Obviously, it will be more cost effective and efficient if the
BAC will procure the 15 laptop computers in one bidding exercise and as
one bid lot.
The individual PPMPs sometimes reflect a mix of procurement types,
for example, an ICT project might involve the procurement of goods (e.g.,
workstations, network equipment and peripherals), procurement of civil
works (e.g., the installation of cables might involve the repair of some
offices and other related civil works) and procurement of consulting
services (e.g., design and development of information systems).

In similar cases, the BAC will have to exercise judgment in
determining the bid lots and contract package.
There are two approaches to this case:
1. the project could be bid out as one package, or
2. it could be divided into several bid lots (i.e. supply of
hardware, supply and installation of cables, design and development of
information systems, and repair of facilities).
There are advantages and disadvantages to both approach, and the
BAC, through the help of the TWG and the Secretariat, shall determine
which is the best option for the Procuring Entity.
In IRR-A, Section 5(p), in case of projects involving mixed

procurements, the nature of the procurement, i.e. goods, infrastructure
projects, or consulting services, shall be determined based on the primary
purpose of the project.
This is helpful in determining which type of procurement procedure to
apply. However, there may be instances when the PMO, end-user unit or
the Procuring Entity itself may have difficulty determining or agreeing
upon the primary purpose. In these cases, ascertaining the component with
the highest price may be useful as an indicator of purpose, though not
necessarily as a determining factor.
Format of the APP

The BAC may prepare three APPs, one each for Goods, Infrastructure Projects, and
Consulting Services or a consolidated APP for all procurement activities.
The APP shall contain the following information:

a. Name of the project/procurement;
b. PMO or end-user unit;
c. General description of the project/procurement (general description of
requirements and quantities, where applicable);
d. The procurement methods to be adopted, and indicating if the procurement
tasks are to be outsourced as provided in Section 53(e) of the IRR-A;
e. The time schedule for each procurement activity; and
f. The ABC.
PE shall prepare its proposed budget

for the succeeding calendar year
The end-user units of the PE shall
prepared their respective PPMP
The PPMP shall be submitted to PE
budget office for evaluation, if
warranted, include it in the PE budget
proposal for approval by the HOPE
PE budget office shall furnish the PE
budget proposal as well as the PPMP
to the BAC Secretariat for its review
and consolidation into proposed APP
Final GAA, corporate budget, or
appropriation ordinance
The End-user units shall revise and

adjust the PPMP to reflect the
budgetary allocation for their
respective PAPs. The revised
PPMP shall be submitted to the
BAC, for finalization and mode of
procurement under the proposed
APP. (The APP shall bear the
approval of the HOPE or its
designated representative)
Updating of individual PPMP and
the consolidated APP for each PE
shall be undertaken every 6 months
or as often as may be required by
the HOPE.
SECTION 7 PROCUREMENT PLANNING

& BUDGETING
All procurement shall be within the

Approved Budget of the PE
No procurement shall be undertaken
unless it is in accordance with the
approved APP of the PE
Major functions of the

Property and Supply Division
Major Functions of the Property & Supply Div.
Prepares Agency Procurement Request (APR) for all items to be

procured from the DBM-PS
Accept deliveries of supplies, materials, and equipment based on

the APR, Purchase Order (P.O), Contract, and request for the
conduct of the inspection
Issues and distributes available supplies, materials, and

equipment to requesting offices of the Procuring Entity.
Prepares and maintains Inventory Custodian Slip (ICS) for all

inventory items, Report of Supplies and Materials Issued
(RSMI), Stock Cards for supplies and materials and Property
Card for all Property, Plant and Equipment (PPE)
Major Functions of the Property & Supply Div.
Prepares Acknowledgement Receipt of Equipment (ARE) for all

(PPE)
Conduct physical inventory for all PPE and consolidate the same
for the preparation of Annual Inventory Report
Disposes waste materials and all unserviceable equipment in

accordance with applicable laws, rules, and regulations.
Issues clearance from property accountability of all officials and

employees
Maintains and updates master lists of inventories of all PPE and

inventory items
THE BIDS & AWARDS

COMMITTEE (Procurement)
The PhilGEPS (Philippine Government

Electronic Procurement Systems)
A central Portal that serve as the

primary source of information
on all government procurement.
Main features of PhilGEPS
The Electronic Bulletin Board

Centralized electronic bulletin board for posting
procurement opportunities, awards, results of bidding
and other related information.
Registry of Manufacturers, Suppliers,

Distributors, Contractors, and Consultants
The Electronic Catalogue

PE shall procure common use goods, supplies,
materials and equipment from the Electronic Catalogue
of PhilGEPS
*Section 364 The Committee on Awards
There shall be in every province, city

or municipality a Committee on
Awards to decide the winning bids and
questions on awards on procurement
and disposal of property
BAC Composition
The Head of the Procuring
Entity shall designate at least
five (5) but not more than
seven (7) members to the
BAC
BAC Composition for NGAs, departments, bureaus, offices, judicial

and legislative branches, commissions, SUCs, GOCCs, & GFIs
Regular Members:
Chairman, who is at least a third ranking permanent officials
of the PE
An officer, who is at least a fifth ranking permanent officials
who shall represents the legal / admin. Area of PE. (bureaus,
offices, BAC members shall be at least third ranking
permanent personnel)
An officer, who is at least a fifth ranking permanent officials
who shall represents the finance area. (bureaus, offices, BAC
members shall be at least third ranking permanent personnel)
BAC Composition for NGAs, departments, bureaus, offices, judicial

and legislative branches, commissions, SUCs, GOCCs, & GFIs
Provisional Members:
An officer who has technical expertise relevant to the
procurement at hand
A representative from the end user unit who has knowledge of
procurement laws and procedures
The Chairman and the Vice-Chairman shall also be
designated by the HOPE. Moreover, the Vice-Chairman shall
be a regular member of the BAC.
BAC Composition for Local Government Units

(LGU)
One representative each from the

regular offices under the Office of the
Local Chief Executive; and
A representative from the end-user unit
The HOPE may designate alternate members to the BAC
whenever their principals are absent
TERMS OF OFFICE 1 YEAR (RENEWABLE)
Sec. 354 (RA 7160) The

Committee on Awards shall be
composed of the Local Chief
Executive as Chairman; Sec.11.2.5
(RA 9184) In no case shall the
HOPE and/or the approving
authority be the Chairman or a
member of the BAC
FUNCTIONS OF THE BAC

1. Advertise the invitation to bid/request for exp. Of interest;
2. Conduct pre-proc. and pre-bid conferences;
3. Determine the eligibility of bidders;
4. Receive bids and conduct evaluation of bids;
5. Undertake post-qualification proceedings;
6. Receive motion for reconsideration;
7. Recommend awards of contract to the HOPE ;
8. Creation of Technical Working Group (TWG);
9. Responsible for ensuring that the PE abides by the standard
set forth by the Act and this IRR;
Section 13 - Observers
1. Commission on Audit (COA) Representative
2. At least one (1) shall come from a duly recognized
private group in a sector relevant to the procurement at
hand, for example:
a) For Infrastructure projects, national associations of
constructors duly recognized by the Construction
Industry of the Philippines (CIAP), such as but not
limited to the following:
Philippine Constructors Associations, Inc.;
Natl Constructors Assoc. of the Phil., Inc.; &
Phil. Institute of Civil Engineers(PICE)
Section 13 - Observers
b) For goods, a specific relevant chamber-member of the
Philippine Chamber of Commerce and Industry.
c) For consulting services, a project-related professional
organization accredited or duly recognized by the
Professional Regulation Commission or the Supreme
Court, such as but not limited to:
PICE;
Phil. Inst. Of Certified Public Accountants;
Confederation of Filipino Consulting
Organizations; and
3. Non-government organization (NGO)
FUNCTIONS & RESPONSIBILITIES OF

THE BAC SECRETARIAT
1. Provide administrative support to the BAC;
2. Organize and make all arrangement for the BAC meetings;
3. Prepare minutes of meetings and resolutions of the BAC;
4. Take custody of procurement documents and records;
5. Distribution of BidDocs to the interested bidders;
6. Advertise opportunities, incl. BidDoc,and notice of awards;
7. Managing the procurement processes;
8. Consolidate PPMPs
9. Act as the central of communications for the BAC with end
users, PMOs, other units, and providers of services & public
The HOPE shall ensure that the

members of the BAC and TWG
shall give UTMOST PRIORITY
to BAC assignments over all other
duties and responsibilities, until the
requirements
for
the
said
assignments at hand are completed.
AVAILABILITY OF BIDDING DOCUMENTS

For the procurement of goods and infrastructure projects
From the time the Invitation to Bid (ITB) is first
advertised or posted until the deadline for the
submission and receipt of bids.
For the procurement of consulting services
From the time the Request for Expression of Interest is
first advertised until the deadline for the eligibility
check, and the Bidding Documents, from the
determination of the short list until the deadline for the
submission and receipt of bids.
Bidders may be asked to

pay for the Bidding
Documents to recover the
cost of its preparation and
development
Bidding Documents shall be

posted at:
Agencys website
PhilGEPS
Prospective bidders may download the Bidding
Documents from any of the said websites; provided
that, bidders shall pay the fees for the Bidding
Documents upon submission of their bids.
Conspicuous places
Newspaper; if applicable
Points to Remember
(Purchase Request) Reference to brand names
shall not be allowed
No aspects of the Bidding Documents shall be
divulged or released to any prospective bidder
or person having direct or indirect interest in the
project to be procured, or to any party, except
those officially authorized in the handling of the
documents
SECTION 20 - Pre-Procurement Activities

1. Confirm the description and scope of the contract, the
ABC, and contract duration.
2. Ensure that the procurement is in accordance with the
project and annual procurement plans;
3. Determine the readiness of the procurement at hand
4. Review, modify, and agree on the criteria for eligibility,
screening, evaluation and post-qualification
5. Review and adopt the procurement schedule, incl.
deadlines, and timeframes for the different activities; and
6. Reiterate and emphasize the importance of confidentiality
The holding of a pre-procurement

conference may not be required for:
Procurement of Goods
costing Two Million Pesos (Php2, 000,000.00) and below
Infrastructure Projects
costing Five Million Pesos (Php5, 000,000.00) and below
Consulting Services
costing One Million (Php1, 000,000.00) and below
SECTION 2 Pre-bid Conference

For contracts to be bid with an ABC of One Million Pesos (P1, 000,
000.00) or more, the BAC SHALL CONVENE at least (1) pre-bid
conference to clarify, and/or explain any of the requirements,
terms, conditions, and specifications stipulated in the Bidding
Documents.
P1M
At the discretion of the BAC
Pre-bid Conference is required
SECTION 2 Pre-bid Conference

Pre-bid Conference
At least 12 cd.
Opening & submission of bids
The minutes of the pre-bid conference shall be recorded and made

available to all participants not later than (3) calendar days after the
pre-bid conference.
rn
a
W
!
g
in
Statement made at the pre-bid

conference shall not modify
the terms of the BidDocs,
unless such statement is
specifically identified in writing
as an amendments thereto
and
issued
as
a
Receipt and Opening of Bids

Class A documents
Legal Documents
1. Registration Certificate from SEC, Department of Trade and
Industry (DTI) for sole proprietorship, 3. Cooperative
Development Authority (CDA) for cooperatives
2. Mayors permit where the principal place of business of the
prospective bidder is located.
Class B documents
Technical Documents
1. Statement of the pros. Bidder of all its ongoing and completed
government and private contracts, incl. Contracts awarded but
not yet started.
2. Philippine Contractors Accreditation Board (PCAB) for
Infrastructure projects
Receipt and Opening of Bids

Financial Documents
1.
Audit Financial Statement showing total current assets and

liabilities. Stamped RECEIVED by the BIR
2. NFCC or a commitment from a Universal or commercial bank to

extend a credit line. (CLC)
3. Bill of Quantities/ Materials and Bid Form
Eligibility Criteria
Goods
Infrastructure/civil
works
Consulting services
Duly licensed Filipino
Duly organized partnership (60%)
Duly organized corporation

(60% Outstanding Capital Stock)
Joint venture (75%) /(ownership of the

Filipino shall not be less than25%)
Duly organized corporation

(60% Outstanding Capital Stock)
Duly organized cooperatives (60%)
Project is under Treaty or International

Agreement
Duly organized cooperatives (60%)
Joint venture (60%)
Licensed by PCAB
Joint venture (60%)
The bidder have completed at least

two (2) similar contracts and the
aggregate contract shall be equivalent
to at least the percentage of the ABC
as required. (50% / 25 % for
expendable supplies)
Constructors Performance Evaluation

Summary rating and or certificate of
completion and owners acceptance
of the contract must be satisfactory
The largest of these similar contract

must be equivalent to atleast half of
the percentage of ABC
The bidder must have an experience

of having completed 10 years from
the date of submission and receipt of
bids
If, NFCC atleast equal to the ABC to be

bid; or
If, NFCC atleast equal to the ABC to

be bid; or
= [(current
assetsequal
minus to
current
(K)]must
minus
value of
all going
outstanding or uncompleted portions of the project
If, NFCC
CLC must
be atleast
10%liabilities)
of If, CLC
bethe
atleast
equal
to 10%
under
projects, including awarded contracts
be started
.
the
ABCongoing
to be bid
of the to
ABC
to be bid
Where; K=
One year or less
More than one year 2 years
More than 2 years
10
15
20
First envelope
Submission and Receipt of Bids
ents
irem
requ ponents
y
t
i
l
m
bi
Eligi hnical co
tec
d
n
A
SEALED
Second envelope
Dont open before the

scheduled opening date &
time
Fin
t
onen
omp
C
l
a
i
an c
BAC
First envelope

Eligibility requirements
ts
men
quire onents
e
r
y
mp
bilit
Eligi hnical co
c
e
t
d
An
For the procurement

of GOODS
For the procurement
of CIVIL WORKS
For the procurement
of CONSULTING
SERVICES
The bid security in the prescribed form, amount and validity

Technical specifications
production/delivery schedule
manpower requirements; and/or
after-sales services/parts, if applicable
Sworn statement
It is not blacklisted
all copies submitted are authentic, original,
complete and are true and correct
authorizing the HOPE to verify all the documents
submitted;
the signatory is the duly authorized representatives
It complies with the responsibilities of a prospective
or eligible bidder provided in the PBD; and
It complies with existing laws and standards, in the
case of procurement of services
First envelope

Eligibility requirements
ts
men
quire onents
e
r
y
mp
bilit
Eligi hnical co
c
e
t
d
An
For the procurement

of GOODS
For the procurement
of CIVIL WORKS
For the procurement
of CONSULTING
SERVICES
The bid security in the prescribed form, amount and validity

Project Requirements
Organizational chart for the contract to be bid;
List of contractors personnel, to be assigned to the contract to be bid,
with their complete qualification experience data;
List of contractors equipment units, which are owned, leased, and / or
under purchase agreements supported by certification of availability of
equipment from the equipment lessor/vendor for the duration of the
project; and
Sworn statement
all copies submitted are authentic, original, complete and are true and
correct
authorizing the HOPE to verify all the documents submitted;
It complies with the responsibilities of a prospective or eligible bidder
provided in the PBD; and
It complies with existing laws and standards, in the case of
procurement of services

First envelope
The bid security in the prescribed form, amount, and validity period;
ts
men
quire onents
e
r
y
mp
bilit
Eligi hnical co
c
e
t
d
An
For the procurement

of GOODS
For the procurement
of CIVIL WORKS
For the procurement
of CONSULTING
SERVICES
Organizational chart for the contract to be bid;

List of completed and on-going projects;
Approach, work plan, and schedule
List of key personnel to be assigned to the contract to be bid, with
their complete qualification and experience data; and
Sworn statement
all copies submitted are authentic, original, complete and
are true and correct
authorizing the HOPE to verify all the documents
submitted;
It complies with the responsibilities of a prospective or
eligible bidder provided in the PBD; and
It complies with existing laws and standards
Second envelope
l
a
i
c
n
Fina tion/
a
m
r
Info ments
docu
Bids shall be received by the BAC

on the date, time, and place
specified in the ITB/RFEI.
Bids incl. eligibility requirements
submitted after the deadline
SHALL NOT BE ACCEPTED by
the BAC.
Bid Security
All bids shall be accompanied by a bid security
Bid security shall be in an amount equal to a percentage of the ABC in
accordance with the following:
FORM OF BID SECURITY
AMOUNT OF BID SECURITY

(Equal to Percentage of the ABC)
a) Cash or cashiers/managers check

issued by a Universal or Commercial
Bank
b) Bank draft/ guarantee or irrevocable
letter of credit issued by a Universal or
Commercial Bank; provided, however,
that it shall be confirmed or
authenticated by a Universal or
commercial Bank, if issued by a foreign
bank.
c) Surety bond callable upon demand
issued by a surety or insurance
company duly certified by the
Insurance Commission as authorized to
issue such security
Two per cent (2%)
Five per cent (5%)
When the Bid Security shall be returned?
After the bidder with the LCRB or HCRB

has signed the contract and furnish
performance security
Bidders declared by the BAC as failed or
post-disqualified and upon submission of a
written waiver of their right to file a motion
for reconsideration and / or protest.
Bid Validity
Shall in no case exceed

the period of one hundred
twenty (120) c.d. from the
date of opening of bids.
Bid Opening
The BAC shall open the bids at the;
Time,
Date,
Place specified in the BidDocs
The BAC shall adopt a procedure ensuring the;
Integrity,
Security,
confidentiality
First envelope
Preliminary Examination of Bids

ts
men
quire onents
e
r
y
bilit
omp
Eligi hnical c
c
e
t
d
An
The BAC shall check the

submitted documents of each
bidder against a checklist
required documents to ascertain
if they are all present
Using a non-discretionary
PASS/FAIL criterion
Second Envelope
Preliminary Examination of Bids

omp
ial C
c
n
a
Fin
t
onen
The BAC shall check the

submitted documents of each
bidder against a checklist
required documents to ascertain
if they are all present
Using a non-discretionary
PASS/FAIL criterion
SAMPLE CHECKLIST
Ceiling of Bid Prices
The ABC shall be

the upper limit or
ceiling for acceptable
bid prices
Bid Evaluation for goods/Infrastructure

The BAC shall immediately conduct a detailed evaluation of bids
using non discretionary criteria in considering the following:
Completeness of the bid.
Responsive bill of Quantities/Materials
Responsive bill of Quantities/Materials (free)
Non-responsive bill of Quantities/Materials
Arithmetical corrections
The BAC shall evaluate on an equal footing to ensure fair and

competitive bid comparison. For this purpose, all bidders shall be
required to include the cost of all taxes.
In case of discrepancies between:
AREAS OF DISCREPANCIES
PREVAILING AREA
Bid price in figures
Bid price in words
Bid price in words
Total price per item
Unit price for the

item as extended or
multiplied by the
quantity of that item
Unit price for the

item as extended
or multiplied by
the quantity of
that item
Stated total price
Actual sum of prices

of component items
Actual sum of
prices of
component items
Unit cost in the

detailed estimate
Unit cost in the bill of Unit cost in the bill

quantities
of quantities
Bids shall be ranked in the ascending order of their total calculated bid
prices, as evaluated and corrected for computational errors. WARNING! total
calculated bid prices, as evaluated and corrected for computational errors and
other modifications, which exceed the ABC shall be disqualified.
After all bids have been received, opened, examined, evaluated, and
ranked, the BAC shall prepare the corresponding abstract of bids. All
members of the BAC shall sign the AoB and attach thereto all the bids with
the corresponding bid securities and the minutes of the proceedings of the
bidding. The Abstract shall contain the following:
Name of the contract and its location, if applicable

Time, date, and place of bid opening; and
Names of bidders and their corresponding bid prices
arranged from lowest to highest, the amount of bid security
and the name of the issuing entity
REMEMBER!
From submission and receipt of bids until the approval by

the HOPE of the ranking of short listed bidders, those that
have submitted their bids are PROHIBITED from
making any communication with any BAC member,
including its staff and personnel, as well as its BAC
secretariat and TWG, regarding matters connected to their
bids. However, the BAC, through its Secretariat, may ask
in writing the bidder for clarification of its bid. All
responses to requests for clarification shall be in writing.
Bid Evaluation of short listed bidders for consulting services

The purpose of bid evaluation is to determine the Highest Rated Bid (HRB)
using the following steps:
Quality-Based Evaluation Procedure

1.
A two-stage procedure shall be adopted whereby each

consultant shall be required to submit his technical and
financial proposals simultaneously in separate sealed
envelopes.
2.
After receipt of bids, the technical proposals shall first be

opened and evaluated. The BAC shall rank the consultants
in descending order based on the numerical ratings of their
technical proposals and identify the HRB. Provided,
however, that the HRB shall pass the minimum score
indicated in the Bidding Documents.

3.
The HOPE shall approve or disapprove the

recommendations of the BAC within two (2) calendar days
after receipt of the results of the evaluation from the BAC.
4.
After approval by the HOPE of the HRB, its financial

proposal shall then be opened. The BAC shall, within three
(3) cd. Notify and invite the consultant with the HRB for
the opening of financial proposal for the purpose of
conducting negotiations with the said consultants. In the
letter of notification, the BAC shall inform the consultant of
the issues in the technical proposal the BAC may wish to
clarify during the negotiations.
5.
The total contract amount shall not exceed the ABC as

stated in the BidDocs.

(Graphic Presentation)
THE BAC shall
open the
Technical
Proposals
Consultant A
Technical
Technical
Proposal
Proposal
Financial
Financial
Proposal
Proposal
Technical
Technical
Proposal
Proposal
of
of
Consultant
Consultant
A
A
Consultant B
Technical
Technical
Proposal
Proposal
Financial
Financial
Proposal
Proposal
Consultant C
Technical
Technical
Proposal
Proposal
Financial
Financial
Proposal
Proposal
BAC
Technical
Technical
Proposal
Proposal
of
of
Consultant
Consultant
B
B
Technical
Technical
Proposal
Proposal
of
of
Consultant
Consultant
B
B
Arranged in
Descending order
based on
numerical rating
Co
B Cnosnul
B97 stualn
9.570 tatnt
.5%0
%
Co
Cn
A osnuslta
A 85 ulntat
8%5 nt
%
Co
Cn
C osnuslta
C 80 ulntat
8%
0 % nt

(Graphical Presentation)
Arranged in
Descending order
based on
numerical rating
Co
B Cnosnul
B97 stualn
9.570 tatnt
.5%0
%
HRB
Co
Cn
A osnuslta
A 85 ulntat
8%5 nt
%
HEAD OF THE PROCURING ENTITY
BIDS & AWARDS COMMITTEE
Within two (2) days:
After 3 days, the BAC shall notify

and invite the consultant with HRB
for the opening of the
APPROVE
DISAPPROVE
The recommendations of the BAC
Co
Cn
C osnuslta
C 80 ulntat
8%
0 % nt
Financial
Financial
proposal of
proposal of
Consultant
Consultant
B
B
And for the NEGOTIATION

FINANCIAL
PROPOSALS
AA
BB
CC
Opened by the BAC

Return to the
respective
consultants
UNOPENED

The purpose of bid evaluation is to determine the Highest Rated Bid (HRB)
using the following steps:
Quality-Cost Based Evaluation Procedure

1.
The technical proposal together with the financial proposal

shall be considered in the evaluation of consultants. The
technical proposals shall be evaluated first. The financial
proposal of the consultants WHO MEET THE
MINIMUM TECHNICAL SCORE shall then be opened.
2.
The financial and technical proposal shall be given

corresponding weights with the financial proposal given a
minimum weight of fifteen percent (15%) up to a maximum
of forty percent (40%). The weight of the technical criteria
shall be adjusted accordingly such that their total weight in
percent together with the weight given to the financial
proposal shall add to one hundred percent (100%).

The exact weight SHALL BE APPROVED BY THE HOPE
upon the recommendation of the BAC and indicated in the
BidDocs. The BAC shall rank the consultants in descending
order based on the combined numerical ratings of their technical
and financial proposals and identify the HRB.
3.The HOPE shall approve and disapprove the
recommendations of the BAC within two (2) cd after receipt of
the results of the evaluation from the BAC.
4.After approval by the HOPE of the HRB, the BAC shall
within three (3) cd, notify and invite the consultant with the
HRB for negotiation.

THE BAC shall
open the
Technical
Proposals
Consultant A
Technical
Technical
Proposal
Proposal
Financial
Financial
Proposal
Proposal
Technical
Technical
Proposal
Proposal
of
of
Consultant
Consultant
A
A
Technical
Technical
Proposal
Proposal
Financial
Financial
Proposal
Proposal
Consultant C
Technical
Technical
Proposal
Proposal
Financial
Financial
Proposal
Proposal
BAC
Consultant B
Technical
Technical
Proposal
Proposal
of
of
Consultant
Consultant
B
B
Technical
Technical
Proposal
Proposal
of
of
Consultant
Consultant
C
C
Afterwhich, the
BAC shall open
the Financial
Proposals
Financial
Financial
Proposal
Proposal
of
of
Consultant
Consultant
A
A
Financial
Financial
Proposal
Proposal
of
of
Consultant
Consultant
B
B
Financial
Financial
Proposal
Proposal
of
of
Consultant
Consultant
C
C

Afterwhich, the
BAC shall open
the Financial
Proposals
THE BAC shall

open the
Technical
Proposals
Technical
Technical
Proposal
Proposal
of
of
Consultant
Consultant
A
A
Technical
Technical
Proposal
Proposal
of
of
Consultant
Consultant
B
B
Technical
Technical
Proposal
Proposal
of
of
Consultant
Consultant
C
C
+
+
+
Financial
Financial
Proposal
Proposal
of
of
Consultant
Consultant
A
A
Financial
Financial
Proposal
Proposal
of
of
Consultant
Consultant
B
B
Financial
Financial
Proposal
Proposal
of
of
Consultant
Consultant
C
C
WEIGHTS
Technical
(dependent
to the
weight of
the
Financial)
Financial
weights is
within 15 %
- 40 %
?
15 % - 40 %
TOTAL
100%
The
highest rating after adding
WEIGHT
the scores of Technical and
Financial proposals shall be
recommended to the HOPE for
HRB.

Rating
(Technical +
Financial)
Co
B Cnosnul
B97 stualn
9.570 tatnt
.5%0
%
HRB
Co
Cn
A osnuslta
A 85 ulntat
8%5 nt
%
HEAD OF THE PROCURING ENTITY
BIDS & AWARDS COMMITTEE
Within two (2) days:
After 3 days, the BAC shall notify

and invite the consultant with HRB
for NEGOTIATION
APPROVE
DISAPPROVE
The recommendations of the BAC
Co
Cn
C osnuslta
C 80 ulntat
8%
0 % nt
Criteria in evaluating technical proposals of consultants
Quality of personnel to be assigned to the project which covers suitability of

key staff to perform the duties of the particular assignments and general
qualifications and competence including education and training of the key staff
Experience and capability of the consultant which include records of previous

engagement and quality of performance in similar and in other projects;
relationship with previous and current clients; and overall work commitments,
geographical distribution of current/impending projects and attention to be
given by the consultant
Plan of approach and methodology with emphasis to clarity, feasibility,

innovativeness, and comprehensiveness of the plan approach, and the quality of
interpretation of project problems, risks and suggested solutions
REMEMBER!
All participating short listed consultants

shall be furnished the results (ranking
and total scores only) of the evaluation
after the approval of the HOPE of the
ranking. Said results shall be posted in
the PhilGEPS and the website of the PE
What should be discussed in the Negotiation stage?
Discussion and clarification of the TOR and Scope of Services;
Discussion and finalization of the methodology and work program proposed by

the consultant;
Consideration of appropriateness of qualifications and pertinent compensation,

number of man-months and the personnel to be assigned to the job, taking note
of over-qualified personnel, to be commensurate with the compensation of
personnel with the appropriate qualifications, and schedule of activities;
Discussion on the services, facilities and data, if any, to be provided by the PE

concerned;
Discussion of financial proposal submitted by the consultant; and
Provisions of the contract

Shall be completed within ten (10) calendar days. There should be no replacement
of key personnel before the awarding of contract.
Objective and process of Post-qualification
The LCB/HRB shall undergo post-qualification in order to determine whether

the bidder concerned complies with and is responsive to all the
requirements and conditions as specified in the BidDocs.
Within three (3) cd from receipt by the bidder of the notice from the BAC that
the bidder has the LCB or HRB, the bidder shall submit the following
requirements to the BAC:
1.
Tax clearance;
2.
Latest income and business tax returns;
3.
Certificate of PhilGEPS registration; and
4.
Other appropriate license and permits required by law and stated in the
BidDocs.
The post qualification shall verify, validate, and ascertain all statements
made and documents submitted by the bidder with the LCB/HRB, using nondiscretionary criteria. This criteria shall not be limited to, the following:
A.
Legal Requirements. To verify, validate, and ascertain licenses,

certificates, permits, and agreements submitted by the bidder, and
the fact it is not included in any blacklisted.
B.
Technical Requirements. To determine compliance of the goods,

infrastructure projects, or consulting services offered with the
requirements specified in the BidDocs, including:
i.
Verification and validation of the bidders stated competence and

experience, and the competence and experience of the bidders key
personnel to be assigned to the project, for the procurement of
infrastructure projects and consulting services;

ii.
Verification of availability and commitment, and / or inspection and

testing for the required capacities and operating conditions, of
equipment to be owned/leased;
iii.
Verification and/or inspection and testing of the goods/product, aftersales and / or maintenance capabilities, and;
iv.
Ascertainment of the sufficiency of the bid security as to type,

amount, form and wording, and validity period;
C.
Financial Requirements. To verify, validate and ascertain the bid

price proposal of the bidder and, whenever applicable, the required
CLC in the amount specified and over the period stipulated in the
BidDocs, or the bidders NFCC to ensure that the bidder can sustain
the operating cash flow of the transaction.
If the BAC determines that the bidder with the LCB/HRB passes all the
criteria for post-qualification, it shall declare the said bid as the LCRB/HRRB, and
recommend to the HOPE the award of contract, however, if the BAC determines
that the bidder with the LCB/HRB fails the criteria for post-qualification, it shall
immediately notify the said bidder in writing of its post-qualification and the
grounds for it. Immediately after the BAC has notify the first bidder of its postqualification, and notwithstanding any pending request for reconsideration thereof,
the BAC shall initiate and complete the same post-qualification process on the
bidder with the second lowest LCB/HRB. If the second passes the postqualification, and provided that the request for reconsideration of the first bidder
has been denied, the second bidder shall be post-qualified as the bidder with the
LCRB/HRRB. If the second bidder, however, fails the post-qualification, the
procedure for post-qualification shall be repeated for the bidder with the next
LCB/HRB, and so until the LCRB/HRRB, as the case maybe, is determined for
award.
The post-qualification process shall be completed in not more than
seven (7) cd from the determination of LCB/HRB. In exceptional cases, the postqualification period may be extended by the HOPE, but in no case shall aggregate
period exceed thirty (30) cd.
FAILURE OF BIDDING
The BAC shall declare the bidding of failure when:
No bids are received;
All Prospective bidders are declared ineligible;
All bids fail to comply with all the bid requirements or failpost qualification, or, in the case of consulting services,
there is no successful negotiations; or
The bidder with the LCRB/HRRB refuses, without

justifiable cause, to accept contract, and no award is made
in accordance with Section 40 (failure to enter into contract
and post security ) of the act and this IRR
In order to determine the reason for the failed bidding, the BAC
shall conduct a mandatory review and evaluation of the terms, conditions,
and specifications in the BidDocs, including its cost estimates. Based on its
findings, the BAC shall revise the terms, conditions, and specifications, and
if necessary, adjust the ABC, subject to the required approvals, and conduct
a re-bidding with re-advertisement and/or posting.
All bidders who have initially responded to the Invitation to
Bid/Request for Expression of Interest and have been declared eligible or
shortlisted in the previous biddings shall be allowed to submit new bids.
The BAC shall observe the same process and set the new periods
according to the same rules followed during the previous bidding(s).
Should there occur a second failure of bidding, the procuring
entity may resort to negotiated procurement.
SINGLE CALCULATED/RATED AND RESPONSIVE BID

A single calculated/responsive bid shall be considered for award if it falls under any
of the following circumstances:
Only one prospective bidder submit a LOI and/or applies for eligibility check,
and it meets the eligibility requirements of the criteria, after which it submits a
bid which is found to be responsive to the bidding requirements;
More than one prospective bidder submits LOI and/or applies for eligibility
check, but only one bidder meets the eligibility requirements of the criteria,
after which it submits a bid which is found to be responsive to the bidding
requirements; or
If after the eligibility check, more than one bidder meets the eligibility
requirements, but only one bidder submits a bid, and its bid is found to be
responsive to the bidding requirements.
NOTICE AND EXECUTION OF AWARD

The BAC shall recommend to the HOPE the award contract to the bidder with
the LCRB/HRRB or the SCRB/SRRB after the post-qualification process has
been completed.
To facilitate the approval of the award, the BAC shall submit the following
supporting documents to the HOPE:
Resolution of the BAC recommending award;
Abstract of bids;
Duly approved program of work or delivery schedule and cost estimates;
Document issued by appropriated entity authorizing the procuring entity to

incur obligation for a specified contract; and
Other pertinent documents required by existing laws, rules, and/or the

procuring entity concerned
If the award is approved, the HOPE shall immediately

issue the Notice of Award to the bidder with LCRB/HRRB. In
the event that the HOPE shall disapprove such
recommendation, such disapproval shall be based only on
valid, reasonable, and justifiable grounds to be expressed
in writing, copy furnished by the BAC.
Contract award shall be made within the bid security
period provided in Section 28 (bid validity shall not exceed
120 cd. the PE can request for extension but the bidder can
deny it without forfeiting their bid security).
The BAC, through the Secretariat, shall post, within,
three (3) cd from the issuance, the Notice of Award in the
PhilGEPS, the website of the procuring entity, if any, and any
conspicuous place in the premise of the procuring entity
CONTRACT SIGNING
The winning bidder shall post the REQUIRED PERFORMANCE
SECURITY and enter into contract with the procuring entity within (10) cd
from the receipt by the winning bidder of the NoA. The procuring entity shall
enter into contract within the same period provided that all documentary
requirements are complied with, to wit:
Contract Agreement;
Bidding Documents;
Winning bidders bid, including proposals submitted;
Notice of Award of Contract;
Procedural Steps for the Public Bidding of

Goods and Services ( Revised IRR, GPPB
Res. 03-2009 )
1 c.d.
.Posting 7 c.d.
Pre-Procurement
Conf.
Advertise/Post ITB
Issue Bidding
Documents
Call/Hold Pre-Bid
Conference
Pre-Bid C. at least 12 c.d. before bid opening
Receive the
Two (2)
Envelopes
Open Technical (with

eligibility documents)
Envelope
Evaluate &
Rank Bid/s
Open
Financial
Envelope
7 c.d.
1 c.d.
Submission of
Additional Req.
Within 3 c.d.
Post-qualify
LCB
Within 30 c.d.
Approve Resolution
/ Issue Notice
of Award - LCRB
7 c.d.
GOCC/GFIs- 15cd
Prepare &
Sign Contract
Within 10 c.d.
Issue
Notice to
Proceed
within 3 c.d.
PERIOD OF ACTION ON PROCUREMENT ACTIVITIES
OOp
oof peennini
fBBi ngg
dids
s
This procurement process shall not exceed

three (3) months
Award of
Contract
All members of the BAC shall be on a
jury duty
type of assignment until

the NoA is issued by the HOPE in order to
complete the entire procurement process at the
earliest possible time.
PERFORMANCE SECURITY
To guarantee the faithful

performance by the winning bidder
of its obligations under the contract
in accordance with the BidDocs, it
shall post performance security
prior to the signing of contract.
PERFORMANCE SECURITY
The performance security shall be in an amount equal to a percentage of the
total contract price in accordance with the following schedule:
Form of Performance
Security
a) Cash or cashiers/managers check
issued by a Universal or Commercial Bank
b) Bank draft/guarantee or irrevocable
letter of credit issued by a Universal or
Commercial bank; provided however, that
it shall be confirmed or authenticated by a
foreign bank.
c) Surety bond callable upon demand
issued by a surety / insurance company
duly
certified
by
the
Insurance
commission as authorized to issue such
security.
d) Any combination of the foregoing
Amount of Performance Security

(Equal to percentage of the total
contract price)
Goods and Consulting Services Five
percent (5%)
Infrastructure Projects Ten percent (10%)
Thirty percent(30%)
Proportionate to share of form with

respect to total amount of security
The performance security shall be denominated in Philippine

pesos and posted in favor of the procuring entity, which shall be forfeited
in the event it is established that the winning bidder is in default in any
of its obligations under the contract.
The performance security shall remain valid until issuance by the
procuring entity of the final Certificate of Acceptance.
The performance security may be released by the PE after the
issuance of CA, subject to the following conditions:
PE has no claims filed against the contract awardee or the

surety company;
It has no claims for labor and materials filed against the

contractor; and
Other terms of the contract
FAILURE TO ENTER INTO CONTRACT AND POST PERFORMANCE

SECURITY
If the bidder with LCRB/HRRB or the bidder with Single
Calculated/Rated Responsive Bid, fails, refuses or is unable to submit
documents required or make good its bid by entering into a contract with the
procuring entity or post the required Performance Security within the period
of 10 cd, the bid security shall be forfeited and with appropriate sanctions,
except where such failure, refusal, or inability is through no fault of the said
bidder.
In case of failure, the BAC shall disqualify the said bidder and shall
initiate and complete post-qualification process on the bidder with the second
LCB/HRB. This procedure shall be repeated until LCRB/HRRB is
determined for award.
RESERVATION CLAUSE
The HOPE reserves the right to reject any and all bids, declares a
failure to bidding, or not award the contract in the following situations:
If there is prima facie evidence of collusion between:
Appropriate public officers or employees of the procuring entity;
BAC and any of the bidders;
Among the bidders themselves;
Bidder and a third party, including any act which restricts,

suppresses, or nullifies or tends to restrict, suppress or nullify
competition;
If the BAC is found to have failed in following the prescribed bidding procedures; or
RESERVATION CLAUSE
For any justifiable and reasonable grounds where the award of the contract will not
redound to the benefits of the GOP, as follows:
If the physical and economic conditions have significantly changed

so as to render the project no longer economically, financially, or
technically feasible, as determined by the HOPE;
If the project is no longer necessary as determined by the HOPE;
If the source of funds for the project has been withheld or reduced
through no fault of the PE.
DISCLOSURE OF RELATIONS
All bid shall be accompanied by a SWORN STATEMENT of the bidder that it
is not related to the HOPE, members of the BAC, the TWG, and the BAC secretariat,
the head of the PMO or the end-user unit, and the project consultants, by consanguinity
or affinity up to the THIRD CIVIL DEGREE.
For this reason, relation to the aforementioned persons shall automatically
disqualify the bidder from participating in the procurement of contracts of the PE.
This apply to thefollowing persons:
If the bidder is an individual or a sole proprietorship, to the bidder himself;
If the bidder is a partnership, to all its officers and members;
If the bidder is a corporation, to all its officers, directors, and controlling

stockholders; and
ALTERNATIVE METHODS OF PROCUREMENT

The method of procurement to be used shall be indicated in the approved
APP. If the original mode of procurement recommended in the APP was public bidding
but cannot be ultimately pursued, the BAC, through a resolution, shall justify and
recommend the change in the mode of procurement to be approved by the HOPE.
LIMITED SOURCE BIDDING

-Otherwise known as selective bidding, is a method of procurement of
goods and consulting services that involves direct invitation to bid by the
procuring entity from the list of pre-selected suppliers or consultants with
known experience and proven capability on the requirements of the particular
contract. This alternative mode of procurement may be employed under any
of the following conditions:
Procurement of highly specialized types of goods and consulting

services whereby only a few suppliers or consultant are known to be
available; or
Procurement of major plant components
DIRECT CONTRACTING
- is also known as single source procurement. Is a method of procurement
of goods that does not require elaborate bidding documents. The supplier is
simply asked to submit a price quotation or a pro-forma invoice together with
the conditions of sales.
Direct contracting may be resorted to under any of the following conditions:
Procurement of goods of proprietary nature which can be obtained only
from the proprietary source;
When the procurement of critical plant components from a specific
supplier ;
Those sold by an exclusive dealer or manufacturer.
REPEAT ORDER
- repeat order, when provided for in the APP, is a method of procurement of
goods from the previous winning bidder, whenever there is a need to
replenish goods procured under a contract previously awarded through
Competitive bidding.
Repeat order may be resorted to under any of the following conditions:
Unit prices of the repeat order must be the same as or lower that those in
the original contract;
will not result to splitting of contracts, requisitions, or purchase orders;
shall be availed of only within six (6) months from the contract effectivity
date stated in the NTP arising from the original contract; and
shall not exceed twenty-five percent (25%) of the quantity of each item in
the original contract.
SHOPPING
- is a method of procurement of goods whereby the PE simply requests for
the submission of price quotations for readily available off-the-shelf goods or
ordinary/regular equipment to be procured directly from suppliers of known
qualifications.
Shopping may be employed in any of the following cases:
a) when there is an unforeseen contingency requiring immediate purchase:
Provided however that the amount shall not exceed the thresholds prescribed.
b) Procurement of ordinary or regular office supplies and equipment not
available in the procurement service involving an amount not exceeding the
thresholds prescribed.
TAKE NOTE!
Ordinary or regular office supplies shall be understood to

include those supplies, commodities, or materials, which,
depending on the procuring entitys mandate and nature of
operations, are necessary in the transaction of its official
businesses, and consumed in the day-to-day operations.
However, office supplies shall not include services such as
repair, and maintenance of equipment and furniture, as well as
trucking, hauling, janitorial, security, and related or analogous
services.
THRESHOLDS FOR SHOPPING (a)

a. For NGAs, GOCCs, GFIs, and SUCs - One Hundred Thousand Pesos (P100, 000.00)
b. For LGUs, in accordance with the following schedule:
Maximum Amount (in Philippine Peso)
DOF Classification of
LGUs
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 case of barangays - Fifty Thousand Pesos (P50, 000.00)
THRESHOLDS FOR SHOPPING & SVP (b)

a. For NGAs, GOCCs, GFIs, and SUCs - Five Hundred Thousand Pesos (P500, 000.00)
b. For LGUs, in accordance with the following schedule:
Maximum Amount (in Philippine Peso)
DOF Classification of
LGUs
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 case of barangays - Fifty Thousand Pesos (P50, 000.00)
NEGOTIATED PROCUREMENT
- is a method of procurement of goods, infrastructures, and consulting
services, whereby the PE directly negotiates a contract with a technically,
legally, and financially capable supplier, contractor or consultant in any of
the following cases.
1.
Two Failed Biddings

- After conduct of mandatory review, the BAC shall revise and
agree on the minimum technical specifications, and if necessary,
adjust the ABC. However, the ABC cannot be increased by more
than twenty percent (20%) of the ABC for the last failed
bidding.
- The BAC shall invite and engage in negotiations with a sufficient
number of suppliers, contractors, or consultants to ensure effective
competition.

- Any requirements, guidelines, documents, clarifications, and
other information shall be communicated by the PE to suppliers,
etc. On an equal basis.
- Following the completion of the negotiations, the PE shall request
all suppliers, etc to submit, on a specified date, a best and final
offer with respect to all aspects of their proposals.
-The procuring entity shall select the successful offer on the basis
of such best and final offers.
-In all stages of the negotiations, observers shall be invited.
2.
Emergency Cases.
- In case of imminent danger to life or property during a state of
calamity, or when time is of the essence of arising from natural or
man made calamities or other causes where immediate action is
necessary to prevent damage to or loss of life or property, or to
restore vital public service and public utilities.

3.
Agency to - Agency
- Procurement of infrastructure projects, consulting services, and
goods from another agency of the GOP, such as the PS DBM,
which is tasked with a centralized procurement of Common-Use
supplies for the GOP.
4.
Procurement Agent
- Procuring entities which may not have the proficiency or
capability to undertake a particular procurement, as determined by
the HOPE, may request other GOP agencies to undertake such
procurement for them, or at their option, result and hire consultants
to assist them directly and/or train their staff in the management of
the procurement functions.

5.
Highly Technical Consultants.

- Individual consultants hired to do work that is (i) highly technical (ii)
primarily confidential where trust and confidence are the primary
consideration for the hiring of consultant. Provided, however, shall, at the
most, be on six month basis, renewable at the option of the HOPE, but in no
case shall exceed the term of 6 months.
6.
Defense Cooperation Agreement.

- Upon approval by the President of the Philipines, and when the
procurement for use by the AFP involves major defense equipment or
materials and/or defense-related consultancy services, when expertise
required is not available locally, and the Secretary of National Defense has
determined that the interests of the country shall be protected by negotiating
directly with an agency or instrumentality of another country with which the
Philippines has entered into a defense cooperation agreement or otherwise
maintains diplomatic relations: Provided, however, that the performance by
the supplier of its obligations under the procurement of contract shall be
covered by a performance security.

7.
Small Value Procurement.

- Where the procurement does not fall under shopping and the
amount does not exceed the thresholds prescribed.
The procuring entity shall draw up a list of at least three (3)
suppliers, contractors, or consultants, of known qualifications
which will be invited to submit proposals, in the case of goods and
infrastructure projects, or curriculum vitae, in the case of
consulting services.
8.
Lease of Real Property
9.
NGO Participation.
- When an appropriation law or ordinance earmarks an amount to
be specifically contracted out to NGO, the PE may enter into a
Memorandum of Agreement with an NGO.

10. Community Participation.
11. United Nations Agencies.
- Procurement from specialized agencies of the United Nations of
any of the following:
Small quantities of-the-shelf goods, primarily in the fields of
education and health; and
Specialized product where the number of suppliers is limited,
such as vaccines or drugs.
TERMS AND CONDITIONS FOR THE USE OF ALTERNATIVE

METHODS
Except for Limited Source Bidding under section 49 of this IRR,

submission of bid securities may be dispensed with.
Performance and warranty security shall be submitted for
contract acquired through the alternative methods of procurement
except for:
Shopping
Negotiated Procurement: emergency cases, SVP, lease of real
property and UN agencies.
DELIVERY, INSPECTION, &

ACCEPTANCE
DELIVERIES
Deliveries of supplies must be made by the
Supplier/Manufacturer/Contractor within the stipulated period and
at the place/s indicated in the purchase order of the contract.
In all cases, delivery shall be made within office hours and
during working days.
Failure to deliver within the prescribed period, the
supplier/manufacturer/contractor shall be liable for penalty,
usually in the form of liquidated damages specified in the
Contract/Purchase Order.
LIQUIDATED DAMAGES
Liquidated damages
of the undelivered
items in the contract deducted
for each day of delay
1 % of the undelivered
items/delays
DELIVERIES
All supplies shall be adequately contained, packed,

crated, cased, bundled, wrapped, or sealed to prevent
damage, spoilage, and loss.
They must be properly labelled and marked in

accordance with the minimum requirements of RA 7394
otherwise known as Consumer Act of the Philippines.
Responsibility in case of damage, spoilage, or loss

shall be governed by existing laws on the matter unless
the purchase order or contract provides otherwise.
DELIVERIES
Deliveries shall be made within seven(7) calendar

days upon receipt of the order unless otherwise provided
in the Purchase Order or contract.
All items delivered SHALL BE RECEIVED BY

THE
SUPPLY
OFFICER/DESIGNATED
PROPERTY CUSTODIAN as the case may be.
Receiving and signing of the DR and temporary
recording of the deliveries shall be subjected to
inspection by the Inspectorate Team.
INSPECTION
INSPECTION
Wha
pecti
s
n
I
t is
on?
Inspection is the process of examining and testing

the procured supplies, materials, equipment, and services
including raw materials and components to determine
their conformity with the contract requirements including
all applicable drawings, specifications, and purchase
description.
INSPECTION
The inspection of items SHALL BE DONE BY

THE INSPECTORATE TEAM, whose members shall
be determined and designated by the HOPE.
Inspection shall be done in accordance with the

standards and specifications and be conducted in the
presence of the suppliers and end-users representatives.
The Inspectorate Team and the Supply

Officer/Designated
Property
Custodian
SHALL
PREPARE AND SIGN the Inspection and Acceptance
Report (IAR).
TECHNIQUES OF INSPECTION
Inspection by Item
- Individual item is checked in conformity with the
requirement stated in the specification. This method
of inspection is applicable, but not limited to
deliveries of equipment and fixed assets.
Inspection by Sampling
- Sampling is a process of obtaining information
about a group of data having similar purpose or
function, usually ten percent (10%) of the total or lot
delivery.
General Procedures in Conducting Inspection

1. Upon receipt of the request for inspection, check the
following documents as their completeness and
authenticity.
A. Purchase Order & Contract
Date;
PO Number
Name and Address of the Supplier
Suppliers Acknowledgement or Receipt (date of receipt)
Specifications
Quantity
Unit/Total Price
Availability of fund
Approval of the HOPE or his duly authorized representative
General Procedures in Conducting Inspection

B. Suppliers Invoice Delivery Receipt
Pre-numbered and not just typed stamped or hand-written
Date checked against the delivery date stated in the P.O or
contract
RECEIVED portion Receipt and date of item delivered
acknowledged by the supply officer/designated property
custodian.
C. Conduct inspection and testing procedure when applicable.
D. Prepare inspection report immediately and give to the
Inspectorate Team and supply officer/designated property
custodian for signature.
Inspection Procedures for Equipment

1.
Examine the equipment as to the physical condition: brand new, second

hand, rebuild, or reconditioned. See to it that no defective or old worn out
parts are used/attached to the equipment.
2.
Take hold of the manual, catalogue or handbook for equipment delivered

for reference. All date/information contained thereon should conform with
the delivery of the serial number, point of origin, color, and the accessories
or tools that go with the equipment.
3.
Make a physical count and inspect the unit piece-by-piece or unit-by-unit.

Random sampling is not applicable for this type of delivery because you
have to request the supplier or his representative to demonstrate the
operation of the equipment (test run) in your presence and that of the enduser. Observes the actual performance thereof.
4.
Get the warranty card and note down the warranty card number in the
original invoice. Check if the serial indicated thereon is the same as that of
the delivery.
Inspection & Acceptance of Infra Projects

1.
The Head/End-user/Implementing Office/Property Officer/etc. must secure

copy of the Program of Works prior to the start of the construction.
2.
The End-user must seek assistance from the technical person (TWG for the
project) to check the materials that are being used during the construction if
they are in accordance with the required specifications.
3.
The End-user (usually the Head) shall sign the Certificate of Acceptance
(CA)/Certificate of Turnover only after the issuance of the 100%
completion report by the project engineer. The same certificate shall also be
signed by the Division Physical Facilities Officer.
4.
The End-user (usually the Head) shall issue a Certificate of Noncompliance if the works are not in accordance with the specifications or
standards.
Documentary Requirements for Inspection

1. General
Requirements
for
deliveries/fabrication/installation
Inspection
of
Original copy of approved contract/PO

Original Invoice/ Delivery Receipt
Performance/Quality Test Result (if applicable)
Other documents specified in the contract necessary to

determine conformance with specifications (e.g. Approved
plans/samples, standard specifications, etc. )
Documentary Requirements for Inspection

1.
Inspection of Infrastructure Project for construction, repairs and

rehabilitation
Statement of Work Accomplishment (SWA)

Certificate of completion for final payment
Certificate of Final Acceptance (CFA) for release of retention money
Approved original contract
Approved Program of Works
2.
Post-repair Inspection for repairs
Approved job order/work order/contract

Certificate of Acceptance
Waste Materials reports, if applicable
Acceptance or Rejection of Deliveries of Goods
The Inspectorate Team may recommend a REJECTION /

REDUCTION OF PRICE when their is a SHORTAGE IN QUANTITY,
DEFICIENCY, OR DEFECTIVENESS IN QUALITY.
After consideration of 10% tolerable allowance based on standards,
the following shall be observed by the Inspectorate Team in the evaluation
of the result of the inspection:
Supplies or property tested and found to be in accordance with the

approved PO/Contract and with the required specifications SHALL BE
ACCEPTED;
Supplies or property whose quality analysis shows deficiency of

less than ten percent (10%) may be accepted, provided that they shall serve
the purpose for which they were purchased. The defect is minor and the
contract price is reduced according to the deficiency noted;
Supplies or property whose quantity is short by volume, weight,

actual count, etc. Shall be subjected to reduction on contract price at an
amount equivalent to the shortage, provided that the said deliveries are
acceptable to the agency or unit; and
Damaged items that are not disclose or incorrectly marked as such

shall be subjected to corresponding reduction in the contract.
Acceptance of deliveries maybe made only if the supplies and

materials delivered CONFORM TO THE STANDARDS AND
SPECIFICATIONS STATED IN THE CONTRACT/PO
If the supplier failed to comply with the requirements, the

property/supply officer shall submit a report to the HOPE for
appropriate actions. The HOPE may forfeit the contractors
performance bond, if any, and may also institute civil actions
against the contractors for breach of contract.
The supply officer/ designated property custodian shall be

responsible for accepting deliveries of procured items and should
notify the Auditor within five (5) days upon receipt of the
approved contract/PO.
CUSTODIANSHIP
PROPERTY CUSTODIANSHIP
Wh
stodia
at i s c u
n s hi p?
Property custodianship refers to the guardianship of

government property by the accountable person.
This includes the receipt, safekeeping, issuance, repair, and
maintenance of supplies, materials, and equipment.
The designated property custodian/officer is responsible,
accountable and liable for any loss, misuse, damage, or
deterioration of government property due to fault or negligence in
safekeeping which may be physical or destructive
Storage / Warehousing
Wh
rehou
at i s w a
s i n g?
Storage/ Warehousing refers to the scientific and

economical warehousing of materials for their best safekeeping
and availability.
Best safekeeping means protecting the materials against
theft, fire, and deterioration but easily accessible when needed.
The method or systems include factors and procedures in
the manner of undertaking due care and maintenance of good
condition of the property.
Factors to be considered in Storage and Warehousing:

1. Site Location and size of storage/stockroom to use
Generally, selection of site location, type and size of
storage of stockroom to be used, play a major role for an
effective storage and Warehousing management. It is important
factor for the following purposes:
To be able to figure out the amount of materials that can be

stored;
For determination of access for efficient and proper transport
of supplies and materials;
For provision of large size of doorways and entrances;
For installation of proper lightings and ventilation.
1. Special layout planning for materials to be stored.

For easy facilitation, space layout for materials to be stored
should be planned. Specifically the layout should contain the
placement of supplies by category, type, similarity, popularity,
sizes, shapes, characteristics and to include perishability.
It is important that materials be stored and placed in its
proper places to avoid accidents and wastage.

1. Types of stacking suitable for each type of property
In like manner as in space layout planning, types of
stacking for each type of materials should be given careful
planning. It may be classified into:
i. Bulk storage
ii. Medium Lot Storage; and
iii. Small Lot Storage
Procedures in Storage / Warehousing

1.
Receipt of Materials and Equipment and Other Property

- Supplies, materials, and equipment delivered by the
supplier must be accompanied by Delivery Receipts (DRs)
and/or Sales Invoice (SI), which were pre-inspected by the
supply officer / designated property custodian before the items
are received.
2.
Arrangement of Materials
- The storekeeper arranges the materials inside the
warehouse/ stockroom in accordance with the prepared
storage plan.
Procedures in Storage / Warehousing
3.
Recording of Receipts/ Deliveries

- The storekeeper properly posts and updates the
information (receipts, issuances and balance on hand)
taken from the IAR.
Reconciliation of entries of bin cards with
stock/property cards and with the physical count of stock
on hand should be currently and properly updated.
Issuance and Utilization
Issuance and Utilization of supplies and materials and

equipment is among the activities of property custodianship.
The custodianship of supplies and equipment is transferred

from the Supply Officer/ Designated Property Custodian and
Storekeeper/Warehouseman to the end-user who is responsible and
accountable for the utilization and / or safekeeping.
Procedure in the Requisition

and Issuance of Inventory
Items
Start of Procedure
Requesting Personnel, prepares Requisition

Issuance Slip (RIS) in 3 copies. Fills up all
The necessary information except for the
Issuance portion and signs Requested By
Portion of the RIS. Forwards the RIS to
Authorized Official for approval.
Concerned Office, Requesting Personnel

Prepares the Supplies Availability Inquiry
(SAI) in 2 copies. Accomplishes the form
For item description, unit, and quantity.
Fills up the Inquired by portion of SAI
And forwards the same to Accounting
Units for processing.
Accounting Unit, Accounting Staff

Receives SAI from Requesting Personnel.
Review and verifies the completeness
Of Information.
Accounting Staff, retrieves from file the

SLC and determines availability/status
Of stocks. Fills up the number, stock number,
Status of stock and Status provided by
Portion of SAI. Returns the original to the
Requesting Personnel and files the
Copy 2 of the SAI
Authorized Official, signs the

Approved By Portion of the RIS
Requesting Personnel receives

Signed RIS and forwards to the Property
Division together with the original
SAI for withdrawal of Inventory items
requested
B
A
Requesting Personnel,
Receives supplies
requested
And sign in the
Received by portion
Of the RIS files
Permanently in num.
Order copy 2 of RIS
And files temporarily
The RIS and SAI for the
Preparation of
Report of Supplies
And Materials Issued
(RMSI)
Property Officer reviews and verifies

RIS as to completeness of Information.
Fills up RIS # date, quantity, remarks
And initials Approved by portion of the
RIS and records RIS in the logbook
Head of the Property, signs the

Approved by portion of RIS and
Returns to the Supply Officer for
Issuance of the Stock
Requesting Personnel, receives the
Original SAI from the Acctg. Staff
Requesting Personnel,
Prepares PR for the
Items requested and
Forwards the same to
Property Division for
Processing of request
Stock
Available?
No
Supply officer fills up

the and signs
The Issuance portion
of the RIS and issue
inventory items
Requested to the
Requesting Personnel
B
End of
Procedure
Illustration on preparation of the issuance documents
SAI
If
Available
YES
RIS
N
O
PR
ICS
/ARE
GETTING TO KNOW WITH IMPORTANT DOCUMENTS

1.
Supplies Availability Inquiry (SAI)

- is a document prepared by the requisitioning officer as a basis for
the preparation of RIS and PR if the supplies/equipment are available or not
available on stock.
2.
Requisition and Issuance Slip (RIS)

- is used if the goods/supplies carried in stock based on the SAI received
from the Accounting Unit.
It must be numbered in the following manner as prescribed by COA.
GETTING TO KNOW WITH IMPORTANT DOCUMENTS
3.
Purchase Request (PR)

- is accomplished if the goods/supplies/properties are not carried in stock
based on the SAI received from the Accounting Unit.
4.
Acknowledgement Receipt for Equipment (ARE)

- is used for PPE accounts when issued to officials and employees other
than the regular property officer. It shall be signed and dated by the
Property officer under Received from portion and the recipient shall
acknowledge by signing the documents.
Recording for the Receipt, Issuance and Utilization of

Supplies, Materials & Equipment
The issuance of supplies/materials/equipment
PROPERLY ACCOUNTED FOR.
SHALL
BE
The Warehouseman/Storekeeper shall maintain bin cards and record the

receipt and issuance of each class of item kept in stock. He/She is likewise
monitor the status of the stock on hand. He shall post the quantity requested
immediately upon withdrawal of the supplies/materials from the stockpile.
The Supply Officer/Stock clerk shall maintain the stock cards for each class
of articles kept in stock. All receipt and issuance of supplies, and the balance on
hand shall be updated.
The bases of recording the receipts and issuance shall be the DR and the RIS
respectively.
The stock card serves as guide in preparing the estimates of the quantity and
description of the articles needed for the year.
Recording for the Receipt, Issuance and Utilization of

Supplies, Materials & Equipment
The stock card will be at the same time serves as guards against overstocking
of supplies and materials.
The Supply Officer shall maintain the Property Card for each class of PPE
reflecting the date of acquisition, description, custody, estimated life
expectancy, depreciation, disposal, and other information about the PPE based
on the source of documents.
The basis of recording the issuance of PPE is the ARE
Reconciliation of Property and Accounting Records
The accounting of issuance is not complete without the proper

reconciliation of property and accounting records.
Before the property records can be reconciled with the accounting records,
the Property/Supply Office shall see to it that the existing property records
are reconciled with the actual inventory count.
The warehouseman/storekeeper may at any time conduct a test count of his
stock to determine whether it tallies with the balance per bid cards.
Any discrepancies should be noted for further investigation and if necessary,
coordinate with the stock/property clerk to settle the differences.
Repair and
Maintenance
Repair and Maintenance
The repair and maintenance program is

necessary for the purpose of attaining and/or
extending the established economical and
useful life of an equipment/property and
serves as a sound basis for scheduling its
replacement.
Repair Equipment (major / minor)

p a ir ?
e
r
s
i
t
Wha
Repair is the process/act of restoring a property /equipment to its

original state or to its working condition. Unserviceable equipment may at once
be restored to its normal state of efficiency by making repairs.
Minor repair merely keeps a building of equipment in fit

condition for use without increasing its capacity or otherwise
adding to its normal value as an asset.
i.
Fair wear and tear is the condition of equipment worn

out or otherwise rendered unserviceable through use
without apparent fault.

Major or extraordinary repair is the alternation, addition, or
installation, general reconditioning, overhauling and the like which materially
increase the value or extend the useful life of the equipment or motor vehicles.
i.
Fair wear and tear is the condition of equipment worn

out or otherwise rendered unserviceable through use
without apparent fault.
Return of Unused Supplies & Excess Materials
Inventory Taking
Steps in conducting Inventory Taking
Steps in conducting Inventory Taking
Points to consider in conducting an Inventory
Preparation of Inventory Reports
Inventory Taking
Inventory Taking
Disposition of Property Held by Deceased, Incapacitated, Absconding, or

Suspended Accountable Officers
DISPOSAL
DISPOSAL
Determination of Disposable Property
Inspection
Inspection
Inspection
Inspection
APPRAISAL
General Procedures in Appraising the Property for Disposal
General Procedures for Disposal
Composition of BAC on
Disposal
Composition of BAC on Disposal
MODES OF DISPOSAL
MODES OF DISPOSAL
MODES OF DISPOSAL
Relief from Accountability in

case of Loss of Government
Property
Procedures and Requirements for Relief from Accountability
TAKE NOTE!
THANK YOU FOR

LISTENING & GOD
BLESS YOU!!!
JUAN PAOLO S.
ARANAS
Master in Public Administration
PROF. ROMEO S.
TERUEL
Professor, MPA

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Holy Name University

cor. Gallares & Lessage sts, Tagbilaran City

The only catholic university in the Province of Bohol

RESOURCE UTILIZATION AND ACCOUNTABILITY

Property & Supply Management

SUPPLY AND PROPERTY MANAGEMENT

*SECTION 356 GENERAL RULE IN

DEFINITION OF TERMS (R.A. 7160 & 9184)

Substitute refers to the kind of article which would serve

Budget for the Contract

GOCCs, GFIs, SUCs

Corporate budget for

Local Government Units Budget Approved by

equivalent to Proposal and Tender

Supplies articles which are

all items except consulting services

Entity (PE) refers to branch,

SECTION I SHORT TITLE AND PURPOSE

Purpose of the IRR of R.A. 9184:

Regulation of the procurement

SECTION 2 DECLARATION OF POLICY

SECTION 3 GOVERNING PRINCIPLES

SECTION 4 SCOPE AND APPLICATION

Branch, agency, department, bureau,

This IRR shall not apply to the following:

Duties of the PMO/End-user(s)

To provide the technical specifications of the goods it

To conduct a market survey that will

To recommend the ABC

To provide technical advice

To assist in the preparation of bidding

Duties of the PMO/End-user(s)

To attend all stages of the procurement

Only with a CAF can the contract be valid.

Fund availability is an indispensable prerequisite to the execution of any

Duties of the PMO/End-user(s)

To determine the existence of condition/s that require

To determine the existence of a force majeure or

To either approve or disapprove the request for

Planning & budgeting linkages

Planning & budgeting linkages

Planning & budgeting linkages

Preparation of the Project Procurement Management Plan

Preparation of the Project Procurement Management Plan

Preparation of the Project Procurement Management Plan

Developing the Project Requirements:

Preparation of the Project Procurement Management Plan

Developing the Project Requirements:

Preparation of the Project Procurement Management Plan

Developing the Project Requirements:

Preparation of the Project Procurement Management Plan

Developing the Project Requirements:

Preparation of the Project Procurement Management Plan

Developing the Project Requirements:

Preparation of the Project Procurement Management Plan

Developing the Project Requirements:

Preparation of the Project Procurement Management Plan

Writing the Technical Specifications, Scope of Work

Preparation of the Project Procurement Management Plan

Writing the Technical Specifications, Scope of Work

Preparation of the Project Procurement Management Plan

Writing the Technical Specifications, Scope of Work

Preparation of the Project Procurement Management Plan