Resource Speaker:

Bachelor of Science in Civil Engineering (BSCE) at

F.E.U. on1973
Master in Public Administration at P.U.P. on 1994
Master in National Security Administration (MNSA) -
Regular Class 28, 1993-94 at National Defense
College of the Philippines (NDCP)
Candidate Doctor in Public Administration (DPA) at
P.U.P.
Career Executive Service Officer (CESO IV) on 1996
Promoted Career Executive Service Officer (CESO
III) on 2006
Accredited GPPB trainor of RA 9184 and its IRR

2/27/17 09:50:38 PM dmsalas 1

Procurement of Infrastructure
Projects for DPWH-R4A
DPWH-Region IV-A Conference Room
09 October 2013

Engr. HUILLIO Boy BELLEZA, MNSA,

CESO III
Regional Director, DPWH, RO IV-A
What profit would there be for
one to gain the whole world
and forfeit his life?

Or what can one give in

exchange for his life?

Matthew: 16:26
 REMINDER

A joke & a truth are not

mutually exclusive. Sometimes,
the BEST JOKES are TRUE &
the BEST TRUTHS (we hope)
are
just JOKES.
 Presentation Outline
Objectives
Legal Basis (Scope and Application)
Definition of Infrastructure
Bidding Process for the Procurement of Infra Projects
The Bidding Documents
Pre-procurement Conference
Advertising and Posting of Invitation to Bid
Pre-Bid Conference
Bid / Performance Security
Submission of Bid Envelopes
PCAB License and registration
Bid Evaluation
Post-Qualification
Award of Contract
Warranty Security
Q & A (Comments/Suggestions)
2/27/17 09:50:39 PM dmsalas 5
Objectives
To orient participants on the
current procurement system and
practices for infrastructures
including the changes on the
revised IRR of RA 9184

To enable participants to apply

these knowledge/changes in the
procurement processes.
 Legal Basis
R.A. No. 9184, otherwise known as the
GOVERNMENT PROCUREMENT REFORM
ACT (GPRA)
Title: An Act Providing for the Modernization,
Standardization and Regulation of the
Procurement Activities of the Government and for
Other Purposes
Effectivity Date: January 26, 2003;
Limit or Scope: Regardless of fund source,
whether local of foreign;
Coverage: Procurement of Infrastructure
Projects, Goods, and Consulting Services; and
Applies to: NGAs, GOCCs, GFIs, SUCs, and LGUs.

2/27/17 09:50:39 PM dmsalas 7

 Definition of Infrastructure Projects

Infrastructure projects are:

undertakings to construct, improve,
rehabilitate, demolish, repair,
restore, or maintain roads and
bridges, railways, airports, seaports,
communication facilities, and the civil
work components of information
technology projects.

Revised IRR Section 5 [u]

2/27/17 09:50:40 PM dmsalas 8

 Definition of Infrastructure Projects
(Continuation)

Infrastructure projects also encompasses

such infrastructures as:
irrigation, flood control and drainage, water
supply, sanitation, sewerage and solid waste
management systems, shore protection,
energy/power and electrification facilities,
national buildings, school buildings, hospital
buildings, and other related construction projects
of the government.
infrastructure projects has the same
meaning as and is used interchangeably with the
term civil works

Revised IRR Section 5 [u]

2/27/17 09:50:40 PM dmsalas 9

 Procedural Steps for Procurement
of Infrastructure Projects
OLD
not later than 7 c.d.
1 c.d.
Advertisement- 1 c.d.
Posting 7 c.d.
Submission
of LOI Submission of Opening of
Pre-Procurement together with Eligibility Eligibility Env.
Advertisement/
Conf. Posting the relevant Requirements & Eligibility
documents Check

Issuance of bidding documents

Pre-Bid Submission Opening of Opening of

Conference of Tech. Env.
Financial
Bids & Prel.
1 c.d. at least 12 c.d. Envelope
Exam.
1 c.d.

Bid Evaluation
& Ranking Award of
Postqualification
Contract
ABC 50M and below- w/in 5 c.d.
ABC above 50M w/in 7 c.d. within 7 c.d.
 Procedural Steps for Procurement
of Infrastructure Projects
NEW
Advertisement- 1 c.d.
Posting 7 c.d.

Pre-Procurement Submission of LOI / Documents as

Advertisement/
Conf. Posting
specified in the Bidding documents
Issuance/Purchase of Bid documents

Pre-Bid Submission Opening of Opening of

Conference of ELIGIBILITY
Financial
Bids & Tech.
1 c.d. at least Envelope
12 c.d. Env.
1 c.d.

Bid Evaluation Award of

& Ranking Postqualification
Contract
ABC 50M and below- within 5 c.d.
ABC above 50M within 7 c.d.
within 1 - 30 c.d.
 BIDDING PROCESS FOR THE PROCUREMENT OF GOODS &
INFRASTRUCTURE PROJECTS

A
Prepare Bid
Documents

ABC >
2M(Goods Yes Pre-Procurement
)?
5M(Infra)
Conference
?
Advertised once in No
newspaper,
Posted 7 cd continuously Post/Advertise
at PhilGEPS Website, Invitation to Bid
Conspicuous place, & From 1st day of
BFP website, Advertisement of
Issue Bid Invitation to Bid to
Documents Submission and
Receipt of Bids

B
2/27/17 09:50:41 PM dmsalas 12
 B

ABC Yes Pre-Bid

1M? Conference
2 separate sealed bid
envelopes: No
1st Technical Bidders Submit 12 days
component, including Bids
eligibility requirements
2nd Financial
Component

Preliminary Examination of Bids

Use Checklist, Open 2nd envelope of
Open Technical
Non-discretionary Financial complying
Envelope
Pass-fail criteria Envelope bidder/s only

Determine the
Bid Evaluation Lowest Calculated
Bid
(LCB)

C
2/27/17 09:50:41 PM dmsalas 13
 C
Are all
Yes Declare Failure of
Bids
Bidding
>ABC?
No
Lowest Bidder Review Evaluate
Submit Additional Bidding Docs
Docs

2nd No
Post-Qualification of
Bidding A
Lowest Bidder
Yes
Bidder Negotiated
No Post- Procurement
Qualified?
Yes
Recommend to
Recommend Award HOPE the
thru Resolution Award to the LCRB

D 2/27/17 09:50:41 PM dmsalas 14

 D
Within a period not
Approval of
?
exceeding seven
(7) calendar days Resolution to Award
Notify all losing bidders
Award
No
approved
?
Yes
W/n bid validity period, Issue Notice of
Post at PhilGEPS w/in 3 CD Award

W/in 10 calendar days,

bidder must post Contract Signing
C
performance security &
sign the contract
Bidder Sign No Disqualify
Contract post
Bidder
security?

Yes
E
2/27/17 09:50:41 PM dmsalas 15
 E
w/in 15 cd
GOCC-25 cd
Approval by
Higher Yes
authority
required? Approval by
Higher Authority/
No GOCC Governing
Board

not exceeding Yes Contract

Issuance of
3 cd, Indicate Approved
Notice to Proceed ?
contract effectivity
No

Contract
Implementatio
?
n

2/27/17 09:50:41 PM dmsalas 16

 Form of Bid and Amt of Bid Security Amt of Performance Warranty
Performance (% of the ABC) Security Security
Security (% of Contract Price)
a) Cash or
cashiers/manage
rs check, bank 2% (1%) 10% (5%) 5%
guarantee/ draft > (LC)
issued by
Universal or
commercial Bank
b) Bank draft/
Guarrantee or 10%
Irrevocable LC (1.5%) (10%) (BG)

c) Surety bond 5% (2.5%) 30% (30%) 30 %

callable upon
demand
d) Combination of Proportionate to share of Proportionate to share of
the foregoing form with respect to the form with respect to the
total amount of security total amount of security

e) Per GPPB Resolution No. 03-2012 Amendment of Sec. 27.5 of the IRR of RA 9184
In lieu of a bid security mentioned in Section 27.2 The bidder may submit a Bid Securing
Declaration an undertaking which states, among others, that the bidder shall enter into contract
with the procuring entity and furnish the required performance security within ten (10) calendar
days, or less, as indicated in the Bidding Documents, from receipt of the Notice of Award, and
committing to pay the corresponding fine and be suspended for a period of time from being
qualified to participate in any government procurement activity in the event it violates any of the
conditions stated therein as required in the guidelines issued by the GPPB.
GUIDELINES ON THE USE OF BID SECURING
DECLARATION

1. SCOPE AND APPLICATION

These Guidelines shall govern the use of Bid Securing Declaration as

an additional form of bid security under the Implementing Rules and
Regulations (IRR) of Republic Act No. 9184, otherwise known as
The Government Procurement reform Act.
These guidelines shall apply to all branches, constitutional
commissions and offices, agencies, departments, bureaus, offices,
and instrumentalities of the Government, including government-
owned and/or controlled -corporations (GOCCs), government
financial institutions (GFIs), state universities and colleges
(SUCs), and local government units (LGUs).

2. GUIDING PRINCIPLES
In order to enhance competition and bidders participation, reduce
transactional costs, and promote economy in procurement activities
of the government, the use of a Bid Securing Declaration shall be an
alternative to the existing forms of bid security under the IRR.
The bidder shall have the2/27/17
option to use a Bid Securing Declaration18
09:50:41 PM dmsalas
3. DEFINITION

3.1. Bid Securing Declaration is an undertaking by a prospective

bidder, committing to pay the corresponding fine and be suspended
for a period of time from being qualified to participate in any
government procurement activity in the event it violates any of the
conditions stated therein.

3.2. The Bid Securing Declaration shall comply with the standard
format attached hereto as Annex A and shall be submitted to the
procuring entity in the manner prescribed under Sections 25 and 27
of the IRR.

4. PERIOD OF EFFECTIVITY

4.1. The Bid Securing Declaration shall be valid for a reasonable

period determined by the Head of the Procuring Entity concerned
and indicated in the bidding documents, which in no case shall
exceed one hundred twenty (120) calendar days from the date of
the opening of bids, unless duly extended by the bidder upon the
request of the Head of the Procuring Entity.

2/27/17 09:50:42 PM dmsalas 19

4.2. The Bid Securing Declaration shall automatically expire in the
following instances:

a) Upon expiration of the bid validity period, or any extension thereof

pursuant to Section 28.2 of the IRR;
b) When all bidders are declared ineligible or post-disqualified and,
upon receipt of the notice therefor, either failed to timely file a
request for reconsideration or filed a waiver to avail of said right;

c) When the bidder declared as the Lowest Calculated and

Responsive Bidder/Highest Rated and Responsive Bidder, has
furnished the performance security and signed the contract.

5. GROUNDS FOR ENFORCEMENT OF BID SECURING

DECLARATION

The Bid Securing Declaration shall be enforced when the bidder

commits any of the following:
a) Withdraws its bid during the period of bid validity required in the
bidding documents; or
b) Fails or refuses to accept the award and enter into contract or
perform any and all acts necessary to the execution of the contract,
in accordance with the bidding documents, after having been duly
2/27/17 09:50:42 PM dmsalas 20
notified of the acceptance of its Bid during the period of bid validity.
6. PENALTIES

Commission of any of the acts mentioned in Section 5 of these

Guidelines shall merit the following sanctions:
a) Penalty of automatic blacklisting for two (2) years in all
government procurement activities; and

b) Payment of fine equivalent to the amount subject to the following

rules:

(i) In case of multiple bidders, the difference between the evaluated

bid prices of the bidder with the Lowest Calculated/Highest Rated Bid
and the bidder with the next Lowest Calculated/Highest Rated Bid,
and so on. However, as regards the bidder with the highest
calculated/lowest rated bid, the amount shall be based on the
difference between the evaluated bid price and the Approved Budget
for the Contract.

(ii) In case of a single bidder, the difference between the evaluated

bid price and the Approved Budget for the Contract.

2/27/17 09:50:42 PM dmsalas 21

7. BLACKLISTING PROCEDURE

Notwithstanding the provisions of the Uniform Guidelines for

Blacklisting of Manufacturers, Suppliers, Distributors, Contractors
and Consultants, the following provisions shall govern the
blacklisting for purposes of this Guidelines:
7.1. The procuring entity shall immediately issue the blacklisting
order upon determination of the grounds for enforcement of the Bid
Securing Declaration provided in Section 5 hereof.

7.2. Only in cases where the notice of award is not in conformity with
the Bidding Documents may the blacklisted bidder file a motion for
reconsideration with the Head of the Procuring Entity within three (3)
calendar days from receipt of the blacklisting order.

7.3. The blacklisted bidder shall only be delisted upon the expiration
of the period of penalty and payment of the fine.

8. EFFECTIVITY

These Guidelines shall take effect immediately after publication in

the Official Gazette or a newspaper of general nationwide circulation
and upon filing with the University of the Philippines Law Center of
2/27/17 09:50:42 PM dmsalas 22
three (3) certified copies of these guidelines.
REPUBLIC OF THE PHILIPPINES )
CITY OF _______________________ ) S.S.
x-------------------------------------------------------x
BID-SECURING DECLARATION

Invitation to Bid/Request for Expression of Interest No.1: [Insert reference

number]
To: [Insert name and address of the Procuring Entity]
I/We2, the undersigned, declare that:
1. I/We understand that, according to your conditions, bids must be supported by a Bid
Security, which may be in the form of a Bid-Securing Declaration.

2. I/We accept that: (a) I/we will be automatically disqualified from bidding for any
contract with any procuring entity for a period of two (2) years upon receipt of your
Blacklisting Order; and, (b) I/we will pay the applicable fine provided under Section 6 of
the Guidelines on the Use of Bid Securing Declaration3, if I/we have committed any of
the following actions:

(i) Withdrawn my/our Bid during the period of bid validity required in the Bidding
Documents; or

(ii) Fail or refuse to accept the award and enter into contract or perform any and all acts
necessary to the execution of the Contract, in accordance with the Bidding Documents
after having been notified of your acceptance of our Bid during the period of bid validity.

3. I/We understand that this Bid-Securing Declaration shall cease to be valid on the
following circumstances:

(a) Upon expiration of the bid validity period, or any extension thereof pursuant to your
request;
2/27/17 09:50:42 PM dmsalas 23
 SALE OF BIDDING DOCUMENTS
STANDARD RATES
The cost of bidding documents shall correspond to the ABC range as
indicated in the
table below. This shall be the maximum amount of fee that
procuring entities can set
for the acquisition
Approvedof bidding
Budget for documents.
the Maximum Cost of Bidding
Contract Documents
(in Philippine Peso)
500,000 and below 500
More than 500,000 up to 1 Million 1,000
More than 1 Million up to 5 Million 5,000
More than 5 Million up to 10 Million 10,000
More than 10 Million up to 50 25,000
Million
More than 50 Million up to 500 50,000
Million
More than 500 Million 75,000

GPPB Resolution No. 04-2012

2/27/17 09:50:42 PM dmsalas 24

SALE OF BIDDING DOCUMENTS

Approved Budget for the Maximum Cost of Bidding

Contract Documents
(in Philippine Peso)
1 M and below 1,000
More than 1 Million up to 5 Million 5,000
More than 5 Million up to 20 Million 10,000
More than 20 Million up to 50 20,000
Million
More than 50 Million up to 100 30,000
Million
Above 100 Million to 500 Million 40,000
Above 500 Million up to 1 Billion 50,000

Above 1 Billion 75,000

DPWH DO 52 S. 2011

2/27/17 09:50:42 PM dmsalas 25

 Approved Budget Maximum Cost
for the Contract of Bidding
Documents
(in Philippine Approved Maximum
Peso) Budget for the Cost of
Contract Bidding
500,000 and below 500 Documents
(in Philippine
More than 500,000 1,000 Peso)
up to 1 Million 1 M and below 1,000
More than 1 Million 5,000 More than 1 5,000
up to 5 Million Million up to 5
Million
More than 5 Million 10,000
up to 10 Million More than 5 10,000
Million up to 20
More than 10 Million 25,000 Million
up to 50 Million More than 20 20,000
Million up to 50
More than 50 Million 50,000 Million
up to 500 Million
More than 50 30,000
More than 500 75,000 Million up to 100
Million Million

GPPB Resolution No. 04-2012 Above 100 Million 40,000

to 500 Million
Above 500 Million 50,000
DPWH
up to 1 Billion DO 52 S. 2011

Above 1 Billion 75,000

2/27/17 09:50:42 PM dmsalas 26
 IMPLEMENTATION Defect /
PRECON WARRANTY
Period liability
Period Period
Period
( 2, 5, 15 yrs )

BID PERFORMANCE WARRANTY

Security Security Security

PLAN / End of
START COMPLETE ACCEPT END
BUDGET WS

CARI 1 yr 1 yr
Payments
- Advance
- Progress
- Final
- Retention money

PROJECT CYCLE / MILESTONES

Warranty Security (Sec. 62)
Warranty security vs. Warranty
security period
Warranty security reduced to 1
year
Liability per stage
From project construction to final
acceptance
From project completion to final
acceptance
From
PreCon final Constructio
Bidding acceptance Completioto Acceptanc
warranty Warrant
n n e
st security period y
 WARRANTY SECURITY (Sec. 62.2.3.3)
3. From Final Acceptance up to the period prescribed in Sec. 62.2.3.2;
provide warranty security for structural defects and failures;

Form of Warranty Security Amount of Warranty Security

(Equal to Percentage of
the Total Contract Price)
a. Cash or Letter of Credit by a Universal or
Commercial Bank: Provided, However, that the LC Five (5) Percent
shall be confirmed or authenticated by a Universal
or Commercial Bank. If issued by a foreign bank

b. Bank guarantee issued / confirmed by a

Universal or Commercial Bank Ten (10) Percent

c. Surety Bond callable upon demand issued by

GSIS or a surety or insurance company as Thirty (30) Percent
authorized by the Insurance Commission to issue
such security
4. Liability of Contractors/Consultants/Project Construction
Managers/Supervisors for Structural Defects / Failure
From Final Acceptance up to:

15 years permanent (Buildings type 4 & 5 and structures

made of steel, iron or concrete (I.e. bridges/flyover, etc.)

5 years semi permanent structures ( Buildings type 1, 2, & 3,

concrete/asphalt roads, other similar semi-permanent
structures)

2 years other structures (bailey & wooden bridges, shallow

wells, spring dev. & other similar structures)
Preparing for the procurement of
Goods and Infra Projects
Basic activities:
Procurement Planning
Preparation of the Bidding
Documents
The Pre-procurement Conference

2/27/17 09:50:43 PM dmsalas 31

Procurement Planning for Goods
and Infra Projects
plans for procurement are linked
to budgets, preparing the PPMP
and consolidating all PPMPs into
the APP.
determining the ABC;
identifying the schedule of
milestone activities; and
determining the method of
procurement.
2/27/17 09:50:43 PM dmsalas 32
 GOODS INFRA PROJECTS
Nature of goods Detailed
to be procured engineering
Availability of investigations,
goods in the surveys and
market designs
Technical Acquisition of

Specifications ROW
Scope of Works

Procurement Planning
2/27/17 09:50:43 PM dmsalas 33
 GOODS INFRA PROJECTS
I. Invitation to Bid I. Invitation to Bid
II. Instructions to Bidders II. Instructions to Bidders
III. Bid Data Sheet III. Bid Data Sheet
IV. General Conditions of IV. General Conditions of
Contract Contract
V. Special Conditions of V. Special Conditions of
Contract Contract
VI. Schedule of VI. Specifications
Requirements VII. Drawings
VII. Technical Specifications VIII.Bill of Quantities
VIII.Bidding Forms IX. Bidding Forms
IX. Foreign-Assisted X. Foreign-Assisted
Projects Projects

Bidding Documents 2/27/17 09:50:44 PM dmsalas 34

Timeline for the Preparation of the Bidding
Documents

Must be prepared in time for

presentation during the pre-
procurement conference.
Must be finalized before the
advertisement and/or posting of
the Invitation to Bid.

2/27/17 09:50:44 PM dmsalas 35

Pre-procurement
Conference
Aspects of procurement
discussed during the pre-
procurement conference:
ABC,
Method of procurement and the
related milestones,
Bidding documents, and
Technical Specifications, if Goods
Scope of Works, if Infra Projects

2/27/17 09:50:44 PM dmsalas 36

 GOODS INFRA PROJECTS

Mandatory for Mandatory for

ABC more than ABC more than
2M 5M
Optional for Optional for
ABC 2M and ABC 5M and
below below
Pre-procurement
Conference
2/27/17 09:50:44 PM dmsalas 37
Advertising and Posting of
Invitation to Bid
Internet Posting
Posting in a Conspicuous Place
Newspaper Advertisement
ABC above 2M, for Goods
ABC above 5M, for Infra Projects

2/27/17 09:50:44 PM dmsalas 38

Reservation Clause
The Reservation Clause declares that the LGU
reserves the right to reject any and all bids, declare a
failure of bidding, or not award the contract (Revised
IRR Section 41).
In the case of Mata v. San Diego, G.R. No. L-
30447 (March 21, 1975), the Supreme Court of the
Philippines declared that a bidder is bound by the
reservation clause, and the said clause vests in the
authority concerned the discretion to ascertain who
among the bidders is the lowest responsive bidder or
the lowest and best bidder or is most advantageous
to the best interest of the Government. As such, a
bidder has no right or cause of action to compel the
BAC or agency to award the contract to it.

2/27/17 09:50:45 PM dmsalas 39

Pre-Bid Conference as a Legal
Requirement
allcontracts with ABCs of at least P 1 Million
and above. (Revised IRR Section 22.1).
at least 12 calendar days before the
deadline for the submission and receipt
of bids (Revised IRR Section 22.2).
pre-bid conference held less than 12 CD
before the deadline for the submission and
receipt of bids, that deadline should be
moved to a later date.
A Supplemental/Bid Bulletin shall be issued for
this reason.

2/27/17 09:50:45 PM dmsalas 40

Pre-Bid Conference (Section 22)
BAC presentation of the eligibility
requirements, technical and financial
components of the contract to be bid,
evaluation procedure/criteria
BAC chair shall discuss the requirements in the
biding documents and its conditions.
BAC Sec recording of minutes of the pre-bid
conference must be available to all
participants not later than 3 calendar days
after the pre-bid conference.
Technicaland Knowledgeable Persons should
be present during the Pre-bid Conference

2/27/17 09:50:45 PM dmsalas 41

Supplemental/Bid Bulletins
(Section 22.5)
Issued by BAC to answer requests for
clarification or interpretation, and upon
BACs initiative to clarify or modify any
provision of Bidding Docs. (at least 7 c.d.
before deadline for bids)
Posted in PhilGEPS and LGUs website
Bidders who have submitted bids before
issuance of Supplemental/Bid Bulletin
have to be informed in writing and
allowed to modify or withdraw their
respective bids
2/27/17 09:50:45 PM dmsalas 42
Submission of Bid
Envelopes
Bidders shall simultaneously submit
their bids through their duly authorized
representative using the forms
specified in the Bidding Documents in
2 separate sealed bid envelopes.
technical component of the bid, including
the eligibility requirements under Section
23.1 of this IRR;
financial component of the bid.
Submitted after the deadline should
not be accepted by the BAC
2/27/17 09:50:46 PM dmsalas 43
Submission of Bid
Envelopes
BAC Secretariat must stamp the Bid
envelope as RECEIVED, indicating
thereon the date and time of receipt.
The stamp must be countersigned by an
authorized representative of the bidder.
The BAC Secretariat then accomplishes
in triplicate a pre-numbered receipt
indicating the name of the prospective
bidder, and the date and time when the
eligibility and technical envelopes were
received.

2/27/17 09:50:46 PM dmsalas 44

Bidders Legal Personality,
Nationality, Filipino Ownership
Duly licensed Filipino
citizens/sole proprietorships
For Partnerships, Corporations,
and Cooperatives the Filipino
Ownership must be:
60% if procurement of Goods
75% if procurement of Infra Projects

2/27/17 09:50:46 PM dmsalas 45

 GOODS INFRA PROJECTS
Single Largest Contract PCAB License
25% of the ABC for
Single largest
Expendable Supplies
50% of the ABC for Contract 50% of the
Services and Non- ABC within a period
expendable Supplies of 10 yrs
Failure
of bidding or At least 50% of ARCC
Monopoly
if Small A and Small
At least 2 similar contracts
with a largest contract of B Contractors
50% of required ABC without similar
experience

Bidders Capacity to Undertake

the Contracts
2/27/17 09:50:46 PM dmsalas 46
 GOODS INFRA PROJECTS
Class Class A
A
Legal Documents Legal Documents
DTI / SEC / CDA DTI / SEC / CDA
registration
registration Mayors Permit from
Mayors Permit from
place of business
place of business Technical Documents
Technical Statement of all on-
Documents going and completed
Statement of all on- contracts within 10
going and yrs
completed contracts PCAB License and regis
tration
First Envelope
Eligibility Components
2/27/17 09:50:46 PM dmsalas 47
 GOODS
Class A Class
Financial Documents
Audited Financial
Statements
NFCC computation or
CLC from a universal
or commercial bank
INFRA PROJECTS
A
Financial Documents
Audited Financial
Statements
NFCC computation or
CLC from a universal
or commercial bank

Class B Class B
Valid JVA or a sworn Valid JVA or a sworn
statement forming into statement forming into
a JV a JV

First Envelope
Eligibility Components
2/27/17 09:50:47 PM dmsalas 48
 GOODS INFRA PROJECTS
Bid Bid Security
Security Organizational Chart
Technical List of Key Personnel

Specifications Manpower Schedule

Construction Safety and Health
Production &/or
Program
delivery schedule Construction Schedule and S-

Omnibus Sworn Curb

Statement
If applicable includes:
SOW
Manpower requirements
After sales service/parts
Construction Method in
Narrative Form
Equipment List
Equipments Utilization Schedule
Affidavit of Site Inspection
Omnibus Sworn Statement

First Envelope
Technical Components
2/27/17 09:50:47 PM dmsalas 49
 GOODS INFRA PROJECTS
Bid Offer in
Bid Offer in Bid
Bid Form prescribed
Form prescribed in
in Bidding
Bidding
Documents
Documents Bid prices in BOQ
Bid prices in BOQ /
Detailed Estimates
Schedule of Prices Cash Flow and
Recurring and
Payments Schedule
Maintenance Cost,
if applicable
Second Envelope
Financial Components
2/27/17 09:50:47 PM dmsalas 50
Opening of Bid Proposal -
Preliminary Examination of Bids
open in public the Eligibility and
Technical envelopes on the date
specified in the Invitation to Bid.
read in public the contents of the
Eligibility and Technical envelopes, and
examine each prospective bidders
eligibility and technical requirements or
statements.
record the presence or absence of
eligibility and technical documents in a
checklist.
2/27/17 09:50:47 PM dmsalas 51
Opening of Bid Proposal -
Preliminary Examination of Bids
declare prospective bidders as either
eligible or ineligible,
prepare a pro-forma Notice of Eligibility and
a Notice of Ineligibility, which will be duly
accomplished by the BAC Secretariat and
signed by the BAC members present during
the Eligibility Check/Screening.
In case a prospective bidder is declared
ineligible, the Notice of Ineligibility shall
state the reason for such ineligibility.
The Notice will be received officially by the
bidders authorized representative.

2/27/17 09:50:47 PM dmsalas 52

Document, to be Deemed
Complete and Sufficient,
it must be complete on its face: that is
it should contain all the information
required, and must comply with the
requirements set out in the bidding
documents.
For example:
a Mayors Permit should be current; the
submission of an expired Mayors Permit is
deemed a non-submission.
Another example of an insufficient submission is
a Bid Security of an amount below the
requirement.

2/27/17 09:50:48 PM dmsalas 53

Opening of Bid Proposal -
Preliminary Examination of Bids
inquire from ineligible bidders whether
or not they intend to file a request for
reconsideration;
if they signify their intention to do so,
the BAC shall keep the Eligibility and
Technical envelopes containing the
eligibility and technical requirements,
and re-seal the same in the presence
of all the participants and deposited in
the Bid Box or in any other secure
place or location
2/27/17 09:50:48 PM dmsalas 54
Opening of Bid Proposal -
Preliminary Examination of Bids
Use checklist
Opening the 2nd Envelope (Financial Envelopes)
of bidders whose 1st Envelope were rated
passed to ascertain: (a) compliance with the
submission requirements; and (b) that bid
price does not exceed ABC
Accomplished Abstract of Bid as Read
Only bids that pass prel. examination of both
envelopes shall be rated passed and
considered for evaluation and comparison
Failed bidder has 3 c.d. to file request for
reconsideration. BAC has 7 c.d. to decide

2/27/17 09:50:48 PM dmsalas 55

Purpose of the Bid Evaluation
Todetermine the LCB (Revised IRR
Section 32.2.1) by:
Establishing the correct calculated prices
of the bids through a detailed evaluation
of the financial component of the bids;
and
Ranking the total bid prices as so
calculated, from the lowest to the
highest.
The bid with the lowest price shall be
identified as the LCB.
2/27/17 09:50:49 PM dmsalas 56
Timeline for the Bid Evaluation
The entire evaluation process shall be
completed within seven 7 calendar
days from the deadline for the receipt
of proposals.
However, for infrastructure projects
costing P50,000,000 and below, the
entire evaluation process shall be
completed in not more than 5 calendar
days from the deadline for the receipt
of proposals (Revised IRR Section
32.4).
2/27/17 09:50:49 PM dmsalas 57
Reporting of Bid
Evaluation
The TWG, with the assistance of the
BAC Secretariat, when directed by the
BAC, should prepare the Evaluation
Report, containing the details of the
evaluation conducted, preferably
within 3 calendar days from the date
the evaluation was concluded.
Accomplished Abstract of Bid as
Calculated
Minutes of BAC meeting
2/27/17 09:50:49 PM dmsalas 58
Clarifications During Bid
Evaluation (the no-contact rule)
The BAC and the TWG shall not entertain
clarifications from Bidders, neither shall
they initiate communication with the
Bidders, during the bid evaluation stage.
There is no need for clarifications of technical
issues since the evaluation is focused on
arithmetical computations which are
determined from the face of the bid itself; and
Communications with the Bidders might lead
to possible collusion or the Bidder might try to
unduly influence the outcome of the bidding
process.

2/27/17 09:50:50 PM dmsalas 59

Responsibility of LCB
Within 3 calendar days from receipt by
the bidder of the notice from the BAC
that the bidder has the LCB shall
submit the following documentary
requirements to the BAC:
Tax clearance;
Latest income and business tax returns;
Certificate of PhilGEPS Registration; and
Other appropriate licenses and permits
required by law and stated in the Bidding
Documents.

2/27/17 09:50:50 PM dmsalas 60

Nature and Purpose of Post-
qualification
Process of verifying, validating and
ascertaining all the statements made and
the documents submitted by the bidder
with the LCB.
Once its eligibility documents had been
validated and verified, and its compliance
with the legal, financial, and technical
requirements of the bid had been
ascertained, the bidder must be declared
the bidder with the Lowest Calculated
Responsive Bid (LCRB) (Revised IRR
Section 34.1).
2/27/17 09:50:50 PM dmsalas 61
What is the Distinction between
Post-qualification and Eligibility
Check?
The eligibility check does not
ascertain the validity and
genuineness of the eligibility
documents submitted by the
bidders. Neither does it determine
the veracity of the claims made by
the bidders in their financial and
technical proposals.
The post-qualification process, on
the other hand, does.
2/27/17 09:50:50 PM dmsalas 62

SUBMISSION/OPENING OF BIDS
BID EVALUATION (Sec 30)
POST QUALIFICATION (Sec 34)
FAILED (NON-COMPLYING) BIDDER,
EVALUATION ON THE REQUEST FOR
REQUEST FOR RECONSIDERATION
RECONSIDERATION
(3 cd upon receipt of bid opening,
Upon verbal notification) (within 7 cd upon receipt whereof)
DETERMINE THE COMPLETENESS OF
THE BID AND ARITHMETICAL
CORRECTIONS RANKING
Not more than 7 cd from the date of DETERMINATION OF LOWEST
opening of bids (Projects above 50M) CALCULATED BID
Not more than 5 cd from the date of
opening of bids (Projects 50M & below)
ISSUE NOTICE OF AWARD TO THE
ISSUE NOTICE OF POST QUALIFICATION LOWEST CALCULATED RESPONSIVE BID
TO THE BIDDER WITH LOWEST (maximum of 7cd from receipt of the
CALCULATED BID Recommendation from the BAC with an
(within 7 cd from determination of ABC of above 50M and 4 cd with an ABC
Lowest Calculated Bid) Below 50M)
Submission of documentary req. within
3 cd tax clearance, income tax return, Submission of documentary
PhilGeps registration, other licenses Requirements within 10cd upon
receipt of Notice of Award
required by law
CARI, Performance Security, Credit line
& PERT/CPM
Legal - License (DTI/SEC/CDA)
- Permits (City/Municipality)
- not blacklisted (PCAB) ISSUE NOTICE TO OTHER PARTICIPATING
Technical Key personnel (relevant exp.) BIDDER INFORMING OF THE WINNING
- equipment (Cond. Qty. capacity) BIDDER WITH THE LOWEST CALCULATED
- completed single largest project RESPONSIVE BID
- performance in on-going project
(<15% slippage)
Financial Audited Fin. Statement (BIR)
- Bid Price Proposal
- NFCC or CLC (Bank)
Timeline for the Conduct of the
Post-qualification Process
Must be completed in not more
than 7 calendar days from the
determination of the LCRB
In exceptional cases, the post-
qualification period may be
extended by the HOPE, but in no
case shall the aggregate period
exceed thirty (30) calendar days
(Revised IRR Section 34.8).
2/27/17 09:50:51 PM dmsalas 64
Procedure for Post-qualification
Verify, validate, and ascertain all
statements made and documents
submitted by the bidder with the LCB,
using non-discretionary criteria consider
the ff:
Legal Requirements. To verify and validate
licenses/ agreement, etc.
Technical Requirements. To verify and validate
experience of firm and key personnel/ equipment to
be assigned to the project and performance in on-
going projects.
Financial Requirements. To verify and validate
the bid price proposal/ NFCC or CLC.

2/27/17 09:50:51 PM dmsalas 65

Rule on Contract Award
The BAC shall recommend to the HOPE the award of
contract to the bidder with the LCRB or the SCRB after
the post-qualification process has been completed
(Revised IRR Section 37.1.1).
To facilitate the approval of the award, the BAC shall
submit the following supporting documents to the HOPE:
Resolution of the BAC recommending the award;
Abstract of Bids;
Duly approved program of work or delivery schedule, and cost
estimates;
Document issued by the appropriate entity authorizing the
procuring entity to incur obligations for a specified amount;
and
Other pertinent documents required by existing laws, rules,
and/or the procuring entity concerned.

2/27/17 09:50:51 PM dmsalas 66

Thank you very much for your
kind attention . . . .

DIR. HUILLIO B. BELLEZA, MNSA, CESO III

DPWH Region IV-B
425-1977/481-0304
belleza.huillio@dpwh.gov.ph
hbbelleza@yahoo.com

2/27/17 09:50:51 PM dmsalas 67

D - EPARTMENT
OF
P - eople
W- Orking
H - ONESTLY
D - ivine
P - eople
W- Orking ON THE
H - ighwayS
 GPPB POLICY RE: Implementation
of Infrastructure Projects by
Administration

Resolution No. 08 Series 2004

Resolution No. 13 Series 2005
Resolution No. 18 Series 2006
Resolution No. 07 Series 2009

09:50:52 PM 71
By Administration
GPPB Res. No. 018-2006 (Repeals GPPB Res. No. 013-2005)
as ammended by GPPB Res. No. 07-2009

By Administration refers to the

procedure by which the implementation of
an infrastructure project is carried out
under the administration and supervision
of the concerned agency through its own
personnel.
Conditions and Requirements for use of
By Administration:
Projects shall be included in the approved APP
of the procuring entity concerned; if original
mode of procurement is public bidding, BAC
shall justify and recommend change in mode of
procurement
09:50:52 PM or updating of APP to be approved
72
By Administration
GPPB Res. No. 018-2006 (Repeals GPPB Res. No. 013-2005) as
ammended by GPPB Res. No. 07-2009

Conditions and Requirements for use of By

Administration (cont.):
Implementing agency must have track record of
having completed, or supervised a project, by
administration or by contract, similar to and with
a cost of at least 50% of the project at hand; and
Implementing agency must own the tools and
construction equipment to be used or have
access to such tools and equipment owned by
other government agencies;
DPWH, in consultation with local leagues, to
issue guidelines on the criteria for evaluating
track record and capability of implementing
agencies;
Any project costing (P5M) P20M or less may be
undertaken by administration by the
09:50:52 PM 73
implementing agency concerned;
By Administration
GPPB Res. No. 018-2006 (Repeals GPPB Res. No. 013-
2005) as ammended by GPPB Res. No. 07-2009
Conditions and Requirements for use of
By Administration (cont.)
Project costing over P20M may be undertaken
by the agency concerned only in the following
cases:
Emergency arising from natural calamities or
where immediate action is necessary to prevent
imminent loss of life or property;
To comply with government commitments, as
certified by the concerned government authority;
Failure to award a contract after competitive
bidding for a valid cause;
Termination or rescission of contract;
Areas with critical peace and order problems as
certified b the Local Peace and Order Council.
09:50:53 PM 74
By Administration
GPPB Res. No. 018-2006 (Repeals GPPB Res. No. 013-
2005) as ammended by GPPB Res. No. 07-2009
Conditions and Requirements for use of
By Administration (cont.)
Prior authority shall be obtained from Sec
DPWH if project cost is (P5M) P20M up to
(P20M) P50M, or from the President of the
Philippines, upon recommendation of Sec
DPWH, if project cost is more than (P20M)
P50M;
No contractor shall be used directly or
indirectly;
Procurement of tools and construction
equipment shall be subject to the rules on
public bidding;
Projects funded by NG and implemented by
LGU, the LGU shall be required to post
09:50:53 PM 75
By Administration
GPPB Res. No. 018-2006 (Repeals GPPB Res. No. 013-
2005) as ammended by GPPB Res. No. 07-2009

Conditions and Requirements for use of

By Administration (cont.)
Manual labor component may be undertaken
in-house by the implementing agency
concerned, by job-order or through pakyaw
contracting system. In house if workers are
employees or personnel occupying regular
plantilla positions in the implementing
agency; job-order contracts shall be governed
by relevant COA and/or CSC rules; pakyaw
shall be drawn from vicinity of the project or
pakyaw labor groups belonging to various
barangay associations contiguous to the
project site;
Pakyaw labor contract per project shall not
exceed
09:50:53 PM P500,000 per pakyaw group. D
76
Pakyaw System
Conditions on pakyaw contracts on labor
component of projects by administration:
1. Maximum capital outlay of P500T
2. Competitive selection with at least 3 pakyaw
groups, each complying with the following:
a. It is not a regular licensed contractor; and
b. It is drawn from the vicinity of the project or
belongs to various Barangay Associations
contiguous to the site
3. Unskilled labor drawn from the Barangay
where project is located; semi-skilled labor
recruited within Municipality (preferably
within Barangay); skilled labor recruited
within Province (preferably within Barangay)

09:50:53 PM 77
 EFFECTIVITY
02 September 2009

(30 days from publication 03 August

2009 in the Official Gazette)
Transitory Period
Date of Publication of Invitation to Bid
(IB)
Sept. 02, 2009 onward NEW
IRR
Before Sept. 02, 2009 OLD IRR