Procurement Methods and Procedures: Casiano, John Michael S. Mujar, Selena G. Bsce 5A

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PROCUREMENT METHODS

AND PROCEDURES

CASIANO, JOHN MICHAEL S.


MUJAR, SELENA G.

BSCE 5A
PROCUREMENT METHODS
All Procurement shall be done through competitive
bidding except as provided in R.A. 9184.

Resort to alternative methods shall be made:

• Only in highly exceptional cases

• To promote economy and efficiency

• Justified by conditions specified in R.A. 9184 and its IRR


COMPETITIVE BIDDING
REVISED IRR-RA 9184-Rule I Section 5h.
It refers to a method of procurement which is open to
participation by any interested party and which consists of
the following processes:

advertisement, pre-bid conference, eligibility screening of


prospective bidders, receipt and opening of bids,
evaluation of bids, post-qualification, and award of
contract. For purposes of, and throughout this IRR, the terms
“Competitive Bidding” and “Public Bidding” shall have the
same meaning and shall be used interchangeably.
PROCUREMENT METHODS
NEGOTIATED PROCUREMENT

REVISED IRR-RA 9184-Rule XVI Section 53.

It is a method of procurement of goods,


infrastructure projects and consulting
services, whereby the procuring entity
directly negotiates a contract with a
technically, legally and financially
capable supplier, contractor or
consultant
Bidding Process (Goods & Infra)
Article VII-XI RA 9184
Advertisement
Pre-
and/or Pre-Bid
Procurement
Conference Posting Conference

Opening of Opening of
Bid Technical Proposal Financial
Submission (incl. eligibility docs) Proposal

Post- Contract
Bid Evaluation Award
qualification

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PRE-PROCUREMENT CONFERENCE
Section 20. Pre-procurement Conference
20.1 Prior to the advertisement or the issuance of
the Invitation to Bid/Request for Expression of
Interest for each procurement undertaken
through a public bidding, the BAC, through its
Secretariat, shall call for a pre-procurement
conference. The pre-procurement conference
shall be attended by the BAC, the Secretariat, the
unit or officials, including consultants hired by the
procuring entity, who prepared the Bidding
Documents and the draft Invitation to Bid/Request
for Expression of Interest for each procurement.
PRE-PROCUREMENT CONFERENCE

20.2. The holding of a pre-procurement


conference may not be required for small
procurements, i.e., procurement of goods
costing Two Million Pesos (P2,000,000.00)
and below, procurement of infrastructure
projects costing Five Million Pesos
(P5,000,000.00) and below, and
procurement of consulting services
costing One Million Pesos (P1,000,000.00)
and below.
ADVERTISEMENT AND/OR POSTING
Section 21. Advertising and Contents of the Invitation
to Bid/Request for Expression of Interest

21.1. Contents of the Invitation to Bid/Request for


Expression of Interest

The Invitation to Bid/Request for Expression of Interest


shall provide prospective bidders the following
information, among others:

A) For the procurement of:


Infrastructure projects, the name and location of the
contract to be bid, the project background and other
relevant information regarding the proposed contract
works, including a brief description of the type, size,
major items, and other important or relevant features of
the works;
Advertisement and/or Posting
B) A general statement on the criteria to be
used by the procuring entity for the eligibility
check

C) The date, time and place of the deadline for


the submission and receipt of the eligibility
requirements, the pre-bid conference if any, the
submission and receipt of bids, and the opening
of bids;

D) ABC to be bid;
E) The source of funding;
F) Others
Advertisement and/or Posting
21.2. Advertising and posting of the invitation to
bid/request for expression of interest

A) Advertised at least once in one (1) newspaper of


general nationwide circulation

B) Posted continuously in the Philgeps website, the website


of the procuring entity concerned, if available

C) Posted at any conspicuous place reserved for this


purpose in the premises of the procuring entity concerned
for seven (7) calendar days, if applicable, as certified by
the head of the BAC secretariat of the procuring entity
concerned.
Advertisement and/or Posting

21.2.2. Advertisement of the invitation to


bid/request for expression of interest in a
newspaper of general nationwide
circulation provided in section 21.2.1(a)
shall not be required for contracts to be
bid with an approved budget of five
million pesos (P5,000,000.00) and below
for the procurement of infrastructure
projects,
Pre-bid Conference
Section 22. Pre-bid conference

22.1. For contracts to be bid with an approved budget of one million


pesos (P1,000,000.00) or more, the BAC shall convene at least one (1)
pre-bid conference to clarify and/or explain any of the requirements,
terms, conditions, and specifications stipulated in the bidding
documents.

22.2. The pre-bid conference shall be held at least twelve (12) calendar
days before the deadline for the submission and receipt of bids

22.3. The pre-bid conference shall discuss, among other things, the
eligibility requirements and the technical and financial components of
the contract to be bid.

22.4. The minutes of the pre-bid conference shall be recorded and


made available to all participants not later than three (3) calendar
days after the pre-bid conference.
Pre-bid Conference
22.5. Supplemental/Bid Bulletins

The BAC shall respond to the said request by


issuing a supplemental/bid bulletin, duly signed by
the BAC chairman, to be made available to all
those who have properly secured the bidding
documents, at least seven (7) calendar days
before the deadline for the submission and
receipt of bids

However, bidders who have submitted bids


before the issuance of the supplemental/bid
bulletin must be informed and allowed to modify
or withdraw their bids
Receipt and Opening of bids
SECTION 23. Eligibility Requirements For The
Procurement Of Goods And Infrastructure Projects

23.1. For purposes of determining the eligibility of bidders


using the criteria stated in section 23.5 of this IRR, only the
following documents shall be required by the BAC, using
the forms prescribed in the bidding documents

A) Class “A” Documents


Legal Documents
Technical Documents
Financial Documents
B) Class “B” Documents
Valid Joint Venture Agreement (JVA)
Receipt And Opening Of Bids
23.5. Eligibility criteria
23.5.2. For the procurement of infrastructure projects:

23.5.2.1. The following persons/entities shall be allowed to


participate in the bidding for infrastructure projects:

a) duly licensed Filipino citizens/sole proprietorships;

b) partnerships duly organized under the laws of the


Philippines and of which at least seventy-five percent (75%)
of the interest belongs to citizens of the Philippines;

c) corporations duly organized under the laws of the


Philippines, and of which at least seventy-five percent (75%)
of the outstanding capital stock belongs to citizens of the
Philippines;
Receipt And Opening Of Bids
SECTION 25. Submission And Receipt Of Bids

25.1. Bidders shall submit their bids through their duly


authorized representative using the forms specified in the
bidding documents in two (2) separate sealed bid
envelopes, and which shall be submitted simultaneously.
The first shall contain the technical component of the bid,
including the eligibility requirements under section 23.1 of
this IRR, and the second shall contain the financial
component of the bid.

25.5. Bids, including the eligibility requirements under


section 23.1 of this IRR, submitted after the deadline shall not
be accepted by the BAC.
Receipt And Opening Of Bids
SECTION 26. Modification And Withdrawal Of Bids

26.1. A bidder may modify its bid, provided that this


is done before the deadline for the submission and
receipt of bids. Where a bidder modifies its bid, it
shall not be allowed to retrieve its original bid, but
shall only be allowed to send another bid equally
sealed, properly identified, linked to its original bid
and marked as a “modification,” thereof, and
stamped “received” by the BAC
Bid Evaluation
SECTION 30. Preliminary examination of bids
if a bidder submits the required document, it shall be rated
“passed” for that particular requirement. In this regard, bids
that fail to include any requirement or are incomplete or
patently insufficient shall be considered as “failed”.
Otherwise, the BAC shall rate the said first bid envelope as
“passed”.

Section 31. Ceiling for bid prices


the ABC shall be the upper limit or ceiling for acceptable
bid prices. If a bid price, as evaluated and calculated in
accordance with this IRR, is higher than the ABC, the bidder
submitting the same shall be automatically disqualified.
There shall be no lower limit or floor on the amount of the
award.
Bid Evaluation

SECTION 32. Bid evaluation for the procurement of


goods and infrastructure projects

32.2.1. The BAC shall immediately conduct a


detailed evaluation of all bids using
nondiscretionary criteria in considering the
following:

a) completeness of the bid


b) arithmetical corrections
Post-qualification
SECTION 34. Objective And Process Of Post-qualification

34.1. The lowest calculated bid/highest rated bid 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 bidding documents.

34.2. Within three (3) calendar days from receipt by the bidder of the
notice from the BAC that the bidder has the lowest calculated bid or
highest rated bid, the bidder shall
submit the following documentary requirements to the BAC:

a) tax clearance;
b) latest income and business tax returns;
c) certificate of PhilGeps registration; and
d) other appropriate licenses and permits required by law and stated in
the bidding documents.
SECTION 35. Failure Of Bidding

35.1. The BAC shall declare the bidding a failure when:

A) no bids are received;


b) all prospective bidders are declared ineligible;
c) all bids fail to comply with all the bid requirements or fail
post-qualification, or, in the case of consulting services,
there is no successful negotiation; or
d) the bidder with the lowest calculated responsive bid/
highest rated responsive bid refuses, without justifiable
cause, to accept the award of contract, and no award is
made in accordance with section 40 of the act and this IRR.
Section 36. Single calculated/rated and responsive bid submission

A single calculated/rated and responsive bid shall be considered


for award if it falls under any of the following circumstances:

a) if after advertisement, only one prospective bidder submits an


LOI and/or applies for eligibility check

b) if after advertisement, more than one prospective bidder


submits an LOI and/or applies for eligibility check, in accordance
with the provisions of this IRR, but only one bidder meets the
eligibility requirements or criteria
c) if after the eligibility check, more than one bidder meets the
eligibility requirements, but only one bidder submits a bid

in all instances, the procuring entity shall ensure that the ABC
reflects the most advantageous prevailing price for the
government.
Award, Implementation And Termination
Of The Contract
Section 37. Notice and execution of award
37.1. Contract award

37.1.1. The BAC shall recommend to the head of the procuring entity the
award of contract to the bidder with the lowest calculated responsive
bid/highest rated responsive bid or the single calculated/rated
responsive bid after the post-qualification process has been completed.

37.2. Contract signing

37.2.1. The winning bidder shall post the required performance security
and enter into contract with the procuring entity within ten (10)
calendar days from receipt by the winning bidder of the notice of
award.

37.2.2. The procuring entity shall enter into contract with the winning
bidder within the same ten (10) day period provided that all the
documentary requirements are complied with.
THANK YOU!!

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