MODULE 14: TOPIC 16 b) BAC

❖ Bids and Awards Committee

REPUBLIC ACT NO. 9184 c) Bidding Documents
❖ documents issued by the Procuring Entity as the
basis for Bids, furnishing all information
AN ACT PROVIDING FOR THE
necessary for a prospective bidder to prepare a
MODERNIZATION, STANDARDIZATION AND bid for the Goods, Infrastructure Projects, and
REGULATION OF THE PROCUREMENT Consulting Services to be provided
ACTIVITIES OF THE GOVERNMENT AND FOR d) Bid
OTHER PURPOSES ❖ signed offer or proposal submitted by a supplier,
manufacturer, distributor, contractor or consultant
“Government Procurement Reform Act” in response to the Bidding Documents
e) Competitive Bidding
1. What is RA 9184? ❖ method of procurement which is open to
❖ an act providing for the modernization, participation by any interested party
standardization, and regulation of the ❖ consists of the ff processes:
procurement activities of the government and for o advertisement
other purposes o pre-bid conference
2. What are the principles of government o eligibility screening of prospective
procurement? bidders
❖ Transparency in the procurement process & in o receipt and opening of bids,
the implementation of procurement contracts. o evaluation of bids
❖ Competitiveness by extending equal opportunity o post-qualification, and
to enable private contracting parties who are o award of contract,
eligible & qualified to participate in public bidding. ❖ specific requirements and mechanics of which
❖ Streamlined procurement process – will shall be defined in the IRR
uniformly apply to all government procurement. f) Consulting Services
(Process shall be simple & made adaptable to ❖ refer to services for Infrastructure Projects and
advances in modern technology in order to other types of projects or activities of the Gov’t
ensure an effective and efficient method) requiring adequate external technical and
❖ System of accountability – both the public professional expertise that are beyond the
officials directly or indirectly involved in the capability and/or capacity of the gov’t to
procurement process & implementation of undertake such as, but not limited to:
procurement contracts & the private parties that o advisory and review services
deal with gov’t are, when warranted by o pre-investment or feasibility studies
circumstances, investigated and held liable for o design
their actions relative thereto. o construction supervision
❖ Public monitoring – on the process & o management and related services
implementation of awarded contracts with the end o other technical services or special
in view of guaranteeing that these contracts are studies.
awarded pursuant to the provisions of this Act and g) G-EPS
its IRR, and that all these contracts are performed ❖ Government Electronic Procurement System
strictly according to specifications. h) Goods
3. What is the scope of application of RA 9184? ❖ all items, supplies, materials and general support
❖ All procurement of the national gov’t, its services,
departments, bureaus, offices and agencies, ❖ except – consulting services and infrastructure
(state universities and colleges, GOCCs, projects, w/c may be needed in the transaction of
government financial institutions & LGUs) public businesses or in the pursuit of any gov’t
4. What is the scope and limitation of GPRA? undertaking, project or activity, whether in the
❖ Procurement of Infrastructure Projects, nature of equipment, furniture, stationery,
Goods, and Consulting Services, regardless of materials for construction, or personal property of
source of funds, local or foreign, by all branches any kind, including non-personal or contractual
and instrumentalities of gov’t, its departments, services such as the repair and maintenance of
offices and agencies, including GOCCs and equipment and furniture, as well as trucking,
LGUs hauling, janitorial, security, and related or
❖ Any treaty or international/executive agreement analogous services, as well as procurement of
affecting the subject matter to w/c the PH gov’t is materials and supplies provided by the procuring
a signatory shall be observed. entity for such services.
5. Define the following terms (abridged form) i) GPPB
❖ Government Procurement Policy Board
a) Approved Budget for the Contract (ABC) j) Head of the Procuring Entity
❖ National Government Agencies – budget for ❖ Nat’l gov’t – the head of the agency or his duly
the contract duly approved by the Head of the authorized official
Procuring Entity (General Appropriations Act) ❖ GOCCs - the governing board or its duly
❖ GOCCs, GFI and State Universities and authorized official or
Colleges - Corporate Budget for the contract ❖ LGUs - the local chief executive
approved by the governing Boards (E.O. No. 518,
series of 1979) TAKE NOTE
❖ LGUs – Budget for the contract approved by the Provided, that in a department, office or agency where the
respective Sanggunian procurement is decentralized, the Head of each
decentralized unit shall be considered as the Head of the
Procuring Entity subject to the limitations and authority
*GFI - Government Financial Institutions delegated by the head of the department, office or agency.

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 k) Infrastructure (Infrastructure Projects) •Infrastructure Projects –
❖ construction, improvement, rehabilitation, include engineering and
demolition, repair, restoration or maintenance of acquisition of right-of-
roads and bridges, railways, airports, seaports, way
communication facilities, civil works components ❖ Procurement By Electronic Means
of information technology projects, irrigation, o Information and communications
flood control and drainage, water supply, technology – be utilized in the conduct
sanitation, sewerage and solid waste of procurement procedures.
management systems, shore protection, ▪ WHY – to promote transparency
energy/power and electrification facilities, and efficiency
national buildings, school buildings, hospital o A single portal that shall serve as the
buildings and other related construction projects primary source of information on all
of the government. government procurement.
l) IRR o G-EPS – serve as the primary and
❖ implementing rules and regulations to be definitive source of information on
promulgated government procurement.
m) Portal ▪ GPPB – authorized to approve
❖ a website that aggregates a wide variety of changes in the procurement
content for the purpose of attracting a large process to adapt to
number of users. improvements in modern
n) Procurement technology, provided that such
❖ acquisition of Goods, Consulting Services, and modifications are consistent w/
❖ the contracting for Infrastructure Projects by the this Act
Procuring Entity o To take advantage of the significant built-
❖ Include: in efficiencies of the G-EPS and the
o lease of goods and real estate volume discounts inherent in bulk
❖ Procurement of Real property – RA 8974 purchasing – all Procuring Entities shall
(Right-of-Way Act) utilize the G-EPS for the procurement of
o) Procuring Entity common supplies in accordance with the
❖ any branch, department, office, agency, or rules and procedures to be established
instrumentality of the government, including state by the GPPB.
universities and colleges, GOCCs, GFI, and o Procurement of non-common use
LGUs procuring Goods, Consulting Services and items – infrastructure projects and
Infrastructure Projects. consulting services, agencies may hire
6. What is the procurement process of the service providers to undertake their
Philippine government? electronic procurement provided these
service providers meet the minimum
❖ Standardization of Procurement Process and requirements set by the GPPB.
Forms: 7. Summarize the following procurement
o To systematize the procurement procedures:
process, avoid confusion and ensure
transparency - procurement process, & a) Preparation of bidding documents
forms shall be standardized as
practicable. ❖ Form and Contents of BD:
o GPPB shall pursue the development o BD – prepared by the Procuring Entity ff
of generic procurement manuals and the standard forms and manuals
standard bidding forms – use of w/c prescribed by the GPPB.
once issued be mandatory upon all PE o The BD shall include the ff:
❖ Procurement Planning: ▪ Approved Budget for the
o All procurement should be w/in the Contract
approved budget of the Procuring Entity ▪ Instructions to Bidders, including
and should be meticulously and criteria for eligibility, bid
judiciously planned by the Procuring evaluation and post qualification,
Entity concerned. as well as the date, time and
o Consistent with gov’t fiscal discipline place of the pre-bid Conference
measures, only those considered crucial (where applicable), submission
to the efficient discharge of governmental of bids and opening of bids
functions shall be included in the Annual ▪ Terms of Reference
Procurement Plan to be specified in the ▪ Eligibility Requirements
IRR. ▪ Plans and Technical
o NOTE: No government Procurement Specifications
shall be undertaken unless it is in ▪ Form of Bid, Price Form, and List
accordance with the approved Annual of Goods or Bill of Quantities
Procurement Plan of the Procuring Entity ▪ Delivery Time or Completion
▪ Annual Procurement Plan Schedule
• approved by the Head of ▪ Form and Amount of Bid Security
the Procuring Entity ▪ Form and Amount of
• must be consistent with Performance Security and
its duly approved yearly Warranty &
budget ▪ Form of Contract, and General
• formulated and revised and Special Conditions of
only in accordance with Contract
the guidelines in the IRR
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 o PE may require addt’l requirements or CONTENTS OF INVITATION TO BID:
specifications necessary to complete the ❖ Brief description of the subject matter of the Procurement
info req’d for the bidders & submit their ❖ General statement on the criteria to be used by the
respective bid Procuring Entity for the eligibility check, the short listing
of prospective bidders, in the case of the Procurement of
Consulting Services, the examination and evaluation of
*PE – Procuring Entity Bids, and post-qualification
❖ Date, time and place of the deadline for the submission
❖ Reference to Brand Names: and receipt of the eligibility requirements, the pre-bid
o Specifications for the Procurement of conference if any, the submission and receipt of bids,
and the opening of bids
Goods shall be based on relevant
❖ Approved Budget for the Contract to be bid
characteristics and/or performance ❖ Source of funds
requirements. ❖ Period of availability of the Bidding Documents, and the
o Reference to brand names shall NOT be place where these may be secured
allowed. ❖ Contract duration
❖ Access to Information: ❖ Other necessary information deemed relevant by the
o In all stages of the preparation of the Procuring Entity.
BD – PE shall ensure equal access to
information. ❖ Pre-Bid Conference:
o Prior to their official release – no o At least 1 pre-bid conference be
aspect of the BD shall be divulged or conducted for each procurement
released to any prospective bidder or ▪ Unless otherwise provided in
person having direct or indirect interest in IRR
the project to be procured. o Can conduct one conference upon
b) Invitation to bid written request of any prospective bidder
subject to the approval of the BAC
❖ Pre-Procurement Conference o Held w/in a reasonable period before the
o Prior to the issuance of the Invitation deadline for receipt of bids to allow
to Bid – BAC is mandated to hold a pre- prospective bidders to adequately
procurement conference on each and prepare their bids (specified in the IRR)
every procurement, c) Receipt and opening of bids
▪ Except: those contracts below a
certain level or amount specified ❖ Eligibility Requirements for the Procurement
in the IRR, in w/c case, the of Goods and Infrastructure Projects:
holding of the same is optional. o BAC or its duly designated organic
o Pre-procurement conference -assess office – determine the eligibility of
the readiness of the procurement in prospective bidders for the procurement
terms of confirming the certification of of Goods and Infrastructure Projects,
availability of funds, as well as reviewing based on the bidders’ compliance w/ the
all relevant documents in relation to their eligibility requirements w/in the period in
adherence to law. the Invitation to Bid.
▪ Attended by the BAC, the unit or o Eligibility requirements – provide for
officials who prepared the fair and equal access to all prospective
bidding documents and the draft bidders.
Invitation to Bid, as well as o Documents submitted in satisfaction
consultants hired by the agency of the eligibility requirements – be
concerned and the made under oath by the prospective
representative of the end-user. bidder or by his duly authorized
❖ Advertising and Contents of the Invitation to representative certifying to
Bid: ▪ the correctness of the
o All Invitations to Bid for contracts under statements made and
competitive bidding shall be advertised ▪ the completeness and
by the Procuring Entity (principle of authenticity of the documents
transparency and competitiveness) submitted.
▪ manner and length of time – as o Prospective bidder – allowed to submit
may be necessary under the his eligibility requirements electronically.
circumstances ▪ However, bidder shall later on
▪ WHY? to ensure the widest certify under oath as to
possible dissemination correctness & the completeness
▪ Methods but not limited to & authenticity
posting in the: ❖ Eligibility Requirements and Short Listing for
• PE’s premises Consulting Services:
• newspapers of general o Eligibility of prospective bidders for
circulation, the Procurement of Consulting
• G-EPS Services – determined by their
• website of the PE (if compliance w/ the eligibility requirements
available) prescribed for the Competitive Bidding
o Details and mechanics of concerned, w/in the period stated in the
implementation – provided in the IRR Invitation to Bid.
o Eligibility requirements – provide for
fair and equal access to all prospective
bidders.

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 Prospective bidder – certify under oath
o o Minutes of the bid opening – made
as to the correctness of the statements available to the public upon written
and the completeness and authenticity of request & payment of a specified fee
the documents submitted.
o Prospective bidder – submit his d) Bid evaluation
eligibility requirements electronically.
▪ However, later on certify under ❖ Preliminary Examination of Bids:
oath as to correctness, the o BAC – examine first the technical
completeness and authenticity components of the bids using "pass/fail"
o Eligible prospective bidders – criteria to determine whether all required
evaluated using numerical ratings on the documents are present.
basis of the short listing requirements to ▪ When: Prior to Bid evaluation
determine the short list of bidders who o Only bids w/ all the bid requirements of
shall be allowed to submit their the technical component shall be
respective bids. considered for opening and evaluation of
❖ Submission and Receipt of Bids: their financial component.
o Bid – have 2 components, namely: ❖ Ceiling for Bid Prices – ABC be the upper limit
▪ technical and financial or ceiling for the Bid prices.
components which should be in o BP that exceeds this ceiling shall be
separate sealed envelopes, and disqualified outright from further
w/c shall be submitted participating in the bidding.
simultaneously. o no lower limit to the amount of the award.
▪ received by the BAC on such ❖ Bid for the Procurement of Goods and
date, time and place specified in Infrastructure Projects:
the invitation to bid. o BAC – evaluate the financial component
o Deadline for the receipt of bids – fixed of the bids.
by the BAC, giving the prospective o Bids passed the preliminary
bidders sufficient time to study and examination – ranked from lowest to
prepare their bids. highest in terms of their corresponding
▪ consider the urgency of the calculated price
procurement involved. ▪ referred as the "Lowest
▪ submitted after the deadline shall Calculated Bid".
not be accepted. ❖ Bid Evaluation of Short-Listed Bidders for
Consulting Services:
TAKE NOTE o Bids of the short-listed bidders –
GPPB may prescribe innovative procedure for the evaluated and ranked using numerical
submission, receipt and opening of bids through the G-EPS. ratings in accordance with the evaluation
criteria stated in the BD,
❖ Modification and Withdrawal of Bids: ▪ include factors – experience,
o Bidder may modify his bid – done performance, quality or
before the deadline for the receipt of bids. personnel, price and
o Modification – submitted in a sealed methodology
envelope duly identified as a modification ▪ ranked from highest to lowest in
of the original bid and stamped received terms of their corresponding
by the BAC. calculated ratings
o Withdrawal – (express his intention not o Bid w/ highest calculated rating –
to participate in the bidding) ”Highest Rated Bid."
▪ Mode: thru a letter o After approved by the Head of the PE of
▪ When: before the deadline for the HRB, BAC invites the bidder
the receipt of bids. concerned for negotiation/clarification on
▪ he shall no longer be allowed to the ff item:
submit another Bid or the same ▪ financial proposal submitted by
contract either directly or the bidder,
indirectly. ▪ terms of reference,
❖ Bid Security – All Bids be accompanied by a Bid ▪ scope of services,
security, ▪ methodology and work program,
o serve as guarantee (after receipt of the ▪ personnel to be assigned to job,
Notice of Award, the winning bidders – ▪ services/facilities/data to be
enter into contract with the PE w/in the provided by the PE concerned,
stipulated time and furnish the required and
performance security) ▪ provisions of the contract.
o Specific amounts and allowable forms of o When negotiations with first-in-rank
the Bid security – IRR bidder fails – financial proposal of the
❖ Bid Validity – Bids and Bid securities valid for second rank bidder shall opened for
such reasonable period of time indicated in the negotiations
Bidding Documents. ▪ amount indicated in the financial
o Duration for each undertaking – take envelope shall be made as the
into account the time involved in the basis for negotiations and the
process of Bid evaluation and award of total contract amount shall not
contract. exceed the amount indicated in
❖ Bid Opening – BAC shall publicly open all bids the envelope and the ABC.
at the time, date, and place specified in the
bidding documents.
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 ▪Whenever necessary, the same o In all instances, the PE ensure that ABC
process be repeated until the bid reflects the most advantageous
awarded to the winning bidder. prevailing price for the gov’t.
e) Post-qualification f) Award, implementation, and termination of
the contract
❖ Objective and Process of Post-qualification:
o Post-qualification – stage where the ❖ Notice and Executive of Award:
bidder w/ the Lowest Calculated Bid o W/in a period not exceeding 15
(goods & IP) or the Highest Rated Bid calendar days from the determination
(CS) undergoes verification and and declaration by the BAC of the LCRB
validation whether he has passed all the or HRRB & the recommendation of the
requirements and conditions (specified in award – the Head/representative shall
the BD) approve or disapprove the said
o Bidder passes all the criteria for post- recommendation.
qualification - Bid shall be considered ▪ In case of approval – Head or
the "Lowest Calculated Responsive Bid" representative shall immediately
(goods & IP) or "Highest Rated issue the Notice of Award to the
Responsive Bid" (CS) bidder w/ the LCRB or HRRB
o Failure to meet any of the o W/in 10) calendar days from receipt of
requirements or conditions – “post- the Notice of Award – Winning bidder
disqualified" & the BAC conduct the post- formally enter into contract with the PE.
qualification on the bidder with the 2nd ▪ IF further approval of higher
Lowest Calculate Bid or Highest Rated authority is required –
Bid. approving authority for the
o Bidder w/ second Lowest Calculated contracts is given a maximum of
Bid or Highest Rated Bid is post- 20 calendar days to approve or
disqualified – the same procedure shall disapprove it.
be repeated until the LCRB or HRRB is o GOCCs – concerned board take action
finally determined. on the said recommendation w/in 30
calendar days from receipt
TAKE NOTE o PE – issue the Notice to Proceed to the
In all cases, the contract shall be awarded only to the winning bidder not later than 7 calendar
bidder with the Lowest Calculated Responsive Bid or days from the date of approval of the
Highest Rated Responsive Bid. contract by the appropriate authority.
o All notices called for by the terms of
❖ Failure of Bidding: the contract – effective only at the time
o there shall be a failure of bidding if: of receipt by the contractor.
▪ No bids are received ❖ Period of Action on Procurement Activities:
▪ No bid qualifies as the Lowest o Period (opening of bids up to the award
Calculated Responsive Bid or of contract):
▪ Whenever the bidder w/ the ▪ not exceed 3 months, or
highest rated/lowest calculated ▪ shorter period to be determined
responsive bid refuses, w/o by PE concerned.
justifiable cause to accept the o Different procurement activities – w/in
award of contract reasonable periods to be specified in the
IRR.
o If no action on the contract is taken by
Note: Under any of the above instances, the contract shall be
re-advertised and re-bid. The BAC shall observe the same the head/representative w/in the
process and set the new periods according to the same rules periods above – contract concerned
followed during the first bidding. After the second failed bidding, shall be deemed approved.
however, the BAC may resort to negotiated procurement. ❖ Performing Security:
o Prior to the signing of the contract –
❖ Single Calculate/Rated and Responsive Bid winning bidder shall be required to post a
Submission: performance security in such form and
o Considered for award if it falls under amount as specified in the BD
of the ff circumstances: o WHY? as a measure of guarantee for the
❖ If after advertisement, only one prospective faithful performance of a compliance w/
bidder submits a Letter of Intent and/or applies his obligations under the contract
for eligibility check, and meets the eligibility prepared
requirements or criteria, after which it submits a ❖ Failure to Enter into Contract and Post
bide, which is found to be responsive to the Performance Security:
bidding requirements o Failure/refuses/unable to enter into a
❖ If after the advertisement, more than one contract with the PE (for justifiable
prospective bidder applies for eligibility check,
causes) or fails to post the required
but only one bidder meets the eligibility
requirements or criteria, after which in submits performance security within the
a bid which is found to be responsive to the period – BAC disqualify bidder and
bidding requirements or undertake post-qualification for the next-
❖ If after the eligibility check, more than one ranked LCB or HRB.
bidder meets the eligibility requirements, but ▪ repeated until an award is made.
only one bidder submits a bid, and its bid is ▪ if no award is possible, the
found to be responsive to the bidding contract shall be subjected to a
requirements. new bidding.

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 o
Failure to post the required elaborate BD because the supplier is
performance security – bid security be simply asked to submit a price quotation
forfeited without prejudice to the or a pro-forma invoice together with the
imposition of sanctions conditions of sale, which offer may be
❖ Reservation Clause: accepted immediately or after some
o The Head of the Agency reserves the negotiations
right to reject any and all Bids, declare a
failure of bidding, or not award the Conditions for Direct Contracting
contract in the ff situations: Resorted to only in any of the ff conditions:
❖ If there is prima facie evidence of collusion a. Procurement of Goods of proprietary nature, which
between appropriate public officers or employees can be obtained only from the proprietary source
of the Procuring Entity, or between the BAC and i.e. when patents, trade secrets and copyrights
any of the bidders, or if the collusion is between or
among the bidders themselves, or between a bidder
prohibit others from manufacturing the same
and a third party, including any act which restricts, item;
suppresses or nullifies or tends to restrict, suppress b. When the Procurement of critical components
or nullify competition from a specific manufacturer, supplier or
❖ If the BAC is found to have failed in following the distributor is a condition precedent to hold a
prescribed bidding procedures; or contractor to guarantee its project performance, in
❖ For any justifiable and reasonable ground where accordance with the provisions of his contract
the award of the contract will not redound to the c. Those sold by an exclusive dealer or
benefit of the gov’t as defined in the IRR.
manufacturer, w/c does not have sub dealers
selling at lower prices and for which no suitable
❖ Contract Implementation and Termination: substitute can be obtained at more advantageous
o Rules and guidelines for the terms to the Government.
implementation and termination of
contracts awarded – prescribed in the o Repeat Order – a method of
IRR. (Include standard general and Procurement that involves a direct
special conditions for contracts.) Procurement of Goods from the previous
8. What is the provision on the disclosure of winning bidder, whenever there is a need
relations in the GPRA? to replenish Goods procured under a
❖ In addition to the proposed contents of the contract previously awarded through
Invitation to Bid as mentioned under Section 21 Competitive Bidding
of this Act, all bidding documents shall be
accompanied by a sworn affidavit of the bidder Conditions for Repeat Order
that he or she or any officer of their corporation is When provided for in the APP, RO may be allowed wherein
not related to the Head of the Procuring Entity by the PE directly procures Goods from the previous winning
consanguinity or affinity up to the third civil bidder whenever there arises a need to replenish goods
degree. procured under a contract previously awarded through
9. What is the effect for failure to comply with the Competitive Bidding, subject to post-qualification process
disclosure of relations requirement? prescribed in the BD and provided all the following
conditions are present:
❖ Failure to comply with the aforementioned
a. The unit price must be equal to or lower than that
provision shall be a ground for the automatic provided in the original contract
disqualification of the bid in consonance with b. The repeat order does not result in splitting of
Section 30 of this Act. requisitions or purchase orders
10. What are the alternative methods of c. Except in special circumstances defined in the IRR,
procurement? Enumerate and summarize the the repeat order shall be availed of only w/in 6
different methods. months from the date of the Notice to Proceed
❖ Subject to the prior approval of the Head or rep, arising from the original contract; and,
& whenever justified by the conditions the PE d. The repeat order shall not exceed 25% of the
quantity of each item of the original contract.
may, (to promote economy and efficiency) resort
to any of the following alternative methods of
Procurement: *APP - Annual Procurement Plan
o Limited Source Bidding (Selective
Bidding) – a method of Procurement that o Shopping – a method of Procurement
involves direct invitation to bid by the PE whereby the Procuring Entity simply
from a set of preselected suppliers or requests for the submission of price
consultants w/ known experience & quotations for readily available off-the-
proven capability relative to the shelf Goods or ordinary/regular
requirements of a particular contract equipment to be procured directly from
suppliers of known qualification; or
Conditions for Limited Source Bidding
Resorted to only in any of the ff conditions: Conditions for Shopping
a. Procurement of highly specialized types of Goods Resorted to under any of the ff conditions:
and Consulting Services w/c are known to be a. When there is an unforeseen contingency
obtainable only from a limited number of sources; or requiring immediate purchase: Provided,
b. Procurement of major plant components where it however, That the amount shall not exceed P50,000
is deemed advantageous to limit the bidding to b. Procurement of ordinary or regular office
known eligible bidders in order to maintain an supplies and equipment not available in the
optimum and uniform level of quality and Procurement Service involving an amount not
performance of the plant as a whole. exceeding P250,000: Provided, however, That the
Procurement does not result in Splitting of
o Direct Contracting (Single Source Contracts: Provided, further, That at least 3 price
quotations from bona fide suppliers shall be
Procurement) – a method of obtained.
Procurement that does not require
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 Note: above amounts shall be subject to a periodic review by
the GPPB. For this purpose, the GPPB shall be authorized to
increase or decrease the said amount in order to reflect changes
in economic conditions and for other justifiable reasons

o Negotiated Procurement – a method of

Procurement that may be resorted under
the extraordinary circumstances
provided for in Section 53 of this Act and
other instances that shall be specified in
the IRR, whereby the Procuring Entity
directly negotiates a contract with a
technically, legally and financially
capable supplier, contractor or
consultant.

Conditions for Negotiated Procurement

Allowed to only in any of the ff instances:
a. In cases of two failed biddings
b. In case of imminent danger to life or property
during a state of calamity, or when time is of the
essence 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 services,
infrastructure facilities and other public utilities
c. Take-over of contracts, which have been
rescinded or terminated for causes provided for in
the contract and existing laws, where immediate
action is necessary to prevent damage to or loss of
life or property, or to restore vital public services,
infrastructure facilities and other public utilities
d. Where the subject contract is adjacent or
contiguous to an on-going infrastructure
project, as defined in the IRR: Provided, however,
That the original contract is the result of a
Competitive Bidding; the subject contract to be
negotiated has similar or related scopes of work; it
is within the contracting capacity of the contractor;
the contractor uses the same prices or lower unit
prices as in the original contract less mobilization
cost; the amount involved does not exceed the
amount of the ongoing project; and, the contractor
has no negative slippage: Provided, further, That
negotiations for the procurement are commenced
before the expiry of the original contract. Whenever
applicable, this principle shall also govern
consultancy contracts, where the consultants have
unique experience and expertise to deliver the
required service; or,
e. Subject to the guidelines specified in the IRR,
purchases of Goods from another agency of the
Government, such as the Procurement Service of
the DBM, which is tasked with a centralized
procurement of commonly used Goods for the
government

TAKE NOTE
In all instances, the Procuring Entity shall ensure that the
most advantageous price for the Government is
obtained.

Pagestudy
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