BIDDING PROCEDURES FOR

THE PROCUREMENT
OF GOODS AND
INFRASTRUCTURE PROJECTS
CAPACITY DEVELOPMENT DIVISION
GOVERNMENT PROCUREMENT POLICY
BOARD
TECHNICAL SUPPORT OFFICE (GPPB-TSO)

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 COMPETITIVE BIDDING

WHAT IS COMPETITIVE BIDDING?

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

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 STANDARDIZED BIDDING PROCEDURE
FOR GOODS AND INFRA
Pre-Procurement Pre-Bid
Advertisement
Conf. Conference

Opening of
Submission of Opening of 2nd
1st Env. - Eligibility
Bids Envelope – Financial
Docs & Technical
Proposal
Proposal

Bid Evaluation Post-qualification Award of

& Ranking Contract

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 II. ADVERTISEMENT/POSTING OF
THE INVITATION TO BID
Importance:
 Signals the start of the bidding process.
Procurement process should be made within 3
months starting from opening of the bids until
awarding of contract. (Sec. 38.1 IRR)

 Signals the availability of the bidding documents

to the prospective bidders. (if not mentioned in
the Invitation to Bid) (Sec. 17.3 IRR)

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 II. ADVERTISEMENT/POSTING OF
THE INVITATION TO BID
 At least once in one (1) newspaper of general nationwide
circulation, which has been regularly published for at least
two (2) years before advertisement date.

 Not required for projects with ABC of 2M and below (Goods)

and 5M and below (Infra).

 Posted continuously for 7 calendar days from the date of

advertisement
– PhilGEPS
– website of the PE, if any.
– website of IFI, if applicable.
– At any conspicuous place in the premises of the PE.

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 II. ADVERTISEMENT/POSTING OF
THE INVITATION TO BID
Above 2M/5M and
Medium
2M/5M below
Newspaper of General Nationwide
Circulation  
PhilGEPS website
 
PE’s Website, if available
 
Conspicuous Place
 
In case of foreign funded
procurement-
Website prescribed by the foreign  
government/foreign or international
funding institution. 6
 III. PRE-BID CONFERENCE
 Forum where the PE’s representatives & the bidders
discuss the different aspects of the project.
 Mandatory – ABC 1M or more;
 Discretionary – ABC less than 1M
 Held at least 12 cd before deadline for bid
submission. May be held at least 30 cd considering
the following:
a) Method, nature, and complexity of contract
b) International participation is more advantageous
All prospective bidders even those who did not buy
the Bidding Documents are allowed to attend and
raise their queries.

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 III. PRE-BID CONFERENCE

 Section 22 affords bidders the opportunity to

raise concerns or clarifications on the
requirements, terms, conditions, and
specifications stipulated in the bidding
documents for the contract to be bid.

 Questions or clarifications pertaining to the

matters that may be discussed during the pre-
bid conference must be raised at least ten (10)
calendar days before the deadline set for
the submission and receipt of bids. (NPM
49-2013)
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 III. PRE-BID CONFERENCE

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

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

• Failure to conduct a pre-bid conference for the Project

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

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 CLARIFICATION OF BIDDING
DOCUMENTS
 Supplemental/Bid Bulletins– issued by BAC to
answer requests for clarification (query submitted
10 c.d. before deadline) or interpretation, and
upon BAC’s initiative to clarify or modify any
provision of Bidding Docs. (at least 7 c.d. before
deadline for bids).

 Posted in PhilGEPS and PE’s website

 Bidders who have submitted bids before issuance

of Supplemental/Bid Bulletin must be informed in
writing and allowed to modify or withdraw their
respective bids
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 CLARIFICATION OF BIDDING
DOCUMENTS
 Section 22.5.2 RA 9184 IRR allows PEs to issue
Supplemental/Bid Bulletins upon their initiative for the
purpose of clarifying or modifying any provision in the
Bidding Documents, including the IB.

 PE has the authority to revise or amend any statement in

the Bidding Documents, including the IB, specifically when
such revision or amendment is made for the purpose of
clarifying or modifying its provisions.

 Supplemental/Bid Bulletins must be posted in the PhilGEPS

and at the PE’s website, in order to address aspects of
competition and transparency. (NPM 46-2013)

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 IV. SUBMISSION AND RECEIPT
OF BIDS
 Two-Envelope System
 1st Envelope – Eligibility Requirements and Technical
Component
 2nd Envelope – Financial Component

 Submitted to the BAC on the date, time, and place specified in the
Invitation to Bid.

 Date of submission should not be later than the following period

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

Category Maximum Period (cd)

Goods 45
Infra (50M and below) 50
Infra (above 50M) 65

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 IV. SUBMISSION AND RECEIPT
OF BIDS
 Bidders are no longer required to submit a
written LOI together with their application for
eligibility as previously required in IRR Part A
of RA 9184.

 Bidders only have to submit their bids not

later than the deadline for the submission and
receipt of bids, which can be extended or
rescheduled together with the opening of bids
as provided in Section 29 of the IRR of RA
9184. (NPM 55-2013)
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 IV. SUBMISSION AND RECEIPT
OF BIDS
 The practice of pre-qualification has been
abandoned in RA 9184 and its IRR. the results of
a pre-qualification have no legal force and effect,
bearing or weight, and cannot preempt the
findings of the BAC during the preliminary
examination of bids conducted during the
opening of bids. Hence, a bidder may still be
declared ineligible during the opening of bids
despite a finding of qualification during the
purported pre-qualification exercise. (NPM 54-
2013)

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 V. OPENING AND EVALUATION OF 1ST
ENVELOPE
CONTENTS:
1. Eligibility requirements (Relate to
Section 8.5.2.) Deferred by GPPB NPM 07-2017 dated 03 Sept.
2017

2. Bid Security
3. Technical specifications (Goods) /
Project requirements (Infra)
4. Omnibus sworn statement
Non-inclusion in blacklist
Authenticity of documents
Verification authority
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 V. OPENING AND EVALUATION OF
1ST ENVELOPE
CONTENTS (continuation):
4. Omnibus Sworn Statement
Signatory’s authority
Disclosure of relations
Responsibilities of bidders
Labor laws and standards
Non-payment (directly or indirectly)
any commission, amount, fee, or any
form of consideration in relation to
any procurement project or activity

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 V. OPENING AND EVALUATION OF
1ST ENVELOPE
 Section 30 requires that the preliminary
examination of bids be conducted by merely
checking for the presence or absence of
documentary requirements using a non-
discretionary “pass/fail” criterion.

 However, the BAC has the right to review the

qualifications of a bidder during the same stage
if it has reasonable grounds to believe that a
misrepresentation has been made or there has
been changes in the bidder’s capability to
undertake the project. (NPM 54-2013)

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 V. OPENING AND EVALUATION OF
1ST ENVELOPE

 BAC should open a reconsidered bid

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

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 ELIGIBILITY REQUIREMENTS
GOODS INFRASTRUCTURE
Class A Documents
1. DTI/SEC/CDA Registration 1. DTI/SEC/CDA Registration
2. Mayor’s permit 2. Mayor’s permit
3. Tax clearance per Executive 3. Tax clearance per Executive
Order 398, series of 2005, as Order 398, series of 2005, as
finally reviewed and approved finally reviewed and approved
by the BIR. by the BIR.
4. Statement of ongoing 4. Statement of ongoing
contracts. contracts.

5. Statement of SLCC 5. Statement of SLCC

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 ELIGIBILITY REQUIREMENTS

GOODS INFRASTRUCTURE
Class A Documents
5. Audited financial 5. PCAB license and
statement registration.
6. NFCC 6. Audited financial
statement
7. NFCC
Class B Document
JVA or notarized statement from the partners that
they will enter into joint venture if awarded the
contract.
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 MAYOR’S PERMIT

 Mayor’s Permit allows an entity to legally

perform the requirements and obligations of the
project and the resultant contract.

 It is therefore necessary for the BAC to

determine whether the Mayor’s Permit for
construction business issued to the construction
company likewise authorizes it to engage in the
business of supplying dump trucks. (NPM 36-
2013)

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REGISTRATION CERTIFICATE

SEC REGISTRATION

DTI REGISTRATION

CDA REGISTRATION

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 TAX CLEARANCE

Tax Clearance is now included as part of the

Class “A” legal eligibility documents to be
submitted during the opening of bids. (GPPB
Resolution No.21-2013)

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 TAX CLEARANCE
 EO 398 specifically requires the submission of
Tax Clearance issued by the BIR. It refers to the
clearance issued by the Collection Enforcement
Division of BIR attesting that the bidder has no
outstanding Final Assessment Notice and/or
delinquent account.

 Hence, submission of tax clearance of the

previous year and application for tax clearance
cannot be considered as compliance. (NPM 02-
2013)

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 TAX CLEARANCE

 Submission of BIR receipt for renewal of Tax Clearance will

not suffice in lieu of a valid Tax Clearance Requirement
since substitution is not allowed under Section 34.2 of the
IRR of RA 9184.

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 TAX CLEARANCE

Submission of Provisionary Tax Clearance is

not considered as sufficient compliance for
bidding purposes. (GPPB Resolution No. 33-
2013)

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 STATEMENT OF ON GOING AND
COMPLETED CONTRACTS
 “Statement of the prospective bidder of all its ongoing
government and private contracts, including contracts
awarded but not yet started, if any, whether similar or not
similar in nature and complexity to the contract to be bid,
within the relevant period as provided in the Bidding
Documents; and

 Statement identifying the bidder’s single largest

completed contract similar to the contract to be bid,
except under conditions provided for in Section 23.5.1.3 of
this IRR, within the relevant period as provided in the
Bidding Documents in the case of goods.

 All of the above statements shall include all information

required in the PBDs prescribed by the GPPB.” (Resolution
29-2012) 27
 PCAB LICENSE

 A valid PCAB license required as an eligibility

requirement for the procurement of infrastructure
projects under Section 23.1 (a) (iv) of the revised
IRR of RA 9184 should be valid at the time of
the deadline for the submission and
opening of bids.

 The submission of a PCAB license with validity

period after the date of the opening of the bids
is a ground for the prospective bidder’s
disqualification. (NPM 71-2013)

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 ELIGIBILITY REQUIREMENTS FOR
FOREIGN BIDDERS

In the case of foreign bidders, the foregoing

eligibility requirements under Class “A” Documents
may be submitted:
 Equivalent documents issued by country
 Accompanied by English translation certified by
appropriate embassy or consulate in the
Philippines

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

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 ELIGIBILITY REQUIREMENTS FOR
FOREIGN BIDDERS
 TAX CLEARANCE FOR FOREIGN BIDDERS

A Delinquency Verification Certificate issued to Non-

Resident Foreign Corporations (NRFC)/Non-Resident
Aliens Not Engaged in Trade or Business (NRANETB)
pursuant to BIR RR 3-2005, attesting to the fact that
the taxpayer has no outstanding Final Assessment
Notice and/or delinquent account may be submitted
as a form of Tax Clearance required under Sec 34.2
of the IRR. (NPM 02-2013)

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 ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES

1. WITH AN EXISTING JOINT VENTURE:

submission of a valid joint venture agreement

2. WITHOUT AN EXISTING JOINT VENTURE:

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

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 ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES

SUBMISSION OF ELIGIBILITY REQUIREMENTS:

 All co-venturers of the joint venture should

submit legal eligibility documents.

 Any of the co-venturers can submit technical

and financial eligibility requirements

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 ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES
• JV Bidders are required to submit a Joint License issued by
the PCAB in compliance with the eligibility requirement for a
“valid PCAB license and registration.

• Failure of the JV Bidder to submit a Joint License may be a

ground for its disqualification despite the submission of the
individual licenses of each joint venture partner. (NPM 17-
2013)

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 TECHNICAL ELIGIBILITY CRITERIA
 Previous contract or SINGLE LARGEST COMPLETED
CONTRACT

 Similar to the contract to be bid out (as defined by the

Bidding Documents)

 Completed within a period as defined by the Bidding

Documents

 25% of the ABC (expendable supplies)

 50% of the ABC (non-expendable supplies)

- Based on the value of the previous completed contract,
as adjusted to current prices using the NSO consumer
price index.

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 TECHNICAL ELIGIBILITY CRITERIA

GOODS – SINGLE LARGEST CONTRACT

General Rule Exceptions Then require the ff.:

1. Expendable If, at the outset and a) At least 2 similar

Supplies after market contracts aggregate
• 25% of the ABC research, applying amount at least
the general rule will equivalent to
2. Services and Non- likely result to: required percentage;
expendable and
supplies 1.Failure of bidding;
• 50% of the ABC or b) Largest of the similar
contracts amounts
2.Monopoly to at least 50% of
required percentage

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 TECHNICAL ELIGIBILITY CRITERIA
GOODS – SINGLE LARGEST CONTRACT (Illustration)
Expendable Goods Non-expendable Goods

ABC = P1,000,000 ABC = P1,000,000

GR: 25% of the ABC GR: 50% of the ABC
THUS: Previous contract should be at THUS: Previous contract should be at
least least
P250,000 P500,000
EXCEPTION: At least 2 similar EXCEPTION: At least 2 similar contracts
contracts aggregate amount at least aggregate amount at least equivalent to
equivalent to required percentage; and required percentage; and Largest of the
Largest of the similar contracts similar contracts amounts to at least
amounts to at least 50% of required 50% of required percentage.
percentage.
THUS: 1st contract = P300,000.00
THUS: 1st contract = P100,000.00 2nd contract = P400,000.00
2nd contract = P200,000.00

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 TECHNICAL ELIGIBILITY CRITERIA

INFRASTRUCTURE PROJECTS – SINGLE LARGEST

CONTRACT
 Previous contract
 Similar to the contract to be bid out (having the same civil
works components)
 50% of the ABC
- Based on the value of the previous completed contract,
as adjusted to current prices using the NSO consumer
price index.
 For foreign funded procurement, a different track record
may be agreed upon

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 FINANCIAL ELIGIBILITY CRITERIA

FOR GOODS AND INFRASTRUCTURE

PROJECTS:

• Audited Financial Statement

(showing prospective bidder’s total and
current assets and liabilities. )
• NFCC at least equal to ABC.

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 NFCC COMPUTATION

Net Financial Contracting Capacity (NFCC) =

(current assets - current liabilities) (K) MINUS
(outstanding, uncompleted portions under ongoing
contracts + contracts awarded but not yet started)

(K) = 15

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 BID SECURITY
 Procuring entity shall indicate in the Bidding Documents its
Bid Security which may be in the form of a BSD or in any
other form.
 In general, bank issued securities must be issued by a
universal or commercial bank

 Surety Bonds must be accompanied by certification from

Insurance Commission that issuer is authorized to issue
such security

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 BID SECURITY
Amount
Form of Bid Security Bid Security
(% = ABC)

a) Cash or
cashier’s/manager’s
check
2%
b) Bank guarantee/draft or
Irrevocable LC

c) Surety bond callable upon

demand 5%

d) Combination of the Proportionate to share of form with respect

foregoing to the total amount of security
e) Bid Securing Declaration No percentage required

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 BID SECURING DECLARATION

 Bid Securing Declaration

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

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 BID SECURING DECLARATION

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

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 BID VALIDITY PERIOD

 Bids and bid securities (including bid securing

declaration) shall be valid for a reasonable period
as determined by the HOPE as indicated in the
Bid Docs.
 Not to exceed 120 days
 If the period is extended, PE shall request in
writing all those who submitted bids for such
extension before the expiration date.

NOTE: Bidders have a right to refuse to grant such

extension w/o forfeiting their bid security.

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 DISCLOSURE OF RELATIONS

Relatives within the third civil degree of the

following shall be disqualified:

 Head of the procuring entity

 Members of the BAC, Secretariat and TWG
 Head of the end-user unit or project
management office
 Project consultants

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VI. OPENING AND EVALUATION OF
2ND ENVELOPE
CONTENTS:

1. Financial Bid Form (includes bid prices and bill

of quantities, as well as applicable price
schedules)

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 VII. DETAILED EVALUATION
OF BIDS
 Purpose is to determine the Lowest Calculated Bid
(LCB), by:
1. Establishing correct calculated prices of bids;
and
2. Ranking calculated total bid prices from
lowest to highest

 A non-discretionary criterion shall be used, which

shall include consideration of:
1. completeness of bids; and
2. minor arithmetical corrections

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 VII. DETAILED EVALUATION
OF BIDS
 No Contact Rule - prohibition on communication w/
bidders from bid evaluation until award of contract.

 The “no contact” rule applies only to those whose bids are
being evaluated by the BAC after passing the preliminary
examination.

 No communication should be made by bidders until a

decision to award a contract is made by the BAC.

 Bidders who waived their right to utilize the protest

mechanism or those whose request for reconsideration
and/or protest were subsequently denied are not covered
by the prohibition under §32.1 of RA 9184 IRR. (NPM 07-
2013)
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 VII. DETAILED EVALUATION
OF BIDS
 Bid Evaluation shall not be more than 7 cd.

 In case of discrepancies, the ff. shall prevail:

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

 Section 32.2.3(c) of the IRR states that where

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

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 VII. DETAILED EVALUATION
OF BIDS

 Unless the ITB specifically allows partial bids,

those not providing all required items shall be
considered non-responsive

 Placing no price is considered as non-responsive

 Specifying a “0” or “-” means it is offered for free

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 VIII. POST-QUALIFICATION

 To determine whether bidder with LCB complies

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

 BAC will notify the Bidder with the Lowest

Calculated Bid that it was determined as such.

 Within 3 c.d. from receipt of Notice, submit the ff:

1. Latest Income and Business Tax Returns;
2. Certificate of PhilGEPS Registration; and,
3. Other appropriate Licenses and permits
required by law and stated in the Bidding
Documents.

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 VIII. POST-QUALIFICATION

 BAC shall recommend award of contract to the

LOWEST CALCULATED AND RESPONSIVE BID
(LCRB) at submitted price or calculated price,
whichever is lower.

 In case of approval by HOPE, Notice of Award

should be IMMEDIATELY issued by HOPE to the
LCRB. (HOPE has 7 days to decide w/n to issue
NOA)

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 VIII. POST-QUALIFICATION

 The three (3) calendar day period under §34.2 of

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

 PE may request for the submission of additional

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

 Should PE decides to extend the period, it must

show and provide compelling, sufficient, valid,
reasonable, and justifiable cause. Such valid
justification, however, will only free officials from
penal sanction or liability, but not from
applicable administrative and civil sanctions or
liabilities under existing laws, rules and
regulations. (NPM 57-2013)

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 FAILURE OF BIDDING
GROUNDS:

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

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 FAILURE OF BIDDING
EFFECTS:
1) Mandatory review shall be conducted by BAC

2) Based on findings, BAC shall:

 Revise terms, conditions, specifications
 Adjust ABC, subject to required approvals

3) Re-bidding

4) Re-advertisement

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 IX. AWARD OF CONTRACT

 Contract shall be awarded to the bidder with the

Lowest Calculated and Responsive Bid (LCRB) at
its submitted price or total calculated bid price,
whichever is lower
 Notice of Award (NOA) is issued by the HOPE
 NGAs and LGUs – 7 cd
 GOCCs and GFIs – 15 cd

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 IX. AWARD OF CONTRACT

 NOA is subject to the following conditions:

◦ If joint venture, submission of JVA
◦ If foreign-funded and stated in treaty, international or
executive agreement, PCAB License
◦ Posting of Performance Security
◦ Signing of Contract (within 10 cd)
◦ If required, approvals by higher authority

PROCUREMENT PROCESS
From Opening of Bids to Award of Contract shall
NOT EXCEED 3 MONTHS

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 THANK YOU!!

Contact us:

Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605

TeleFax: (632)900-6741 to 44

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