bidding procedures for the procurement of “goods”

BIDDING PROCEDURES FOR THE PROCUREMENT OF

“GOODS”

Salient Features

Procurement of all government agencies

Public BiddingApproved Budget for the Contract (ABC)

Use of transparent, objective and non-discretionary criteria

Increase Transparency in the procurement process

Inclusion of Penal and Civil Liabilities

Governing PrinciplesPublic MonitoringAccountabilityCompetetiveness

TransparencyStreamlined Process

Definition of TermsProcurement - refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by procuring entity. (Sec. 5(aa), IRR, R.A. 9184)

Goods and Services - refer to all items, supplies, materials and general support services, except consulting services and infrastructure projects, which may be needed in the transaction of public businesses or in the pursuit of any government undertaking, project or activity. (Sec. 5(r), IRR, R.A. 9184)

Standardized Bidding Procedures

Pre- Procurement Conference Advertisement Pre-Bid Conference

Submission of BidsOpening of

1st Envelope - EligibilityDocs & Technical

Proposal

Opening of2nd Envelope - Financial

Proposal

Bid Evaluation & Ranking Post Qualification Contract Award

PREPARATION OF BIDDING DOCUMENTS

Preparation of Bidding Documents• Prepare the Bidding Documents following the

standard forms prescribed by the GPPB;

• Specifications and other terms in the Bidding Documents shall reflect the minimum requirements or specifications required to meet the needs of the procuring entity;

• Use clear and unambiguous terms in your specifications;

• Reference to brand names not allowed

Preparation of Bidding Documents• Bidders will be asked to pay for the Bidding

Documents to recover the cost of its preparation and development;

• BAC shall issue the bidding document upon payment of the standard rate, as follows:

Approved Budget for the Contract

Maximum cost of Bidding Document

Php 500,000.00 & Below Php 500.00> 500,000.00 to 1M Php 1,000.00> 1M to 5M Php 5,000.00> 5M to 10M Php 10,000.00>10M to 50M Php 25,000.00>50M to 500M Php 50,000.00>500M Php 75,000.00

Preparation of Bidding Documents• Bidding Document must be available on the same date the

advertisement and/or posting of the Invitation to Bid is made;

• Bidding Document shall be posted at the PhilGEPS website and the Procuring Entity’s website wherein prospective bidders may download, provided that, bidders shall pay the fee for the Bidding Documents on or before submission of their bids;

• The Bidding Document shall include the following:a. Approved Budget for the Contract;b. Invitation to Bid;c. Minimum eligibility requirements;d. Instruction to Bidders;e. Technical Specifications;

INVITATION TO BID

Pre-Procurement Conference• Purpose: Determine readiness to proceed with the bidding process

• Conducted before advertisement/posting of the Invitation to Bid

• Mandatory for the procurement of Goods with ABC above Php 2M;

• Attended by the following:a. BACb. BAC Secretariatc. TWGd. Consultantse. End-user unit/Other officials

Contents of the Invitation to BidI. Name of contract to be bid and brief description of the goods to

be procured;

II. A general statement on the criteria to be used for eligibility check, evaluation of bids, and post-qualification;

III. The date, time and place of the deadline for submission and receipt of the eligibility requirements and bids; pre-bid conference, if any, and the opening of bids;

IV. The ABC;

V. The funding source;

Contents of the Invitation to BidVI. Period of availability of bidding documents, place where they

may be secured, the website where bidding documents may be downloaded, and price where applicable;

VII. Contract duration or delivery schedule;

VIII. The name, address, telephone number, fax number, e-mail, and website address of the procuring entity and designated contact person;

IX. The Reservation Clause; and

X. Other necessary information deemed relevant by the procuring entity.

Advertising and Posting of 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;.

“To be a newspaper of general nationwide circulation, it is enough that it is published for the dissemination of local news and general information, that it has a bona fide subscription list of paying subscribers, and that it is published at regular intervals. Over and above all these, the newspaper must be available to the public in general, and not just to a select few chosen by the publisher.” (Efren L. Alvarez vs. People of the Philippines; G.R. No. 192591; June 29, 2011)

Advertising and Posting of Invitation to Bid

• Not required for projects with ABC of 2M and below

• Posted continuously for 7 calendar days – a. PhilGEPS;

b. website of the PE, if any; and

c. At any conspicuous place in the premises of the PE.

Penalty for Non-Posting

• E.O. No. 662 dated 27 Sept. 2007, as amended by E.O. No. 662-A & 662-B, reiterated posting of all procurement opportunities and awards, and other related information in the PhilGEPS bulletin board;

• Failure to post the Invitation to Bid in the PhilGEPS will hold accountable officials, particularly the BAC, liable for dereliction of duty and conduct grossly prejudicial to the best interest of the service, without prejudice to other charges, whether administrative, civil or criminal, that may be filed under appropriate laws and regulation.

Pre-Bid Conference• Mandatory for projects with ABC of 1M or more;

• Held at least 12cd before deadline for bid submission. For complex items as to method and nature of the contract, PBC may

be held at least 30cd before deadline for bid submission.

• At the option of procuring entity, only bidders who purchased bid documents are allowed to attend or ask questions

• Attendance of prospective bidders is not mandatory.

Supplemental Bid Bulletin• Statements made in pre-bid shall not modify the terms of bidding

documents unless issued as a supplemental/bid bulletin;

• Issued to answer written requests for clarification or interpretation submitted by prospective bidders at least 10 c.d. before deadline for bids; or

• Issued also upon BAC’s initiative to clarify or modify any provision of Bidding Docs.

• Issued by BAC at least 7 c.d. before deadline for submission of bids; posted in PhilGEPS and agency’s website, if any;

• Bidders who have submitted bids before issuance of Supplemental/Bid Bulletin to be informed in writing and allowed to modify or withdraw their respective bids.

Supplemental Bid Bulletin• §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.

• Accordingly, PE cannot compel prospective bidders or the winning bidder to submit or comply with requirements not initially provided in the Bidding Documents or through any Supplemental/Bid Bulletin issued by the PE for the project that must be posted at the PhilGEPS’ and the PE’s website.In the event no supplemental/bid bulletin was issued and posted, the original provisions contained in the Bidding Documents remain and the prospective bidder, including the winning bidder cannot be compelled to abide or comply with the changes made by the PE. (NPM 24-2013)

Modification and Withdrawal of Bids• A bidder may modify its bid, provided it is done before the deadline

for the submission and receipt of bids;

• A bidder modifying his bid will only be allowed to send another bid equally sealed, properly identified, linked to the original and marked as a “modification”;

• Bid modifications received after the deadline shall not be considered and shall be returned to the bidder unopened;

• A bidder may withdraw his bid before the deadline for the receipt of bids;

• The bidder who withdraws its bid shall not be permitted to submit another bid, directly or indirectly, for the same contract.

Submission and Receipt of Bids

Receipt and Opening of Bids

• BAC opens bid envelopes in public to determine each bidder’s compliance with the documents required to be submitted;

• BAC shall check the submitted documents of each bidder against a checklist of required documents using a non-discretionary “pass/fail” criteria

• If a bidder submits the required documents, it shall be rated “passed” for that particular requirement.

• Bids that fail to include any of the requirement or are incomplete or patently insufficient shall be considered as “failed”.

Eligibility RequirementsSEC/DTI/CDA Registration Certificates;Class “A” Documents

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Eligibility Requirements

Mayor’s PermitClass “A” Documents

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Eligibility RequirementsClass “A” Documents

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Tax clearance per Executive Order 398, series of 2005, asfinally reviewed and approved by the BIR;

(GPPB Resolution No.21-2013)


Net Financial Contracting Capacity; and Audited Financial Statement

Class “A” Documents

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Eligibility RequirementsJoint Venture Agreement or notarized statement from the partners that they will enter into joint venture if awarded the contract.

Class “B” Documents

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FOR FOREIGN BIDDERS, Class “A” Documents may be substituted by:

• Equivalent documents issued by country• Accompanied by English translation certified by

appropriate embassy or consulate in the Philippines (Sec. 23.2 Revised IRR of R.A. 9184)

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)


FOR FOREIGN BIDDERS: • As a form of Tax Clearance, the 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, may be submitted by foreign bidders.