republic act no. 9184 for lgus.ppt

Republic Act No. 9184Government Procurement Reform Act

Republic Act No. 9184Significance of RA 9184 in this seminarAims of this portionSalient features of RA 9184EffectivityGoverning Principles of ProcurementCoverage & ProcedureAlternative Procurement MethodsSanctions

Republic Act No. 9184Simplification of pre-qualification and the strengthening of post-qualificationUse of the Lowest Calculated and Responsive Bid for goods, supplies, materials and related services; and Highest Rated and Responsive Bid for consulting servicesUse of the Approved Budget for the Contract (ABC) as ceiling for the bid price Use of transparent, objective and non-discretionary criteriaIncreased transparency in the procurement processProfessionalization of procurement officialsInclusion of Penal and Civil Liabilities

Republic Act No. 9184

Effectivity: 26 January 2003 (RA 9184)

18 October 2003 (IRR)

Amended RA 7160 (Local Government Code of 1991) accordingly

Republic Act No. 9184Governing Principles of Procurement

TransparencyEqual Opportunity (through standardization)Streamlined ProcessAccountabilityPublic Monitoring


Coverage:Goods:ItemsSuppliesMaterialsneeded inTransaction of public businessPursuit of any government undertaking, project or activity


whether in the nature of equipment, furniture, stationery, materials for construction, or personal property of any kind


Still considered as goods:Services that are not consulting services

General Support Services(e.g. Janitorial, Security, Repair and Maintenance Services)Related or Analogous Services(e.g. Lease of Office Space)Materials and supplies needed for such services

Republic Act No. 9184Consulting Services:

services for Infrastructure Projects and other types of projects or activities of the Government

requiring adequate external technical and professional expertise

beyond the capability and/or capacity of the Government to undertake

Republic Act No. 9184Infrastructure projects/Civil Works:Construction, Improvement, Rehabilitation, Demolition, Repair, Restoration or Maintenance of: roads and bridges, railways, airports, seaports, communication facilities, civil works components of information technology projects, 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

Republic Act No. 9184General Rule (section 10, RA 9184):

Competitive Bidding!

Republic Act No. 9184What is Competitive Bidding?[Section 5 (e), RA 9184]Method of procurement Open to participation by any interested party 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, Specific requirements and mechanics of which shall be defined in the IRR to be promulgated under this Act

Republic Act No. 9184The General Processes of Competitive Bidding:AdvertisementPre-bid conference Eligibility screening of prospective biddersReceipt and opening of bidsEvaluation of bidsPost-qualificationAward of contract

Republic Act No. 9184Bid and Awards Committee (BAC) Formation

BAC Structure:

Amended RA 7160 BAC formation as shall be stated later

Republic Act No. 9184BAC Composition:

Head of Procuring Entity (Local Chief Executive)Now forbidden as Chairperson or member of BAC

Republic Act No. 9184BAC Composition: One (1) representative each From the regular offices under the office of the local chief executive (e.g., Office of the Provincial/City/Municipal Administrator, Budget Office, Legal Office, General Services, Engineering Service)

To be appointed by the local chief executive

Republic Act No. 9184BAC Composition:Observers: Two (2)At least one (1) shall come from a duly recognized private group in a sector or discipline relevant to the procurement at hand The other from a non-governmental organization (NGO)

COA Representative


No. of Members:At least Five (5) but not more than Seven (7)

COA Representative & Observers (non-members)


Now more professionalized!

honoraria to the BAC members in an amount not to exceed twenty-five percent (25%) of their respective basic monthly salary subject to availability of funds (Section 15)

Private Legal Assistance as part of indemnification package of BAC Member (Section 72)

Republic Act No. 9184Bid Documents Preparation:

Prepared by procuring entity Following the standard forms and manuals prescribed by the GPPB

Republic Act No. 9184Technical Working Group

from a pool of technical, financial and/or legal experts assist in the procurement process particularly in the eligibility screening, evaluation of bids and postqualification

Standardized Bidding Procedures for GoodsPre-ProcurementConf.2-wk advertisementPre-BidConferenceOpening ofEligibility Env. &Eligibility CheckOpening ofTech. Env. &Prel. Exam.Opening ofFinancial Env.Submission ofEligibility Req. & BidBid Evaluation& RankingPostqualificationAward ofContract

Republic Act No. 9184Pre-Procurement ConferencePurposes:1. Ensure that the procurement is in accordance with the project and annual procurement plans;

Republic Act No. 9184Pre-Procurement ConferencePurposes:

2. Determine the readiness of the procurement at hand, including, among other aspects, confirmation of the availability of ROW, the ownership of affected properties, availability of appropriations and programmed budget for contract, and adherence of bidding documents, technical plans, specifications, scope of work, and/or TOR, and other related matters, to relevant general procurement

Republic Act No. 9184Pre-Procurement ConferencePurposes:3. Review, modify and agree on the criteria for eligibility screening to ensure their fairness, reasonableness and that they are of the pass/fail type and are written in such manner;

4. Review, modify and agree on the criteria for the evaluation of bids/proposals to ensure their fairness, reasonableness and applicability to the procurement at hand;

Republic Act No. 9184Pre-Procurement ConferencePurposes:

5. Clarify that the specifications and other terms in the bidding documents are minimum requirements and that the bidder may submit an offer which provides for superior specifications and/or better terms and conditions to the Government at no extra cost, without any bonus, credit or premium in the bid evaluation; and

Republic Act No. 9184Pre-Bid ConferencePurposes:

6. Reiterate and emphasize the importance of confidentiality during the bid evaluation process, and the applicable sanctions and penalties, as well as agree on measures to ensure compliance with the foregoing.

Republic Act No. 9184Invitation to Bid

PublicationWebsitePosting

Republic Act No. 9184Publication:Twice:Minimum 6 days maximum 14 days in between publicationNewspaper of general nationwide circulationNewspaper published at least 2 years prior to advertisement

Republic Act No. 9184Posting @ Website

Website of the procuring entityWebsite of the service provider of the procuring entity, if availableMaximum period of 14 days

Republic Act No. 9184Posting at premises

Conspicuous placeReserved for the purposeCertified by the BAC Secretariat of the procuring entity

Republic Act No. 9184Pre Bid Conference:

Less than P1M, discretionary for BAC to conduct.Held at least 12 days before the receipt and opening of bids.Any statement made at the pre-bid conference shall not modify the terms of the bidding documents, unless such statement is specifically identified in writing as an amendment thereto and issued as a Supplemental/Bid Bulletin.

Republic Act No. 9184Eligibility Check:

BAC determines if each prospective bidder is eligible to participate By examining the completeness of each prospective bidders eligibility requirements or statements against a checklist of requirementsUsing a non-discretionary pass/fail criteria

Republic Act No. 9184Eligibility Documents:

Class A DocumentsClass B Documents


Class A Documents:

May be maintained in a file with the BACSuppliers maintain this file current and updated at least once a year, or more frequently when neededBAC certification to that files are current and updated submitted to the procuring entity concerned in lieu of the foregoing Class A documents


Class B Documents:

Submitted per bidding activity

Republic Act No. 9184What are these Class A Documents?

Legal Documents:DTI/SEC registration documents, as applicableMayors Permit/Municipal LicensesNon-blacklisting statementsTINOther appropriate Licenses/Permits


Technical Documents:Statement of the prospective bidder of all its ongoing and completed government and private contracts within the relevant period, including contracts awarded but not yet started, if any


Financial Documents:1. Audited financial statements, stamped received by the BIR or its duly accredited and authorized institutions, for the immediately preceding calendar year, showing, among others, the prospective bidders total and current assets and liabilities


Financial Documents:2. Bidders Computation of Net Financial Contracting Capacity (NFCC); or a commitment from a licensed bank to extend to it a credit line if awarded the contract to be bid, or a cash deposit certificate, in an amount not lower than that set by the procuring entity in the Bidding Documents, which shall be at least equal to ten percent (10%) of the approved budget for the contract to be bid

Republic Act No. 9184What are these Class B Documents?

Valid joint venture agreement, in case of a joint venture Letter authorizing the BAC or its duly authorized representative/s to verify any or all of the documents submitted for the eligibility check

Republic Act No. 9184Eligibility Criteria:

Nationality/Proof of ExistenceProspective bidders largest single contractNFCC or credit line/cash commitment


Nationality/Proof of Existencea. Duly licensed Filipino citizens/sole proprietorships b. 60% Duly organized and existing Filipino Partnershipsc. 60% Duly organized and existing Filipino Corporationsd. Joint Venture with 60% Filipino intereste. Duly registered cooperatives Not Applicable for foreign procurement


Prospective Bidders largest single contract

adjusted to current pricescompleted within time period specified in Invitationsimilar to the contract to be bidat least fifty percent (50%) of the ABC


3. NFCC or credit line/cash commitment

NFCC at least equal to the approved budget for the contract to be bid



Computation of the NFCC:

NFCC = [(Current assets minus current liabilities) * (K)] minus the value of all outstanding projects under ongoing contracts, including awarded contracts yet to be started.



Computation of the NFCC

Where:K = 10 for a contract duration of one year or less, 15 for a contract duration of more than one year up to two years, and 20 for a contract duration of more than two years.

Republic Act No. 9184Receipt and Opening of Bids:

Requisites for an acceptable bid:

In the prescribed Bid FormOn or before the specified deadlineIn two (2) separate sealed bid envelopes, Technical component of the bid and the Financial component of the bid

Republic Act No. 9184Procedure:

Late bids shall not be acceptedOpening of Technical EnvelopesCounter-checking compliance of Technical Envelope with requirementsOpening of Financial EnvelopeCounter-checking compliance of Financial Envelope with requirements

Republic Act No. 9184Procedure:

Bid EvaluationRankingLowest Calculated Bid

Republic Act No. 9184Note:Bids above the ABC are automatically disqualifiedNo Floor PricesIf failed Technical Envelope, cannot open the Financial EnvelopeBid shall include all taxes

Republic Act No. 9184Post-QualificationPurpose:

To determine whether the bidder concerned complies with and is responsive to all the requirements and conditions for eligibility, the bidding of the contract, as specified in the bidding documents

Republic Act No. 9184Post-QualificationMethod:

BAC shall verify, validate and ascertain all statements made and documents submitted by the bidder with the Lowest Calculated Bid/Highest Rated Bid, using a non-discretionary criteria, as stated in the Invitation to Apply for Eligibility and to Bid and the Instructions to Bidder

Republic Act No. 9184Post-QualificationPeriod:Within seven (7) calendar days from determination of the Lowest Calculated Bid

In exceptional cases, the seven (7) calendar day period may be extended by the GPPB

Republic Act No. 9184Result:

Lowest Calculated Bid becomes Lowest Calculated and Responsive Bid

Republic Act No. 9184Recommendation of the Award to the Head of the Procuring Entity

Action of Head on Recommendation:

ApproveDisapprove

Republic Act No. 9184Action of Head on Recommendation:

Disapproval based only on valid, reasonable and justifiable grounds to be expressed in writing, copy furnished the BAC.


If approval:Head issues the Notice of Award

BAC notifies the losing bidders of the decision


Time period for this step:

15 Calendar Days from determination of Lowest Calculated and Responsive Bid30 Calendar Days for GOCCs and GFIs

Republic Act No. 9184Contract Preparation and Signing

Time Period:

Ten (10) days from receipt of Notice of Award by Winning Bidder

Republic Act No. 9184Notice to Proceed:

Given to successful bidder together with a copy or copies of the approved contract to the within seven (7) calendar days from the date of approval of the contract by the appropriate government approving authority

Republic Act No. 9184Notice to Proceed:

All notices called for by the terms of the contract shall be effective only at the time of receipt thereof by the successful bidderUnless specified in the Notice to Proceed itself

Republic Act No. 9184Notes on Procedure for Infrastructure Projects:

Observer: representative from National Constructor Associations duly recognized by the Construction Industry Authority of the Philippines (CIAP)


Letter of Intent:Submit a written LOI to BAC together with its application for eligibilityMust be received not later than seven (7) calendar days after the last day of the period for advertising and/or posting of the Invitation to Apply for Eligibility and to Bid


Additional Class A Documents:Valid Philippine Contractors Accreditation Board (PCAB) license and registration for the type and cost of the contract to be bidProspective bidders statement of availability of key personnel and equipmentOn-going and completed government and private projects


Eligibility Criteria:Nationality/ExistencePCAB LicenseBidders largest single completed contractSatisfactory CPES rating and/or certificate of completion and owners acceptance of the contractNFCC or credit line/cash commitment


Eligibility CheckEntire process shall not exceed fifteen (15) daysIssuance of Bid DocumentsWithin thirty (30) calendar days from the last day of the period of advertising and/or posting of the Invitation to Apply for Eligibility and to Bid


Opening of Bids conducted within the following periods from the last day of the issuance of the bidding documents:Up to twenty five (25) million- 15 to 30 calendar daysAbove twenty five (25) million up to fifty (50) million-15 to 45 calendar daysAbove fifty (50) million up to two hundred (200) million-30 to 60 calendar daysAbove two hundred (200) million- 60 to 90 calendar days

Republic Act No. 9184Notes on Procedure for Consultancy Services:

Observer:Project-related professional organization accredited or duly recognized by the Professional Regulation Commission (PRC) or the Supreme Court (SC)


Letter of Intent:Submit a written LOI to BAC together with its application for eligibilityMust be received not later than seven (7) calendar days after the last day of the period for advertising and/or posting of the Invitation to Apply for Eligibility and to Bid


Eligibility Envelopes:Shall be opened before the dates of the pre-bid conference and bid opening to determine eligibility of prospective biddersOnly then shall they be allowed to acquire or purchase the relevant bidding documents from the procuring entity


Short listing:Three (3) to seven (7) consultants, with five (5) as the preferable number

Number as determined in the pre-procurement conference


Short listing Criteria:1.Specified in the Invitation to Bid2.Includes:a. Applicable experience b. Qualification of personnel who may be assigned to the job vis--vis extent and complexity of the undertaking c. Current workload relative to capacity


The BAC recommends the short list of consultants to the head of the procuring entity for consideration and approval The entire process of eligibility check and short listing shall not exceed thirty (30) calendar days


A maximum period of ninety (90) calendar days from the last day of the period of advertising and/or posting of the Invitation to Apply for Eligibility and to Bid up to the opening of bids


Bid Opening:

Opening of the Technical Proposal at opening dated only to determine compliance to formal requirements


Bid Evaluation:

Objective: Highest Rated Bid to be determined by in two steps:

a) The detailed evaluation of the bids of the short listed bidders using numerical ratings based on either the quality-based evaluation/selection procedure or the quality-cost based evaluation/selection procedure


Bid Evaluation:

Objective: Highest Rated Bid to be determined by in two steps:

b) The ranking of the bidders based on the numerical ratings from the highest to the lowest. The bid with the highest rating shall be identified as the Highest Rated Bid.


Bid Evaluation Criteria:Quality of personnelExperience and capability of the consultant Plan of approach and methodology


BAC assigns numerical weights to criteriaCriteria as indicated in bid documentsBAC recommends to HeadHead has two (2) calendar days to approve


Negotiation with Highest Rated Bid BAC shall within seven (7) calendar days notify and invite the consultant with the Highest Rated Bid for negotiation Financial proposal of the consultant with the Highest Rated Bid shall then be opened by the BAC in the presence of the consultant


Negotiation with Highest Rated Bid NegotiationIssues of NegotiationContract amountOther technical issues as stated in the notification letter


Negotiation with Highest Rated Bid In case of Failure, Negotiation with Next Highest Rated Bid

Time period: Fourteen (14) calendar days for any one consultant except for meritorious reasons

Republic Act No. 9184Failure of Bidding:

No Bids are receivedNo bid qualifies as the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid Refusal of winning bidder to accept the award of contract

Republic Act No. 9184Failure of Bidding:

Consequence:

Second Bidding ProcessIf this still fails, BAC may resort to negotiated procurement

Republic Act No. 9184Reservation Clause:Head of Agency mayReject any and all bids or Declare a Failure of Bidding for:Prima facie evidence of collusion BAC failed in following bidding proceduresAny justifiable and reasonable ground where the award of the contract will not redound to the benefit of the Government

Republic Act No. 9184Observations on Failure of Bidding:

No more reservation to waive any formalities or defects of bid(s)No more failure of bid for single calculated/rated and responsive bid

Republic Act No. 9184*Philippine Star, 30 May 2004

Republic Act No. 9184These reservation clauses are already illegalCannot be used to justify any waiver of bid formality

Republic Act No. 9184Exceptions to Competitive Bidding:

Alternative Modes of Procurement Outside the Coverage of RA 9184Acquisition of Real PropertyBOT Law

Republic Act No. 9184Alternative Modes of ProcurementGeneral Rule: Public BiddingProcurement program should allow sufficient lead time for public biddingHence, procuring entity cannot intentionally delay procurement program to give ground to resort to alternative modesResorted to only in highly exceptional cases as recommended by the BAC

Republic Act No. 9184Alternative Modes of ProcurementLimited Source Bidding Direct Contracting Repeat OrderShoppingNegotiated Procurement

Republic Act No. 9184Alternative Modes of ProcurementLimited Source Bidding or Selective Bidding

A method of procurement of goods and consulting services, that involves direct invitation to bid by the concerned procuring entity from a set of pre-selected suppliers or consultants with known experience and proven capability on the requirements of the particular contract

Republic Act No. 9184Alternative Modes of ProcurementLimited Source Bidding or Selective Bidding

Procurement of highly specialized types of goods and consulting servicesProcurement of major plant components to maintain uniform quality and performance of the plant as a whole

Republic Act No. 9184Alternative Modes of ProcurementDirect Contracting or Single Source Procurement

Applies only to procurement of goodsDoes not require elaborate bidding documentsSupplier is simply asked for a price quotation or a pro-forma invoice with the conditions of saleOffer may be accepted immediately or after some negotiations

Republic Act No. 9184Alternative Modes of ProcurementDirect Contracting or Single Source Procurement

Proprietary itemsCritical plant components from a specific manufacturerSold by an exclusive dealer or manufacturer with no suitable substitute

Republic Act No. 9184Alternative Modes of ProcurementRepeat Order

Need to replenish goods Procured under a contract previously awarded through Competitive Bidding

Republic Act No. 9184Alternative Modes of ProcurementRepeat Order

Same contract pricesNot a result of splittingWithin six (6) months from the date of the Notice to Proceed of the original contractNot to exceed twenty-five percent (25%) of the quantity of each item in the original contract

Republic Act No. 9184Alternative Modes of ProcurementShopping

Submission of price quotations Readily available off-the-shelf goods or ordinary/regular equipment Procured directly from suppliers of known qualifications

Republic Act No. 9184Alternative Modes of ProcurementShoppingUnforeseen contingency requiring immediate purchase but not to exceed P50,000.00Ordinary or regular office supplies and equipment not available in the Procurement Service not to exceed P250,000.00

Republic Act No. 9184Alternative Modes of ProcurementShopping

Not as a result of splittingAmounts subject to periodic review by the GPPB

Republic Act No. 9184Alternative Modes of ProcurementNegotiated Procurement

Directly negotiates a contract with a technically, legally and financially capable supplier, contractor or consultant Conditions in law and IRR are exclusive


Second Bid FailureImminent danger to life or property during a state of calamityTime 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


Take-over of contracts 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 utilitiesAdjacent or Contiguous contract to an on-going infrastructure project


Inter-agency purchase of goodsIndividual consultants that are highly technical or primarily confidentialMajor defense equipment for use by the AFP

Republic Act No. 9184Outside the Coverage of RA 9184

Acquisition of Real Property (RA 8974)BOT Law (RA 6957, as amended by RA 7718)

Republic Act No. 9184Criminal/Administrative SanctionsFor Bidders

RiggingMisrepresentation

Republic Act No. 9184Criminal/Administrative SanctionsFor Head/BAC/TWG

Premature Opening of Sealed BidDelaying screening eligibility, opening of bids, evaluation and post evaluation of bids, and awarding of contracts beyond the prescribed periods

Republic Act No. 9184Criminal/Administrative SanctionsFor Head/BAC/TWG

Unduly influencing or exerting undue pressureSplittingAbuse of power to reject bids

Republic Act No. 9184Thank you!

republic act no. 9184 for lgus.ppt

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