SlideShare une entreprise Scribd logo
1  sur  228
Télécharger pour lire hors ligne
Holy Name UniversityHoly Name University
cor. Gallares & Lessage sts, Tagbilaran Citycor. Gallares & Lessage sts, Tagbilaran City
The only catholic university in the Province of Bohol
LOCAL GOVERNMENT ADMINISTRATIONLOCAL GOVERNMENT ADMINISTRATION
JUAN PAOLO S. ARANAS
Master in Public Administration
RESOURCE UTILIZATION AND ACCOUNTABILITY
Property & Supply Management
(w/ introduction to R.A. 9184)
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
BASIC PRINCIPLES
Public office is a Public Trust (Sec. 1 Art. 11 of
the 1987 Philippine Constitution; RA 6713).
Public officials and employees must be at all
times accountable to the people, serve them with
utmost honesty, responsibility, integrity, loyalty,
and efficiently, act with patriotism and lead
modest lives.
BASIC PRINCIPLES
Section 2 of the PD no. 1445 otherwise known as
the State Auditing of the Philippines states that
“all resources of the government shall be
managed, expended or utilized in accordance with
laws, rules, regulations, and safeguarded against
loss or wastage through illegal or improper
disposition with the view of ensuring economy,
efficiency, and effectiveness in the operation of the
government.
References:
• Republic Act No. 7160 Book II Title 6
• Revised Implementing Rules and
Regulations of Republic Act No. 9184,
otherwise known as the “Government
Procurement Reform Act.”
Course Objectives:
• To know and discuss Supply & Property
Management; and to
• Appreciate Provisions under Republic
Act. No. 9184 and its Implementing Rules
and Regulations
SUPPLY AND PROPERTY MANAGEMENT
*SECTION 356 – GENERAL RULE IN
PROCUREMENT AND DISPOSAL
Except as otherwise provided herein,
acquisition of supplies by local
government units shall be through
COMPETITIVE PUBLIC BIDDING.
Supplies which become unserviceable or
no longer needed shall be SOLD,
whenever applicable, at PUBLIC
AUCTION, subject to applicable rules
and regulations
PROCUREMENT
DEFINITION OF TERMS (R.A. 7160 & 9184)
 Lowest Complying and Responsible Bid
1. proposal of one who offers the lowest price;
2. meets all the technical specifications and
requirements of the supplies desired;
3. as a leader in the line of supplies involved;
4. maintains a regular establishment; and
5. has complied consistently with previous
commitments;
 Suitable Substitute – refers to the kind of
article which would serve substantially the
same purpose or produce substantially the
same results as the brand, type, or make of
article originally desired or requisitioned.
 Supplies – include everything, except real
property
 Terms & Conditions – refers to other
requirements not affecting the technical
specifications and requirements of the
required supplies desired
 Approved Budget for the Contract –
budget for the contract duly approved by
the HOPE.
Fund Instrumentality
National Government
Agencies (NGAs)
General Appropriations Act
(GAA)
GOCCs, GFIs, SUCs Corporate budget for the
contract approved by the
governing board
Local Government Units
(LGUs)
Budget Approved by
Sanggunian
Foreign – Funded
Procurement
Treaty, International or
Executive Agreement
 Bid – equivalent to “Proposal” and “Tender”
 Bidder – eligible contractor, manufacturer,
supplier, distributor and or consultant
 Bidding Documents – documents issued by
the P.E. as basis for bids, furnishing all
information necessary for a prospective
bidder to prepare a bid.
 Common-Use supplies – goods, materials
and equipment that are used in the day-to-day
operations of the PE in the performance of
their duty
 Competitive Bidding – method of
procurement which is open to participation
by an interested party which consists of
processes.
 Expendable Supplies – articles which are
normally consumed in use within one (1)
year or more than a year but which shall have
decreased substantially in value after only
one year in use
 Goods – all items except consulting services
and infrastructure projects which may be
needed in the transaction of public businesses
including related or analogous services.
 Head of the Procuring Entity (HOPE) –the
head of the Agency.
 Infrastructure Projects – “civil works”
 Non-Expendable Supplies - articles which
retain their identity during the period of use
whose serviceable life is more than one year.
 PhilGEPS – Philippine Government
Electronic Procurement System
 Portal – website
 Procurement – acquisition by the PE
 Procuring Entity (PE) – refers to branch,
offices, agencies, bureau of the GOP, incl.
GOCC, GFI, SUC, LGU.
SECTION I – SHORT TITLE AND PURPOSE
OF RA 9184
Purpose of the IRR of R.A. 9184:
• Modernization
• Standardization
• Regulation of the procurement
activities of the GOP
SECTION 2 – DECLARATION OF POLICY
• Modernization
• Standardization
• Regulation of Procurement Activities
• Transparency
• Accountability
• Equity
• Efficiency
• Economy
SECTION 3 – GOVERNING PRINCIPLES
• Transparency
• Competitiveness
• Streamlined procurement
process
• System of Accountability
• Public monitoring
SECTION 4 – SCOPE AND APPLICATION
• Branch, agency, department, bureau,
office or instrumentality of GOP, incl.
GOCCs, GFIs, SUCs, & LGUs
• Any Treaty or International or
Executive Agreement to which the
GOP is signatory
• Procurement funded by foreign grants
• Acquisition of real property
This IRR shall not apply to the following:
• Public – Private sector infra or
development projects and other
procurement covered by R.A 6957
DUTIES OF THE
PMO / End-
user(s)
Duties of the PMO/End-user(s)
1. To provide the technical specifications of the goods it
will procure
2. To conduct a market survey that will include a
study of the available products or services, industry
developments
3. To recommend the ABC
4. To provide technical advice
5. To assist in the preparation of bidding documents
Duties of the PMO/End-user(s)
6. To attend all stages of the procurement
7. To determine the period of contract implementation
during the procurement planning stage, and include it in
the PPMP.
8. To ensure that the Chief Accountant of the procuring
entity issues a CAF for the project.
 Only with a CAF can the contract be valid.Only with a CAF can the contract be valid.
 The Chief Accountant must also sign the contract as a witness. (Sec. 5 GPM)The Chief Accountant must also sign the contract as a witness. (Sec. 5 GPM)
 Fund availability isFund availability is an indispensable prerequisite to the execution of anyan indispensable prerequisite to the execution of any
government contract involving the expenditure of public funds by allgovernment contract involving the expenditure of public funds by all
government agencies at all levels.government agencies at all levels.
Duties of the PMO/End-user(s)
9. To determine the existence of condition/s that require
an amendment to order.
10. To determine the existence of a force majeure or
fortuitous event that will be the basis for the issuance of
a suspension order.
11. To either approve or disapprove the request for
extension.
PROCUREMENT
PLANNING
What is Planning?
• The act or process of making or carrying out plans.
• The establishment of goals, policies, and procedures for a social or
economic unit.
• It involves resource allocation and scheduling.
• Through plans, a PE is able to effectively manage and track
procurement all the way to contract performance.
• Allows managers to determine how to allocate limited cash and
other appropriate resources under a given time line, identify choke-
points, weaknesses, and delays in the entire activity that can be
addressed or eliminated.
Planning & budgeting linkages
PE – Agency Budget Proposal by considering the budget
framework
PMO/End-User – prepares their respective WFP for their
different PPA’s as annex to Budget call.
Procuring Entity’s Budget Proposal embodies the agency
thrusts and the resources needed to produce the key services it
delivers to the public.
Procurement planning should be done within this budgetary
context, reflecting the Procuring Entity’s priorities and
objectives for the budget period.
Planning & budgeting linkages
The WFP or the Work and Financial Plan
 Contains the initial list of projects/requirements of each PMO/End-User unit
and the corresponding estimated budgetary requirement.
 Submitted by the PMOs or end-user units to the PE’s Budget Office on or
about May of each year, to coincide with the submission of their respective
budget proposals. This will be evaluated and included in the PE’s Budget
Proposal .
 This will support the Budget Proposal submitted to DBM and becomes the
basis for the proposed PPMP.
The Budget Office shall furnish a copy of the WFP’s and proposed PPMP to
the BAC Sec for the consolidation of the initial list of items/projects for
procurement into the proposed APP.
Planning & budgeting linkages
 When GAA becomes final (Nov. - Dec.), PMO’s/End-User must refine the
proposed PPMP.
 Within 15 days from issuance of the Agency Budget Matrix (ABM) during the
1st
quarter of the fiscal year, PMO’s/End-User shall finalize the PPMP’s to reflect
the budgetary allocation for their respective PPAs as provided in the ABM.
The final PPMPs shall be submitted to the BAC Sec for the finalization of the
proposed Procuring Entity’s APP to be submitted to the HOPE for confirmation
or approval.
Preparation of the Project Procurement Management Plan
(PPMP)
What is a Project Procurement Management Plan (PPMP)?
 A Project Procurement Management Plan or PPMP, which is a component of
the Project Management Plan, deals primarily with:
a.planning for the procurement of project requirements;
b.bidding or procurement strategy;
c.source selection;
d.delivery and payment schedules;
e.contract administration;
f.contract termination; and
g.other major milestones; in an effort to obtain goods, infrastructure and services
from suppliers, contractors and consultants.
Preparation of the Project Procurement Management Plan
(PPMP)
 The PPMP serves as a guide document in the procurement and
contract implementation process, as well as a vital reference in
procurement monitoring.
 It serves as an important tool in resource and financial
management, allowing the Procuring Entity the flexibility to
optimize the utilization of scarce resources.
 Well-planned procurement will significantly minimize the
practice of doing short-cuts to ensure that the Procuring Entity is
able to purchase its requirements for the delivery of public services.
Preparation of the Project Procurement Management Plan
(PPMP)
Developing the Project Requirements:
The development of the project requirements should be done
during the preparation of the proposed PPMP. At this stage of
the procurement planning process, the PMO or end-user unit
must:
a. Identify the need of the PMO or end-user unit
What is the purpose of the procurement?
What are the problem/s or needs that the project or
procurement aims to address?
Preparation of the Project Procurement Management Plan
(PPMP)
Developing the Project Requirements:
b. Identify the alternative solutions, products, and services.
What alternative solutions to the problem/s or need/s are
available in the market?
What is the profile of the supply market?
Are they easily obtainable?
How much is the cost of each alternative?
The PMO or end-user unit should conduct the market research at this point, and
gather as much information about the Goods, Services or expertise required. At
the end of this activity, it should know the market or the industry well enough to
make an informed choice.
Preparation of the Project Procurement Management Plan
(PPMP)
Developing the Project Requirements:
c. Compare the alternatives (consider qualitative and
quantitative factors)
Consider how the PMO or end-user unit would rate the various
alternatives in terms of the following:
i. Value for money
The concept of value for money is not restricted to price alone. In addition to
costs, other considerations are non cost factors like suitability or fitness to the
purpose, quality, among others. In comparing costs, all relevant costs should be
considered, e.g., acquisition costs, life-cycle costs (including maintenance and
operating costs for goods and infrastructure, spare parts of goods, etc.).
Preparation of the Project Procurement Management Plan
(PPMP)
Developing the Project Requirements:
ii. Risk assessment and management
Some risks that may be identified are: obsolescence of
equipment, availability of support services, capacity of contractors
to implement the project. It is recommended, especially for high-
technology, complex, or high value procurement, that the PMO or
end-user unit identifies the risks involved and come up with its own
risk management plan. Or the bidders could be required to submit,
as part of their technical document, a risk assessment and risk
management plan.
Preparation of the Project Procurement Management Plan
(PPMP)
Developing the Project Requirements:
iii. Government policies that have an impact on the project or
procurement
Are there any restrictions on the procurement contemplated?
What relevant government policies should be considered in
determining the goods or services that will be purchased?
iv. Other relevant factors that may be identified by the PMO
or end-user unit.
Preparation of the Project Procurement Management Plan
(PPMP)
Developing the Project Requirements:
iii. Government policies that have an impact on the project or
procurement
Are there any restrictions on the procurement contemplated?
What relevant government policies should be considered in
determining the goods or services that will be purchased?
iv. Other relevant factors that may be identified by the PMO
or end-user unit.
Preparation of the Project Procurement Management Plan
(PPMP)
Writing the Technical Specifications, Scope of Work
(SOW) and Terms of Reference (TOR):
The Technical Specifications (for Procurement of
Goods), Scope of Work (for Services and Infrastructure
Projects) or Terms of Reference (for Consulting Services)
is the document that provides the detailed description of
the deliverables of the Supplier, Contractor or Consultant.
Preparation of the Project Procurement Management Plan
(PPMP)
Writing the Technical Specifications, Scope of Work
(SOW) and Terms of Reference (TOR):
The following guidelines are, considered helpful in writing the
TS/SOW/TOR:
 Quality Assurance actually starts at this stage of the procurement cycle,
considering that the deliverables are decided at this time. It is therefore
important that all stakeholders are consulted, and the actual requirements of
the PMO or end-user unit are determined and put in writing.
 If the procurement is complex, highly technical, or high value, and the
Procuring Entity does not have sufficient technical proficiency, it would be
prudent to engage the services of technical experts who will serve as
consultants in the preparation of the TS/SOW/TOR.
Preparation of the Project Procurement Management Plan
(PPMP)
Writing the Technical Specifications, Scope of Work
(SOW) and Terms of Reference (TOR):
The following guidelines are, considered helpful in writing the
TS/SOW/TOR:
 In engaging these consultants, the Procuring Entity shall follow the
procedures for procurement of consulting services. Moreover, care should be
taken that possible conflict of interest is avoided; that is, the consultant/s
engaged should not be connected with the prospective bidders/contractors,
and are barred from being engaged by the latter for any purpose related to
the procurement at hand.
Preparation of the Project Procurement Management Plan
(PPMP)
Writing the Technical Specifications, Scope of Work
(SOW) and Terms of Reference (TOR):
The following guidelines are, considered helpful in writing the
TS/SOW/TOR:
 The description should be generic and flexible, not product-specific or
seemingly tailored for a particular brand, product, contractor or consultant,
unless the procurement involves products or services that have intellectual
property rights attached to it, or are exclusively offered by a single source,
and there are no suitable substitute products or services.
Preparation of the Project Procurement Management Plan
(PPMP)
Writing the Technical Specifications, Scope of Work
(SOW) and Terms of Reference (TOR):
The following guidelines are, considered helpful in writing the
TS/SOW/TOR:
 If the procurement involves products or services that have intellectual
property rights attached, or are exclusively offered by a single source
without any suitable substitute, then the PMO or end-user unit must be able
to satisfactorily justify the need for such a product or service.
The description should be clear and unambiguous, to avoid confusion and to
facilitate the evaluation process. It is noted that the TS/SOW/TOR is also the
basis of the evaluation or, when applicable, the testing parameters.
Preparation of the Project Procurement Management Plan
(PPMP)
Writing the Technical Specifications, Scope of Work
(SOW) and Terms of Reference (TOR):
The following guidelines are, considered helpful in writing the
TS/SOW/TOR:
 Considering that planning is done sometime before actual procurement
and even farther from the date of actual delivery or project implementation,
changes in technology or changes in the concerned industry or field of
expertise should already be taken into account in writing the TS/SOW/TOR.
 This will allow the Procuring Entity to procure the latest products and/or
services available in the market.
What is an ABC?
The ABC refers to the budget for the contract duly approved
by the Head of the Procuring Entity, as provided for in the GAA
and/or continuing appropriations, in the case of NGAs; the
corporate budget for the contract approved by the governing board,
pursuant to E.O. No. 518 series of 1979 in the case of GOCCs and
GFIs, and R.A. 8292 in the case of SUCs; and the budget approved
by the Sanggunian in the case of LGUs. (IRR-A Section 5)
What is an ABC?
The ABC, insofar as National Government Agencies are
concerned, refers to the budget for the contract duly approved by
the Head of the Procuring Entity which is contained in the Agency
Budget as reflected in the GAA or to be proposed in succeeding
GAAs. Thus, the ABC referred to in the R.A. 9184 and its IRR-A
basically refers to the proposed budget for the project approved by
the Head of the Procuring Entity based on the APP as consolidated
from various PPMPs. (GPPB Resolution 011- 2005 dated 26 May
2005)
Determining the Approved Budget for the
Contract (ABC):
In determining the ABC, the PMO or end-user unit has to consider
several factors, namely:
a. the appropriation for the project or procurement (whether
taken from the current year’s appropriations or continuing
appropriations),
b. the market price of the goods and/or services being
procured, inflation and cost of money which are directly
related to the procurement time table.
FORMAT OF THE PPMP
The PPMP shall contain the following information:
a.The name of the project/procurement;
b.General description of the project/procurement;
c.The extent/size of contract scopes/packages;
(This refers to the general description of the lot to be included in a
particular contract, i.e. the goods, infrastructure project or services, or
a combination of any two or three of these types of procurement,
including quantities where applicable.)
FORMAT OF THE PPMP
The PPMP shall contain the following information:
d.The procurement methods to be adopted, and indicating if the
procurement tasks are to be outsourced as provided in Section 53(e)
of the IRR-A;
e.The time schedule for each procurement activity; and
f.The ABC.
Preparation of the Annual Procurement
Plan (APP)
The APP is the document that consolidates the various PPMPs
submitted by the various PMOs and end-user units within the
Procuring Entity.
It reflects the entirety of the procurement activities that will be
undertaken by the Procuring Entity within the calendar year.
The APP is prepared by the BAC through the BAC Secretariat
upon submission by the PMOs and end-user units of their respective
PPMPs and finalized after the ABM has been approved by the
DBM.
Preparation of the Annual Procurement
Plan (APP)
The APP shall subsequently be re-submitted by the BAC for
approval to the Head of the Procuring Entity or a second-ranking
official designated by the Head of the Procuring Entity to act on his
behalf.
In preparing the APP, the BAC shall take into consideration the
following factors:
a. The APP should include all procurement activities planned for the year.
The approved APP shall be the basis for the Procuring Entity’s procurement,
and only those projects / procurement included therein shall be undertaken.
Preparation of the Annual Procurement
Plan (APP)
b. The APP shall include only those procurements that are considered crucial
to the efficient discharge of governmental functions. The IRR-A considers a
procurement crucial to the efficient discharge of governmental functions if:
i. it is required for the day-to-day operations of the Procuring Entity; or
ii. it is in pursuit of the principal mandate of the Procuring Entity
concerned.
c. The APP shall include provisions for foreseeable emergencies based on
historical records. The BAC, through the BAC Secretariat, shall include
therein a lump sum to cover for these emergencies or contingencies, which
amount shall not be more than four percent (4%) of the Procuring Entity’s
total appropriations for MOOE.
d. Scheduling of procurement activities should be done in such a manner that
the BAC and the other offices/units in the Procuring Entity that are involved
in the procurement process are able to efficiently manage the conduct of
procurement.
What is a Procurement Strategy?
 The procurement strategy refers to the approach that will be adopted by
the BAC in the procurement of the goods, infrastructure projects and
consulting services included in the APP.
 It reflects the entirety of the procurement activities that will be
undertaken by the Procuring Entity within the calendar year.
 In the review and consolidation of the PPMPs, the BAC will be able to
determine the extent of diversity, quantities, quality, cost, the supply
market, and other characteristics of the Procuring Entity’s requirements
for the year.
 The profile of the procurement is a major determinant in the choice of
procurement strategy to be employed, as well as in the scheduling of
procurement activities.
What is a Procurement Strategy?
 There may be common requirements for the various PPMPs. For
example, three projects require the purchase of five (5) units of laptop
computers for each project office, or a total of fifteen (15) laptop
computers. Obviously, it will be more cost effective and efficient if the
BAC will procure the 15 laptop computers in one bidding exercise and as
one bid lot.
 The individual PPMPs sometimes reflect a mix of procurement types,
for example, an ICT project might involve the procurement of goods (e.g.,
workstations, network equipment and peripherals), procurement of civil
works (e.g., the installation of cables might involve the repair of some
offices and other related civil works) and procurement of consulting
services (e.g., design and development of information systems).
What is a Procurement Strategy?
 In similar cases, the BAC will have to exercise judgment in
determining the bid lots and contract package.
 There are two approaches to this case:
1. the project could be bid out as one package, or
2. it could be divided into several bid lots (i.e. supply of
hardware, supply and installation of cables, design and development of
information systems, and repair of facilities).
 There are advantages and disadvantages to both approach, and the
BAC, through the help of the TWG and the Secretariat, shall determine
which is the best option for the Procuring Entity.
What is a Procurement Strategy?
 In IRR-A, Section 5(p), in case of projects involving mixed
procurements, the nature of the procurement, i.e. goods, infrastructure
projects, or consulting services, shall be determined based on the primary
purpose of the project.
 This is helpful in determining which type of procurement procedure to
apply. However, there may be instances when the PMO, end-user unit or
the Procuring Entity itself may have difficulty determining or agreeing
upon the primary purpose. In these cases, ascertaining the component with
the highest price may be useful as an indicator of purpose, though not
necessarily as a determining factor.
Format of the APP
The BAC may prepare three APPs, one each for Goods, Infrastructure Projects, and
Consulting Services or a consolidated APP for all procurement activities.
The APP shall contain the following information:
a. Name of the project/procurement;
b. PMO or end-user unit;
c. General description of the project/procurement (general description of
requirements and quantities, where applicable);
d. The procurement methods to be adopted, and indicating if the procurement
tasks are to be outsourced as provided in Section 53(e) of the IRR-A;
e. The time schedule for each procurement activity; and
f. The ABC.
PE shall prepare its proposed budget
for the succeeding calendar year
The end-user units of the PE shall
prepared their respective PPMP
The PPMP shall be submitted to PE
budget office for evaluation, if
warranted, include it in the PE budget
proposal for approval by the HOPE
PE budget office shall furnish the PE
budget proposal as well as the PPMP
to the BAC Secretariat for its review
and consolidation into proposed APP
Final GAA, corporate budget, or
appropriation ordinance
The End-user units shall revise and
adjust the PPMP to reflect the
budgetary allocation for their
respective PAP’s. The revised
PPMP shall be submitted to the
BAC, for finalization and mode of
procurement under the proposed
APP. (The APP shall bear the
approval of the HOPE or its
designated representative)
Updating of individual PPMP and
the consolidated APP for each PE
shall be undertaken every 6 months
or as often as may be required by
the HOPE.
SECTION 7 – PROCUREMENT PLANNING
& BUDGETING
• All procurement shall be within the
Approved Budget of the PE
• No procurement shall be undertaken
unless it is in accordance with the
approved APP of the PE
Major functions of the
Property and Supply
Division
Major Functions of the Property & Supply Div.
 Prepares Agency Procurement Request (APR) for all items to be
procured from the DBM-PS
 Accept deliveries of supplies, materials, and equipment based on
the APR, Purchase Order (P.O), Contract, and request for the
conduct of the inspection
 Issues and distributes available supplies, materials, and
equipment to requesting offices of the Procuring Entity.
 Prepares and maintains Inventory Custodian Slip (ICS) for all
inventory items, Report of Supplies and Materials Issued
(RSMI), Stock Cards for supplies and materials and Property
Card for all Property, Plant and Equipment (PPE)
Major Functions of the Property & Supply Div.
 Prepares Acknowledgement Receipt of Equipment (ARE) for all
(PPE)
 Conduct physical inventory for all PPE and consolidate the same
for the preparation of Annual Inventory Report
 Disposes waste materials and all unserviceable equipment in
accordance with applicable laws, rules, and regulations.
 Issues clearance from property accountability of all officials and
employees
 Maintains and updates master lists of inventories of all PPE and
inventory items
THE BIDS & AWARDS
COMMITTEE (Procurement)
The PhilGEPS (Philippine Government
Electronic Procurement Systems)
A central Portal that serve as
the primary source of
information on all government
procurement.
Main features of PhilGEPS
• The Electronic Bulletin Board
Centralized electronic bulletin board for posting
procurement opportunities, awards, results of bidding
and other related information.
• Registry of Manufacturers, Suppliers,
Distributors, Contractors, and Consultants
• The Electronic Catalogue
PE shall procure common – use goods, supplies,
materials and equipment from the Electronic Catalogue
of PhilGEPS
*Section 364 – The Committee on Awards
There shall be in every province, city
or municipality a Committee on
Awards to decide the winning bids and
questions on awards on procurement
and disposal of property
BAC Composition
The Head of the Procuring
Entity shall designate at least
five (5) but not more than
seven (7) members to the
BAC
BAC Composition for NGAs, departments, bureaus, offices, judicial
and legislative branches, commissions, SUCs, GOCCs, & GFIs
Regular Members:
Chairman, who is at least a third ranking permanent officials
of the PE
An officer, who is at least a fifth ranking permanent officials
who shall represents the legal / admin. Area of PE. (bureaus,
offices, BAC members shall be at least third ranking
permanent personnel)
An officer, who is at least a fifth ranking permanent officials
who shall represents the finance area. (bureaus, offices, BAC
members shall be at least third ranking permanent personnel)
BAC Composition for NGAs, departments, bureaus, offices, judicial
and legislative branches, commissions, SUCs, GOCCs, & GFIs
Provisional Members:
An officer who has technical expertise relevant to the
procurement at hand
A representative from the end user unit who has knowledge
of procurement laws and procedures
The Chairman and the Vice-Chairman shall also be
designated by the HOPE. Moreover, the Vice-Chairman shall
be a regular member of the BAC.
BAC Composition for Local Government Units
(LGU)
• One representative each from the
regular offices under the Office of the
Local Chief Executive; and
• A representative from the end-user unit
The HOPE may designate alternate members to the BAC
whenever their principals are absent
TERMS OF OFFICE – 1 YEAR (RENEWABLE)
Sec. 354 (RA 7160) The
Committee on Awards shall be
composed of the Local Chief
Executive as Chairman; Sec.11.2.5
(RA 9184) In no case shall the
HOPE and/or the approving
authority be the Chairman or a
member of the BAC
FUNCTIONS OF THE BAC
1. Advertise the invitation to bid/request for exp. Of interest;
2. Conduct pre-proc. and pre-bid conferences;
3. Determine the eligibility of bidders;
4. Receive bids and conduct evaluation of bids;
5. Undertake post-qualification proceedings;
6. Receive motion for reconsideration;
7. Recommend awards of contract to the HOPE ;
8. Creation of Technical Working Group (TWG);
9. Responsible for ensuring that the PE abides by the standard
set forth by the Act and this IRR;
Section 13 - Observers
1. Commission on Audit (COA) Representative
2. At least one (1) shall come from a duly recognized
private group in a sector relevant to the procurement at
hand, for example:
a) For Infrastructure projects, national associations of
constructors duly recognized by the Construction
Industry of the Philippines (CIAP), such as but not
limited to the following:
• Philippine Constructors Associations, Inc.;
• Nat’l Constructors Assoc. of the Phil., Inc.; &
• Phil. Institute of Civil Engineers(PICE)
Section 13 - Observers
c) For consulting services, a project-related professional
organization accredited or duly recognized by the
Professional Regulation Commission or the Supreme
Court, such as but not limited to:
• PICE;
• Phil. Inst. Of Certified Public Accountants;
• Confederation of Filipino Consulting
Organizations; and
b) For goods, a specific relevant chamber-member of the
Philippine Chamber of Commerce and Industry.
3. Non-government organization (NGO)
FUNCTIONS & RESPONSIBILITIES OF
THE BAC SECRETARIAT
1. Provide administrative support to the BAC;
2. Organize and make all arrangement for the BAC meetings;
3. Prepare minutes of meetings and resolutions of the BAC;
4. Take custody of procurement documents and records;
5. Distribution of BidDocs to the interested bidders;
6. Advertise opportunities, incl. BidDoc,and notice of awards;
7. Managing the procurement processes;
8. Consolidate PPMPs
9. Act as the central of communications for the BAC with end
users, PMOs, other units, and providers of services & public
The HOPE shall ensure that the
members of the BAC and TWG
shall give UTMOST PRIORITY
to BAC assignments over all other
duties and responsibilities, until the
requirements for the said
assignments at hand are completed.
AVAILABILITY OF BIDDING DOCUMENTS
For the procurement of goods and infrastructure projects
From the time the Invitation to Bid (ITB) is first
advertised or posted until the deadline for the
submission and receipt of bids.
For the procurement of consulting services
From the time the Request for Expression of Interest is
first advertised until the deadline for the eligibility
check, and the Bidding Documents, from the
determination of the short list until the deadline for the
submission and receipt of bids.
Bidders may be asked to
pay for the Bidding
Documents to recover the
cost of its preparation and
development
• Agency’s website
• PhilGEPS
Bidding Documents shall be posted at:
Prospective bidders may download the Bidding
Documents from any of the said websites; provided
that, bidders shall pay the fees for the Bidding
Documents upon submission of their bids.
• Conspicuous places
• Newspaper; if applicable
• (Purchase Request) Reference to brand names
shall not be allowed
• No aspects of the Bidding Documents shall be
divulged or released to any prospective bidder
or person having direct or indirect interest in the
project to be procured, or to any party, except
those officially authorized in the handling of the
documents
Points to Remember
SECTION 20 - Pre-Procurement Activities
1. Confirm the description and scope of the contract, the
ABC, and contract duration.
2. Ensure that the procurement is in accordance with the
project and annual procurement plans;
3. Determine the readiness of the procurement at hand
4. Review, modify, and agree on the criteria for eligibility,
screening, evaluation and post-qualification
5. Review and adopt the procurement schedule, incl.
deadlines, and timeframes for the different activities; and
6. Reiterate and emphasize the importance of confidentiality
The holding of a pre-procurement
conference may not be required for:
Procurement of Goods
costing Two Million Pesos (Php2, 000,000.00) and below
Infrastructure Projects
costing Five Million Pesos (Php5, 000,000.00) and below
Consulting Services
costing One Million (Php1, 000,000.00) and below
SECTION 2 – Pre-bid Conference
For contracts to be bid with an ABC of One Million Pesos (P1,
000, 000.00) or more, the BAC SHALL CONVENE at least (1)
pre-bid conference to clarify, and/or explain any of the
requirements, terms, conditions, and specifications stipulated in the
Bidding Documents.
P1M
Pre-bid Conference is
required
At the discretion of the BAC
SECTION 2 – Pre-bid Conference
Pre-bid Conference Opening & submission of bidsAt least 12 cd.
The minutes of the pre-bid conference shall be recorded and made
available to all participants not later than (3) calendar days after the
pre-bid conference.
Warning!
Statement made at the pre-bid
conference shall not modify the terms
of the BidDocs, unless such statement
is specifically identified in writing as
an amendments thereto and issued as a
Supplemental / Bid Bulletin.
Receipt and Opening of Bids
Class “A” documents
Legal Documents
1. Registration Certificate from SEC, Department of Trade and
Industry (DTI) for sole proprietorship, 3. Cooperative
Development Authority (CDA) for cooperatives
Technical Documents
2. Mayor’s permit where the principal place of business of the
prospective bidder is located.
1. Statement of the pros. Bidder of all its ongoing and completed
government and private contracts, incl. Contracts awarded but
not yet started.
2. Philippine Contractors Accreditation Board (PCAB) for
Infrastructure projects
Class “B” documents
Receipt and Opening of Bids
Financial Documents
1. Audit Financial Statement showing total current assets and
liabilities. Stamped “RECEIVED” by the BIR
2. NFCC or a commitment from a Universal or commercial bank to
extend a credit line. (CLC)
3. Bill of Quantities/ Materials and Bid Form
Eligibility Criteria
Goods Infrastructure/civil works Consulting services
Duly licensed Filipino Duly licensed Filipino Duly licensed Filipino
Duly organized partnership (60%) Duly organized partnership (75%) Duly organized partnership (60%)
Duly organized corporation
(60% Outstanding Capital Stock)
Joint venture (75%) /(ownership of the
Filipino shall not be less than25%)
Duly organized corporation
(60% Outstanding Capital Stock)
Duly organized cooperatives (60%) Project is under Treaty or International
Agreement
Duly organized cooperatives (60%)
Joint venture (60%) Licensed by PCAB Joint venture (60%)
The bidder have completed at least two (2)
similar contracts and the aggregate contract
shall be equivalent to at least the percentage
of the ABC as required. (50% / 25 % for
expendable supplies)
Constructors Performance Evaluation
Summary rating and or certificate of
completion and owner’s acceptance of the
contract must be satisfactory
The largest of these similar contract must be
equivalent to atleast half of the percentage of
ABC
The bidder must have an experience of
having completed 10 years from the date of
submission and receipt of bids
If, NFCC atleast equal to the ABC to be bid; or If, NFCC atleast equal to the ABC to be bid; or
If, CLC must be atleast equal to 10% of the
ABC to be bid
If, CLC must be atleast equal to 10% of the
ABC to be bid
NFCC = [(current assets minus current liabilities) (K)] minus the value of all going outstanding or uncompleted portions of the project
under ongoing projects, including awarded contracts to be started .
Where; K=
One year or less More than one year – 2 years More than 2 years
10 15 20
Submission and Receipt of BidsFirstenvelope
Eligibility requirements
And technical components
Secondenvelope
Financial Component
Don’t open before the
scheduled opening date &
time
SEALED
BAC
For the procurement
of GOODS
Submission and Receipt of Bids
Firstenvelope
Eligibility requirements
And technical components
Eligibility requirements
The bid security in the prescribed form, amount and validity
Technical specifications
• production/delivery schedule
• manpower requirements; and/or
• after-sales services/parts, if applicable
Sworn statement
• It is not “blacklisted”
• all copies submitted are authentic, original,
complete and are true and correct
• authorizing the HOPE to verify all the documents
submitted;
• the signatory is the duly authorized representatives
• It complies with the responsibilities of a prospective
or eligible bidder provided in the PBD; and
•It complies with existing laws and standards, in the
case of procurement of services
For the procurement
of CIVIL WORKS
For the procurement
of CONSULTING
SERVICES
For the procurement
of GOODS
Submission and Receipt of Bids
Firstenvelope
Eligibility requirements
And technical components
Eligibility requirements
The bid security in the prescribed form, amount and validity
Project Requirements
• Organizational chart for the contract to be bid;
• List of contractor’s personnel, to be assigned to the contract to be bid,
with their complete qualification experience data;
•List of contractor’s equipment units, which are owned, leased, and / or
under purchase agreements supported by certification of availability of
equipment from the equipment lessor/vendor for the duration of the
project; and
For the procurement
of CIVIL WORKS
For the procurement
of CONSULTING
SERVICES
Sworn statement
• It is not “blacklisted”
• all copies submitted are authentic, original, complete and are true and
correct
• authorizing the HOPE to verify all the documents submitted;
• the signatory is the duly authorized representatives
• It complies with the responsibilities of a prospective or eligible bidder
provided in the PBD; and
•It complies with existing laws and standards, in the case of
procurement of services
For the procurement
of GOODS
Submission and Receipt of Bids
Firstenvelope
Eligibility requirements
And technical components
The bid security in the prescribed form, amount, and validity period;
Organizational chart for the contract to be bid;
List of completed and on-going projects;
For the procurement
of CIVIL WORKS
For the procurement
of CONSULTING
SERVICES
Approach, work plan, and schedule
List of key personnel to be assigned to the contract to be bid, with
their complete qualification and experience data; and
Sworn statement
• It is not “blacklisted”
• all copies submitted are authentic, original, complete and
are true and correct
• authorizing the HOPE to verify all the documents
submitted;
• the signatory is the duly authorized representatives
• It complies with the responsibilities of a prospective or
eligible bidder provided in the PBD; and
•It complies with existing laws and standards
Submission and Receipt of Bids
Secondenvelope
Financial
Information/
documents
Submission and Receipt of Bids
Bids shall be received by the BAC
on the date, time, and place
specified in the ITB/RFEI.
Bids incl. eligibility requirements
submitted after the deadline
SHALL NOT BE ACCEPTED by
the BAC.
Bid Security
All bids shall be accompanied by a bid security
Bid security shall be in an amount equal to a percentage of the ABC in
accordance with the following:
FORM OF BID SECURITY AMOUNT OF BID SECURITY
(Equal to Percentage of the ABC)
a) Cash or cashier’s/manager’s check issued
by a Universal or Commercial Bank
Two per cent (2%)
b) Bank draft/ guarantee or irrevocable letter
of credit issued by a Universal or Commercial
Bank; provided, however, that it shall be
confirmed or authenticated by a Universal or
commercial Bank, if issued by a foreign bank.
c) Surety bond callable upon demand issued by
a surety or insurance company duly certified by
the Insurance Commission as authorized to
issue such security
Five per cent (5%)
d) Any combination of the foregoing Proportionate to share of form w/ respect to total
amount of security
When the Bid Security shall be returned?
After the bidder with the LCRB or HCRB
has signed the contract and furnish
performance security
Bidders declared by the BAC as failed or
post-disqualified and upon submission of a
written waiver of their right to file a motion
for reconsideration and / or protest.
Bid Validity
Shall in no case exceed
the period of one hundred
twenty (120) c.d. from the
date of opening of bids.
Bid Opening
The BAC shall open the bids at the;
Time,
Date,
Place specified in the BidDocs
The BAC shall adopt a procedure ensuring the;
Integrity,
Security,
confidentiality
Preliminary Examination of Bids
The BAC shall check the
submitted documents of each
bidder against a checklist
required documents to ascertain
if they are all present
Using a non-discretionary
“PASS/FAIL” criterion
Firstenvelope
Eligibility requirements
And technical components
Preliminary Examination of Bids
The BAC shall check the
submitted documents of each
bidder against a checklist
required documents to ascertain
if they are all present
Using a non-discretionary
“PASS/FAIL” criterion
SecondEnvelope
Financial Component
SAMPLE CHECKLIST
Ceiling of Bid Prices
The ABC shall be
the upper limit or
ceiling for acceptable
bid prices
Bid Evaluation for goods/Infrastructure
The BAC shall immediately conduct a detailed evaluation of bids
using non discretionary criteria in considering the following:
Completeness of the bid.
Responsive bill of Quantities/Materials
Non-responsive bill of Quantities/Materials
Responsive bill of Quantities/Materials (free)
Arithmetical corrections
 The BAC shall evaluate on an equal footing to ensure fair and
competitive bid comparison. For this purpose, all bidders shall be
required to include the cost of all taxes.
 In case of discrepancies between:
AREAS OF DISCREPANCIES PREVAILING AREA
Bid price in figures Bid price in words Bid price in words
Total price per item Unit price for the item as
extended or multiplied by
the quantity of that item
Unit price for the
item as extended or
multiplied by the
quantity of that item
Stated total price Actual sum of prices of
component items
Actual sum of prices
of component items
Unit cost in the detailed
estimate
Unit cost in the bill of
quantities
Unit cost in the bill
of quantities
 Bids shall be ranked in the ascending order of their total calculated bid
prices, as evaluated and corrected for computational errors. WARNING! total
calculated bid prices, as evaluated and corrected for computational errors and
other modifications, which exceed the ABC shall be disqualified.
 After all bids have been received, opened, examined, evaluated, and
ranked, the BAC shall prepare the corresponding abstract of bids. All
members of the BAC shall sign the AoB and attach thereto all the bids with
the corresponding bid securities and the minutes of the proceedings of the
bidding. The Abstract shall contain the following:
 Name of the contract and its location, if applicable
 Time, date, and place of bid opening; and
 Names of bidders and their corresponding bid prices
arranged from lowest to highest, the amount of bid security
and the name of the issuing entity
REMEMBER!
From submission and receipt of bids until the approval by
the HOPE of the ranking of short listed bidders, those that
have submitted their bids are PROHIBITED from
making any communication with any BAC member,
including its staff and personnel, as well as its BAC
secretariat and TWG, regarding matters connected to their
bids. However, the BAC, through its Secretariat, may ask
in writing the bidder for clarification of its bid. All
responses to requests for clarification shall be in writing.
Bid Evaluation of short listed bidders for consulting services
The purpose of bid evaluation is to determine the Highest Rated Bid (HRB)
using the following steps:
Quality-Based Evaluation Procedure
1. A two-stage procedure shall be adopted whereby each
consultant shall be required to submit his technical and
financial proposals simultaneously in separate sealed
envelopes.
2. After receipt of bids, the technical proposals shall first be
opened and evaluated. The BAC shall rank the consultants
in descending order based on the numerical ratings of their
technical proposals and identify the HRB. Provided,
however, that the HRB shall pass the minimum score
indicated in the Bidding Documents.
Bid Evaluation of short listed bidders for consulting services
3. The HOPE shall approve or disapprove the
recommendations of the BAC within two (2) calendar days
after receipt of the results of the evaluation from the BAC.
4. After approval by the HOPE of the HRB, its financial
proposal shall then be opened. The BAC shall, within three
(3) cd. Notify and invite the consultant with the HRB for
the opening of financial proposal for the purpose of
conducting negotiations with the said consultants. In the
letter of notification, the BAC shall inform the consultant of
the issues in the technical proposal the BAC may wish to
clarify during the negotiations.
5. The total contract amount shall not exceed the ABC as
stated in the BidDocs.
Bid Evaluation of short listed bidders for consulting services
(Graphic Presentation)
Consultant A
Consultant B
Consultant C
Technical
Proposal
Technical
Proposal
Financial
Proposal
Financial
Proposal
Technical
Proposal
Technical
Proposal
Financial
Proposal
Financial
Proposal
Technical
Proposal
Technical
Proposal
Financial
Proposal
Financial
Proposal
BAC
THE BAC shall
open the
Technical
Proposals
Technical
Proposal
of
Consultant
A
Technical
Proposal
of
Consultant
A
Technical
Proposal
of
Consultant
B
Technical
Proposal
of
Consultant
B
Technical
Proposal
of
Consultant
B
Technical
Proposal
of
Consultant
B
Arranged in
Descending order
based on numerical
rating
Consultant
A
– 85%
Consultant
A
– 85%
Consultant
B– 97.50%
Consultant
B– 97.50%
Consultant
C – 80 %
Consultant
C – 80 %
Bid Evaluation of short listed bidders for consulting services
(Graphical Presentation)
Arranged in
Descending order
based on numerical
rating
Consultant
A
– 85%
Consultant
A
– 85%
Consultant
B– 97.50%
Consultant
B– 97.50%
Consultant
C – 80 %
Consultant
C – 80 %
HRB
HEAD OF THE PROCURING ENTITY
Within two (2) days:
APPROVE
DISAPPROVE
The recommendations of the BAC
BIDS & AWARDS COMMITTEE
After 3 days, the BAC shall notify
and invite the consultant with HRB
for the opening of the
And for the NEGOTIATION
Financial
proposal of
Consultant
B
Financial
proposal of
Consultant
B
Bid Evaluation of short listed bidders for consulting services
(Graphical Presentation)
FINANCIAL
PROPOSALS
BB
Opened by the BAC
AA
CC
Return to the
respective
consultants
UNOPENED
Bid Evaluation of short listed bidders for consulting services
The purpose of bid evaluation is to determine the Highest Rated Bid (HRB)
using the following steps:
Quality-Cost Based Evaluation Procedure
1. The technical proposal together with the financial proposal
shall be considered in the evaluation of consultants. The
technical proposals shall be evaluated first. The financial
proposal of the consultants WHO MEET THE
MINIMUM TECHNICAL SCORE shall then be opened.
2. The financial and technical proposal shall be given
corresponding weights with the financial proposal given a
minimum weight of fifteen percent (15%) up to a maximum
of forty percent (40%). The weight of the technical criteria
shall be adjusted accordingly such that their total weight in
percent together with the weight given to the financial
proposal shall add to one hundred percent (100%).
Bid Evaluation of short listed bidders for consulting services
The exact weight SHALL BE APPROVED BY THE HOPE
upon the recommendation of the BAC and indicated in the
BidDocs. The BAC shall rank the consultants in descending
order based on the combined numerical ratings of their technical
and financial proposals and identify the HRB.
3.The HOPE shall approve and disapprove the
recommendations of the BAC within two (2) cd after receipt of
the results of the evaluation from the BAC.
4.After approval by the HOPE of the HRB, the BAC shall
within three (3) cd, notify and invite the consultant with the
HRB for negotiation.
Bid Evaluation of short listed bidders for consulting services
(Graphic Presentation)
Consultant A
Consultant B
Consultant C
Technical
Proposal
Technical
Proposal
Financial
Proposal
Financial
Proposal
Technical
Proposal
Technical
Proposal
Financial
Proposal
Financial
Proposal
Technical
Proposal
Technical
Proposal
Financial
Proposal
Financial
Proposal
BAC
THE BAC shall
open the
Technical
Proposals
Technical
Proposal
of
Consultant
A
Technical
Proposal
of
Consultant
A
Technical
Proposal
of
Consultant
B
Technical
Proposal
of
Consultant
B
Technical
Proposal
of
Consultant
C
Technical
Proposal
of
Consultant
C
Afterwhich, the BAC
shall open the
Financial Proposals
Financial
Proposal
of
Consultant
A
Financial
Proposal
of
Consultant
A
Financial
Proposal
of
Consultant
B
Financial
Proposal
of
Consultant
B
Financial
Proposal
of
Consultant
C
Financial
Proposal
of
Consultant
C
Bid Evaluation of short listed bidders for consulting services
(Graphic Presentation)
THE BAC shall
open the
Technical
Proposals
Technical
Proposal
of
Consultant
A
Technical
Proposal
of
Consultant
A
Technical
Proposal
of
Consultant
B
Technical
Proposal
of
Consultant
B
Technical
Proposal
of
Consultant
C
Technical
Proposal
of
Consultant
C
Afterwhich, the BAC
shall open the
Financial Proposals
Financial
Proposal
of
Consultant
A
Financial
Proposal
of
Consultant
A
Financial
Proposal
of
Consultant
B
Financial
Proposal
of
Consultant
B
Financial
Proposal
of
Consultant
C
Financial
Proposal
of
Consultant
C
+
+
+
WEIGHTS
Technical
(dependent to
the weight of
the Financial)
?
Financial
weights is
within 15 % -
40 %
15 % - 40 %
TOTAL
WEIGHT
100%
The highest rating after adding
the scores of Technical and
Financial proposals shall be
recommended to the HOPE for
HRB.
Bid Evaluation of short listed bidders for consulting services
(Graphical Presentation)
Rating
(Technical +
Financial)
Consultant
A
– 85%
Consultant
A
– 85%
Consultant
B– 97.50%
Consultant
B– 97.50%
Consultant
C – 80 %
Consultant
C – 80 %
HRB
HEAD OF THE PROCURING ENTITY
Within two (2) days:
APPROVE
DISAPPROVE
The recommendations of the BAC
BIDS & AWARDS COMMITTEE
After 3 days, the BAC shall notify
and invite the consultant with HRB
for NEGOTIATION
Criteria in evaluating technical proposals of consultants
• Quality of personnel to be assigned to the project which covers suitability of
key staff to perform the duties of the particular assignments and general
qualifications and competence including education and training of the key staff
• Experience and capability of the consultant which include records of previous
engagement and quality of performance in similar and in other projects;
relationship with previous and current clients; and overall work commitments,
geographical distribution of current/impending projects and attention to be
given by the consultant
• Plan of approach and methodology with emphasis to clarity, feasibility,
innovativeness, and comprehensiveness of the plan approach, and the quality of
interpretation of project problems, risks and suggested solutions
REMEMBER!
All participating short listed consultants
shall be furnished the results (ranking
and total scores only) of the evaluation
after the approval of the HOPE of the
ranking. Said results shall be posted in
the PhilGEPS and the website of the PE
What should be discussed in the Negotiation stage?
• Discussion and clarification of the TOR and Scope of Services;
• Discussion and finalization of the methodology and work program proposed by
the consultant;
• Consideration of appropriateness of qualifications and pertinent compensation,
number of man-months and the personnel to be assigned to the job, taking note
of over-qualified personnel, to be commensurate with the compensation of
personnel with the appropriate qualifications, and schedule of activities;
• Discussion on the services, facilities and data, if any, to be provided by the PE
concerned;
• Discussion of financial proposal submitted by the consultant; and
• Provisions of the contract
Shall be completed within ten (10) calendar days. There should be no replacement
of key personnel before the awarding of contract.
Objective and process of Post-qualification
• The LCB/HRB shall undergo post-qualification in order to determine whether
the bidder concerned complies with and is responsive to all the
requirements and conditions as specified in the BidDocs.
• Within three (3) cd from receipt by the bidder of the notice from the BAC that
the bidder has the LCB or HRB, the bidder shall submit the following
requirements to the BAC:
1. Tax clearance;
2. Latest income and business tax returns;
3. Certificate of PhilGEPS registration; and
4. Other appropriate license and permits required by law and stated in the
BidDocs.
Objective and process of Post-qualification
• The post qualification shall verify, validate, and ascertain all statements
made and documents submitted by the bidder with the LCB/HRB, using non-
discretionary criteria. This criteria shall not be limited to, the following:
A. Legal Requirements. To verify, validate, and ascertain licenses,
certificates, permits, and agreements submitted by the bidder, and
the fact it is not included in any “blacklisted”.
B. Technical Requirements. To determine compliance of the goods,
infrastructure projects, or consulting services offered with the
requirements specified in the BidDocs, including:
i. Verification and validation of the bidder’s stated competence and
experience, and the competence and experience of the bidder’s key
personnel to be assigned to the project, for the procurement of
infrastructure projects and consulting services;
Objective and process of Post-qualification
ii. Verification of availability and commitment, and / or inspection and
testing for the required capacities and operating conditions, of
equipment to be owned/leased;
iii. Verification and/or inspection and testing of the goods/product, after-
sales and / or maintenance capabilities, and;
iv. Ascertainment of the sufficiency of the bid security as to type,
amount, form and wording, and validity period;
C. Financial Requirements. To verify, validate and ascertain the bid
price proposal of the bidder and, whenever applicable, the required
CLC in the amount specified and over the period stipulated in the
BidDocs, or the bidder’s NFCC to ensure that the bidder can sustain
the operating cash flow of the transaction.
If the BAC determines that the bidder with the LCB/HRB passes all the
criteria for post-qualification, it shall declare the said bid as the LCRB/HRRB, and
recommend to the HOPE the award of contract, however, if the BAC determines
that the bidder with the LCB/HRB fails the criteria for post-qualification, it shall
immediately notify the said bidder in writing of its post-qualification and the
grounds for it. Immediately after the BAC has notify the first bidder of its post-
qualification, and notwithstanding any pending request for reconsideration thereof,
the BAC shall initiate and complete the same post-qualification process on the
bidder with the second lowest LCB/HRB. If the second passes the post-
qualification, and provided that the request for reconsideration of the first bidder
has been denied, the second bidder shall be post-qualified as the bidder with the
LCRB/HRRB. If the second bidder, however, fails the post-qualification, the
procedure for post-qualification shall be repeated for the bidder with the next
LCB/HRB, and so until the LCRB/HRRB, as the case maybe, is determined for
award.
The post-qualification process shall be completed in not more than
seven (7) cd from the determination of LCB/HRB. In exceptional cases, the post-
qualification period may be extended by the HOPE, but in no case shall aggregate
period exceed thirty (30) cd.
FAILURE OF BIDDING
The BAC shall declare the bidding of failure when:
• No bids are received;
• All Prospective bidders are declared ineligible;
• All bids fail to comply with all the bid requirements or fail-
post qualification, or, in the case of consulting services,
there is no successful negotiations; or
• The bidder with the LCRB/HRRB refuses, without
justifiable cause, to accept contract, and no award is made
in accordance with Section 40 (failure to enter into
contract and post – security ) of the act and this IRR
In order to determine the reason for the failed bidding, the BAC
shall conduct a mandatory review and evaluation of the terms, conditions,
and specifications in the BidDocs, including its cost estimates. Based on its
findings, the BAC shall revise the terms, conditions, and specifications, and
if necessary, adjust the ABC, subject to the required approvals, and conduct
a re-bidding with re-advertisement and/or posting.
All bidders who have initially responded to the Invitation to
Bid/Request for Expression of Interest and have been declared eligible or
shortlisted in the previous biddings shall be allowed to submit new bids.
The BAC shall observe the same process and set the new periods
according to the same rules followed during the previous bidding(s).
Should there occur a second failure of bidding, the procuring
entity may resort to negotiated procurement.
SINGLE CALCULATED/RATED AND RESPONSIVE BID
A single calculated/responsive bid shall be considered for award if it falls under any
of the following circumstances:
• Only one prospective bidder submit a LOI and/or applies for eligibility check,
and it meets the eligibility requirements of the criteria, after which it submits a
bid which is found to be responsive to the bidding requirements;
• More than one prospective bidder submits LOI and/or applies for eligibility
check, but only one bidder meets the eligibility requirements of the criteria,
after which it submits a bid which is found to be responsive to the bidding
requirements; or
• If after the eligibility check, more than one bidder meets the eligibility
requirements, but only one bidder submits a bid, and its bid is found to be
responsive to the bidding requirements.
NOTICE AND EXECUTION OF AWARD
The BAC shall recommend to the HOPE the award contract to the bidder with
the LCRB/HRRB or the SCRB/SRRB after the post-qualification process has
been completed.
• Resolution of the BAC recommending award;
To facilitate the approval of the award, the BAC shall submit the following
supporting documents to the HOPE:
• Abstract of bids;
• Duly approved program of work or delivery schedule and cost estimates;
• Document issued by appropriated entity authorizing the procuring entity to
incur obligation for a specified contract; and
• Other pertinent documents required by existing laws, rules, and/or the
procuring entity concerned
If the award is approved, the HOPE shall immediately
issue the Notice of Award to the bidder with LCRB/HRRB. In
the event that the HOPE shall disapprove such
recommendation, such disapproval shall be based only on
valid, reasonable, and justifiable grounds to be expressed
in writing, copy furnished by the BAC.
Contract award shall be made within the bid security
period provided in Section 28 (bid validity – shall not exceed
120 cd. – the PE can request for extension but the bidder can
deny it without forfeiting their bid security).
The BAC, through the Secretariat, shall post, within,
three (3) cd from the issuance, the Notice of Award in the
PhilGEPS, the website of the procuring entity, if any, and any
conspicuous place in the premise of the procuring entity
CONTRACT SIGNING
The winning bidder shall post the REQUIRED PERFORMANCE
SECURITY and enter into contract with the procuring entity within (10) cd
from the receipt by the winning bidder of the NoA. The procuring entity shall
enter into contract within the same period provided that all documentary
requirements are complied with, to wit:
• Contract Agreement;
• Bidding Documents;
• Winning bidder’s bid, including proposals submitted;
• Notice of Award of Contract;
Procedural Steps for the Public Bidding of
Goods and Services ( Revised IRR, GPPB Res.
03-2009 )
Pre-Procurement
Conf.
Advertise/Post ITB
Call/Hold Pre-Bid
Conference
Open Technical (with
eligibility documents)
Envelope
Open
Financial
Envelope
Receive the
Two (2)
Envelopes
Submission of
Additional Req.
Post-qualify
LCB
Issue
Notice to
Proceed
Pre-Bid C. at least 12 c.d. before bid opening
1 c.d.
1 c.d.
7 c.d.
Within 30 c.d.
.Posting – 7 c.d.
within 3 c.d.
Prepare &
Sign Contract
7 c.d.
GOCC/GFIs- 15cd
Within 10 c.d.
Approve Resolution
/ Issue Notice
of Award - LCRB
Issue Bidding
Documents
Evaluate &
Rank Bid/s
Within 3 c.d.
PERIOD OF ACTION ON PROCUREMENT ACTIVITIES
Opening
of Bids
Opening
of Bids
Award of
Contract
This procurement process shall not exceed
three (3) months
All members of the BAC shall be on a
“jury duty” type of assignment until
the NoA is issued by the HOPE in order to
complete the entire procurement process at the
earliest possible time.
To guarantee the faithful
performance by the winning bidder
of its obligations under the contract
in accordance with the BidDocs, it
shall post performance security
prior to the signing of contract.
PERFORMANCE SECURITY
PERFORMANCE SECURITY
The performance security shall be in an amount equal to a percentage of the
total contract price in accordance with the following schedule:
Form of Performance Security Amount of Performance Security
(Equal to percentage of the total
contract price)
a) Cash or cashier’s/manager’s check issued by a
Universal or Commercial Bank Goods and Consulting Services – Five percent
(5%)
Infrastructure Projects – Ten percent (10%)
b) Bank draft/guarantee or irrevocable letter of
credit issued by a Universal or Commercial bank;
provided however, that it shall be confirmed or
authenticated by a foreign bank.
c) Surety bond callable upon demand issued by a
surety / insurance company duly certified by the
Insurance commission as authorized to issue such
security.
Thirty percent(30%)
d) Any combination of the foregoing Proportionate to share of form with respect to total
amount of security
The performance security shall be denominated in Philippine
pesos and posted in favor of the procuring entity, which shall be forfeited
in the event it is established that the winning bidder is in default in any
of its obligations under the contract.
The performance security shall remain valid until issuance by the
procuring entity of the final Certificate of Acceptance.
The performance security may be released by the PE after the
issuance of CA, subject to the following conditions:
• PE has no claims filed against the contract awardee or the
surety company;
• It has no claims for labor and materials filed against the
contractor; and
• Other terms of the contract
If the bidder with LCRB/HRRB or the bidder with Single
Calculated/Rated Responsive Bid, fails, refuses or is unable to submit
documents required or make good its bid by entering into a contract with the
procuring entity or post the required Performance Security within the period
of 10 cd, the bid security shall be forfeited and with appropriate sanctions,
except where such failure, refusal, or inability is through no fault of the said
bidder.
In case of failure, the BAC shall disqualify the said bidder and shall
initiate and complete post-qualification process on the bidder with the second
LCB/HRB. This procedure shall be repeated until LCRB/HRRB is
determined for award.
FAILURE TO ENTER INTO CONTRACT AND POST PERFORMANCE
SECURITY
The HOPE reserves the right to reject any and all bids, declares a
failure to bidding, or not award the contract in the following situations:
RESERVATION CLAUSE
• If there is prima facie evidence of collusion between:
 Appropriate public officers or employees of the procuring entity;
 BAC and any of the bidders;
 Among the bidders themselves;
 Bidder and a third party, including any act which restricts,
suppresses, or nullifies or tends to restrict, suppress or nullify
competition;
• If the BAC is found to have failed in following the prescribed bidding procedures; or
• For any justifiable and reasonable grounds where the award of the contract will not
redound to the benefits of the GOP, as follows:
 If the physical and economic conditions have significantly changed
so as to render the project no longer economically, financially, or
technically feasible, as determined by the HOPE;
 If the project is no longer necessary as determined by the HOPE;
 If the source of funds for the project has been withheld or reduced
through no fault of the PE.
RESERVATION CLAUSE
All bid shall be accompanied by a SWORN STATEMENT of the bidder that it
is not related to the HOPE, members of the BAC, the TWG, and the BAC secretariat,
the head of the PMO or the end-user unit, and the project consultants, by consanguinity
or affinity up to the THIRD CIVIL DEGREE.
For this reason, relation to the aforementioned persons shall automatically
disqualify the bidder from participating in the procurement of contracts of the PE.
This apply to thefollowing persons:
 If the bidder is an individual or a sole proprietorship, to the bidder himself;
 If the bidder is a partnership, to all its officers and members;
 If the bidder is a corporation, to all its officers, directors, and controlling
stockholders; and
DISCLOSURE OF RELATIONS
The method of procurement to be used shall be indicated in the approved
APP. If the original mode of procurement recommended in the APP was public bidding
but cannot be ultimately pursued, the BAC, through a resolution, shall justify and
recommend the change in the mode of procurement to be approved by the HOPE.
ALTERNATIVE METHODS OF PROCUREMENT
• LIMITED SOURCE BIDDING
-Otherwise known as “selective bidding”, is a method of procurement of
goods and consulting services that involves direct invitation to bid by the
procuring entity from the list of pre-selected suppliers or consultants with
known experience and proven capability on the requirements of the particular
contract. This alternative mode of procurement may be employed under any
of the following conditions:
 Procurement of highly specialized types of goods and consulting
services whereby only a few suppliers or consultant are known to be
available; or
 Procurement of major plant components
ALTERNATIVE METHODS OF PROCUREMENT
• DIRECT CONTRACTING
- is also known as “single source procurement”. Is a method of procurement
of goods that does not require elaborate bidding documents. The supplier is
simply asked to submit a price quotation or a pro-forma invoice together with
the conditions of sales.
Direct contracting may be resorted to under any of the following conditions:
 Procurement of goods of proprietary nature which can be obtained only
from the proprietary source;
 When the procurement of critical plant components from a specific
supplier ;
 Those sold by an exclusive dealer or manufacturer.
ALTERNATIVE METHODS OF PROCUREMENT
• REPEAT ORDER
- repeat order, when provided for in the APP, is a method of procurement of
goods from the previous winning bidder, whenever there is a need to
replenish goods procured under a contract previously awarded through
Competitive bidding.
Repeat order may be resorted to under any of the following conditions:
 Unit prices of the repeat order must be the same as or lower that those in
the original contract;
 will not result to splitting of contracts, requisitions, or purchase orders;
 shall be availed of only within six (6) months from the contract effectivity
date stated in the NTP arising from the original contract; and
 shall not exceed twenty-five percent (25%) of the quantity of each item in
the original contract.
ALTERNATIVE METHODS OF PROCUREMENT
• SHOPPING
- is a method of procurement of goods whereby the PE simply requests for
the submission of price quotations for readily available off-the-shelf goods or
ordinary/regular equipment to be procured directly from suppliers of known
qualifications.
Shopping may be employed in any of the following cases:
a) when there is an unforeseen contingency requiring immediate purchase:
Provided however that the amount shall not exceed the thresholds prescribed.
b) Procurement of ordinary or regular office supplies and equipment not
available in the procurement service involving an amount not exceeding the
thresholds prescribed.
TAKE NOTE!
“Ordinary or regular office supplies” shall be understood to
include those supplies, commodities, or materials, which,
depending on the procuring entity’s mandate and nature of
operations, are necessary in the transaction of its official
businesses, and consumed in the day-to-day operations.
However, office supplies shall not include services such as
repair, and maintenance of equipment and furniture, as well as
trucking, hauling, janitorial, security, and related or analogous
services.
DOF Classification of
LGU’s
Maximum Amount (in Philippine Peso)
Province City Municipality
1st
class 100,000 100,000 50, 000
2nd
class 100,000 100,000 50, 000
3rd
class 100,000 80, 000 50, 000
4th
class 80, 000 60, 000 50, 000
5th
class 60, 000 50, 000 50, 000
6th
class 50, 000 50, 000 50, 000
THRESHOLDS FOR SHOPPING – (a)
a. For NGAs, GOCCs, GFIs, and SUCs - One Hundred Thousand Pesos (P100, 000.00)
b. For LGUs, in accordance with the following schedule:
In case of barangays - Fifty Thousand Pesos (P50, 000.00)
DOF Classification of
LGU’s
Maximum Amount (in Philippine Peso)
Province City Municipality
1st
class 500,000 500,000 100, 000
2nd
class 500,000 500,000 100, 000
3rd
class 500,000 400, 000 100, 000
4th
class 400, 000 300, 000 50, 000
5th
class 300, 000 200, 000 50, 000
6th
class 200, 000 100, 000 50, 000
THRESHOLDS FOR SHOPPING & SVP– (b)
a. For NGAs, GOCCs, GFIs, and SUCs - Five Hundred Thousand Pesos (P500, 000.00)
b. For LGUs, in accordance with the following schedule:
In case of barangays - Fifty Thousand Pesos (P50, 000.00)
ALTERNATIVE METHODS OF PROCUREMENT
• NEGOTIATED PROCUREMENT
- After conduct of mandatory review, the BAC shall revise and
agree on the minimum technical specifications, and if necessary,
adjust the ABC. However, the ABC cannot be increased by more
than twenty percent (20%) of the ABC for the last failed
bidding.
- The BAC shall invite and engage in negotiations with a sufficient
number of suppliers, contractors, or consultants to ensure effective
competition.
1. Two – Failed Biddings
- is a method of procurement of goods, infrastructures, and consulting
services, whereby the PE directly negotiates a contract with a technically,
legally, and financially capable supplier, contractor or consultant in any of
the following cases.
ALTERNATIVE METHODS OF PROCUREMENT
- Any requirements, guidelines, documents, clarifications, and
other information shall be communicated by the PE to suppliers,
etc. On an equal basis.
- Following the completion of the negotiations, the PE shall request
all suppliers, etc to submit, on a specified date, a best and final
offer with respect to all aspects of their proposals.
-The procuring entity shall select the successful offer on the basis
of such best and final offers.
-In all stages of the negotiations, observers shall be invited.
2. Emergency Cases.
- In case of imminent danger to life or property during a state of
calamity, or when time is of the essence of 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 service and public utilities.
ALTERNATIVE METHODS OF PROCUREMENT
3. Agency – to - Agency
- Procurement of infrastructure projects, consulting services, and
goods from another agency of the GOP, such as the PS – DBM,
which is tasked with a centralized procurement of Common-Use
supplies for the GOP.
4. Procurement Agent
- Procuring entities which may not have the proficiency or
capability to undertake a particular procurement, as determined by
the HOPE, may request other GOP agencies to undertake such
procurement for them, or at their option, result and hire consultants
to assist them directly and/or train their staff in the management of
the procurement functions.
ALTERNATIVE METHODS OF PROCUREMENT
5. Highly Technical Consultants.
- Individual consultants hired to do work that is (i) highly technical (ii)
primarily confidential where trust and confidence are the primary
consideration for the hiring of consultant. Provided, however, shall, at the
most, be on six month basis, renewable at the option of the HOPE, but in no
case shall exceed the term of 6 months.
6. Defense Cooperation Agreement.
- Upon approval by the President of the Philipines, and when the
procurement for use by the AFP involves major defense equipment or
materials and/or defense-related consultancy services, when expertise
required is not available locally, and the Secretary of National Defense has
determined that the interests of the country shall be protected by negotiating
directly with an agency or instrumentality of another country with which the
Philippines has entered into a defense cooperation agreement or otherwise
maintains diplomatic relations: Provided, however, that the performance by
the supplier of its obligations under the procurement of contract shall be
covered by a performance security.
ALTERNATIVE METHODS OF PROCUREMENT
7. Small Value Procurement.
- Where the procurement does not fall under shopping and the
amount does not exceed the thresholds prescribed.
 The procuring entity shall draw up a list of at least three (3)
suppliers, contractors, or consultants, of known qualifications
which will be invited to submit proposals, in the case of goods and
infrastructure projects, or curriculum vitae, in the case of
consulting services.
8. Lease of Real Property
9. NGO Participation.
- When an appropriation law or ordinance earmarks an amount to
be specifically contracted out to NGO, the PE may enter into a
Memorandum of Agreement with an NGO.
ALTERNATIVE METHODS OF PROCUREMENT
10. Community Participation.
11. United Nations Agencies.
- Procurement from specialized agencies of the United Nations of
any of the following:
 Small quantities of-the-shelf goods, primarily in the fields of
education and health; and
Specialized product where the number of suppliers is limited,
such as vaccines or drugs.
TERMS AND CONDITIONS FOR THE USE OF ALTERNATIVE
METHODS
• Except for Limited Source Bidding under section 49 of this IRR,
submission of bid securities may be dispensed with.
• Performance and warranty security shall be submitted for
contract acquired through the alternative methods of procurement
except for:
 Shopping
 Negotiated Procurement: emergency cases, SVP, lease of real
property and UN agencies.
DELIVERY, INSPECTION, &
ACCEPTANCE
DELIVERIES
Deliveries of supplies must be made by the
Supplier/Manufacturer/Contractor within the stipulated period and
at the place/s indicated in the purchase order of the contract.
In all cases, delivery shall be made within office hours and
during working days.
Failure to deliver within the prescribed period, the
supplier/manufacturer/contractor shall be liable for penalty,
usually in the form of liquidated damages specified in the
Contract/Purchase Order.
LIQUIDATED DAMAGES
1 % of the undelivered
items/delays
Liquidated damages
of the undelivered
items in the contract deducted
for each day of delay
DELIVERIES
 All supplies shall be adequately contained, packed,
crated, cased, bundled, wrapped, or sealed to prevent
damage, spoilage, and loss.
 They must be properly labelled and marked in
accordance with the minimum requirements of RA 7394
otherwise known as Consumer Act of the Philippines.
 Responsibility in case of damage, spoilage, or loss
shall be governed by existing laws on the matter unless
the purchase order or contract provides otherwise.
DELIVERIES
 Deliveries shall be made within seven(7) calendar
days upon receipt of the order unless otherwise provided
in the Purchase Order or contract.
 All items delivered SHALL BE RECEIVED BY
THE SUPPLY OFFICER/DESIGNATED
PROPERTY CUSTODIAN as the case may be.
Receiving and signing of the DR and temporary
recording of the deliveries shall be subjected to
inspection by the Inspectorate Team.
INSPECTION
INSPECTION
Inspection is the process of examining and testing
the procured supplies, materials, equipment, and services
including raw materials and components to determine
their conformity with the contract requirements including
all applicable drawings, specifications, and purchase
description.
What is Inspection?
INSPECTION
 The inspection of items SHALL BE DONE BY
THE INSPECTORATE TEAM, whose members shall
be determined and designated by the HOPE.
 Inspection shall be done in accordance with the
standards and specifications and be conducted in the
presence of the suppliers and end-user’s representatives.
 The Inspectorate Team and the Supply
Officer/Designated Property Custodian SHALL
PREPARE AND SIGN the Inspection and Acceptance
Report (IAR).
TECHNIQUES OF INSPECTION
• Inspection by Item
- Individual item is checked in conformity with the
requirement stated in the specification. This method
of inspection is applicable, but not limited to
deliveries of equipment and fixed assets.
• Inspection by Sampling
- Sampling is a process of obtaining information
about a group of data having similar purpose or
function, usually ten percent (10%) of the total or lot
delivery.
General Procedures in Conducting Inspection
1. Upon receipt of the request for inspection, check the
following documents as their completeness and
authenticity.
A. Purchase Order & Contract
 Date;
 PO Number
 Name and Address of the Supplier
 Supplier’s Acknowledgement or Receipt (date of receipt)
 Specifications
 Quantity
 Unit/Total Price
 Availability of fund
 Approval of the HOPE or his duly authorized representative
General Procedures in Conducting Inspection
B. Supplier’s Invoice Delivery Receipt
 Pre-numbered and not just typed stamped or hand-written
 Date checked against the delivery date stated in the P.O or
contract
 “RECEIVED” portion Receipt and date of item delivered
acknowledged by the supply officer/designated property
custodian.
C. Conduct inspection and testing procedure when applicable.
D. Prepare inspection report immediately and give to the
Inspectorate Team and supply officer/designated property
custodian for signature.
Inspection Procedures for Equipment
1. Examine the equipment as to the physical condition: brand new, second
hand, rebuild, or reconditioned. See to it that no defective or old worn out
parts are used/attached to the equipment.
2. Take hold of the manual, catalogue or handbook for equipment delivered
for reference. All date/information contained thereon should conform with
the delivery of the serial number, point of origin, color, and the accessories
or tools that go with the equipment.
3. Make a physical count and inspect the unit piece-by-piece or unit-by-unit.
Random sampling is not applicable for this type of delivery because you
have to request the supplier or his representative to demonstrate the
operation of the equipment (test run) in your presence and that of the end-
user. Observes the actual performance thereof.
4. Get the warranty card and note down the warranty card number in the
original invoice. Check if the serial indicated thereon is the same as that of
the delivery.
Inspection & Acceptance of Infra Projects
1. The Head/End-user/Implementing Office/Property Officer/etc. must secure
copy of the Program of Works prior to the start of the construction.
2. The End-user must seek assistance from the technical person (TWG for the
project) to check the materials that are being used during the construction if
they are in accordance with the required specifications.
3. The End-user (usually the Head) shall sign the Certificate of Acceptance
(CA)/Certificate of Turnover only after the issuance of the 100%
completion report by the project engineer. The same certificate shall also be
signed by the Division Physical Facilities Officer.
4. The End-user (usually the Head) shall issue a Certificate of Non-
compliance if the works are not in accordance with the specifications or
standards.
Documentary Requirements for Inspection
1. General Requirements for Inspection of
deliveries/fabrication/installation
 Original copy of approved contract/PO
 Original Invoice/ Delivery Receipt
 Performance/Quality Test Result (if applicable)
 Other documents specified in the contract necessary to
determine conformance with specifications (e.g. Approved
plans/samples, standard specifications, etc. )
Documentary Requirements for Inspection
1. Inspection of Infrastructure Project for construction, repairs and
rehabilitation
 Statement of Work Accomplishment (SWA)
 Certificate of completion for final payment
 Certificate of Final Acceptance (CFA) for release of retention money
 Approved original contract
 Approved Program of Works
2. Post-repair Inspection for repairs
 Approved job order/work order/contract
 Certificate of Acceptance
 Waste Materials reports, if applicable
Acceptance or Rejection of Deliveries of Goods
 The Inspectorate Team may recommend a REJECTION /
REDUCTION OF PRICE when their is a SHORTAGE IN QUANTITY,
DEFICIENCY, OR DEFECTIVENESS IN QUALITY.
After consideration of 10% tolerable allowance based on standards,
the following shall be observed by the Inspectorate Team in the evaluation
of the result of the inspection:
 Supplies or property tested and found to be in accordance with the
approved PO/Contract and with the required specifications SHALL BE
ACCEPTED;
 Supplies or property whose quality analysis shows deficiency of
less than ten percent (10%) may be accepted, provided that they shall serve
the purpose for which they were purchased. The defect is minor and the
contract price is reduced according to the deficiency noted;
Acceptance or Rejection of Deliveries of Goods
 Supplies or property whose quantity is short by volume, weight,
actual count, etc. Shall be subjected to reduction on contract price at an
amount equivalent to the shortage, provided that the said deliveries are
acceptable to the agency or unit; and
 Damaged items that are not disclose or incorrectly marked as such
shall be subjected to corresponding reduction in the contract.
 Acceptance of deliveries maybe made only if the supplies and
materials delivered CONFORM TO THE STANDARDS AND
SPECIFICATIONS STATED IN THE CONTRACT/PO
Acceptance or Rejection of Deliveries of Goods
 If the supplier failed to comply with the requirements, the
property/supply officer shall submit a report to the HOPE for
appropriate actions. The HOPE may forfeit the contractor’s
performance bond, if any, and may also institute civil actions
against the contractors for breach of contract.
 The supply officer/ designated property custodian shall be
responsible for accepting deliveries of procured items and should
notify the Auditor within five (5) days upon receipt of the
approved contract/PO.
CUSTODIANSHI
P
PROPERTY CUSTODIANSHIP
Property custodianship refers to the guardianship of
government property by the accountable person.
This includes the receipt, safekeeping, issuance, repair, and
maintenance of supplies, materials, and equipment.
The designated property custodian/officer is responsible,
accountable and liable for any loss, misuse, damage, or
deterioration of government property due to fault or negligence in
safekeeping which may be physical or destructive
What is custodianship?
Storage / Warehousing
Storage/ Warehousing refers to the scientific and
economical warehousing of materials for their best safekeeping
and availability.
Best safekeeping means protecting the materials against
theft, fire, and deterioration but easily accessible when needed.
The method or systems include factors and procedures in
the manner of undertaking due care and maintenance of good
condition of the property.
What is warehousing?
Factors to be considered in Storage and Warehousing:
1. Site Location and size of storage/stockroom to use
Generally, selection of site location, type and size of
storage of stockroom to be used, play a major role for an
effective storage and Warehousing management. It is
important factor for the following purposes:
 To be able to figure out the amount of materials that can be
stored;
 For determination of access for efficient and proper transport
of supplies and materials;
 For provision of large size of doorways and entrances;
 For installation of proper lightings and ventilation.
Factors to be considered in Storage and Warehousing:
1. Special layout planning for materials to be stored.
For easy facilitation, space layout for materials to be stored
should be planned. Specifically the layout should contain the
placement of supplies by category, type, similarity, popularity,
sizes, shapes, characteristics and to include perishability.
It is important that materials be stored and placed in its
proper places to avoid accidents and wastage.
Factors to be considered in Storage and Warehousing:
1. Types of stacking suitable for each type of property
In like manner as in space layout planning, types of
stacking for each type of materials should be given careful
planning. It may be classified into:
i. Bulk storage
ii. Medium Lot Storage; and
iii. Small Lot Storage
Procedures in Storage / Warehousing
1. Receipt of Materials and Equipment and Other Property
- Supplies, materials, and equipment delivered by the
supplier must be accompanied by Delivery Receipts (DRs)
and/or Sales Invoice (SI), which were pre-inspected by the
supply officer / designated property custodian before the items
are received.
2. Arrangement of Materials
- The storekeeper arranges the materials inside the
warehouse/ stockroom in accordance with the prepared
storage plan.
Procedures in Storage / Warehousing
3. Recording of Receipts/ Deliveries
- The storekeeper properly posts and updates the
information (receipts, issuances and balance on hand)
taken from the IAR.
- Reconciliation of entries of bin cards with
stock/property cards and with the physical count of stock
on hand should be currently and properly updated.
Issuance and Utilization
Issuance and Utilization of supplies and materials and
equipment is among the activities of property custodianship.
 The custodianship of supplies and equipment is transferred
from the Supply Officer/ Designated Property Custodian and
Storekeeper/Warehouseman to the end-user who is responsible and
accountable for the utilization and / or safekeeping.
Procedure in the
Requisition and Issuance
of Inventory Items
Start of Procedure
Concerned Office, Requesting Personnel
Prepares the Supplies Availability Inquiry
(SAI) in 2 copies. Accomplishes the form
For item description, unit, and quantity.
Fills up the “Inquired by” portion of SAI
And forwards the same to Accounting
Units for processing.
Accounting Unit, Accounting Staff
Receives SAI from Requesting Personnel.
Review and verifies the completeness
Of Information.
Accounting Staff, retrieves from file the
SLC and determines availability/status
Of stocks. Fills up the number, stock number,
Status of stock and “Status provided by”
Portion of SAI. Returns the original to the
Requesting Personnel and files the
Copy 2 of the SAI
Requesting Personnel, receives the
Original SAI from the Acctg. Staff
Stock
Available?
No
A
Requesting Personnel, prepares Requisition
Issuance Slip (RIS) in 3 copies. Fills up all
The necessary information except for the
Issuance portion and signs “Requested By”
Portion of the RIS. Forwards the RIS to
Authorized Official for approval.
Authorized Official, signs the
“Approved By” Portion of the RIS
Requesting Personnel receives
Signed RIS and forwards to the Property
Division together with the original
SAI for withdrawal of Inventory items
requested
Property Officer reviews and verifies
RIS as to completeness of Information.
Fills up RIS # date, quantity, remarks
And initials “Approved by” portion of the
RIS and records RIS in the logbook
Head of the Property, signs the
“Approved by” portion of RIS and
Returns to the Supply Officer for
Issuance of the Stock
Supply officer fills up
the and signs
The “Issuance” portion
of the RIS and issue
inventory items
Requested to the
Requesting Personnel
Requesting Personnel,
Receives supplies
requested
And sign in the
“Received by” portion
Of the RIS files
Permanently in num.
Order copy 2 of RIS
And files temporarily
The RIS and SAI for the
Preparation of
Report of Supplies
And Materials Issued
(RMSI)
End – of
Procedure
B
A
Requesting Personnel,
Prepares PR for the
Items requested and
Forwards the same to
Property Division for
Processing of request
B
Illustration on preparation of the issuance documents
SAI
If
Available
PR
N
O
RIS
YES
ICS
/ARE
GETTING TO KNOW WITH IMPORTANT DOCUMENTS
1. Supplies Availability Inquiry (SAI)
- is a document prepared by the requisitioning officer as a basis for
the preparation of RIS and PR if the supplies/equipment are available or not
available on stock.
2. Requisition and Issuance Slip (RIS)
- is used if the goods/supplies carried in stock based on the SAI received
from the Accounting Unit.
It must be numbered in the following manner as prescribed by COA.
GETTING TO KNOW WITH IMPORTANT DOCUMENTS
3. Purchase Request (PR)
- is accomplished if the goods/supplies/properties are not carried in stock
based on the SAI received from the Accounting Unit.
4. Acknowledgement Receipt for Equipment (ARE)
- is used for PPE accounts when issued to officials and employees other
than the regular property officer. It shall be signed and dated by the
Property officer under “Received from” portion and the recipient shall
acknowledge by signing the documents.
Recording for the Receipt, Issuance and Utilization of
Supplies, Materials & Equipment
The issuance of supplies/materials/equipment SHALL BE
PROPERLY ACCOUNTED FOR.
The Warehouseman/Storekeeper shall maintain bin cards and record the
receipt and issuance of each class of item kept in stock. He/She is likewise
monitor the status of the stock on hand. He shall post the quantity requested
immediately upon withdrawal of the supplies/materials from the stockpile.
The Supply Officer/Stock clerk shall maintain the stock cards for each class
of articles kept in stock. All receipt and issuance of supplies, and the balance on
hand shall be updated.
The bases of recording the receipts and issuance shall be the DR and the RIS
respectively.
The stock card serves as guide in preparing the estimates of the quantity and
description of the articles needed for the year.
Recording for the Receipt, Issuance and Utilization of
Supplies, Materials & Equipment
The stock card will be at the same time serves as guards against overstocking
of supplies and materials.
The Supply Officer shall maintain the Property Card for each class of PPE
reflecting the date of acquisition, description, custody, estimated life
expectancy, depreciation, disposal, and other information about the PPE based
on the source of documents.
The basis of recording the issuance of PPE is the ARE
Reconciliation of Property and Accounting Records
 The accounting of issuance is not complete without the proper
reconciliation of property and accounting records.
 Before the property records can be reconciled with the accounting records,
the Property/Supply Office shall see to it that the existing property records
are reconciled with the actual inventory count.
 The warehouseman/storekeeper may at any time conduct a test count of his
stock to determine whether it tallies with the balance per bid cards.
 Any discrepancies should be noted for further investigation and if necessary,
coordinate with the stock/property clerk to settle the differences.
Repair and
Maintenance
Repair and Maintenance
The repair and maintenance program is
necessary for the purpose of attaining and/or
extending the established economical and
useful life of an equipment/property and
serves as a sound basis for scheduling its
replacement.
Repair Equipment (major / minor)
Repair is the process/act of restoring a property /equipment to its
original state or to its working condition. Unserviceable equipment may at once
be restored to its normal state of efficiency by making repairs.
 Minor repair merely keeps a building of equipment in fit
condition for use without increasing its capacity or otherwise
adding to its normal value as an asset.
i. Fair wear and tear is the condition of equipment worn
out or otherwise rendered unserviceable through use
without apparent fault.
What is repair?
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act
Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act

Contenu connexe

Tendances

RA9184 GPPB Presentation
RA9184 GPPB PresentationRA9184 GPPB Presentation
RA9184 GPPB PresentationAlain Pinsotes
 
9. asset management presentation
9. asset management presentation9. asset management presentation
9. asset management presentationJoenes Sevilla
 
Got Problems with Government Procurement? Here's how to do it right.
Got Problems with Government Procurement?  Here's how to do it right.Got Problems with Government Procurement?  Here's how to do it right.
Got Problems with Government Procurement? Here's how to do it right.Ninfa Geloryao
 
Philippine Government Budgetary Processes
 Philippine Government Budgetary Processes Philippine Government Budgetary Processes
Philippine Government Budgetary ProcessesChristine Liz Jimenea
 
Supply and property management
Supply and property managementSupply and property management
Supply and property managementJosephCarreon6
 
Recruitment Screening and Selection process in Philippine Government
Recruitment Screening and Selection process in Philippine GovernmentRecruitment Screening and Selection process in Philippine Government
Recruitment Screening and Selection process in Philippine GovernmentMitch Herrera
 
Frequently-asked-questions-about-ra-9184
Frequently-asked-questions-about-ra-9184Frequently-asked-questions-about-ra-9184
Frequently-asked-questions-about-ra-9184june alapa
 
Katarungang pambarangay
Katarungang pambarangayKatarungang pambarangay
Katarungang pambarangayHarve Abella
 
Implementing Rules of the Local Government Code of the Philippines
Implementing Rules of the Local Government Code of the PhilippinesImplementing Rules of the Local Government Code of the Philippines
Implementing Rules of the Local Government Code of the PhilippinesHarve Abella
 
Samples of Decided Administrative Cases in the Philippines
Samples of Decided Administrative Cases in the PhilippinesSamples of Decided Administrative Cases in the Philippines
Samples of Decided Administrative Cases in the PhilippinesJohanna Manzo
 
PRIME HRM PRESENTATION
PRIME HRM PRESENTATIONPRIME HRM PRESENTATION
PRIME HRM PRESENTATIONNew Era Cap
 
Salient Features_RA 9184.pptx
Salient Features_RA 9184.pptxSalient Features_RA 9184.pptx
Salient Features_RA 9184.pptxDanteRevamonte
 
Human Resource Management in Local Government in the Philippines
Human Resource Management in Local Government in the PhilippinesHuman Resource Management in Local Government in the Philippines
Human Resource Management in Local Government in the PhilippinesJay Abawag
 
LGU Local Special Bodies & Challenges and Interventions
LGU Local Special Bodies & Challenges and  Interventions  LGU Local Special Bodies & Challenges and  Interventions
LGU Local Special Bodies & Challenges and Interventions Jo Balucanag - Bitonio
 
The philippine budgetary process
The philippine budgetary processThe philippine budgetary process
The philippine budgetary processJomelyn Abuan
 
The Philippine Civil Service Commission
The Philippine Civil Service CommissionThe Philippine Civil Service Commission
The Philippine Civil Service CommissionJo Balucanag - Bitonio
 

Tendances (20)

RA9184 GPPB Presentation
RA9184 GPPB PresentationRA9184 GPPB Presentation
RA9184 GPPB Presentation
 
9. asset management presentation
9. asset management presentation9. asset management presentation
9. asset management presentation
 
Got Problems with Government Procurement? Here's how to do it right.
Got Problems with Government Procurement?  Here's how to do it right.Got Problems with Government Procurement?  Here's how to do it right.
Got Problems with Government Procurement? Here's how to do it right.
 
Philippine Government Budgetary Processes
 Philippine Government Budgetary Processes Philippine Government Budgetary Processes
Philippine Government Budgetary Processes
 
Supply and property management
Supply and property managementSupply and property management
Supply and property management
 
Recruitment Screening and Selection process in Philippine Government
Recruitment Screening and Selection process in Philippine GovernmentRecruitment Screening and Selection process in Philippine Government
Recruitment Screening and Selection process in Philippine Government
 
Frequently-asked-questions-about-ra-9184
Frequently-asked-questions-about-ra-9184Frequently-asked-questions-about-ra-9184
Frequently-asked-questions-about-ra-9184
 
Katarungang pambarangay
Katarungang pambarangayKatarungang pambarangay
Katarungang pambarangay
 
Implementing Rules of the Local Government Code of the Philippines
Implementing Rules of the Local Government Code of the PhilippinesImplementing Rules of the Local Government Code of the Philippines
Implementing Rules of the Local Government Code of the Philippines
 
Samples of Decided Administrative Cases in the Philippines
Samples of Decided Administrative Cases in the PhilippinesSamples of Decided Administrative Cases in the Philippines
Samples of Decided Administrative Cases in the Philippines
 
Remedies on COA disallowance
Remedies on COA disallowanceRemedies on COA disallowance
Remedies on COA disallowance
 
Local Legislative Process
Local Legislative ProcessLocal Legislative Process
Local Legislative Process
 
Local Development Planning
Local Development PlanningLocal Development Planning
Local Development Planning
 
PRIME HRM PRESENTATION
PRIME HRM PRESENTATIONPRIME HRM PRESENTATION
PRIME HRM PRESENTATION
 
BUDGET PROCESS OF THE PHILIPPINE NATIONAL GOVERNMENT
BUDGET PROCESS OF THE PHILIPPINE NATIONAL GOVERNMENTBUDGET PROCESS OF THE PHILIPPINE NATIONAL GOVERNMENT
BUDGET PROCESS OF THE PHILIPPINE NATIONAL GOVERNMENT
 
Salient Features_RA 9184.pptx
Salient Features_RA 9184.pptxSalient Features_RA 9184.pptx
Salient Features_RA 9184.pptx
 
Human Resource Management in Local Government in the Philippines
Human Resource Management in Local Government in the PhilippinesHuman Resource Management in Local Government in the Philippines
Human Resource Management in Local Government in the Philippines
 
LGU Local Special Bodies & Challenges and Interventions
LGU Local Special Bodies & Challenges and  Interventions  LGU Local Special Bodies & Challenges and  Interventions
LGU Local Special Bodies & Challenges and Interventions
 
The philippine budgetary process
The philippine budgetary processThe philippine budgetary process
The philippine budgetary process
 
The Philippine Civil Service Commission
The Philippine Civil Service CommissionThe Philippine Civil Service Commission
The Philippine Civil Service Commission
 

Similaire à Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act

LECTURE - Planning.ppt
LECTURE - Planning.pptLECTURE - Planning.ppt
LECTURE - Planning.pptshinawaro27
 
governmentprocurementactww-180625195256.pdf
governmentprocurementactww-180625195256.pdfgovernmentprocurementactww-180625195256.pdf
governmentprocurementactww-180625195256.pdfRalph Vasquez, CIE
 
governmentprocurementactww-180625195256.pptx
governmentprocurementactww-180625195256.pptxgovernmentprocurementactww-180625195256.pptx
governmentprocurementactww-180625195256.pptxJeesseJadulco
 
IFAD Procurement Guidelines revised 2008
IFAD Procurement Guidelines revised 2008IFAD Procurement Guidelines revised 2008
IFAD Procurement Guidelines revised 2008IFAD Vietnam
 
THE 2016 REVISED IMPLEMENTING RULES AND REGULATIONS OF.pptx
THE 2016 REVISED IMPLEMENTING RULES   AND REGULATIONS OF.pptxTHE 2016 REVISED IMPLEMENTING RULES   AND REGULATIONS OF.pptx
THE 2016 REVISED IMPLEMENTING RULES AND REGULATIONS OF.pptxEMELYNDEVILLA
 
procurement slides.pptx
procurement slides.pptxprocurement slides.pptx
procurement slides.pptxJessicaPolig1
 
Powerpoint Presentation on Public Procurement.pdf
Powerpoint Presentation on Public Procurement.pdfPowerpoint Presentation on Public Procurement.pdf
Powerpoint Presentation on Public Procurement.pdfkayerencaole1
 
Revised irr.ra9184 2009
Revised irr.ra9184 2009Revised irr.ra9184 2009
Revised irr.ra9184 2009maridjo_legal
 
National Treasury, PPP Unit. PPPs in Kenya. Context, Legal and Institutional ...
National Treasury, PPP Unit. PPPs in Kenya. Context, Legal and Institutional ...National Treasury, PPP Unit. PPPs in Kenya. Context, Legal and Institutional ...
National Treasury, PPP Unit. PPPs in Kenya. Context, Legal and Institutional ...Emmanuel Mosoti Machani
 
procurement planning.pdf
procurement planning.pdfprocurement planning.pdf
procurement planning.pdfRawlings Bello
 
OECD review of the PPP governance framework in the United-Kingdom: preliminar...
OECD review of the PPP governance framework in the United-Kingdom: preliminar...OECD review of the PPP governance framework in the United-Kingdom: preliminar...
OECD review of the PPP governance framework in the United-Kingdom: preliminar...OECD Governance
 
ProTech an introduction (client) v1.3 8jun2017ml (lowres)
ProTech an introduction (client) v1.3 8jun2017ml (lowres)ProTech an introduction (client) v1.3 8jun2017ml (lowres)
ProTech an introduction (client) v1.3 8jun2017ml (lowres)Giselle Duran
 
20160826-IRR-RA-9184-procurement-reform (1).pdf
20160826-IRR-RA-9184-procurement-reform (1).pdf20160826-IRR-RA-9184-procurement-reform (1).pdf
20160826-IRR-RA-9184-procurement-reform (1).pdfcatherineCerteza
 
TOTAL VALUE MANAGEMENT IN A PUBLIC PRIVATE PARTNERSHIP ENVIRONMENT
TOTAL VALUE MANAGEMENT IN A PUBLIC PRIVATE PARTNERSHIP ENVIRONMENTTOTAL VALUE MANAGEMENT IN A PUBLIC PRIVATE PARTNERSHIP ENVIRONMENT
TOTAL VALUE MANAGEMENT IN A PUBLIC PRIVATE PARTNERSHIP ENVIRONMENTSilbert S. Barrett, ASCE (Aff.M.)
 
Formulation and Approval of Various Infrastructure Projects
Formulation and Approval of Various Infrastructure ProjectsFormulation and Approval of Various Infrastructure Projects
Formulation and Approval of Various Infrastructure ProjectsGAURAV. H .TANDON
 
7. past performance_seminar
7. past performance_seminar7. past performance_seminar
7. past performance_seminarColorado PTAC
 

Similaire à Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act (20)

LECTURE - Planning.ppt
LECTURE - Planning.pptLECTURE - Planning.ppt
LECTURE - Planning.ppt
 
governmentprocurementactww-180625195256.pdf
governmentprocurementactww-180625195256.pdfgovernmentprocurementactww-180625195256.pdf
governmentprocurementactww-180625195256.pdf
 
governmentprocurementactww-180625195256.pptx
governmentprocurementactww-180625195256.pptxgovernmentprocurementactww-180625195256.pptx
governmentprocurementactww-180625195256.pptx
 
Ra 9184Briefing.pptx
Ra 9184Briefing.pptxRa 9184Briefing.pptx
Ra 9184Briefing.pptx
 
IFAD Procurement Guidelines revised 2008
IFAD Procurement Guidelines revised 2008IFAD Procurement Guidelines revised 2008
IFAD Procurement Guidelines revised 2008
 
THE 2016 REVISED IMPLEMENTING RULES AND REGULATIONS OF.pptx
THE 2016 REVISED IMPLEMENTING RULES   AND REGULATIONS OF.pptxTHE 2016 REVISED IMPLEMENTING RULES   AND REGULATIONS OF.pptx
THE 2016 REVISED IMPLEMENTING RULES AND REGULATIONS OF.pptx
 
procurement slides.pptx
procurement slides.pptxprocurement slides.pptx
procurement slides.pptx
 
Powerpoint Presentation on Public Procurement.pdf
Powerpoint Presentation on Public Procurement.pdfPowerpoint Presentation on Public Procurement.pdf
Powerpoint Presentation on Public Procurement.pdf
 
Revised irr.ra9184 2009
Revised irr.ra9184 2009Revised irr.ra9184 2009
Revised irr.ra9184 2009
 
National Treasury, PPP Unit. PPPs in Kenya. Context, Legal and Institutional ...
National Treasury, PPP Unit. PPPs in Kenya. Context, Legal and Institutional ...National Treasury, PPP Unit. PPPs in Kenya. Context, Legal and Institutional ...
National Treasury, PPP Unit. PPPs in Kenya. Context, Legal and Institutional ...
 
01 RA9184 SEMINAR.pptx
01 RA9184 SEMINAR.pptx01 RA9184 SEMINAR.pptx
01 RA9184 SEMINAR.pptx
 
2016 RA 9184 REVISED
2016 RA 9184 REVISED2016 RA 9184 REVISED
2016 RA 9184 REVISED
 
procurement planning.pdf
procurement planning.pdfprocurement planning.pdf
procurement planning.pdf
 
OECD review of the PPP governance framework in the United-Kingdom: preliminar...
OECD review of the PPP governance framework in the United-Kingdom: preliminar...OECD review of the PPP governance framework in the United-Kingdom: preliminar...
OECD review of the PPP governance framework in the United-Kingdom: preliminar...
 
ProTech an introduction (client) v1.3 8jun2017ml (lowres)
ProTech an introduction (client) v1.3 8jun2017ml (lowres)ProTech an introduction (client) v1.3 8jun2017ml (lowres)
ProTech an introduction (client) v1.3 8jun2017ml (lowres)
 
20160826-IRR-RA-9184-procurement-reform (1).pdf
20160826-IRR-RA-9184-procurement-reform (1).pdf20160826-IRR-RA-9184-procurement-reform (1).pdf
20160826-IRR-RA-9184-procurement-reform (1).pdf
 
TOTAL VALUE MANAGEMENT IN A PUBLIC PRIVATE PARTNERSHIP ENVIRONMENT
TOTAL VALUE MANAGEMENT IN A PUBLIC PRIVATE PARTNERSHIP ENVIRONMENTTOTAL VALUE MANAGEMENT IN A PUBLIC PRIVATE PARTNERSHIP ENVIRONMENT
TOTAL VALUE MANAGEMENT IN A PUBLIC PRIVATE PARTNERSHIP ENVIRONMENT
 
TOTAL VALUE MANAGEMENT IN A PUBLIC PRIVATE PARTNERSHIP
TOTAL VALUE MANAGEMENT IN A PUBLIC PRIVATE PARTNERSHIPTOTAL VALUE MANAGEMENT IN A PUBLIC PRIVATE PARTNERSHIP
TOTAL VALUE MANAGEMENT IN A PUBLIC PRIVATE PARTNERSHIP
 
Formulation and Approval of Various Infrastructure Projects
Formulation and Approval of Various Infrastructure ProjectsFormulation and Approval of Various Infrastructure Projects
Formulation and Approval of Various Infrastructure Projects
 
7. past performance_seminar
7. past performance_seminar7. past performance_seminar
7. past performance_seminar
 

Dernier

Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Lviv Startup Club
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptxChapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptxesiyasmengesha
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyHanna Klim
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
Personal Brand Exploration Presentation Eric Bonilla
Personal Brand Exploration Presentation Eric BonillaPersonal Brand Exploration Presentation Eric Bonilla
Personal Brand Exploration Presentation Eric BonillaEricBonilla13
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Trauma Training Service for First Responders
Trauma Training Service for First RespondersTrauma Training Service for First Responders
Trauma Training Service for First RespondersBPOQe
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
Amazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyAmazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyfashionfound007
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toumarfarooquejamali32
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examplesamberjiles31
 

Dernier (20)

WAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdfWAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdf
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptxChapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agency
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
Personal Brand Exploration Presentation Eric Bonilla
Personal Brand Exploration Presentation Eric BonillaPersonal Brand Exploration Presentation Eric Bonilla
Personal Brand Exploration Presentation Eric Bonilla
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Trauma Training Service for First Responders
Trauma Training Service for First RespondersTrauma Training Service for First Responders
Trauma Training Service for First Responders
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
Amazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyAmazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the company
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb to
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examples
 

Property and Supply Management w/ introduction to R.A. 9184 Government Procurement Reform Act

  • 1. Holy Name UniversityHoly Name University cor. Gallares & Lessage sts, Tagbilaran Citycor. Gallares & Lessage sts, Tagbilaran City The only catholic university in the Province of Bohol LOCAL GOVERNMENT ADMINISTRATIONLOCAL GOVERNMENT ADMINISTRATION JUAN PAOLO S. ARANAS Master in Public Administration RESOURCE UTILIZATION AND ACCOUNTABILITY Property & Supply Management (w/ introduction to R.A. 9184)
  • 3. BASIC PRINCIPLES Public office is a Public Trust (Sec. 1 Art. 11 of the 1987 Philippine Constitution; RA 6713). Public officials and employees must be at all times accountable to the people, serve them with utmost honesty, responsibility, integrity, loyalty, and efficiently, act with patriotism and lead modest lives.
  • 4. BASIC PRINCIPLES Section 2 of the PD no. 1445 otherwise known as the State Auditing of the Philippines states that “all resources of the government shall be managed, expended or utilized in accordance with laws, rules, regulations, and safeguarded against loss or wastage through illegal or improper disposition with the view of ensuring economy, efficiency, and effectiveness in the operation of the government.
  • 5. References: • Republic Act No. 7160 Book II Title 6 • Revised Implementing Rules and Regulations of Republic Act No. 9184, otherwise known as the “Government Procurement Reform Act.”
  • 6. Course Objectives: • To know and discuss Supply & Property Management; and to • Appreciate Provisions under Republic Act. No. 9184 and its Implementing Rules and Regulations
  • 7. SUPPLY AND PROPERTY MANAGEMENT
  • 8. *SECTION 356 – GENERAL RULE IN PROCUREMENT AND DISPOSAL Except as otherwise provided herein, acquisition of supplies by local government units shall be through COMPETITIVE PUBLIC BIDDING. Supplies which become unserviceable or no longer needed shall be SOLD, whenever applicable, at PUBLIC AUCTION, subject to applicable rules and regulations
  • 10. DEFINITION OF TERMS (R.A. 7160 & 9184)  Lowest Complying and Responsible Bid 1. proposal of one who offers the lowest price; 2. meets all the technical specifications and requirements of the supplies desired; 3. as a leader in the line of supplies involved; 4. maintains a regular establishment; and 5. has complied consistently with previous commitments;
  • 11.  Suitable Substitute – refers to the kind of article which would serve substantially the same purpose or produce substantially the same results as the brand, type, or make of article originally desired or requisitioned.  Supplies – include everything, except real property  Terms & Conditions – refers to other requirements not affecting the technical specifications and requirements of the required supplies desired
  • 12.  Approved Budget for the Contract – budget for the contract duly approved by the HOPE. Fund Instrumentality National Government Agencies (NGAs) General Appropriations Act (GAA) GOCCs, GFIs, SUCs Corporate budget for the contract approved by the governing board Local Government Units (LGUs) Budget Approved by Sanggunian Foreign – Funded Procurement Treaty, International or Executive Agreement
  • 13.  Bid – equivalent to “Proposal” and “Tender”  Bidder – eligible contractor, manufacturer, supplier, distributor and or consultant  Bidding Documents – documents issued by the P.E. as basis for bids, furnishing all information necessary for a prospective bidder to prepare a bid.  Common-Use supplies – goods, materials and equipment that are used in the day-to-day operations of the PE in the performance of their duty
  • 14.  Competitive Bidding – method of procurement which is open to participation by an interested party which consists of processes.  Expendable Supplies – articles which are normally consumed in use within one (1) year or more than a year but which shall have decreased substantially in value after only one year in use
  • 15.  Goods – all items except consulting services and infrastructure projects which may be needed in the transaction of public businesses including related or analogous services.  Head of the Procuring Entity (HOPE) –the head of the Agency.  Infrastructure Projects – “civil works”  Non-Expendable Supplies - articles which retain their identity during the period of use whose serviceable life is more than one year.
  • 16.  PhilGEPS – Philippine Government Electronic Procurement System  Portal – website  Procurement – acquisition by the PE  Procuring Entity (PE) – refers to branch, offices, agencies, bureau of the GOP, incl. GOCC, GFI, SUC, LGU.
  • 17. SECTION I – SHORT TITLE AND PURPOSE OF RA 9184 Purpose of the IRR of R.A. 9184: • Modernization • Standardization • Regulation of the procurement activities of the GOP
  • 18. SECTION 2 – DECLARATION OF POLICY • Modernization • Standardization • Regulation of Procurement Activities • Transparency • Accountability • Equity • Efficiency • Economy
  • 19. SECTION 3 – GOVERNING PRINCIPLES • Transparency • Competitiveness • Streamlined procurement process • System of Accountability • Public monitoring
  • 20. SECTION 4 – SCOPE AND APPLICATION • Branch, agency, department, bureau, office or instrumentality of GOP, incl. GOCCs, GFIs, SUCs, & LGUs • Any Treaty or International or Executive Agreement to which the GOP is signatory
  • 21. • Procurement funded by foreign grants • Acquisition of real property This IRR shall not apply to the following: • Public – Private sector infra or development projects and other procurement covered by R.A 6957
  • 22. DUTIES OF THE PMO / End- user(s)
  • 23. Duties of the PMO/End-user(s) 1. To provide the technical specifications of the goods it will procure 2. To conduct a market survey that will include a study of the available products or services, industry developments 3. To recommend the ABC 4. To provide technical advice 5. To assist in the preparation of bidding documents
  • 24. Duties of the PMO/End-user(s) 6. To attend all stages of the procurement 7. To determine the period of contract implementation during the procurement planning stage, and include it in the PPMP. 8. To ensure that the Chief Accountant of the procuring entity issues a CAF for the project.  Only with a CAF can the contract be valid.Only with a CAF can the contract be valid.  The Chief Accountant must also sign the contract as a witness. (Sec. 5 GPM)The Chief Accountant must also sign the contract as a witness. (Sec. 5 GPM)  Fund availability isFund availability is an indispensable prerequisite to the execution of anyan indispensable prerequisite to the execution of any government contract involving the expenditure of public funds by allgovernment contract involving the expenditure of public funds by all government agencies at all levels.government agencies at all levels.
  • 25. Duties of the PMO/End-user(s) 9. To determine the existence of condition/s that require an amendment to order. 10. To determine the existence of a force majeure or fortuitous event that will be the basis for the issuance of a suspension order. 11. To either approve or disapprove the request for extension.
  • 27. What is Planning? • The act or process of making or carrying out plans. • The establishment of goals, policies, and procedures for a social or economic unit. • It involves resource allocation and scheduling. • Through plans, a PE is able to effectively manage and track procurement all the way to contract performance. • Allows managers to determine how to allocate limited cash and other appropriate resources under a given time line, identify choke- points, weaknesses, and delays in the entire activity that can be addressed or eliminated.
  • 28. Planning & budgeting linkages PE – Agency Budget Proposal by considering the budget framework PMO/End-User – prepares their respective WFP for their different PPA’s as annex to Budget call. Procuring Entity’s Budget Proposal embodies the agency thrusts and the resources needed to produce the key services it delivers to the public. Procurement planning should be done within this budgetary context, reflecting the Procuring Entity’s priorities and objectives for the budget period.
  • 29. Planning & budgeting linkages The WFP or the Work and Financial Plan  Contains the initial list of projects/requirements of each PMO/End-User unit and the corresponding estimated budgetary requirement.  Submitted by the PMOs or end-user units to the PE’s Budget Office on or about May of each year, to coincide with the submission of their respective budget proposals. This will be evaluated and included in the PE’s Budget Proposal .  This will support the Budget Proposal submitted to DBM and becomes the basis for the proposed PPMP. The Budget Office shall furnish a copy of the WFP’s and proposed PPMP to the BAC Sec for the consolidation of the initial list of items/projects for procurement into the proposed APP.
  • 30. Planning & budgeting linkages  When GAA becomes final (Nov. - Dec.), PMO’s/End-User must refine the proposed PPMP.  Within 15 days from issuance of the Agency Budget Matrix (ABM) during the 1st quarter of the fiscal year, PMO’s/End-User shall finalize the PPMP’s to reflect the budgetary allocation for their respective PPAs as provided in the ABM. The final PPMPs shall be submitted to the BAC Sec for the finalization of the proposed Procuring Entity’s APP to be submitted to the HOPE for confirmation or approval.
  • 31. Preparation of the Project Procurement Management Plan (PPMP) What is a Project Procurement Management Plan (PPMP)?  A Project Procurement Management Plan or PPMP, which is a component of the Project Management Plan, deals primarily with: a.planning for the procurement of project requirements; b.bidding or procurement strategy; c.source selection; d.delivery and payment schedules; e.contract administration; f.contract termination; and g.other major milestones; in an effort to obtain goods, infrastructure and services from suppliers, contractors and consultants.
  • 32. Preparation of the Project Procurement Management Plan (PPMP)  The PPMP serves as a guide document in the procurement and contract implementation process, as well as a vital reference in procurement monitoring.  It serves as an important tool in resource and financial management, allowing the Procuring Entity the flexibility to optimize the utilization of scarce resources.  Well-planned procurement will significantly minimize the practice of doing short-cuts to ensure that the Procuring Entity is able to purchase its requirements for the delivery of public services.
  • 33. Preparation of the Project Procurement Management Plan (PPMP) Developing the Project Requirements: The development of the project requirements should be done during the preparation of the proposed PPMP. At this stage of the procurement planning process, the PMO or end-user unit must: a. Identify the need of the PMO or end-user unit What is the purpose of the procurement? What are the problem/s or needs that the project or procurement aims to address?
  • 34. Preparation of the Project Procurement Management Plan (PPMP) Developing the Project Requirements: b. Identify the alternative solutions, products, and services. What alternative solutions to the problem/s or need/s are available in the market? What is the profile of the supply market? Are they easily obtainable? How much is the cost of each alternative? The PMO or end-user unit should conduct the market research at this point, and gather as much information about the Goods, Services or expertise required. At the end of this activity, it should know the market or the industry well enough to make an informed choice.
  • 35. Preparation of the Project Procurement Management Plan (PPMP) Developing the Project Requirements: c. Compare the alternatives (consider qualitative and quantitative factors) Consider how the PMO or end-user unit would rate the various alternatives in terms of the following: i. Value for money The concept of value for money is not restricted to price alone. In addition to costs, other considerations are non cost factors like suitability or fitness to the purpose, quality, among others. In comparing costs, all relevant costs should be considered, e.g., acquisition costs, life-cycle costs (including maintenance and operating costs for goods and infrastructure, spare parts of goods, etc.).
  • 36. Preparation of the Project Procurement Management Plan (PPMP) Developing the Project Requirements: ii. Risk assessment and management Some risks that may be identified are: obsolescence of equipment, availability of support services, capacity of contractors to implement the project. It is recommended, especially for high- technology, complex, or high value procurement, that the PMO or end-user unit identifies the risks involved and come up with its own risk management plan. Or the bidders could be required to submit, as part of their technical document, a risk assessment and risk management plan.
  • 37. Preparation of the Project Procurement Management Plan (PPMP) Developing the Project Requirements: iii. Government policies that have an impact on the project or procurement Are there any restrictions on the procurement contemplated? What relevant government policies should be considered in determining the goods or services that will be purchased? iv. Other relevant factors that may be identified by the PMO or end-user unit.
  • 38. Preparation of the Project Procurement Management Plan (PPMP) Developing the Project Requirements: iii. Government policies that have an impact on the project or procurement Are there any restrictions on the procurement contemplated? What relevant government policies should be considered in determining the goods or services that will be purchased? iv. Other relevant factors that may be identified by the PMO or end-user unit.
  • 39. Preparation of the Project Procurement Management Plan (PPMP) Writing the Technical Specifications, Scope of Work (SOW) and Terms of Reference (TOR): The Technical Specifications (for Procurement of Goods), Scope of Work (for Services and Infrastructure Projects) or Terms of Reference (for Consulting Services) is the document that provides the detailed description of the deliverables of the Supplier, Contractor or Consultant.
  • 40. Preparation of the Project Procurement Management Plan (PPMP) Writing the Technical Specifications, Scope of Work (SOW) and Terms of Reference (TOR): The following guidelines are, considered helpful in writing the TS/SOW/TOR:  Quality Assurance actually starts at this stage of the procurement cycle, considering that the deliverables are decided at this time. It is therefore important that all stakeholders are consulted, and the actual requirements of the PMO or end-user unit are determined and put in writing.  If the procurement is complex, highly technical, or high value, and the Procuring Entity does not have sufficient technical proficiency, it would be prudent to engage the services of technical experts who will serve as consultants in the preparation of the TS/SOW/TOR.
  • 41. Preparation of the Project Procurement Management Plan (PPMP) Writing the Technical Specifications, Scope of Work (SOW) and Terms of Reference (TOR): The following guidelines are, considered helpful in writing the TS/SOW/TOR:  In engaging these consultants, the Procuring Entity shall follow the procedures for procurement of consulting services. Moreover, care should be taken that possible conflict of interest is avoided; that is, the consultant/s engaged should not be connected with the prospective bidders/contractors, and are barred from being engaged by the latter for any purpose related to the procurement at hand.
  • 42. Preparation of the Project Procurement Management Plan (PPMP) Writing the Technical Specifications, Scope of Work (SOW) and Terms of Reference (TOR): The following guidelines are, considered helpful in writing the TS/SOW/TOR:  The description should be generic and flexible, not product-specific or seemingly tailored for a particular brand, product, contractor or consultant, unless the procurement involves products or services that have intellectual property rights attached to it, or are exclusively offered by a single source, and there are no suitable substitute products or services.
  • 43. Preparation of the Project Procurement Management Plan (PPMP) Writing the Technical Specifications, Scope of Work (SOW) and Terms of Reference (TOR): The following guidelines are, considered helpful in writing the TS/SOW/TOR:  If the procurement involves products or services that have intellectual property rights attached, or are exclusively offered by a single source without any suitable substitute, then the PMO or end-user unit must be able to satisfactorily justify the need for such a product or service. The description should be clear and unambiguous, to avoid confusion and to facilitate the evaluation process. It is noted that the TS/SOW/TOR is also the basis of the evaluation or, when applicable, the testing parameters.
  • 44. Preparation of the Project Procurement Management Plan (PPMP) Writing the Technical Specifications, Scope of Work (SOW) and Terms of Reference (TOR): The following guidelines are, considered helpful in writing the TS/SOW/TOR:  Considering that planning is done sometime before actual procurement and even farther from the date of actual delivery or project implementation, changes in technology or changes in the concerned industry or field of expertise should already be taken into account in writing the TS/SOW/TOR.  This will allow the Procuring Entity to procure the latest products and/or services available in the market.
  • 45. What is an ABC? The ABC refers to the budget for the contract duly approved by the Head of the Procuring Entity, as provided for in the GAA and/or continuing appropriations, in the case of NGAs; the corporate budget for the contract approved by the governing board, pursuant to E.O. No. 518 series of 1979 in the case of GOCCs and GFIs, and R.A. 8292 in the case of SUCs; and the budget approved by the Sanggunian in the case of LGUs. (IRR-A Section 5)
  • 46. What is an ABC? The ABC, insofar as National Government Agencies are concerned, refers to the budget for the contract duly approved by the Head of the Procuring Entity which is contained in the Agency Budget as reflected in the GAA or to be proposed in succeeding GAAs. Thus, the ABC referred to in the R.A. 9184 and its IRR-A basically refers to the proposed budget for the project approved by the Head of the Procuring Entity based on the APP as consolidated from various PPMPs. (GPPB Resolution 011- 2005 dated 26 May 2005)
  • 47. Determining the Approved Budget for the Contract (ABC): In determining the ABC, the PMO or end-user unit has to consider several factors, namely: a. the appropriation for the project or procurement (whether taken from the current year’s appropriations or continuing appropriations), b. the market price of the goods and/or services being procured, inflation and cost of money which are directly related to the procurement time table.
  • 48. FORMAT OF THE PPMP The PPMP shall contain the following information: a.The name of the project/procurement; b.General description of the project/procurement; c.The extent/size of contract scopes/packages; (This refers to the general description of the lot to be included in a particular contract, i.e. the goods, infrastructure project or services, or a combination of any two or three of these types of procurement, including quantities where applicable.)
  • 49. FORMAT OF THE PPMP The PPMP shall contain the following information: d.The procurement methods to be adopted, and indicating if the procurement tasks are to be outsourced as provided in Section 53(e) of the IRR-A; e.The time schedule for each procurement activity; and f.The ABC.
  • 50. Preparation of the Annual Procurement Plan (APP) The APP is the document that consolidates the various PPMPs submitted by the various PMOs and end-user units within the Procuring Entity. It reflects the entirety of the procurement activities that will be undertaken by the Procuring Entity within the calendar year. The APP is prepared by the BAC through the BAC Secretariat upon submission by the PMOs and end-user units of their respective PPMPs and finalized after the ABM has been approved by the DBM.
  • 51. Preparation of the Annual Procurement Plan (APP) The APP shall subsequently be re-submitted by the BAC for approval to the Head of the Procuring Entity or a second-ranking official designated by the Head of the Procuring Entity to act on his behalf. In preparing the APP, the BAC shall take into consideration the following factors: a. The APP should include all procurement activities planned for the year. The approved APP shall be the basis for the Procuring Entity’s procurement, and only those projects / procurement included therein shall be undertaken.
  • 52. Preparation of the Annual Procurement Plan (APP) b. The APP shall include only those procurements that are considered crucial to the efficient discharge of governmental functions. The IRR-A considers a procurement crucial to the efficient discharge of governmental functions if: i. it is required for the day-to-day operations of the Procuring Entity; or ii. it is in pursuit of the principal mandate of the Procuring Entity concerned. c. The APP shall include provisions for foreseeable emergencies based on historical records. The BAC, through the BAC Secretariat, shall include therein a lump sum to cover for these emergencies or contingencies, which amount shall not be more than four percent (4%) of the Procuring Entity’s total appropriations for MOOE. d. Scheduling of procurement activities should be done in such a manner that the BAC and the other offices/units in the Procuring Entity that are involved in the procurement process are able to efficiently manage the conduct of procurement.
  • 53. What is a Procurement Strategy?  The procurement strategy refers to the approach that will be adopted by the BAC in the procurement of the goods, infrastructure projects and consulting services included in the APP.  It reflects the entirety of the procurement activities that will be undertaken by the Procuring Entity within the calendar year.  In the review and consolidation of the PPMPs, the BAC will be able to determine the extent of diversity, quantities, quality, cost, the supply market, and other characteristics of the Procuring Entity’s requirements for the year.  The profile of the procurement is a major determinant in the choice of procurement strategy to be employed, as well as in the scheduling of procurement activities.
  • 54. What is a Procurement Strategy?  There may be common requirements for the various PPMPs. For example, three projects require the purchase of five (5) units of laptop computers for each project office, or a total of fifteen (15) laptop computers. Obviously, it will be more cost effective and efficient if the BAC will procure the 15 laptop computers in one bidding exercise and as one bid lot.  The individual PPMPs sometimes reflect a mix of procurement types, for example, an ICT project might involve the procurement of goods (e.g., workstations, network equipment and peripherals), procurement of civil works (e.g., the installation of cables might involve the repair of some offices and other related civil works) and procurement of consulting services (e.g., design and development of information systems).
  • 55. What is a Procurement Strategy?  In similar cases, the BAC will have to exercise judgment in determining the bid lots and contract package.  There are two approaches to this case: 1. the project could be bid out as one package, or 2. it could be divided into several bid lots (i.e. supply of hardware, supply and installation of cables, design and development of information systems, and repair of facilities).  There are advantages and disadvantages to both approach, and the BAC, through the help of the TWG and the Secretariat, shall determine which is the best option for the Procuring Entity.
  • 56. What is a Procurement Strategy?  In IRR-A, Section 5(p), in case of projects involving mixed procurements, the nature of the procurement, i.e. goods, infrastructure projects, or consulting services, shall be determined based on the primary purpose of the project.  This is helpful in determining which type of procurement procedure to apply. However, there may be instances when the PMO, end-user unit or the Procuring Entity itself may have difficulty determining or agreeing upon the primary purpose. In these cases, ascertaining the component with the highest price may be useful as an indicator of purpose, though not necessarily as a determining factor.
  • 57. Format of the APP The BAC may prepare three APPs, one each for Goods, Infrastructure Projects, and Consulting Services or a consolidated APP for all procurement activities. The APP shall contain the following information: a. Name of the project/procurement; b. PMO or end-user unit; c. General description of the project/procurement (general description of requirements and quantities, where applicable); d. The procurement methods to be adopted, and indicating if the procurement tasks are to be outsourced as provided in Section 53(e) of the IRR-A; e. The time schedule for each procurement activity; and f. The ABC.
  • 58. PE shall prepare its proposed budget for the succeeding calendar year The end-user units of the PE shall prepared their respective PPMP The PPMP shall be submitted to PE budget office for evaluation, if warranted, include it in the PE budget proposal for approval by the HOPE PE budget office shall furnish the PE budget proposal as well as the PPMP to the BAC Secretariat for its review and consolidation into proposed APP Final GAA, corporate budget, or appropriation ordinance The End-user units shall revise and adjust the PPMP to reflect the budgetary allocation for their respective PAP’s. The revised PPMP shall be submitted to the BAC, for finalization and mode of procurement under the proposed APP. (The APP shall bear the approval of the HOPE or its designated representative) Updating of individual PPMP and the consolidated APP for each PE shall be undertaken every 6 months or as often as may be required by the HOPE.
  • 59. SECTION 7 – PROCUREMENT PLANNING & BUDGETING • All procurement shall be within the Approved Budget of the PE • No procurement shall be undertaken unless it is in accordance with the approved APP of the PE
  • 60. Major functions of the Property and Supply Division
  • 61. Major Functions of the Property & Supply Div.  Prepares Agency Procurement Request (APR) for all items to be procured from the DBM-PS  Accept deliveries of supplies, materials, and equipment based on the APR, Purchase Order (P.O), Contract, and request for the conduct of the inspection  Issues and distributes available supplies, materials, and equipment to requesting offices of the Procuring Entity.  Prepares and maintains Inventory Custodian Slip (ICS) for all inventory items, Report of Supplies and Materials Issued (RSMI), Stock Cards for supplies and materials and Property Card for all Property, Plant and Equipment (PPE)
  • 62. Major Functions of the Property & Supply Div.  Prepares Acknowledgement Receipt of Equipment (ARE) for all (PPE)  Conduct physical inventory for all PPE and consolidate the same for the preparation of Annual Inventory Report  Disposes waste materials and all unserviceable equipment in accordance with applicable laws, rules, and regulations.  Issues clearance from property accountability of all officials and employees  Maintains and updates master lists of inventories of all PPE and inventory items
  • 63. THE BIDS & AWARDS COMMITTEE (Procurement)
  • 64. The PhilGEPS (Philippine Government Electronic Procurement Systems) A central Portal that serve as the primary source of information on all government procurement.
  • 65. Main features of PhilGEPS • The Electronic Bulletin Board Centralized electronic bulletin board for posting procurement opportunities, awards, results of bidding and other related information. • Registry of Manufacturers, Suppliers, Distributors, Contractors, and Consultants • The Electronic Catalogue PE shall procure common – use goods, supplies, materials and equipment from the Electronic Catalogue of PhilGEPS
  • 66. *Section 364 – The Committee on Awards There shall be in every province, city or municipality a Committee on Awards to decide the winning bids and questions on awards on procurement and disposal of property
  • 67. BAC Composition The Head of the Procuring Entity shall designate at least five (5) but not more than seven (7) members to the BAC
  • 68. BAC Composition for NGAs, departments, bureaus, offices, judicial and legislative branches, commissions, SUCs, GOCCs, & GFIs Regular Members: Chairman, who is at least a third ranking permanent officials of the PE An officer, who is at least a fifth ranking permanent officials who shall represents the legal / admin. Area of PE. (bureaus, offices, BAC members shall be at least third ranking permanent personnel) An officer, who is at least a fifth ranking permanent officials who shall represents the finance area. (bureaus, offices, BAC members shall be at least third ranking permanent personnel)
  • 69. BAC Composition for NGAs, departments, bureaus, offices, judicial and legislative branches, commissions, SUCs, GOCCs, & GFIs Provisional Members: An officer who has technical expertise relevant to the procurement at hand A representative from the end user unit who has knowledge of procurement laws and procedures The Chairman and the Vice-Chairman shall also be designated by the HOPE. Moreover, the Vice-Chairman shall be a regular member of the BAC.
  • 70. BAC Composition for Local Government Units (LGU) • One representative each from the regular offices under the Office of the Local Chief Executive; and • A representative from the end-user unit The HOPE may designate alternate members to the BAC whenever their principals are absent TERMS OF OFFICE – 1 YEAR (RENEWABLE)
  • 71. Sec. 354 (RA 7160) The Committee on Awards shall be composed of the Local Chief Executive as Chairman; Sec.11.2.5 (RA 9184) In no case shall the HOPE and/or the approving authority be the Chairman or a member of the BAC
  • 72. FUNCTIONS OF THE BAC 1. Advertise the invitation to bid/request for exp. Of interest; 2. Conduct pre-proc. and pre-bid conferences; 3. Determine the eligibility of bidders; 4. Receive bids and conduct evaluation of bids; 5. Undertake post-qualification proceedings; 6. Receive motion for reconsideration; 7. Recommend awards of contract to the HOPE ; 8. Creation of Technical Working Group (TWG); 9. Responsible for ensuring that the PE abides by the standard set forth by the Act and this IRR;
  • 73. Section 13 - Observers 1. Commission on Audit (COA) Representative 2. At least one (1) shall come from a duly recognized private group in a sector relevant to the procurement at hand, for example: a) For Infrastructure projects, national associations of constructors duly recognized by the Construction Industry of the Philippines (CIAP), such as but not limited to the following: • Philippine Constructors Associations, Inc.; • Nat’l Constructors Assoc. of the Phil., Inc.; & • Phil. Institute of Civil Engineers(PICE)
  • 74. Section 13 - Observers c) For consulting services, a project-related professional organization accredited or duly recognized by the Professional Regulation Commission or the Supreme Court, such as but not limited to: • PICE; • Phil. Inst. Of Certified Public Accountants; • Confederation of Filipino Consulting Organizations; and b) For goods, a specific relevant chamber-member of the Philippine Chamber of Commerce and Industry. 3. Non-government organization (NGO)
  • 75. FUNCTIONS & RESPONSIBILITIES OF THE BAC SECRETARIAT 1. Provide administrative support to the BAC; 2. Organize and make all arrangement for the BAC meetings; 3. Prepare minutes of meetings and resolutions of the BAC; 4. Take custody of procurement documents and records; 5. Distribution of BidDocs to the interested bidders; 6. Advertise opportunities, incl. BidDoc,and notice of awards; 7. Managing the procurement processes; 8. Consolidate PPMPs 9. Act as the central of communications for the BAC with end users, PMOs, other units, and providers of services & public
  • 76. The HOPE shall ensure that the members of the BAC and TWG shall give UTMOST PRIORITY to BAC assignments over all other duties and responsibilities, until the requirements for the said assignments at hand are completed.
  • 77. AVAILABILITY OF BIDDING DOCUMENTS For the procurement of goods and infrastructure projects From the time the Invitation to Bid (ITB) is first advertised or posted until the deadline for the submission and receipt of bids. For the procurement of consulting services From the time the Request for Expression of Interest is first advertised until the deadline for the eligibility check, and the Bidding Documents, from the determination of the short list until the deadline for the submission and receipt of bids.
  • 78. Bidders may be asked to pay for the Bidding Documents to recover the cost of its preparation and development
  • 79. • Agency’s website • PhilGEPS Bidding Documents shall be posted at: Prospective bidders may download the Bidding Documents from any of the said websites; provided that, bidders shall pay the fees for the Bidding Documents upon submission of their bids. • Conspicuous places • Newspaper; if applicable
  • 80. • (Purchase Request) Reference to brand names shall not be allowed • No aspects of the Bidding Documents shall be divulged or released to any prospective bidder or person having direct or indirect interest in the project to be procured, or to any party, except those officially authorized in the handling of the documents Points to Remember
  • 81. SECTION 20 - Pre-Procurement Activities 1. Confirm the description and scope of the contract, the ABC, and contract duration. 2. Ensure that the procurement is in accordance with the project and annual procurement plans; 3. Determine the readiness of the procurement at hand 4. Review, modify, and agree on the criteria for eligibility, screening, evaluation and post-qualification 5. Review and adopt the procurement schedule, incl. deadlines, and timeframes for the different activities; and 6. Reiterate and emphasize the importance of confidentiality
  • 82. The holding of a pre-procurement conference may not be required for: Procurement of Goods costing Two Million Pesos (Php2, 000,000.00) and below Infrastructure Projects costing Five Million Pesos (Php5, 000,000.00) and below Consulting Services costing One Million (Php1, 000,000.00) and below
  • 83. SECTION 2 – Pre-bid Conference For contracts to be bid with an ABC of One Million Pesos (P1, 000, 000.00) or more, the BAC SHALL CONVENE at least (1) pre-bid conference to clarify, and/or explain any of the requirements, terms, conditions, and specifications stipulated in the Bidding Documents. P1M Pre-bid Conference is required At the discretion of the BAC
  • 84. SECTION 2 – Pre-bid Conference Pre-bid Conference Opening & submission of bidsAt least 12 cd. The minutes of the pre-bid conference shall be recorded and made available to all participants not later than (3) calendar days after the pre-bid conference. Warning! Statement made at the pre-bid conference shall not modify the terms of the BidDocs, unless such statement is specifically identified in writing as an amendments thereto and issued as a Supplemental / Bid Bulletin.
  • 85. Receipt and Opening of Bids Class “A” documents Legal Documents 1. Registration Certificate from SEC, Department of Trade and Industry (DTI) for sole proprietorship, 3. Cooperative Development Authority (CDA) for cooperatives Technical Documents 2. Mayor’s permit where the principal place of business of the prospective bidder is located. 1. Statement of the pros. Bidder of all its ongoing and completed government and private contracts, incl. Contracts awarded but not yet started. 2. Philippine Contractors Accreditation Board (PCAB) for Infrastructure projects Class “B” documents
  • 86. Receipt and Opening of Bids Financial Documents 1. Audit Financial Statement showing total current assets and liabilities. Stamped “RECEIVED” by the BIR 2. NFCC or a commitment from a Universal or commercial bank to extend a credit line. (CLC) 3. Bill of Quantities/ Materials and Bid Form
  • 87. Eligibility Criteria Goods Infrastructure/civil works Consulting services Duly licensed Filipino Duly licensed Filipino Duly licensed Filipino Duly organized partnership (60%) Duly organized partnership (75%) Duly organized partnership (60%) Duly organized corporation (60% Outstanding Capital Stock) Joint venture (75%) /(ownership of the Filipino shall not be less than25%) Duly organized corporation (60% Outstanding Capital Stock) Duly organized cooperatives (60%) Project is under Treaty or International Agreement Duly organized cooperatives (60%) Joint venture (60%) Licensed by PCAB Joint venture (60%) The bidder have completed at least two (2) similar contracts and the aggregate contract shall be equivalent to at least the percentage of the ABC as required. (50% / 25 % for expendable supplies) Constructors Performance Evaluation Summary rating and or certificate of completion and owner’s acceptance of the contract must be satisfactory The largest of these similar contract must be equivalent to atleast half of the percentage of ABC The bidder must have an experience of having completed 10 years from the date of submission and receipt of bids If, NFCC atleast equal to the ABC to be bid; or If, NFCC atleast equal to the ABC to be bid; or If, CLC must be atleast equal to 10% of the ABC to be bid If, CLC must be atleast equal to 10% of the ABC to be bid NFCC = [(current assets minus current liabilities) (K)] minus the value of all going outstanding or uncompleted portions of the project under ongoing projects, including awarded contracts to be started . Where; K= One year or less More than one year – 2 years More than 2 years 10 15 20
  • 88. Submission and Receipt of BidsFirstenvelope Eligibility requirements And technical components Secondenvelope Financial Component Don’t open before the scheduled opening date & time SEALED BAC
  • 89. For the procurement of GOODS Submission and Receipt of Bids Firstenvelope Eligibility requirements And technical components Eligibility requirements The bid security in the prescribed form, amount and validity Technical specifications • production/delivery schedule • manpower requirements; and/or • after-sales services/parts, if applicable Sworn statement • It is not “blacklisted” • all copies submitted are authentic, original, complete and are true and correct • authorizing the HOPE to verify all the documents submitted; • the signatory is the duly authorized representatives • It complies with the responsibilities of a prospective or eligible bidder provided in the PBD; and •It complies with existing laws and standards, in the case of procurement of services For the procurement of CIVIL WORKS For the procurement of CONSULTING SERVICES
  • 90. For the procurement of GOODS Submission and Receipt of Bids Firstenvelope Eligibility requirements And technical components Eligibility requirements The bid security in the prescribed form, amount and validity Project Requirements • Organizational chart for the contract to be bid; • List of contractor’s personnel, to be assigned to the contract to be bid, with their complete qualification experience data; •List of contractor’s equipment units, which are owned, leased, and / or under purchase agreements supported by certification of availability of equipment from the equipment lessor/vendor for the duration of the project; and For the procurement of CIVIL WORKS For the procurement of CONSULTING SERVICES Sworn statement • It is not “blacklisted” • all copies submitted are authentic, original, complete and are true and correct • authorizing the HOPE to verify all the documents submitted; • the signatory is the duly authorized representatives • It complies with the responsibilities of a prospective or eligible bidder provided in the PBD; and •It complies with existing laws and standards, in the case of procurement of services
  • 91. For the procurement of GOODS Submission and Receipt of Bids Firstenvelope Eligibility requirements And technical components The bid security in the prescribed form, amount, and validity period; Organizational chart for the contract to be bid; List of completed and on-going projects; For the procurement of CIVIL WORKS For the procurement of CONSULTING SERVICES Approach, work plan, and schedule List of key personnel to be assigned to the contract to be bid, with their complete qualification and experience data; and Sworn statement • It is not “blacklisted” • all copies submitted are authentic, original, complete and are true and correct • authorizing the HOPE to verify all the documents submitted; • the signatory is the duly authorized representatives • It complies with the responsibilities of a prospective or eligible bidder provided in the PBD; and •It complies with existing laws and standards
  • 92. Submission and Receipt of Bids Secondenvelope Financial Information/ documents
  • 93. Submission and Receipt of Bids Bids shall be received by the BAC on the date, time, and place specified in the ITB/RFEI. Bids incl. eligibility requirements submitted after the deadline SHALL NOT BE ACCEPTED by the BAC.
  • 94. Bid Security All bids shall be accompanied by a bid security Bid security shall be in an amount equal to a percentage of the ABC in accordance with the following: FORM OF BID SECURITY AMOUNT OF BID SECURITY (Equal to Percentage of the ABC) a) Cash or cashier’s/manager’s check issued by a Universal or Commercial Bank Two per cent (2%) b) Bank draft/ guarantee or irrevocable letter of credit issued by a Universal or Commercial Bank; provided, however, that it shall be confirmed or authenticated by a Universal or commercial Bank, if issued by a foreign bank. c) Surety bond callable upon demand issued by a surety or insurance company duly certified by the Insurance Commission as authorized to issue such security Five per cent (5%) d) Any combination of the foregoing Proportionate to share of form w/ respect to total amount of security
  • 95. When the Bid Security shall be returned? After the bidder with the LCRB or HCRB has signed the contract and furnish performance security Bidders declared by the BAC as failed or post-disqualified and upon submission of a written waiver of their right to file a motion for reconsideration and / or protest.
  • 96. Bid Validity Shall in no case exceed the period of one hundred twenty (120) c.d. from the date of opening of bids.
  • 97. Bid Opening The BAC shall open the bids at the; Time, Date, Place specified in the BidDocs
  • 98. The BAC shall adopt a procedure ensuring the; Integrity, Security, confidentiality
  • 99. Preliminary Examination of Bids The BAC shall check the submitted documents of each bidder against a checklist required documents to ascertain if they are all present Using a non-discretionary “PASS/FAIL” criterion Firstenvelope Eligibility requirements And technical components
  • 100. Preliminary Examination of Bids The BAC shall check the submitted documents of each bidder against a checklist required documents to ascertain if they are all present Using a non-discretionary “PASS/FAIL” criterion SecondEnvelope Financial Component SAMPLE CHECKLIST
  • 101. Ceiling of Bid Prices The ABC shall be the upper limit or ceiling for acceptable bid prices
  • 102. Bid Evaluation for goods/Infrastructure The BAC shall immediately conduct a detailed evaluation of bids using non discretionary criteria in considering the following: Completeness of the bid. Responsive bill of Quantities/Materials Non-responsive bill of Quantities/Materials Responsive bill of Quantities/Materials (free) Arithmetical corrections
  • 103.  The BAC shall evaluate on an equal footing to ensure fair and competitive bid comparison. For this purpose, all bidders shall be required to include the cost of all taxes.  In case of discrepancies between: AREAS OF DISCREPANCIES PREVAILING AREA Bid price in figures Bid price in words Bid price in words Total price per item Unit price for the item as extended or multiplied by the quantity of that item Unit price for the item as extended or multiplied by the quantity of that item Stated total price Actual sum of prices of component items Actual sum of prices of component items Unit cost in the detailed estimate Unit cost in the bill of quantities Unit cost in the bill of quantities
  • 104.  Bids shall be ranked in the ascending order of their total calculated bid prices, as evaluated and corrected for computational errors. WARNING! total calculated bid prices, as evaluated and corrected for computational errors and other modifications, which exceed the ABC shall be disqualified.  After all bids have been received, opened, examined, evaluated, and ranked, the BAC shall prepare the corresponding abstract of bids. All members of the BAC shall sign the AoB and attach thereto all the bids with the corresponding bid securities and the minutes of the proceedings of the bidding. The Abstract shall contain the following:  Name of the contract and its location, if applicable  Time, date, and place of bid opening; and  Names of bidders and their corresponding bid prices arranged from lowest to highest, the amount of bid security and the name of the issuing entity
  • 105. REMEMBER! From submission and receipt of bids until the approval by the HOPE of the ranking of short listed bidders, those that have submitted their bids are PROHIBITED from making any communication with any BAC member, including its staff and personnel, as well as its BAC secretariat and TWG, regarding matters connected to their bids. However, the BAC, through its Secretariat, may ask in writing the bidder for clarification of its bid. All responses to requests for clarification shall be in writing.
  • 106. Bid Evaluation of short listed bidders for consulting services The purpose of bid evaluation is to determine the Highest Rated Bid (HRB) using the following steps: Quality-Based Evaluation Procedure 1. A two-stage procedure shall be adopted whereby each consultant shall be required to submit his technical and financial proposals simultaneously in separate sealed envelopes. 2. After receipt of bids, the technical proposals shall first be opened and evaluated. The BAC shall rank the consultants in descending order based on the numerical ratings of their technical proposals and identify the HRB. Provided, however, that the HRB shall pass the minimum score indicated in the Bidding Documents.
  • 107. Bid Evaluation of short listed bidders for consulting services 3. The HOPE shall approve or disapprove the recommendations of the BAC within two (2) calendar days after receipt of the results of the evaluation from the BAC. 4. After approval by the HOPE of the HRB, its financial proposal shall then be opened. The BAC shall, within three (3) cd. Notify and invite the consultant with the HRB for the opening of financial proposal for the purpose of conducting negotiations with the said consultants. In the letter of notification, the BAC shall inform the consultant of the issues in the technical proposal the BAC may wish to clarify during the negotiations. 5. The total contract amount shall not exceed the ABC as stated in the BidDocs.
  • 108. Bid Evaluation of short listed bidders for consulting services (Graphic Presentation) Consultant A Consultant B Consultant C Technical Proposal Technical Proposal Financial Proposal Financial Proposal Technical Proposal Technical Proposal Financial Proposal Financial Proposal Technical Proposal Technical Proposal Financial Proposal Financial Proposal BAC THE BAC shall open the Technical Proposals Technical Proposal of Consultant A Technical Proposal of Consultant A Technical Proposal of Consultant B Technical Proposal of Consultant B Technical Proposal of Consultant B Technical Proposal of Consultant B Arranged in Descending order based on numerical rating Consultant A – 85% Consultant A – 85% Consultant B– 97.50% Consultant B– 97.50% Consultant C – 80 % Consultant C – 80 %
  • 109. Bid Evaluation of short listed bidders for consulting services (Graphical Presentation) Arranged in Descending order based on numerical rating Consultant A – 85% Consultant A – 85% Consultant B– 97.50% Consultant B– 97.50% Consultant C – 80 % Consultant C – 80 % HRB HEAD OF THE PROCURING ENTITY Within two (2) days: APPROVE DISAPPROVE The recommendations of the BAC BIDS & AWARDS COMMITTEE After 3 days, the BAC shall notify and invite the consultant with HRB for the opening of the And for the NEGOTIATION Financial proposal of Consultant B Financial proposal of Consultant B
  • 110. Bid Evaluation of short listed bidders for consulting services (Graphical Presentation) FINANCIAL PROPOSALS BB Opened by the BAC AA CC Return to the respective consultants UNOPENED
  • 111. Bid Evaluation of short listed bidders for consulting services The purpose of bid evaluation is to determine the Highest Rated Bid (HRB) using the following steps: Quality-Cost Based Evaluation Procedure 1. The technical proposal together with the financial proposal shall be considered in the evaluation of consultants. The technical proposals shall be evaluated first. The financial proposal of the consultants WHO MEET THE MINIMUM TECHNICAL SCORE shall then be opened. 2. The financial and technical proposal shall be given corresponding weights with the financial proposal given a minimum weight of fifteen percent (15%) up to a maximum of forty percent (40%). The weight of the technical criteria shall be adjusted accordingly such that their total weight in percent together with the weight given to the financial proposal shall add to one hundred percent (100%).
  • 112. Bid Evaluation of short listed bidders for consulting services The exact weight SHALL BE APPROVED BY THE HOPE upon the recommendation of the BAC and indicated in the BidDocs. The BAC shall rank the consultants in descending order based on the combined numerical ratings of their technical and financial proposals and identify the HRB. 3.The HOPE shall approve and disapprove the recommendations of the BAC within two (2) cd after receipt of the results of the evaluation from the BAC. 4.After approval by the HOPE of the HRB, the BAC shall within three (3) cd, notify and invite the consultant with the HRB for negotiation.
  • 113. Bid Evaluation of short listed bidders for consulting services (Graphic Presentation) Consultant A Consultant B Consultant C Technical Proposal Technical Proposal Financial Proposal Financial Proposal Technical Proposal Technical Proposal Financial Proposal Financial Proposal Technical Proposal Technical Proposal Financial Proposal Financial Proposal BAC THE BAC shall open the Technical Proposals Technical Proposal of Consultant A Technical Proposal of Consultant A Technical Proposal of Consultant B Technical Proposal of Consultant B Technical Proposal of Consultant C Technical Proposal of Consultant C Afterwhich, the BAC shall open the Financial Proposals Financial Proposal of Consultant A Financial Proposal of Consultant A Financial Proposal of Consultant B Financial Proposal of Consultant B Financial Proposal of Consultant C Financial Proposal of Consultant C
  • 114. Bid Evaluation of short listed bidders for consulting services (Graphic Presentation) THE BAC shall open the Technical Proposals Technical Proposal of Consultant A Technical Proposal of Consultant A Technical Proposal of Consultant B Technical Proposal of Consultant B Technical Proposal of Consultant C Technical Proposal of Consultant C Afterwhich, the BAC shall open the Financial Proposals Financial Proposal of Consultant A Financial Proposal of Consultant A Financial Proposal of Consultant B Financial Proposal of Consultant B Financial Proposal of Consultant C Financial Proposal of Consultant C + + + WEIGHTS Technical (dependent to the weight of the Financial) ? Financial weights is within 15 % - 40 % 15 % - 40 % TOTAL WEIGHT 100% The highest rating after adding the scores of Technical and Financial proposals shall be recommended to the HOPE for HRB.
  • 115. Bid Evaluation of short listed bidders for consulting services (Graphical Presentation) Rating (Technical + Financial) Consultant A – 85% Consultant A – 85% Consultant B– 97.50% Consultant B– 97.50% Consultant C – 80 % Consultant C – 80 % HRB HEAD OF THE PROCURING ENTITY Within two (2) days: APPROVE DISAPPROVE The recommendations of the BAC BIDS & AWARDS COMMITTEE After 3 days, the BAC shall notify and invite the consultant with HRB for NEGOTIATION
  • 116. Criteria in evaluating technical proposals of consultants • Quality of personnel to be assigned to the project which covers suitability of key staff to perform the duties of the particular assignments and general qualifications and competence including education and training of the key staff • Experience and capability of the consultant which include records of previous engagement and quality of performance in similar and in other projects; relationship with previous and current clients; and overall work commitments, geographical distribution of current/impending projects and attention to be given by the consultant • Plan of approach and methodology with emphasis to clarity, feasibility, innovativeness, and comprehensiveness of the plan approach, and the quality of interpretation of project problems, risks and suggested solutions
  • 117. REMEMBER! All participating short listed consultants shall be furnished the results (ranking and total scores only) of the evaluation after the approval of the HOPE of the ranking. Said results shall be posted in the PhilGEPS and the website of the PE
  • 118. What should be discussed in the Negotiation stage? • Discussion and clarification of the TOR and Scope of Services; • Discussion and finalization of the methodology and work program proposed by the consultant; • Consideration of appropriateness of qualifications and pertinent compensation, number of man-months and the personnel to be assigned to the job, taking note of over-qualified personnel, to be commensurate with the compensation of personnel with the appropriate qualifications, and schedule of activities; • Discussion on the services, facilities and data, if any, to be provided by the PE concerned; • Discussion of financial proposal submitted by the consultant; and • Provisions of the contract Shall be completed within ten (10) calendar days. There should be no replacement of key personnel before the awarding of contract.
  • 119. Objective and process of Post-qualification • The LCB/HRB shall undergo post-qualification in order to determine whether the bidder concerned complies with and is responsive to all the requirements and conditions as specified in the BidDocs. • Within three (3) cd from receipt by the bidder of the notice from the BAC that the bidder has the LCB or HRB, the bidder shall submit the following requirements to the BAC: 1. Tax clearance; 2. Latest income and business tax returns; 3. Certificate of PhilGEPS registration; and 4. Other appropriate license and permits required by law and stated in the BidDocs.
  • 120. Objective and process of Post-qualification • The post qualification shall verify, validate, and ascertain all statements made and documents submitted by the bidder with the LCB/HRB, using non- discretionary criteria. This criteria shall not be limited to, the following: A. Legal Requirements. To verify, validate, and ascertain licenses, certificates, permits, and agreements submitted by the bidder, and the fact it is not included in any “blacklisted”. B. Technical Requirements. To determine compliance of the goods, infrastructure projects, or consulting services offered with the requirements specified in the BidDocs, including: i. Verification and validation of the bidder’s stated competence and experience, and the competence and experience of the bidder’s key personnel to be assigned to the project, for the procurement of infrastructure projects and consulting services;
  • 121. Objective and process of Post-qualification ii. Verification of availability and commitment, and / or inspection and testing for the required capacities and operating conditions, of equipment to be owned/leased; iii. Verification and/or inspection and testing of the goods/product, after- sales and / or maintenance capabilities, and; iv. Ascertainment of the sufficiency of the bid security as to type, amount, form and wording, and validity period; C. Financial Requirements. To verify, validate and ascertain the bid price proposal of the bidder and, whenever applicable, the required CLC in the amount specified and over the period stipulated in the BidDocs, or the bidder’s NFCC to ensure that the bidder can sustain the operating cash flow of the transaction.
  • 122. If the BAC determines that the bidder with the LCB/HRB passes all the criteria for post-qualification, it shall declare the said bid as the LCRB/HRRB, and recommend to the HOPE the award of contract, however, if the BAC determines that the bidder with the LCB/HRB fails the criteria for post-qualification, it shall immediately notify the said bidder in writing of its post-qualification and the grounds for it. Immediately after the BAC has notify the first bidder of its post- qualification, and notwithstanding any pending request for reconsideration thereof, the BAC shall initiate and complete the same post-qualification process on the bidder with the second lowest LCB/HRB. If the second passes the post- qualification, and provided that the request for reconsideration of the first bidder has been denied, the second bidder shall be post-qualified as the bidder with the LCRB/HRRB. If the second bidder, however, fails the post-qualification, the procedure for post-qualification shall be repeated for the bidder with the next LCB/HRB, and so until the LCRB/HRRB, as the case maybe, is determined for award. The post-qualification process shall be completed in not more than seven (7) cd from the determination of LCB/HRB. In exceptional cases, the post- qualification period may be extended by the HOPE, but in no case shall aggregate period exceed thirty (30) cd.
  • 123. FAILURE OF BIDDING The BAC shall declare the bidding of failure when: • No bids are received; • All Prospective bidders are declared ineligible; • All bids fail to comply with all the bid requirements or fail- post qualification, or, in the case of consulting services, there is no successful negotiations; or • The bidder with the LCRB/HRRB refuses, without justifiable cause, to accept contract, and no award is made in accordance with Section 40 (failure to enter into contract and post – security ) of the act and this IRR
  • 124. In order to determine the reason for the failed bidding, the BAC shall conduct a mandatory review and evaluation of the terms, conditions, and specifications in the BidDocs, including its cost estimates. Based on its findings, the BAC shall revise the terms, conditions, and specifications, and if necessary, adjust the ABC, subject to the required approvals, and conduct a re-bidding with re-advertisement and/or posting. All bidders who have initially responded to the Invitation to Bid/Request for Expression of Interest and have been declared eligible or shortlisted in the previous biddings shall be allowed to submit new bids. The BAC shall observe the same process and set the new periods according to the same rules followed during the previous bidding(s). Should there occur a second failure of bidding, the procuring entity may resort to negotiated procurement.
  • 125. SINGLE CALCULATED/RATED AND RESPONSIVE BID A single calculated/responsive bid shall be considered for award if it falls under any of the following circumstances: • Only one prospective bidder submit a LOI and/or applies for eligibility check, and it meets the eligibility requirements of the criteria, after which it submits a bid which is found to be responsive to the bidding requirements; • More than one prospective bidder submits LOI and/or applies for eligibility check, but only one bidder meets the eligibility requirements of the criteria, after which it submits a bid which is found to be responsive to the bidding requirements; or • If after the eligibility check, more than one bidder meets the eligibility requirements, but only one bidder submits a bid, and its bid is found to be responsive to the bidding requirements.
  • 126. NOTICE AND EXECUTION OF AWARD The BAC shall recommend to the HOPE the award contract to the bidder with the LCRB/HRRB or the SCRB/SRRB after the post-qualification process has been completed. • Resolution of the BAC recommending award; To facilitate the approval of the award, the BAC shall submit the following supporting documents to the HOPE: • Abstract of bids; • Duly approved program of work or delivery schedule and cost estimates; • Document issued by appropriated entity authorizing the procuring entity to incur obligation for a specified contract; and • Other pertinent documents required by existing laws, rules, and/or the procuring entity concerned
  • 127. If the award is approved, the HOPE shall immediately issue the Notice of Award to the bidder with LCRB/HRRB. In the event that the HOPE shall disapprove such recommendation, such disapproval shall be based only on valid, reasonable, and justifiable grounds to be expressed in writing, copy furnished by the BAC. Contract award shall be made within the bid security period provided in Section 28 (bid validity – shall not exceed 120 cd. – the PE can request for extension but the bidder can deny it without forfeiting their bid security). The BAC, through the Secretariat, shall post, within, three (3) cd from the issuance, the Notice of Award in the PhilGEPS, the website of the procuring entity, if any, and any conspicuous place in the premise of the procuring entity
  • 128. CONTRACT SIGNING The winning bidder shall post the REQUIRED PERFORMANCE SECURITY and enter into contract with the procuring entity within (10) cd from the receipt by the winning bidder of the NoA. The procuring entity shall enter into contract within the same period provided that all documentary requirements are complied with, to wit: • Contract Agreement; • Bidding Documents; • Winning bidder’s bid, including proposals submitted; • Notice of Award of Contract;
  • 129. Procedural Steps for the Public Bidding of Goods and Services ( Revised IRR, GPPB Res. 03-2009 ) Pre-Procurement Conf. Advertise/Post ITB Call/Hold Pre-Bid Conference Open Technical (with eligibility documents) Envelope Open Financial Envelope Receive the Two (2) Envelopes Submission of Additional Req. Post-qualify LCB Issue Notice to Proceed Pre-Bid C. at least 12 c.d. before bid opening 1 c.d. 1 c.d. 7 c.d. Within 30 c.d. .Posting – 7 c.d. within 3 c.d. Prepare & Sign Contract 7 c.d. GOCC/GFIs- 15cd Within 10 c.d. Approve Resolution / Issue Notice of Award - LCRB Issue Bidding Documents Evaluate & Rank Bid/s Within 3 c.d.
  • 130. PERIOD OF ACTION ON PROCUREMENT ACTIVITIES Opening of Bids Opening of Bids Award of Contract This procurement process shall not exceed three (3) months All members of the BAC shall be on a “jury duty” type of assignment until the NoA is issued by the HOPE in order to complete the entire procurement process at the earliest possible time.
  • 131. To guarantee the faithful performance by the winning bidder of its obligations under the contract in accordance with the BidDocs, it shall post performance security prior to the signing of contract. PERFORMANCE SECURITY
  • 132. PERFORMANCE SECURITY The performance security shall be in an amount equal to a percentage of the total contract price in accordance with the following schedule: Form of Performance Security Amount of Performance Security (Equal to percentage of the total contract price) a) Cash or cashier’s/manager’s check issued by a Universal or Commercial Bank Goods and Consulting Services – Five percent (5%) Infrastructure Projects – Ten percent (10%) b) Bank draft/guarantee or irrevocable letter of credit issued by a Universal or Commercial bank; provided however, that it shall be confirmed or authenticated by a foreign bank. c) Surety bond callable upon demand issued by a surety / insurance company duly certified by the Insurance commission as authorized to issue such security. Thirty percent(30%) d) Any combination of the foregoing Proportionate to share of form with respect to total amount of security
  • 133. The performance security shall be denominated in Philippine pesos and posted in favor of the procuring entity, which shall be forfeited in the event it is established that the winning bidder is in default in any of its obligations under the contract. The performance security shall remain valid until issuance by the procuring entity of the final Certificate of Acceptance. The performance security may be released by the PE after the issuance of CA, subject to the following conditions: • PE has no claims filed against the contract awardee or the surety company; • It has no claims for labor and materials filed against the contractor; and • Other terms of the contract
  • 134. If the bidder with LCRB/HRRB or the bidder with Single Calculated/Rated Responsive Bid, fails, refuses or is unable to submit documents required or make good its bid by entering into a contract with the procuring entity or post the required Performance Security within the period of 10 cd, the bid security shall be forfeited and with appropriate sanctions, except where such failure, refusal, or inability is through no fault of the said bidder. In case of failure, the BAC shall disqualify the said bidder and shall initiate and complete post-qualification process on the bidder with the second LCB/HRB. This procedure shall be repeated until LCRB/HRRB is determined for award. FAILURE TO ENTER INTO CONTRACT AND POST PERFORMANCE SECURITY
  • 135. The HOPE reserves the right to reject any and all bids, declares a failure to bidding, or not award the contract in the following situations: RESERVATION CLAUSE • If there is prima facie evidence of collusion between:  Appropriate public officers or employees of the procuring entity;  BAC and any of the bidders;  Among the bidders themselves;  Bidder and a third party, including any act which restricts, suppresses, or nullifies or tends to restrict, suppress or nullify competition; • If the BAC is found to have failed in following the prescribed bidding procedures; or
  • 136. • For any justifiable and reasonable grounds where the award of the contract will not redound to the benefits of the GOP, as follows:  If the physical and economic conditions have significantly changed so as to render the project no longer economically, financially, or technically feasible, as determined by the HOPE;  If the project is no longer necessary as determined by the HOPE;  If the source of funds for the project has been withheld or reduced through no fault of the PE. RESERVATION CLAUSE
  • 137. All bid shall be accompanied by a SWORN STATEMENT of the bidder that it is not related to the HOPE, members of the BAC, the TWG, and the BAC secretariat, the head of the PMO or the end-user unit, and the project consultants, by consanguinity or affinity up to the THIRD CIVIL DEGREE. For this reason, relation to the aforementioned persons shall automatically disqualify the bidder from participating in the procurement of contracts of the PE. This apply to thefollowing persons:  If the bidder is an individual or a sole proprietorship, to the bidder himself;  If the bidder is a partnership, to all its officers and members;  If the bidder is a corporation, to all its officers, directors, and controlling stockholders; and DISCLOSURE OF RELATIONS
  • 138. The method of procurement to be used shall be indicated in the approved APP. If the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued, the BAC, through a resolution, shall justify and recommend the change in the mode of procurement to be approved by the HOPE. ALTERNATIVE METHODS OF PROCUREMENT • LIMITED SOURCE BIDDING -Otherwise known as “selective bidding”, is a method of procurement of goods and consulting services that involves direct invitation to bid by the procuring entity from the list of pre-selected suppliers or consultants with known experience and proven capability on the requirements of the particular contract. This alternative mode of procurement may be employed under any of the following conditions:  Procurement of highly specialized types of goods and consulting services whereby only a few suppliers or consultant are known to be available; or  Procurement of major plant components
  • 139. ALTERNATIVE METHODS OF PROCUREMENT • DIRECT CONTRACTING - is also known as “single source procurement”. Is a method of procurement of goods that does not require elaborate bidding documents. The supplier is simply asked to submit a price quotation or a pro-forma invoice together with the conditions of sales. Direct contracting may be resorted to under any of the following conditions:  Procurement of goods of proprietary nature which can be obtained only from the proprietary source;  When the procurement of critical plant components from a specific supplier ;  Those sold by an exclusive dealer or manufacturer.
  • 140. ALTERNATIVE METHODS OF PROCUREMENT • REPEAT ORDER - repeat order, when provided for in the APP, is a method of procurement of goods from the previous winning bidder, whenever there is a need to replenish goods procured under a contract previously awarded through Competitive bidding. Repeat order may be resorted to under any of the following conditions:  Unit prices of the repeat order must be the same as or lower that those in the original contract;  will not result to splitting of contracts, requisitions, or purchase orders;  shall be availed of only within six (6) months from the contract effectivity date stated in the NTP arising from the original contract; and  shall not exceed twenty-five percent (25%) of the quantity of each item in the original contract.
  • 141. ALTERNATIVE METHODS OF PROCUREMENT • SHOPPING - is a method of procurement of goods whereby the PE simply requests for the submission of price quotations for readily available off-the-shelf goods or ordinary/regular equipment to be procured directly from suppliers of known qualifications. Shopping may be employed in any of the following cases: a) when there is an unforeseen contingency requiring immediate purchase: Provided however that the amount shall not exceed the thresholds prescribed. b) Procurement of ordinary or regular office supplies and equipment not available in the procurement service involving an amount not exceeding the thresholds prescribed.
  • 142. TAKE NOTE! “Ordinary or regular office supplies” shall be understood to include those supplies, commodities, or materials, which, depending on the procuring entity’s mandate and nature of operations, are necessary in the transaction of its official businesses, and consumed in the day-to-day operations. However, office supplies shall not include services such as repair, and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services.
  • 143. DOF Classification of LGU’s Maximum Amount (in Philippine Peso) Province City Municipality 1st class 100,000 100,000 50, 000 2nd class 100,000 100,000 50, 000 3rd class 100,000 80, 000 50, 000 4th class 80, 000 60, 000 50, 000 5th class 60, 000 50, 000 50, 000 6th class 50, 000 50, 000 50, 000 THRESHOLDS FOR SHOPPING – (a) a. For NGAs, GOCCs, GFIs, and SUCs - One Hundred Thousand Pesos (P100, 000.00) b. For LGUs, in accordance with the following schedule: In case of barangays - Fifty Thousand Pesos (P50, 000.00)
  • 144. DOF Classification of LGU’s Maximum Amount (in Philippine Peso) Province City Municipality 1st class 500,000 500,000 100, 000 2nd class 500,000 500,000 100, 000 3rd class 500,000 400, 000 100, 000 4th class 400, 000 300, 000 50, 000 5th class 300, 000 200, 000 50, 000 6th class 200, 000 100, 000 50, 000 THRESHOLDS FOR SHOPPING & SVP– (b) a. For NGAs, GOCCs, GFIs, and SUCs - Five Hundred Thousand Pesos (P500, 000.00) b. For LGUs, in accordance with the following schedule: In case of barangays - Fifty Thousand Pesos (P50, 000.00)
  • 145. ALTERNATIVE METHODS OF PROCUREMENT • NEGOTIATED PROCUREMENT - After conduct of mandatory review, the BAC shall revise and agree on the minimum technical specifications, and if necessary, adjust the ABC. However, the ABC cannot be increased by more than twenty percent (20%) of the ABC for the last failed bidding. - The BAC shall invite and engage in negotiations with a sufficient number of suppliers, contractors, or consultants to ensure effective competition. 1. Two – Failed Biddings - is a method of procurement of goods, infrastructures, and consulting services, whereby the PE directly negotiates a contract with a technically, legally, and financially capable supplier, contractor or consultant in any of the following cases.
  • 146. ALTERNATIVE METHODS OF PROCUREMENT - Any requirements, guidelines, documents, clarifications, and other information shall be communicated by the PE to suppliers, etc. On an equal basis. - Following the completion of the negotiations, the PE shall request all suppliers, etc to submit, on a specified date, a best and final offer with respect to all aspects of their proposals. -The procuring entity shall select the successful offer on the basis of such best and final offers. -In all stages of the negotiations, observers shall be invited. 2. Emergency Cases. - In case of imminent danger to life or property during a state of calamity, or when time is of the essence of 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 service and public utilities.
  • 147. ALTERNATIVE METHODS OF PROCUREMENT 3. Agency – to - Agency - Procurement of infrastructure projects, consulting services, and goods from another agency of the GOP, such as the PS – DBM, which is tasked with a centralized procurement of Common-Use supplies for the GOP. 4. Procurement Agent - Procuring entities which may not have the proficiency or capability to undertake a particular procurement, as determined by the HOPE, may request other GOP agencies to undertake such procurement for them, or at their option, result and hire consultants to assist them directly and/or train their staff in the management of the procurement functions.
  • 148. ALTERNATIVE METHODS OF PROCUREMENT 5. Highly Technical Consultants. - Individual consultants hired to do work that is (i) highly technical (ii) primarily confidential where trust and confidence are the primary consideration for the hiring of consultant. Provided, however, shall, at the most, be on six month basis, renewable at the option of the HOPE, but in no case shall exceed the term of 6 months. 6. Defense Cooperation Agreement. - Upon approval by the President of the Philipines, and when the procurement for use by the AFP involves major defense equipment or materials and/or defense-related consultancy services, when expertise required is not available locally, and the Secretary of National Defense has determined that the interests of the country shall be protected by negotiating directly with an agency or instrumentality of another country with which the Philippines has entered into a defense cooperation agreement or otherwise maintains diplomatic relations: Provided, however, that the performance by the supplier of its obligations under the procurement of contract shall be covered by a performance security.
  • 149. ALTERNATIVE METHODS OF PROCUREMENT 7. Small Value Procurement. - Where the procurement does not fall under shopping and the amount does not exceed the thresholds prescribed.  The procuring entity shall draw up a list of at least three (3) suppliers, contractors, or consultants, of known qualifications which will be invited to submit proposals, in the case of goods and infrastructure projects, or curriculum vitae, in the case of consulting services. 8. Lease of Real Property 9. NGO Participation. - When an appropriation law or ordinance earmarks an amount to be specifically contracted out to NGO, the PE may enter into a Memorandum of Agreement with an NGO.
  • 150. ALTERNATIVE METHODS OF PROCUREMENT 10. Community Participation. 11. United Nations Agencies. - Procurement from specialized agencies of the United Nations of any of the following:  Small quantities of-the-shelf goods, primarily in the fields of education and health; and Specialized product where the number of suppliers is limited, such as vaccines or drugs.
  • 151. TERMS AND CONDITIONS FOR THE USE OF ALTERNATIVE METHODS • Except for Limited Source Bidding under section 49 of this IRR, submission of bid securities may be dispensed with. • Performance and warranty security shall be submitted for contract acquired through the alternative methods of procurement except for:  Shopping  Negotiated Procurement: emergency cases, SVP, lease of real property and UN agencies.
  • 153. DELIVERIES Deliveries of supplies must be made by the Supplier/Manufacturer/Contractor within the stipulated period and at the place/s indicated in the purchase order of the contract. In all cases, delivery shall be made within office hours and during working days. Failure to deliver within the prescribed period, the supplier/manufacturer/contractor shall be liable for penalty, usually in the form of liquidated damages specified in the Contract/Purchase Order.
  • 154. LIQUIDATED DAMAGES 1 % of the undelivered items/delays Liquidated damages of the undelivered items in the contract deducted for each day of delay
  • 155. DELIVERIES  All supplies shall be adequately contained, packed, crated, cased, bundled, wrapped, or sealed to prevent damage, spoilage, and loss.  They must be properly labelled and marked in accordance with the minimum requirements of RA 7394 otherwise known as Consumer Act of the Philippines.  Responsibility in case of damage, spoilage, or loss shall be governed by existing laws on the matter unless the purchase order or contract provides otherwise.
  • 156. DELIVERIES  Deliveries shall be made within seven(7) calendar days upon receipt of the order unless otherwise provided in the Purchase Order or contract.  All items delivered SHALL BE RECEIVED BY THE SUPPLY OFFICER/DESIGNATED PROPERTY CUSTODIAN as the case may be. Receiving and signing of the DR and temporary recording of the deliveries shall be subjected to inspection by the Inspectorate Team.
  • 158. INSPECTION Inspection is the process of examining and testing the procured supplies, materials, equipment, and services including raw materials and components to determine their conformity with the contract requirements including all applicable drawings, specifications, and purchase description. What is Inspection?
  • 159. INSPECTION  The inspection of items SHALL BE DONE BY THE INSPECTORATE TEAM, whose members shall be determined and designated by the HOPE.  Inspection shall be done in accordance with the standards and specifications and be conducted in the presence of the suppliers and end-user’s representatives.  The Inspectorate Team and the Supply Officer/Designated Property Custodian SHALL PREPARE AND SIGN the Inspection and Acceptance Report (IAR).
  • 160. TECHNIQUES OF INSPECTION • Inspection by Item - Individual item is checked in conformity with the requirement stated in the specification. This method of inspection is applicable, but not limited to deliveries of equipment and fixed assets. • Inspection by Sampling - Sampling is a process of obtaining information about a group of data having similar purpose or function, usually ten percent (10%) of the total or lot delivery.
  • 161. General Procedures in Conducting Inspection 1. Upon receipt of the request for inspection, check the following documents as their completeness and authenticity. A. Purchase Order & Contract  Date;  PO Number  Name and Address of the Supplier  Supplier’s Acknowledgement or Receipt (date of receipt)  Specifications  Quantity  Unit/Total Price  Availability of fund  Approval of the HOPE or his duly authorized representative
  • 162. General Procedures in Conducting Inspection B. Supplier’s Invoice Delivery Receipt  Pre-numbered and not just typed stamped or hand-written  Date checked against the delivery date stated in the P.O or contract  “RECEIVED” portion Receipt and date of item delivered acknowledged by the supply officer/designated property custodian. C. Conduct inspection and testing procedure when applicable. D. Prepare inspection report immediately and give to the Inspectorate Team and supply officer/designated property custodian for signature.
  • 163. Inspection Procedures for Equipment 1. Examine the equipment as to the physical condition: brand new, second hand, rebuild, or reconditioned. See to it that no defective or old worn out parts are used/attached to the equipment. 2. Take hold of the manual, catalogue or handbook for equipment delivered for reference. All date/information contained thereon should conform with the delivery of the serial number, point of origin, color, and the accessories or tools that go with the equipment. 3. Make a physical count and inspect the unit piece-by-piece or unit-by-unit. Random sampling is not applicable for this type of delivery because you have to request the supplier or his representative to demonstrate the operation of the equipment (test run) in your presence and that of the end- user. Observes the actual performance thereof. 4. Get the warranty card and note down the warranty card number in the original invoice. Check if the serial indicated thereon is the same as that of the delivery.
  • 164. Inspection & Acceptance of Infra Projects 1. The Head/End-user/Implementing Office/Property Officer/etc. must secure copy of the Program of Works prior to the start of the construction. 2. The End-user must seek assistance from the technical person (TWG for the project) to check the materials that are being used during the construction if they are in accordance with the required specifications. 3. The End-user (usually the Head) shall sign the Certificate of Acceptance (CA)/Certificate of Turnover only after the issuance of the 100% completion report by the project engineer. The same certificate shall also be signed by the Division Physical Facilities Officer. 4. The End-user (usually the Head) shall issue a Certificate of Non- compliance if the works are not in accordance with the specifications or standards.
  • 165. Documentary Requirements for Inspection 1. General Requirements for Inspection of deliveries/fabrication/installation  Original copy of approved contract/PO  Original Invoice/ Delivery Receipt  Performance/Quality Test Result (if applicable)  Other documents specified in the contract necessary to determine conformance with specifications (e.g. Approved plans/samples, standard specifications, etc. )
  • 166. Documentary Requirements for Inspection 1. Inspection of Infrastructure Project for construction, repairs and rehabilitation  Statement of Work Accomplishment (SWA)  Certificate of completion for final payment  Certificate of Final Acceptance (CFA) for release of retention money  Approved original contract  Approved Program of Works 2. Post-repair Inspection for repairs  Approved job order/work order/contract  Certificate of Acceptance  Waste Materials reports, if applicable
  • 167. Acceptance or Rejection of Deliveries of Goods  The Inspectorate Team may recommend a REJECTION / REDUCTION OF PRICE when their is a SHORTAGE IN QUANTITY, DEFICIENCY, OR DEFECTIVENESS IN QUALITY. After consideration of 10% tolerable allowance based on standards, the following shall be observed by the Inspectorate Team in the evaluation of the result of the inspection:  Supplies or property tested and found to be in accordance with the approved PO/Contract and with the required specifications SHALL BE ACCEPTED;  Supplies or property whose quality analysis shows deficiency of less than ten percent (10%) may be accepted, provided that they shall serve the purpose for which they were purchased. The defect is minor and the contract price is reduced according to the deficiency noted;
  • 168. Acceptance or Rejection of Deliveries of Goods  Supplies or property whose quantity is short by volume, weight, actual count, etc. Shall be subjected to reduction on contract price at an amount equivalent to the shortage, provided that the said deliveries are acceptable to the agency or unit; and  Damaged items that are not disclose or incorrectly marked as such shall be subjected to corresponding reduction in the contract.  Acceptance of deliveries maybe made only if the supplies and materials delivered CONFORM TO THE STANDARDS AND SPECIFICATIONS STATED IN THE CONTRACT/PO
  • 169. Acceptance or Rejection of Deliveries of Goods  If the supplier failed to comply with the requirements, the property/supply officer shall submit a report to the HOPE for appropriate actions. The HOPE may forfeit the contractor’s performance bond, if any, and may also institute civil actions against the contractors for breach of contract.  The supply officer/ designated property custodian shall be responsible for accepting deliveries of procured items and should notify the Auditor within five (5) days upon receipt of the approved contract/PO.
  • 171. PROPERTY CUSTODIANSHIP Property custodianship refers to the guardianship of government property by the accountable person. This includes the receipt, safekeeping, issuance, repair, and maintenance of supplies, materials, and equipment. The designated property custodian/officer is responsible, accountable and liable for any loss, misuse, damage, or deterioration of government property due to fault or negligence in safekeeping which may be physical or destructive What is custodianship?
  • 172. Storage / Warehousing Storage/ Warehousing refers to the scientific and economical warehousing of materials for their best safekeeping and availability. Best safekeeping means protecting the materials against theft, fire, and deterioration but easily accessible when needed. The method or systems include factors and procedures in the manner of undertaking due care and maintenance of good condition of the property. What is warehousing?
  • 173. Factors to be considered in Storage and Warehousing: 1. Site Location and size of storage/stockroom to use Generally, selection of site location, type and size of storage of stockroom to be used, play a major role for an effective storage and Warehousing management. It is important factor for the following purposes:  To be able to figure out the amount of materials that can be stored;  For determination of access for efficient and proper transport of supplies and materials;  For provision of large size of doorways and entrances;  For installation of proper lightings and ventilation.
  • 174. Factors to be considered in Storage and Warehousing: 1. Special layout planning for materials to be stored. For easy facilitation, space layout for materials to be stored should be planned. Specifically the layout should contain the placement of supplies by category, type, similarity, popularity, sizes, shapes, characteristics and to include perishability. It is important that materials be stored and placed in its proper places to avoid accidents and wastage.
  • 175. Factors to be considered in Storage and Warehousing: 1. Types of stacking suitable for each type of property In like manner as in space layout planning, types of stacking for each type of materials should be given careful planning. It may be classified into: i. Bulk storage ii. Medium Lot Storage; and iii. Small Lot Storage
  • 176. Procedures in Storage / Warehousing 1. Receipt of Materials and Equipment and Other Property - Supplies, materials, and equipment delivered by the supplier must be accompanied by Delivery Receipts (DRs) and/or Sales Invoice (SI), which were pre-inspected by the supply officer / designated property custodian before the items are received. 2. Arrangement of Materials - The storekeeper arranges the materials inside the warehouse/ stockroom in accordance with the prepared storage plan.
  • 177. Procedures in Storage / Warehousing 3. Recording of Receipts/ Deliveries - The storekeeper properly posts and updates the information (receipts, issuances and balance on hand) taken from the IAR. - Reconciliation of entries of bin cards with stock/property cards and with the physical count of stock on hand should be currently and properly updated.
  • 178. Issuance and Utilization Issuance and Utilization of supplies and materials and equipment is among the activities of property custodianship.  The custodianship of supplies and equipment is transferred from the Supply Officer/ Designated Property Custodian and Storekeeper/Warehouseman to the end-user who is responsible and accountable for the utilization and / or safekeeping.
  • 179. Procedure in the Requisition and Issuance of Inventory Items
  • 180. Start of Procedure Concerned Office, Requesting Personnel Prepares the Supplies Availability Inquiry (SAI) in 2 copies. Accomplishes the form For item description, unit, and quantity. Fills up the “Inquired by” portion of SAI And forwards the same to Accounting Units for processing. Accounting Unit, Accounting Staff Receives SAI from Requesting Personnel. Review and verifies the completeness Of Information. Accounting Staff, retrieves from file the SLC and determines availability/status Of stocks. Fills up the number, stock number, Status of stock and “Status provided by” Portion of SAI. Returns the original to the Requesting Personnel and files the Copy 2 of the SAI Requesting Personnel, receives the Original SAI from the Acctg. Staff Stock Available? No A Requesting Personnel, prepares Requisition Issuance Slip (RIS) in 3 copies. Fills up all The necessary information except for the Issuance portion and signs “Requested By” Portion of the RIS. Forwards the RIS to Authorized Official for approval. Authorized Official, signs the “Approved By” Portion of the RIS Requesting Personnel receives Signed RIS and forwards to the Property Division together with the original SAI for withdrawal of Inventory items requested Property Officer reviews and verifies RIS as to completeness of Information. Fills up RIS # date, quantity, remarks And initials “Approved by” portion of the RIS and records RIS in the logbook Head of the Property, signs the “Approved by” portion of RIS and Returns to the Supply Officer for Issuance of the Stock Supply officer fills up the and signs The “Issuance” portion of the RIS and issue inventory items Requested to the Requesting Personnel Requesting Personnel, Receives supplies requested And sign in the “Received by” portion Of the RIS files Permanently in num. Order copy 2 of RIS And files temporarily The RIS and SAI for the Preparation of Report of Supplies And Materials Issued (RMSI) End – of Procedure B A Requesting Personnel, Prepares PR for the Items requested and Forwards the same to Property Division for Processing of request B
  • 181. Illustration on preparation of the issuance documents SAI If Available PR N O RIS YES ICS /ARE
  • 182. GETTING TO KNOW WITH IMPORTANT DOCUMENTS 1. Supplies Availability Inquiry (SAI) - is a document prepared by the requisitioning officer as a basis for the preparation of RIS and PR if the supplies/equipment are available or not available on stock. 2. Requisition and Issuance Slip (RIS) - is used if the goods/supplies carried in stock based on the SAI received from the Accounting Unit. It must be numbered in the following manner as prescribed by COA.
  • 183. GETTING TO KNOW WITH IMPORTANT DOCUMENTS 3. Purchase Request (PR) - is accomplished if the goods/supplies/properties are not carried in stock based on the SAI received from the Accounting Unit. 4. Acknowledgement Receipt for Equipment (ARE) - is used for PPE accounts when issued to officials and employees other than the regular property officer. It shall be signed and dated by the Property officer under “Received from” portion and the recipient shall acknowledge by signing the documents.
  • 184. Recording for the Receipt, Issuance and Utilization of Supplies, Materials & Equipment The issuance of supplies/materials/equipment SHALL BE PROPERLY ACCOUNTED FOR. The Warehouseman/Storekeeper shall maintain bin cards and record the receipt and issuance of each class of item kept in stock. He/She is likewise monitor the status of the stock on hand. He shall post the quantity requested immediately upon withdrawal of the supplies/materials from the stockpile. The Supply Officer/Stock clerk shall maintain the stock cards for each class of articles kept in stock. All receipt and issuance of supplies, and the balance on hand shall be updated. The bases of recording the receipts and issuance shall be the DR and the RIS respectively. The stock card serves as guide in preparing the estimates of the quantity and description of the articles needed for the year.
  • 185. Recording for the Receipt, Issuance and Utilization of Supplies, Materials & Equipment The stock card will be at the same time serves as guards against overstocking of supplies and materials. The Supply Officer shall maintain the Property Card for each class of PPE reflecting the date of acquisition, description, custody, estimated life expectancy, depreciation, disposal, and other information about the PPE based on the source of documents. The basis of recording the issuance of PPE is the ARE
  • 186. Reconciliation of Property and Accounting Records  The accounting of issuance is not complete without the proper reconciliation of property and accounting records.  Before the property records can be reconciled with the accounting records, the Property/Supply Office shall see to it that the existing property records are reconciled with the actual inventory count.  The warehouseman/storekeeper may at any time conduct a test count of his stock to determine whether it tallies with the balance per bid cards.  Any discrepancies should be noted for further investigation and if necessary, coordinate with the stock/property clerk to settle the differences.
  • 188. Repair and Maintenance The repair and maintenance program is necessary for the purpose of attaining and/or extending the established economical and useful life of an equipment/property and serves as a sound basis for scheduling its replacement.
  • 189. Repair Equipment (major / minor) Repair is the process/act of restoring a property /equipment to its original state or to its working condition. Unserviceable equipment may at once be restored to its normal state of efficiency by making repairs.  Minor repair merely keeps a building of equipment in fit condition for use without increasing its capacity or otherwise adding to its normal value as an asset. i. Fair wear and tear is the condition of equipment worn out or otherwise rendered unserviceable through use without apparent fault. What is repair?

Notes de l'éditeur

  1. - 4-wheeled mobile requiring approval from the DBM
  2. - 4-wheeled mobile requiring approval from the DBM
  3. - 4-wheeled mobile requiring approval from the DBM
  4. Alternative mode of procurement- to promote economy and efficiency. In all instances, the procuring entity shall ensure that the most advantageous price for the government is obtained. Specialized type of goods – sophisticated defense equipment, complex air navigation systems, coal
  5. Proprietary source – patents, trade secrets, copyrights that prohibits others from manufacturing the same item;
  6. Proprietary source – patents, trade secrets, copyrights that prohibits others from manufacturing the same item;
  7. Proprietary source – patents, trade secrets, copyrights that prohibits others from manufacturing the same item;
  8. Proprietary source – patents, trade secrets, copyrights that prohibits others from manufacturing the same item;
  9. Proprietary source – patents, trade secrets, copyrights that prohibits others from manufacturing the same item;
  10. Proprietary source – patents, trade secrets, copyrights that prohibits others from manufacturing the same item;
  11. Proprietary source – patents, trade secrets, copyrights that prohibits others from manufacturing the same item;
  12. Proprietary source – patents, trade secrets, copyrights that prohibits others from manufacturing the same item;
  13. Proprietary source – patents, trade secrets, copyrights that prohibits others from manufacturing the same item;
  14. Proprietary source – patents, trade secrets, copyrights that prohibits others from manufacturing the same item;