2016 Revised IRR of RA 9184 Examples of Sustainable Procurement

 sourcing eco-friendly products

- provides detailed guidelines.
 supporting local communities
- to ensure transparency, competitiveness,  reducing the environmental impact of
and accountability in government procurement procurement activities
while promoting efficiency and economy.
Roles and Responsibilities
Fundamental Principles
 Procuring Entities: These are
1. Transparency: This means that government agencies or instrumentalities
procurement processes must be open and responsible for the procurement of goods,
accessible. Access to information and infrastructure projects, and consulting
documents by the public is crucial. services. Their responsibilities include
2. Competitiveness: This principle planning, budgeting, and ensuring
promotes a level playing field for bidders, compliance with procurement laws and
encouraging competition, which helps regulations.
secure the best value for the government.  Bids and Awards Committees (BACs):
3. Accountability: Accountability among BACs are responsible for conducting the
procurement officials ensures fairness, procurement process, including preparing
legality, and ethical conduct throughout the bid documents, evaluating bids, and
procurement process. recommending the award of contracts. They
must be composed of qualified and
Key Terminologies and Definitions impartial members.
 Procuring Entity – government agency  Heads of Procuring Entities: Heads of
that is procuring goods, infrastructure agencies have ultimate responsibility for
projects and consulting services. ensuring that procurement activities are
carried out in accordance with the law. They
approve procurement plans and contracts.
 Bids and Awards Committee (BAC)
 Bid Security - is a guarantee that the Rule 2: PROCUREMENT PLANNING
bidder will enter a contract with the project
owner if their bid is accepted. Section 7: Procurement Planning and
 Annual Procurement Plan (APP) Budgeting Linkage
 Project Procurement Management Meticulous Planning and Budgeting
Plans (PPMPs)
 All procurement must align with the
Procurement Trust Fund -is established to approved budget of the Procuring Entity.
ensure that there are sufficient financial resources  Procurement projects should be
available for procurement projects, allowing them meticulously and judiciously planned.
to proceed without financial constraints.  Only projects crucial to efficient
governmental functions should be included
Sustainable Procurement -means considering in the Annual Procurement Plan (APP).
environmental and social factors alongside  The APP should account for foreseeable
economic factors in the procurement process. It's emergencies based on historical records.
vital in modern procurement practices for its
benefits to society and the environment.
  For Infrastructure Projects, consider timing Evaluation and Approval of PPMPs
and phasing to lower project costs.
 PPMPs are evaluated by the Procuring
Adherence to Approved APP Entity's Budget Office for consistency with
the budget proposal.
 No procurement should take place unless it
 They are consolidated into an indicative APP
adheres to the approved APP, including any
and recommended for procurement
approved changes.
modality.
 The APP must be consistent with the
 The indicative APP includes project names,
Procuring Entity's yearly budget.
management offices, procurement
 It must be approved by the Head of
methods, schedules, funding sources,
Procuring Entity (HoPE) or a designated
estimated budgets, and other relevant
official acting on their behalf.
details.
Guidelines for Formulating and Revising  The indicative APP and budget proposal are
APP submitted for approval by the HoPE and/or
oversight bodies.
 After the budget call is issued, the Procuring
Entity prepares an indicative APP for the Revisions and Changes
next calendar year.  Changes to PPMPs and the consolidated
 The indicative APP reflects priorities and APP can be made semi-annually or as
objectives within the budget framework. required by the HoPE.
 End-user or implementing units formulate  End-users or implementing units are
Project Procurement Management Plans responsible for PPMP changes.
(PPMPs) for various programs, activities,  The BAC Secretariat handles consolidation
and projects (PAPs). and final HoPE approval.
 PPMPs include details like the type of  Changes in the APP should be submitted to
contract, procurement methods, schedule, the GPPB.
and budget estimates.
 Consignment, a specific arrangement for Consistency with Budget
goods delivery to a government agency,
 The Approved Budget for the Contract (ABC)
may be considered.
in the APP must align with appropriations
 PPMPs should be prepared with necessary
authorized in the GAA, corporate budget, or
procurement documents.
appropriations ordinance.
Outsourcing Procurement Tasks
Immediate Procurement Activities
Procuring Entities lacking proficiency for certain
 To expedite procurement activities pending
procurements can outsource tasks by:
budget approval, Procuring Entities may
a) Requesting other government agencies to commence procurement activities short of
do the procurement. award.
 This is encouraged for NGAs, SUCs,
b) Engaging private procurement agents.
Constitutional Commissions or Offices after
c) Recruiting or engaging consultants to the NEP submission.
assist and train their staff in procurement  ABC for contracts not exceeding one year is
management. based on the NEP or equivalent documents.
  No contract award can be made until the  Ensure the BAC (Bids and Awards
GAA, corporate budget, or appropriations Committee) has control over the bidding
ordinance is approved or enacted. process.
 Implement robust security measures.
Rule 3: PROCUREMENT BY ELECTRONIC  Support electronic signatures and
MEANS authentication.
-applies to the procurement of goods by  Have backup facilities.
government agencies and instrumentalities.  Integrate with Procuring Entity's
information systems.
Section 8: Procurement by Electronic  Adhere to electronic payment regulations.
Means and the Philippine Government
Certification of Compliance
Electronic Procurement System (PhilGEPS)
 GPPB certifies compliance with the service
The PhilGEPS (Philippine Government provider requirements.
Electronic Procurement System)
Features of PhilGEPS
-promote transparency and efficiency,
information and communications technology is  Electronic Bulletin Board for posting
used in procurement procedures. procurement opportunities, notices,
awards, and reasons for award.
- serves as the primary source of  Registry of manufacturers, suppliers,
information on all government procurement. distributors, contractors, and consultants.
-established under Executive Orders 322  Electronic Catalogue for common and non-
and 40, continuing to be managed by the DBM-PS common use goods.
under GPPB's supervision.  Additional features like a Virtual Store,
Electronic Payment, and Electronic Bid
Utilization of PhilGEPS for Common-Use Submission.
Supplies
Use of the PhilGEPS
-Procuring Entities should use PhilGEPS for
 All Procuring Entities must use PhilGEPS per
procuring Common-Use Supplies, ensuring
policies, rules, regulations, and procedures
efficiency and volume discounts.
adopted by GPPB.
-For other items, Infrastructure Projects,  Entities must ensure online connectivity and
and Consulting Services, agencies may hire service train personnel for PhilGEPS operation.
providers through competitive bidding, provided
they meet certain requirements.
Pre-bid Conferences and Notices
 Conduct pre-bid conferences as per Section
Requirements for Service Providers
22.
 Service providers for electronic  Requests for clarification from bidders can
procurement must comply with relevant be sent electronically.
laws and regulations.  All notices are posted on the PhilGEPS
 They must be linked to PhilGEPS for posting bulletin board and sent electronically.
bid opportunities and awards.
 Allow parallel manual bid submissions.
Registration, Eligibility Requirements, and
Bid Submission
  Manufacturers, suppliers, distributors,  The goal is to standardize procurement
contractors, and consultants must register procedures and consolidate all procurement
with PhilGEPS. activities.
 Bidders should upload and maintain  Separate BACs can be created for practical
eligibility documents and bids in PhilGEPS. reasons, based on the number and
 Registered bidders may submit bids before complexity of items to be procured, either
the specified closing date. by geographical location or nature of
procurement.
Opening of Bids  Decentralized and lower-level offices can
 The BAC has sole authority to open bids. also form similar committees when needed.
 Only financial proposals of technically
BAC Composition
qualified bidders are opened.
 The HoPE designates at least five (5) but not
Observers more than seven (7) members to the BAC,
 Observers, authorized by the BAC, can ensuring unquestionable integrity and
monitor procurement proceedings online procurement proficiency.
without a direct or indirect interest in the  BAC composition for various government
contract. entities is detailed, including chairpersons,
officers representing legal or administrative
Security, Integrity, and Confidentiality areas, officers representing finance areas,
 PhilGEPS incorporates features to ensure and provisional members.
security, integrity, and confidentiality of Alternate BAC Members
data.
 This includes encryption, electronic  The HoPE can designate alternate BAC
signatures, and protection against members with the same qualifications as
unauthorized access. original members.
 An audit trail is maintained for transactions,  Alternate members attend meetings and
and performance tracking is done for both receive honoraria when original members
suppliers and Procuring Entities. are absent.

Rule 4: COMPETITIVE BIDDING Term of BAC Members

Section 10. Competitive Bidding  BAC members serve a fixed term of one (1)
year, renewable at the discretion of the
All procurement shall be done through competitive HoPE.
bidding, except as provided in Rule XVI of this IRR.  If a member resigns, retires, transfers, or is
removed, the replacement serves the
Rule 5: BIDS AND AWARDS COMMITTEE
unexpired term.
Section 11: The BAC and its Composition  For leave or suspension, replacements serve
only during the leave or suspension
BAC Structure duration.
 Each Procuring Entity establishes a single Section 12: Functions of the BAC
BAC in its head office.
1. The BAC's functions include advertising,
conducting conferences, evaluating bids,
 resolving issues, recommending awards, Section 16: Professionalization of BAC,
imposing sanctions, considering alternative TWG Members and Procurement Units
procurement methods, conducting
assessments, and more. 1. The GPPB is responsible for establishing a
2. The BAC is responsible for ensuring training program to develop the capability
compliance with procurement standards, of BACs, Secretariats, TWGs, and
preparing Procurement Monitoring Reports Procurement Units.
(PMRs), and posting PMRs as required. 2. Members of these committees must
undergo training or capacity development
Section 13: Observers programs, and the HoPE is encouraged to
1. Observers, invited during various attend similar training.
procurement stages, enhance transparency. RULE 6: PREPARATION OF BIDDING
2. Observers may come from private groups
DOCUMENTS
relevant to the procurement, as well as non-
government organizations (NGOs). Section 17: Form and Contents of Bidding
3. Observers are required to prepare reports Documents
assessing the BAC's compliance with
1. Standard Forms and Manuals: Bidding
procedures and report to relevant
Documents must be prepared by the
authorities.
Procuring Entity following the standard
4. Observers are allowed access to certain
forms and manuals prescribed by the GPPB.
procurement documents, provided they
sign a confidentiality agreement. 2. Inclusions in Bidding Documents: The
Bidding Documents should include the
Section 14: BAC Secretariat / Procurement following components:
Unit a) ABC (Approved Budget for the
1. The HoPE establishes a Secretariat to Contract)
support the BAC, with functions such as b) Invitation to Bid/Request for
administrative support, organizing Expression of Interest
meetings, document management, and
more. c) Eligibility Requirements
2. An existing organic office within the d) Instructions to Bidders, including
Procuring Entity may serve as the various details about the bidding
Secretariat. process
3. Procurement units may be created to serve
concurrently as BAC Secretariat. e) Terms of Reference (for Consulting
4. The head of the Secretariat should meet Services)
certain qualifications. f) Scope of Work (if applicable)
Section 15: Honoraria of BAC, BAC g) Plans/Drawings and Technical
Secretariat, and TWG Members Specifications
Procuring Entities may grant honoraria to BAC h) Form of Bid, Price Form, and List
members, Secretariat members, and TWG of Goods or Bill of Quantities
members, subject to certain limitations and DBM
i) Delivery Time or Completion
guidelines.
Schedule
 j) Form, Amount, and Validity Period provided in Section 41 of the Act and the
of Bid Security IRR.
9. Detailed Engineering for
k) Form, Amount, and Validity of
Performance Security and Warranty Infrastructure Projects: Detailed
engineering investigations, surveys, and
l) Form of Contract and General and designs must be sufficiently carried out and
Special Conditions of Contract duly approved for infrastructure projects.
3. Clarity and Unambiguity: Specifications Exceptions are made for design and build
and terms in the Bidding Documents should schemes, where preliminary engineering
be clear and unambiguous to meet the designs can be submitted as part of the bid.
needs of the Procuring Entity. Section 18: Reference to Brand Names
4. Mixed Procurements: For mixed
procurements, where multiple components Specifications for Goods procurement should be
are involved in a project, the Bidding based on relevant characteristics, functionality, and
Documents should specify requirements, performance requirements. Reference to brand
criteria, and conditions applicable to each names is generally not allowed, except when
component. compatible with existing equipment or to maintain
equipment performance and functionality.
5. Compliance with Laws: The Procuring
Entity should ensure that Bidding Section 19: Access to Information
Documents comply with existing laws, rules,
and regulations, including those concerning Equal access to information is crucial throughout
licenses and permits required for the the Bidding Document preparation stages. No part
project. of the Bidding Documents should be disclosed or
released to prospective bidders or any parties with
6. Availability of Bidding Documents:
an interest in the project before their official
Bidding Documents should be made
release, except for authorized personnel
available for prospective bidders to examine
responsible for document handling. This ensures
and prepare their bids from the time the
fairness and transparency in the procurement
Invitation to Bid / Request for Expression of
process.
Interest is first advertised/posted until the
deadline for bid submission. RULE 7: INVITATION TO BID
7. Bidding Documents Fee: Prospective
bidders may be asked to pay a fee to Section 20: Pre-procurement Conference
recover the cost of preparing the Bidding 1. Purpose: Prior to advertising the Invitation
Documents. The complete Bidding
to Bid/Request for Expression of Interest, a
Documents should be posted on the
pre-procurement conference shall be held,
Procuring Entity's website and the PhilGEPS
attended by the BAC (Bids and Awards
website for downloading. Bidders may also
Committee), its Secretariat, officials or
secure hard copies from the BAC
consultants who prepared the Bidding
Secretariat, usually upon payment of the
Documents, and other relevant parties.
corresponding fee.
2. Agenda: During this conference, the
8. Refund of Bidding Documents Fee:
participants shall:
The Bidding Documents Fee may be
a) Confirm contract details, ABC, and
refunded based on certain grounds
duration.
 b) Ensure procurement aligns with the e) ABC, funding source, and contract
PPMP (Procurement Program) and duration.
APP (Annual Procurement Plan). f) Bidding Document access details.
c) Assess procurement readiness, g) Contact information of the Procuring
including fund availability, Entity.
completeness of Bidding 2. Advertising: The Invitation to Bid/Request
Documents, adherence to for Expression of Interest should be posted
procurement guidelines, detailed in several locations, including on the
engineering (for Infrastructure premises of the Procuring Entity, the
Projects), and right-of-way site or PhilGEPS website, and a newspaper of
location. general nationwide circulation (unless
d) Review and agree on eligibility exempted by amount thresholds).
criteria, evaluation, and post-
qualification. Section 22: Pre-bid Conference
e) Establish the procurement schedule,
1. Pre-bid Conference Requirement: For
including deadlines.
contracts with an ABC of ₱1,000,000.00 or
f) Emphasize confidentiality and
more, at least one pre-bid conference must
discuss measures to ensure
be held to clarify Bidding Document
compliance (in accordance with
requirements. For contracts below
Section 19 of the IRR).
₱1,000,000.00, pre-bid conferences may be
3. Exemption: Pre-procurement conferences conducted at the discretion of the BAC or
may not be required for small procurements upon a written bidder request.
(Goods ≤ ₱2,000,000.00, Infrastructure
2. Timing: Pre-bid conferences should occur
Projects ≤ ₱5,000,000.00, Consulting
at least twelve (12) calendar days before the
Services ≤ ₱1,000,000.00).
bid submission deadline but not earlier than
Section 21: Advertising and Contents of the seven (7) calendar days after posting the
Invitation to Bid/Request for Expression of Invitation to Bid/Request for Expression of
Interest on PhilGEPS.
Interest
3. Content: Pre-bid conferences clarify
1. Contents: The Invitation to Bid/Request eligibility requirements and contract details,
for Expression of Interest should provide addressing questions and clarifications
prospective bidders with essential raised by prospective bidders.
information, including: 4. Attendance: Pre-bid conferences can be
a) Description of the contract, goods, conducted in person or electronically, and
or services. attendance is not mandatory.
b) Contract name, lot/item details, and 5. Minutes: Minutes of the conference must
evaluation basis. be prepared and shared with prospective
c) Criteria for eligibility check, bidders within five (5) days upon written
shortlisting, examination and request.
evaluation of bids, post-qualification,
6. Supplemental/Bid Bulletins: Any
and award.
decisions or clarifications resulting from
d) Key dates for submission, pre-bid
pre-bid conferences should be
conference, bid opening, etc.
communicated through Supplemental/Bid
 Bulletins at least seven (7) days before the v. Statement of Single
bid submission deadline. Largest Completed
7. Supplemental/Bid Bulletins for Contract (SLCC) similar
Clarifications: Requests for clarification to the contract to be
on Bidding Documents should be submitted bid.
in writing at least ten (10) days before the vi. Valid Philippine
bid submission deadline. The BAC responds Contractors
through Supplemental/Bid Bulletins issued Accreditation Board
at least seven (7) days before the deadline. (PCAB) License for
Infrastructure Projects.
8. Publication: Supplemental/Bid Bulletins
b. Class “B” Document:
should be posted on PhilGEPS, the
Procuring Entity's website, and within the For Goods, a valid joint venture
Procuring Entity's premises. Bidders who agreement (JVA) or statements from
submitted bids before a Supplemental/Bid potential joint venture partners stating
Bulletin was issued must be informed and they will abide by the JVA. Failure to do
allowed to modify or withdraw their bids. so may result in forfeiture of the bid
security.
RULE 8: RECEIPT AND OPENING OF BIDS
For Infrastructure Projects, JV
Section 23: Eligibility Requirements for the bidders shall submit a JVA in accordance
Procurement of Goods and Infrastructure with R.A. 4566.
Projects 2. Foreign Bidders: Eligibility requirements,
bids, and documents submitted by foreign
1. Eligibility Requirements: To determine bidders must be in English. If in a foreign
the eligibility of bidders, the BAC will language, they must be accompanied by an
require the following documents using the English translation, authenticated by the
prescribed forms in the Bidding Documents: relevant foreign government agency or
a. Class “A” Documents (Legal authorized translator, and authenticated by
Documents, Technical Documents, the appropriate Philippine foreign service
Financial Documents): establishment.
i. Registration certificate
3. PhilGEPS Registry: The PhilGEPS
from SEC, DTI for sole
electronic registry of manufacturers,
proprietorships, or CDA
suppliers, distributors, contractors, and
for cooperatives.
consultants should be used to facilitate
ii. Mayor’s/Business
eligibility determination.
permit from the
city/municipality where 4. Eligibility Criteria: The eligibility criteria
the principal place of differ for Goods and Infrastructure Projects.
business is located. a. Goods Eligibility Criteria:
iii. Tax clearance per E.O. i. Filipino citizens/sole
398, as approved by the proprietorships,
BIR. partnerships,
iv. Statement of ongoing corporations,
government and private cooperatives, or joint
contracts. ventures.
 ii. Foreign bidders may be 1. Eligibility Requirements:
eligible under specific a. Class "A" Documents (Legal
circumstances as Documents, Technical Documents,
defined by guidelines Financial Documents):
issued by the GPPB.  Registration certificate from SEC,
iii. Completion of an SLCC DTI for sole proprietorship, or
similar to the contract CDA for cooperatives.
to be bid.  Mayor’s/Business permit from
iv. Computation of Net the city/municipality of the
Financial Contracting bidder's principal place of
Capacity (NFCC) equal business.
to or exceeding the  Tax clearance per E.O. 398,
ABC. approved by the BIR.
b. Infrastructure Projects Eligibility  Statement of ongoing and
Criteria: completed government and
i. Filipino citizens/sole private contracts, including
proprietorships, awarded but not yet started
partnerships, contracts.
corporations,  Statement of the consultant
cooperatives, or joint specifying its nationality and
ventures. confirming the qualifications of
ii. Foreign bidders may be those who will perform the
eligible under specific service.
circumstances defined  The consultant’s audited
by law. financial statements, stamped
iii. Issuance of a license by "received" by the BIR.
the PCAB. b. Class "B" Document:
iv. Completion of an SLCC  Valid joint venture agreement
similar to the contract (JVA) if applicable. In the
to be bid. absence of a JVA, notarized
v. Computation of NFCC statements from potential joint
equal to or exceeding venture partners committing to
the ABC. enter into and abide by the JVA.
5. Review of Qualifications: The Procuring 2. Foreign Consultants: Foreign
Entity may review a bidder's qualifications consultants must submit their documents in
at any stage of the procurement process if English. If the documents are in a foreign
there are reasonable grounds to believe language, they must be accompanied by an
misrepresentation has occurred or a change English translation, authenticated by the
in capability has occurred since submission. relevant foreign government agency and the
If misrepresentation is found, the bidder Philippine foreign service establishment.
may be disqualified from obtaining an 3. Eligibility Criteria:
award or contract.  Eligibility is open to Filipino
citizens/sole proprietorships,
Section 24: Eligibility Requirements and
partnerships, corporations,
Short Listing for Consulting Services cooperatives, and joint ventures
 with at least 60% Filipino  Bids should be submitted in two
ownership. separate sealed envelopes: one for the
 Consultants in professions technical component and the other for
regulated by law must have the financial component.
registered Filipino professionals  The technical component envelope
authorized by the appropriate should contain specific documents
regulatory body. based on the type of procurement
 Foreign consultants may be hired (Goods, Infrastructure Projects, or
when Filipino consultants lack Consulting Services).
the required expertise. 2. Contents of the Technical
4. Eligibility Check: Eligibility envelopes are Component:
opened before the pre-bid conference and  For Goods, the technical envelope
bid opening to determine eligibility based should include items such as the
on the submitted documents. PhilGEPS Certificate of Registration,
5. Short Listing of Prospective Bidders: statement of ongoing contracts, NFCC
 Shortlisting is based on criteria specified computation, JVA or notarized
in the Request for Expression of Interest statement, bid security, technical
(EOI). specifications, and an omnibus sworn
 The shortlist includes 3 to 7 consultants, statement.
with 5 as the preferable number.  For Infrastructure Projects, it should
 The BAC determines the shortlist based include items such as the PhilGEPS
on applicable experience, qualifications Certificate of Registration, PCAB License
of personnel, and current workload and Registration, statement of ongoing
relative to capacity. contracts, NFCC computation, JVA (if
6. Criteria and Rating System: The applicable), bid security, project
Request for EOI specifies the criteria and requirements, and an omnibus sworn
rating system for shortlisting, considering statement.
experience, qualifications, and capacity.  For Consulting Services, it should
7. GOCCs: Government-owned and include the bid security, organizational
controlled corporations (GOCCs) may chart, list of completed and ongoing
participate if they meet specific criteria projects, approach, work plan, schedule,
related to legal and financial autonomy, list of key personnel, and an omnibus
commercial law operation, and non- sworn statement.
attachment to the procuring entity. 3. Omnibus Sworn Statement:
8. Review of Qualifications: The procuring The omnibus sworn statement is executed
entity reserves the right to review a by the bidder or its authorized representative
consultant's qualifications at any stage if and must contain specific declarations,
there are reasonable grounds to suspect including authorization, non-blacklisting,
misrepresentation or changes in capability. authenticity of documents, authorization for
verification, compliance with laws and
Section 25: Submission and Receipt of Bids
standards, and non-payment of commissions or
1. Submission of Bids: fees.
 Bidders must submit their bids through
4. Financial Component:
their duly authorized representatives.
 The financial component of the bid should This section ensures transparency and compliance
be placed in the second sealed envelope as with the submission requirements for various
specified in the Procurement Bid Documents types of procurements. It emphasizes the
(PBDs). importance of correct documentation and
adherence to deadlines.
5. Deadline for Bid Submission:
 Bids should be submitted on the date, Section 26: Modification and Withdrawal
time, and place specified in the of Bids
Invitation to Bid/Request for Expression
of Interest. 1. Bid Modification:
 Specific maximum periods are provided  Bidders can modify their bids before the
for different types of procurement: 45 deadline for the submission and receipt
calendar days for Goods, varying periods of bids.
for Infrastructure Projects based on the  If a bidder decides to modify its bid, it
ABC (Approved Budget for the Contract), cannot retrieve the original bid but must
and 75 calendar days for Consulting submit another bid equally sealed,
Services. properly identified, linked to the original
6. Late Bids: bid, and marked as a "modification."
 Bids submitted after the specified  Bid modifications received after the
deadline will not be accepted by the deadline will not be considered and will
BAC. be returned to the bidder unopened.
 The BAC will record the name of the 2. Bid Withdrawal:
bidder, its representative, and the time  Bidders can withdraw their bids through a
of submission for late bids in the written letter before the deadline for the
minutes of bid submission and opening. receipt of bids.
7. Notification of Bid Receipt:  Withdrawal of bids after the deadline may
result in appropriate sanctions as prescribed
The BAC Secretariat will notify all bidders in in the IRR.
writing regarding the receipt of their bids  Bidders can also express their intention not
through their PhilGEPS-registered physical to participate in the bidding process
address or official e-mail address within seven through a letter received by the BAC before
(7) calendar days from the bid opening. the bid submission deadline.
 A bidder that withdraws its bid will not be
8. Bid Form:
allowed to submit another bid for the same
The original bid form should be properly contract, either directly or indirectly.
filled out, typed or written in ink, and signed by
the bidder or its authorized representative.
Section 27: Bid Security
This section outlines the requirements and forms of
9. Unsealed or Unmarked Bids:
bid security that bidders must provide as a
 Unsealed or unmarked bid envelopes
guarantee of their commitment to the procurement
will be rejected. However, improperly
process:
sealed or marked bids will be accepted if
the bidder acknowledges the condition 1. Bid Security Requirement:
of the bid.  All bids must be accompanied by a bid
security payable to the Procuring Entity.
  The bid security ensures that the This section specifies the validity period for bids
successful bidder will enter into a and bid securities:
contract with the Procuring Entity and
furnish the required performance 1. Bid Validity Period:
security within a specified period.  Bids and bid securities should be valid
for a reasonable period as determined
2. Forms of Bid Security and Amount:
by the HoPE (Head of Procuring Entity)
 Bid security can be in the form of cash,
and indicated in the Bidding Documents.
cashier's or manager's check, bank draft
 The bid validity period should not
or guarantee, irrevocable letter of credit,
exceed 120 calendar days from the date
or surety bond.
of bid opening.
 The amount of bid security should not
be less than the required percentage of 2. Extension of Validity:
the ABC (Approved Budget for the  If necessary, the Procuring Entity can
Contract), with specific percentages request an extension of the bid and bid
listed for different forms of bid security. security validity period before
expiration.
3. Denomination and Currency:
 Bidders have the right to refuse such
Bid security must be denominated in extensions without forfeiting their bid
Philippine Pesos and posted in favor of the security.
Procuring Entity.
Section 29: Bid Opening
4. Return of Bid Security:
This section addresses the procedures for bid
 Bid security will be returned after the
opening:
successful bidder signs the contract and
furnishes the required performance 1. Bid Opening Schedule:
security.  The BAC (Bids and Awards Committee)
 Bid security may not be returned to will open bids immediately after the
bidders declared as failed or post- deadline for the submission and receipt
disqualified, provided they waive their of bids.
right to file a request for reconsideration  The time, date, and place of bid opening
and/or protest. will be specified in the Bidding
5. Bid Securing Declaration: Documents.
A Bid Securing Declaration is an undertaking 2. Postponement of Bid Opening:
by the bidder that includes commitments to
enter into a contract, furnish performance
security, and pay fines or face suspension for  If, for justifiable reasons, the bids cannot
violations as per guidelines issued by the GPPB. be opened as scheduled, the BAC will
reschedule the bid opening for the next
6. Expiration of Bid Validity: working day or the soonest possible
time.
Bid security will not be returned later than
 A Notice of Postponement will be issued
the expiration of the bid validity period, unless
and posted on the PhilGEPS website and
an extension is granted in accordance with
the Procuring Entity's website.
Section 28.2.
3. Attendance at Bid Opening:
Section 28: Bid Validity
 Bidders or their authorized representatives  Bids exceeding the ABC will
may attend the bid opening. automatically disqualify the bidder.
 There is no lower limit or floor on the
4. Public Access to Bid Information: amount of the award.
 The BAC will ensure the integrity,  Special conditions apply to foreign-
security, and confidentiality of all funded procurement projects.
submitted bids.
 The abstract of bids as read and the Section 32: Bid Evaluation for Goods and
minutes of the bid opening will be made Infrastructure Projects
available to the public upon written
request and payment of a specified fee  Bid evaluation for Goods and
to cover the cost of materials. Infrastructure Projects is based on
determining the Lowest Calculated Bid.
Rule 9: BID EVALUATION  The evaluation process includes
checking for completeness, arithmetical
This section outlines the procedures for bid
corrections, and the inclusion of all
evaluation, which is a crucial step in the
applicable taxes.
procurement process to determine the successful
 Discrepancies in bid prices are resolved
bidder. It covers various aspects, including
based on specific rules.
preliminary examination of bids, the ceiling for bid
 Bids are ranked based on their total
prices, and bid evaluation for different types of
calculated bid prices, with those
procurement.
exceeding the ABC disqualified.
Section 30: Preliminary Examination of  The entire evaluation process should be
Bids completed within seven (7) calendar
days.
 The BAC (Bids and Awards Committee) must
open the first bid envelopes publicly to Section 33: Bid Evaluation of Short Listed
check for compliance with eligibility and Bidders for Consulting Services
technical requirements as specified in the
 Bid evaluation for Consulting Services
Instructions to Bidders.
may follow different procedures based
 Bids must include all required documents,
on the evaluation method specified in
and any missing or incomplete
the Bidding Documents.
requirements will lead to the bid being
 The evaluation may involve a two-stage
rated as "failed."
procedure, where technical and financial
 If the first bid envelope passes, the second
proposals are submitted separately.
bid envelope is opened for further
 Evaluations consider criteria such as the
evaluation.
quality of personnel, consultant
 Bidders failing to meet all requirements in
experience, and the plan of approach
both envelopes are disqualified, and only
and methodology.
those with complete and compliant bids
 After technical evaluation, negotiations
proceed to evaluation.
may occur with the Highest Rated Bid to
Section 31: Ceiling for Bid Prices clarify terms and financial proposals.
 The entire evaluation process should be
 The Approved Budget for the Contract completed within twenty-one (21)
(ABC) serves as the upper limit or ceiling calendar days.
for acceptable bid prices.
  Key personnel replacement is generally highest rated bid refuses the award without
not allowed before the contract award. justifiable cause.
 The BAC must conduct a review to
These rules ensure a transparent and fair bid
determine the reason for the failed bidding
evaluation process for different types of
and may revise the terms, conditions,
procurement projects, promoting competition and
specifications, and ABC if necessary.
the selection of the most qualified bidders.
 If there is a second failure of bidding, the
Rule 10: POST QUALIFICATIONS Procuring Entity may resort to negotiated
procurement.
This rule covers the post-qualification process,
which is conducted after the evaluation of bids to Section 36: Single Calculated/Rated and
ensure that the lowest calculated bid or highest Responsive Bid Submission
rated bid complies with all the requirements
specified in the Bidding Documents. It also outlines  A Single Calculated and Responsive Bid
the circumstances under which a single calculated (SCRB) or Single Rated and Responsive Bid
and responsive bid (SCRB) or single rated and (SRRB) may be considered for award under
responsive bid (SRRB) may be considered for specific circumstances:
award. o If only one bidder applies for
eligibility and meets the criteria and
Section 34: Objective and Process of Post- submits a responsive bid.
Qualification o If multiple bidders apply for
eligibility, but only one meets the
 Post-qualification aims to verify whether the
criteria and submits a responsive
lowest calculated bid or highest rated bid
bid.
complies with all requirements and
o If multiple bidders meet the
conditions in the Bidding Documents.
eligibility requirements but only one
 Within five (5) calendar days of being
submits a responsive bid.
notified that they have the lowest
 In all cases, the Procuring Entity must
calculated bid or highest rated bid, the
ensure that the Approved Budget for the
bidder must submit income and business
Contract (ABC) reflects the most
tax returns and other required licenses and
advantageous prevailing price for the
permits. Failure to do so will result in
government.
disqualification.
 The post-qualification process verifies These rules help ensure that the lowest calculated
various aspects, including legal bid or highest rated bid undergoes thorough post-
requirements, technical requirements, and qualification to verify compliance with all
financial requirements. requirements, promoting transparency and fairness
in the procurement process. Additionally, they
Section 35: Failure of Bidding allow for the consideration of SCRBs or SRRBs
 The BAC may declare the bidding a failure under specific circumstances to avoid delays in
under certain circumstances, such as when procurement when only one bidder qualifies and
no bids are received, all prospective bidders submits a responsive bid.
are declared ineligible, bids fail to comply
Rule 11: AWARD, IMPLEMENTATION, AND
with requirements or post-qualification, or
TERMINATION OF THE CONTRACT
the bidder with the lowest calculated bid or
This rule covers the process of awarding, resolve within seven (7) calendar
implementing, and terminating government days. The request for
contracts. It specifies the steps and timelines reconsideration does not delay the
involved in awarding a contract to the winning bidding process.
bidder and ensuring that the contract is carried out  Award Conditions: Awarding the
according to the terms and conditions. contract is subject to various conditions,
including the submission of required
Section 37: Notice and Execution of Award
documents, posting of performance
 Contract Award: The BAC recommends security, signing the contract, and approval
the award of the contract to the bidder with by higher authority if necessary.
the Lowest Calculated Bid (LCRB), Highest  Bid Validity Period: Contract award must
Rated Bid (HRRB), Single Calculated and be made within the bid validity period, as
Responsive Bid (SCRB), or Single Rated and specified in Section 28 of the IRR.
Responsive Bid (SRRB) after the post-  Notice of Award: The Notice of Award is
qualification process has been completed. posted in the PhilGEPS, the Procuring
o The BAC submits various supporting Entity's website (if available), and in a
documents to the Head of the conspicuous place within the Procuring
Procuring Entity (HoPE), including a Entity's premises within three (3) calendar
resolution recommending the days of issuance.
award, an abstract of bids, program
of work or delivery schedule, cost Section 38: Period of Action on
estimates, and other required Procurement Activities
documents.
 The procurement process from bid opening
o Within three (3) calendar days of the
to contract award should not exceed three
resolution recommending the
(3) months or a shorter period determined
award, the BAC notifies all other
by the Procuring Entity.
bidders in writing of its
 Members of the BAC are expected to
recommendation.
prioritize their duties and responsibilities
 Approval or Disapproval: The HoPE or related to procurement, following a "jury
their representative must approve or duty" type of assignment, until the Notice of
disapprove the recommendation within Award is issued to expedite the
fifteen (15) calendar days. procurement process.
o In case of approval, the HoPE issues  The maximum periods and recommended
the Notice of Award to the winning timelines for specific procurement activities
bidder. are provided in Annex "C" of the IRR.
o In case of disapproval, the HoPE Deadlines falling on non-working days are
notifies the BAC and the bidder in moved to the next working day.
writing, stating the grounds for  If no action is taken on the contract within
disapproval. The BAC then conducts the specified periods, it may be deemed
post-qualification for the next lowest approved, except when higher authority
bidder if applicable. approval is required, in which case it
o The bidder may file a request for remains pending until approved by the
reconsideration within three (3) Office of the President.
calendar days, which the HoPE must
Section 39: Performance Security
 Guarantee for Performance: The proportional reduction in the original
winning bidder is required to provide a performance security may be allowed, but
performance security to ensure that they not exceeding 50% of the original
fulfill their obligations under the contract as performance security.
specified in the Bidding Documents.
Section 40: Failure to Enter into Contract
 Amount of Performance Security: The
and Post Performance Security
performance security amount should be not
less than the required percentage of the  Consequences of Failure: If the winning
total contract price, and it should be posted bidder fails, refuses, or is unable to submit
in Philippine Pesos. The required required documents, enter into a contract,
percentages are as follows: or post the required performance security
o Goods and Consulting Services: 5% of within the specified period, the bid security
the total contract price will be forfeited, and sanctions may be
o Infrastructure Projects: 10% of the total imposed. However, exceptions may apply if
contract price the failure is not the bidder's fault.
o Surety bond callable upon demand: 30%  Disqualification and Re-Bidding: The
of the total contract price BAC will disqualify the bidder and initiate
 Validity of Performance Security: The post-qualification for the next lowest bidder,
performance security remains valid until the repeating the process until a qualified
Certificate of Final Acceptance is issued. bidder is determined. If no bidder passes
 Release of Performance Security: The post-qualification, the bidding may be
performance security may be released after declared a failure and re-bidding may occur.
the Certificate of Final Acceptance is issued, Negotiated procurement may also be
provided that no claims are filed against the considered in case of repeated bidding
contract awardee or the surety company, no failures.
claims for labor and materials are filed
Section 41: Reservation Clause
against the contractor, and other contract
terms are met.  Right to Reject Bids: The Head of the
 Additional Performance Security for Procuring Entity (HoPE) reserves the right to
Infrastructure Projects: For reject all bids, declare a failure of bidding,
Infrastructure Projects, an additional or not award the contract under certain
performance security may be required to conditions. These conditions include
cover any cumulative increase of more than evidence of collusion, failure to follow
10% over the original contract value due to prescribed procedures, or justifiable and
amendments, change orders, extra work reasonable grounds where awarding the
orders, or supplemental agreements. The contract would not benefit the government.
winning bidder must also extend the validity
Section 42: Contract Implementation and
of the performance security to cover
approved contract time extensions.
Termination
 Reduction of Performance Security:  This section outlines the guidelines for
In cases where the contract value is contract implementation and termination,
reduced, or partially completed works are with specific implementation guidelines
usable and accepted by the government provided in Annexes D, E, and F of the IRR
without affecting structural integrity, a for different types of procurement (goods,
 infrastructure projects, and consulting  Procedures and Guidelines: The
services). preference for domestic goods is applied
 It also mentions that no incentive bonus in when the lowest foreign bid is lower than
any form or for any purpose shall be the lowest domestic bid. The lowest foreign
allowed in government procurement. bid is increased by 15% for evaluation
 Additionally, it allows Procuring Entities to purposes. If the lowest domestic bid (after
issue letters of credit in favor of local or applying the 15% increase) is still lower than
foreign suppliers, but no payment should be the lowest foreign bid, the contract is
made until delivery and acceptance of the awarded to the domestic bidder at the
goods have been concluded as per the amount of the lowest foreign bid.
contract's delivery schedule. The cost of  Acceptance of Award: If the domestic
opening the letter of credit is the bidder refuses to accept the award at the
responsibility of the supplier and should be amount of the foreign bid, the Procuring
stated in the Bidding Documents. Entity can then award the contract to the
RULE 12: DOMESTIC AND FOREIGN bidder offering the foreign bid.
PROCUREMENT  Post-Qualification: The award of the
contract is subject to post-qualification and
Section 43: Procurement of Domestic and submission of all required documentary
Foreign Goods requirements.

This section deals with the procurement of goods, RULE 13: BIDDING OF PROVINCIAL
and it distinguishes between domestically PROJECTS
produced goods and foreign goods. Here are the
key points: Section 44: Bidding of Provincial Projects

 Scope and Application: Goods can be  This section discusses the bidding of
obtained from domestic or foreign sources, provincial projects, which include priority
subject to eligibility criteria. Preference may programs and infrastructure projects
be given to domestically produced and funded by the annual General
manufactured goods that meet specified Appropriations Act (GAA) for
quality standards. The award will be made implementation within the province. It
to the lowest domestic bidder, provided states that these projects should be subject
their bid is not more than 15% higher than to competitive bidding and procurement
the lowest foreign bid. processes as prescribed in the IRR.
 Engineering District infrastructure projects
 Preference for Domestic Goods: The
and priority programs that are fully funded
Procuring Entity shall give preference to
by the government and identified in
materials and supplies produced in the
consultation with members of Congress are
Philippines. To claim this preference, a
considered "provincial projects" and are
domestic bidder must secure certification
governed by this section.
from the Department of Trade and Industry
(DTI) that their bid items are substantially Section 45: Provincial Bidders
composed of articles, materials, or supplies
grown, produced, or manufactured in the  This section mentions that the right to
Philippines. match, which was previously accorded to
provincial bidders, is no longer available
after January 26, 2008. This means that the
previous provision allowing provincial
bidders to match the lowest bid for
provincial projects is no longer in effect.