GPPB 2013-2014 Updates and Latest Issuances
GPPB 2013-2014 Updates and Latest Issuances
GPPB 2013-2014 Updates and Latest Issuances
LATEST ISSUANCES
January 2013 May 2014
2
SCOPE AND APPLICATION
3
Scope and Application:
Authority of GPPB
On Granting exemption from application of RA 9184
NPM 100-2013
4
Scope and Application:
Authority of GPPB
On Resolving issue on post-disqualification
GPPB cannot grant a bidders request to resolve the issue of their
post-disqualification. Nonetheless, they are urged to follow the
prescribed rules and procedures on Protest Mechanism laid down in
Section 55 of the IRR of RA 9184.
Itcannot dictate to the procuring entity how to decide or resolve
issues relative to its procurement activities. The GPPB is a quasi-
legislative body mandated to formulate and amend the IRR. It has no
quasi-judicial powers and functions; hence, cannot investigate and
ascertain the existence of facts, hold hearings, and exercise discretion of
a judicial nature over actual controversies with regard to the conduct of
bidding by procuring entities.
NPM 104-2013
5
Scope and Application:
Authority of GPPB
On Declaring Failure of Bidding
NPM 99-2013
6
Scope and Application:
Non-Applicability of RA 9184 and its IRR
Lease Concession Agreement
This may be most appropriately conducted following PPP-related
laws, rules, and regulations, such as BOT Law or JV Guidelines.
NPM 48-2013
7
Scope and Application:
Non-Applicability of RA 9184 and its IRR
NPM 47-2013
8
Scope and Application:
Non-Applicability of RA 9184 and its IRR
NPM 03-2014
9
Scope and Application:
Non-Applicability of RA 9184 and its IRR
NPM 10-2014
10
Scope and Application:
Non-Applicability of RA 9184 and its IRR
Engagement of Personnel under Job Order and Contract of Service
RA 9184 and its IRR will not apply in the hiring of individual
personnel under Job Order or Contract of Service :
a. The engagement does not require that level of expertise as
primary consideration for its selection,
b. It is not what is contemplated under the definition and
enumeration of what involves General Support Services and
analogous services.
NPM 15-2014
11
Scope and Application:
Expandable Supplies
Spare Parts as Expandable Supplies
NPM 14-2014
12
Scope and Application:
Procurement of Second-Hand Equipment
NPM 11-2014
13
Scope and Application:
General Support Service
NPM 82-2013
14
Scope and Application:
General Support Service
NPM 127-2013
15
Scope and Application:
Accreditation of Bidders
Accreditation System
NPM 48-2013
16
Scope and Application:
Registry System
NPM 97-2013
17
Scope and Application:
Bidders Right to Ask Questions
Protest Mechanism
Section 55 of the IRR states that prospective bidders are allowed to question
decisions of the BAC at any stage of the procurement process by filing a
request for reconsideration within three (3) calendar days from receipt of
written notice or upon verbal notification of such decision.
Clarifications
Section 22 also affords bidders the opportunity to raise concerns or
clarifications on the requirements, terms, conditions, and specifications
stipulated in the bidding documents for the contract to be bid. Questions or
clarifications pertaining to the matters that may be discussed during the pre-
bid conference must be raised at least ten (10) calendar days before the
deadline set for the submission and receipt of bids
NPM 49-2013
18
Scope and Application:
Mixed Procurement
Classification of ICT Services
NPM 88-2013
19
Scope and Application:
Mixed Procurement
Installation of air conditioning system as a Construction Activity
NPM 04-2014
20
Scope and Application:
PADPAO Rates
PADPAO rates are rates issued and prescribed by the PADPAO, an
organization of private security agencies (PSAs), in order to ensure that
its member security agencies pay uniform rates for the service of its
security guards.
NPM 91-2013
21
Scope and Application:
Extension of Mandatory Periods
NPM 57-2013
22
Scope and Application:
Trade-in Transaction
Proposal amounts to an acquisition of brand new equipment, rather
than just mere repair services, which is different from the original
procurement activity.
NPM 41-2013
23
Scope and Application:
Joint Venture Agreements
The rules for such transaction are either covered by the Joint Venture
Guidelines issued by NEDA pursuant to 8 of EO 423 (s. 2005); or by
RA 6957 (BOT Law), as amended by RA 7718.
Since the Project involves a JVA, RA 9184 and its IRR, including its
associated guidelines, such as the Guidelines on the Sale of Bidding
Documents, do not apply.
NPM 28-2013
24
Scope and Application:
Submission of Letter of Intent (LOI)
NPM 101-2013
25
Scope and Application:
Projects Partly Funded by Private Funds
NPM 44-2013
26
Scope and Application:
Grant of Honoraria
Payment of honoraria is limited to procurement that involves
competitive bidding:
o Competitive Bidding (Section 10),
o Limited Source Bidding (Section 49),
o Negotiated Procurement under Two-Failed Biddings (Section 53.1)
NPM 59-2013
27
Scope and Application:
Grant of Honoraria
Section 5 of DBM BC 2004-5A provides that the Chairs and members of the
BAC and its TWG may be paid honoraria only for successfully completed
procurement projects.
If the items awarded in the first bidding and those subject of the re-bidding
belong in the same procurement project that is identified, described, detailed,
scheduled, and budgeted for in the procuring entitys PPMP, the BAC may only
claim honoraria once all items have been successfully awarded. Hence, if the
BAC has already received its honoraria, it should no longer be entitled to claim
on the basis of the successfully awarded items during the re-bid.
The grant of honoraria shall not exceed the rates and limits prescribed in
Sections 5.3 and 5.4 of BC 2004-5A
NPM 108-2013
28
PROCUREMENT
ORGANIZATIONS
29
Procurement Organizations:
Head of the Procuring Entity
Designation as OIC, although temporary in nature, entails the assignment of
additional functions bestowed upon him functions which otherwise would
have been performed by a duly appointed regular Chief.
NPM 14-2013
30
Procurement Organizations:
BAC Functions
The BAC cannot declare a failure of bidding for reasons other than those
provided in Section 35. It cannot exercise the reservation clause provided in
Section 41 of the IRR in declaring a failure of bidding since such authority
exclusively belongs to the HOPE.
NPM 122-2013
31
Procurement Organizations:
BAC Functions
On evaluation of bids
NPM 94-2013
32
Procurement Organizations:
Qualifications of a BAC Chair
Procuring entitys compliance with the ranking requirement under
Section 11.2.2 of RA 9184 and its IRR for its BAC composition and
membership is based on the term permanent.
The term permanent, does not qualify whether the personnel
occupying the plantilla position holds the same in a contractual,
regular, or permanent status, rather the concern specifically refers to
whether the position exists within the organizational structure of the
procuring entity.
33
Procurement Organizations:
Qualifications of a BAC Chair
4th Level Official cannot be designated as BAC Chairperson
As long as the entire organizational structure has the Sr. Vice President
position in the plantilla, the Sr. Department Manager position remains a
fourth ranking plantilla position, for which reason the Sr. Department
Manager cannot be designated as BAC Chairman.
NPM 02-2014
34
Procurement Organizations:
Qualifications of a BAC Vice-Chairman
Executive Assistant of the General Manager as BAC Vice-
Chairperson
The prohibition stated in Section 11.2.5 of IRR of RA No. 9184 is limited to the
HOPE and/or approving authority wherein they cannot be the Chairman or a
member of the BAC. It is the approving authority that may be deemed the
alter-ego of the HOPE. Thus, for the Alter-Ego Principle to apply, the EA
should be the designated approving authority by the HOPE.
NPM 134-2013
35
Procurement Organizations:
Qualifications of a BAC Member
4th Level Official as BAC Member
The BAC for regional offices consists of at least three (3) regular
members, and at least two (2) provisional members. The regular BAC
members, including the BAC Chairperson, shall be at least third
ranking permanent officials.
36
Procurement Organizations:
Concurrent Positions in the BAC and its Secretariat
RA 9184 and its IRR do not categorically prohibit the HOPE from
designating the same personnel as BAC member and BAC Secretariat
Head.
NPM 001-2014
37
Procurement Organizations:
Authority of BAC Sec Head to Notarize
It is not advisable that the BAC Secretariat Head be the same Notary
Public who will notarize the ensuing contract for the project although
the BAC Secretariat Head is, technically speaking, not a party to a
contract between the procuring entity and the winning bidder.
NPM 66-2013
38
Procurement Organizations:
Authority of BAC Sec Head to Sign Document
NPM 66-2013
39
Procurement Organizations:
Authority of BAC Sec to Open and Examine Bids
NPM 69-2013
40
Procurement Organizations:
BAC Sec to Conduct Limited Source Bidding
Section 12.1 of the IRR of RA 9184 categorically vests upon the BAC the authority to
process and evaluate the procurement requirements of bidders.
The BAC Secretariat, which is tasked to assist the BAC, cannot be delegated with the
functions expressly conferred upon the BAC by RA 9184 and its IRR. An exception to
this policy was established for procurement using Shopping and Negotiated
Procurement (Small Value Procurement) under GPPB Resolution No. 09-2009 for the
reason that these particular methods of procurement are used for contracts that are of
considerably small amount and are generally simple/routinary, such that delegating
the functions to another unit will be more efficient and economical for the procuring
entity.
However, GPPB Resolution No. 09-2009 did not provide that the same exception be
applicable to LSB inasmuch as the circumstances surrounding procurement activities
using LSB are not similar to those covered by Shopping and Negotiated Procurement
(Small Value Procurement).
NPM 135-2013
41
Procurement Organization:
Provisional Member
Alter Ego principle (also Doctrine of Qualified Political Agency) falls
under the control power of the President, and dictates that department
secretaries are considered alter egos of the President.
NPM 32-2013
42
Procurement Organization:
Separate BAC
The HOPE may create a separate BAC pursuant to 11.1.2 of the IRR to
expedite the bidding of its numerous projects without the need of securing any
approval or ratification from GPPB, provided it is warranted by: the number of
the items, and the complexity of the items to be procured by the PE.
Rank requirement for BAC members provided in 11.2.2 of the IRR should
be followed in the creation of separate BACs.
NPM 04-2013
43
Procurement Organization:
Special BAC for Multi-Agency Joint Procurement
NPM 131-2013
44
Procurement Organization:
Conflict of Interest
Conflict of interest arises when, in the case of the subject matter of
the inquiry, the Chairman of the BFP-BAC that conducted the earlier
procurement was eventually designated as OIC-BFP Chief.
NPM 14-2013
45
PhilGEPS
46
PhilGEPS:
Registration
8.5.1 RA 9184 IRR requires suppliers, contractors, consultants to
register with PhilGEPS. It does not qualify based on threshold.
NPM 34-2013
47
PhilGEPS:
Registration Certificate
Although bidders are not precluded from submitting the post-qualification
documents required in 34.2 RA 9184 IRR during submission of bids, it is
prudent for the PE to request the latest and current documents during post-
qualification
NPM 19-2013
48
BIDDING DOCUMENTS
49
Bidding Documents:
Wage Adjustment in ABC
35.2 of RA 9184 IRR provides that when there is failure
of bidding, the BAC shall conduct mandatory review
and evaluation of the terms, conditions, and
specifications in the bidding documents.
Prior to the 2nd bidding, PE may modify the ABC for its
procurement of security services to incorporate the new
minimum wage rate/adjustment, subject to the necessary
approval processes in changing the APP to reflect the
revised ABC for the project.
NPM 18-2013
50
Bidding Documents:
Authorized Representative
25.2 RA 9184 IRR requires the bidder or its duly authorized
representative to issue a sworn statement that the signatory is the duly
authorized representative, and granted full power and authority to
represent the bidder.
NPM 43-2013
51
Bidding Documents:
Technical Specifications
PEs are precluded from requiring specific country of
origin as part of the technical specifications for the
project.
NPM 22-2013
52
Bidding Documents:
Net Financial Contracting Capacity (NFCC)
NOTE:
Credit Line Commitment shall no longer be accepted as an alternative to the
prospective bidders computation of Net Financial Contracting Capacity.
(GPPB Resolution 20-2013)
NPM 76-2013
53
Bidding Documents:
Net Financial Contracting Capacity (NFCC)
NFCC Computation
54
Bidding Documents:
Net Financial Contracting Capacity (NFCC)
NPM 08-2014
55
Bidding Documents:
Similar Contracts
Nature of Similar Contracts
PEs have the responsibility to clarify in the Bidding Documents what
projects can be considered similar to the contract being bid out, for
purposes of determining compliance with the SLCC requirement.
As guidance, a contract shall be considered "similar" to the contract
to be bid if it involves goods or services of the same nature and
complexity as the subject matter of the project being procured.
Similarity of contract should be interpreted liberally in the sense that it
should not refer to an exact parallel, but only to an analogous one of
similar category.
NPM 42-2013
56
Bidding Documents:
Similar Contracts
Definition or description of a similar contract should not
unreasonably limit competition and inequitably bar participation of
capable suppliers.
NPM 54-2013
57
Bidding Documents:
Single Largest and Completed Contract (SLCC)
IRR does not give the PE the option to adopt a different
criterion for eligibility.
NPM 85-2013
58
Bidding Documents:
Single Largest and Completed Contract (SLCC)
NOTE:
The 10-year limitation under Section 23.5.2.5 is no longer applicable.
(GPPB Resolution No. 11-2012, )
NPM 77-2013
59
Bidding Documents:
Single Largest and Completed Contract (SLCC)
SLCC Requirement for Small A and Small B Projects
NPM 118-2013
60
Bidding Documents:
Single Largest and Completed Contract (SLCC)
NPM 123-2013
61
Bidding Documents:
Statement of Ongoing Contracts
Bidder should submit a statement of all its on-going government
and private contracts within the relevant period stated in the Bid
Documents, including contracts awarded but not yet started, if any,
as part of the Class A Eligibility Documents.
NPM 86-2013
62
Bidding Documents:
Statement of Ongoing Contracts
Projects where a NOA has been issued, but for which no contract has
been signed yet, should be included in the statement of ongoing
government and private contracts because these are already considered
awarded contracts.
NPM 111-2013
63
Bidding Documents:
Statement of Ongoing Contracts
The statement of ongoing government and private contracts to be
submitted by the bidder should include all of its ongoing
government and private contracts, even if they are immaterial or
dissimilar to the contract to be bid.
NPM 08-2014
64
Bidding Documents:
Charging of fees
Decision in charging fees for bidding documents, whether for the
first bidding or any subsequent re-bidding, depends upon the
procuring entity, taking into account the need to recover the cost of
its preparation and development vis-a-vis the effects on competition
and participation of bidders.
However, fees must conform with the standard rates for the sale of
bidding documents under GPPB Resolution No. 04-2012, which took
effect on 4 September 2012.
NPM 68-2013
65
Bidding Documents:
Discounts
Discounts stated in the Bid Form allow bidders to itemize the
application of discounts that are not yet reflected in the amounts
specified in its BOQ and detailed estimates vis--vis the program of
works, as there could be a situation that the decision to offer a
discount came long after these amounts have been prepared,
finalized, and reflected in the bid documents, and changing the
entries may be too cumbersome and time consuming for the bidder.
Discount offered in the Bid Form may be accepted even though the
financial documents do not contain or indicate any reference to such
discount.
NPM 17-2013
66
Bidding Documents:
Discounts
Although Section 32.2.4 of the IRR does not mention the word discount, ITB Clause
27.4 of the PBDs for the Procurement of Infrastructure Projects provides that the
determination of the Lowest Calculated Bid requires the evaluation and correction for
computational errors, discounts and other modifications.
If the offered discount does not qualify the methodology of its application, it can be
presumed that the discount will apply to the whole amount of the identified bid price.
For instance, the bidders offer is PhP961,474.88, and offered a discount 5%. The total
calculated bid will be determined by deducting 5% from the bid price of PhP961,474.88.
The clause excluding any discounts offered in item (d) below found in paragraph (b)
of the Bid Form, please note that considering that discounts cannot be offered in relation
to performance security, such clause will have no effect on the computation of the bid
price vis--vis the offered discount to arrive at the total calculated bid price.
NPM 126-2013
67
Bidding Documents:
Re-advertisement of IB
Advertisement or posting requirement under 21 RA 9184 IRR
serves as a notice to bidders informing them, directly or by reference,
of the matters to be bid upon and of the time and place of receiving
bids.
NPM 46-2013
68
Bidding Documents:
Supplemental/Bid Bulletin
22.5.2 RA 9184 IRR allows PEs to issue Supplemental/Bid Bulletins
upon their initiative for the purpose of clarifying or modifying any
provision in the Bidding Documents, including the IB.
NPM 46-2013
69
Bidding Documents:
Supplemental/Bid Bulletin
Conduct of a new pre-bid conference
NPM 124-2013
70
Bidding Documents:
Supplemental/Bid Bulletin
If the procuring entity intends to postpone or reschedule the deadline for the
submission and receipt of bids, it may do so by issuing a Supplemental/Bid
Bulletin specifying the revised schedule for the procurement activity.
NPM 122-2013
71
Bidding Documents:
Supplemental/Bid Bulletin
Failure to Post
Section 22.5.3 of the IRR of RA 9184 states that [a]ny Supplemental/Bid
Bulletin issued by the BAC shall also be posted on the PhilGEPS and the
website of the procuring entity concerned, if available.
The phrase if available refers to the phrase the website of the procuring
entity, and not the PhilGEPS.
NPM 121-2013
72
Bidding Documents:
Contracts for General Support Services
Multi-Year Contract
General Appropriations Act provides that no agency shall enter into a multi-
year contract without securing a Multi-Year Obligational Authority (MYOA)
from the DBM following the provisions of Circular Letter No. 2004-12 dated 27
October 2004.
NPM 130-2013
73
Bidding Documents:
Contracts for General Support Services
Amendment of Existing Multi-Year Contract
One of the exceptions is, when during the term of the contract the
procuring entity sees the need for an increase or decrease in the
number of security guards, it may make the necessary adjustments in
the bid price provided that the resulting cost does not exceed the
Approved Budget for the Contract (ABC) for the relevant year.
NPM 05-2014
74
Bidding Documents:
Contracts for General Support Services
Extension of contract for additional guards procured through SVP
NPM 05-2014
75
Contract Implementation:
Contracts for General Support Services
Contract Extension for General Support Services of a Province
NPM 107-2013
76
Bidding Documents:
Additional Participants in Consultancy Service
Contract
Section 61.1 provides that all bid prices shall be considered as fixed prices,
and therefore not subject to price adjustment and escalation during the contract
implementation.
Section 2 of Annex F of the IRR of RA 9184 reiterates the same principle and
adds that any extension of the contract time shall not involve any additional
cost.
Clause 55.6 of the GCC of the Philippine Bidding Documents for the
Procurement of Consulting Services provides that no additional payment for
variation order, if any, shall be allowed for the consultancy contract Contract
Implementation Guidelines for the Procurement of Consulting Services.
Additional participants may be allowed provided that there will be no
increase in contract cost, otherwise it shall be considered violative of the
provisions of RA 9184, its IRR and associated issuances.
NPM 70-2013
77
Bidding Documents:
Additional Deliverables in Consultancy Contract
NPM 119-2013
78
Bidding Documents:
Modification of Bidding Documents
Modifying or Adding to the Statements in the Invitation to Bid
Procuring entities are allowed to insert any necessary information in the Invitation to
Bid as it deems relevant to the procurement project. However, such information must
conform to the Instructions to Bidders and, in particular, to the relevant information in
the Bid Data.
Clause 20.3 of the PBDs for the Procurement of Goods provides that the original and
copies of the envelopes containing the technical and financial components of the bid shall
be signed by the bidder, but is silent whether the same should be done with the single
envelope where all the envelopes containing the original and copies of the technical and
financial components of the bid are enclosed.
The instruction that all envelopes shall be duly signed in the sealed overlaps or flaps
by the bidder or duly authorized representative in order to maintain the integrity of the
documents may be considered an additional information that procuring entities may
validly include in the Invitation to Bid inasmuch as it is not contrary to the provisions of
the PBDs.
NPM 102-2013
79
Bidding Documents:
Modification of Bidding Documents
Change in Project Site
The change in the project site after the issuance of Notice of Award
amounts to modification of bidding documents and it is not allowed
under RA 9184 and its IRR.
NPM 90-2013
80
Bidding Documents:
Source of Funds
NPM 78-2013
82
Bidding Documents:
Bill of Quantities
Unless the Instructions to Bidders allow partial bids, bids that do not
address or provide all the required items or where no price was
indicated in the Bidding Documents, including bill of quantities, shall
be considered non-responsive, and thus, automatically disqualified.
NPM 80-2013
83
Bidding Documents:
Bid Securing Declaration
Section 27.2 gives bidders the option to choose from the
acceptable forms of Bid Security, including the Bid Securing
Declaration.
NOTE:
Bid Securing Declaration as an additional form of bid security
(GPPB Resolution 03-2012)
NPM 85-2013 84
BIDDING PROCEDURES
85
Bidding Procedures:
Pre-Qualification
NPM 54-2013
86
Bidding Procedures:
Pre-Bid Conference
Section 22.1 of the IRR of RA 9184 provides that at least one (1) pre-bid
conference should be conducted by the procuring entity for projects costing
at least PhP1 Million, in order to afford prospective bidders the opportunity
to inquire on or clarify any of the requirements, terms, conditions, and
specifications stipulated in the Bidding Documents.
NPM 48-2013
87
Bidding Procedures:
Refusal to Accept a Bid
Procuring entity cannot validly and legally refuse to
accept a bid submitted before the deadline for the
submission indicated in the RFQ. This shall open a ground
for the aggrieved bidder to file a request for
reconsideration and, subsequently, protest as provided in
Section 55 of RA 9184 and its IRR, without prejudice to the
institution of civil, administrative and/or criminal actions
against the erring officials under applicable laws and rules.
NPM 67-2013
88
Bidding Procedures:
Bid Opening
BAC should open a reconsidered bid under the same
circumstances as it opened the bids that were not
disqualified, i.e., upon a duly scheduled opening of bid
with proper notices to the concerned entities.
NPM 69-2013
89
Bidding Procedures:
Opening of a Reconsidered Bid
Section 30 requires that the preliminary examination of bids be
conducted by merely checking for the presence or absence of
documentary requirements using a non-discretionary pass/fail
criterion.
NPM 54-2013
90
DETAILED EVALUATION
OF BIDS
91
Detailed Evaluation of Bids:
Arithmetical Corrections
The process of rounding off numbers may be construed as an arithmetical
correction which may be done during the evaluation of bids for the
determination of the LCB. However, the details on how the prices should be
rounded off should be clearly stated by the procuring entity in its Invitation
to Bid (IB), and applied similarly to all bids so as to ensure that bids are
evaluated on equal footing, to ensure fair and competitive bid evaluation
Item 7, IB for Goods; Item 8, IB for Infrastructure Projects.
Having made the arithmetical correction, and the bidder with the LCRB
fails, refuses or is unable to enter into contract with the procuring entity
and furnish the required performance security within ten (10) calendar days
from receipt of the notice of award, the bid security shall be forfeited and
appropriate sanctions provided in the IRR and existing laws shall be
imposed
NPM 125-2013
92
Detailed Evaluation of Bids:
Valid PCAB License
The submission of a PCAB license with validity period after the date
of the opening of the bids is a ground for the prospective bidders
disqualification
NPM 71-2013
93
Detailed Evaluation of Bids:
PCAB License for JV
JV Bidders are required to submit a Joint License issued by the
PCAB in compliance with the eligibility requirement for a valid
PCAB license and registration.
NPM 17-2013
94
Detailed Evaluation of Bids:
Audited Financial Statement
Failure to submit documents or the submission of an otherwise
incomplete or patently insufficient AFS will disqualify the bidder based on
the non-discretionary pass/fail criterion under Section 30.1 of the IRR.
AFS must comply with the requirements under Section 23.1(a)(v) of the
IRR of RA 9184, namely, (i) showing the prospective bidders current assets
and liabilities, (ii) stamped received by the BIR or its duly accredited and
authorized institutions, and (iii) for the preceding calendar year which
should not be earlier than two (2) years from the date of bid submission.
The term earlier means that if the bid submission date is on 2013, an
AFS for the year 2011 can be considered compliant, provided that such AFS
is the most recent document that can be produced by the bidder without
fault or delay on its part in filing the same with the BIR.
NPM 103-2013
95
Detailed Evaluation of Bids:
Equivalent Document
Foreign bidders may substitute eligibility documentary
requirements with the appropriate equivalent documents in their
country.
NPM 42-2013
96
Detailed Evaluation of Bids:
Track Record
Construction experience/track record of a sole proprietor,
cannot be carried over to a corporation despite the fact that
the sole proprietors assets, personnel and other resources
have been infused into the corporation inasmuch as the
latter has a separate and distinct juridical personality from
the former.
NPM 31-2013
97
Detailed Evaluation of Bids:
Track Record
NPM 40-2013
98
Detailed Evaluation of Bids:
Compliance with DOLE DO 18-A
NPM 29-2013
99
Detailed Evaluation of Bids:
No Contact Rule
The no contact rule applies only to those whose bids are being
evaluated by the BAC after passing the preliminary examination.
NPM 07-2013
100
Detailed Evaluation of Bids:
Sealing and Marking of Bids
Since the rule and the ITB Clauses 20.1 and 20.2 use the
word shall, connoting command and compulsion, the
requirements on sealing and marking of bids are
regarded as mandatory.
NPM 36-2013
101
Detailed Evaluation of Bids:
Discrepancies in Bid Price
NPM 51-2013
102
Detailed Evaluation of Bids:
Nature of Bidders Business
NPM 36-2013
103
Detailed Evaluation of Bids:
Conflict of Interest
GPM provides that the firm that has been engaged to provide
consulting services for the preparation or implementation of a
project, and each of its affiliates, will be disqualified from
subsequently providing goods, works, or services resulting from or
directly related to the firms consulting services for such preparation
or implementation.
NPM 10-2013
104
Detailed Evaluation of Bids:
Functional Testing
The product testing, during which the procuring entity may conduct
the functional test and other test parameters is done during the
post-qualification stage. Thus, before BAC could even conduct the
product testing, it should first ensure that the bidder who will
undergo post-qualification has submitted all the legal, technical, and
financial requirements, and declared as the LCB/HRB.
NPM 106-2013
105
POST-QUALIFICATION
106
Post-Qualification:
Requiring Additional Documents
PE may request for the submission of additional documents from
the bidder in support of the information it has provided in the
bidding documents.
NPM 25-2013
107
Post-Qualification:
Submission of Additional Requirements
The three (3) calendar day period under 34.2 of the
IRR is mandatory and should not be extended.
NPM 27-2013
108
Post-Qualification:
Additional Eligibility Requirements
Procuring entities are proscribed from requiring
additional eligibility requirements because the list of
minimum eligibility requirements has been
streamlined/simplified such that only those
requirements enumerated in Sections 23.1, 24.1, and 25.1
of the IRR of RA 9184 are necessary for purposes of
determining a bidders eligibility.
NPM 53-2013
109
Post-Qualification:
Tax Returns
BDS Clause 29.2(b), provides that the option of allowing submission
of manually filed tax returns should be exercised by the PE by
specifying so in the Bidding Documents. (Amended by GPPB Resolution
11-2013)
NPM 01-2013
NOTE:
Mandatory requirement for the filing of tax returns and payment of
taxes through the EFPS. (GPPB Resolution 11-2013)
110
Post-Qualification:
Submission of Tax Clearance
EO 398 specifically requires the submission of Tax
Clearance issued by the BIR. It refers to the clearance
issued by the Collection Enforcement Division of BIR
attesting that the bidder has no outstanding Final
Assessment Notice and/or delinquent account.
NPM 02-2013
111
Post-Qualification:
Submission of Tax Clearance
Submission of BIR receipt for renewal of Tax Clearance will not
suffice in lieu of a valid Tax Clearance Requirement since
substitution is not allowed under Section 34.2 of the IRR of RA 9184.
NPM 48-2013
112
Post-Qualification:
Submission of Tax Clearance
Submission of a Tax Clearance must be required and
must be indicated in the invitation to negotiate and
submitted along with the proposals or quotations;
otherwise disqualification is in order.
NPM 65-2013
113
Post-Qualification:
Tax Clearance of Foreign Bidder
Under 24.1(b) of the IRR, each JV partner shall submit the legal
eligibility documents under 24.1(a) and (b), and documentary
legal requirements for post-qualification under 34.2 of the IRR.
NPM 02-2013
114
Post-Qualification:
Submission of Certified True Copies
NPM 133-2013
115
Post-Qualification:
Observers Participation
13 of RA 9184 expressly states that the BAC shall, in "all stages of
the procurement process", invite Observers to sit in the proceedings.
NPM 05-2013
116
Post-Qualification:
Submission of Sample
In the event that a sample product, indicating its brand
and model, has to be submitted, this requirement must be
clearly specified in the bidding documents. Absent any
clear requirement regarding the matter, the procuring
entity has no basis to disqualify the bidder.
NPM 49-2013
117
Post-Qualification:
End User Complaint
NPM 24-2013
118
Post-Qualification:
Tie-Breaking Method
NPM 51-2013
119
Post-Qualification:
Post-qualification Team
Neither RA 9184 nor its IRR provide for the establishment of a post-
qualification team that is separate and distinct from the BAC, since
the responsibility and authority of conducting the post-qualification
is categorically delegated to the BAC under Section 12.1 of the IRR
of RA 9184.
NPM 117-2013
120
Post-Qualification:
Internal Post-Qualification Procedures
Procuring entity may adopt internal procedures on how it will conduct the
post-qualification in a manner that it deems effective in establishing the
responsiveness of the bidder with the requirements, and at the same time,
reliable in impressing upon the procuring entity the confidence of and
certainty in declaring the bidder as having submitted the Lowest Calculated
Responsive Bid.
NPM 114-2013
121
Post-Qualification:
Certification of Domestic Preference
PEs cannot require a bidder to submit a Certificate claiming domestic
preference as this is not an eligibility requirement and not among those
expressly required and enumerated by the IRR.
If a bidder wishes to claim domestic preference, it should include
said Certification as among the documents in the Second Envelope,
forming part of the Financial Component of the bid.
NPM 79-2013
122
AWARD OF CONTRACT
123
Award of Contract:
Performance Security
Submission by the winning bidder of a Performance Security in the
form of a personal check after the signing of the contract could be
considered as a failure to post the Performance Security in the required
form under 39.2 of the IRR and in the required period for posting
under 37.1.4(b) of the IRR.
NPM 35-2013
124
Award of Contract:
Higher Approving Authority
37.3 of RA 9184 IRR recognizes that there are decisions on
procurement activities that may require further approval by higher
authority.
NPM 14-2013
125
Award of Contract:
Authorization from the Sangguniang Bayan
NPM 17-2014
126
ALTERNATIVE METHODS OF
PROCUREMENT
127
Alternative Methods of Procurement:
NGO Participation
When there is no appropriation law or ordinance that earmarks an amount
for projects to be specifically contracted out to NGOs, procuring entities cannot
resort to Negotiated Procurement (NGO Participation) and use the Guidelines
for the selection of the supplier, contractor, or consultant that will perform the
project.
PE cannot limit its selection process to NGOs when the same condition for a
specifically earmarked budget is wanting. The general rule on public or
competitive bidding provided in Section 10 of RA 9184 and its IRR will apply,
and the selection of the supplier, contractor, or consultant for the project shall
be open to all entities allowed under Sections 23 and 24 of the same law and
rules.
NPM 137-2013
128
Alternative Methods of Procurement:
NGO Participation
Posting of Performance Security
NPM 120-2013
129
Alternative Methods of Procurement:
Negotiated Procurement (Procurement Agent)
Where a PE has determined that it lacks the proficiency or capability
to undertake its rehabilitation project, which need not be based
solely on the PEs failure to constitute its BAC, the PE may request
another government agency to be its Procurement Agent as Section
53.6 of the IRR may also apply in cases where a BAC is validly
constituted, but due to the number of bidding activities to be
undertaken by the procuring entity; magnitude and complexity of
the project; experience of the members of the BAC; location and
situs of both the principal and the agent; and, other valid and
reasonable circumstances, the procuring entity may not have the
proficiency or capability to undertake the particular procurement
activity.
NPM 38-2013
130
Alternative Methods of Procurement:
Negotiated Procurement (Procurement Agent)
The member-offices may agree with the procurement agent to assign its officials as part
of the Technical Working Group that will assist the BAC of the procurement agent in the
procurement activity in order to ensure that the views of member-offices are taken into
consideration.
Each member-office has the authority to approve the award of contract that will be
recommended by the BAC of the procurement agent, thereby maintaining the power to
make the final decision on the process.
NPM 131-2013
131
Alternative Methods of Procurement:
Negotiated Procurement (Two-Failed Bidding)
NPM 109-2013
132
Alternative Methods of Procurement:
Negotiated Procurement (Two-Failed Bidding)
NPM 72-2013
133
Alternative Methods of Procurement:
Negotiated Procurement (Two-Failed Bidding)
Minimum Number of Contractors Engaging in Negotiation
Section 53.1.2 of the IRR of RA 9184 provides that where there has been a
failure of public bidding for the second time, the BAC shall invite and engage
in negotiations with a sufficient number of suppliers, contractors or
consultants to ensure effective negotiations.
NPM 136-2013
134
Alternative Methods of Procurement:
Adjustment of ABC after Two-Failed Bidding
After two failed biddings under Section 35 of the IRR, and the PE
decides to resort to Negotiated Procurement (Two-Failed Biddings),
Section 53.1.1 of the IRR requires the BAC to conduct a mandatory
review of the terms, conditions, specifications, and cost estimates; and,
when necessary, increase the ABC provided that it is not more than
twenty percent (20%) of the ABC for the last failed bidding.
NPM 93-2013
135
Alternative Methods of Procurement:
Negotiated Procurement (Adjacent or Contiguous)
The determination and the decision to resort to the alternative
modality of Negotiated Procurement (Adjacent or Contiguous) under
Section 53.4 of IRR of RA 9184 is subject to the prior approval of the
HOPE upon favorable recommendation of the BAC, provided that the
conditions set forth therein are present.
136
Alternative Methods of Procurement:
Negotiated Procurement (Adjacent or
Contiguous)
Use of the Same Prices or Lower Unit Prices
Section 53.4 of the IRR stating that the contractor/consultant shall use
the same or lower unit prices as in the original contract, applies only to
the scopes of work that are present in both projects and should not be
interpreted as a qualification that only adjacent or contiguous projects
that have the exact same scopes of work shall be acceptable.
NPM 112-2013
137
Alternative Methods of Procurement:
Negotiated Procurement (Adjacent or Contiguous)
Submission of Offer by the Original Contractor
NPM 112-2013
138
Alternative Methods of Procurement:
Negotiated Procurement (Agency-to-Agency)
Non-chartered GOCCs as Servicing Agency
NPM 110-2013
139
Alternative Methods of Procurement:
Negotiated Procurement (Agency-to-Agency)
PITC Pharma, Inc. (PPI) has been given express mandate to be the
central/lead agency for procurement of all government agencies
requirements for drugs and medicines pursuant to RA 9501.
NPM 37-2013
140
Alternative Methods of Procurement:
Negotiated Procurement (Agency-to-Agency)
NPM 62-2013
141
Alternative Methods of Procurement:
Negotiated Procurement (Agency-to-Agency)
142
Alternative Methods of Procurement:
Negotiated Procurement (Emergency Cases)
GPPB Resolution No. 34-2013
GPPB Resolution No. 34-2013 dated 14 November 2013, has granted authority to all
concerned government procuring entities to procure goods and infrastructure projects,
for the purpose of providing rescue, recovery, relief, and/or rehabilitation efforts for, and
to continue to provide basic services to victims in areas affected by Typhoon Yolanda,
through Negotiated Procurement (Emergency Cases) under Section 53.2 of the IRR of RA
9184 with an ABC of at least Five Hundred Million Pesos (PhP500,000,000.00) for the
duration of the State of Calamity until lifted by the President pursuant to Proclamation
No. 682, Series of 2013.
The same GPPB Resolution requires all concerned procuring entities to submit to this
office a list of all transactions covered by the grant of authority at the end of every month.
NPM 107-2013
143
Alternative Methods of Procurement:
Negotiated Procurement (Emergency Cases)
GPPB Resolution No. 34-2013
NPM 06-2014
144
Alternative Methods of Procurement:
Direct Contracting
Since there are other Passport Readers available in the market apart
from that manufactured by 3M Corporation, Direct Contracting
cannot be utilized for the acquisition of brand new passport readers.
NPM 41-2013
145
Alternative Methods of Procurement:
Direct Contracting
Assuming that only one supplier has been given a certification by PTRI for
being compliant to RA 9242, it does not automatically provide a basis to
resort to direct contracting.
146
Alternative Methods of Procurement:
Extension of Lease of Office Space
PE may extend the duration or effectivity of contracts of lease of office
space that are about to expire, for a period not exceeding one (1) year, as an
emergency measure to maintain status quo in its operations and to avoid
interruption of such services that are essential, indispensable, or necessary
to support the operations of PE.
In the event of failure of bidding for the new contract, PE may further
extend the duration of the contract provided that the aggregate period of all
extensions shall not exceed one (1) year in accordance with Section 4.1 of
the Guidelines.
NPM 132-2013
147
Alternative Methods of Procurement:
Direct Transaction in Lease of Office Space
There are only two modalities that would permit direct transaction
with a building owner without need of inviting other owners, i.e.,
Negotiated Procurement (Emergency Cases) under Section 53.2 and
Negotiated Procurement (Take Over of Contracts) under Section 53.3.
NPM 113-2013
148
Alternative Methods of Procurement:
Repeat Order
NPM 13-2013
149
Alternative Methods of Procurement:
By Administration
NPM 12-2014
150
Alternative Methods of Procurement:
LSB for the Procurement of Catering Services
NPM 61-2013
151
Alternative Methods of Procurement:
LSB for the Procurement of Utility Motor Vehicle
Section 49 of the IRR provides that LSB may be resorted to only
under two possible conditions:
152
CONTRACT IMPLEMENTATION
153
Contract Implementation:
Notice to Proceed
PE cannot forego the issuance of the Notice to Proceed (NTP) for
the procurement of goods and services based on the claim that the
issued Purchase Order or Job Order already contains the conforme of
the winning supplier and indicates the delivery date, which in effect
authorizes the supplier to proceed and deliver the required goods
and services.
NPM 87-2013
154
Contract Implementation:
Advance Payment
Advance payment in case of infrastructure projects may be granted
by the procuring entity upon compliance with the conditions
provided in Section 4 of the Guidelines and only for the purpose of
mobilization.
Thus, if the contractor has already mobilized its equipment and has
commenced with the required works under the contract, advance
payment can no longer be provided as doing so already negates the
very purpose of granting such privilege to the contractor.
NPM 56-2013
155
Contract Implementation:
Warranty Security for Janitorial Services
Interpretation and application of the clauses of the PBDs are to be
read together and in accordance with RA 9184 and its IRR. GCC
Clauses 17.1 to 17.5, should be read in consonance with Section 62.1
of the IRR of RA 9184
NPM 64-2013
156
Contract Implementation:
Variation Order
Deletion of Work Through Variation Order
Section 1.1 of Annex E of the IRR of RA 9184 provides that the scope of works
shall not be reduced so as to accommodate a Positive Variation Order. In
addition, the Manual of Procedures for the Procurement of Infrastructure
Projects provides that the addition/deletion of works should be within the
general scope of the project as bid and awarded, and the deletion of the work
should not affect the integrity and usefulness of the structure.
It should be satisfactorily shown that the suggested deletion will not affect the
integrity and usefulness of the structure, why it is no longer necessary and was
not meant to accommodate a Positive Variation Order.
It is also necessary to verify whether the claim was made within the
applicable time required under Section 1.5 of Annex E of the IRR of RA 9184.
NMP 84-2013
157
PROTEST MECHANISM
158
Protest Mechanism:
Rationalized Protest Fee
NPM 39-2013
159
Protest Mechanism:
Protest Fee
NPM 39-2013
160
Protest Mechanism:
Remedy Pending Protest
Only upon the final resolution of the protest can the aggrieved party be
said to have exhausted the available remedies at the administrative
level. In other words, only then can he viably avail of the remedy
of certiorari before the proper courts. Non-compliance with this statutory
requirement, under Section 58 of R.A. No. 9184, constitutes a ground for
the dismissal of the action for lack of jurisdiction.
(Dimson (Manila), Inc. and Phesco, Inc. v. Local Water Utilities Administration)
NPM 116-2013
161
BLACKLISTING
162
Blacklisting:
Applicability
Section 2 of the Guidelines expressly provides that the Blacklisting
Order shall apply to all the JV partners as they are treated collectively
as one bidder.
NPM 23-2013
163
Blacklisting:
Applicability
Affiliate Company
Affiliate/sister company of a blacklisted bidder may only be considered as
blacklisted upon determination by the procuring entity that the blacklisted
entity has that degree of relationship or extent of representation mentioned in
Section 2 of the Guidelines existing in the affiliate/sister company.
If the blacklisted entity and its affiliate/sister company are sole
proprietorships owned by the same person, the blacklisting order applies to the
affiliate/sister company since a sole proprietorship does not have a separate
juridical nor legal personality from its owner, and it is thru the individual
doing business under the name and style of the sole proprietorship who would
in effect be blacklisted under the Guidelines.
In this regard, the blacklisted person remains blacklisted regardless of the
name and number of sole proprietorships registered under her name, and
shall not be allowed to participate in the bidding of all government projects
during the period of disqualification unless delisted as provided for in the
Guidelines.
NPM 92-2013
164
Blacklisting:
Applicability
Forfeiture of Performance Security Prior to Award of NOA
NPM 98-2013
165
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166