Transcript Presentation for Regional Visits

BIDDING PROCEDURES
FOR
THE PROCUREMENT OF
GOODS
AND
INFRASTRUCTURE PROJECTS
PRE-PROCUREMENT
CONFERENCE

General purpose:
Determine readiness of procurement and criteria



Conducted prior to advertisement/posting of the
ITB/REI
Mandatory – above Php. 2 M (Goods)
- above Php. 5 M (Infra)
Attended by the ff:
a) BAC
b) TWG
c) Consultants
d) BAC Secretariat
e) End-user unit/Other officials
Bidding Process
Advertise/
Post
Invitation to
Bid
Bid
Submissio
n
Bid Evaluation
Distribution
of Bid Docs
Pre-Bid
Conference
Opening of
Opening of
Technical Proposal
Financial Proposal
(incl. eligibility docs)
Post-qualification
3 months
Contra
ct
Award
ADVERTISEMENT/POSTING OF THE
INVITATION TO BID




IAEB to Invitation to Bid (goods and infra) or Request
for Expression of Interest (consulting)
Includes posting in the website prescribed by the
foreign government/foreign or international financing
institution, for foreign-funded procurement
Posting at PE’s internet service provider’s website not
necessary
Posting requirements for alternative methods of
procurement was transferred to Sec. 54.2
4
ADVERTISEMENT/POSTING
OF THE
INVITATION TO BID
Medium
Newspaper
PhilGEPS
Website of Procuring
Entity
Conspicuous place
≤ 2 M (goods)
≤ 5 M (infra)
2 M (goods)
> 5 M (infra)
Frequency


Once in 1
newspaper

Continuously
Until Bid
Submission

Continuously
Until Bid
Submission

Continuously
Until Bid
Submission



DISTRIBUTION

OF
BID DOCS
Distribution of Bidding Documents
Deleted provisions on the bidder’s responsibilities
under Sec. 17.7 & transferred to PBDs

Period for the availability of bidding documents

Goods & infra projects
IB’s date of advertisement - bid submission

4th Edition of Standard Bidding Documents

-
-
approved by the GPPB through Res. No. 06-2010, dated 17
December 2010
Mandatorily to be use last 21 February 2011.
DISTRIBUTION

OF
BID DOCS
Distribution of Bidding Documents




Post at the PE’s website and at the PhilGEPS from the
time the ITB/REI is advertised.
Prospective
documents
bidders
may
download
the
bidding
Pay the bid fee upon bid submission
Cost for the sale of bidding shall be in a reasonable
amount to recover the cost of its preparation and
development.
PRE-BID CONFERENCE

Forum where the PE’s representatives & the bidders
discuss the different aspects of the project

Mandatory – ABC 1M or more; Discretionary – ABC less
than 1M



Statements made during the conference should be
included in the Supplemental/Bid Bulletin in order to be
considered as modifications to the terms of the bid docs
Held at least 12 cd before deadline for bid submission.
May be extended to at least 30 cd considering:

Method, nature, and complexity of contract

International participation is more advantageous
At the option of procuring entity, only bidders who
purchased bid documents are allowed to attend or ask
questions
SUPPLEMENTAL BID BULLETIN





Request for clarifications must be submitted at least 10
cd before bid submission
Supplemental/Bid Bulletins must be issued at least 7 cd
before bid submission to answer requests for
clarification/interpretation, and upon BAC’s initiative to
clarify/modify any bid docs’ provision
Posted in PhilGEPS and PE’s website
Supplemental Bid Bulletin shall be duly signed by the BAC
Chairperson
Bidders who have submitted bids before issuance of
Supplemental/Bid Bulletin have to be informed in writing
and allowed to modify/withdraw their bids.
OPENING & EVALUATION OF BIDS




Goods and Infra:
Two-Envelope System

1st Envelope - Eligibility Req. & Technical Component

2nd Envelope – Financial Component
Submitted to the BAC on the date, time, and place
specified in the Invitation to Bid.
Bids submitted
accepted
after
the
deadline
should
not
be
OPENING AND EVALUATION OF BIDS


Date of submission should not be later than the following
period from the last day of posting of the Invitation to Bid
Category
Maximum Period (cd)
Goods
45
Infra (50M and below)
50
Documentary requirements trimmed down
OPENING & EVALUATION OF BIDS



A bidder may modify or withdraw its bid provided this is
done before the deadline for the submission and receipt of
bids
Bid modifications received after the deadline shall not be
considered and shall be returned to the bidder unopened.
Withdrawal of bids after the applicable deadline shall be
subject to appropriate sanctions
OPENING & EVALUATION OF BIDS

Contents of the 1st Envelope (Technical Component)
1.
2.
3.
Eligibility requirements
Bid security
Goods - Technical specifications
- production/delivery schedule;
- manpower requirements; and/or,
- after-sales service/parts
Infra - Project Requirements
- Organizational chart;
- List of contractor’s personnel; and;
- List of contractor’s equipment units)
OPENING & EVALUATION OF BIDS

Contents of the 1st Envelope (Technical Component)
4. Omnibus sworn statement

Non-inclusion in blacklist

Authenticity of documents

Verification authority

Signatory’s authority

Disclosure of relations

Responsibilities of bidders

Labor laws and standards
ELIGIBILITY REQUIREMENTS


Reduced to 5-6 documents
Others to be submitted during –
 Post-qualification
 Prior to Award of Contract
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ELIGIBILITY REQUIREMENTS
Class “A” Eligibility Documents
GOODS
INFRASTRUCTURE
1. DTI/SEC/CDA Registration or
other proofs of registration,
expressly enumerated in bid
docs
1. DTI/SEC/CDA Registration or
other proofs of registration
expressly enumerated in the bid
docs
2. Mayor’s permit from principal
place of business
2. Mayor’s permit from principal
place of business
3. Statement of all ongoing &
completed contracts
3. Statement of all ongoing &
completed contracts
4. Audited financial statement
4. Valid PCAB license & registration
5. NFCC computation or CLC
5. Audited financial statement
6. NFCC computation or CLC
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ELIGIBILITY REQUIREMENTS
Class “B” Eligibility Documents

If Joint Venture  JVA or sworn statements by each partner that
they will enter into and abide by provisions of the
JVA if awarded the contract



Each JV partner shall submit the legal eligibility
docs.
Submission of the technical and financial
eligibility docs. by any of the JV partners
constitutes compliance
Failure to enter into a JV in the event of contract
award shall be a ground for bid security
forfeiture.
ELIGIBILITY CRITERIA

Legal Eligibility Criteria – Goods (Sec. 23)


General rule: 60% Filipino
Foreign bidders eligible allowed –
 If stated in treaty or international or executive
agreement
 National of a country offering reciprocity rights
to Filipinos
 Goods not available from local suppliers
 To prevent situations that defeat competition
or restrain trade
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ELIGIBILITY CRITERIA

Legal Eligibility Criteria - Infra (Sec. 23)



General rule: 75% Filipino (LOI 630)
Foreign contractors allowed if stated in treaty or
international or executive agreement
If joint venture, less than 75% is allowed if
 Structures to be built require techniques not
possessed by 75% Filipinos
 Not less than 25% Filipino
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ELIGIBILITY CRITERIA

Technical Eligibility Criteria – Goods (Sec. 23)
General Rule
1. Expendable
Supplies
• 25% of the
ABC
2. Services and
Non-expendable
Supplies
• 50% of the
ABC
Exceptions
Require the ff.:
If, at the outset and
after market research,
applying the general
rule will likely result
to:
a) At least 2 similar
contracts
aggregate
amount at least
equivalent to
required
1.Failure of bidding; or
percentage; and
2.Monopoly
b) Largest of the
similar contracts
amounts to at
least 50% of
required
percentage
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ELIGIBILITY CRITERIA

Technical Eligibility Criteria - Infra (Sec. 23)





Track Record: Single Largest Contract
 Retain at 50%
 But w/in 10 yrs from bid submission
Contractors under Small A and B categories w/out similar
experience on the contract may bid if the contract cost is
not more than 50% of the ARCC of their registration.
PCAB License (RA 4566) to engage or act as a contractor
Satisfactory CPES Rating and/or certificate of completion
and owner’s acceptance
Contract shall be considered “similar” if it has the same
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major categories of work
ELIGIBILITY CRITERIA

Financial Eligibility Criteria – Goods and Infra (Sec. 23)



NFCC at least equal to ABC
CLC at least equal to 10% of ABC
 Issued by Universal or Commercial Bank
 For LGUs: other banks certified by BSP as
authorized to issued said CLC
Option to submit cash deposit certificate deleted
22
OPENING & EVALUATION OF BIDS

Contents of the 2nd Envelope (Financial Component)
1.
2.
3.
Financial Bid Form (includes bid prices and bill of
quantities, as well as applicable price schedules)
In case of Goods, Certification from the DTI, SEC, or
CDA, if claiming preference as Domestic Bidder or
Domestic Entity
Other documents required in the bidding documents
BID & PERFORMANCE SECURITY

Deleted certified check and foreign
guarantee from acceptable forms

In general, bank issued securities must be issued by a
universal/commercial bank


government
However, in biddings conducted by LGUs, securities may
be issued by banks certified by BSP as authorized to
issue said instruments
Surety Bonds must be accompanied by certification
from Insurance Commission that issuer is authorized
to issue such security

Bidder has option to choose among acceptable forms
of security

Procuring entity may not limit options available to
bidders
BID & PERFORMANCE SECURITY
Form of Bid and
Performance
Security
a)Cash or
cashier’s/manager’
s check
b)Bank
guarantee/draft or
Irrevocable LC
c)Surety bond
callable upon
demand
d)Combination of
the foregoing
Amt of Bid
Security
(% = ABC)
Amt of Performance
Security
(% = Contract Price)
2%
5% (Goods & Consulting)
10% (Infra)
5%
30%
Proportionate to share of form with respect
to the total amount of security
DETAILED EVALUATION OF BIDS



No contact rule

BAC, thru Secretariat, may request for clarification
of bid as long as it is in writing
Determine the LCB by
1.
Establishing correct calculated prices of bids; and
2.
Ranking calculated total bid prices from lowest to
highest
A non-discretionary criteria shall be used, which shall
include consideration of:
1.
completeness of bids; and
2.
minor arithmetical corrections

7 cd from the deadline for receipt of proposals.

In the case of infra. Proj. costing 50M and below – 5 cd
DETAILED EVALUATION OF BIDS


In case of discrepancies, the ff. shall prevail:

words over figures

unit prices over total prices

bill of quantities over detailed estimate
Unless the ITB specifically allows partial bids, those
not providing all required items shall be considered
non-responsive

Placing no price is considered as non-responsive

Specifying a “0” or “-” means it is offered for free
POST-QUALIFICATION
Verify, validate and ascertain the following:




Legal Requirements
1.
licenses and agreements
2.
legal documents under eligibility envelope
Technical Requirements
1.
sufficiency of the bid security as to type, amount,
form wording and validity period
Financial Requirements
1.
bid price proposal
2.
NFCC computation
3.
credit line or cash deposit certificate, to ensure that
bidder can sustain the operating cash flow
transaction
Completed in 7 cd. But, may be extended by the HOPE
to not more than 30 cd
POST-QUALIFICATION

3 days from notice of LCB, submit the ff:
 Tax clearance
 Latest income and business tax returns
 Certificate of PhilGEPS registration
 Other appropriate licenses & permits required by
law & stated in the Bid Docs.
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DISCLOSURE OF RELATIONS

Disclosure of Relations (Sec. 47)

Relatives within the 3rd civil degree of the following
shall be disqualified:
 Head of the procuring entity
 Members of the BAC, Secretariat and TWG
 Head of the end-user unit/PMO
 Project consultants
ISSUANCE OF NOTICE OF AWARD

Contract shall be awarded to the bidder with the LCRB
or SCRB at its submitted price or total calculated bid
price, whichever is lower

Notice of Award (NOA) is issued by the HOPE

NGAs and LGUs – 7 cd


NOA conditioned on the following:

If joint venture, submission of JVA

If foreign-funded and stated in treaty, international
or executive agreement, PCAB License

Posting of Performance Security

Signing of Contract (within 10 cd)

If required, approvals by higher authority
3 mos. - procurement process from opening of bids up
to award of contract or a shorter period
ISSUANCE OF NOTICE OF AWARD

NOA posted within 3 cd from its issuance in the
following:
a) PhilGEPS website;
b) PE’s website; and
c) Conspicuous places
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CONTRACT SIGNING

Contract Signing (Sec. 37.2)

Within 10 cd from receipt of NOA

Mandatory submission of other contract documents that
may be required by existing laws and/or the PE (infra):
a)
Construction schedule and S-curve;
b)
Manpower schedule;
c)
Construction methods;
d)
Equipment utilization schedule;
e)
Construction safety and health program
approved by DOLE; and,
f)
PERT/CPM
33
NOTICE TO PROCEED




Issued to the successful bidder together with the copy
of the approved contract within 3 cd from date of
approval
For infrastructure projects with ABC of 50M and below,
the maximum period is 2 cd
Contract effectivity date should be provided in the NTP,
which should not be later than 7 cd from its issuance
BAC Secretariat should post a copy of the NTP and the
approved contract in the PhilGEPS and PE’s website
within 15 cd from issuance of NTP
FAILURE



OF
BIDDING
BAC shall declare a failure of bidding when
 No bids are received
 All bidders are declared ineligible
 All bids fail to comply with the bid requirements or fail
post-qualification
 LCRB/HRRB refuses, without justifiable cause, to
accept award of contract and no award is made
Mandatory review after each failed bidding. Based on
findings
 Revise terms, conditions, specifications
 Adjust ABC, subject to required approvals
Rebid, with re-advertisement/posting
PROCUREMENT
OF GOODS
AND INFRA PROJECTS
Procurement Timelines
36
PROCUREMENT TIMELINES

Timelines for the Procurement of Goods (Annex C) –
Latest Allowable Time
PROCUREMENT TIMELINES
Timelines for the Procurement of Infrastructure Projects
with an ABC of Php. 50 Million and below (Annex C) –
Latest Allowable Time
PROCUREMENT TIMELINES
Timelines for the Procurement of Goods and
Infrastructure Projects (Annex C) – Earliest Possible
Time
PROCUREMENT
OF GOODS
AND INFRA PROJECTS
Contract Implementation
40
WARRANTY SECURITY (GOODS)
Type
Expendable
Period
3 mos.,
unless earlier
consumed
Nonexpendable
1 year
Services
None
Form
Percentage of
Contract Price
Special bank
guarantee or
Retention
money
10%
None
None
WARRANTY SECURITY (INFRA)
Form of Warranty Security
Amt of Warranty Security
(% of Contract Price)
a) Cash or LC from a
Universal/Commercial Bank
5%
b) Bank guarantee from
Universal/Commercial Bank
10%
c) Surety bond callable upon
demand issued by GSIS or a
surety/insurance company
certified by the Insurance Comm.
30%
WARRANTY SECURITY (INFRA)

Warranty Security – Infra (Sec. 62)
 Warranty
period vs. Warranty security period
 Warranty security period reduced to 1 year from
issuance of the Certificate of Final Acceptance
 Liability per stage
 From
project construction to final acceptance
 From project completion to final acceptance
 From final acceptance to warranty security period
PRECON
IMPLEMENTATION
Defect /
Period
liability
Period
WARRANTY
Period
Period
PLAN /
BUDGET
BID
PERFORMANCE
WARRANTY
Security
Security
Security
START
COMPLETE
• CARI
End of
WS
ACCEPT
1 yr
1 yr
• Payments
- Advance
- Progress
- Final
- Retention money
PROJECT CYCLE / MILESTONES
END
LIQUIDATED DAMAGES

GOODS :
 Supplier
Fails to perform obligations within
specified schedule, inclusive of duly granted time
extensions
 Imposed
for every day of delay until performance
and acceptance
 PE
need not prove it incurred actual damages
 Amount
is 1/10 of 1% of the cost of the
unperformed portion for every day of delay
ADVANCE PAYMENT (GOODS)
General Rule:

Made only after President’s prior approval and shall
not exceed 15% of the contract price
Exceptions:
 Single advance payment not to exceed 50% of the
contract price for the ff. services:
 Hotel and restaurant services
 Use of conference/seminar and exhibit areas
 Lease of office space
ADVANCE PAYMENT (GOODS)
Exceptions: (Cont.)
Θ
Θ
Advance payment not to exceed 15% allowed to
address contingencies arising from natural or manmade calamities in areas where “state of calamity”
has been declared
15% of the contract price shall be paid within 60
days from signing of contract and upon submission
of a claim and a irrevocable standby letter of credit
(Memorandum Order
No. 15 dated May,
2011)
ADVANCE PAYMENT (INFRA)

Requirements:

Written request from the contractor
Submission of an irrevocable standby letter of
credit of equivalent value from a commercial
bank, bank guarantee, or surety bond
Amount not to exceed 15% of the contract price
subject to recoupment every progress billing


PROGRESS PAYMENT (INFRA)

Progress payments subject to 10% retention
money

Conditions

Deducted until 50% of the works has been
completed

If after 50%, work is satisfactory and on schedule,
no additional retention is made, otherwise 10%
shall be imposed

Total retention is due for release upon issuance of a
certificate of final acceptance
SUB-CONTRACTING

Allowed as long as stated in bid docs

Bid docs shall identify portions of the contract
which may be subcontracted which shall not
exceed the maximum percentage limitations
 Goods
– no limit
 Infra – 50%

Subcontracting shall not relieve the principal
from any liability or obligation
SUB-CONTRACTING

Subcontractor may be identified at any stage of
the bidding process or during contract
implementation

Subcontractors must comply with the eligibility
criteria and documentary requirements as
specified by the PE in their bid docs

Proposed sub-contractor may be changed during
contract implementation upon HOPE’s approval.
SUB-CONTRACTING

If sub-contractor is ineligible, sub-contracting shall
be disallowed.

If subcontractor is disclosed during bid
submission, bidder shall include the required
documents as part of the bid’s technical
component.
- THANK YOU -
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