The Government Procurement Reform
Act (Rep. Act No. 9184) &
its Revised Implementing Rules and
Regulations
Atty. Ana Theresa B. del Rosario-Buen
Director, Procurement Office
Public
bidding was
introduced by
the
Americans in
the
Philippines.
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Several laws were passed requiring public
bidding for purchase of government
supplies and contracts for public works
Exec. Orders were issued by Presidents
Quezon & Macapagal reiterating the need
for public bidding in government projects
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PD 1484 was promulgated by Pres. Marcos
prescribing guidelines in procuring
infrastructure projects
Several EOs issued by Pres. Aquino, Ramos and
Estrada.
2001 - EO 40 issued by Pres. Arroyo
consolidating procurement rules and
procedures for all national government
agencies
January 26, 2003 – GPRA took effect
October 2003 – IRR Part A
Sept 2009 – Revised IRR
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Several laws and
issuances
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Inconsistencies in
policies and standards
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PROBLEMS/ISSUES
codified/harmonized
different laws and
issuances
created the GPPB to
oversee
implementation,
formulate policies and
and recommend
amendments
REFORMS
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Opportunity for
corruption due to
lack of transparency
Overpriced projects
Favoritism of
suppliers
PROBLEMS/ISSUES
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Use of PhilGEPS,
requirement of
advertisement
(publication and
posting), observers
Procurement planning
and budgeting linkage
Public bidding as
default mode
REFORMS
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Falsification by
suppliers
Collusion among
bidders
Strong influence of
HOPE
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PROBLEMS/ISSUES
Post-qualification
requirement
Penal and
administrative
sanctions
Independence of the
BAC
Disclosure of relations
No conflict of interest
REFORMS
Equal Opportunity. Competitiveness.
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Covers procurement in all gov’t agencies
Default method is Public/Competitive Bidding
Alternative method of procurement allowed
only in specified instances & exceptional
cases
Approved Budget for the Contract is the
ceiling for bid price
Use of transparent, objective and nondiscretionary criteria
Inclusion of Penal and Civil Liabilities
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Acquisition of goods, consulting
services, and the contracting for
infrastructure by the procuring
entity. (Section 5 (aa), IRR of
GPRA)
GOODS &
SERVICES
INFRASTRUCTURE
CONSULTING
SERVICES
121 CD
111/ 141 CD
174 CD
From posting/advertisement to contract issuance
ALL items, supplies,
materials, EXCEPT
consulting services
For adequate
external technical
and professional
expertise beyond its
capability and
capacity
Annual
Procurement
Plan
Bid
Bulletin/s
Approval of
award
PreProcurement
Conference
Advertise/
Post ITB
Conference
Opening &
Submission
of Bids
Bid
Evaluation
Postqualification
Sign PO/JO/
Issue Notice
to Proceed
Issue Notice
of Award
Contract
Pre-Bid
GOODS &
SERVICES
CONSULTING
SERVICES
INFRASTRUCTURE
Invitation to Bid
Pre-bid Conference
Submission and Opening of Bids
Post-Qualification Stage
Award of Contract
Single-stage
bidding
I. Request for Expression of Interest
Pre-eligibility Meeting
Opening of Eligibility Requirements
Shortlisting of Consultants
II. Invitation to Submit Bid Proposals
Pre-bid Conference
Submission and Opening of Bids
Post-Qualification/Negotiation
Award of Contract
Two-stage bidding
Filipinos.
Foreigners.
Government Corporate
Entities
 Duly
licensed Filipino
citizens/sole proprietorships
 Duly organized partnerships and
corporations
 Cooperatives
 Joint Ventures
Foreign suppliers may participate:
1. When provided for under any
Treaty
or
International
or
Executive Agreement;
2. When foreign supplier is a
citizen,
corporation,
or
association of a country, the
laws or regulations of which
grant
reciprocal
rights
or
privileges
to
citizens,
corporations or associations of
the Philippines;
3. When the goods sought to be
procured are not available from
local suppliers; or
4. When there is a need to prevent
situations
that
defeat
competition or restrain trade.
Foreign consultants may
participate:
1. In the event Filipino consultants
do not have the sufficient
expertise and capability to
render the services required
under the project;
2. Registered with SEC and/or any
agency authorized by the laws
of the Philippines; and
3. Authorized by appropriate
professional regulatory body in
case the type and fields of
consulting services involve
practice of regulated profession.
qualified...
Legally…
2. Technically…
3. Financially…
1.
…as shown by documents submitted.
1. Legal documents
2. Technical documents
3. Financial documents
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CLASS “A” DOCUMENTS
◦ Registration Certificate from SEC, Department of
Trade and Industry (DTI) for sole proprietorship, or
CDA for cooperatives, or any proof of such
registration as stated in the Bidding Documents
◦ Mayor’s permit issued by the city or municipality
where the principal place of business of the
prospective bidder is located
◦ Tax Clearance Certificate pursuant to Executive
Order 398, Series of 2005, as finally reviewed and
approved by the BIR.
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CLASS “B” DOCUMENTS
◦ If bidding as Joint Venture (JV), a Valid Joint Venture
Agreement (JVA), in case the JV is already in existence.
In the absence of a JVA, duly NOTARIZED statement(s)
from each/all the potential JV partners stating that they
will enter into and abide by the provisions of the JVA in
the instance that their bid is successful shall be included
in the bid. Failure to enter into a joint venture in the
event of a contract shall be ground for the forfeiture of
the bid security. Each partner of the joint venture shall
submit the legal eligibility documents. The submission
of technical and financial eligibility documents by any of
the joint venture partners constitutes compliance.
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CLASS “B” DOCUMENTS
◦ For infrastructure projects, the Joint Venture must
already be in existence at the time of submission of
bids.
◦ Each partner of the joint venture shall submit the
legal eligibility documents. The submission of
technical and financial eligibility documents by any
of the joint venture partners constitutes
compliance.
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Statement by the prospective bidder of all
its ongoing government and private
contracts, including contracts awarded but
not yet started, if any, whether similar or
not similar in nature and complexity to the
contract to be bid;
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For goods, bidder’s single largest
completed contract similar to the contract
to be bid, costing at least 50% of the ABC,
within the relevant period as provided in the
bidding documents.
For infrastructure, bidder’s single and
completed contract which is similar to the
contract to be bid costing at least 50% of
the ABC.
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In the case of procurement of infrastructure
projects, a valid Philippine Contractors
Accreditation Board (PCAB) license and
registration for the type and cost of the
contract to be bid.
If bidding as a JV, a special PCAB must also
be submitted by the JV in addition to the
PCAB of each JV partner.
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Statement of the consultant specifying its
nationality and confirming that those who
will actually perform the service are
registered professionals authorized by the
appropriate regulatory body to practice
those professions
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The prospective bidder’s audited financial
statements, showing, among others, the
prospective bidder’s total and current assets
and liabilities, stamped “received” by the BIR or
its duly accredited and authorized institutions,
for the preceding calendar year which should
not be earlier than two (2) years from the date
of bid submission.
The prospective bidder’s computation for its
Net Financial Contracting Capacity (NFCC). The
NFCC must be at least equal to the ABC.
“The BAC shall open the first bid envelopes of
prospective bidders in public to determine each
bidder’s compliance with the documents
required to be submitted for eligibility and for
the technical requirements …For this purpose,
the BAC shall check the submitted documents
of each bidder against a checklist of required
documents to ascertain if they are all present,
using a non-discretionary “pass/fail’
criterion…If a bidder submits the required
document, it shall be rated “passed” for that
particular requirement. In this regard, bids that
fail to include any requirement or are
incomplete or patently insufficient shall be
considered as “failed”. Otherwise, the BAC shall
rate the said first bid envelope as “passed”.
NON-DISCRETIONARY PASS/FAIL CRITERION
Section 30.1 of the Revised IRR of Rep. Act No. 9184
PRELIMINARY EXAMINATION OF BIDS
1.
2.
3.
Financial Proposal must not exceed the
Approved Budget for the Contract
Financial Proposal is the lowest calculated
bid (for Goods and Services and
Infrastructure Projects) or the highest
rated bid (for Consultancy Services)
The offer is responsive (passed postqualification)
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Make sure that you have the complete set of
documents.
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Study the requirements. Do your research
early on. Don’t wait at the last minute.
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Attend the pre-bid conference or send a
knowledgeable technical or administrative
personnel. Don’t be afraid to clarify the
requirements or ask questions.
Regularly check for issued Bid Bulletins and
Advisories from the BAC.
Check the checklist. The checklist of
requirements of bidders is prepared to
enable the bidder to submit a complete
bid. It is also the one used by the BAC
in the preliminary examination of
bidding documents.
Check the BSP Terms of Reference for
other requirements.
Sign and/or initial ALL PAGES of the
documents.
If a document is needed to be
notarized, authenticated or certified,
do so.
Make sure the bid does not exceed
the ABC.
 Allot
sufficient time to arrive at
the BSP. Traffic congestion
happens daily.
 If
a new bidder, familiarize
yourself with the entry procedures
at BSP.
 Study.
 Ensure
completeness.
 Ensure
sufficiency.
 Submit
on or before deadline.
Thank you and see you in
our next procurement!