procurement

• RA 9184


  Government Procurement Reform Act
• Governing Principles on Government Procurement

  • Transparency in the procurement process and in the implementation of procurement contracts
  • Competitiveness by extending equal opportunity to enable private contracting parties who are eligible and qualified to participate in public bidding
  • Streamlined procurement process that will uniformly apply to all government procurement. The procurement process shall be simple and made adaptable to advances in modern technology in order to ensure an effective and efficient method
  • System of accountability where both the public officials directly or indirectly involved in the procurement process as well as in the implementation of procurement contracts and the private parties that deal with government are, when warranted by circumstances, investigated and held liable for their actions relative thereto
  • Public monitoring of the procurement process and the implementation of awarded contracts with the end in view of guaranteeing that these contracts are awarded pursuant to the provisions of this Act and its implementing rules and regulations, and that all these contracts are performed strictly according to specifications
• Approved Budget for the Contract (ABC)

  The budget for the contract duly approved by the Head of the Procuring Entity
• BAC


  Bids and Awards Committee established in accordance with Article V of this Act
• Bidding Documents


  Documents issued by the Procuring Entity as the basis for Bids, furnishing all information necessary for a prospective bidder to prepare a bid for the Goods, Infrastructure Projects, and Consulting Services to be provided
• Bid


  A signed offer or proposal submitted by a supplier, manufacturer, distributor, contractor or consultant in response to the Bidding Documents
• Competitive Bidding


  A method of procurement which is open to participation by any interested party and which consists of the following processes: advertisement, pre-bid conference, eligibility screening of prospective bidders, receipt and opening of bids, evaluation of bids, post-qualification, and award of contract
• Consulting Services


  Services for Infrastructure Projects and other types of projects or activities of the Government requiring adequate external technical and professional expertise that are beyond the capability and/or capacity of the government to undertake such as, but not limited to: (i) advisory and review services; (ii) pre-investment or feasibility studies; (iii) design; (iv) construction supervision; (v) management and related services; and (vi) other technical services or special studies
• 1. EPS


  Government Electronic Procurement System as provided in Section 8 of this Act
• Goods


  All items, supplies, materials and general support services, except consulting services and infrastructure projects
• Head of the Procuring Entity


  (i) the head of the agency or his duly authorized official, for national government agencies
• Infrastructure Projects


  Include the construction, improvement, rehabilitation, demolition, repair, restoration or maintenance of roads and bridges, railways, airports, seaports, communication facilities, civil works components of information technology projects, irrigation, flood control and drainage, water supply, sanitation, sewerage and solid waste management systems, shore protection, energy/power and electrification facilities, national buildings, school buildings, hospital buildings and other related construction projects of the government
• IRR


  Implementing rules and regulations to be promulgated in accordance with Section 75 this Act
• Portal


  A website that aggregates a wide variety of content for the purpose of attracting a large number of users
• Procurement


  The acquisition of Goods, Consulting Services, and the contracting for Infrastructure Projects by the Procuring Entity. Procurement shall also include the lease of goods and real estate
• Procuring Entity


  Any branch, department, office, agency, or instrumentality of the government, including state universities and colleges, government owned and/or -controlled corporations, government financial institutions, and local government
• The BAC and its Composition

  1. The BAC shall have at least five (5) members, but not more than seven (7) members

  2. It shall be chaired by at least a third ranking permanent official of the procuring entity other than its head

  3. The members of the BAC shall have a fixed term of one (1) year reckoned from the date of appointment, renewable at the discretion of the Head of the Procuring Entity
• Functions of the BAC

  1. Advertise and/or post the invitation to bid

  2. Conduct pre-procurement and pre-bid conferences

  3. Determine the eligibility of prospective bidders

  4. Receive bids, conduct the evaluation of bids

  5. Undertake post-qualification proceedings

  6. Recommend award of contracts to the Head of the Procuring Entity or his duly authorized representative

  
• BAC Secretariat


  To assist the BAC in the conduct of its functions, the Head of the Procuring Entity shall create a Secretariat that will serve as the main support unit of the BAC. The Head of the Procuring Entity may also designate an existing organic office within the agency to serve as the Secretariat.
• Limited Source Bidding


  A method of Procurement that involves direct invitation to bid by the Procuring Entity from a set of preselected suppliers or consultants with known experience and proven capability relative to the requirements of a particular contract
• Direct Contracting


  A method of Procurement that does not require elaborate Bidding Documents because the supplier is simply asked to submit a price quotation or a pro-forma invoice together with the conditions of sale, which offer may be accepted immediately or after some negotiations
• Repeat Order


  A method of Procurement that involves a direct Procurement of Goods from the previous winning bidder, whenever there is a need to replenish Goods procured under a contract previously awarded through Competitive Bidding
• Shopping


  A method of Procurement whereby the Procuring Entity simply requests for the submission of price quotations for readily available off-the-shelf Goods or ordinary/regular equipment to be procured directly from suppliers of known qualification
• Negotiated Procurement


  A method of Procurement that may be resorted under the extraordinary circumstances provided for in Section 53 of this Act and other instances that shall be specified in the IRR, whereby the Procuring Entity directly negotiates a contract with a technically, legally and financially capable supplier, contractor or consultant
• Limited Source Bidding


  May be resorted to only in any of the following conditions: (a) Procurement of highly specialized types of Goods and Consulting Services which are known to be obtainable only from a limited number of sources; or (b) Procurement of major plant components where it is deemed advantageous to limit the bidding to known eligible bidders in order to maintain an optimum and uniform level of quality and performance of the plant as a whole
• Direct Contracting


  May be resorted to only in any of the following conditions: (a) Procurement of Goods of proprietary nature, which can be obtained only from the proprietary source, i.e. when patents, trade secrets and copyrights prohibit others from manufacturing the same item; (b) When the Procurement of critical components from a specific manufacturer, supplier or distributor is a condition precedent to hold a contractor to guarantee its project performance, in accordance with the provisions of his contract; or, (c) Those sold by an exclusive dealer or manufacturer, which does not have subdealers selling at lower prices and for which no suitable substitute can be obtained at more advantageous terms to the Government
• Repeat Order


  When provided for in the Annual Procurement Plan, Repeat Order may be allowed wherein the Procuring Entity directly procures Goods from the previous winning bidder whenever there arises a need to replenish goods procured under a contract previously awarded through Competitive Bidding, subject to post-qualification process prescribed in the Bidding Documents and provided all the following conditions are present: (a) The unit price must be equal to or lower than that provided in the original contract; (b) The repeat order does not result in splitting of requisitions or purchase orders; (c) Except in special circumstances defined in the IRR, the repeat order shall be availed of only within six (6) months from the date of the Notice to Proceed arising from the original contract; and, (d) The repeat order shall not exceed twenty-five percent (25%) of the quantity of each item of the original contract
• Shopping


  May be resorted to under any of the following instances: (a) When there is an unforeseen contingency requiring immediate purchase: Provided, however, That the amount shall not exceed Fifty Thousand Pesos (P50,000); or (b) Procurement of ordinary or regular office supplies and equipment not available in the Procurement Service involving an amount not exceeding Two Hundred Fifty Thousand Pesos (P250,000): Provided, however, That the Procurement does not result in Splitting of Contracts: Provided, further, That at least three (3) price quotations from bona fide suppliers shall be obtained
• Negotiated Procurement


  Shall be allowed only in the following instances: (a) In cases of two failed biddings, as provided in Section 35 hereof; (b) In case of imminent danger to life or property during a state of calamity, or when time is of the essence arising from natural or man-made calamities or other causes where immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public services, infrastructure facilities and other public utilities; (c) Take-over of contracts, which have been rescinded or terminated for causes provided for in the contract and existing laws, where immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public services, infrastructure facilities and other public utilities; (d) Where the subject contract is adjacent or contiguous to an on-going infrastructure project, as defined in the IRR: Provided, however, That the original contract is the result of a Competitive Bidding; the subject contract to be negotiated has similar or related scopes of work; it is within the contracting capacity of the contractor; the contractor uses the same prices or lower unit prices as in the original contract less mobilization cost; the amount involved does not exceed the amount of the ongoing project; and, the contractor has no negative slippage: Provided, further, That negotiations for the procurement are commenced before the expiry of the original contract. Whenever applicable, this principle shall also govern consultancy contracts, where the consultants have unique experience and expertise to deliver the required service; or, (e) Subject to the guidelines specified in the IRR, purchases of Goods from another agency of the Government, such as the Procurement Service of the DBM, which is tasked with a centralized procurement of commonly used Goods for the government in accordance with Letters of Instruction No. 755 and Executive Order No. 359, series of 1989
• Bidding Process Flow