RevisedIRR RA9184

R EVISED I MPLEMENTING
R ULES A ND R EGULATIONS
OF R EPUBLIC A CT 9184
Revised Implementing Rules and Regulations
REVISED IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC

ACT NO. 9184, OTHERWISE KNOWN AS THE GOVERNMENT
PROCUREMENT REFORM ACT
RULE I GENERAL PROVISIONS
Section 1. Short Title and Purpose
This Revised Implementing Rules and Regulations,2 hereinafter called the IRR, is
promulgated pursuant to Section 75 of Republic Act No. (R.A.) 9184, otherwise known as
the Government Procurement Reform Act, for the purpose of prescribing the necessary
rules and regulations for the modernization, standardization, and regulation of the
procurement activities of the Government of the Philippines (GOP).(a)
Section 2. Declaration of Policy
The provisions of this IRR are in line with the commitment of the GOP to promote good
governance and its effort to adhere to the principle of transparency, accountability, equity,
efficiency, and economy in its procurement process. It is the policy of the GOP that
procurement of infrastructure projects, goods and consulting services shall be competitive
and transparent, and therefore shall go through public bidding, except as otherwise
provided in this IRR.(a)
Section 3. Governing Principles on Government Procurement
The procurement of the GOP shall be governed by these principles:
a)
Transparency in the procurement process and in the implementation of procurement

contracts through wide dissemination of bid opportunities and participation of
pertinent non-government organizations.
b)
Competitiveness by extending equal opportunity to enable private contracting parties

who are eligible and qualified to participate in public bidding.
c)
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.
d)
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 GOP are, when warranted by
circumstances, investigated and held liable for their actions relative thereto.
e)
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 the Act and this IRR, and that all these contracts are
performed strictly according to specifications.
The Revised IRR was approved by the Government Procurement Policy Board (GPPB) through its Resolution 032009, dated 22 July 2009, and published in the Official Gazette on 3 August 2009. It took effect thirty (30) days
after its publication or on 2 September 2009.
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Section 4. Scope and Application of the IRR

4.1
This IRR shall apply to all procurement of any branch, agency, department, bureau,
office, or instrumentality of the GOP, including government-owned and/or -controlled
corporations (GOCCs), government financial institutions (GFIs), state universities and
colleges (SUCs), and local government units (LGUs).(a)
4.2
Any Treaty or International or Executive Agreement to which the GOP is a signatory

affecting the subject matter of the Act and this IRR shall be observed. In case of
conflict between the terms of the Treaty or International or Executive Agreement
and this IRR, the former shall prevail.(a)
4.3
Unless the Treaty or International or Executive Agreement expressly provides use of

foreign government/foreign or international financing institution procurement
procedures and guidelines, this IRR shall apply to Foreign-funded Procurement for
goods, infrastructure projects, and consulting services by the GOP.
Consistent with the policies and principles set forth in Sections 2 and 3 of this IRR,
the GOP negotiating panels shall adopt, as its default position, use of this IRR, or at
the very least, selection through competitive bidding, in all Foreign-funded
Procurement.
If the Treaty or International or Executive Agreement states
otherwise, then the negotiating panels shall explain in writing the reasons therefor.(n)
4.4
This IRR shall not apply to the following activities:

a)
Procurement for goods, infrastructure projects, and consulting services

funded from Foreign Grants covered by R.A. 8182, as amended by R.A. 8555,
entitled An Act Excluding Official Development Assistance (ODA) from the
Foreign Debt Limit in order to Facilitate the Absorption and Optimize the
Utilization of ODA Resources, Amending for the Purpose Paragraph 1, Section
2 of Republic Act No. 4860, As Amended, unless the GOP and the foreign
grantor/foreign or international financing institution agree otherwise;
b)
Acquisition of real property which shall be governed by R.A. 8974, entitled

An Act to Facilitate the Acquisition of Right-of-Way Site or Location for
National Government Infrastructure Projects and for Other Purposes, and
other applicable laws; and
c)
Public-Private sector infrastructure or development projects and other

procurement covered by R.A. 6957, as amended by R.A. 7718, entitled An
Act Authorizing the Financing, Construction, Operation and Maintenance of
Infrastructure Projects by the Private Sector, and for Other Purposes, as
amended: Provided, however, That for the portions financed by the GOP,
regardless of source of funds, whether local or foreign, the provisions of this
IRR shall apply.(1a)
Section 5. Definition of Terms

For purposes of this IRR, the following terms or words and phrases shall mean or be
understood as follows:
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a)
Act.
b)
Approved Budget for the Contract. Refers to the budget for the contract duly
c)
BAC. Refers to the Bids and Awards Committee established in accordance with Rule
d)
Bid. Refers to a signed offer or proposal to undertake a contract submitted by a
e)
Bidder. Refers to an eligible contractor, manufacturer, supplier, distributor and/or
f)
Bidding Documents. Refer to the documents issued by the procuring entity as the
g)
Common-Use Supplies. Refer to those goods, materials and equipment that are
h)
Competitive Bidding.
i)
Consulting Services. Refer to services for infrastructure projects and other types
Refers to R.A. 9184, entitled An Act Providing for the Modernization,

Standardization and Regulation of the Procurement Activities of the Government and
for other Purposes, otherwise known as the Government Procurement Reform Act.
approved by the Head of the Procuring Entity, as provided for in the General
Appropriations Act (GAA), continuing, and automatic appropriations, in the case of
national government agencies (NGAs); the corporate budget for the contract
approved by the governing board, pursuant to Executive Order No. 518, series of
1979 (E.O. 518), in the case of GOCCs and GFIs, and R.A. 8292 in the case of SUCs;
the budget approved by the Sanggunian in the case of LGUs; and the estimated
contract cost in the case of Foreign-funded Procurement. For purposes of, and
throughout this IRR, the terms ABC, Approved Budget for the Contract, and
Approved Budget shall have the same meaning and shall be used interchangeably.
For Foreign-funded Procurement, the estimated contract cost for the project refers to
the cost estimate prepared by the procuring entity and approved by the foreign
government/foreign or international financing institution as specified in the Treaty or
International or Executive Agreement.(a)
V of this IRR.
bidder in response to and in consonance with the requirements of the Bidding

Documents. For purposes of, and throughout this IRR, the term Bid shall be
equivalent to and be used interchangeably with Proposal and Tender.
consultant competing for the award of a contract in any procurement by the GOP. A
contractor, manufacturer, supplier, distributor or consultant is said to be eligible if it
meets all the eligibility requirements issued by the procuring entity.
basis for bids, furnishing all information necessary for a prospective bidder to
prepare a bid for the infrastructure projects, goods and/or consulting services
required by the procuring entity.
used in the day-to-day operations of Procuring Entities in the performance of their

functions. For the purpose of this IRR, common-use supplies shall be those included
in the Electronic Catalogue of the PhilGEPS.(a)
Refers to 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. For purposes of, and throughout this IRR, the terms Competitive Bidding
and Public Bidding shall have the same meaning and shall be used interchangeably.
of projects or activities of the GOP requiring adequate external technical and
professional expertise that are beyond the capability and/or capacity of the GOP to
undertake such as, but not limited to: (i) advisory and review services; (ii) pre-
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investment or feasibility studies; (iii) design; (iv) construction supervision; (v)

management and related services; and (vi) other technical services or special
studies. General principles on consulting services are provided for in Annex B of
this IRR.(a)
j)
Domestic Bidder. Refers to any person or entity offering unmanufactured articles,
k)
Domestic Entity. Refers to an individual or a sole proprietor who is a citizen of the
l)
Executive Agreements. Refer to International Agreements except that they do
m)
Expendable Supplies. Refer to articles which are normally consumed in use within
n)
Foreign Bid. Refers to any offer of articles, materials or supplies not manufactured
o)
Foreign-funded Procurement.
p)
Foreign Grants. Refer to grants with no repayment obligations and are provided in
q)
Foreign Loans.
materials or supplies of the growth or production of the Philippines, or manufactured

articles, materials, or supplies manufactured or to be manufactured in the Philippines
substantially from articles, materials, or supplies of the growth, production, or
manufacture, as the case may be, of the Philippines.(n)
Philippines or a partnership, corporation, cooperative, or association duly organized
under the laws of the Philippines and of which at least seventy five percent (75%) of
the interest or outstanding capital stock belongs to citizens of the Philippines,
habitually established in business and habitually engaged in the manufacture or sale
of the merchandise covered by his bid, and the business has been in existence for at
least five (5) consecutive years prior to the advertisement and/or posting of the
Invitation to Bid.(n)
not require legislative ratification.(n)
one (1) year or converted in the process of manufacture or construction, or those

having a life expectancy of more than one (1) year but which shall have decreased
substantially in value after being put to use for only one (1) year (e.g., medicines,
stationery, fuel, and spare parts).(n)
or not to be manufactured in the Philippines, substantially from articles, materials, or

supplies of the growth, production, or manufacture, as the case may be, of the
Philippines.(n)
Refers to the acquisition of goods, consulting
services, and the contracting for infrastructure projects by the GOP which are wholly
or partly funded by Foreign Loans or Grants pursuant to a Treaty or International or
Executive Agreement. For purposes of, and throughout this IRR, the term foreignfunded procurement shall have the same meaning as and shall be used
interchangeably with foreign-funded projects or foreign-assisted projects.(n)
monetary form, goods, works, and consultancy services, among others.(n)
Refer to loans, credits, and indebtedness with private foreign

banks or with foreign governments, agencies, or instrumentalities of such foreign
governments, foreign financial institutions, or other international organizations with
whom, or belonging to countries with which, the Philippines has diplomatic relations,
as may be necessary and upon such terms and conditions as may be agreed upon, to
enable the GOP to finance, either directly or through any government office, agency
or instrumentality or any government-owned and controlled corporation, industrial,
agricultural or other economic development purposes or projects authorized by
law.(n)
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r)
Goods. Refer to all items, supplies, materials and general support services, except
s)
GPPB. Refers to the Government Procurement Policy Board created in accordance
t)
Head of the Procuring Entity. Refers to: (i) the head of the agency or body, or
u)
Infrastructure Projects. Include the construction, improvement, rehabilitation,
v)
International Agreement. Refers to a contract or understanding, regardless of
w)
Non-expendable Supplies. Refer to articles which are not consumed in use and
x)
PhilGEPS. Refers to the Philippine Government Electronic Procurement System as
y)
Philippine National. Refers to an individual or a sole proprietor who is a citizen of
consulting services and infrastructure projects, which may be needed in the

transaction of public businesses or in the pursuit of any government undertaking,
project or activity, whether in the nature of equipment, furniture, stationery,
materials for construction, or personal property of any kind, including non-personal
or contractual services, such as, the repair and maintenance of equipment and
furniture, as well as trucking, hauling, janitorial, security, and related or analogous
services, as well as procurement of materials and supplies provided by the procuring
entity for such services. The term related or analogous services shall include, but
not be limited to, lease or purchase of office space, media advertisements, health
maintenance services, and other services essential to the operation of the procuring
entity.
with Rule XX of this IRR.
his duly authorized official, for NGAs and the constitutional commissions or offices,
and branches of government; (ii) the governing board or its duly authorized official,
for GOCCs, GFIs and SUCs; or (iii) the local chief executive, for LGUs: Provided,
however, That in an agency, department, or office where the procurement is
decentralized, the head of each decentralized unit shall be considered as the Head of
the Procuring Entity, subject to the limitations and authority delegated by the head
of the agency, department, or office.
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. For purposes of, and
throughout this IRR, the term Infrastructure Projects shall have the same meaning
as, and shall be used interchangeably with, civil works or works.
nomenclature, entered into between the GOP and another government or foreign or
international financing institution in written form and governed by international law,
whether embodied in a single instrument or in two (2) or more related instruments.(n)
ordinarily retain their original identity during the period of use, whose serviceable life
is more than one (1) year and which add to the assets of the GOP (e.g., furniture,
fixtures, transport and other equipment).(n)
provided in Section 8 of this IRR. For purposes of, and throughout this IRR, the
term PhilGEPS shall have the same meaning as, and shall be used interchangeably
with, G-EPS referred to in the Act.(a)
the Philippines or a partnership, corporation, cooperative, or association organized
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under the laws of the Philippines of which at least sixty percent (60%) of the capital
or interest is owned by citizens of the Philippines.(n)
z)
Portal.
aa)
Procurement.
bb)
Procuring Entity.
cc)
Treaties. Refer to international agreements entered into by the GOP which require
dd)
Universal or Commercial Banks. Refer to universal or commercial banks duly
Refers to a website that integrates a wide variety of contents for the

purpose of attracting and aggregating multiple users together in a central virtual
space.
Refers to the acquisition of goods, consulting services, and the
contracting for infrastructure projects by the procuring entity. In case of projects
involving mixed procurements, the nature of the procurement, i.e., goods,
infrastructure projects, or consulting services, shall be determined based on the
primary purpose of the contract. Procurement shall also include the lease of goods
and real estate. With respect to real property, its procurement shall be governed by
the provisions of R.A. 8974 and other applicable laws, rules and regulations.
Refers to any branch, constitutional commission or office,
agency, department, bureau, office, or instrumentality of the GOP (NGA), including
GOCC, GFI, SUC and LGU procuring goods, consulting services and infrastructure
projects.
legislative ratification after executive concurrence.(n)
authorized under R.A. 8791, otherwise known as The General Banking Act of
2000.(n)
Section 6. Standardization of Procurement Process and Forms

6.1
To systematize the procurement process, avoid confusion and ensure transparency,

the GPPB shall pursue the development and approval of generic procurement
manuals and standard bidding documents and forms including those to be used for
major procurement like drugs and textbooks.
6.2
Once issued by the GPPB, the use of the Generic Procurement Manuals (GPMs),
Philippine Bidding Documents (PBDs), and other standard forms shall be mandatory
upon all Procuring Entities. However, whenever necessary, to suit the particular
needs of the procuring entity, modifications may be made, particularly for major and
specialized procurement, subject to the approval of the GPPB.
RULE II PROCUREMENT PLANNING

Section 7. Procurement Planning and Budgeting Linkage
7.1.
All procurement shall be within the approved budget of the procuring entity and
should be meticulously and judiciously planned by the procuring entity. Consistent
with government fiscal discipline measures, only those considered crucial to the
efficient discharge of governmental functions shall be included in the Annual
Procurement Plan (APP). For purposes of this IRR, a procurement project shall be
considered crucial to the efficient discharge of governmental functions if it is required
for the day-to-day operations or is in pursuit of the principal mandate of the
procuring entity concerned. The APP shall include provisions for foreseeable
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emergencies based on historical records. In the case of infrastructure projects, the

APP shall consider the appropriate timing/phasing of related project activities, such
as, engineering design and acquisition of right of way, to reduce/lower project
costs.(a)
7.2.
No procurement shall be undertaken unless it is in accordance with the approved

APP of the procuring entity. The APP shall bear the approval of the Head of the
Procuring Entity or second-ranking official designated by the Head of the Procuring
Entity to act on his behalf, and must be consistent with its duly approved yearly
budget.(a)
7.3.
The APP shall be formulated and revised only in accordance with the following
guidelines:
7.3.1. At the start of every budget period, the procuring entity shall prepare its proposed
budget for the succeeding calendar year, taking into consideration the budget
framework for that year in order to reflect its priorities and objectives for the
budget period.(n)
7.3.2. The end-user units of the procuring entity shall prepare their respective Project
Procurement Management Plan (PPMP) for their different programs, activities, and
projects (PAPs). The PPMP shall include:
a)
b)
c)
d)
e)
f)
information on whether PAPs will be contracted out, implemented by

administration in accordance with the guidelines3 issued by the GPPB, or
consigned;
the type and objective of contract to be employed;
the extent/size of contract scopes/packages;
the procurement methods to be adopted, and indicating if the procurement
tasks are to be outsourced as provided in Section 53.6 of this IRR;
the time schedule for each procurement activity and for the contract
implementation; and
the estimated budget for the general components of the contract.
For purposes of this Section, consignment refers to an arrangement where the

following requisites are present: (a) delivery of goods by their owner (consignor),
without sale, to a government agency (consignee); (b) consignee must try to sell
the goods and remit the price of the sold goods to the consignor; (c) consignee
accepts without any liability except for failure to reasonably protect them from
damage; (d) no disbursement of government funds is involved; and (e) at terms
not disadvantageous to the GOP.(n)
7.3.3. The PPMP shall then be submitted to the procuring entitys Budget Office. The
procuring entitys Budget Office shall evaluate each end-users submitted PPMP
and, if warranted, include it in the procuring entitys budget proposal for approval
by the Head of the Procuring Entity.(n)
7.3.4. After the budget proposal has been approved by the Head of the Procuring Entity
and/or other oversight bodies, the procuring entitys budget office shall furnish a
copy of the procuring entitys budget proposal as well as the corresponding PPMPs
to the BAC Secretariat for its review and consolidation into the proposed APP.
3
Refer to Appendix 11 for the Revised Guidelines for the Implementation of Infrastructure Projects By
Administration.
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The proposed APP shall be consistent with the procuring entitys budget
proposal.(n)
7.3.5. As soon as the GAA, corporate budget, or appropriation ordinance, as the case
may be, becomes final, the end-user units shall revise and adjust the PPMP to
reflect the budgetary allocation for their respective PAPs. The revised PPMPs shall
be submitted to the BAC, through its Secretariat, for the finalization of the modes
of procurement under the proposed APP. The APP shall then be approved in
accordance with Section 7.2 of this IRR.(n)
7.4.
Updating of the individual PPMPs and the consolidated APP for each procuring entity
shall be undertaken every six (6) months or as often as may be required by the Head
of the Procuring Entity. The updating of the PPMPs shall be the responsibility of the
respective end-user units of the Procuring Entities, while the consolidation of these
PPMPs into an APP shall be lodged with the BAC Secretariat, subject to approval of
the Head of the Procuring Entity.(a)
7.5.
The ABC as reflected in the APP or PPMP shall be at all times consistent with the
appropriations for the project authorized in the GAA, continuing, and automatic
appropriations, the corporate budget, and the appropriation ordinance, as the case
may be. For NGAs, to facilitate the immediate implementation of projects even
pending approval of the GAA, the ABC shall be based on the budget levels under the
proposed national budget submitted by the President to Congress.(a)
RULE III PROCUREMENT BY ELECTRONIC MEANS

Section 8. Procurement by Electronic Means and the Philippine Government
Electronic Procurement System (PhilGEPS)
8.1.
The PhilGEPS
8.1.1. To promote transparency and efficiency, information and communications

technology shall be utilized in the conduct of procurement procedures.
Accordingly, there shall be a single portal that shall serve as the primary source of
information on all government procurement. The PhilGEPS shall serve as the
primary and definitive source of information on government procurement. For
this purpose, the Electronic Procurement System (EPS) established in accordance
with Executive Order No. 322, series of 2000, and Executive Order No. 40, series
of 2001 (E.O. 40), shall continue to be managed by the PS-DBM under the
supervision of the GPPB, as the PhilGEPS, in accordance with this IRR.
8.1.2. To take advantage of the significant built-in efficiencies of the PhilGEPS and the
volume discounts inherent in bulk purchasing, all Procuring Entities shall utilize the
PhilGEPS for the procurement of Common-Use Supplies in accordance with the
rules and procedures to be established by the GPPB. With regard to the
procurement of non-common use items, infrastructure projects, and consulting
services, agencies may hire service providers through competitive bidding to
undertake their electronic procurement: Provided, however, That these service
providers meet the following minimum requirements:
a)
Comply with the provisions of the Act and this IRR, and R.A. 8792,
otherwise known as the Electronic Commerce Act;
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b)
Linked to the PhilGEPS, particularly with regard to the posting of all bid
opportunities and awards;
c)
Allow parallel manual submission of bids to the procuring entity;
d)
Ensure that the BAC shall have complete control of the bidding process, and
that the BACs sole authority to open bids is strictly observed;
e)
Its system must be virus-resilient and must provide sufficient security which
is at least equivalent to that employed by the PhilGEPS, such as, but not
limited to, firewall and encryption devices;
f)
Must provide for the use of electronic signatures and other current
electronic authentication devices;
g)
Must have sufficient redundant back-up facilities;
h)
Must have provisions for linkage to the procuring entitys Financial

Management Information System (FMIS), Logistics Management Systems,
and other internal information systems that may interact with the
procurement process; and
i)
Electronic payment facilities, if used, shall comply with all laws, rules and
regulations issued by the Government.
8.1.3. The GPPB shall determine and certify compliance with the above requirements.
However, the GPPB may delegate this task to technically capable
agencies/offices/units of the Government.
8.2.
Features of the PhilGEPS
8.2.1. The Electronic Bulletin Board

a)
The PhilGEPS shall have a centralized electronic bulletin board for posting
procurement opportunities, notices, awards and reasons for award. All
Procuring Entities are required to post all procurement opportunities, results
of bidding and related information in the PhilGEPS bulletin board.
b)
Procuring Entities shall post the Invitation to Bid for goods and
infrastructure projects or the Request for Expression of Interest for
consulting services, in the electronic bulletin board in accordance with
Section 21 of this IRR.
8.2.2. Registry of Manufacturers, Suppliers, Distributors, Contractors and Consultants

a)
The PhilGEPS shall have a centralized electronic database of all

manufacturers, suppliers, distributors, contractors and consultants
registered under the system.
b)
Registration shall entail the submission of the requirements specified by the

PS-DBM. Submission of these requirements may be done on-line at the
PhilGEPS website or physically at the PhilGEPS office. Registration shall be
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effective for one year and may be renewed, provided that the manufacturer,
supplier, distributor, contractor or consultant concerned maintains its
registration current and updated at least once a year, or more frequently
when needed.
c)
Manufacturers, suppliers, distributors, contractors and consultants applying

for registration must also indicate their account number with a bank duly
licensed by the Bangko Sentral ng Pilipinas (BSP) to facilitate payment as
well as the posting of bid and performance security, when applicable. Any
information submitted in connection with this subsection shall be kept
confidential.(a)
d)
The PhilGEPS shall deny registration to or exclude from the registry any
party that is found to have willfully misrepresented any of the information
provided in the application for registration or who is in the blacklist of the
Government or any of its Procuring Entities in accordance with Section 69.4
of this IRR, including foreign government/foreign or international financing
institution whose blacklisting rules have been recognized by the GPPB.
e)
A manufacturer, supplier, distributor, contractor or consultant applying for

registration shall be required to provide an e-mail address to which all
communications from the BAC and the procuring entity shall be sent. The
e-mail address provided shall be considered as such applicants information
system for purposes of reckoning the date of sending or receipt of electronic
messages or documents.
f)
Registered manufacturers, suppliers, distributors, contractors and

consultants shall secure a digital certificate from the government-accredited
certification authority to be able to participate in the procurement activities
of the PhilGEPS.(a)
g)
Registration with the PhilGEPS is not an accreditation and thus not

tantamount to a finding of eligibility, nor is it a guaranty that a
manufacturer, supplier, distributor, contractor or consultant may participate
in a public bidding without first being determined to be eligible for that
particular public bidding.
8.2.3. The Electronic Catalogue

a)
The PhilGEPS shall have a centralized electronic catalogue of common and

non-common use goods, supplies, materials and equipment.
b)
Procuring Entities shall procure common-use goods, supplies, materials and

equipment from the Electronic Catalogue in the PhilGEPS. To be able to use
the PhilGEPS, Procuring Entities shall be required to register and designate
the officials or personnel authorized to transact with and operate the
PhilGEPS from such Procuring Entities terminals.
c)
Procuring Entities without internet access may avail of the PhilGEPS Public
Access Terminals which shall be installed at DBM-designated locations in the
provinces and in Metro Manila: Provided, however, That they shall comply
with Section 8.3 of this IRR.
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d)
The Electronic Catalogue may also feature non-common use items that may
be procured directly and without public bidding by Procuring Entities from
suppliers through the PhilGEPS Virtual Store: Provided, however, That for
an item to be carried in the Electronic Catalogue for this purpose, the
supplier thereof must have been determined as the Lowest Calculated
Responsive Bidder in a previous bidding conducted by PS-DBM or by a
procuring entity for PS-DBM: Provided, further, That such item will be
featured in the Electronic Catalogue for a maximum period of six (6) months
unless another supplier offers a price lower by at least five percent (5%)
and such supplier is determined by the PS-DBM or by the procuring entity
that conducted the previous bidding for PS-DBM to meet the eligibility and
bidding requirements for the item, in which case the item from the latter
supplier will be that featured in the Electronic Catalogue for the remainder
of the six (6)-month period.(a)
8.2.4. Additional Features

The PhilGEPS shall also feature a Virtual Store, Electronic Payment, Electronic Bid
Submission, and such other features as may be developed in the future.
8.2.4.1. Virtual Store
The PhilGEPS may have a feature that will enable the ordering of commonuse and non-common use items online called a virtual store. The virtual
store shall be open only to registered procuring entities and may not be
accessed by suppliers.
8.2.4.2. Electronic Payment
The PhilGEPS may support e-payment functions to pay for goods purchased
through the Virtual Store to manage the generation of purchase orders and
the payment of bids processed through the system.(a)
The focus of this feature is to facilitate the electronic transfer of funds from
PS-DBM to and from procuring entities and suppliers, and from procuring
entities to suppliers, for bids managed directly by the procuring entity. The
system shall:
a)
Generate purchase orders from a bid notice, award notice or contract;
b)
Support approval process for purchase orders before any payment or

fund transfer is processed;
c)
Have a process to submit request for payment upon delivery of goods

and/or services and the completion of the approval process; and
d)
Have the ability to interface with the designated bank of the procuring
entity and suppliers to support the electronic transfer of funds.
8.2.4.3. Electronic Bid Submission

The PhilGEPS may support the implementation of e-Bid submission
processes, which includes creation of electronic bid forms, creation of bid
37
box, delivery of bid submissions, notification to supplier of receipt of bids,

bid receiving and electronic bid evaluation. This facility shall cover all types
of procurement for goods, infrastructure projects and consulting services.
8.3.
Use of the PhilGEPS
8.3.1. All Procuring Entities are mandated to fully use the PhilGEPS in accordance with
the policies, rules, regulations, and procedures adopted by the GPPB and
embodied in this IRR. In this connection, all Procuring Entities shall register with
the PhilGEPS and shall undertake measures to ensure their access to an on-line
network to facilitate the open, speedy and efficient on-line transmission,
conveyance and use of electronic data messages or electronic documents. The
PS-DBM shall assist Procuring Entities to ensure their on-line connectivity and help
in training their personnel responsible for the operation of the PhilGEPS from their
terminals.
8.3.2. The rules and regulations governing the manual method of procurement shall
apply whenever the rules in this Section are silent. Further, the GPPB is
authorized to approve changes in the procurement process to adapt to
improvements in modern technology, provided that such modifications are
consistent with the provisions of Section 3 of the Act and this IRR.
8.4.
Pre-bid Conferences and Notices under the PhilGEPS
8.4.1. Pre-bid conferences shall be conducted in accordance with Section 22 of this IRR:
Provided, however, That the requirement for face-to-face bidding conference may
be replaced once videoconferencing, webcasting, or similar technology becomes
the norm in business transactions in the country. Procuring Entities with
videoconferencing capabilities that have manufacturers, suppliers, distributors,
contractors and/or consultants that also have videoconferencing capabilities may
conduct their pre-bidding conferences electronically.
8.4.2. Requests for clarification from bidders may be sent electronically to the BAC. To
be binding on bidders, clarifications and amendments to the Invitation to
Bid/Request for Expression of Interest and to the Bidding Documents shall be in
the form of Supplemental/Bid Bulletins which shall be posted in the PhilGEPS
bulletin board.
8.4.3. The Supplemental/Bid Bulletins mentioned in the immediately preceding
Subsection as well as all other notices to be made by the BAC to the bidders or
prospective bidders shall be posted in the PhilGEPS bulletin board and sent
electronically to the e-mail address indicated in the bidders registration.
8.5.
Registration, Eligibility Requirements and Submission of Bids under the PhilGEPS
8.5.1. To ensure the widest dissemination of the Invitation to Bid/Request for Expression
of Interest, manufacturers, suppliers, distributors, contractors and/or consultants
shall register with the PhilGEPS. All Procuring Entities already maintaining an
electronic registry upon the effectivity of this IRR shall integrate the same with
that of the PhilGEPS. A manufacturer, supplier, distributor, contractor or
consultant duly registered with the PhilGEPS may participate in a procurement
undertaken by any procuring entity, provided that the said manufacturer, supplier,
distributor, contractor or consultant maintains its registration current and updated
38
in accordance with the provisions of this IRR, and its registration is proper and
relevant to the particular type of procurement.(a), (23a)
8.5.2. Eligibility requirements may be sent electronically or manually to the PhilGEPS.
When a manufacturer, supplier, distributor, contractor, or consultant registers
with PhilGEPS, it shall submit along with the requirements a certification stating
that the documents submitted are complete and authentic copies of the original,
and all statements and information provided therein are true and correct. Upon
confirmation, validation, and verification of the documents submitted, PhilGEPS
may issue, in favor of the registered entity, a Certificate of Registration and
Membership that contains the certification mentioned in the preceding
sentence.4(a)
8.5.3. Registered bidders determined to be eligible may submit their bids at any time
before the closing date specified in the Bidding Documents. The PhilGEPS shall
bar all incoming bids after such date.
8.5.4. The PhilGEPS shall have a feature that allows the electronic submission of
eligibility requirements and bids.
8.5.5. Upon receipt of a bid, the PhilGEPS shall generate and send a message to the
bidder acknowledging such receipt.
8.6.
Opening of Bids under the PhilGEPS
8.6.1. The BAC shall have the sole authority to open the bids.
8.6.2. Only the financial proposals of bidders whose technical proposals meet the
minimum technical requirements shall be opened or decrypted.
8.6.3. An update of all procurement contracts, regardless of whether procurement is
done electronically or manually, shall be posted on the PhilGEPS bulletin board.
The update shall include, but shall not be limited to, the status of procurement
contracts, including the names of contract awardees and the amount of the
contract.
8.6.4. Without prejudice to criminal prosecution under the applicable provisions of the
Act and this IRR, R.A. 8792, R.A. 3019, otherwise known as the Anti-Graft and
Corrupt Practices Act, and other applicable penal laws, public officials and
employees who commit any of the following acts shall be deemed to have
committed grave misconduct and shall be sanctioned and/or penalized in
accordance with the applicable Civil Service rules and regulations:
a)
Opening or decryption, by whatever means, of bids submitted through the

PhilGEPS ahead of the appointed time for the opening or decryption of such
bids;
b)
Causing the unauthorized disclosure of any information or document

submitted through the PhilGEPS;
Amended through GPPB Resolution 12-2012, dated 1 June 2012, and published in The Daily Tribune on 28
December 2012.
39
c)
Hacking into or cracking the PhilGEPS, or aiding another person to hack into
or crack the same; or
d)
Any other act that breaches or violates the security, integrity, and
confidentiality of the PhilGEPS.
8.6.5. When any of the foregoing acts is done by the administrator(s) or employee(s) of
a service provider hired by a procuring entity, or in collusion with, or by a private
party who is a participant in the bidding process, said administrator(s),
employee(s) or private party shall be imposed the corresponding sanctions and/or
penalties under this IRR.
8.7.
Observers
The PhilGEPS shall allow observers, duly authorized by the BAC, to monitor the
procurement proceedings on-line: Provided, however, That such observers do not
have any direct or indirect interest in the contract to be bid as prescribed in Section
13 of this IRR.(a)
Section 9. Security, Integrity and Confidentiality

The PhilGEPS shall incorporate the following features, which shall be periodically upgraded
to keep abreast with developments in technology:
a)
Security The PhilGEPS shall be protected from unauthorized access or interference
b)
Integrity The PhilGEPS shall ensure that no person, including the system
c)
Confidentiality The PhilGEPS shall ensure the privacy of parties transacting with it.
d)
Audit Trail The PhilGEPS shall include a feature that provides for an audit trail for on-
e)
Performance Tracking The performance of manufacturers, suppliers, distributors,
through the incorporation of security features such as, but not limited to, firewalls.
Periodic tests shall be conducted to ensure that the system cannot be breached.
administrators and chairperson and members of the BAC, shall be able to alter the
contents of bids submitted through the system or read the same ahead of the
stipulated time for the decryption or opening of bids. For this purpose, bids submitted
through the PhilGEPS shall be sealed through electronic keys. The authenticity of
messages and documents submitted through the PhilGEPS shall also be ensured by
the use of electronic signatures.
For this purpose, no electronic message or document sent through the system shall be
divulged to third parties unless such electronic message or document was sent after
the sender was informed that the same will be made publicly available. The PhilGEPS
shall protect the intellectual property rights over documents, including technical
designs, submitted in response to Invitations to Bid.
line transactions, and allows the Commission on Audit (COA) to verify the security and
integrity of the system at any time.
contractors and consultants shall be tracked to monitor compliance with delivery

schedules and other performance indicators. Similarly, the performance of Procuring
Entities shall be tracked to monitor the settlement of their obligations to
manufacturers, suppliers, distributors, contractors and consultants.
40
RULE IV COMPETITIVE BIDDING

Section 10. Competitive Bidding
All procurement shall be done through competitive bidding, except as provided in Rule XVI
of this IRR.
RULE V BIDS AND AWARDS COMMITTEE

Section 11. The BAC and its Composition
11.1.
BAC Structure
11.1.1. Each procuring entity shall establish in its head office a single BAC to undertake
the functions specified in Section 12 of this IRR in order to facilitate
professionalization and harmonization of procedures and standards. In line with
the standardization of procurement procedures and the thrust towards
strengthening the procurement function to increase operational efficiency and
effectiveness, Heads of Procuring Entities shall aim to consolidate or unify all
procurement activities of the organization, whether locally-funded or foreignassisted, and whether pertaining to goods, infrastructure projects, or consulting
services.(a)
11.1.2. However, to expedite the procurement process for practical intents and
purposes, the Head of the Procuring Entity may create separate BACs where the
number and complexity of the items to be procured shall so warrant. The BACs
may be organized either according to: (a) geographical location of PMO or enduser units of the procuring entity; or (b) nature of procurement. Similar
committees for decentralized and lower level offices may also be formed when
deemed necessary by the Head of the Procuring Entity.(a)
11.2.
BAC Composition
11.2.1. The Head of the Procuring Entity shall designate at least five (5) but not more
than seven (7) members to the BAC of unquestionable integrity and
procurement proficiency.(a)
11.2.2. The BAC for NGAs, departments, bureaus, offices, or instrumentalities of the
GOP, including the judicial and legislative branches, constitutional commissions,
SUCs, GOCCs, and GFIs shall be composed of the following:
Regular Members:
a)
Chairman, who is at least a third ranking permanent official of the

procuring entity;
b)
An officer, who is at least a fifth ranking permanent official, with

knowledge, experience and/or expertise in procurement who, to the extent
possible, represents the legal or administrative area of the procuring
entity, provided that in the case of bureaus, regional offices and sub41
regional/district offices, BAC members shall be at least a third ranking

permanent personnel;
c)
An officer, who is at least a fifth ranking permanent official, with

knowledge, experience and/or expertise in procurement who, to the extent
possible, represents the finance area of the procuring entity, provided that
in the case of bureaus, regional offices and sub-regional/district offices,
BAC members shall be at least a third ranking permanent personnel;
Provisional Members:
d)
An officer who has technical expertise relevant to the procurement at

hand, and, to the extent possible, has knowledge, experience and/or
expertise in procurement; and
e)
A representative from the end user unit who has knowledge of

procurement laws and procedures.
The Chairman and the Vice-Chairman shall also be designated by the Head of
the procuring entity. Moreover, the Vice-Chairman shall be a regular member of
the BAC. For purposes of this IRR, the term permanent shall refer to a
plantilla position within the procuring entity concerned.(a)
11.2.3. The BAC for Local Government Units5 shall be composed of the following:
a)
One representative each from the regular offices under the Office of the
Local Chief Executive such as, but not limited to, the following: Office of
the Administrator, Budget Office, Legal Office, Engineering Office, General
Services Offices; and
b)
A representative from the end user unit.
The members shall elect among themselves who shall act as the Chairman and
Vice-Chairman. The Chairman of the BAC shall be at least a third ranking
permanent official of the procuring entity. The members of the BAC shall be
personnel occupying plantilla positions of the procuring entity concerned.(a)
11.2.4. The Head of the Procuring Entity may designate alternate members to the BAC,
who shall have the same qualifications as their principals as set in the Act and
this IRR. The alternate members shall attend meetings of the BAC and receive
the corresponding honoraria, whenever their principals are absent.
The
alternate members shall have the same term as their principals.
The
accountability of the principal and the alternate member shall be limited to their
respective acts and decisions.(n)
11.2.5. In no case shall the Head of the Procuring Entity and/or the approving authority
be the Chairman or a member of the BAC.
11.2.6. Unless sooner removed for a cause, 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. Upon expiration of the terms of
the current members, they shall continue to exercise their functions until new
5
Refer to Appendix 1 for clarification on BAC composition for LGUs.

42
BAC members are designated. In case of resignation, retirement, separation,

transfer, re-assignment, removal, or death, the replacement shall serve only for
the unexpired term: Provided, however, That in case of leave or suspension,
the replacement shall serve only for the duration of the leave or suspension. For
justifiable causes, a member shall be suspended or removed by the Head of the
Procuring Entity.(a)
Section 12. Functions of the BAC
12.1.
The BAC shall have the following functions: (a) advertise and/or post the invitation to
bid/request for expressions of interest; (b) conduct pre-procurement and pre-bid
conferences; (c) determine the eligibility of prospective bidders; (d) receive bids; (e)
conduct the evaluation of bids; (f) undertake post-qualification proceedings; (g)
resolve motions for reconsideration; (h) recommend award of contracts to the Head
of the Procuring Entity or his duly authorized representative: (i) recommend the
imposition of sanctions in accordance with Rule XXIII; (j) recommend to the Head of
the Procuring Entity the use of Alternative Methods of Procurement as provided for in
Rule XVI hereof; and (k) perform such other related functions as may be necessary,
including the creation of a Technical Working Group (TWG) from a pool of technical,
financial, and/or legal experts to assist in the procurement process, particularly in the
eligibility screening, evaluation of bids, and post-qualification.(a)
12.2.
The BAC shall be responsible for ensuring that the procuring entity abides by the
standards set forth by the Act and this IRR, and it shall prepare a procurement
monitoring report in the form prescribed by the GPPB. The procurement monitoring
report shall cover all procurement activities specified in the APP, whether ongoing
and completed, from the holding of the pre-procurement conference to the issuance
of notice of award and the approval of the contract, including the standard and
actual time for each major procurement activity. The procurement monitoring report
shall be approved and submitted by the Head of the Procuring Entity to the GPPB in
printed and electronic format within fourteen (14) calendar days after the end of
each semester.(a)
12.3.
Quorum
A majority of the total BAC composition as designated by the Head of the Procuring
Entity shall constitute a quorum for the transaction of business, provided that the
presence of the Chairman or Vice-Chairman shall be required.
12.4.
Meetings
The Chairman or, in his absence, the Vice-Chairman, shall preside at all meetings of
the BAC. The decision of at least a majority of those present at a meeting at which
there is quorum shall be valid and binding as an act of the BAC: Provided, however,
That the Chairman or, in his absence, the Vice-Chairman, shall vote only in case of a
tie.(a)
Section 13. Observers

13.1.
To enhance the transparency of the process, the BAC shall, in all stages of the
procurement process, invite, in addition to the representative of the COA, at least
two (2) observers, who shall not have the right to vote, to sit in its proceedings
where:
43
1.
At least one (1) shall come from a duly recognized private group in a sector or
discipline relevant to the procurement at hand, for example:
a)
For infrastructure projects, national associations of constructors duly

recognized by the Construction Industry Authority of the Philippines
(CIAP), such as, but not limited to the following:
(1)
(2)
(3)
b)
For goods, a specific relevant chamber-member of the Philippine

Chamber of Commerce and Industry.
c)
For consulting services, a project-related professional organization

accredited or duly recognized by the Professional Regulation Commission
or the Supreme Court, such as, but not limited to:
(1)
(2)
(3)
2.
13.2.
Philippine Constructors Association, Inc.;

National Constructors Association of the Philippines, Inc.; and
Philippine Institute of Civil Engineers (PICE).
PICE;
Philippine Institute of Certified Public Accountants (PICPA); and
Confederation of Filipino Consulting Organizations; and
The other observer shall come from a non-government organization (NGO).(a)
The observers shall come from an organization duly registered with the Securities
and Exchange Commission (SEC) or the Cooperative Development Authority (CDA),
and should meet the following criteria:
a)
Knowledge, experience or expertise in procurement or in the subject matter of

the contract to be bid;
b)
Absence of actual or potential conflict of interest in the contract to be bid; and
c)
Any other relevant criteria that may be determined by the BAC.(a)
13.3.
Observers shall be invited at least three (3) calendar days before the date of the
procurement stage/activity. The absence of observers will not nullify the BAC
proceedings, provided that they have been duly invited in writing.(a)
13.4.
The observers shall have the following responsibilities:

a)
To prepare the report either jointly or separately indicating their observations

made on the procurement activities conducted by the BAC for submission to
the Head of the Procuring Entity, copy furnished the BAC Chairman. The
report shall assess the extent of the BACs compliance with the provisions of
this IRR and areas of improvement in the BACs proceedings;
b)
To submit their report to the procuring entity and furnish a copy to the GPPB
and Office of the Ombudsman/Resident Ombudsman. If no report is submitted
by the observer, then it is understood that the bidding activity conducted by
the BAC followed the correct procedure; and
44
c)
13.5.
To immediately inhibit and notify in writing the procuring entity concerned of

any actual or potential interest in the contract to be bid.(a)
Observers shall be allowed access to the following documents upon their request,
subject to signing of a confidentiality agreement: (a) minutes of BAC meetings; (b)
abstract of Bids; (c) post-qualification summary report; (d) APP and related PPMP;
and (e) opened proposals.(a)
Section 14. BAC Secretariat

14.1.
14.2.
The Head of the Procuring Entity shall create a Secretariat which will serve as the
main support unit of the BAC. An existing organic office within the procuring entity
may also be designated to serve as Secretariat. However, to strengthen and
promote the professionalization of the organizations procuring unit, the Head of the
Procuring Entity may create procurement units that may serve concurrently as BAC
Secretariat in accordance with the guidelines issued by DBM. The Secretariat shall
have the following functions and responsibilities:
a)
Provide administrative support to the BAC;
b)
Organize and make all necessary arrangements for BAC meetings and
conferences;
c)
Prepare minutes of meetings and resolutions of the BAC;
d)
Take custody of procurement documents and other records;
e)
Manage the sale and distribution of Bidding Documents to interested bidders;
f)
Advertise and/or post bidding opportunities, including Bidding Documents, and

notices of awards;
g)
Assist in managing the procurement processes;
h)
Monitor procurement activities and milestones for proper reporting to relevant

agencies when required;
i)
Consolidate PPMPs from various units of the procuring entity to make them
available for review as indicated in Section 7 of this IRR; and
j)
Act as the central channel of communications for the BAC with end users,
PMOs, other units of the line agency, other government agencies, providers of
goods, infrastructure projects, and consulting services, observers, and the
general public.(a)
The head of the Secretariat in central offices shall be at least a fifth ranking
permanent employee or, if not available, a permanent official of the next lower rank;
or shall be at least a third ranking permanent employee in bureaus, regional offices
and sub-regional/ district offices, or if not available, a permanent employee of the
next lower rank. In addition to integrity, Heads of Procuring Entities shall consider
procurement proficiency as a factor in designating the head of the Secretariat and
Procurement Unit.(a)
45
14.3.
To expedite the procurement process, the Head of the Procuring Entity shall ensure
that the members of the BAC and TWG shall give utmost priority to BAC assignments
over all other duties and responsibilities, until the requirements for the said
assignments at hand are completed.
Section 15. Honoraria of BAC, BAC Secretariat, and TWG Members

The procuring entity may grant payment of honoraria to the BAC members in an amount not
to exceed twenty five percent (25%) of their respective basic monthly salary subject to
availability of funds. For this purpose, the DBM shall promulgate the necessary guidelines.6
The procuring entity may also grant payment of honoraria to the BAC Secretariat and the
TWG members, subject to the relevant rules of the DBM.(a)
Section 16. Professionalization of BAC, TWG Members and Procurement Units
The GPPB shall establish a sustained training program to develop the capability of the BACs,
BAC Secretariats, TWGs, and the Procurement Units of Procuring Entities, and
professionalize the same.
RULE VI - PREPARATION OF BIDDING DOCUMENTS

Section 17. Form and Contents of Bidding Documents
17.1.
The Bidding Documents shall be prepared by the procuring entity following the
standard forms and manuals prescribed by the GPPB. The Bidding Documents shall
include the following:
a)
Approved Budget for the Contract;
b)
Invitation to Bid/Request for Expression of Interest;
c)
Eligibility Requirements;
d)
Instructions to Bidders, including scope of bid, documents comprising the bid,

criteria for eligibility, bid evaluation methodology/criteria in accordance with
the Act, and post-qualification, as well as the date, time and place of the prebid conference (where applicable), submission of bids and opening of bids;
e)
Terms of Reference (TOR), for consulting services;
f)
Scope of work, where applicable;
g)
Plans/Drawings and Technical Specifications;
h)
Form of Bid, Price Form, and List of Goods or Bill of Quantities;
i)
Delivery Time or Completion Schedule;
j)
Form, Amount, and Validity Period of Bid Security;
Refer to Appendix 10 on the Guidelines on the Grant of Honoraria to Government Personnel Involved in
Government Procurement.
46
k)
Form, Amount, and Validity of Performance Security and Warranty; and
l)
Form of Contract and General and Special Conditions of Contract.(a)
17.2.
The specifications and other terms in the Bidding Documents shall reflect minimum
requirements or specifications required to meet the needs of the procuring entity in
clear and unambiguous terms.(a)
17.3.
To provide prospective bidders ample time to examine the Bidding Documents and to
prepare their respective bids, the concerned BAC shall make the Bidding Documents
for the contract to be bid available for the following period:
a)
For the procurement of goods and infrastructure projects, from the time the
Invitation to Bid is first advertised/posted until the deadline for the submission
and receipt of bids.
b)
For the procurement of consulting services, eligibility documents shall be made

available from the time the Request for Expression of Interest is first
advertised/posted until the deadline for the eligibility check, and the Bidding
Documents, from the determination of the short list until the deadline for the
submission and receipt of bids.(21a)
17.4.
Bidders may be asked to pay for the Bidding Documents to recover the cost of its
preparation and development. The BAC shall issue the Bidding Documents upon
payment of the corresponding cost thereof to the collecting/disbursing officer of the
procuring entity concerned.(a)7
17.5.
The procuring entity shall also post the Bidding Documents at its website and at the
PhilGEPS website from the time that the Invitation to Bid/Request for Expression of
Interest is advertised. Prospective bidders may download the Bidding Documents
from any of the said websites; Provided that, bidders shall pay the fee for the
Bidding Documents upon submission of their Bids.(n)
17.6.
Detailed Engineering for the Procurement of Infrastructure Projects

No bidding and award of contract for infrastructure projects shall be made unless the
detailed engineering investigations, surveys and designs, including the acquisition of
the ROW, for the project have been sufficiently carried out and duly approved in
accordance with the standards and specifications prescribed by the Head of the
Procuring Entity concerned or his duly authorized representative, and in accordance
with the provisions of Annex A of this IRR.
The exception is design and build scheme, wherein the bidders shall be allowed to
submit its detailed engineering designs as part of its bid. The procedures for the
procurement and contract implementation of infrastructure projects using a design
and build scheme shall be in accordance with the provisions of Annex G of this
IRR.(a)
Section 18. Reference to Brand Names

Specifications for the procurement of goods shall be based on relevant characteristics and/or
performance requirements. Reference to brand names shall not be allowed.
7
Refer to Appendix 25 for the Guidelines on the Sale of Bidding Documents.

47
Section 19. Access to Information

In all stages of the preparation of the Bidding Documents, the procuring entity shall ensure
equal access to information. Prior to their official release to prospective bidders, no aspect
of the Bidding Documents shall be divulged or released to any prospective bidder or person
having direct or indirect interest in the project to be procured, or to any party, except those
officially authorized in the handling of the documents.
RULE VII INVITATION TO BID

Section 20. Pre-procurement Conference
20.1.
Prior to the advertisement or the issuance of the Invitation to Bid/Request for

Expression of Interest for each procurement undertaken through a public bidding,
the BAC, through its Secretariat, shall call for a pre-procurement conference. The
pre-procurement conference shall be attended by the BAC, the Secretariat, the unit
or officials, including consultants hired by the procuring entity, who prepared the
Bidding Documents and the draft Invitation to Bid/Request for Expression of Interest
for each procurement. During this conference, the participants, led by the BAC,
shall:
a)
Confirm the description and scope of the contract, the ABC, and contract
duration.
b)
Ensure that the procurement is in accordance with the project and annual
procurement plans;
c)
Determine the readiness of the procurement at hand, including, among other

aspects, the following:
i)
ii)
iii)
iv)
20.2.
availability of appropriations and programmed budget for contract;

completeness of the Bidding Documents and their adherence to relevant
general procurement guidelines;
completion of the detailed engineering according to the prescribed
standards in the case of infrastructure projects; and
confirmation of the availability of ROW and the ownership of affected
properties.
d)
Review, modify and agree on the criteria for eligibility screening, evaluation,
and post-qualification;
e)
Review and adopt the procurement schedule, including deadlines and

timeframes, for the different activities; and
f)
Reiterate and emphasize the importance of confidentiality, in accordance with

Section 19 of this IRR, and the applicable sanctions and penalties, as well as
agree on measures to ensure compliance with the foregoing.(a)
The holding of a pre-procurement conference may not be required for small

procurements, i.e., procurement of goods costing Two Million Pesos (P2,000,000.00)
and below, procurement of infrastructure projects costing Five Million Pesos
48
(P5,000,000.00) and below, and procurement of consulting services costing One

Million Pesos (P1,000,000.00) and below.
Section 21. Advertising and Contents of the Invitation to Bid/Request for
Expression of Interest
21.1.
Contents of the Invitation to Bid/Request for Expression of Interest

The Invitation to Bid/Request for Expression of Interest shall provide prospective
bidders the following information, among others:
a)
For the procurement of:

i)
Goods, the name of the contract to be bid and a brief description of the
goods to be procured;
ii)
Infrastructure projects, the name and location of the contract to be bid,

the project background and other relevant information regarding the
proposed contract works, including a brief description of the type, size,
major items, and other important or relevant features of the works; and
iii)
Consulting services, the name of the contract to be bid, a general

description of the project and other important or relevant information;
b)
A general statement on the criteria to be used by the procuring entity for the
eligibility check, the short listing of prospective bidders, in the case of the
procurement of consulting services, the examination and evaluation of bids,
post-qualification, and award;
c)
The date, time and place of the deadline for the submission and receipt of the
eligibility requirements, the pre-bid conference if any, the submission and
receipt of bids, and the opening of bids;
d)
ABC to be bid;
e)
The source of funding;
f)
The period of availability of the Bidding Documents, the place where the
Bidding Documents may be secured, the website where the Bidding Documents
may be downloaded, and, where applicable, the price of the Bidding
Documents;
g)
The contract duration or delivery schedule;
h)
The name, address, telephone number, facsimile number, e-mail and website
addresses of the concerned procuring entity, as well as its designated contact
person; and
i)
Such other necessary information deemed relevant by the procuring entity.
49
21.2.
Advertising and Posting of the Invitation to Bid/Request for Expression of Interest
21.2.1. Except as otherwise provided in Sections 21.2.2 and 54.2 of this IRR and for the
procurement of common-use goods and supplies, the Invitation to Bid/Request
for Expression of Interest shall be:
a)
Advertised at least once in one (1) newspaper of general nationwide

circulation which has been regularly published for at least two (2) years
before the date of issue of the advertisement;
b)
Posted continuously in the PhilGEPS website, the website of the procuring

entity concerned, if available, and the website prescribed by the foreign
government/foreign or international financing institution, if applicable, for
seven (7) calendar days starting on date of advertisement; and
c)
Posted at any conspicuous place reserved for this purpose in the premises
of the procuring entity concerned for seven (7) calendar days, if
applicable, as certified by the head of the BAC Secretariat of the procuring
entity concerned.(a)
21.2.2. Advertisement of the Invitation to Bid/Request for Expression of Interest in a

newspaper of general nationwide circulation provided in Section 21.2.1(a) shall
not be required for contracts to be bid with an approved budget of Two Million
Pesos (P2,000,000.00) and below for the procurement of goods, Five Million
Pesos (P5,000,000.00) and below for the procurement of infrastructure projects,
and One Million Pesos (P1,000,000.00) and below or those whose duration is
four (4) months or less for the procurement of consulting services.(a)
Section 22. Pre-bid Conference
22.1.
For contracts to be bid with an approved budget of One Million Pesos

(P1,000,000.00) or more, the BAC shall convene at least one (1) pre-bid conference
to clarify and/or explain any of the requirements, terms, conditions, and
specifications stipulated in the Bidding Documents. For contracts to be bid with an
approved budget of less than One Million Pesos (P1,000,000), pre-bid conferences
may be conducted at the discretion of the BAC. Subject to the approval of the BAC,
a pre-bid conference may also be conducted upon written request of any prospective
bidder.
22.2.
The pre-bid conference shall be held at least twelve (12) calendar days before the
deadline for the submission and receipt of bids. If the procuring entity determines
that, by reason of the method, nature, or complexity of the contract to be bid or
when international participation will be more advantageous to the GOP, a longer
period for the preparation of bids is necessary, the pre-bid conference shall be held
at least thirty (30) calendar days before the deadline for the submission and receipt
of bids.(a)
22.3.
The pre-bid conference shall discuss, among other things, the eligibility requirements
and the technical and financial components of the contract to be bid. Attendance of
the bidders shall not be mandatory. However, at the option of the Procuring Entity,8
only those who have purchased the Bidding Documents shall be allowed to
Amended through GPPB Resolution 06-2009, dated 30 September 2009, published in the Manila Times on 20
October 2009.
50
participate in the pre-bid conference and raise or submit written queries or

clarifications.(a)
22.4.
The minutes of the pre-bid conference shall be recorded and made available to all
participants not later than three (3) calendar days after the pre-bid conference. Any
statement made at the pre-bid conference shall not modify the terms of the Bidding
Documents, unless such statement is specifically identified in writing as an
amendment thereto and issued as a Supplemental/Bid Bulletin.(a)
22.5.
Supplemental/Bid Bulletins
22.5.1. Requests for clarification(s) on any part of the Bidding Documents or for an
interpretation must be in writing and submitted to the BAC of the procuring
entity concerned at least ten (10) calendar days before the deadline set for the
submission and receipt of bids. The BAC shall respond to the said request by
issuing a Supplemental/Bid Bulletin, duly signed by the BAC chairman, to be
made available to all those who have properly secured the Bidding Documents,
at least seven (7) calendar days before the deadline for the submission and
receipt of bids.(a)
22.5.2. Supplemental/Bid Bulletins may be issued upon the procuring entitys initiative
for purposes of clarifying or modifying any provision of the Bidding Documents
at least seven (7) calendar days before the deadline for the submission and
receipt of bids. Any modification to the Bidding Documents shall be identified as
an amendment.(a)
22.5.3. Any Supplemental/Bid Bulletin issued by the BAC shall also be posted on the
PhilGEPS and9 the website of the procuring entity concerned, if available. It
shall be the responsibility of all those who have properly secured the Bidding
Documents to inquire and secure Supplemental/Bid Bulletins that may be issued
by the BAC. However, bidders who have submitted bids before the issuance of
the Supplemental/Bid Bulletin must be informed and allowed to modify or
withdraw their bids in accordance with Section 26.1 of this IRR.(a)
RULE VIII RECEIPT AND OPENING OF BIDS

Section 23.
Eligibility Requirements for the Procurement of Goods and
Infrastructure Projects
23.1.
For purposes of determining the eligibility of bidders using the criteria stated in
Section 23.5 of this IRR, only the following documents shall be required by the BAC,
using the forms prescribed in the Bidding Documents:
a)
Class A Documents
Legal Documents
i)
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.
Ibid.
51
ii)
Mayors permit issued by the city or municipality where the principal

place of business of the prospective bidder is located.
iii)
Tax clearance per Executive Order 398, Series of 2005, as finally

reviewed and approved by the BIR.10
Technical Documents
iv)
Statement of 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; and
Statement identifying the bidders single largest completed contract
similar to the contract to be bid, except under conditions provided for in
Section 23.5.1.3 of this IRR, within the relevant period as provided in the
Bidding Documents in the case of goods.
All of the above statements shall include all information required in the
PBDs prescribed by the GPPB.11
v)
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.
Financial Documents
b)
vi)
The prospective bidders audited financial statements, showing, among

others, the prospective bidders 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.
vii)
The prospective bidders computation for its Net Financial Contracting

Capacity (NFCC).12
Class B Document
Valid joint venture agreement (JVA), in case the joint venture is already in
existence. In the absence of a JVA, duly notarized statements from all the
potential joint venture partners stating that they will enter into and abide by
the provisions of the JVA in the instance that the bid is successful shall be
included in the bid. Failure to enter into a joint venture in the event of a
contract award 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.(a)
10
Amended through GPPB Resolution 21-2013, dated 30 July 2013, published in Malaya Business Insight on 21
March 2014.
11 Amended through GPPB Resolution 29-2012, dated 23 November 2012, published in the Manila Business
Insight on 9 September 2013.
12 Amended through GPPB Resolution 20-2013, dated 30 July 2013, published in Malaya Business Insight on 12
March 2014.
52
23.2.
Subject to Section 37.1 of this IRR, in the case of foreign bidders, the foregoing
eligibility requirements under Class A Documents may be substituted by the
appropriate equivalent documents, if any, issued by the country of the foreign bidder
concerned. The eligibility requirements or statements, the bids, and all other
documents to be submitted to the BAC must be in English. If the eligibility
requirements or statements, the bids, and all other documents submitted to the BAC
are in foreign language other than English, it must be accompanied by a translation
of the documents in English. The documents shall be translated by the relevant
foreign government agency, the foreign government agency authorized to translate
documents, or a registered translator in the foreign bidders country; and shall be
authenticated by the appropriate Philippine foreign service establishment/post or the
equivalent office having jurisdiction over the foreign bidders affairs in the
Philippines.(a)13
23.3.
A prospective bidder may be allowed to submit his eligibility requirements

electronically in accordance with Section 8.5 of this IRR.(a)
23.4.
To facilitate determination of eligibility, the BAC of a procuring entity may use the
contents of the PhilGEPS electronic registry of manufacturers, suppliers, distributors,
contractors, and/or consultants.(a)14
23.4.1. The PhilGEPS registry system shall contain the foregoing Class A documents,
which should be maintained current and updated by the bidder concerned at
least once a year or more frequently as may be necessary.(a)
23.4.2. A bidder who maintains a current and updated file of his Class A Documents
may submit to the procuring entity, in lieu of the said documents, the Certificate
of Registration and Membership issued by PhilGEPS pursuant to Section 8.5.2.(a)
23.5.
Eligibility Criteria
23.5.1. For the procurement of goods:

23.5.1.1. The following shall be eligible to participate in the bidding for the supply of
goods:
a)
Duly licensed Filipino citizens/sole proprietorships;
b)
Partnerships duly organized under the laws of the Philippines and of

which at least sixty percent (60%) of the interest belongs to citizens
of the Philippines;
c)
Corporations duly organized under the laws of the Philippines, and of

which at least sixty percent (60%) of the outstanding capital stock
belongs to citizens of the Philippines;
d)
Cooperatives duly organized under the laws of the Philippines, and

of which at least sixty percent (60%) belongs to citizens of the
Philippines; or
13
Amended through GPPB Resolution 04-2014, dated 8 April 2014, and published in Manila Times on 04
November 2014.
14 Amended through GPPB Resolution 12-2012, dated 1 June 2012, and published in The Daily Tribune on 28
December 2012.
53
e)
Persons/entities forming themselves into a joint venture, i.e., a

group of two (2) or more persons/entities that intend to be jointly
and severally responsible or liable for a particular contract:
Provided, however, That Filipino ownership or interest of the joint
venture concerned shall be at least sixty percent (60%). For this
purpose, Filipino ownership or interest shall be based on the
contributions of each of the members of the joint venture as
specified in their JVA.(a)
23.5.1.2. Foreign bidders may be eligible to participate under any of the following
circumstances:
a)
When provided for under any Treaty or International or Executive

Agreement as provided in Section 4 of the Act and this IRR;
b)
When the foreign supplier is a citizen, corporation or association of a

country, included in Annex I to be issued by the GPPB, the laws or
regulations of which grant reciprocal rights or privileges to citizens,
corporations or associations of the Philippines;
c)
When the goods sought to be procured are not available from local
suppliers; or
d)
When there is a need to prevent situations that defeat competition

or restrain trade.
The GPPB shall promulgate the necessary guidelines15 for this provision.(a)
23.5.1.3. The prospective bidder must have completed, within the period specified
in the Invitation to Bid, a single contract that is similar to the contract to
be bid, and whose value, adjusted to current prices using the National
Statistics Office (NSO) consumer price indices, must be at least fifty
percent (50%) of the ABC. However, in the case of Expendable Supplies,
said single contract must be at least twenty five percent (25%) of the
ABC.
If, at the outset and after conducting market research, the procuring entity
can already determine that imposing the same will likely result to: (a)
failure of bidding, or (b) monopoly that will defeat the purpose of public
bidding, the procuring entity, in lieu of the above, may require the
following:
a)
The prospective bidder should have completed at least two (2)

similar contracts and the aggregate contract amounts should be
equivalent to at least the percentage of the ABC as required above;
and
b)
The largest of these similar contracts must be equivalent to at least

half of the percentage of the ABC as required above.
15
Refer to Appendix 7 for the Guidelines in the Determination of Eligibility of Foreign Suppliers, Contractors, and
Consultants to Participate in Government Procurement Projects.
54
For this purpose, the similar contracts mentioned under (a) and (b) above
must have been completed within the period specified in the Invitation to
Bid. The procuring entity may clarify in the Bidding Documents the
definition or description of what it considers to be a similar project.(a)
23.5.1.4. The computation of a prospective bidders NFCC must be at least equal to
the ABC to be bid, calculated as follows:
NFCC = [(Current assets minus current liabilities) (K)] minus the value
of all outstanding or uncompleted portions of the projects under
ongoing contracts, including awarded contracts yet to be started
coinciding with the contract to be bid.
Where:
K = 10 for a contract duration of one year or less, 15 for a contract
duration of more than one year up to two years, and 20 for a contract
duration of more than two years.
The values of the bidders current assets and current liabilities shall be
based on the data submitted to the BIR, through its Electronic Filing and
Payment System (EFPS).(a)16
23.5.2. For the procurement of infrastructure projects:
23.5.2.1. The following persons/entities shall be allowed to participate in the bidding
for infrastructure projects:
a)
b)
Partnerships duly organized under the laws of the Philippines and of

which at least seventy-five percent (75%) of the interest belongs to
citizens of the Philippines;
c)
Corporations duly organized under the laws of the Philippines, and of

which at least seventy-five percent (75%) of the outstanding capital
stock belongs to citizens of the Philippines;
d)
Cooperatives duly organized under the laws of the Philippines, and

of which at least seventy-five percent (75%) belongs to citizens of
the Philippines; or
e)
Persons/entities forming themselves into a joint venture, i.e., a

group of two (2) or more persons/entities that intend to be jointly
and severally responsible or liable for a particular contract:
Provided, however, That, in accordance with Letter of Instructions
No. 630 (LOI 630), Filipino ownership or interest of the joint venture
concerned shall be at least seventy-five percent (75%): Provided,
further, That joint ventures in which Filipino ownership or interest is
less than seventy-five percent (75%) may be eligible where the
structures to be built require the application of techniques and/or
16
March 2014.
55
technologies which are not adequately possessed by a person/entity

meeting the seventy-five percent (75%) Filipino ownership
requirement: Provided, finally, That in the latter case, Filipino
ownership or interest shall not be less than twenty-five percent
(25%). For this purpose, Filipino ownership or interest shall be
based on the contributions of each of the members of the joint
venture as specified in their JVA.(a)
23.5.2.2. Foreign bidders may be eligible to participate in the procurement of
infrastructure projects when provided for under any Treaty or International
or Executive Agreement as provided in Section 4 of the Act and this IRR.(n)
23.5.2.3. In accordance with R.A. 4566, entitled An Act Creating the Philippine
Licensing Board for Contractors, Prescribing its Powers, Duties and
Functions, Providing Funds Therefor, and for Other Purposes, the
persons/entities enumerated in Section 23.5.1.1 of this IRR may
participate in public bidding if he has been issued a license by the PCAB to
engage or act as a contractor.(a)
23.5.2.4. The Owners Certificate of Final Acceptance; or the Constructors
Performance Evaluation Summary (CPES) Final Rating and/or the
Certificate of Completion, must be satisfactory.17
23.5.2.5. The prospective bidder must have an experience of having completed at
least one (1) contract that is similar to the contract to be bid, and whose
value, adjusted to current prices using the NSO consumer price indices,
must be at least fifty percent (50%) of the ABC to be bid: Provided,
however, That contractors under Small A and Small B categories without
similar experience on the contract to be bid may be allowed to bid if the
cost of such contract is not more than fifty percent (50%) of the Allowable
Range of Contract Cost (ARCC) of their registration based on the
guidelines as prescribed by the PCAB.
For Foreign-funded Procurement, the GOP and the foreign
government/foreign or international financing institution may agree on
another track record requirement.
Moreover, a contract shall be considered similar to the contract to be bid
if it has the same major categories of work.18
23.5.2.6. The computation of a prospective bidders NFCC must be at least equal to
the ABC to be bid, calculated as follows:
NFCC = [(Current assets minus current liabilities) (K)] minus the value
of all outstanding or uncompleted portions of the projects under
ongoing contracts, including awarded contracts yet to be started
coinciding with the contract to be bid.
Where:
17
Amended through GPPB Resolution 11-2012, dated 1 June 2012, published in The Daily Tribune on 20 August
2012.
18
Ibid.
56
K = 10 for a contract duration of one year or less, 15 for a contract

duration of more than one year up to two years, and 20 for a contract
duration of more than two years.
The values of the bidders current assets and current liabilities shall be
based on the data submitted to the BIR, through its Electronic Filing and
Payment System (EFPS).(a)19
23.6.
GOCCs may be eligible to participate in Competitive Bidding only if they can establish
that they (a) are legally and financially autonomous, (b) operate under commercial
law, and (c) are not attached agencies of the procuring entity.20 The GPPB shall
promulgate the necessary guidelines for this provision.(n)
23.7.
Notwithstanding the eligibility of a prospective bidder, the procuring entity concerned

reserves the right to review the qualifications of the bidder at any stage of the
procurement process if the procuring entity has reasonable grounds to believe that a
misrepresentation has been made by the said prospective bidder, or that there has
been a change in the prospective bidders capability to undertake the project from
the time it submitted its eligibility requirements. Should such review uncover any
misrepresentation made in the eligibility requirements, statements or documents, or
any changes in the situation of the prospective bidder which will affect the capability
of the bidder to undertake the project so that it fails the eligibility criteria, the
procuring entity shall consider the said prospective bidder as ineligible and shall
disqualify it from obtaining an award or contract, in accordance with Rules XXI, XXII,
and XXIII of this IRR.
Section 24. Eligibility Requirements and Short Listing for Consulting Services
24.1.
For purposes of determining the eligibility and short list of bidders in accordance with
Sections 24.4 and 24.5 of this IRR, only the following documents shall be required by
the BAC, using the forms prescribed in the Bidding Documents:
a)
Class A Documents
Legal Documents
i)
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;
ii)
Mayors permit issued by the city or municipality where the principal

place of business of the prospective bidder is located; and
iii)
Tax clearance per Executive Order 398, Series of 2005, as finally

reviewed and approved by the BIR.21
Technical Documents
19
March 2014.
20 Amended through GPPB Resolution 12-2013, dated 26 April 2013, published in The Manila Times on 12
November 2013.
21 Amended through GPPB Resolution 21-2013, dated 30 July 2013, published in Malaya Business Insight on 21
March 2014.
57
iv)
Statement of the prospective bidder of all its ongoing and completed

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, within the relevant period as
provided in the Bidding Documents. The statement shall include all
information required in the PBDs prescribed by the GPPB.
v)
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 and allied professions, including their respective curriculum
vitae.22
Financial Document
vi)
b)
The consultants audited financial statements, showing, among others,

the consultants 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.
Class B Document
Valid joint venture agreement (JVA), in case a joint venture is already in
existence. In the absence of a JVA, duly notarized statements from all the
potential joint venture partners stating that they will enter into and abide by
the provisions of the JVA in the instance that the bid is successful, shall be
included in the bid. Failure to enter into a joint venture in the event of a
contract award 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 documents by any of the joint venture
partners constitutes compliance.(a)
24.2.
In the case of foreign consultants, the foregoing eligibility requirements under Class
A Documents may be substituted by the appropriate equivalent documents, if any,
issued by the foreign consultants country. The eligibility requirements or statements,
the bids, and all other documents to be submitted to the BAC must be in English. If
the eligibility requirements or statements, the bids, and all other documents
submitted to the BAC are in foreign language other than English, it must be
accompanied by a translation of the documents in English. The documents shall be
translated by the relevant foreign government agency, the foreign government
agency authorized to translate documents, or a registered translator in the foreign
bidders country; and shall be authenticated by the appropriate Philippine foreign
service establishment/post or the equivalent office having jurisdiction over the
foreign bidders affairs in the Philippines.(a)23
24.3. Eligibility Criteria

24.3.1. The following persons/entities shall be allowed to participate in the bidding for
consulting services:
As amended by GPPB Resolution 11-2009, dated 30 November 2009, published in The Daily Tribune on 2
December 2009.
23
Amended through GPPB Resolution 04-2014, dated 8 April 2014, and published in Manila Times on 04
November 2014.
22
58
a)
b)
Partnerships duly organized under the laws of the Philippines and of which
at least sixty percent (60%) of the interest belongs to citizens of the
Philippines;
c)
Corporations duly organized under the laws of the Philippines and of which
at least sixty percent (60%) of the outstanding capital stock belongs to
citizens of the Philippines;
d)
Cooperatives duly organized under the laws of the Philippines, and of

which at least sixty percent (60%) belongs to citizens of the Philippines; or
e)
Persons/entities forming themselves into a joint venture, i.e., a group of

two (2) or more persons/entities that intend to be jointly and severally
responsible or liable for a particular contract: Provided, however, That
Filipino ownership or interest thereof shall be at least sixty percent (60%).
For this purpose, Filipino ownership or interest shall be based on the
contributions of each of the members of the joint venture as specified in
their JVA.(n)
24.3.2. When the types and fields of consulting services in which the foregoing
persons/entities wish to engage involve the practice of professions regulated by
law, those who will actually perform the services shall be Filipino citizens and
registered professionals authorized by the appropriate regulatory body to
practice those professions and allied professions.(a)
24.3.3. In order to manifest trust and confidence in and promote the development of
Filipino consultancy, foreign consultants may be hired in the event Filipino
consultants do not have the sufficient expertise and capability to render the
services required under the project, as determined by the Head of the Procuring
Entity. Foreign consultants may be eligible to participate in the procurement of
consulting services, subject to the following qualifications:
24.4.
a)
must be registered with the SEC and/or any agency authorized by the laws
of the Philippines; and
b)
when the types and fields of consulting services in which the foreign
consultant wishes to engage involve the practice of regulated professions,
the foreign consultant must be authorized by the appropriate GOP
professional regulatory body to engage in the practice of those professions
and allied professions: Provided, however, That the limits of such authority
shall be strictly observed.(a)
Eligibility Check of Prospective Bidders
24.4.1. The eligibility envelopes of prospective bidders for procurement of consulting

services shall be submitted on or before the deadline specified in the Request for
Expression of Interest, and shall be opened before the dates of the pre-bid
conference and bid opening to determine eligibility of prospective bidders, who
shall then be allowed to acquire or purchase the relevant Bidding Documents
from the procuring entity. A prospective bidder may be allowed to submit his
59
eligibility requirements electronically in accordance with Section 8.5 of this

IRR.(a)
24.4.2. Subject to the short listing of consultants as provided in this IRR, the
determination of eligibility of consultants shall be based on the evaluation of the
eligibility documents prescribed above in accordance with the procedures
provided in Sections 30.1 of this IRR.24
24.4.3. To facilitate determination of eligibility, the BAC of a procuring entity may use
the contents of the PhilGEPS electronic registry of manufacturers, suppliers,
distributors, contractors, and/or consultants.(a)25
24.4.3.1. The PhilGEPS registry system shall contain the foregoing Class A
documents, which should be maintained current and updated by the
bidder concerned at least once a year or more frequently as may be
necessary.(a)
24.4.3.2. A bidder who maintains a current and updated file of his Class A
Documents may submit to the procuring entity, in lieu of the said
documents, the Certificate of Registration and Membership issued by
PhilGEPS pursuant to Section 8.5.2.(a)
24.5.
Short Listing of Prospective Bidders
24.5.1.
With respect to a particular contract for consulting services to be bid, the

concerned procuring entity shall only consider for short listing those
consultants whose contracts, as identified in the eligibility documents
submitted for registration, are similar in nature and complexity to the contract
to be bid, based on the Request for Expression of Interest.
24.5.2.
The BAC shall draw up the short list of consultants from those who have been
determined as eligible in accordance with the provisions of this IRR. The
number of short listed consultants, which shall be determined in the preprocurement conference, shall consist of three (3) to seven (7) consultants,
with five (5) as the preferable number. Should less than the required number
apply for eligibility and short listing, pass the eligibility check, and/or pass the
minimum score required in the short listing, the BAC shall consider the same.26
24.5.3.
The BAC shall specify in the Request for Expression of Interest the set of
criteria and rating system for short listing of consultants to be used for the
particular contract to be bid, which shall consider the following, among others:
a)
b)
24
25
Applicable experience of the consultant and members in case of joint

ventures, considering both the overall experiences of the firm or, in the
case of new firms, the individual experiences of the principal and key
staff, including the times when employed by other consultants;
Qualification of personnel who may be assigned to the job vis--vis
extent and complexity of the undertaking; and
Ibid.
Amended through GPPB Resolution 12-2012, dated 1 June 2012, and published in The Daily Tribune on 28
December 2012.
26 Amended through GPPB Resolution 06-2009, dated 30 September 2009, published in the Manila Times on 20
October 2009.
60
c)
24.5.4.
Current workload relative to capacity.(a)
The BAC shall recommend the short list of consultants to the Head of the
Procuring Entity for consideration and approval. The entire process of
eligibility check and short listing shall not exceed twenty (20) calendar days.
24.6.
GOCCs may be eligible to participate in Competitive Bidding only if they can establish
that they (a) are legally and financially autonomous, (b) operate under commercial
law, and (c) are not attached agencies of the procuring entity.27 The GPPB shall
promulgate the necessary guidelines for this provision.(n)
24.7.
Notwithstanding the eligibility of a consultant and/or inclusion in the short list of

consultants, the procuring entity concerned reserves the right to review his
qualifications at any stage of the procurement process if it has reasonable grounds to
believe that a misrepresentation has been made by the said consultant, or that there
has been a change in the consultants capability to undertake the project from the
time he submitted his eligibility requirements. Should such review uncover any
misrepresentation made in the eligibility requirements, statements or documents, or
any changes in the situation of the consultant which will affect the capability of the
consultant to undertake the project so that the consultant fails the preset eligibility
criteria, the procuring entity shall consider the said consultant as ineligible and shall
disqualify him from submitting a bid or from obtaining an award or contract, in
accordance with Rules XXI, XXII, and XXIII of this IRR.
Section 25. Submission and Receipt of Bids

25.1.
Bidders shall submit their bids through their duly authorized representative using the
forms specified in the Bidding Documents in two (2) separate sealed bid envelopes,
and which shall be submitted simultaneously. The first shall contain the technical
component of the bid, including the eligibility requirements under Section 23.1 of this
IRR, and the second shall contain the financial component of the bid.(a)
25.2.
The first envelope shall contain the following technical information/documents, at the
least:
a)
For the procurement of goods:

i)
Eligibility requirements under Section 23.1 of this IRR;
ii)
The bid security in the prescribed form, amount and validity period;
iii)
Technical specifications, which may include production/delivery schedule,

manpower requirements, and/or after-sales service/parts, if applicable;
and
iv)
Sworn statement by the prospective bidder or its duly authorized

representative in the form prescribed by the GPPB as to the following:
(1)
It is not blacklisted or barred from bidding by the GOP or any of

its agencies, offices, corporations, or LGUs, including foreign
27
Amended through GPPB Resolution 12-2013, dated 26 April 2013, published in The Manila Times on 12
November 2013.
61
government/foreign or international financing institution whose

blacklisting rules have been recognized by the GPPB;
b)
(2)
Each of the documents submitted in satisfaction of the bidding

requirements is an authentic copy of the original, complete, and all
statements and information provided therein are true and correct;
(3)
It is authorizing the Head of the Procuring Entity or his duly

authorized representative/s to verify all the documents submitted;
(4)
The signatory is the duly authorized representative of the

prospective bidder, and granted full power and authority to do,
execute and perform any and all acts necessary and/or to
represent the prospective bidder in the bidding, with the duly
notarized Secretarys Certificate attesting to such fact, if the
prospective bidder is a corporation, partnership, cooperative, or
joint venture;
(5)
It complies with the disclosure provision under Section 47 of the

Act in relation to other provisions of R.A. 3019;
(6)
It complies with the responsibilities of a prospective or eligible

bidder provided in the PBDs; and
(7)
It complies with existing labor laws and standards, in the case of

procurement of services.
(8)
It did not give or pay, directly or indirectly, any commission,

amount, fee, or any form of consideration, pecuniary or otherwise,
to any person or official, personnel or representative of the
government in relation to any procurement project or activity.28(a)
For the procurement of infrastructure projects:

i)
Eligibility requirements under Section 23.129 of this IRR;
ii)
Bid security in the prescribed form, amount and validity period;
iii)
Project Requirements, which shall include the following:

(1)
Organizational chart for the contract to be bid;
(2)
List of contractors personnel (viz, Project Manager, Project

Engineers, Materials Engineers, and Foremen), to be assigned to
the contract to be bid, with their complete qualification and
experience data;
(3)
List of contractors equipment units, which are owned, leased,

and/or under purchase agreements, supported by certification of
28
March 2014.
29 Amended through GPPB Resolution 06-2009, dated 30 September 2009, published in the Manila Times on 20
October 2009.
62
availability of equipment from the equipment lessor/vendor for the

duration of the project; and
iv)
c)

(1)

its agencies, offices, corporations, or LGUs, including foreign
(2)

(3)

(4)
The signatory is the duly authorized representative of the

prospective bidder, and granted full power and authority to do,
execute and perform any and all acts necessary and/or to
prospective bidder is a corporation, partnership or joint venture;
(5)

(6)

(7)
It complies with existing labor laws and standards.
(8)

For the procurement of consulting services:

i)
The bid security in the prescribed form, amount and validity period;
ii)
Organizational chart for the contract to be bid;
iii)
List of completed and on-going projects;
iv)
Approach, work plan, and schedule: Provided, however, That for

architectural design, submission of architectural plans and designs shall
not be required during the consultants selection process;
List of key personnel to be assigned to the contract to be bid, with their
complete qualification and experience data; and
v)
30
March 2014.
63
vi)

(1)

its
agencies,
offices,
corporations,
or
LGUs,
foreign
(2)

(3)

(4)
The signatory is the duly authorized and designated representative

of the prospective bidder, and granted full power and authority to
do, execute and perform any and all acts necessary and/or to
prospective bidder is a corporation, partnership or joint venture;
(5)

(6)

(7)
It complies with existing labor laws and standards.
(8)

25.3.
The second envelope shall contain the financial information/documents as specified

in the PBDs.(a)
25.4.
Bids shall be received by the BAC on the date, time, and place specified in the
Invitation to Bid/Request for Expression of Interest. The following periods from the
last day of posting of the Invitation to Bid/Request for Expression of Interest up to
the submission and receipt of bids shall be observed:
a)
For Goods, a maximum period of forty-five (45) calendar days.
b)
For infrastructure projects, the following maximum periods:
Approved Budget for the Contract

(in Philippine currency)
31
Ibid.
64
Period
Fifty (50) million and below

Above fifty (50) million
c)
25.5.
50 calendar days
65 calendar days
For consulting services, a maximum period of seventy five (75) calendar

days.(21a)
Bids, including the eligibility requirements under Section 23.1 of this IRR, submitted
after the deadline shall not be accepted by the BAC.(a)
Section 26. Modification and Withdrawal of Bids

26.1.
A bidder may modify its bid, provided that this is done before the deadline for the
submission and receipt of bids. Where a bidder modifies its bid, it shall not be
allowed to retrieve its original bid, but shall only be allowed to send another bid
equally sealed, properly identified, linked to its original bid and marked as a
modification, thereof, and stamped received by the BAC. Bid modifications
received after the applicable deadline shall not be considered and shall be returned
to the bidder unopened.
26.2.
A bidder may, through a letter, withdraw its bid before the deadline for the receipt of
bids. Withdrawal of bids after the applicable deadline shall be subject to appropriate
sanctions as prescribed in this IRR. A bidder may also express its intention not to
participate in the bidding through a letter which should reach and be stamped
received by the BAC before the deadline for the receipt of bids. A bidder that
withdraws its bid shall not be permitted to submit another bid, directly or indirectly,
for the same contract.
Section 27. Bid Security

27.1.
All bids shall be accompanied by a bid security, payable to the procuring entity
concerned as a guarantee that the successful bidder shall, within ten (10) calendar
days or less, as indicated in the Instructions to Bidders, from receipt of the notice of
award, enter into contract with the procuring entity and furnish the performance
security required in Section 39 of this IRR, except when Section 37.1 of this IRR
allows a longer period. Failure to enclose the required bid security in the form and
amount prescribed herein shall automatically disqualify the bid concerned.
27.2.
The procuring entity shall indicate in the Bidding Documents the acceptable forms of
bid security that bidders may opt to use, which shall include the Bid Securing
Declaration provided in Section 27.5 of this IRR and at least one (1) other form, the
amount of which shall be equal to a percentage of the ABC in accordance with the
following schedule:
Form of Bid Security
Amount of Bid Security

(Equal to Percentage of the ABC)
a) Cash or cashiers/managers check issued

by a Universal or Commercial Bank.32
b) Bank draft/guarantee or irrevocable letter
of credit issued by a Universal or
Commercial Bank:
Provided, however,
that it shall be confirmed or authenticated
Two percent (2%)
32
October 2009.
65
by a Universal or Commercial Bank, if

issued by a foreign bank.33
c) Surety bond callable upon demand issued
by a surety or insurance company duly
certified by the Insurance Commission as
authorized to issue such security.
d) Any combination of the foregoing.
Five percent (5%)

Proportionate to share of form
with respect to total amount of
security
For biddings conducted by LGUs, the procuring entity may also require bidders to
submit bid securities in the form of cashiers/managers check, bank draft/guarantee,
or irrevocable letter of credit from other banks certified by the BSP as authorized to
issue such financial instrument.(a)34
27.3.
The bid security shall be denominated in Philippine Pesos and posted in favor of the
procuring entity.(a)
27.4.
Without prejudice to the provisions of the Act and this IRR on the forfeiture of bid
securities, bid securities shall be returned only after the bidder with the Lowest
Calculated Responsive Bid or Highest Rated Responsive Bid, as the case may be, has
signed the contract and furnished the performance security, except to those declared
by the BAC as failed or post-disqualified in accordance with this IRR, upon
submission of a written waiver of their right to file a motion for reconsideration
and/or protest.(a)
27.5.
A Bid Securing Declaration is an undertaking which states, among others, that the
bidder shall enter into contract with the procuring entity and furnish the required
performance security within ten (10) calendar days, or less, as indicated in the
Bidding Documents, from receipt of the Notice of Award, and committing to pay the
corresponding fine and be suspended for a period of time from being qualified to
participate in any government procurement activity in the event it violates any of the
conditions stated therein as required in the guidelines issued by the GPPB.35
27.6.
In no case shall bid security or Bid Securing Declaration be returned later than the
expiration of the bid validity period indicated in the Bidding Documents, unless it has
been extended in accordance with Section 28.2 of this IRR.36
Section 28. Bid Validity

28.1.
Bids and bid securities shall be valid for a reasonable period as determined by the
Head of the Procuring Entity concerned, which shall be indicated in the Bidding
Documents, but in no case shall the period exceed one hundred twenty (120)
calendar days from the date of the opening of bids.
28.2.
Should it become necessary to extend the validity of the bids and bid securities
beyond one hundred twenty (120) calendar days, the procuring entity concerned
33
34
Ibid.
April 2014.
35 Ibid.
36 Amended through GPPB Resolution 03-2012 dated 27 January 2012, published in The Daily Tribune on 20
August 2012. Refer to Appendix 24 for the Guidelines on the Use of Bid Securing Declaration.
66
shall request in writing all those who submitted bids for such extension before the
expiration date therefor. Bidders, however, shall have the right to refuse to grant
such extension without forfeiting their bid security.(37a)
Section 29. Bid Opening
The BAC shall open the bids immediately after the deadline for the submission and receipt of
bids. The time, date, and place of the opening of bids shall be specified in the Bidding
Documents. The bidders or their duly authorized representatives may attend the opening of
bids.
The BAC shall adopt a procedure for ensuring the integrity, security, and
confidentiality of all submitted bids. The minutes of the bid opening shall be made available
to the public upon written request and payment of a specified fee to recover cost of
materials.37
RULE IX BID EVALUATION

Section 30. Preliminary Examination of Bids
30.1.
The BAC shall open the first bid envelopes of prospective bidders in public to
determine each bidders compliance with the documents required to be submitted for
eligibility and for the technical requirements, as prescribed in this IRR. 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 nondiscretionary pass/fail criterion, as stated in the Instructions to Bidders. 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.(a)
30.2.
Immediately after determining compliance with the requirements in the first

envelope, the BAC shall forthwith open the second bid envelope of each remaining
eligible bidder whose first bid envelope was rated passed. The second envelope of
each complying bidder shall be opened within the same day, except as provided
under Section 33 of this IRR. In case one or more of the requirements in the second
envelope of a particular bid is missing, incomplete or patently insufficient, and/or if
the submitted total bid price exceeds the ABC, the BAC shall rate the bid concerned
as failed. Only bids that are determined to contain all the bid requirements for
both components shall be rated passed and shall immediately be considered for
evaluation and comparison.
30.3.
For the procurement of goods where, due to the nature of the requirements of the
project, the required technical specifications/requirements of the contract cannot be
precisely defined in advance of bidding, or where the problem of technically unequal
bids is likely to occur, a two (2)-stage bidding procedure may be employed. In these
cases, the procuring entity concerned shall prepare the Bidding Documents, including
the technical specification in the form of performance criteria only. Under this
procedure, prospective bidders shall be requested at the first stage to submit their
respective eligibility requirements if needed, and initial technical proposals only (no
price tenders). The concerned BAC shall then evaluate the technical merits of the
proposals received from eligible bidders vis--vis the required performance
37
As amended by GPPB Resolution 13-2009, dated 16 December 2009, published in The Daily Tribune on 24
December 2009.
67
standards. A meeting/discussion shall then be held by the BAC with those eligible
bidders whose technical tenders meet the minimum required standards stipulated in
the Bidding Documents for purposes of drawing up the final revised technical
specifications/requirements of the contract.
Once the final revised technical
specifications are completed and duly approved by the concerned BAC, copies of the
same shall be issued to all the bidders identified in the first stage who shall then be
required to submit their revised technical tenders, including their price proposals in
two (2) separate sealed envelopes in accordance with this IRR, at a specified
deadline, after which time no more bids shall be received. The concerned BAC shall
then proceed in accordance with the procedure prescribed in this IRR.
30.4.
For the procurement of consulting services, the detailed implementation of the

procedure specified in this Section shall be as provided in Section 33 of this IRR.
Section 31. Ceiling for Bid Prices

31.1.
The ABC shall be the upper limit or ceiling for acceptable bid prices. If a bid price, as
evaluated and calculated in accordance with this IRR, is higher than the ABC, the
bidder submitting the same shall be automatically disqualified. There shall be no
lower limit or floor on the amount of the award.
31.2.
For Foreign-funded Procurement, the ABC shall be applied as the ceiling, provided
that the following conditions are met:
a)
Bidding Documents are obtainable free of charge on a freely accessible

website. If payment of Bidding Documents is required by the procuring entity,
payment could be made upon the submission of bids.
b)
The procuring entity has procedures in place to ensure that the ABC is based
on recent estimates made by the engineer or the responsible unit of the
procuring entity and that the estimates are based on adequate detailed
engineering (in the case of works) and reflect the quality, supervision and risk
and inflationary factors, as well as prevailing market prices, associated with the
types of works or goods to be procured.
c)
The procuring entity has trained cost estimators on estimating prices and
analyzing bid variances. In the case of infrastructure projects, the procuring
entity must also have trained quantity surveyors.
d)
The procuring entity has established a system to monitor and report bid prices
relative to ABC and engineers/procuring entitys estimate.
e)
The procuring entity has established a monitoring and evaluation system for
contract implementation to provide a feedback on actual total costs of goods
and works.
However, the GOP and the foreign government/foreign or international financing

institution may agree to waive the foregoing conditions.(n)
Section 32. Bid Evaluation for the Procurement of Goods and Infrastructure
Projects
68
32.1.
Members of the BAC, including its staff and personnel, as well as its Secretariat and
TWG, are prohibited from making or accepting any communication with any bidder
regarding the evaluation of their bids until the issuance of the Notice of Award.
However, the BAC, through its Secretariat, may ask in writing the bidder for a
clarification of its bid. All responses to requests for clarification shall be in writing.(a)
32.2.
For the procurement of goods and infrastructure projects, the purpose of bid
evaluation is to determine the Lowest Calculated Bid using the following steps:
32.2.1. The BAC shall immediately conduct a detailed evaluation of all bids using nondiscretionary criteria in considering the following:
a)
Completeness of the bid. Unless the Instructions to Bidders specifically

allow partial bids, bids not addressing or providing all of the required items
in the Bidding Documents including, where applicable, bill of quantities,
shall be considered non-responsive and, thus, automatically disqualified.
In this regard, where a required item is provided, but no price is indicated,
the same shall be considered as non-responsive, but specifying a 0
(zero) for the said item would mean that it is being offered for free to the
Government; and
b)
Arithmetical corrections. Consider computational errors and omissions to

enable proper comparison of all eligible bids. It may also consider bid
modifications if expressly allowed in the Bidding Documents.38 Any
adjustment shall be calculated in monetary terms to determine the
calculated prices.(a)
32.2.2. The BAC shall evaluate all bids on an equal footing to ensure fair and
competitive bid comparison. For this purpose, all bidders shall be required to
include the cost of all taxes, such as, but not limited to, value added tax (VAT),
income tax, local taxes, and other fiscal levies and duties which shall be itemized
in the bid form and reflected in the detailed estimates. Such bids, including said
taxes, shall be the basis for bid evaluation and comparison.(a)
32.2.3. In case of discrepancies between: (a) bid prices in figures and in words, the
latter shall prevail; (b) total price per item and unit price for the item as
extended or multiplied by the quantity of that item, the latter shall prevail; (c)
stated total price and the actual sum of prices of component items, the latter
shall prevail; (d) unit cost in the detailed estimate and unit cost in the bill of
quantities, the latter shall prevail.
32.2.4. Bids shall then be ranked in the ascending order of their total calculated bid
prices, as evaluated and corrected for computational errors, and other bid
modifications, to identify the Lowest Calculated Bid. Total calculated bid prices,
as evaluated and corrected for computational errors, and other bid
modifications, which exceed the ABC shall be disqualified.(a)
32.3.
After all bids have been received, opened, examined, evaluated, and ranked, the BAC
shall prepare the corresponding Abstract of Bids. All members of the BAC shall sign
the Abstract of Bids and attach thereto all the bids with their corresponding bid
38
October 2009.
69
securities and the minutes or proceedings of the bidding. The Abstract of Bids shall
contain the following:
32.4.
a)
Name of the contract and its location, if applicable;
b)
Time, date and place of bid opening; and
c)
Names of bidders and their corresponding calculated bid prices arranged from
lowest to highest, the amount of bid security and the name of the issuing
entity.
The entire evaluation process for the procurement of goods and infrastructure
projects shall be completed within seven (7) calendar days from the deadline for
receipt of proposals. However, for infrastructure projects costing Fifty Million Pesos
(P50,000,000) and below, the entire evaluation process shall be completed in not
more than five (5) calendar days from the deadline for receipt of proposals.(a)
Section 33. Bid Evaluation of Short Listed Bidders for Consulting Services
33.1.
From submission and receipt of bids until the approval by the Head of the Procuring
Entity of the ranking of short listed bidders, those that have submitted their bids are
prohibited from making any communication with any BAC member, including its staff
and personnel, as well as its Secretariat and TWG, regarding matters connected to
their bids. However, the BAC, through its Secretariat, may ask in writing the bidder
for a clarification of its bid. All responses to requests for clarification shall be in
writing.(a)
33.2.
The purpose of bid evaluation is to determine the Highest Rated Bid using the
following steps:
33.2.1. The BAC shall conduct a detailed evaluation of bids using either of the following
evaluation procedures as specified in the Bidding Documents:
a)
Quality-Based Evaluation Procedure

i)
A two-stage procedure shall be adopted whereby each consultant

shall be required to submit his technical and financial proposals
simultaneously in separate sealed envelopes.
ii)
After receipt of bids, the technical proposals shall first be opened

and evaluated, in accordance with Section 33.2.2 of this IRR. The
BAC shall rank the consultants in descending order based on the
numerical ratings of their technical proposals and identify the
Highest Rated Bid: Provided, however, that the Highest Rated Bid
shall pass the minimum score indicated in the Bidding Documents.
iii)
The Head of the Procuring Entity shall approve or disapprove the

recommendations of the BAC within two (2) calendar days after
receipt of the results of the evaluation from the BAC.
iv)
After approval by the Head of the Procuring Entity of the Highest

Rated Bid, its financial proposal shall then be opened. The BAC
shall, within three (3) calendar days, notify and invite the consultant
70
with the Highest Rated Bid for the opening of financial proposal for
the purpose of conducting negotiations with the said consultant. In
the letter of notification, the BAC shall inform the consultant of the
issues in the technical proposal the BAC may wish to clarify during
negotiations.
v)
b)
Negotiations shall be in accordance with Section 33.2.5 of this IRR,

provided that the amount indicated in the financial envelope shall be
made as the basis for negotiations and the total contract amount
shall not exceed the amount indicated in the envelope and the
approved budget for the contract as stated in the Bidding
Documents.(a)
Quality-Cost Based Evaluation Procedure

i)
The technical proposal together with the financial proposal shall be

considered in the evaluation of consultants. The technical proposals
shall be evaluated first using the criteria in Section 33.2.2 of this
IRR. The financial proposals of the consultants who meet the
minimum technical score shall then be opened.
ii)
The financial and technical proposals shall be given corresponding

weights with the financial proposal given a minimum weight of
fifteen percent (15%) up to a maximum of forty percent (40%).
The weight of the technical criteria shall be adjusted accordingly
such that their total weight in percent together with the weight given
to the financial proposal shall add to one hundred percent (100%).
The exact weights shall be approved by the Head of the Procuring
Entity upon the recommendation of the BAC and indicated in the
Bidding Documents.
The BAC shall rank the consultants in
descending order based on the combined numerical ratings of their
technical and financial proposals and identify the Highest Rated Bid.
iii)

recommendations of the BAC within two (2) calendar days after
receipt of the results of the evaluation from the BAC.
iv)
After approval by the Head of the Procuring Entity of the Highest

Rated Bid, the BAC shall, within three (3) calendar days, notify and
invite the consultant with the Highest Rated Bid for negotiation in
accordance with Section 33.2.5 of this IRR, except for item (e)
thereof.(a)
33.2.2. The technical proposals of consultants shall be evaluated based on the following
criteria and using the corresponding numerical weights indicated in the Bidding
Documents:
a)
Quality of personnel to be assigned to the project which covers suitability

of key staff to perform the duties of the particular assignments and
general qualifications and competence including education and training of
the key staff;
71
b)
Experience and capability of the consultant which include records of

previous engagement and quality of performance in similar and in other
projects; relationship with previous and current clients; and, overall work
commitments, geographical distribution of current/impending projects and
attention to be given by the consultant. The experience of the consultant
to the project shall consider both the overall experiences of the firm and
the individual experiences of the principal and key staff including the times
when employed by other consultants; and
c)
Plan of approach and methodology with emphasis on the clarity, feasibility,

innovativeness and comprehensiveness of the plan approach, and the
quality of interpretation of project problems, risks, and suggested
solutions.
For complex or unique undertakings, such as those involving new

concepts/technology or financial advisory services, participating short listed
consultants may be required, at the option of the agency concerned, to make an
oral presentation to be presented by each consultant, or its nominated Project
Manager or head, in case of firms, within fifteen (15) calendar days after the
deadline for submission of technical proposals.
33.2.3. In order to eliminate bias in evaluating the technical proposals, it is
recommended that the highest and lowest scores for each consultant for each
criterion shall not be considered in determining the average scores of the
consultants, except when the evaluation is conducted in a collegial manner.(a)
33.2.4. All participating short listed consultants shall be furnished the results (ranking
and total scores only) of the evaluation after the approval by the Head of the
Procuring Entity of the ranking. Said results shall also be posted in the PhilGEPS
and the website of the procuring entity, whenever available, for a period of not
less than seven (7) calendar days.(a)
33.2.5. Negotiations shall cover the following:
a)
Discussion and clarification of the TOR and Scope of Services;
b)
Discussion and finalization of the methodology and work program

proposed by the consultant;
c)
Consideration of appropriateness of qualifications and pertinent

compensation, number of man-months and the personnel to be assigned
to the job, taking note of over-qualified personnel, to be commensurate
with the compensation of personnel with the appropriate qualifications,
number of man-months and schedule of activities (manning schedule);
d)
Discussion on the services, facilities and data, if any, to be provided by

procuring entity concerned;
e)
Discussion on the financial proposal submitted by the consultant; and
f)
Provisions of the contract.
72
Except for meritorious reasons, negotiations with any one consultant shall be
completed within ten (10) calendar days.(a)
33.2.6. Total calculated bid prices, as evaluated and corrected for minor arithmetical
corrections, such as computational errors, which exceed the ABC shall not be
considered.(a)
33.3.
There should be no replacement of key personnel before the awarding of contract,

except for justifiable reason, such as, illness, death, or resignation provided it is duly
supported by relevant certificates, or any delay caused by the procuring entity. The
procuring entity shall immediately consider negotiation with the next ranked
consultant if unjustifiable replacement of personnel by the first ranked firm is made.
Once the contract has been awarded, no replacement shall be allowed until after fifty
percent (50%) of the personnels man-months have been served, except for
justifiable reasons, subject to appropriate sanctions as prescribed in the PBDs.(a)
33.4.
The entire evaluation process, including the submission of the results thereof to the
Head of the Procuring Entity for approval, shall be completed in not more than
twenty-one (21) calendar days after the deadline for receipt of proposals. The
proposal with the highest score shall be identified as the Highest Rated Bid.(a)
RULE X POST-QUALIFICATION
Section 34. Objective and Process of Post-Qualification
34.1.
The Lowest Calculated Bid/Highest Rated Bid shall undergo post-qualification in order
to determine whether the bidder concerned complies with and is responsive to all the
requirements and conditions as specified in the Bidding Documents.(a)
34.2.
Within three (3) calendar days from receipt by the bidder of the notice from the BAC
that the bidder has the Lowest Calculated Bid or Highest Rated Bid, the bidder shall
submit the following documentary requirements to the BAC:39
a)
Latest income and business tax returns;
b)
Certificate of PhilGEPS Registration or PhilGEPS Registration Number if the

procuring entity is a Philippine foreign office or post, provided that participating
bidders should register with the PhilGEPS prior to bid opening; and
c)
Other appropriate licenses and permits required by law and stated in the
Bidding Documents.
Failure to submit the above requirements on time or a finding against the veracity of
such shall be ground for the forfeiture of the bid security and disqualify the bidder
for award.(n)
34.3.
The post-qualification shall verify, validate, and ascertain all statements made and
documents submitted by the bidder with the Lowest Calculated Bid/Highest Rated
Bid, using non-discretionary criteria, as stated in the Bidding Documents. These
criteria shall consider, but shall not be limited to, the following:
39
March 2014.
73
a)
Legal Requirements. To verify, validate, and ascertain licenses, certificates,

permits, and agreements submitted by the bidder, and the fact that it is not
included in any blacklist as provided in Section 25.2 of this IRR. For this
purpose, the GPPB shall maintain a consolidated file of all blacklisted
suppliers, contractors, and consultants.
b)
Technical Requirements. To determine compliance of the goods, infrastructure

projects, or consulting services offered with the requirements specified in the
Bidding Documents, including, where applicable:
c)
34.4.
i)
Verification and validation of the bidders stated competence and

experience, and the competence and experience of the bidders key
personnel to be assigned to the project, for the procurement of
infrastructure projects and consulting services;
ii)
Verification of availability and commitment, and/or inspection and testing

for the required capacities and operating conditions, of equipment units
to be owned/leased/under purchase by the bidder for use in the contract
under bidding, as well as checking the performance of the bidder in its
ongoing government and private contracts (if any of these on-going
contracts shows a reported negative slippage of at least fifteen percent
(15%), or substandard quality of work as per contract plans and
specifications, or unsatisfactory performance of the contractors
obligations as per contract terms and conditions, at the time of
inspection, and if the BAC verifies any of these deficiencies to be due to
the contractors fault or negligence, the agency shall disqualify the
contractor from the award), for the procurement of infrastructure
projects;
iii)
Verification and/or inspection and testing of the goods/product, aftersales and/or maintenance capabilities, in applicable cases, for the
procurement of goods; and
iv)
Ascertainment of the sufficiency of the bid security as to type, amount,

form and wording, and validity period.
Financial Requirements. To verify, validate and ascertain the bid price

proposal of the bidder and, whenever applicable, the required CLC in the
amount specified and over the period stipulated in the Bidding Documents, or
the bidders NFCC to ensure that the bidder can sustain the operating cash
flow of the transaction.
If the BAC determines that the bidder with the Lowest Calculated Bid/Highest Rated
Bid passes all the criteria for post-qualification, it shall declare the said bid as the
Lowest Calculated Responsive Bid/Highest Rated Responsive Bid, and recommend to
the Head of the Procuring Entity the award of contract to the said bidder at its
submitted bid price or its calculated bid price, whichever is lower or, in the case of
quality-based evaluation procedure, submitted bid price or its negotiated price,
whichever is lower.(a)
74
34.5.
If, however, the BAC determines that the bidder with the Lowest Calculated
Bid/Highest Rated Bid fails the criteria for post-qualification, it shall immediately
notify the said bidder in writing of its post-disqualification and the grounds for it.(a)
34.6.
Immediately after the BAC has notified the first bidder of its post-disqualification, and
notwithstanding any pending request for reconsideration thereof, the BAC shall
initiate and complete the same post-qualification process on the bidder with the
second Lowest Calculated Bid/Highest Rated Bid. If the second bidder passes the
post-qualification, and provided that the request for reconsideration of the first
bidder has been denied, the second bidder shall be post-qualified as the bidder with
the Lowest Calculated Responsive Bid/Highest Rated Responsive Bid.(a)
34.7.
If the second bidder, however, fails the post-qualification, the procedure for postqualification shall be repeated for the bidder with the next Lowest Calculated
Bid/Highest Rated Bid, and so on until the Lowest Calculated Responsive Bid or
Highest Rated Responsive Bid, as the case may be, is determined for award, subject
to Section 37 of this IRR.
34.8.
The post-qualification process shall be completed in not more than seven (7)
calendar days from the determination of the Lowest Calculated Bid/Highest Rated
Bid. In exceptional cases, the post-qualification period may be extended by the
Head of the Procuring Entity, but in no case shall the aggregate period exceed thirty
(30) calendar days.(a)
Section 35. Failure of Bidding

35.1.
The BAC shall declare the bidding a failure when:

a)
No bids are received;
b)
All prospective bidders are declared ineligible;
c)
All bids fail to comply with all the bid requirements or fail post-qualification, or,
in the case of consulting services, there is no successful negotiation; or
d)
The bidder with the Lowest Calculated Responsive Bid/Highest Rated

Responsive Bid refuses, without justifiable cause, to accept the award of
contract, and no award is made in accordance with Section 40 of the Act and
this IRR.
35.2.
In order to determine the reason for the failed bidding, the BAC shall conduct a
mandatory review and evaluation of the terms, conditions, and specifications in the
Bidding Documents, including its cost estimates.(a)
35.3.
Based on its findings, the BAC shall revise the terms, conditions, and specifications,
and if necessary, adjust the ABC, subject to the required approvals, and conduct a
re-bidding with re-advertisement and/or posting, as provided for in Section 21.2 of
this IRR.(a)
35.4.
All bidders who have initially responded to the Invitation to Bid/Request for
Expression of Interest and have been declared eligible or short listed in the previous
biddings shall be allowed to submit new bids. The BAC shall observe the same
75
process and set the new periods according to the same rules followed during the
previous bidding(s).(a)
35.5.
Should there occur a second failure of bidding, the procuring entity may resort to
negotiated procurement, as provided for in Section 53.1 of this IRR.
Section 36. Single Calculated/Rated and Responsive Bid Submission

A single calculated/rated and responsive bid shall be considered for award if it falls under
any of the following circumstances:
a)
If after advertisement, only one prospective bidder submits an LOI and/or applies for
eligibility check, in accordance with the provisions of this IRR, and it meets the
eligibility requirements or criteria, after which it submits a bid which is found to be
responsive to the bidding requirements;
b)
If after advertisement, more than one prospective bidder submits an LOI and/or
applies for eligibility check, in accordance with the provisions of this IRR, but only one
bidder meets the eligibility requirements or criteria, after which it submits a bid which
is found to be responsive to the bidding requirements; or
c)
If after the eligibility check, more than one bidder meets the eligibility requirements,
but only one bidder submits a bid, and its bid is found to be responsive to the bidding
requirements.
In all instances, the procuring entity shall ensure that the ABC reflects the most
advantageous prevailing price for the Government.
RULE XI AWARD, IMPLEMENTATION AND TERMINATION OF THE

CONTRACT
Section 37. Notice and Execution of Award
37.1.
Contract Award
37.1.1. The BAC shall recommend to the Head of the Procuring Entity the award of
contract to the bidder with the Lowest Calculated Responsive Bid/Highest Rated
Responsive Bid or the Single Calculated/Rated Responsive Bid after the postqualification process has been completed.
To facilitate the approval of the award, the BAC shall submit the following
supporting documents to the Head of the Procuring Entity:
a)
b)
c)
d)
e)
Resolution of the BAC recommending award;

Abstract of Bids;
Duly approved program of work or delivery schedule, and Cost Estimates;
Document issued by appropriate entity authorizing the procuring entity to
incur obligations for a specified amount; and
Other pertinent documents required by existing laws, rules, and/or the
procuring entity concerned.(a)
76
37.1.2. Within a period not exceeding seven (7) calendar days from the date of receipt
of the recommendation of the BAC, the Head of the Procuring Entity shall
approve or disapprove the said recommendation. However, for infrastructure
projects with an ABC of Fifty Million Pesos (P50,000,000) and below, the Head of
the Procuring Entity shall approve or disapprove the said recommendation within
four (4) calendar days. In the case of GOCCs and GFIs, the period provided
herein shall be fifteen (15) calendar days. Within the same period provided
herein, the BAC shall notify all losing bidders of its decision.
37.1.3. In case of approval, the Head of the Procuring Entity shall immediately issue the
Notice of Award to the bidder with the Lowest Calculated Responsive
Bid/Highest Rated Responsive Bid. In the event the Head of the Procuring Entity
shall disapprove such recommendation, such disapproval shall be based only on
valid, reasonable, and justifiable grounds to be expressed in writing, copy
furnished the BAC.(n)
37.1.4. Notwithstanding the issuance of the Notice of Award, award of contract shall be
subject to the following conditions:
a)
Submission of the following documents within the prescribed period:

i)
Valid JVA, if applicable, within ten (10) calendar days from receipt by
the bidder of the notice from the BAC that the bidder has the Lowest
Calculated Responsive Bid or Highest Rated Responsive Bid, as the
case may be; or
ii)
In the case of infrastructure projects, valid PCAB license and

registration for the type and cost of the contract to be bid for foreign
bidders, within thirty (30) calendar days from receipt by the bidder
of the notice from the BAC that the bidder has the Lowest Calculated
Responsive Bid, when the Treaty or International or Executive
Agreement expressly allows submission of the PCAB license and
registration for the type and cost of the contract to be as a precondition to the Notice of Award;
b)
Posting of performance security in accordance with Section 39 of this IRR;
c)
Signing of the contract as provided in Section 37.2 of this IRR; and
d)
Approval by higher authority, if required, as provided in Section 37.3 of

this IRR.(n)
37.1.5. Contract award shall be made within the bid validity period provided in Section
28 of this IRR.(a)
37.1.6. The BAC, through the Secretariat, shall post, within three (3) calendar days from
its issuance, the Notice of Award in the PhilGEPS, the website of the procuring
entity, if any, and any conspicuous place in the premises of the procuring
entity.(n)
37.2.
Contract Signing
77
37.2.1. The winning bidder shall post the required Performance Security and enter into
contract with the procuring entity within ten (10) calendar days from receipt by
the winning bidder of the Notice of Award.(a)
37.2.2. The procuring entity shall enter into contract with the winning bidder within the
same ten (10) day period provided that all the documentary requirements are
complied with.(a)
37.2.3. The following documents shall form part of the contract:
a)
b)
c)
d)
e)
f)
g)
37.3.
Contract Agreement;
Bidding Documents;
Winning bidders bid, including the Eligibility requirements, Technical and
Financial Proposals, and all other documents/statements submitted;
Performance Security;
Credit line in accordance with the provisions of this IRR, if applicable;
Notice of Award of Contract; and
Other contract documents that may be required by existing laws and/or
the procuring entity concerned in the Bidding Documents, such as the
construction schedule and S-curve, manpower schedule, construction
methods, equipment utilization schedule, construction safety and health
program approved by the Department of Labor and Employment, and
PERT/CPM for infrastructure projects.(a)
Contract Approval by Higher Authority

When further approval of higher authority is required, the approving authority for the
contract or his duly authorized representative shall be given a maximum of fifteen
(15) calendar days from receipt thereof to approve or disapprove it. However, for
infrastructure projects with an ABC of Fifty Million Pesos (P50,000,000) and below,
the maximum period is five (5) calendar days. In the case of GOCCs, the concerned
board or its duly authorized representative shall be given a maximum of twenty-five
(25) calendar days from receipt thereof to approve or disapprove it.
37.4.
Notice to Proceed
37.4.1. The procuring entity shall issue the Notice to Proceed together with a copy of
the approved contract to the successful bidder within three (3) calendar days
from the date of approval of the contract by the appropriate government
approving authority. However, for infrastructure projects with an ABC of Fifty
Million Pesos (P50,000,000) and below, the maximum period is two (2) calendar
days. The contract effectivity date shall be provided in the Notice to Proceed by
the procuring entity, which date shall not be later than seven (7) calendar days
from its issuance.(a)
37.4.2. The procuring entity, through the BAC Secretariat, shall post a copy of the
Notice to Proceed and the approved contract in the PhilGEPS and40 the website
of the procuring entity, if any, within fifteen (15) calendar days from the
issuance of the Notice to Proceed.(n)
Section 38. Period of Action on Procurement Activities
40
As amended by GPPB Resolution 03-2011, dated 28 January 2011, published in the Manila Times on 6 April
2011.
78
38.1.
The procurement process from the opening of bids up to the award of contract shall
not exceed three (3) months, or a shorter period to be determined by the procuring
entity concerned. All members of the BAC shall be on a jury duty type of
assignment until the Notice of Award is issued by the Head of the Procuring Entity in
order to complete the entire procurement process at the earliest possible time.
For purposes of this section, the term jury duty shall be understood to mean a
state by which the members give utmost priority to BAC assignment over all the
other duties and responsibilities until the requirements for the said assignments at
hand are completed.
38.2.
The maximum periods and earliest possible time for action on specific procurement
activities are provided for in Annex C of this IRR. In case the deadline for each
activity falls on a non-working day (i.e. Saturday and Sunday), legal holiday, or
special non-working holiday, the deadline shall be the next working day.
38.3.
If no action on the contract is taken by the Head of the Procuring Entity or the
appropriate approving authority within the periods specified in this IRR, the contract
concerned shall be deemed approved: Provided, however, That where further
approval by the Office of the President is required, the contract shall not be deemed
approved unless and until the Office of the President gives actual approval to the
contract concerned.
Section 39. Performance Security

39.1.
To guarantee the faithful performance by the winning bidder of its obligations under
the contract in accordance with the Bidding Documents, it shall post a performance
security prior to the signing of the contract.
39.2.
The procuring entity shall indicate in the Bidding Documents at least two (2)
acceptable forms of performance security taken from two (2) categories below, that
bidders may opt to use, the amount of which shall be equal to a percentage of the
total contract price in accordance with the following schedule:
Amount of Performance Security
(Equal to Percentage of the Total
Contract Price)
Form of Performance Security

a) Cash or cashiers/managers check issued by a
Universal or Commercial Bank.41
b) Bank draft/guarantee or irrevocable letter of
credit issued by a Universal or Commercial
Bank:
Provided, however, that it shall be
confirmed or authenticated by a Universal or
Commercial Bank, if issued by a foreign bank.42
c) Surety bond callable upon demand issued by a
surety or insurance company duly certified by
the Insurance Commission as authorized to
issue such security.
d) Any combination of the foregoing.
41
Goods and Consulting Services

Five percent (5%)
Infrastructure Projects Ten
percent (10%)
Thirty percent (30%)

Proportionate to share of form with
respect to total amount of security
October 2009.
42
Ibid.
79
For biddings conducted by LGUs, the procuring entity may also require bidders to
submit performance securities in the form of cashiers/managers check, bank
draft/guarantee, or irrevocable letter of credit from other banks certified by the BSP
as authorized to issue such financial instrument.(a)43
39.3.
The performance security shall be denominated in Philippine Pesos and posted in

favor of the procuring entity, which shall be forfeited in the event it is established
that the winning bidder is in default in any of its obligations under the contract.(n)
39.4.
The performance security shall remain valid until issuance by the procuring entity of
the final Certificate of Acceptance.
39.5.
The performance security may be released by the procuring entity after the issuance
of the Certificate of Acceptance, subject to the following conditions:
a)
Procuring entity has no claims filed against the contract awardee or the surety
company;
b)
It has no claims for labor and materials filed against the contractor; and
c)
Other terms of the contract.(a)
39.6.
For the procurement of infrastructure projects, the winning bidder shall post an
additional performance security following the schedule above to cover any
cumulative increase of more than ten percent (10%) over the original value of the
contract as a result of amendments to order or change orders, extra work orders and
supplemental agreements, as the case may be. The winning bidder shall cause the
extension of the validity of the Performance Security to cover approved contract time
extensions.
39.7.
In case of a reduction in the contract value, or, in the case of procurement of

infrastructure projects, for partially completed works under the contract which are
usable and accepted by the GOP, and the use of which, in the judgment of the
implementing agency or the procuring entity, will not affect the structural integrity of
the entire project, the said agency or procuring entity shall allow a proportional
reduction in the original performance security, provided that any such reduction is
more than ten percent (10%) and that the aggregate of such reductions is not more
than fifty percent (50%) of the original Performance Security.(a)
Section 40. Failure to Enter into Contract and Post Performance Security
40.1.
If the bidder with the Lowest Calculated Responsive Bid/Highest Rated Responsive
Bid or the bidder with the Single Calculated/Rated Responsive Bid, fails, refuses or is
unable to submit the documents required under Section 37.1 of this IRR or to make
good its bid by entering into a contract with the procuring entity or post the required
Performance Security within the period stipulated in this IRR or in the Bidding
Documents, the bid security shall be forfeited and the appropriate sanctions provided
in this IRR and existing laws shall be imposed, except where such failure, refusal or
inability is through no fault of the said bidder.
43
April 2014.
80
40.2.
In the case of the failure, refusal or inability of the bidder with the Lowest Calculated
Responsive Bid/Highest Rated Responsive Bid to submit the documents required
under Section 37.1 of this IRR or to enter into contract and post the required
Performance Security, as provided in this Section, the BAC shall disqualify the said
bidder, and shall initiate and complete the post-qualification process on the bidder
with the second Lowest Calculated Bid/Highest Rated Bid: Provided, however, That
in the case of consulting services, the second Highest Rated Bid has successfully
undergone the negotiation stage in accordance with Section 33.2.5 of this IRR. This
procedure shall be repeated until the Lowest Calculated Responsive Bid/Highest
Rated Responsive Bid is determined for award. However, if no bidder passes postqualification, the BAC shall declare the bidding a failure and conduct a re-bidding
with re-advertisement. Should there occur another failure of bidding after the
conduct of the contracts re-bidding, the procuring entity concerned may enter into a
negotiated procurement.
40.3.
In the case of failure, refusal or inability of the bidder with the Single
Calculated/Rated Responsive Bid to submit the documents required under Section
37.1 of this IRR or to enter into contract and post the required Performance Security,
as provided in this Section, the BAC shall disqualify the said bidder, and shall declare
the bidding a failure and conduct a re-bidding with re-advertisement and/or posting,
as provided for in Sections 21 and 25 of this IRR. Should there occur another failure
of bidding after the conduct of the contracts re-bidding, the procuring entity
concerned may enter into a negotiated procurement.
Section 41. Reservation Clause

The Head of the Procuring Entity reserves the right to reject any and all bids, declare a
failure of bidding, or not award the contract in the following situations:
a)
If there is prima facie evidence of collusion between appropriate public officers or

employees of the procuring entity, or between the BAC and any of the bidders, or if
the collusion is between or among the bidders themselves, or between a bidder and a
third party, including any act which restricts, suppresses or nullifies or tends to
restrict, suppress or nullify competition;
b)
If the BAC is found to have failed in following the prescribed bidding procedures; or
c)
For any justifiable and reasonable ground where the award of the contract will not
redound to the benefit of the GOP, as follows: (i) if the physical and economic
conditions have significantly changed so as to render the project no longer
economically, financially, or technically feasible, as determined by the Head of the
Procuring Entity; (ii) if the project is no longer necessary as determined by the Head
of the Procuring Entity; and (iii) if the source of funds for the project has been
withheld or reduced through no fault of the procuring entity.
Section 42. Contract Implementation and Termination44

42.1.
42.2.
44
The contract implementation guidelines for the procurement of goods, supplies and
materials are provided for in Annex D of this IRR.
The contract implementation guidelines for the procurement of infrastructure
projects are provided for in Annex E of this IRR.
Refer to Appendix 4 for the Guidelines on Termination of Contracts.

81
42.3.
The contract implementation guidelines for the procurement of consulting services

are provided for in Annex F of this IRR.
42.4.
No incentive bonus, in whatever form or for whatever purpose, shall be allowed.
42.5.
Procuring Entities may issue a letter of credit in favor of a local or foreign suppliers;
Provided, that, no payment on the letter of credit shall be made until delivery and
acceptance of the goods as certified to by the procuring entity in accordance with
the delivery schedule provided for in the contract have been concluded; Provided
further, that, the cost for the opening of letter of credit shall be for the account of
the local or foreign supplier and must be stated in the Bidding Documents.
RULE XII DOMESTIC AND FOREIGN PROCUREMENT

Section 43. Procurement of Domestic and Foreign Goods
43.1.
Scope and Application
43.1.1. Consistent with the GOPs obligations under international treaties or agreements,
goods may be obtained from domestic or foreign sources: Provided, however,
That the procurement thereof shall be open only to eligible suppliers,
manufacturers and distributors: Provided, further, That, in the interest of
availability, efficiency and timely delivery of goods, the procuring entity may give
preference to the purchase of domestically-produced and manufactured goods,
supplies and materials that meet the specified or desired quality, in accordance
with the provisions of Commonwealth Act No. 138.(a)
43.1.2. The procuring entity shall give preference to materials and supplies produced,
made and manufactured in the Philippines and to Domestic Entities, subject to
the conditions herein below specified. The award shall be made to the lowest
Domestic Bidder or lowest Domestic Entity, provided his bid is not more than
fifteen percent (15%) in excess of the lowest Foreign Bid.(n)
43.1.3. A Domestic Entity can only claim preference if it secures from the DTI a
certification that it has all the qualifications required under this IRR, in case of
sole proprietorships, SEC, in case of partnerships and corporations, or CDA, in
case of cooperatives.(n)
43.1.4. A Domestic Bidder can only claim preference if it secures from the DTI a
certification that the articles forming part of its bid are substantially composed of
articles, materials, or supplies grown, produced, or manufactured in the
Philippines.(n)
43.2.
Procedures and Guidelines
43.2.1. The preference shall be applied when (a) the lowest Foreign Bid is lower than
the lowest bid offered by a Domestic Bidder, or (b) the lowest bid offered by a
non-Philippine national is lower than the lowest bid offered by a Domestic Entity.
The procuring entity shall ensure that both bids are responsive to the minimum
requirements as specified in the Bidding Documents.(n)
82
43.2.2. For evaluation purposes, the lowest Foreign Bid or the bid offered by a nonPhilippine national shall be increased by fifteen percent (15%).(n)
43.2.3. In the event that (a) the lowest bid offered by a Domestic Bidder does not
exceed the lowest Foreign Bid as increased, or (b) the lowest bid offered by a
Domestic Entity does not exceed the lowest bid offered by a non-Philippine
national as increased, then the procuring entity shall award the contract to the
Domestic Bidder/Entity at the amount of the lowest Foreign Bid or bid offered by
a non-Philippine national, as the case may be.(n)
43.2.4. If the Domestic Entity/Bidder refuses to accept the award of contract at the
amount of the Foreign Bid or bid offered by a non-Philippine national within two
(2) calendar days from receipt of written advice from the BAC, the procuring
entity shall award to the bidder offering the Foreign Bid or the non-Philippine
national, as the case may be, subject to post-qualification and submission of all
the documentary requirements under this IRR.(n)
RULE XIII BIDDING OF PROVINCIAL PROJECTS

Section 44. Bidding of Provincial Projects
Priority programs and infrastructure projects funded out of the annual GAA which are
intended for implementation within the province shall be subject to the same public bidding
and to the procurement processes prescribed in this IRR. For purposes of this Section,
Engineering District infrastructure projects and priority programs fully funded by the
Government and identified in consultation with the concerned members of Congress, shall
constitute provincial projects and shall be governed by this Section.
Section 45. Provincial Bidders
In accordance with Section 45 of the Act, the right to match accorded to provincial bidders is
no longer available after 26 January 2008.(a)
RULE XIV LEASE OF COMPUTERS, COMMUNICATIONS, INFORMATION

AND OTHER EQUIPMENT
Section 46. Lease Contracts
The lease of construction and office equipment, including computers, communication and
information technology equipment, are subject to the same public bidding and to the
processes prescribed under the Act and this IRR. Lease may also cover lease purchases or
lease-to-own and similar variations.
RULE XV DISCLOSURE OF RELATIONS

Section 47. Disclosure of Relations
83
All bids shall be accompanied by a sworn affidavit of the bidder that it is not related to the
Head of the Procuring Entity, members of the BAC, the TWG, and the BAC Secretariat, the
head of the PMO or the end-user unit, and the project consultants, by consanguinity or
affinity up to the third civil degree. Failure to comply with the aforementioned provision
shall be a ground for the automatic disqualification of the bid in consonance with Section 30
of this IRR. For this reason, relation to the aforementioned persons within the third civil
degree of consanguinity or affinity shall automatically disqualify the bidder from participating
in the procurement of contracts of the procuring entity. On the part of the bidder, this
provision shall apply to the following persons:
a)
b)
c)
d)
If the bidder is an individual or a sole proprietorship, to the bidder himself;

If the bidder is a partnership, to all its officers and members;
If the bidder is a corporation, to all its officers, directors, and controlling stockholders;
and
If the bidder is a joint venture, the provisions of items (a), (b), or (c) of this Section
shall correspondingly apply to each of the members of the said joint venture, as may
be appropriate.(a)
RULE XVI ALTERNATIVE METHODS OF PROCUREMENT

Section 48. Alternative Methods
48.1.
Subject to the prior approval of the Head of the Procuring Entity, and whenever
justified by the conditions provided in this Act, the procuring entity may, in order to
promote economy and efficiency, resort to any of the alternative methods of
procurement provided in this Rule. In all instances, the procuring entity shall ensure
that the most advantageous price for the Government is obtained.
48.2.
In accordance with Section 10 of this IRR, as a general rule, the Procuring Entities
shall adopt public bidding as the general mode of procurement and shall see to it
that the procurement program allows sufficient lead time for such public bidding.
Alternative methods shall be resorted to only in the highly exceptional cases provided
for in this Rule.
48.3.
The method of procurement to be used shall be as indicated in the approved APP. If

the original mode of procurement recommended in the APP was public bidding but
cannot be ultimately pursued, the BAC, through a resolution, shall justify and
recommend the change in the mode of procurement to be approved by the Head of
the procuring entity.(n)
Section 49. Limited Source Bidding

49.1.
45
Limited Source Bidding, otherwise known as selective bidding, is a method of
procurement of goods and consulting services that involves direct invitation to bid by
the procuring entity from the list of pre-selected suppliers or consultants45 with
known experience and proven capability on the requirements of the particular
contract. This alternative method of procurement may be employed under any of
the following conditions:
Refer to Appendix 26 for the Pre-Selection Procedure in the Conduct of Limited Source Bidding.
84
a)
Procurement of highly specialized types of goods (e.g., sophisticated defense

equipment, complex air navigation systems, coal) and consulting services
where only a few suppliers or consultants are known to be available, such that
resorting to the public bidding method will not likely result in any additional
suppliers or consultants participating in the bidding; or
b)
Procurement of major plant components where it is deemed advantageous to

limit the bidding to known qualified bidders in order to maintain uniform quality
and performance of the plant as a whole.(a)
49.2.
The pre-selected suppliers or consultants shall be those appearing in a list

maintained by the relevant government authority that has expertise in the type of
procurement concerned. The list of pre-selected suppliers or consultants shall be
updated periodically. A copy of the list shall be submitted to, and maintained
updated with, the GPPB. (a)
49.3.
The pre-selection shall be based upon the capability and resources of the bidders to
perform the contract taking into account their experience and past performance on
similar contracts, capabilities with respect to personnel equipment or manufacturing
facilities, and financial position. Pre-selection shall be done in accordance with the
following procedures provided in the GPMs. (n)
49.4.
The BAC of the concerned procuring entity shall directly invite all the suppliers or
consultants appearing in the pre-selected list. All other procedures for competitive
bidding shall be undertaken, except for the advertisement of Invitation to
Bid/Request for Expression of Interest under Section 21.2.1 of this IRR. (a)
Section 50. Direct Contracting
Direct Contracting or single source procurement is a method of procurement of goods that
does not require elaborate Bidding Documents. The supplier is simply asked to submit a
price quotation or a pro-forma invoice together with the conditions of sale. The offer may
be accepted immediately or after some negotiations. Direct contracting may be resorted to
by concerned Procuring Entities under 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 supplier is a condition

precedent to hold a contractor to guarantee its project performance, in accordance
with the provisions of its contract46; or
c)
Those sold by an exclusive dealer or manufacturer which does not have sub-dealers
selling at lower prices and for which no suitable substitute can be obtained at more
advantageous terms to the GOP.
Section 51. Repeat Order
46
As amended by GPPB Resolution 11-2009, dated 30 November 2009, published in The Daily Tribune on 2
December 2009.
85
Repeat Order, when provided for in the APP, is a method of 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. Repeat orders shall likewise be
subject to the following conditions:
a)
Unit prices of the repeat order must be the same as or lower than those in the original
contract, provided that such prices are still the most advantageous to the GOP after
price verification;
b)
The repeat order will not result in splitting of contracts, requisitions, or purchase
orders, as provided for in Section 54.1 of this IRR;
c)
Except in cases duly approved by the GPPB, the repeat order shall be availed of only
within six (6) months from the contract effectivity date stated in 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 in the original contract.
Section 52. Shopping

52.1.
Shopping47 is a method of procurement of goods 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
qualifications. This method of procurement shall be employed in any of the following
cases:
a)
When there is an unforeseen contingency requiring immediate purchase:

Provided, however, That the amount shall not exceed the thresholds prescribed
in Annex H of this IRR.
b)
Procurement of ordinary or regular office supplies and equipment not available

in the Procurement Service involving an amount not exceeding the thresholds
prescribed in Annex H of this IRR.(a)
52.2.
The phrase ordinary or regular office supplies shall be understood to include those
supplies, commodities, or materials which, depending on the procuring entitys
mandate and nature of operations, are necessary in the transaction of its official
businesses, and consumed in the day-to-day operations of said procuring entity.
However, office supplies shall not include services such as repair and maintenance of
equipment and furniture, as well as trucking, hauling, janitorial, security, and related
or analogous services.(a)
52.3.
Under Section 52.1 (b) of this IRR, at least three (3) price quotations from bona fide
suppliers shall be obtained.(a)
52.4.
The thresholds prescribed in Annex H of this IRR shall be subject to a periodic

review by the GPPB. For this purpose, the GPPB shall be authorized to increase or
decrease the said amount in order to reflect changes in economic conditions and for
other justifiable reasons.(a)
Section 53. Negotiated Procurement
47
Refer to Appendix 19 for the Guidelines on Shopping and Small Value Procurement.
86
Negotiated Procurement is a method of procurement of goods, infrastructure projects and

consulting services, whereby the procuring entity directly negotiates a contract with a
technically, legally and financially capable supplier, contractor or consultant in any of the
following cases:
53.1.
Two Failed Biddings.
Where there has been failure of public bidding for the

second time as provided in Section 35 of the Act and this IRR.
53.1.1. After conduct of the mandatory review of the terms, conditions, specifications,
and cost estimates, as prescribed in Section 35 of this IRR, the BAC shall revise
and agree on the minimum technical specifications, and if necessary, adjust the
ABC, subject to the required approvals. However, the ABC cannot be increased
by more than twenty percent (20%) of the ABC for the last failed bidding.(n)
53.1.2. The BAC shall invite and engage in negotiations with a sufficient number of
suppliers, contractors or consultants to ensure effective competition.(a)
53.1.2.1. In the case of infrastructure projects, bona fide contractors licensed with
the CIAP whose eligibility documents are on file with the procuring entity
concerned or the Department of Public Works and Highways (DPWH)
Contractors Registry, as the case may be, and who have been classified
under the type of contract/project where the subject contract falls are
eligible to be invited for negotiation. Other contractors not previously
deemed eligible may also apply for eligibility.
53.1.2.2. All Procuring Entities shall maintain a registry of suppliers, contractors,
and consultants as basis for drawing up the short list and/or selecting the
suppliers, contractors, and consultants for negotiations.
53.1.3. Any requirements, guidelines, documents, clarifications, or other information
relative to the negotiations that are communicated by the procuring entity to a
supplier, contractor, or consultant shall be communicated on an equal basis to
all other suppliers, contractors, or consultants engaging in negotiations with the
procuring entity relative to the procurement.(n)
53.1.4. Following completion of the negotiations, the procuring entity shall request all
suppliers, contractors, or consultants remaining in the proceedings to submit, on
a specified date, a best and final offer with respect to all aspects of their
proposals.(n)
53.1.5. The procuring entity shall select the successful offer on the basis of such best
and final offers which should meet the procuring entitys minimum technical
requirements and should not exceed the ABC.(n)
53.1.6. In all stages of the negotiations, observers shall be invited.(n)
53.2.
Emergency Cases. 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. In the case of infrastructure projects, the procuring entity has the
87
option to undertake the project through negotiated procurement or by administration

or, in high security risk areas, through the AFP48.
53.3.
Take-Over of Contracts. 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.
53.3.1. The contract may be negotiated starting with the second lowest
calculated/highest rated bidder for the project under consideration at the
bidders original bid price.(a)
53.3.2. If negotiation fails, then negotiation shall be done with the third lowest
calculated/highest rated bidder at his original price. If the negotiation fails
again, a short list of at least three (3) eligible contractors shall be invited to
submit their bids, and negotiation shall be made starting with the lowest
calculated/highest rated bidder.(a)
53.3.3. Authority to negotiate contracts for projects under these exceptional cases shall
be subject to prior approval by the Heads of the Procuring Entities concerned,
within their respective limits of approving authority.(a)
53.4.
Adjacent or Contiguous. Where the subject contract is adjacent or contiguous to
53.5.
Agency-to-Agency. Procurement of infrastructure projects, consulting services,
53.6.
Procurement Agent. In order to hasten project implementation, Procuring Entities
53.7.
Highly Technical Consultants. In the case of individual consultants hired to do
an on-going Infrastructure Project or Consulting Service where the consultants have

unique experience and expertise to deliver the required service: Provided, however,
That (a) the original contract is the result of a Competitive Bidding; (b) the subject
contract to be negotiated has similar or related scopes of work; (c) it is within the
contracting capacity of the contractor/consultant; (d) the contractor/consultant uses
the same prices or lower unit prices as in the original contract less mobilization cost;
(e) the amount involved does not exceed the amount of the ongoing project; and (f)
the contractor/consultant has no negative slippage/delay: Provided, further, That
negotiations for the procurement are commenced before the expiry of the original
contract.(a)
and goods from another agency of the GOP, such as the PS-DBM, which is tasked
with a centralized procurement of Common-Use Supplies for the GOP in accordance
with Letters of Instruction No. 755 and Executive Order No. 359, series of 1989.(a)49
which may not have the proficiency or capability to undertake a particular
procurement, as determined by the Head of the Procuring Entity concerned, may
request other GOP agencies to undertake such procurement for them, or at their
option, recruit and hire consultants or procurement agents to assist them directly
and/or train their staff in the management of the procurement function. The GPPB
shall issue guidelines to implement this provision.(a)
work that is (i) highly technical or proprietary; or (ii) primarily confidential or policy
48
Refer to Appendix 5 for the Guidelines on Implementation of Infrastructure Projects Undertaken by the AFP
Corps of Engineers.
49 As amended by GPPB Resolution 12-2013, dated 26 April 2013, published in The Manila Times on 12
November 2013.
88
determining, where trust and confidence are the primary consideration for the hiring
of the consultant: Provided, however, That the term of the individual consultants
shall, at the most, be on a six month basis, renewable at the option of the appointing
Head of the Procuring Entity, but in no case shall exceed the term of the latter.(a)50
53.8.
Defense Cooperation Agreement. Upon prior approval by the President of the
53.9.
Small Value Procurement.51
Philippines, and when the procurement for use by the AFP involves major defense
equipment or materiel and/or defense-related consultancy services, when the
expertise or capability required is not available locally, and the Secretary of National
Defense has determined that the interests of the country shall be protected by
negotiating directly with an agency or instrumentality of another country with which
the Philippines has entered into a defense cooperation agreement or otherwise
maintains diplomatic relations: Provided, however, That the performance by the
supplier of its obligations under the procurement contract shall be covered by a
performance security in accordance with Section 39 of this IRR.(a)
Where the procurement does not fall under
Shopping in Section 52 of this IRR and the amount involved does not exceed the
thresholds prescribed in Annex H of this IRR.(a)
53.9.1. The procuring entity shall draw up a list of at least three (3) suppliers,
contractors, or consultants of known qualifications which will be invited to
submit proposals, in the case of goods and infrastructure projects, or curriculum
vitae, in the case of consulting services.(a)
53.9.2. The thresholds prescribed in Annex H of this IRR shall be subject to the
periodic review by the GPPB. For this purpose, the GPPB shall be authorized to
increase or decrease the said amount in order to reflect the changes in
economic conditions and for other justifiable reasons.(n)
53.10. Lease of Real Property. Lease of privately owned real property and venue for
official use, subject to guidelines52 to be issued by the GPPB.(a)
53.11. NGO Participation. When an appropriation law or ordinance earmarks an amount
to be specifically contracted out to Non-Governmental Organizations (NGOs), the
procuring entity may enter into a Memorandum of Agreement with an NGO, subject
to guidelines53 to be issued by the GPPB.(a)
53.12. Community Participation. Where, in the interest of project sustainability or to
achieve certain specific social objectives, it is desirable in selected projects, or its
components, to call for participation of local communities in the delivery of goods,
including non-consulting services, and simple infrastructure projects, subject to the
guidelines to be issued by the GPPB.(n)54
53.13. United Nations Agencies. Procurement from specialized agencies of the United
Nations of any of the following: (a) small quantities of off-the-shelf goods, primarily
50
October 2009.
51 Refer to Appendix 19 for the Guidelines on Shopping and Small Value Procurement.
52 Refer to Appendix 18 for the Implementing Guidelines for Lease of Privately-Owned Real Estate.
53 Refer to Appendix 15 for the Guidelines on Non-Governmental Organization Participation in Public
Procurement.
54 As amended by GPPB Resolution 03-2013, dated 21 January 2013, published in Malaya Business Insight on 21
March 2014.
89
in the fields of education and health; and (b) specialized products where the number
of suppliers is limited, such as vaccines or drugs.(n)
Section 54. Terms and Conditions for the use of Alternative Methods
54.1.
Splitting of Government Contracts is not allowed. Splitting of Government Contracts

means the division or breaking up of GOP contracts into smaller quantities and
amounts, or dividing contract implementation into artificial phases or sub-contracts
for the purpose of evading or circumventing the requirements of law and this IRR,
especially the necessity of public bidding and the requirements for the alternative
methods of procurement.
54.2.
For alternative methods of procurement, advertisement and posting as prescribed in

Section 21.2.1 of this IRR may be dispensed with: Provided, however, That the BAC,
through its Secretariat, shall post the invitation or request for submission of price
quotations for Shopping under Sections 52.1 (b) and Negotiated Procurement under
Sections 53.1 (two-failed biddings), 53.9 (small value procurement); and 53.11 (NGO
Participation)55 of this IRR in the PhilGEPS website, the website of the procuring
entity concerned, if available, and at any conspicuous place reserved for this purpose
in the premises of the procuring entity for a period of seven (7) calendar days.(a)
54.3.
In all instances of alternative methods of procurement, the BAC, through the

Secretariat, shall post, for information purposes, the notice of award in the PhilGEPS
website, the website of the procuring entity concerned, if available, and at any
conspicuous place reserved for this purpose in the premises of the procuring entity.(a)
54.4.
Except for Limited Source Bidding under Section 49 of this IRR, submission of bid
securities may be dispensed with.(n)
54.5.
Performance and warranty securities, as prescribed in Sections 39 and 62 of this IRR,

shall be submitted for contracts acquired through the alternative methods of
procurement, except for Shopping under Section 52 and Negotiated Procurement
under Sections 53.2 (emergency cases), 53.5 (agency-to-agency), 53.9 (small value
procurement), 53.10 (lease of real property), 53.12 (community participation), and
53.13 (UN agencies).(n)56
54.6.
Manufacturers, suppliers, distributors, contractors, and/or consultants are mandated

to register with PhilGEPS and provide a PhilGEPS Registration number in the
following alternative methods of procurement as a condition for award of the
contract:57
(a)
(b)
(c)
(d)
(e)
Section 49 Limited Source Bidding

Section 50 Direct Contracting
Section 51 Repeat Order
Section 52.1 (b) Shopping for Ordinary Office Supplies and Equipment not
available in the Procurement Service
Section 53.1 Two Failed Bidding
55
As amended by GPPB Resolution 03-2011, dated 28 January 2011, published in the Manila Times on 6 April
2011.
56 As amended by GPPB Resolution 20-2012, dated 27 July 2012, published in the Malaya Business Insight on 21
March 2014.
57 As amended by GPPB Resolution 30-2013, dated 25 October 2013, published in The Manila Times on 27
November 2014.
90
(f)
(g)
(h)
(i)
(j)
Section
Section
Section
Section
Section
53.3 Take Over of Contracts

53.4 Adjacent and Contiguous
53.9 Small Value Procurement
53.10 Lease of Real Property
53.11 NGO Participation
EXCEPT for the following:

(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
Section
Section
Section
Section
Section
Section
Section
Section
52.1 (a) Shopping under Unforeseen Contingency

53.2 Emergency Cases
53.5 Agency to Agency Agreements
53.6 Procurement Agent (except private procurement agents)
53.7 Highly Technical Consultants
53.8 Defense Cooperation Agreement
53.12 Community Participation
53.13 United Nations Agency
RULE XVII PROTEST MECHANISM

Section 55. Protests on Decisions of the BAC
55.1.
55.2.
55.3.
Decisions of the BAC at any stage of the procurement process may be questioned by
filing a request for reconsideration within the three (3) calendar days upon receipt of
written notice or upon verbal notification. The BAC shall decide on the request for
reconsideration within seven (7) calendar days from receipt thereof.
If a failed bidder signifies his intent to file a request for reconsideration, the BAC
shall keep the bid envelopes of the said failed bidder unopened and/or duly sealed
until such time that the request for reconsideration has been resolved.(a)
In the event that the request for reconsideration is denied, decisions of the BAC may
be protested in writing to the Head of the Procuring Entity: Provided, however, That
a prior request for reconsideration should have been filed by the party concerned in
accordance with the preceding Section, and the same has been resolved.(a)
The protest must be filed within seven (7) calendar days from receipt by the party
concerned of the resolution of the BAC denying its request for reconsideration. A
protest may be made by filing a verified position paper with the Head of the
Procuring Entity concerned, accompanied by the payment of a non-refundable
protest fee. The non-refundable protest fee shall be as follows:58
ABC RANGE
50 million pesos and below
More than 50 million pesos to 100 million pesos
More than 100 million pesos to 500 million pesos
More than 500 million pesos to 1 billion pesos
More than 1 billion pesos to 2 billion pesos
More than 2 billion pesos to 5 billion pesos
More than 5 billion pesos
58
PROTEST FEE
0.75% of the ABC
PhP 500,000.00
0.5% of the ABC
PhP 2,500,000.00
0.25% of the ABC
PhP 5,000,000.00
0.1 % of the ABC
As amended by GPPB Resolution 05-2012, dated 30 March 2012, published in The Daily Tribune on 20 August
2012.
91
55.4.
The verified position paper shall contain the following information:

a)
b)
c)
d)
e)
f)
g)
The name of bidder;

The office address of the bidder;
The name of project/contract;
The implementing office/agency or procuring entity;
A brief statement of facts;
The issue to be resolved; and
Such other matters and information pertinent and relevant to the proper
resolution of the protest.
The position paper is verified by an affidavit that the affiant has read and understood
the contents thereof and that the allegations therein are true and correct of his
personal knowledge or based on authentic records. An unverified position paper
shall be considered unsigned, produces no legal effect, and results to the outright
dismissal of the protest.
In addition, the bidder shall likewise certify under oath that:
a)
he has not theretofore commenced any action or filed any claim involving the
same issues in any court, tribunal or quasi-judicial agency and, to the best of
his knowledge, no such other action or claim is pending therein;
b)
if there is such other pending action or claim, he is including a complete

statement of the present status thereof; and
c)
if he should thereafter learn that the same or similar action or claim has been
filed or is pending, he shall report that fact within five (5) days therefrom to
the Head of Procuring Entity wherein his protest is filed.
Failure to comply with the foregoing requirements shall not be curable by mere
amendment of the verified position paper.59
Section 56. Resolution of Protests
The protests shall be resolved strictly on the basis of records of the BAC. The Head of the
Procuring Entity shall resolve the protest within seven (7) calendar days from receipt
thereof. Subject to the provisions of existing laws on the authority of Department
Secretaries and the heads of agencies, branches, constitutional commissions, or
instrumentalities of the GOP to approve contracts, the decisions of the Head of the Procuring
Entity concerned shall be final up to the limit of his contract approving authority. With
respect to LGUs, the decision of the local chief executive shall be final. The head of the BAC
Secretariat shall furnish the GPPB a copy of the decision resolving the protest within seven
(7) calendar days from receipt thereof.
Section 57. Non-interruption of the Bidding Process
In no case shall any protest taken from any decision treated in this Rule stay or delay the
bidding process: Provided, however, That protests must first be resolved before any award
is made.
59
Ibid.
92
Section 58. Resort to Regular Courts; Certiorari

58.1.
Court action may be resorted to only after the protests contemplated in this Rule
shall have been completed, i.e., resolved by the Head of the Procuring Entity with
finality. The regional trial court shall have jurisdiction over final decisions of the
Head of the Procuring Entity. Court actions shall be governed by Rule 65 of the 1997
Rules of Civil Procedure.
58.2.
This provision is without prejudice to any law conferring on the Supreme Court the
sole jurisdiction to issue temporary restraining orders and injunctions relating to
infrastructure projects of the GOP.
58.3.
The head of the BAC Secretariat of the procuring entity concerned shall ensure that
the GPPB shall be furnished a copy of the cases filed in accordance with this Section.
RULE XVIII SETTLEMENT OF DISPUTES

Section 59. Arbitration
59.1.
If any dispute or difference of any kind whatsoever shall arise between the parties in
connection with the implementation of the contract covered by the Act and this IRR,
the parties shall make every effort to resolve amicably such dispute or difference by
mutual consultation.(n)
59.2.
Any and all disputes arising from the implementation of a contract covered by the
Act and this IRR shall be submitted to arbitration in the Philippines according to the
provisions of Republic Act No. 876, otherwise known as the "Arbitration Law" and
Republic Act No. 9285, otherwise known as the Alternative Dispute Resolution Act of
2004: Provided, however, That, disputes that are within the competence of the
Construction Industry Arbitration Commission to resolve shall be referred thereto.
The process of arbitration shall be incorporated as a provision in the contract that
will be executed pursuant to the provisions of the Act and this IRR: Provided,
further, That, by mutual agreement, the parties may agree in writing to resort to
other alternative modes of dispute resolution.(a)
Section 60. Appeals

The arbitral award and any decision rendered in accordance with the foregoing Section shall
be appealable by way of a petition for review to the Court of Appeals. The petition shall
raise pure questions of law and shall be governed by the Rules of Court.
RULE XIX CONTRACT PRICES AND WARRANTIES

Section 61. Contract Prices
61.1.
For the given scope of work in the contract as awarded, all bid prices shall be
considered as fixed prices, and therefore not subject to price adjustment and
escalation during contract implementation, except under extraordinary circumstances
93
and upon prior approval of the GPPB60, or when a Treaty or International or

Executive Agreement expressly allows it pursuant to Section 4 of this IRR.(a)
61.2.
In cases where the cost of the awarded contract is affected by any applicable new
laws, ordinances, regulations, or other acts of the GOP, promulgated after the date
of bid opening, a contract price adjustment shall be made or appropriate relief shall
be applied on a no loss-no gain basis.(17a)
61.3.
Any request for price escalation under extraordinary circumstances shall be

submitted by the concerned entity to the National Economic and Development
Authority (NEDA) with the endorsement of the procuring entity. The burden of
proving the occurrence of extraordinary circumstances that will allow for price
escalation shall rest with the entity requesting for such escalation. NEDA shall only
respond to such request after receiving the proof and the necessary documentation.
For purposes of this Section, extraordinary circumstances shall refer to events that
may be determined by the NEDA in accordance with the Civil Code of the Philippines,
and upon the recommendation of the procuring entity concerned.(a)
61.4.
All contracts shall be denominated and payable in Philippine currency, and this shall
be stated in the Bidding Documents: Provided, however, That subject to the
guidelines61 issued by the GPPB, the procuring entity may provide in the Bidding
Documents that obligations may be paid in foreign currency; Provided, further, That
should the procuring entity receive bids denominated in foreign currency, the same
shall be converted to Philippine currency based on the exchange rate prevailing on
the day of the bid opening for purposes of bid comparison and evaluation.(a)
Section 62. Warranty

62.1.
For the procurement of goods, in order to assure that manufacturing defects shall be
corrected by the supplier, a warranty security shall be required from the contract
awardee for a minimum period of three (3) months, in the case of Expendable
Supplies, or a minimum period of one (1) year, in the case of Non-expendable
Supplies, after acceptance by the procuring entity of the delivered supplies.
The obligation for the warranty shall be covered by either retention money in an
amount equivalent to at least ten percent (10%) of every progress payment, or a
special bank guarantee equivalent to at least ten percent (10%) of the total contract
price. The said amounts shall only be released after the lapse of the warranty period
or, in the case of Expendable Supplies, after consumption thereof: Provided,
however, That the supplies delivered are free from patent and latent defects and all
the conditions imposed under the contract have been fully met.(a)
62.2.
For the procurement of infrastructure projects, the following warranties shall be

made:
62.2.1. From the time project construction commenced up to final acceptance, the
contractor shall assume full responsibility for the following:
60
Refer to Appendix 2 for the Guidelines for Contract Price Escalation.

Refer to Appendix 8 for the Guidelines on Procurements Involving Foreign-Denominated Bids, Contract Prices,
and Payment Using Letters of Credit.
61
94
a)
any damage or destruction of the works except those occasioned by force

majeure; and
b)
safety, protection, security, and convenience of his personnel, third

parties, and the public at large, as well as the works, equipment,
installation and the like to be affected by his construction work;(a)
62.2.2. One (1) year from project completion up to final acceptance or the defects
liability period.
62.2.2.1. The contractor shall undertake the repair works, at his own expense, of
any damage to the infrastructure on account of the use of materials of
inferior quality, within ninety (90) days from the time the Head of the
Procuring Entity has issued an order to undertake repair. In case of failure
or refusal to comply with this mandate, the procuring entity shall
undertake such repair works and shall be entitled to full reimbursement of
expenses incurred therein upon demand.
62.2.2.2. The defects liability period shall be covered by the Performance
Security of the contractor required in Section 39.1 of this IRR, which shall
guarantee that the contractor performs his responsibilities stated in the
immediately preceding Section. If the contractor fails to comply with its
obligations under Section 62.2.2.1 of this IRR, the procuring entity shall
forfeit its performance security, subject its property(ies) to attachment or
garnishment proceedings, and perpetually disqualify it from participating in
any public bidding. All payables of the GOP in his favor shall be offset to
recover the costs.(a)
62.2.3. From final acceptance of the project up to the period prescribed in Section
62.2.3.2.
62.2.3.1. The following shall be held responsible for Structural Defects, i.e., major
faults/flaws/deficiencies in one or more key structural elements of the
project which may lead to structural failure of the completed elements or
structure, or Structural Failures, i.e., where one or more key structural
elements in an infrastructure facility fails or collapses, thereby rendering
the facility or part thereof incapable of withstanding the design loads,
and/or endangering the safety of the users or the general public:
a)
Contractor Where Structural Defects/Failures arise due to faults

attributable
to
improper
construction,
use
of
inferior
quality/substandard materials, and any violation of the contract
plans and specifications, the contractor shall be held liable;
b)
Consultants Where Structural Defects/Failures arise due to faulty

and/or inadequate design and specifications as well as construction
supervision, then the consultant who prepared the design or
undertook construction supervision for the project shall be held
liable;
c)
Procuring Entitys Representatives/Project Manager/Construction

Managers and Supervisors The project owners representative(s),
project manager, construction manager, and supervisor(s) shall be
95
held liable in cases where the Structural Defects/Failures are due to

his/their willful intervention in altering the designs and other
specifications; negligence or omission in not approving or acting on
proposed changes to noted defects or deficiencies in the design
and/or specifications; and the use of substandard construction
materials in the project;
d)
Third Parties - Third Parties shall be held liable in cases where

Structural Defects/Failures are caused by work undertaken by them
such as leaking pipes, diggings or excavations, underground cables
and electrical wires, underground tunnel, mining shaft and the like,
in which case the applicable warranty to such structure should be
levied to third parties for their construction or restoration works.
e)
Users - In cases where Structural Defects/Failures are due to

abuse/misuse by the end user of the constructed facility and/or non
compliance by a user with the technical design limits and/or
intended purpose of the same, then the user concerned shall be held
liable.(a)
62.2.3.2. The warranty against Structural Defects and Failures shall cover the
following periods from final acceptance, except those occasioned by force
majeure:
a)
Permanent Structures: Fifteen (15) years

Buildings of types 4 and 5 as classified under the National Building
Code of the Philippines and other structures made of steel, iron, or
concrete which comply with relevant structural codes (e.g., DPWH
Standard Specifications), such as, but not limited to, steel/concrete
bridges, flyovers, aircraft movement areas, ports, dams, tunnels,
filtration and treatment plants, sewerage systems, power plants,
transmission and communication towers, railway system, and other
similar permanent structures;
b)
Semi-Permanent Structures: Five (5) years

Buildings of types 1, 2, and 3 as classified under the National Building
Code of the Philippines, concrete/asphalt roads, concrete river
control, drainage, irrigation lined canals, river landing, deep wells,
rock causeway, pedestrian overpass, and other similar semipermanent structures; and
c)
Other Structures: Two (2) years

Bailey and wooden bridges, shallow wells, spring developments, and
other similar structures.(a)
62.2.3.3. To guarantee that the contractor shall perform his responsibilities as

prescribed in Section 62.2.3.1 (a) of this IRR, it shall be required to post a
warranty security in accordance with the following schedule:
96
Form of Warranty Security

a) Cash or Letter of Credit issued
by a Universal or Commercial
Bank: Provided, however, that
the LC shall be confirmed or
authenticated by a Universal or
Commercial Bank, if issued by a
foreign bank.
b) Bank guarantee confirmed by a
Universal or Commercial Bank.
c) Surety bond callable upon
demand issued by GSIS or a
surety or insurance company
duly certified by the Insurance
Commission as authorized to
issue such security.
Amount of Warranty Security

(Equal to Percentage of the Total
Contract Price)
Five percent (5%)
Ten percent (10%)
Thirty percent (30%)
For biddings conducted by LGUs, the contractor may also submit warranty
securities in the form of bank guarantee or letter of credit from other
banks certified by the BSP as authorized to issue such financial
instrument.(a)
62.2.3.4. The warranty security shall be denominated in Philippine Pesos, remain
effective for one (1) year from the date of issuance of the Certificate of
Final Acceptance by the procuring entity, and returned only after the lapse
of the said one (1) year period.(a)
62.2.4. In case of Structural Defects/Failure occurring during the applicable warranty
period provided in Section 62.2.3.2 hereof, the procuring entity shall undertake
the necessary restoration or reconstruction works and shall be entitled to full
reimbursement by the parties found to be liable for expenses incurred therein
upon demand, without prejudice to the filing of appropriate administrative, civil,
and/or criminal charges against the responsible persons as well as the forfeiture
of warranty securities posted in favor of the procuring entity.(a)
RULE XX THE GOVERNMENT PROCUREMENT POLICY BOARD

Section 63. Organization and Functions
63.1.
The Government Procurement Policy Board (GPPB), as established in Section 63 of

the Act, shall have the following duties and responsibilities:
a)
To protect national interest in all matters affecting public procurement, having

due regard to the countrys regional and international obligations;
b)
To formulate and amend public procurement policies, rules and regulations,

and amend, whenever necessary, this IRR;
c)
To prepare a generic procurement manual and the standard bidding forms for
procurement;
97
d)
To ensure the proper implementation by Procuring Entities of the Act, this IRR
and all other relevant rules and regulations pertaining to public procurement;
e)
To establish a sustainable training program to develop the capacity of

Government procurement officers and employees, and to ensure the conduct
of regular procurement training programs by and for Procuring Entities; and
f)
To conduct an annual review of the effectiveness of the Act and recommend

any amendments thereto, as may be necessary.
The GPPB shall be under the administrative supervision of the DBM for general
oversight and for budgeting purposes.
63.2.
The GPPB Technical Support Office

The GPPB shall create a Technical Support Office (TSO) which shall provide support
in the performance of its duties and responsibilities specified in the Act and this IRR.
The GPPB shall determine the TSOs organizational structure and staffing, subject to
DBM approval. The TSO shall be headed by an Executive Director of good moral
character, unquestionable integrity, and known probity.
63.3.
63.4.
The TSO shall provide research, technical and administrative support to the GPPB,
including:
a)
Research-based procurement policy recommendations and rule-drafting;
b)
Development and updating of generic procurement manuals and standard

bidding forms;
c)
Management and conduct of training on procurement systems and procedures;
d)
Evaluation of the effectiveness of the government procurement system and

recommendation of improvements in systems and procedures;
e)
Monitoring the compliance to the Act and assisting Procuring Entities improve
their compliance;
f)
Monitoring the implementation and effectiveness of the PHILGEPS; and
g)
Secretariat support.
In addition to the powers granted under the Act and this IRR, the GPPB shall absorb
all the powers, functions and responsibilities of the Procurement Policy Board created
under Executive Order No. 359, series of 1989. All functions related to procurement
policy-making of the Infrastructure Committee of the NEDA Board are transferred to
the GPPB.
Section 64. Membership

The GPPB shall be composed of the Secretary of the Department of Budget and
Management, as Chairman, the Director-General of NEDA, as Alternate Chairman, with the
following as Members; the Secretaries of the Departments of Public Works and Highways,
98
Finance, Trade and Industry, Health, National Defense, Education, Interior and Local
Government, Science and Technology, Transportation and Communications, and Energy, or
their duly authorized representatives and a representative from the private sector to be
appointed by the President upon the recommendation of the GPPB. The GPPB may invite
representatives from the COA or from relevant Government agencies and private sectors to
serve as resource persons.
RULE XXI PENAL CLAUSE

Section 65. Offenses and Penalties
65.1.
Without prejudice to the provisions of R.A. 3019 and other penal laws, public officers
who commit any of the following acts shall suffer the penalty of imprisonment of not
less than six (6) years and one (1) day, but not more than fifteen (15) years:
a)
Opening any sealed bid including but not limited to Bids that may have been
submitted through the electronic system and any and all documents required
to be sealed or divulging their contents, prior to the appointed time for the
public opening of Bids or other documents.
b)
Delaying, without justifiable cause, the screening for eligibility, opening of bids,
evaluation and post evaluation of bids, and awarding of contracts beyond the
prescribed periods of action provided for in this IRR.
c)
Unduly influencing or exerting undue pressure on any member of the BAC or

any officer or employee of the procuring entity to take a particular action which
favors, or tends to favor a particular bidder.
d)
Splitting of contracts which exceed procedural purchase limits to avoid

competitive bidding or to circumvent the limits of approving or procurement
authority.
e)
Abuse by the Head of the Procuring Entity of his power to reject any and all
bids as mentioned under Section 41 of the Act and this IRR, with manifest
preference to any bidder who is closely related to him in accordance with
Section 47 of the Act and this IRR.
When any of the foregoing acts is done in collusion with private individuals, the
private individuals shall likewise be liable for the offense.
In addition, the public officer involved shall also suffer the penalty of temporary
disqualification from public office, while the private individual shall be permanently
disqualified from transacting business with the Government.
65.2.
Private individuals who commit any of the following acts, and any public officer who
conspires with them, shall upon conviction, suffer the penalty of imprisonment of not
less than six (6) years and one (1) day but not more than fifteen (15) years:
a)
When two or more bidders agree and submit different bids as bona fide
bidders, all the while knowing that the bid(s) of one or more of them was so
much higher than the other that the latter could not be honestly accepted and
that the contract will surely be awarded to the pre-arranged lowest bid.
99
b)
When a bidder maliciously submits different bids through two or more persons,
corporations, partnerships or any other business entity in which he has an
interest, to create the appearance of competition that does not in fact exist so
as to be adjudged as the winning bidder.
c)
When two or more bidders enter into an agreement which calls upon one or
more of them to refrain from bidding for procurement contracts, or which
requires one or more of them to withdraw Bids already submitted, in order to
secure an undue advantage to any one of them.
d)
When a bidder, by himself or in connivance with others, employs schemes

which tend to restrain the natural rivalry of the parties or operates to stifle or
suppress competition and thus produce a result disadvantageous to the public.
In addition, the public officer persons involved shall also suffer the penalty of
temporary or perpetual disqualification from public office and the private individual
shall be permanently disqualified from transacting business with the Government.
65.3.
Private individuals who commit any of the following acts, and any public officer
conspiring with them, shall upon conviction, suffer the penalty of imprisonment of
not less than six (6) years and one (1) day but not more than fifteen (15) years:
a)
Submitting eligibility requirements of whatever kind and nature that contain

false information or falsified documents calculated to influence the outcome of
the eligibility screening process or conceal such information in the eligibility
requirements when the information will lead to a declaration of ineligibility from
participating in public bidding.
b)
Submitting Bidding Documents of whatever kind and nature that contain false
information or falsified documents or conceal such information in the Bidding
Documents, in order to influence the outcome of the public bidding.
c)
Participating in a public bidding using the name of another or allowing another

to use ones name for the purpose of participating in a public bidding.
d)
Withdrawing a bid, after it shall have qualified as the Lowest Calculated

Bid/Highest Rated Bid, or refusing to accept an award, without just cause or
for the purpose of forcing the procuring entity to award the contract to another
bidder. This shall include the non-submission within the prescribed time, or
delaying the submission of requirements such as, but not limited to,
performance security, preparatory to the final award of the contract.
65.4.
It is understood that the above penalties and offenses shall cover all types of
procurement whether done manually or electronically.
65.5.
When the bidder is a juridical entity, criminal liability and the accessory penalties
shall be imposed on its directors, officers or employees who actually commit any of
the foregoing acts. If a person previously held liable or found guilty under the
provisions of the Act and this IRR has a controlling interest in a prospective bidderentity, the said bidder-entity shall be disqualified to participate in any procurement
activity being conducted by the Government.
100
Section 66. Jurisdiction

Jurisdiction over the offenses defined under this Rule shall belong to the appropriate courts,
according to laws existing at the time of the commission of the offenses.
RULE XXII CIVIL LIABILITY

Section 67. Civil Liability in Case of Conviction
Without prejudice to administrative sanctions that may be imposed in proper cases, a
conviction under the Act and this IRR or R.A. 3019 shall carry with it civil liability, which may
either consist of restitution for the damage done or the forfeiture in favor of the government
of any unwarranted benefit derived from the act or acts in question, or both, at the
discretion of the courts.
Section 68. Liquidated Damages
All contracts executed in accordance with the Act and this IRR shall contain a provision on
liquidated damages which shall be payable by the contractor in case of breach thereof. For
the procurement of goods, infrastructure projects and consulting services, the amount of the
liquidated damages shall be at least equal to one-tenth of one percent (0.001)62 of the cost
of the unperformed portion for every day of delay. Once the cumulative amount of
liquidated damages reaches ten percent (10%) of the amount of the contract, the procuring
entity shall rescind the contract, without prejudice to other courses of action and remedies
open to it.
RULE XXIII ADMINISTRATIVE SANCTIONS

Section 69. Imposition of Administrative Penalties
69.1.
62
In addition to the provisions of Rules XXI and XXII of this IRR, the Head of the
Procuring Entity, subject to the authority delegated to the BAC, if any, shall impose
on bidders or prospective bidders, the administrative penalty of suspension for one
(1) year for the first offense, and suspension of two (2) years for the second offense
from participating in the public bidding process, as well as disqualification from
further participating in the public bidding being undertaken by the procuring entity
concerned, where applicable, for the following violations:
a)
Submission of eligibility requirements containing false information or falsified

documents.
b)
Submission of Bids that contain false information or falsified documents, or the

concealment of such information in the Bids in order to influence the outcome
of eligibility screening, or any other stage of the public bidding.
c)
Allowing the use of ones name, or using the name of another for purposes of
public bidding.
Typographical error in the published Revised IRR shows (0.1%).

101
d)
Withdrawal of a bid, or refusal to accept an award, or enter into contract with

the Government without justifiable cause, after he had been adjudged as
having submitted the Lowest Calculated Responsive Bid or Highest Rated
Responsive Bid.
e)
Refusal or failure to post the required performance security within the

prescribed time.
f)
Termination of the contract due to the default of the bidder.
g)
Refusal to clarify or validate in writing its bid during post-qualification within a

period of seven (7) calendar days from receipt of the request for clarification.
h)
Any documented attempt by a bidder to unduly influence the outcome of the

bidding in his favor.
i)
All other acts that tend to defeat the purpose of the competitive bidding, such
as habitually withdrawing from bidding, submitting late Bids or patently
insufficient bid, for at least three (3) times within a year, except for valid
reasons.(a)
69.2.
In addition to the penalty of suspension, the bid security or the performance security
posted by the concerned bidder or prospective bidder shall also be forfeited.
69.3.
The Head of the Procuring Entity may delegate to the BAC the authority to impose
the aforementioned administrative penalties.
69.4.
The procedures for the suspension or blacklisting of suppliers, contractors, or

consultants for GOP projects shall be undertaken in accordance with the guidelines63
issued by the GPPB.
Section 70. Preventive Suspension

The Head of the Procuring Entity may preventively suspend any member of the Technical
Working Group or the Secretariat, or the BAC, if there are strong reasons or prima facie
evidence showing that the officials or employees concerned are guilty of the charges filed
against them under Rules XXI and XXII of this IRR, or for dishonesty as defined by the Civil
Service Laws. For uniformed personnel of the AFP, the substantive and procedural due
process under its justice system shall be applied. In all cases, due process as mandated by
the Constitution and Civil Service laws, rules and regulations, shall be strictly observed.
Section 71. Lifting of Suspension and Removal of Administrative Disabilities
Lifting of preventive suspension pending administrative investigation, as well as removal of
administrative penalties and disabilities shall be in accordance with the provisions of
Sections 52 and 53, Chapter 6, Subtitle A (Civil Service Commission), Title I, Book V of
Executive Order No. 292, otherwise known as the Administrative Code of 1987.
63
Refer to Appendix 3 for the Uniform Guidelines for Blacklisting of Manufacturers, Suppliers, Distributors,
Contractors, and Consultants.
102
RULE XXIV LEGAL ASSISTANCE AND INDEMNIFICATION OF BAC

MEMBERS
Section 72. Private Legal Assistance
All the members of the BAC are hereby authorized to engage the services of private lawyers
or external counsel immediately upon receipt of Court Notice that a civil or criminal action,
suit or proceeding is filed against them in connection with the lawful performance of their
official functions and duties as BAC members. The lawyer's fee shall be part of the
indemnification package for the BAC members, subject to the provisions of Section 73 of the
Act and this IRR. For purposes of this Rule, the BAC members shall be understood to
include its support staff, such as the members of the TWG and the BAC Secretariat.
Section 73. Indemnification of BAC Members
73.1.
The GPPB shall establish an equitable indemnification package64 for public officials
providing services in and for the BAC, which may be in the form of free legal
assistance, liability insurance, and other forms of protection and indemnification for
all reasonable fees, costs, and expenses incurred by such persons in connection with
any administrative, civil or criminal action, suit or proceeding to which they may be,
or have been made, a party, by reason of the lawful performance of their official
functions and duties, unless they are finally adjudged in such action or proceeding to
be liable for gross negligence or misconduct or grave abuse of discretion, or
otherwise held liable or guilty of the complaints or charges.
73.2.
In the event of a settlement or compromise, indemnification shall be confined only

on matters covered by the settlement, for which the procuring entity had been
advised by counsel, that, the public officials to be indemnified have not committed
gross negligence or misconduct or grave abuse of discretion in the performance of
their functions and duties.
73.3.
The members of the BAC and its support staff, such as the members of the TWG and
the BAC Secretariat, shall also be entitled to medical assistance for injuries incurred
in the performance of their functions.
RULE XXV FINAL PROVISIONS

Section 74. Amendment
74.1.
As the need arises, this IRR may be amended by the GPPB.(a)
74.2.
Any amendment to this IRR shall be applicable to all procurement activities, the
advertisement or invitation of which were issued after the date of effectivity of the
said amendment.
Section 75. Repealing Clause

The Act repeals E.O. 40, entitled Consolidating Procurement Rules and Procedures for All
National Government Agencies, Government-Owned or -Controlled Corporations and/or
Government Financial Institutions, and Requiring the Use of the Government Electronic
64
Refer to Appendix 9 for the Guidelines for Legal Assistance and Indemnification of Bids and Awards Committee
(BAC) Members and its Support Staff.
103
Procurement System; Executive Order No. 262, series of 2000, entitled "Amending
Executive Order No. 302, series of 1996, entitled "Providing Polices, Guidelines, Rules and
Regulations for the Procurement of Goods/ Supplies by the National Government" and Sec.
Three (3) of Executive order No. 201, series of 2000, entitled "Providing Additional Policies
and Guidelines in the Procurement of Goods/Supplies by the National Government;"
Executive Order No. 302, series of 1996, entitled "Providing Policies, Guidelines, Rules and
Regulations for the Procurement of Goods/Supplies by the National Government" and
Presidential Decree No. 1594 (P.D. 1594), dated June 11, 1978, entitled Prescribing
Policies, Guidelines, Rules and Regulations for Government Infrastructure Contracts;" and
the relevant provisions of Republic Act No. 7898 dated February 23, 1995, entitled An Act
Providing for the Modernization of the Armed Forces of the Philippines and for Other
Purposes. This law amends Title Six, Book Two of Republic Act No. 7160 (R.A. 7160),
otherwise known as the Local Government Code of 1991," and, in furtherance thereto,
Chapter Five, Title One, Book One of the same law; the relevant provisions of Executive
Order No. 164, series of 1987, entitled "Providing Additional Guidelines in the Processing
and Approval of Contracts of the National Government." Any other law, presidential decree
or issuance, executive order, letter of instruction, administrative order, proclamation,
charter, rule or regulation and/or parts thereof contrary to or inconsistent with the
provisions of the Act is hereby repealed, modified or amended accordingly.
This IRR repeals Memorandum Order No. 119 dated 18 September 2003, otherwise known
as the Implementing Rules and Regulations Part A and relevant portions of Executive
Order No. 301, series of 1987 entitled Decentralizing Actions on Government Negotiated
Contracts, Lease Contracts and Records Disposal. Any other issuance, executive order,
administrative order, proclamation, charter, rule or regulation and/or parts thereof contrary
to or inconsistent with the provisions of this IRR is hereby repealed, modified or amended
accordingly.(a)
Section 76. Separability Clause
If any provision in this IRR, or application of such provision to any circumstance, is declared
invalid or unconstitutional, the other provisions not affected thereby shall remain valid and
subsisting.
Section 77. Transitory Clause
77.1.
In all procurement activities, if the advertisement or invitation for bids was issued
prior to the effectivity of the Act, the provisions of E.O. 40 and its IRR, P.D. 1594
and its IRR, R.A. 7160 and its IRR, or other applicable laws, as the case may be,
shall govern.(a)
77.2.
In cases where the advertisements or invitations for bids were issued before the
effectivity of this IRR, Procuring Entities may continue adopting the procurement
procedures, rules, and regulations provided in the IRR Part A or other applicable
laws, as the case may be.(a)
Section 78. Effectivity Clause

This IRR shall take effect thirty (30) calendar days after its publication in the Official Gazette
or in a newspaper of general nationwide circulation and upon filing with the University of the
Philippines Law Center of three (3) certified copies of this IRR.(a)
104
Revised Implementing Rules and Regulations Annex A
ANNEX A
DETAILED ENGINEERING FOR THE PROCUREMENT OF
INFRASTRUCTURE PROJECTS
1.
Detailed engineering shall proceed only on the basis of the feasibility or preliminary
engineering study made which establishes the technical viability of the project and
conformance to land use and zoning guidelines prescribed by existing laws. The
findings contained in the feasibility study, if undertaken for the project, shall be
examined. If, in the course of this exercise, it is found that changes would be
desirable in the design standards of principal features, as proposed, specific
recommendations for such changes shall be supported by detailed justifications,
including their effects on the cost, and (if necessary) the economic justification.
2.
A schedule of detailed engineering activities shall include the following:

a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
l)
m)
n)
o)
3.
Survey
Site Investigation
Soils and Foundation Investigation
Construction Materials Investigation
Preparation of Design Plans
Preparation of Technical Specifications
Preparation of Quantity and Cost Estimates
Preparation of Program of Work
Preparation of Proposed Construction Schedule (and estimated Cash Flow for
projects with Schedule over Six (6) Months)
Preparation of Site or Right-of-Way Plans including Schedule of Acquisition
Preparation of Utility Relocation Plan
Preparation and Submission of Design Report
Environmental Impact Statement for critical project as defined by the
Department of Environment and Natural Resources (DENR)
Preparation of minimum requirements for a Construction Safety and Health
Program for the project being considered
Preparation of Bid/Tender Documents
Work under detailed engineering shall include, but not necessarily be limited to, the
following:
a)
Design Standards Design standards shall be in accordance with appropriate

standards and accepted detailed engineering practice adopted by the agency
concerned. Design standards for structures shall take into account, among
other things, the seismicity of the area to determine the optimum safety of
structures and to minimize possible earthquake damage.
b)
Field Surveys And Investigations Necessary field surveys and investigations

which may include aerial, hydrographic, topographic, hydrologic, sub-surface,
monumenting and other surveys shall be carried out in accordance with the
design guidelines, criteria and standards adopted by the agency concerned. All
survey and investigation works shall be prepared in a manner satisfactory to
carry out accurate design and production of plans that will permit quantity
estimates to be made within plus or minus ten percent (10%) of the final
quantities of the completed structure.
105
c)
Contract Plans The following plans shall be prepared for each construction
contract in accordance with guidelines and standards adopted by the procuring
entity concerned, incorporating at least the following:
i)
ii)
iii)
iv)
v)
vi)
Site development plan

Plans and profile sheet
Typical sections and details
Drainage details where applicable
Structural plans at appropriate scales indicating all details necessary in
order that the complete structure can be set out and constructed
Other details which may be required by the head of the agency
d)
Quantities All construction quantities shall be computed to a reasonable

accuracy of not more than plus or minus ten percent (10%) of the final
quantities of the as-built structure.
e)
Special Provisions Specifications shall be prepared for specific terms of work

or methods of construction, measurement and payment under each contract,
which are not covered by Standard Construction and Material Specifications
adopted by the procuring entity concerned.
f)
Unit Prices These shall be prepared for each contract using costs based on
reasonable approved current prices as projected over the proposed
construction period, divided into local and foreign exchange costs, as the case
may be.
g)
Approved Budget for the Contract the ABC to be bid shall be prepared by
official(s) duly designated by the Head of the Procuring Entity concerned or by
his duly authorized official. It shall be approved by the Head of the Procuring
Entity or his duly designated official.
Since the contracts are fixed price contracts, the ABC to be bid shall provide for
the projected movements of construction costs over the construction period
considering the projected inflation and foreign exchange rates as issued by the
Development Budget Coordination Committee (DBCC). It shall also show the
local and foreign currency requirements, as the case may be.
The ABC to be bid shall specify for each major work item, such as earthwork,
roadwork, and massive concreting, the components for equipment rentals,
fuel, labor, materials and overhead, including the cost of the approved
construction safety and health program and warranty premium.
h)
Bidding Documents These shall be prepared as provided for in the IRR.
i)
Program of Work Before prosecuting any project, the necessary program of

work shall be prepared and submitted for approval. In no case shall
construction funds be remitted to field offices or construction work on a project
be started before the program of work is approved, in accordance with existing
laws.
No program of work for any project shall be approved without detailed
engineering.
106
The program of work shall include, among other things, estimates of the work,
items, quantities and costs and a PERT/CPM network of the project activities.
The program of work shall cover at least a usable portion of the project and no
construction shall be started for portions of the project that are less than
usable, except projects requiring stage construction, in which case continuity of
construction up to the completion of a usable portion must be assured.
j)
Contract Time or Duration In the preparation of the Bidding Documents, the

agency shall make an estimate of the actual number of working days required
to complete the project through PERT/CPM analysis of the project activities and
corrected for holidays and weekends. Likewise, the agency shall make an
estimate of the number of rainy/unworkable days considered unfavorable for
the prosecution of the works at the site, based on the records of the Philippine
Atmospheric, Geophysical and Astronomical Services Administration (PAGASA),
and incorporate the same in the corrected actual number of working days
determined above, which shall be made the basis of the total contract time.
The estimated number of rainy/unworkable days considered unfavorable for
the prosecution of the works at the site shall be made known before the date
of bidding through the Instructions to Bidders for the purpose of guiding the
contractor in preparing his bid and as reference to both the GOP and winning
contractors taking action on the requests for time extensions. Without the
estimated number of rainy/unworkable days established before the bidding
date and made known to all participating bidders, the contract time is
presumed to have excluded the unfavorable conditions.
k)
Warranty Period Likewise, the Bidding Documents shall specify the type of
project and the corresponding warranty period required by the procuring
entity.
l)
Value Engineering For major projects as specified by the agency, value

engineering shall be conducted according to accepted standards and practices.
Value engineering shall analyze alternative schemes of achieving the projects
objectives in order to delete or reduce non-essential features and lessen the
life cycle costs of the projects without sacrificing the quality and integrity of the
structure, while maintaining its essential function, performance, and safety.
m)
Site or Right-of-Way Acquisition Plans and Resettlement Action Plans These

shall be prepared based on parcellary surveys and socio-economic surveys of
households affected by the project.
4.
As a requirement for the procurement of infrastructure works, the concerned

consultants/government officials who prepared and approved the detailed
engineering shall issue a certification that the detailed engineering surveys and
designs have been conducted according to the prescribed agency standards and
specifications in conformance with the provisions of this Annex, and that the detailed
engineering outputs are adequate for the procurement at hand. The approval by the
authorized government officials of detailed engineering surveys and designs
undertaken by consultants neither diminishes the responsibility of the latter for the
technical integrity of the surveys and designs nor transfer any part of that
responsibility to the approving officials.
5.
The above rules shall apply to the implementation of infrastructure projects under
normal or ordinary conditions. However, under emergency or extraordinary cases
107
involving major calamities and disasters as declared by the President where time is
of the essence to save lives and properties and restore damaged infrastructures,
detailed engineering works shall be conducted in accordance with the guidelines and
procedures, as prescribed by the head of the appropriate infrastructure agency and
approved by the Infrastructure Committee of the National Economic and
Development Authority Board, to enable quick response to said cases, while
maintaining the safety and integrity of the structure.
108
Revised Implementing Rules and Regulations Annex B
ANNEX B
GENERAL PRINCIPLES ON CONSULTING SERVICES
1.
Definition
A natural or juridical person, qualified by appropriate education, training and relevant
experience to render any or all of the types and fields of consulting services as
defined in this IRR, shall be considered as a Consultant, subject to the
requirements provided in this IRR for eligibility check and post-qualification.
2.
The Need for Consultants

The services of consultants may be engaged by any procuring entity for government
projects or related activities of such magnitude and/or scope as would require a level
of expertise or attention beyond the optimum in-house capability of the procuring
entity concerned and consistent with the Governments policy not to compete with
the private sector.
3.
Independence of Consultants
To ensure the consultants professional independence, integrity, and objectivity,
consultants, as well as key staff working for the consulting entity, who may be
directly or indirectly associated with non-consulting firms that may have an interest
in or bias towards the project concerned, shall be selected only if they agree to limit
their role to that of consultants and will disqualify themselves and their affiliates for
bidding for products and services of the same government project.
4.
Hiring of Consultants
4.1.
Consultants shall be hired on the basis of their proven expertise, experience and
capability. Under certain conditions provided herein, cost may be included as a
factor in the selection of consultants.
4.2.
In order to manifest trust and confidence in and promote the development of

Filipino consultancy, Filipino consultants shall be hired whenever the services
required for the project are within the expertise and capability of Filipino
consultants: Provided, however, That in the event Filipino consultants do not have
the sufficient expertise and capability to render the services required under the
project, as determined by the Head of the Procuring Entity, foreign consultants
may be hired.
4.3.
In the hiring of foreign consultants, all pertinent laws and regulations of the
Philippines shall be followed.
4.4.
Technology and knowledge transfer to the procuring entity shall be required in

the provision of consulting services, where applicable.
109
5.
Organization of Consultants65
5.1.
The umbrella organization of consultants recognized by the Government shall be

composed of the various organizations of consultants that may be engaged by the
Government under this IRR and shall accredit its members on the types of
services and fields of professions where the members are technically and
financially qualified to offer their services. The umbrella organization shall
prepare and certify a list of fields and expertise in such fields available with the
names of the accredited local consultants which shall be updated annually or as
often as necessary and disseminate such list to concerned agencies of the
Government. It shall likewise regulate its members for the development of the
industry. The Government may consult and deal with this umbrella organization
on matters relating to the industry. The GPPB shall be the appropriate
government body that shall recognize the consultants umbrella organization.
5.2.
The umbrella organization may submit its files of accredited consultants to the
BAC of the procuring entity in accordance with the form prescribed by the BAC
which can serve as registration of the consultants under the next succeeding
Subsection: Provided, however, That each such accredited consultant shall comply
with the eligibility requirements provided in this IRR.
Such qualification
statements, together with the list of accredited consultants prepared in
accordance with the immediately preceding section, shall guide the BAC in
determining the fields where Filipino consultants are already qualified and capable
and where foreign consultants may not be required.
6.
Types of Consulting Services

The services to be provided by consultants can be divided into six (6) broad
categories, namely: (a) advisory and review services; (b) pre-investment or feasibility
studies; (c) design; (d) construction supervision; (e) management and related
services; and (f) other technical services or special studies.
65
6.1.
Advisory and Review Services. These services include advice on particular

projects or problems. These will include advice on and review of, among others,
planning, design and other professional services, as well as management,
production, inspection, testing and quality control. They also include such
services as appearances before commissions, boards or other judicial bodies to
give evidence or otherwise submit professional opinions.
6.2.
Pre-Investment or Feasibility Studies. These are the studies which normally

precede decisions to go (or not to go) forward with specific projects. These
studies may have as their objectives:
a)
To establish investment priorities and sector policies - Studies for this

objective include, among others, basic resource inventories, such as, river
basin surveys, transport sector surveys, and studies of alternative
development patterns and of sectors on a regional or nationwide scale.
b)
To determine the basic features and the feasibility of individual projects Studies for this objective include, among others, the functional design,
project site selection, architectural and space programming and physical
layout of specific projects, preliminary design and cost estimates, and the
Refer to Appendix 22 for the Revised Guidelines on the Recognition of Umbrella Organization of Consultants.
110
economic, financial and environmental impact analyses required for project

evaluation.
c)
6.3.
6.4.
To define and propose changes in governmental policies, operations and

institutions necessary for the successful implementation or functioning of
investment projects - Studies for this objective include, among others,
analysis of project related organizations, administrative problems, planning
machinery, regulatory and marketing policies, accounting, and management
systems, manpower resources and training requirements.
Design. This type of services normally consists of three (3) phases:

a)
Pre-Design Phase establishes the general size and scope of the project
and its location on the site. The services include but are not limited to
reconnaissance, topographical and other engineering and land surveys, soils
investigations, preparation of preliminary architectural/engineering designs,
layouts, outline specifications, preliminary cost estimates and specific
recommendations prior to actual design;
b)
Basic Design Phase includes the preparation of detailed plans, designs,

working drawings, specifications, detailed cost estimates and tender
documents required for invitations of bids for construction works and
equipment; and
c)
Support Services During Construction includes assistance and advice in

securing bids, tabulation and analysis of bid results, and making
recommendations on the award of construction contracts, and in preparing
formal contract documents; preparation of supplementary drawings required
to suit actual field conditions; checking detailed construction and as-built
drawings, shop and erection drawings submitted by contractors; making
periodic visits to check on the general progress of work and quality of
materials and workmanship; observing performance tests and start-up and
making report thereon; and making a final inspection and reporting of
completed project.
Construction Supervision. These include the following:

a)
Inspection and expediting of the work;
b)
Verification and checking of quantities and qualities of work accomplished

by the contractor as against the approved plans, specifications, and
programs of work;
c)
Issuance of instruction for corrections of defects on the work;
d)
Verification and recommendation for approval of statements of work

accomplished and certificate of project completed by the contractor;
e)
Review and recommendation for approval of progress and final billings of

the contractor; and
b)
Provision of record or as-built drawings of the completed projects.
111
The above do not mean direction, superintendence, or management of

construction.
6.5.
6.6.
Management and Related Services. These may include the following:

a)
Sector policy and regional development studies;
b)
Planning, feasibility, market, economic, financial, technical, operations and

sociological studies;
c)
Project management, including procurement advisory services, impact

monitoring, and post-evaluation services;
d)
Production management, inventory control, and productivity improvement;
e)
Marketing management and systems;
f)
Information and communications technology services, including but not

limited to, information systems design and development, and network
design and installation;
g)
Institutional
strengthening,
organization
development,
requirements, training and technology transfer;
h)
General management consultancy; and
i)
Other related services.
manpower
Other Technical Services or Special Studies. The Technical Services may include
the following:
a)
Institution building, including organization and management studies, and

business process re-engineering and development;
b)
Design and execution of training programs at different levels;
c)
Provision of staff to carry out certain functions and to train their

replacements; and
d)
Tasks relating to economic and financial studies such as those of tariff

structures.
The Special Studies may include the following and other studies not covered
under any of the services and studies described above:
a)
Soils investigation;
b)
Studies, tests and process determination performed to establish design

criteria for water facilities;
c)
Detailed mill, shop, and/or laboratory inspection of materials and

equipment;
112
d)
Land surveys, establishment of boundaries and monuments, and related

office computations and drafting;
e)
Parcellary surveys;
f)
Engineering surveys (for design and construction) and photogrammetry;
g)
Assistance in litigation arising from the development or construction of

projects and in hearings before various approving and regulatory agencies;
h)
Investigation involving detailed consideration of the operation, maintenance,

and overhead expenses; and the preparation of rate schedules; earning and
expense statements, feasibility studies, appraisals, evaluations, and material
audits or inventories required for certification of force account construction
performed by the agencies;
i)
Preparation of environmental statements and assistance to the agencies in

public hearings;
j)
Preparation of operating instructions and manuals for facilities and training

of personnel and assistance in initial operation of facilities;
k)
Designs to meet unique and/or above normal requirements brought about

by severe earthquakes, tornadoes, or blasts, or satisfy unique or abnormal
tolerances, safety requirements, etc.;
l)
Site and physical planning;
m)
Environmental and other aspects of planning;
n)
Housing;
o)
Interior design;
p)
Studies on preservation and restoration of historical, cultural, and artworks;
q)
Landscaping;
r)
Construction management; and
s)
Defense systems design, including self-reliance defense program.
Technology and knowledge transfer should be considered an important objective

in the provision of consulting services.
113
Revised Implementing Rules and Regulations Annex C
ANNEX C
PERIOD OF ACTION ON PROCUREMENT ACTIVITIES
LATEST ALLOWABLE TIME
Stage
Activities
Advertisement/
Posting of Invitation
to Bid/Request for
Expression of Interest
Eligibility Check (and
Short Listing, in case
of Consulting
Services)
Issuance and
availability of Bidding
Documents
Pre-bid Conference
3
4
7
8
9
10
11
12
13
Request for
clarification
Supplemental/Bid
Bulletin
Submission and
receipt of Bids
Submission of
additional
requirements
Bid Evaluation
Deadline
Goods
7 cd
From 1st day of

Stage 1 until Stage
5
12 cd before Stage
5
10 cd before Stage
5
7 cd before Stage 5
45 cd from last day
of Stage 1 for
Goods.
50/65 cd from last
day of Stage 1 for
Infrastructure
Projects.
75 cd from last day
of Stage 1 for
Consulting Services.
3 cd after Stage 5
Notification for
negotiation
Negotiation
Post-qualification
Approval of
resolution/Issuance of
Notice of Award
Contract preparation
and signing
Approval of contract
by higher authority
Issuance of Notice to
Proceed
Total Time
114
Infrastructure Projects
For ABC
For ABC
50M and
above 50M
below
7 cd
7 cd
Consulting
Services
7 cd
Refer to
Stage 5
Refer to
Stage 5
Refer to
Stage 5
20 cd
1 cd
1 cd
1 cd
1 cd
1 cd
(includes
opening
of bids
and
eligibility
check)
1 cd
(includes
opening of
bids and
eligibility
check)
1 cd
(includes
opening of
bids and
eligibility
check)
1 cd
(includes
opening of
bids)
7 cd
5 cd
7 cd
n/a
n/a
n/a
21 cd + 2
cd for
approval of
ranking
3 cd
n/a
30 cd
7 cd
n/a
30 cd
4 cd
n/a
30 cd
7 cd
10 cd
30 cd
7 cd
10 cd
10 cd
10 cd
10 cd
15 cd
5 cd
15 cd
15 cd
3 cd
2 cd
3 cd
3 cd
124 cd
113 cd
144 cd
170 cd
Revised Implementing Rules and Regulations Annex C
EARLIEST POSSIBLE TIME

Stage
Activities
Advertisement/
Posting of Invitation
to Bid/Request for
Expression of
Interest
Eligibility Check (and
Short Listing, in case
of Consulting
Services)
3
4
6
7
8
9
10
Issuance and
availability of
Bidding Documents
Pre-bid Conference
Request for
clarification
Supplemental/Bid
Bulletin
Submission and
receipt of Bids
Submission of
additional
requirements
Bid Evaluation
Notification for
negotiation
Negotiation
Post-qualification
Approval of
resolution/Issuance
of Notice of Award
11
Contract preparation
and signing
12
Approval of contract
by higher authority
Issuance of Notice
to Proceed
Total Time
13
Goods
Infrastructure
Projects
Consulting
Services
7 cd
7 cd
7 cd
Refer to Stage 5
Refer to Stage 5
3 cd (1 cd for
eligibility, 1 cd
for short listing,
and 1 cd for
notice)
1 cd
1 cd
1 cd
1 cd (includes
opening of bids
and eligibility
check)
1 cd (includes
opening of bids
and eligibility
check)
1 cd (includes
opening of bids)
1cd
1cd
n/a
n/a
1 cd + 1 cd for
approval of
ranking
1 cd
n/a
1 cd
2 cd (1 cd for
BAC resolution
and 1 cd for
NOA
2 cd (1 cd for
contract
preparation and
1 cd for contract
signing
1 cd
n/a
1 cd
2 cd (1 cd for
BAC resolution
and 1 cd for
NOA
2 cd (1 cd for
contract
preparation and
1 cd for contract
signing
1 cd
1 cd
1 cd
2 cd (1 cd for
BAC resolution
and 1 cd for
NOA
2 cd (1 cd for
contract
preparation and
1 cd for contract
signing
1 cd
1 cd
1 cd
1 cd
28 cd
28 cd
34 cd
Deadline
From 1st day

of Stage 1
until Stage 5
12 cd before
Stage 5
10 cd before
Stage 5
7 cd before
Stage 5
3 cd after
Stage 5
115
Revised Implementing Rules and Regulations Annex D
ANNEX D
CONTRACT IMPLEMENTATION GUIDELINES FOR THE PROCUREMENT
OF GOODS, SUPPLIES AND MATERIALS
1.
Amendment to Order
1.1. Subject to the conditions set forth below, amendments to order may be issued at
any time by the procuring entity concerned. If any such order increases or decreases
the cost of, or the time required for executing any part of the work under the original
contract, an equitable adjustment in contract price and/or delivery schedule shall be
mutually agreed upon between the parties concerned, and the contract modified in
writing.
1.2. An amendment to order may be issued only in emergency cases or during fortuitous
events requiring necessary adjustments within the general scope of the contract in
any one or more of the following is required in order to fully meet the requirements
of the project:
a)
drawings, design or specifications, if the goods to be furnished are to be

specifically manufactured for the Government in accordance therewith;
b)
method of shipment or packing; or
c)
place of delivery.
1.3. An amendment to order may also be issued by the concerned procuring entity where
there are additional items needed and necessary for the protection of the goods,
which were not included in the original contract. Payments for these additional items
shall be based on the unit prices in the original contract for items of goods similar to
those in the original contract. If the contract does not contain any rate applicable to
the additional items, then suitable prices shall mutually be agreed upon between the
parties. Request for payment by the supplier for any additional items shall be
accompanied by a statement with the approved supporting forms, giving a detailed
accounting and record of amount for which it claims payment. The contract time
shall likewise be extended if the acquisition of such additional items so warrants.
1.4. Under no circumstances shall a supplier proceed to commence work under any
amendment to order unless the same has been approved by the Head of the
Procuring Entity concerned or his duly authorized representative. As an exception to
the rule, the Regional Director/Head concerned may authorize the immediate start of
work under any amendment to order in the event of emergencies to avoid detriment
to public service, or damage to life and/or property or when time is of the essence:
Provided, however, That the same is valid only on items up to the point where the
cumulative increase in the contract cost which has not yet been duly fully approved
by the Head of the Procuring Entity concerned or his duly authorized representative
does not exceed five percent (5%) of the original contract cost: Provided, further,
That the corresponding amendment to order shall immediately be prepared and
submitted for approval to the Head of the Procuring Entity concerned or his duly
authorized representative. For an amendment to order involving a cumulative
amount exceeding five percent (5%) of the original contract price, no work thereon
shall be commenced unless the same has been approved by the Head of Procuring
116
Entity concerned or his duly authorized representative: Provided, That, the said
cumulative amount does not exceed ten percent (10%) of the original contract price.
2.
Suspension of Work
2.1. The procuring entity may suspend the work wholly or partly by written order for a
certain period of time, as it deems necessary due to force majeure or any fortuitous
events as defined in the contract. The supplier or consultant shall take all reasonable
steps to minimize the costs allocable to the work covered by such order during work
stoppage.
2.2. Before the suspension order expires, the procuring entity concerned shall either lift
such order or terminate the work covered by the same. If the suspension order is
lifted, or if the period of the order expires, the supplier or consultant shall have the
right to resume work. Appropriate adjustments shall be made in the delivery or
contract schedule, or contract price, or both, and the contract shall be modified
accordingly.
3.
Liquidated Damages
3.1. When the supplier fails to satisfactorily deliver goods under the contract within the
specified delivery schedule, inclusive of duly granted time extensions, if any, the
supplier shall be liable for damages for the delay and shall pay the procuring entity
liquidated damages, not by way of penalty, an amount equal to one-tenth (1/10) of
one percent (1%) of the cost of the delayed goods scheduled for delivery for every
day of delay until such goods are finally delivered and accepted by the procuring
entity concerned.
3.2. The procuring entity need not prove that it has incurred actual damages to be
entitled to liquidated damages. Such amount shall be deducted from any money due
or which may become due to the supplier, or collected from any securities or
warranties posted by the supplier, whichever is convenient to the procuring entity
concerned. In no case shall the total sum of liquidated damages exceed ten percent
(10%) of the total contract price, in which event the procuring entity concerned shall
automatically rescind the contract and impose appropriate sanctions over and above
the liquidated damages to be paid.
4.
Advance Payment
4.1. In accordance with Presidential Decree 1445, advance payment shall be made only
after prior approval of the President, and shall not exceed fifteen percent (15%) of
the contract amount, unless otherwise directed by the President; Provided, however,
that for cases mentioned under 4.3, 4.4, and 4.5 of these guidelines, no prior
approval by the President shall be necessary.
4.2. All progress payments shall first be charged against the advance payment until the
latter has been fully exhausted, unless otherwise approved by the President.
4.3. A single advance payment not to exceed fifty percent (50%) of the contract amount
shall be allowed for contracts entered into by a procuring entity for the following
services where requirement of down payment is a standard industry practice:
a)
Hotel and restaurant services;
117
b)
Use of conference/seminar and exhibit areas; and
c)
Lease of office space.
4.4. Advance payment not to exceed fifteen percent (15%) of the contract amount,
unless otherwise directed by the President, shall also be allowed for procurement of
goods required to address contingencies arising from natural or man-made calamities
in areas where a State of Calamity has been declared by appropriate authorities.
4.5. Upon submission of an irrevocable letter of credit or bank guarantee issued by a
Universal or Commercial Bank, advance payment not to exceed fifteen percent
(15%) of the contract amount shall be allowed and paid within sixty (60) calendar
days from signing of the contract. The irrevocable letter of credit or bank guarantee
must be for an equivalent amount, shall remain valid until the goods are delivered,
and accompanied by a claim for advance payment.66
5.
Other Rules and Guidelines
The rules and regulations for the other aspects of contract implementation shall be included
in the manuals to be issued by the GPPB, such as, but not limited to, the following:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
l)
m)
n)
o)
p)
q)
r)
s)
66
Incidental Services;
Spare Parts;
Delays in the Suppliers Performance;
Purchasers Responsibilities;
Prices;
Payment;
Taxes and Duties;
Subcontracts;
Standards;
Packing;
Insurance;
Transportation;
Inspections and Tests;
Patent Rights;
Limitations of Liability;
Termination for Default;
Termination for Insolvency;
Termination for Convenience; and
Assignment.
As amended by GPPB Resolution No. 04-2010 dated 25 June 2010.
118
Revised Implementing Rules and Regulations Annex E
ANNEX E
OF INFRASTRUCTURE PROJECTS
1.
VARIATION ORDERS - CHANGE ORDER/EXTRA WORK ORDER
1.1. Variation Orders may be issued by the procuring entity to cover any
increase/decrease in quantities, including the introduction of new work items that are
not included in the original contract or reclassification of work items that are either
due to change of plans, design or alignment to suit actual field conditions resulting in
disparity between the preconstruction plans used for purposes of bidding and the "as
staked plans" or construction drawings prepared after a joint survey by the
contractor and the Government after award of the contract, provided that the
cumulative amount of the positive or additive Variation Order does not exceed ten
percent (10%) of the original contract price. The addition/deletion of works under
Variation Orders should be within the general scope of the project as bid and
awarded. The scope of works shall not be reduced so as to accommodate a positive
Variation Order. A Variation Order may either be in the form of either a change
order or extra work order.
1.2. A Change Order may be issued by the implementing official to cover any
increase/decrease in quantities of original work items in the contract.
1.3. An Extra Work Order may be issued by the implementing official to cover the
introduction of new work necessary for the completion, improvement or protection of
the project which was not included as items of work in the original contract, such as,
where there are subsurface or latent physical conditions at the site differing
materially from those indicated in the contract, or where there are duly unknown
physical conditions at the site of an unusual nature differing materially from those
ordinarily encountered and generally recognized as inherent in the work or character
provided for in the contract.
1.4. Any cumulative positive Variation Order beyond ten percent (10%) of the original
contract price shall be subject of another contract to be bid out if the works are
separable from the original contract. In exceptional cases where it is urgently
necessary to complete the original scope of work, the Head of the Procuring Entity
may authorize a positive variation order that will make the cumulative value of the
positive Variation Orders go beyond ten percent (10%) but not more than twenty
percent (20%) of the original contract price, subject to the guidelines to be
determined by the GPPB: Provided, however, That appropriate sanctions shall be
imposed on the designer, consultant or official responsible for the original detailed
engineering design which failed to consider the Variation Order beyond ten percent
(10%).
1.5. In claiming for any Variation Order, the contractor shall, within seven (7) calendar
days after such work has been commenced pursuant to Section 3.2 hereof; or, within
twenty eight (28) calendar days after the circumstances or reasons justifying a claim
for extra cost shall have occurred, deliver a notice giving full and detailed particulars
of any extra cost in order that it may be investigated at that time.67 Failure to
67
As amended by GPPB Resolution No. 08-2011 dated 7 October 2011.
119
provide either of such notices in the time stipulated shall constitute a waiver by the
contractor for any claim. The preparation and submission of Variation Orders are as
follows:
2.
a)
If the procuring entitys representative/Project Engineer believes that a Change

Order or Extra Work Order should be issued, he shall prepare the proposed
Order accompanied with the notices submitted by the contractor, the plans
therefore, his computations as to the quantities of the additional works involved
per item indicating the specific stations where such works are needed, the date
of his inspections and investigations thereon, and the log book thereof, and a
detailed estimate of the unit cost of such items of work, together with his
justifications for the need of such Change Order or Extra Work Order, and shall
submit the same to the Head of the Procuring Entity for approval.
b)
The Head of the Procuring Entity or his duly authorized representative upon
receipt of the proposed Change Order or Extra Work Order shall immediately
instruct the appropriate technical staff or office of the procuring entity to
conduct an on-the-spot investigation to verify the need for the work to be
prosecuted and to review the proposed plan, and prices of the work involved.68
c)
The technical staff of appropriate office of the procuring entity shall submit a
report of their findings and recommendations, together with the supporting
documents, to the Head of the Procuring Entity or his duly authorized
representative for consideration.69
d)
The Head of the Procuring Entity or his duly authorized representative, acting
upon the recommendation of the technical staff or appropriate office, shall
approve the Change Order or Extra Work Order after being satisfied that the
same is justified, necessary, and in order.70
e)
The timeframe for the processing of Variation Orders from the preparation up
to the approval by the procuring entity concerned shall not exceed thirty (30)
calendar days.
ADDITIONAL/EXTRA WORK COSTING
2.1. For Variation Orders, the contractor shall be paid for additional work items whose
unit prices shall be derived based on the following:
68
69
70
a.
For additional/extra works duly covered by Change Orders involving work items
which are exactly the same or similar to those in the original contract, the
applicable unit prices of work items original contract shall be used.
b.
For additional/extra works duly covered by Extra Work Orders involving new
work items that are not in the original contract, the unit prices of the new work
items shall be based on the direct unit costs used in the original contract (e.g.,
unit cost of cement, rebars, form lumber, labor rate, equipment rental, etc.).
All new components of the new work item shall be fixed prices, provided the
same is acceptable to both the Government and the contractor, and provided
Ibid.
Ibid.
120
further that the direct unit costs of new components shall be based on the
contractor's estimate as validated by the procuring entity concerned via
documented canvass in accordance with existing rules and regulations. The
direct cost of the new work item shall then be combined with the mark-up
factor (i.e., taxes and profit) used by the contractor in his bid to determine the
unit price of the new work item.
2.2. Request for payment by the contractor for any extra work shall be accompanied by a
statement, with the approved supporting forms, giving a detailed accounting and
record of amount for which he claims payment. Said request for payment shall be
included with the contractor's statement for progress payment.
3.
CONDITIONS UNDER WHICH CONTRACTOR IS TO START WORK UNDER VARIATION

ORDERS AND RECEIVE PAYMENTS
3.1. Under no circumstances shall a contractor proceed to commence work under any
Change Order or Extra Work Order unless it has been approved by the Head of the
Procuring Entity or his duly authorized representative.
3.2. However, under any of the following conditions, the procuring entitys
representative/Project Engineer may, subject to the availability of funds and within
the limits of his delegated authority, allow the immediate start of work under any
Change Order or Extra Work Order:71
i)
In the event of an emergency where the prosecution of the work is urgent to

avoid detriment to public service, or damage to life and/or property; and/or
ii) When time is of the essence;
Provided, however, That such approval is valid on work done up to the point where
the cumulative increase in value of work on the project which has not yet been duly
fully approved does not exceed five percent (5%) of the adjusted original contract
price;
Provided, further, That immediately after the start of work, the corresponding
Change Order or Extra Work Order shall be prepared and submitted for approval in
accordance with the above rules herein set. Payments for works satisfactorily
accomplished on any Change Order or Extra Work Order may be made only after
approval of the same by the Head of the Procuring Entity or his duly authorized
representative.
Provided, finally, That for a Change Order or Extra Work Order involving a
cumulative amount exceeding five percent (5%) of the original contract price, no
work thereon may be commenced unless said Change Order or Extra Work Order has
been approved by the Head of the Procuring Entity or his duly authorized
representative.72
71
72
Ibid.
121
4.
ADVANCE PAYMENT
4.1. The procuring entity shall, upon a written request of the contractor which shall be
submitted as a contract document, make an advance payment to the contractor in
an amount not exceeding fifteen percent (15%) of the total contract price, to be
made in lump sum or, at the most, two installments according to a schedule
specified in the Instructions to Bidders and other relevant Tender Documents.
4.2. The advance payment shall be made only upon the submission to and acceptance by
the procuring entity of an irrevocable standby letter of credit of equivalent value
from a commercial bank, a bank guarantee or a surety bond callable upon demand,
issued by a surety or insurance company duly licensed by the Insurance Commission
and confirmed by the procuring entity.
4.3. The advance payment shall be repaid by the contractor by deducting fifteen percent
(15%) from his periodic progress payments a percentage equal to the percentage of
the total contract price used for the advance payment.
4.4. The contractor may reduce his standby letter of credit or guarantee instrument by
the amounts refunded by the Monthly Certificates in the advance payment.
5.
PROGRESS PAYMENT
5.1. Once a month, the contractor may submit a statement of work accomplished (SWA)
or progress billing and corresponding request for progress payment for work
accomplished. The SWA should show the amounts which the contractor considers
itself to be entitled to up to the end of the month, to cover (a) the cumulative value
of the works it executed to date, based on the items in the Bill of Quantities, and (b)
adjustments made for approved variation orders executed.
5.2. The procuring entitys representative/project engineer shall check the contractors
monthly SWA and certify the amount to be paid to the contractor as progress
payment. Except as otherwise stipulated in the Instruction to Bidders, materials and
equipment delivered on the site but not completely put in place shall not be included
for payment.
5.3. The procuring entity shall deduct the following from the certified gross amounts to
be paid to the contractor as progress payment:
a)
b)
c)
d)
e)
6.
Cumulative value of the work previously certified and paid for.

Portion of the advance payment to be recouped for the month.
Retention money in accordance with the condition of contract.
Amount to cover third party liabilities.
Amount to cover uncorrected discovered defects in the works.
RETENTION MONEY
6.1. Progress payments are subject to retention of ten percent (10%) referred to as the
"retention money." Such retention shall be based on the total amount due to the
contractor prior to any deduction and shall be retained from every progress payment
until fifty percent (50%) of the value of works, as determined by the procuring
entity, are completed. If, after fifty percent (50%) completion, the work is
122
satisfactorily done and on schedule, no additional retention shall be made; otherwise,

the ten percent (10%) retention shall be imposed.
6.2. The total "retention money" shall be due for release upon final acceptance of the
works. The contractor may, however, request the substitution of the retention
money for each progress billing with irrevocable standby letters of credit of from a
commercial bank, bank guarantees or surety bonds callable on demand, of amounts
equivalent to the retention money substituted for and acceptable to Government,
provided that the project is on schedule and is satisfactorily undertaken. Otherwise,
the ten percent (10%) retention shall be made. Said irrevocable standby letters of
credit, bank guarantees and/or surety bonds, to be posted in favor of the
Government shall be valid for a duration to be determined by the concerned
implementing office/agency or procuring entity and will answer for the purpose for
which the ten percent (10%) retention is intended, i.e., to cover uncorrected
discovered defects and third party liabilities.
7.
CONTRACT COMPLETION
Once the project reaches an accomplishment of ninety five (95%) of the total contract
amount, the procuring entity may create an inspectorate team to make preliminary
inspection and submit a punch-list to the contractor in preparation for the final turnover of
the project. Said punch-list will contain, among others, the remaining works, work
deficiencies for necessary corrections, and the specific duration/time to fully complete the
project considering the approved remaining contract time. This, however, shall not preclude
the procuring entity's claim for liquidated damages.
8.
LIQUIDATED DAMAGES
8.1. Where the contractor refuses or fails to satisfactorily complete the work within the
specified contract time, plus any time extension duly granted and is hereby in default
under the contract, the contractor shall pay the procuring entity for liquidated
damages, and not by way of penalty, an amount, as provided in the conditions of
contract, equal to at least one tenth (1/10) of one (1) percent of the cost of the
unperformed portion of the works for every day of delay.
8.2. A project or a portion thereof may be deemed usable when it starts to provide the
desired benefits as certified by the targeted end-users and the concerned procuring
entity.
8.3. To be entitled to such liquidated damages, the procuring entity does not have to
prove that it has incurred actual damages. Such amount shall be deducted from any
money due or which may become due the contractor under the contract and/or
collect such liquidated damages from the retention money or other securities posted
by the contractor whichever is convenient to the procuring entity.
8.4. In case that the delay in the completion of the work exceeds a time duration
equivalent to ten percent (10%) of the specified contract time plus any time
extension duly granted to the contractor, the procuring entity concerned may rescind
the contract, forfeit the contractor's performance security and takeover the
prosecution of the project or award the same to a qualified contractor through
negotiated contract.
123
8.5. In no case however, shall the total sum of liquidated damages exceed ten percent
(10%) of the total contract price, in which event the contract shall automatically be
taken over by the procuring entity concerned or award the same to a qualified
contractor through negotiation and the erring contractor's performance security shall
be forfeited. The amount of the forfeited performance security shall be aside from
the amount of the liquidated damages that the contractor shall pay the government
under the provisions of this clause and impose other appropriate sanctions.
8.6. For terminated contracts where negotiation shall be undertaken, the procedures
prescribed in the IRR shall be adopted.
9.
SUSPENSION OF WORK
9.1. The procuring entity shall have the authority to suspend the work wholly or partly by
written order for such period as may be deemed necessary, due to force majeure or
any fortuitous events or for failure on the part of the contractor to correct bad
conditions which are unsafe for workers or for the general public, to carry out valid
orders given by the procuring entity or to perform any provisions of the contract, or
due to adjustment of plans to suit field conditions as found necessary during
construction. The contractor shall immediately comply with such order to suspend
the work wholly or partly.
9.2. The contractor or its duly authorized representative shall have the right to suspend
work operation on any or all projects/activities along the critical path of activities
after fifteen (15) calendar days from date of receipt of written notice from the
contractor to the district engineer/regional director/consultant or equivalent official,
as the case may be, due to the following:
a.
There exist right-of-way problems which prohibit the contractor from

performing work in accordance with the approved construction schedule.
b.
Requisite construction plans which must be owner-furnished are not issued to

the contractor precluding any work called for by such plans.
c.
Peace and order conditions make it extremely dangerous, if not possible, to

work. However, this condition must be certified in writing by the Philippine
National Police (PNP) station which has responsibility over the affected area
and confirmed by the Department of Interior and Local Government (DILG)
Regional Director.
d.
There is failure on the part of the procuring entity to deliver governmentfurnished materials and equipment as stipulated in the contract.
e.
Delay in the payment of contractor's claim for progress billing beyond forty-five
(45) calendar days from the time the contractor's claim has been certified to by
the procuring entitys authorized representative that the documents are
complete unless there are justifiable reasons thereof which shall be
communicated in writing to the contractor.
9.3. In case of total suspension, or suspension of activities along the critical path, which
is not due to any fault of the contractor, the elapsed time between the effective
order of suspending operation and the order to resume work shall be allowed the
contractor by adjusting the contract time accordingly.
124
10.
EXTENSION OF CONTRACT TIME
10.1. Should the amount of additional work of any kind or other special circumstances of
any kind whatsoever occur such as to fairly entitle the contractor to an extension of
contract time, the procuring entity shall determine the amount of such extension;
provided that the procuring entity is not bound to take into account any claim for an
extension of time unless the contractor has, prior to the expiration of the contract
time and within thirty (30) calendar days after such work has been commenced or
after the circumstances leading to such claim have arisen, delivered to the procuring
entity notices in order that it could have investigated them at that time. Failure to
provide such notice shall constitute a waiver by the contractor of any claim. Upon
receipt of full and detailed particulars, the procuring entity shall examine the facts
and extent of the delay and shall extend the contract time completing the contract
work when, in the procuring entity's opinion, the findings of facts justify an
extension.
10.2. No extension of contract time shall be granted the contractor due to (a) ordinary
unfavorable weather conditions and (b) inexcusable failure or negligence of
contractor to provide the required equipment, supplies or materials.
10.3. Extension of contract time may be granted only when the affected activities fall
within the critical path of the PERT/CPM network.
10.4. No extension of contract time shall be granted when the reason given to support the
request for extension was already considered in the determination of the original
contract time during the conduct of detailed engineering and in the preparation of
the contract documents as agreed upon by the parties before contract perfection.
10.5. Extension of contract time shall be granted for rainy/unworkable days considered
unfavorable for the prosecution of the works at the site, based on the actual
conditions obtained at the site, in excess of the number of rainy/unworkable days
pre-determined by the government in relation to the original contract time during the
conduct of detailed engineering and in the preparation of the contract documents as
agreed upon by the parties before contract perfection, and/or for equivalent period
of delay due to major calamities such as exceptionally destructive typhoons, floods
and earthquakes, and epidemics, and for causes such as non-delivery on time of
materials, working drawings, or written information to be furnished by the procuring
entity, non-acquisition of permit to enter private properties within the right-of-way
resulting in complete paralyzation of construction activities, and other meritorious
causes as determined by the Government's authorized Engineer and approved by the
procuring entity. Shortage of construction materials, general labor strikes, and
peace and order problems that disrupt construction operations through no fault of
the contractor may be considered as additional grounds for extension of contract
time provided they are publicly felt and certified by appropriate government agencies
such as DTI, DOLE, DILG, and DND, among others. The written consent of
bondsmen must be attached to any request of the contractor for extension of
contract time and submitted to the procuring entity for consideration and the validity
of the performance security shall be correspondingly extended.
11.
ACCREDITATION OF TESTING LABORATORIES
11.1. To help ensure the quality of materials being used in infrastructure projects, the
Bureau of Research and Standards (BRS) of the DPWH, Department of Science and
125
Technology (DOST), or Department of Trade and Industry (DTI) shall accredit, in

accordance with industry guidelines, the testing laboratories whose services are
engaged or to be engaged in infrastructure projects. All government infrastructure
project owners must accept results of material test(s) coming only from DOST/BRS
accredited laboratories.
12.
EVALUATION OF CONTRACTORS PERFORMANCE
12.1. Subject and Scope

All Procuring Entities implementing government infrastructure projects are mandated
to evaluate the performance of their contractors using the NEDA-Approved
Constructors Performance Evaluation System (CPES) Guidelines for the type of
project being implemented. These guidelines cover all infrastructure projects
awarded by the government regardless of contract amount and funding source.
CPES evaluation shall be done during construction and upon completion of each
government project. To ensure continuous implementation of CPES, all Procuring
Entities concerned are required to include in their Projects Engineering and
Administrative Overhead Cost the budget for the implementation of CPES pursuant to
NEDA Board Resolution No. 18 (s. 2002).
12.2. Evaluation Guidelines
For project types which do not have specific CPES Guidelines, the Procuring Entities
concerned may formulate and adopt their own implementing Guidelines specific to
their needs provided the NEDA-INFRACOM poses no objections to their adoption, and
provided further that said Guidelines are made known to all prospective bidders.
12.3. Implementation Mechanism for CPES
All Procuring Entities implementing infrastructure projects are required to establish
CPES Implementing Units (IUs) in their respective offices/agencies/corporations.
The CPES Implementing Units shall be responsible for the implementation of the
CPES Implementing guidelines, including but not limited to, the supervision of
Constructors Performance Evaluators (CPEs) to be accredited by the Construction
Industry Authority of the Philippines (CIAP). The procuring entitys CPES IU shall be
responsible for the following: a) pre-screening of applications of CPEs, b) funding for
CPEs accreditation training and seminars; and c) yearly evaluation of CPEs.
12.4. Submission and Dissemination of Evaluation Results
All Procuring Entities implementing CPES shall submit the results of their
performance evaluation to the CIAP on a monthly basis or as often as necessary. The
procuring entitys CPES-IU shall likewise develop and maintain a databank and
disseminate the CPES reports to the concerned units/departments within the
procuring entity and to other interested users.
12.5. Utilization of Evaluation Results
The CIAP shall consolidate all of the CPES evaluation results received and shall
disseminate the same to all Procuring Entities concerned. The CPES rating and other
information shall be used by the concerned government agencies for the following
purposes: (a) pre qualification/eligibility screening of constructors; (b) awarding of
126
contracts; (c) project monitoring and control; (d) issuance of Certificate of

Completion; (e) policy formulation/review; (f) industry planning; (g) granting of
Incentives/Awards, and, in adopting measure to further improve performance of
contractors in the prosecution of government projects.
13.
OTHER RULES AND GUIDELINES
The rules and regulations for the other aspects of contract implementation shall be included
in the manuals to be issued by the GPPB, such as, but not limited to, the following:
a)
b)
c)
d)
e)
f)
g)
Sub-contracting;
Interference with Traffic and Adjoining Properties;
Clearance of Project Site of Obstruction;
Inspection and Testing;
Daywork;
Measurement of Works; and
Other Implementation Aspects.
127
Revised Implementing Rules and Regulations Annex F
ANNEX F
OF CONSULTING SERVICES
1.
Advance Payment for Mobilization

The Government, as it considers fair and reasonable, may allow advance payment to
the Consultant in the amount which shall not exceed fifteen percent (15%) of the
contract amount to cover the cost of mobilization, subject to the posting of an
irrevocable standby letter of credit issued by an entity acceptable to the agency and
of an amount equal to the advance payment. The advance payment shall be repaid
by the Consultant by deducting from his progress payments such sum as agreed
upon during the contract negotiations until fully liquidated within the duration of the
contract.
2.
Cost of Consulting Services

All Consultancy contracts shall be fixed price contracts. Any extension of contract
time shall not involve any additional cost.
3.
Other Rules and Guidelines

The rules and regulations for the other aspects of contract implementation shall be
included in the manuals to be issued by the GPPB.
128
Revised Implementing Rules and Regulations Annex G
ANNEX G
GUIDELINES FOR THE PROCUREMENT AND IMPLEMENTATION OF
CONTRACTS FOR DESIGN AND BUILD INFRASTRUCTURE PROJECTS
1.
SCOPE AND APPLICATION

These guidelines shall govern the procurement and implementation of contracts for
design and build infrastructure projects and shall supplement applicable provisions of
Republic Act No. 9184 (RA 9184) and its Revised Implementing Rules and
Regulations (IRR) in particular Section 17.6 and Annex E.
2.
PURPOSE
These guidelines are formulated to determine the conditions for the use of the
design and build scheme for infrastructure projects and the procedures for the
implementation thereof.
3.
GUIDING PRINCIPLES
The procuring entity, prior to resorting to the design and build scheme, should
consider the following advantages and disadvantages of said scheme:
3.1.
3.2.
Advantages:
a)
Since both design and construction are in the hands of the contractor,
there is a single point of responsibility for quality, cost, and schedule
adherence, including the risks related to design. This precludes buckpassing and finger-pointing between the designer and the builder.
b)
Because design and construction periods can overlap, the total design
and construction time, as well as the final project cost, will be
significantly reduced.
c)
The procuring entity is assured of quality considering that the larger

responsibility implicit in the design-build scheme serves as motivation
for high quality of the facility to be provided. Once the requirements
of the procuring entity are defined in performance terms, the
designer-builder is responsible for producing the results accordingly.
The designer-builder warrants to the procuring entity that the design
documents are complete and free from error.
d)
The procuring entity does not need to spend much time and money in
seeing to it that the work is done by the contractor exactly as
indicated by the design documents prepared by the designer, and in
coordinating and arbitrating between separate design and
construction contracts.
Disadvantages:
a)
Procuring Entities should, however, take into account that in utilizing

the design and build scheme for a particular project, contractors are
129
given too much discretion in determining the project cost and there is
difficulty in predicting its final cost until the actual commencement of
construction. This, however, can be addressed by prescribing that the
bid/contract price should not exceed the Approved Budget for
Contract (ABC) of the procuring entity and that the contract price is a
fixed lump sum amount.
b)
4.
Considering that the extent of the integration of design and

construction of the project is exceptionally dependent on the
contractor, there may be cases when the end-result may not be
exactly in accordance with what the procuring entity has required.
These cases can be avoided if the procuring entity adequately defines
the output or performance specifications and parameters.
DEFINITION OF TERMS
a.
Approved Budget for the Contract (ABC). This shall be a lump sum
amount that shall cover the cost of design and construction works (at the
option of the procuring entity) based on the conceptual design and
performance specifications and in accordance with applicable provisions of
the law or agency guidelines. The ABC shall be calculated based on either the
approximate quantities of work of the conceptual design, from standardized
designs or from cost records of previous projects of similar kind.
b.
Bidding Documents for Design and Build Scheme. These shall basically
be similar to the Bidding Documents for infrastructure projects and shall also
include the performance specifications and parameters to be followed by the
design and build contractors and the method for allocation of risks for the
design and build contract, among others.
c.
Conceptual Design. This shall describe the general idea of the procuring
entity with regard to the completed facility and shall identify the scope or
physical components and structures, specific outputs and requirements of the
structures and proposed methods of construction, where necessary.
d.
Design and Build Projects. This refers to infrastructure projects where the
procuring entity awards a single contract for the architectural/engineering
design and construction to a single firm, partnership, corporation, joint
venture or consortium.
e.
Performance Specifications and Parameters. The procuring entity shall

define the required performance specifications and criteria and its means of
measurement based on the operating outputs and in accordance with
appropriate design and construction standards, legal and technical obligations
and any other relevant government commitments as required by existing laws
and regulations. It shall not be drawn up to favor a particular solution, design
and construction method.
f.
Preliminary Investigations. These shall include, among others,

information on soil, geotechnical, hydrologic, hydraulic, seismic, traffic, and
environmental conditions that shall be used to define project design criteria,
to set the basis for any changed conditions and establish preliminary project
cost estimates.
130
5.
g.
Preliminary Survey and Mapping. These shall determine boundaries and

provide stationing along control lines to establish feature and design criteria
location, and identify existing and future right-of-way limits and construction
easements associated with the procuring entitys conceptual design.
h.
Project Description. This shall define the objectives, purpose, limitations or

constraints, as well as the allocation of risks between the procuring entity and
the winning bidder.
i.
Utility Locations. The procuring entity shall provide information on existing

utilities in and around the projects area.
CONDITIONS FOR THE USE OF THE DESIGN AND BUILD SCHEME

5.1.
5.2.
6.
The Design and Build scheme shall be applied under any of the following
cases:
a.
For flagship, priority and fast track projects that need to be completed
on a tight completion schedule, as included in the Medium Term
Public Investment Program (MTPIP) for national projects and in the
Regional Development Investment Plan (RDIP) for regional and
provincial projects;
b.
For infrastructure projects requiring advanced engineering or

construction technologies or whose intellectual property rights belong
to private companies;
c.
For infrastructure projects where design, equipment, plant and

construction can be provided exclusively by a company or where
manufacturers know-how is important in the construction of such
facility; or
d.
For small projects where there are previously approved drawings or

standardized designs and an innovation in design and construction
methods under the design and build scheme will result in lower costs
and higher quality projects. Examples of these are school buildings,
rural health units, among others.
All design and build projects shall be included in the Annual Procurement Plan
(APP) of the procuring entity concerned and shall be subject to prior approval
by the Head of the Procuring Entity or his/her duly authorized representative.
CREATION OF DESIGN and BUILD COMMITTEE

The procuring entity may create a Design and Build Committee (DBC) composed of
highly technical personnel experienced in the field of architecture, engineering and
construction in the particular type of project to be bid. The DBC shall assist the
project management office (PMO) in the preparation of the conceptual design and
performance specifications and parameters, review of detailed engineering design
and supervision of the project. It shall, likewise, assist the Bids and Awards
Committee (BAC) and the Technical Working Group (TWG) in the evaluation of
technical proposals in accordance with the criteria set in the Bidding Documents.
131
7.
PRELIMINARY DESIGN AND CONSTRUCTION STUDIES

No bidding and award of design and build contracts shall be made unless the
required preliminary design and construction studies have been sufficiently carried
out and duly approved by the Head of the Procuring Entity that shall include, among
others, the following:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
Project Description
Conceptual Design
Performance Specifications and Parameters
Preliminary Survey and Mapping
Preliminary Investigations
Utility Locations
Approved Budget for the Contract
Proposed Design and Construction Schedule
Minimum requirements for a Construction Safety and Health Program for the
project being considered
Tender/Bidding Documents, including Instructions to Bidders and Conditions of
Contract
The above data are for reference only. The procuring entity does not guarantee that
these data are fully correct, up to date, and applicable to the project at hand. The
contractor is responsible for the accuracy and applicability of all data, including the
above, that it will use in its design and build proposal and services.
The acquisition of right-of-way and the conduct of eminent domain proceedings shall
still be the responsibility of the procuring entity, which shall include a preliminary
budget for this purpose.
8.
DETAILED ENGINEERING REQUIREMENTS

8.1.
Upon award of the design and build contract, the winning bidder shall be
responsible for the preparation and submission of all necessary detailed
engineering investigations, surveys and designs in accordance with the
provisions of Annex A of this IRR (with the exception of the Bidding
Documents and the ABC).
8.2.
The procuring entity shall ensure that all the necessary schedules with regard
to the submission, confirmation and approval of the detailed engineering
design and the details of the construction methods and procedures shall be
included in the contract documents.
8.3.
The procuring entity shall review, order rectification, and approve or

disapprove for implementation only - the submitted plans within these
schedules. All instructions for rectification shall be in writing stating the
reasons for such rectification. The design and build contractor shall be solely
responsible for the integrity of the detailed engineering design and the
performance of the structure irrespective of the approval/confirmation by the
procuring entity.
132
9.
ELIGIBILITY REQUIREMENTS
9.1.
The eligibility requirements for Design and Build infrastructure projects shall
comply with the applicable provisions of Sections 23-24 of IRR.
9.2.
A modified set of requirements integrating eligibility documents and criteria

for infrastructure projects and consulting services shall be adopted, as
follows:
i.
Class A Documents (Legal, Technical and Financial Documents) and

Class B Documents
The prospective bidder shall submit all the required Class A and
Class B documents for infrastructure projects and the following:
ii.
a)
relevant statements of all on-going, completed, awarded but

not yet started design/design and build related contracts,
curriculum vitae of key staff, partners or principal officers; and
b)
valid licenses issued by the Professional Regulatory

Commission (PRC) for design professionals in accordance with
the provisions under Section 24.1(a)(iv)73 of this IRR.
Eligibility Criteria
a)
The eligibility of design and build contractors shall be based

on the legal, technical and financial requirements
abovementioned. In the technical requirements, the design
and build contractor (as solo or in joint venture/consortia)
should be able to comply with the experience requirement
under the IRR of R.A. 9184, where one of the parties (in a
joint venture/consortia) should have at least one similar
project, both in design and construction, with at least 50% of
the cost of the ABC.
b)
If the bidder has no experience in design and build projects on

its own it may enter into subcontracting, partnerships, or joint
venture with design or engineering firms for the design portion
of the contract.
c)
The relevant provisions under Section 23.5.274 of the IRR of

R.A, 9184 on eligibility requirements shall be observed, with
the following exceptions:
Joint ventures/consortia among Filipino contractors and consultants or

among Filipino contractors and foreign consultants shall be allowed
subject to pertinent laws and the relevant provisions of the IRR of
R.A. 9184. The joint venture/consortia shall be jointly and severally
73
October 2009.
74
Ibid.
133
responsible for the obligations and the civil liabilities arising from the
design and build contract: Provided, however, That Filipino ownership
or interest thereof shall be at least seventy five percent (75%):
Provided further, That joint ventures/consortia in which Filipino
ownership or interest is less than seventy-five percent (75%) may be
eligible where the structures to be built require the application of
techniques and/or technologies which are not adequately possessed
by Filipinos and that Filipino ownership or interest shall not be less
than twenty-five percent (25%): Provided, finally, that when the
design services in which the joint venture wishes to engage involve
the practice of professions regulated by law, all those who will actually
perform the services shall be Filipino citizens and registered
professionals authorized by the appropriate regulatory body to
practice those professions and allied professions and where foreign
designers are required, the foreign designer must be authorized by
the appropriate Philippine Government professional regulatory body to
engage in the practice of those professions and allied professions.
10.
SUBMISSION AND RECEIPT OF BIDS

10.1.
10.2.
75
76
In the submission of bids, the first envelope (Technical Proposal) shall contain
all the required documents for infrastructure projects under Section 25.2(b)75
of the IRR of R.A 9184 and the following additional documents:
i.
Preliminary Conceptual Design Plans in accordance with the degree of

details specified by the procuring entity;
ii.
Design and construction methods;
iii.
List of design and construction personnel, to be assigned to the

contract to be bid, with their complete qualification and experience
data; and
iv.
Value engineering analysis of design and construction method.
The second envelope (Financial Proposal) shall contain all the required
documents for infrastructure projects under Section 25.376 of the IRR of R.A
9184 and the following additional documents:
i.
Lump sum bid prices, which shall include the detailed engineering cost, in
the prescribed Bid Form;
ii.
Detailed estimates including a summary sheet indicating the unit prices of

construction materials, labor rates and equipment rentals used in coming
up with the bid; and
iii.
Cash flow by the quarter and payments schedule.
Ibid.
Ibid.
134
11.
BID EVALUATION
For the detailed evaluation of the design and build proposals a two-step procedure
shall be adopted by the BAC, which may be undertaken with the assistance of the
DBC.
11.1.
First-Step Procedure:
i.
ii.
11.2.
The first step of the evaluation shall involve the review of the
preliminary conceptual designs and track record submitted by the
contractor as indicated in the Bidding Documents using a nondiscretionary pass/fail criteria that involve compliance with the
following requirements:
a.
Adherence of preliminary design plans to the

required
performance specifications and parameters and degree of
details;
b.
Concept of approach and methodology for detailed

engineering, design and construction with emphasis on the
clarity, feasibility, innovativeness and comprehensiveness of
the plan approach, and the quality of interpretation of project
problems, risks, and suggested solutions;
c.
Quality of personnel to be assigned to the project which covers

suitability of key staff to perform the duties of the particular
assignments and general qualifications and competence
including education and training of the key staff;
For complex or unique undertakings, such as those involving highly

specialized or advanced engineering technology, eligible bidders may
be required, at the option of the agency concerned, to make an oral
presentation within fifteen (15) calendar days after the deadline for
submission of technical proposals.
Second-Step Procedure:
Only those bids that passed the above criteria shall be subjected to the
second step of evaluation.
The BAC shall open the financial proposal of each passed bidder and shall
evaluate it using non-discretionary criteria - including arithmetical corrections
for computational errors - as stated in the Bidding Documents, and thus
determine the correct total calculated bid prices. The BAC shall automatically
disqualify any total calculated bid price which exceeds the ABC. The total
calculated bid prices (not exceeding the ABC) shall be ranked, in ascending
order, from lowest to highest. The bid with the lowest total calculated bid
price shall be identified as the Lowest Calculated Bid (LCB).
12.
POST-QUALIFICATION and AWARD OF THE CONTRACT

12.1.
The LCB shall be subject to post-qualification in accordance with Section 34,

Rule X of this IRR to determine its responsiveness to the eligibility and bid
135
requirements. If after post-qualification the Lowest Calculated Bid is

determined to be post-qualified it shall be considered the Lowest Calculated
and Responsive Bid (LCRB) and the contract shall be awarded to the bidder.
In case of post-disqualification of the LCB, the procedure under Section 34
shall also be followed.
13.
12.2.

recommendations of the BAC within a period not exceeding seven (7)
calendar days from the determination and declaration by the BAC of the
LCRB.
12.3.
The Head of the Procuring Entity concerned shall award the contract to the
said bidder pursuant to the provisions of Section 37, Rule XI of this IRR.
CONTRACT IMPLEMENTATION
As a rule, contract implementation guidelines for the procurement of infrastructure
projects shall comply with Annex E of this IRR. The following provisions shall
supplement these procedures:
13.1.
No works shall commence unless the contractor has submitted the required
documentary requirements and the procuring entity has given written
approval. Work execution shall be in accordance with reviewed and approved
documents.
13.2.
The contractor shall be responsible for obtaining all necessary information as

to risks, contingencies and other circumstances which may affect the works
and shall prepare and submit all necessary documents specified by the
procuring entity to meet all regulatory approvals as specified in the contract
documents.
13.3.
The Contractor shall submit a detailed program of work within fourteen (14)
calendar days after the issuance of the Notice to Proceed for approval by the
procuring entity that shall include, among others:
i.
The order in which it intends to carry out the work including

anticipated timing for each stage of design/detailed engineering and
construction;
ii.
Periods for review of specific outputs and any other submissions and
approvals;
iii.
Sequence of timing for inspections and tests as specified in the

contract documents;
iv.
General description of the design and construction methods to be

adopted;
v.
Number and names of personnel to be assigned for each stage of the

work;
vi.
List of equipment required on site for each major stage of the work;
and
136
vii.
Description of the quality control system to be utilized for the project.
13.4.
Any errors, omissions, inconsistencies, inadequacies or failure submitted by

the contractor that do not comply with the requirements shall be rectified,
resubmitted and reviewed at the contractors cost. If the Contractor wishes to
modify any design or document which has been previously submitted,
reviewed and approved, the contractor shall notify the procuring entity within
a reasonable period of time and shall shoulder the cost of such changes.
13.5.
As a rule, changes in design and construction requirements shall be limited

only to those that have not been anticipated in the contract documents prior
to contract signing and approval. The following guidelines shall govern
approval for change or variation orders:
i.
Change Orders resulting from design errors, omissions or nonconformance with the performance specifications and parameters and
the contract documents by the contractor shall be implemented by the
contractor at no additional cost to the procuring entity.
ii.
Provided that the contractor suffers delay and/or incurs costs due to
changes or errors in the procuring entitys performance specifications
and parameters, he shall be entitled to either one of the following:
a.
an extension of time for any such delays under Section 10 of

Annex E; or
b.
payment for such costs as specified in the contract documents,

provided, that the cumulative amount of the variation order
does not exceed ten percent (10%) of the original contract
price.
13.6.
The contract documents shall include the manner and schedule of payment
specifying the estimated contract amount and installments in which the
contract price will be paid.
13.7.
The contractor shall be entitled to advance payment subject to the provisions

of Section 4 of Annex E.
13.8.
The procuring entity shall define the quality control procedures for the design
and construction in accordance with agency guidelines and shall issue the
proper certificates of acceptance for sections of the works or the whole of the
works as provided for in the contract documents.
13.9.
The contractor shall provide all necessary equipment, personnel, instruments,

documents and others to carry out specified tests.
13.10. All design and build projects shall have a minimum Defects Liability Period of
one (1) year after contract completion or as provided for in the contract
documents. This is without prejudice, however, to the liabilities imposed upon
the engineer/architect who drew up the plans and specification for a building
sanctioned under Section 1723 of the New Civil Code of the Philippines.
137
13.11. The contractor shall be held liable for design and structural defects and/or
failure of the completed project within the warranty periods specified in
Section 62.2.3.277 of the IRR.
14.
AMENDMENTS AND FORMS

In the implementation of these guidelines, the GPPB may issue additional guidelines
or introduce modifications thereto through the amendment of its specific provisions
as the need arises, as well as, formulate, approve and disseminate standard Bidding
Documents, forms and evaluation documents, whenever necessary.
77
Ibid.
138
Revised Implementing Rules and Regulations Annex H
ANNEX H
THRESHOLDS FOR SHOPPING AND SMALL VALUE PROCUREMENT
1.
Shopping [Section 52.1. (a)]. When there is an unforeseen contingency requiring

immediate purchase, the amount shall not exceed the following:
a)
For NGAs, GOCCs, GFIs, and SUCs, One Hundred Thousand Pesos (P100,000).
b)
For LGUs, in accordance with the following schedule:

Maximum Amount (in Philippine Peso)
DOF Classification of LGUs
Province
100,000
100,000
100,000
80,000
60,000
50,000
1 Class
2nd Class
3rd Class
4th Class
5th Class
6th Class
st
City
100,000
100,000
80,000
60,000
50,000
50,000
Municipality
50,000
50,000
50,000
50,000
50,000
50,000
In the case of barangays, Fifty Thousand Pesos (P50,000).

2.
Shopping [Section 52.1. (b)] and Small Value Procurement [Section 53.9].
Procurement shall not exceed the following:
a)
For NGAs, GOCCs, GFIs, and SUCs, Five Hundred Thousand Pesos (P500,000).
b)
For LGUs, in accordance with the following schedule:

Maximum Amount (in Philippine Peso)
DOF Classification of LGUs
Province
500,000
500,000
500,000
400,000
300,000
200,000
1 Class
2nd Class
3rd Class
4th Class
5th Class
6th Class
st
City
500,000
500,000
400,000
300,000
200,000
100,000
Municipality
100,000
100,000
100,000
50,000
50,000
50,000
In the case of barangays, Fifty Thousand Pesos (P50,000).

3.
For Foreign-funded Procurement, the thresholds shall be determined in each case,

taking into account the nature of the goods, works, or assignment, by agreement
between the GOP and the foreign government/foreign or international financing
institution.
139

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RevisedIRR RA9184

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R EVISED I MPLEMENTING

Revised Implementing Rules and Regulations

REVISED IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC

Transparency in the procurement process and in the implementation of procurement

Competitiveness by extending equal opportunity to enable private contracting parties

Streamlined procurement process that will uniformly apply to all government

Public monitoring of the procurement process and the implementation of awarded

Revised Implementing Rules and Regulations

Section 4. Scope and Application of the IRR

Any Treaty or International or Executive Agreement to which the GOP is a signatory

Unless the Treaty or International or Executive Agreement expressly provides use of

This IRR shall not apply to the following activities:

Procurement for goods, infrastructure projects, and consulting services

Acquisition of real property which shall be governed by R.A. 8974, entitled

Public-Private sector infrastructure or development projects and other

Section 5. Definition of Terms

Revised Implementing Rules and Regulations

Bid. Refers to a signed offer or proposal to undertake a contract submitted by a

Bidder. Refers to an eligible contractor, manufacturer, supplier, distributor and/or

Refers to R.A. 9184, entitled An Act Providing for the Modernization,

bidder in response to and in consonance with the requirements of the Bidding

used in the day-to-day operations of Procuring Entities in the performance of their

Refers to a method of procurement which is open to

Revised Implementing Rules and Regulations

investment or feasibility studies; (iii) design; (iv) construction supervision; (v)

Domestic Bidder. Refers to any person or entity offering unmanufactured articles,

Domestic Entity. Refers to an individual or a sole proprietor who is a citizen of the

Executive Agreements. Refer to International Agreements except that they do

materials or supplies of the growth or production of the Philippines, or manufactured

one (1) year or converted in the process of manufacture or construction, or those

or not to be manufactured in the Philippines, substantially from articles, materials, or

Refer to loans, credits, and indebtedness with private foreign

Revised Implementing Rules and Regulations

GPPB. Refers to the Government Procurement Policy Board created in accordance

Infrastructure Projects. Include the construction, improvement, rehabilitation,

International Agreement. Refers to a contract or understanding, regardless of

PhilGEPS. Refers to the Philippine Government Electronic Procurement System as

Philippine National. Refers to an individual or a sole proprietor who is a citizen of

consulting services and infrastructure projects, which may be needed in the

the Philippines or a partnership, corporation, cooperative, or association organized

Revised Implementing Rules and Regulations

Universal or Commercial Banks. Refer to universal or commercial banks duly

Refers to a website that integrates a wide variety of contents for the

Section 6. Standardization of Procurement Process and Forms

To systematize the procurement process, avoid confusion and ensure transparency,

RULE II PROCUREMENT PLANNING

Revised Implementing Rules and Regulations

emergencies based on historical records. In the case of infrastructure projects, the

No procurement shall be undertaken unless it is in accordance with the approved

information on whether PAPs will be contracted out, implemented by

For purposes of this Section, consignment refers to an arrangement where the

Revised Implementing Rules and Regulations

RULE III PROCUREMENT BY ELECTRONIC MEANS

8.1.1. To promote transparency and efficiency, information and communications

Revised Implementing Rules and Regulations

Allow parallel manual submission of bids to the procuring entity;

Must have sufficient redundant back-up facilities;

Must have provisions for linkage to the procuring entitys Financial