Resource Person

Engr. HUILLIO “Boy’ BELLEZA, MNSA, CESO III

• Bachelor of Science in Civil Engineering (BSCE) at F.E.U.

• Master in Public Administration at P.U.P.

• Master in National Security Administration (MNSA) - Regular

Class 28, 1993-94 at National Defense College of the Philippines
(NDCP)
• Candidate Doctor in Public Administration (DPA) at P.U.P.
(Completed 60 Academic Units)

• Career Executive Service Officer (CESO) III

• Accredited Government Procurement Policy Board (GPPB) Trainor

of RA 9184 and its IRR

• Former DPWH Regional Director Regions IV-A and IV-B

• Consultant
Seminar for Authorized Managing Officers
(AMO)

RA 9184 / Government
Procurement Laws and
Processes
Quezon City Sports Club, Q.C.
21 March 2019
2
 Attention
RA 9184 / Government Procurement
WHAT: Laws and Processes
WHO: Government / Private / Others
WHEN: 21 March 2019
WHERE: Quezon City Sports Club, Q.C.
WHY: 1. To get AMO License
2. Afterwards, get gov’t contracts
“PARA MAY KITA”
HOW: For discussion 3

By Order
 Topic Outline
1. Objectives
2. Definition of Terms
3. Legal Basis (Scope and Application)
4. Procurement Organization ( HOPE / BAC / Secretariat / TWG )
5. Bidding Procedures : Flow Chart for the Procurement of Goods / Infra
Eligibility Criteria
Bidding Documents (5th Edition August 2016)
Pre-procurement Conference
Advertising and Posting of Invitation to Bid (IB)
Pre-Bid Conference
Bid / Performance / Warranty Security
Submission of Bid Envelopes
Bid Evaluation
Post-Qualification
Award of Contract

6. Degree of Relationship (Consanguinity / Affinity)

4
7. Q & A (Comments/Suggestions)
“What profit would there be for
one to gain the whole world
and forfeit his life?

Or what can one give in

exchange for his life?”
Matthew: 16:26
 REMINDER

A “joke” & a “truth” are not

mutually exclusive. Sometimes,
the BEST JOKES are TRUE &
the BEST TRUTHS (we hope) are
just JOKES.
BUILD!
BUILD!
BUILD!
The Duterte Administration will be
spending Php 8-9T for
infrastructure for the next 5 years
so they say it’s the GOLDEN AGE
OF INFRASTRUCTURE
8
 1, 097.5
2018

6.3%

TARGET INFRASTRUCTURE SPENDING 7% of GDP 9

10
2011-2017 DPWH Infrastructure Program:
Capital Outlays (By Category)

18%

33%
Amount (In Billion Pesos)

43%

32%
45%
10%

1 US $ - P 48.6 (as of Oct. 13, 2016)

1111
12
 PROGRAM REGIONAL
ALLOCATION
BASED ON NEP
Regions Amount Number of Number of Projects Published in the
in Thousand Pesos Projects DPWH Website (Indicative APP)

CAR 16,788,038 731 772

NCR 34,895,182 1,274 1,241
Region I 23,790,624 1,291 1,301
Region II 16,758,597 757 663
Region III 41,621,155 1,423 1,438
Region IV-A 37,675,041 1,424 1,216
Region IV-B 27,134,936 808 755
Region V 36,677,470 1,290 1,002
Region VI 23,684,296 1,170 1,138
Region VII 18,867,430 1,084 1,321
Region VIII 27,622,985 850 907
 PROGRAM REGIONAL
ALLOCATION
BASED ON NEP
Regions Amount Number of Number of Projects Published in
in Thousand Pesos Projects the DPWH Website (Indicative
APP)

Region IX 21,262,638 604 621

Region X 42,142,898 965 968
Region XI 47,118,962 1,251 1,168
Region XII 16,370,211 613 554
Region XIII 24,701,082 643 655
I. Sub-Total 457,111,545 16,178 15,738
II. Inter-Regional/Nationwide 65,895,608
Grand Total (I. + II.) 523,007,153

Note: Indicative APPs can be viewed at the Transparency Seal of the DPWH
website
1. Objectives

• To orient participants on the current

procurement system and practices for
Government Projects including the
changes/UPDATES on the revised IRR of RA
9184.
• To enable participants to apply these
knowledge/changes in the procurement
processes of Government Projects.
DEFINITION OF TERMS

17
 What is PROCUREMENT?

Procurement refers to the acquisition of goods, consulting

services, and the contracting for infrastructure projects by
procuring entity.

(Sec. 5(aa), IRR, R.A. 9184)

18
 GOODS

Refer to:
 All items, supplies and materials
 Including general support services 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 or construction, personal property, including non-
personal or contractual services, such as:
• repair and maintenance of equipment and furniture
• trucking, hauling, janitorial and security and other
related and analogous services.

Except: Infrastructure projects and consulting services

19
 CONSULTING SERVICES

Refer to services for infrastructure projects and other types of

projects or activities of the Government requiring adequate external
technical and professional expertise that are beyond the capability
and/or capacity of the Government to undertake such as, but not
limited to:

1. advisory and review services;

2. pre-investment or feasibility studies;
3. design;
4. construction supervision;
5. management and related services; and
6. other technical services or special studies.

20
 INFRASTRUCTURE PROJECTS
Refer to:
 construction, improvement, demolition, rehabilitation, repair,
restoration or maintenance of:

1. roads and bridges, flood control and drainage

2. railways, airports, seaports
3. communication facilities, civil works components of IT projects
4. Irrigation, water supply
5. sanitation, sewerage and solid waste management
6. national buildings, hospital buildings
7. other related constructions projects of the Government.

21
WHAT ? : Legal Basis

•R.A. No. 9184 , otherwise known as the

• “GOVERNMENT PROCUREMENT REFORM ACT (GPRA)”

• Title : “An Act Providing for the Modernization, Standardization and
Regulation of the Procurement Activities of the Government
and for Other Purposes”

• Limit or Scope : Domestically/Foreign* funded procurement activities;

• Coverage: Procurement of Goods, Infrastructure Projects and Consulting Services; and
• Applies to: NGAs, GOCCs, GFIs, SUCs, and LGUs.

*unless otherwise provided in a treaty or international / executive agreement

 SCOPE AND COVERAGE

EXCEPT:
1. 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;

23
 SCOPE AND COVERAGE

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

amended by RA 10752 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;

24
 SCOPE AND COVERAGE

3. Public-Private sector infrastructure or development

projects and other procurement covered by R.A. 6957, as
amended by R.A. 7718 (BOT Law), entitled “An Act
Authorizing the Financing, Construction, Operation and
Maintenance of Infrastructure Projects by the Private
Sector, and for Other Purposes,” as amended;

25
 SCOPE AND COVERAGE

4. Disposal of government properties;

 Commission on Audit Circular No. 86-264

 DBM National Budget Circular No. 425

26
 SCOPE AND COVERAGE

Enumerated activities that are NOT considered as

procurement undertakings under RA 9184 and its IRR:

1. Direct financial or material assistance to beneficiaries

2. Participation to scholarships, trainings, continuing
education, etc.
3. Lease of government property for private use
4. Job order workers
5. Joint Venture Agreements between Private Entities and
GOCCs or LGUs
6. Disposal of property and assets
Sec. 4.5, 2016 IRR of RA 9184
27
ENACTMENT OF GPRA
RA 9184 Government
Procurement Reform Act
Implementing
Rules and (GPRA)
Regulations 10 January 2003

Executive Implementing Rules and

Orders Regulations (IRR) Part A
8 October2003

Revised IRR of 2009

Administrative 2 September 2009
Issuances
Revised IRR of 2016
28 October 2016

Memorandum
Circulars

Over 100 Procurement Rules and Regulations

28
 EFFECTIVITY

Handbook on Philippine Government Procurement

(Effectivity reckoned from Date of Publication of Invitation to Bid)

RA 9184 January 26, 2003

1. Oct. 8, 2003 to Sept. 01, 2009 — IRR - A

2. Sept. 02, 2009 to Oct. 27, 2016 — revised 2009 IRR

3. October 28, 2016 onwards — revised 2016 IRR

(60 days from publication in the Official Gazette on August 29, 2016)
Government Policy Procurement
Board (GPPB)
Refers to a government regulatory body
established in Section 63 to formulate and
amend public procurement policies, rules and
regulations to ensure the proper
implementation of the GPRA, among others.

www.gppb.gov.ph
30
Government Policy Procurement Board

Duties and Responsibilities:

• Protect national interest in all matters affecting
public procurement, having due regard to the
country’s regional and international obligations;
• Formulate and amend public procurement policies,
rules and regulations, and amend, whenever
necessary, the IRR;
• Prepare a generic procurement manual and the
standard bidding forms for procurement

31
Government Policy Procurement Board (GPPB)

Duties and Responsibilities:

• Ensure the proper implementation by Procuring
Entities of the Act, IRR and other relevant rules and
regulations pertaining to public procurement;
• Establish a sustainable training program to develop
the capacity of Government procurement officers and
employees;
• Conduct an annual review of the effectiveness of
the Act and recommend any amendments thereto,
as may be necessary
• Create a Technical Support Office (TSO) which shall
provide support in the performance of its duties and
responsibilities specified in the ACT and the IRR.
32
 GPPB Membership
Chairperson: DBM Secretary
Alternate Chair: Director General of NEDA

Members (Secretaries):
DPWH DND DOTr
DOF DepEd DCIT
DTI DILG DOE
DOH DOST and private sector
representative
appointed by the President
33
PhilGEPS (Philippine Government
Electronic Procurement System) Sec. 8

• Managed by the DBM-PS under the supervision of the GPPB

• A single portal that serve as the primary and definitive

source of information on all government
procurement

www.philgeps.gov.ph
34
Features of the PhilGEPS

• Electronic Bulletin Board

• Registry of Manufacturers, Suppliers, Distributors,
Contractors and Consultants
• Electronic Catalogue

• Additional Features:
oVirtual Store
oElectronic Payment
oElectronic Bid Submission

35
Use of the PhilGEPS

• 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 the IRR

• All Procuring Entities shall register with the PhilGEPS

• 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 the Act and the IRR
36
Registration, Eligibility Requirements
and Submission of Bids under the
PhilGEPS

• To ensure the widest dissemination of the IB /

REI, manufacturers, suppliers, distributors,
contractors and/or consultants shall register
with the PhilGEPS

PhilGEPS shall have a feature that allows the

electronic submission of eligibility
requirements and bids.
37
Registration, Eligibility Requirements
and Submission of Bids under the
PhilGEPS (Sec. 8.5.2)
• All bidders shall upload and maintain in PhilGEPS a
current and updated file of the following Class “A”
eligibility documents:
a.) Registration Certificate;
b.) Mayor’s Business Permit or its Equivalent
Docs
c.) Tax Clearance;
d.) PCAB license and registration
e.) Audited Financial Statements
38
WHO: Gov’t / Private / Others
ACTORS IN PROCUREMENT
Manufacturers COA
TECHNICAL
WORKING NGO / PO
Suppliers END USER
BUDGET GROUP(TWG) CO
OFFICE

Media
Consultants
Banks
BIDS AND AWARDS APPROVING
COMMITTEE (BAC) & AUTHORITY/
SECRETARIAT HOPE International
Contractors Financing
Institution
General Public
PROCUREMENT ORGANIZATIONS
• HOPE – Head Of Procuring Entity
• BAC – Bids and Awards Committee
• Chairperson*
• Vice-Chairperson*
• Regular Member
• Provisional Member
• Provisional Member (End-User)
(Minimum of 5, maximum of 7 members)
*shall be designated by the HOPE
• BAC Secretariat
• TWG – Technical Working Group
• From pool of legal, financial and technical experts
40
 METHOD OF PROCUREMENT

 As a general rule, all procurement should be through public

bidding

 The selection of the method of procurement is dependent on

the presence or absence of specific conditions of other
methods of procurement in Sections 48 to 54 of the revised
IRR

41
 6. PROCUREMENT METHODS

All Procurement shall be done through competitive bidding

except as provided in R.A. 9184.

Resort to alternative methods (Section 48 – 54) shall be

made:

Only in highly exceptional cases

To promote economy and efficiency

Justified by conditions specified in R.A. 9184 and its IRR

42
PROCUREMENT METHODS

43
 Sec. 48 ALTERNATIVE METHODS

• Sec. 49 - Limited Source Bidding

• Sec. 50 - Direct Contracting
• Sec. 51 - Repeat Order
• Sec. 52 - Shopping
• Sec 53. - Negotiated Procurement
53.1 Two Failed Biddings
53.2 Emergency Cases
53.3 Take-Over of Contracts
53.4 Adjacent or Contiguous
53.5 Agency-to-Agency
53.6 Scientific, Scholarly or Artistic Work, Exclusive
Technology and Media Services
44
 Sec. 48 ALTERNATIVE METHODS

53.7 Highly Technical Consultants

53.8 Defense Cooperation Agreement
53.9 Small Value Procurement
53.10 Lease of Real Property and Venue
53.11 NGO Participation
53.12 Community Participation
53.13 UN Agencies, International
Organizations or International
Financing Institutions
54 Terms and Conditions for its uses
45
HOW : ?!
STANDARDIZED BIDDING PROCEDURE FOR
GOODS AND INFRA
Pre-Procurement Pre-Bid
Advertisement
Conf. Conference

Opening of
Submission of Opening of 2nd
1st Env. - Eligibility
Bids Envelope – Financial
Docs & Technical
Proposal
Proposal

Bid Evaluation Post-qualification Award of

& Ranking Contract
46
 Procedural Steps for Procurement
of Infrastructure Projects
NOW
Advertisement- 1 c.d.
Posting – 7 c.d.

Pre-Procurement • Submission of LOI / Documents as

Advertisement/
Conf. Posting
specified in the Bidding documents
• Issuance/Purchase of Bid documents

Pre-Bid Submission Opening of Opening of

Conference of ELIGIBILITY
Financial
Bids & Tech.
1 c.d. at least Envelope
12 c.d. Env.
1 c.d.

Bid Evaluation Award of

& Ranking Post qualification
Contract
ABC 50M and below- within 5 c.d.
ABC above 50M –within 7 c.d.
within 12 - 45 c.d.
 5. BIDDING PROCESS FOR THE PROCUREMENT OF GOODS / INFRA
PROJECTS

A
Prepare Bid
Documents

ABC > Yes Pre-Procurement

2M(Goods)?
5M(Infra)?
Conference
• Posted 7 cd continuously at
PhilGEPS Website No
• Conspicuous place
• Agency website (If available), Post/Advertise
• *Advertised once in Invitation to Bid
newspaper of From 1st day of
general NATIONWIDE Advertisement of Invitation
circulation (Consulting 5M, Issue Bid Documents to Bid to Submission and
Goods 10M, Receipt of Bids
Infra 15M)
*No more after Oct. 28, 2018
Except if PE cannot post in PhilGEPS B 48
 B

ABC ≥ Yes Pre-Bid

1M? Conference
2 separate sealed bid
envelopes: No
1st Technical component,
Bidders Submit Bids 12 days
including eligibility
requirements
2nd Financial Component

Preliminary Examination of Bids

Use Checklist, Non- 2nd envelope of
Open Technical Open Financial
discretionary complying bidder/s
Envelope Envelope
Pass-fail criteria only

Determine the
Bid Evaluation Lowest Calculated Bid
(LCB)

C 49
 C

Are all Bids Yes Declare Failure of

>ABC? Bidding
No
Lowest Bidder Submit Review Evaluate
Additional Docs Bidding Docs

2nd No
Post-Qualification of
Bidding A
Lowest Calculated Bidder
Yes
Bidder Post- Negotiated
No Procurement
Qualified?

Yes
Recommend to
Recommend Award thru HOPE the
Resolution Award to the LCRB

D 50
 D
Within a period not
exceeding seven Approval of Resolution to
(7) 15 calendar days
Notify all losing bidders w/in
Award
?
3 CD Award No
approved?
Yes
W/n bid validity period,
Issue Notice of Award
Post at PhilGEPS w/in 3 CD

W/in 10 calendar days, bidder

must post performance security Contract Signing
C
& sign the contract

Bidder Sign
Contract & No Disqualify
post perf. Bidder
security?
Yes
E 51
 E
w/in NGA (15) 20 cd
GOCC- (25) 30 cd

Approval by Yes
Higher authority
required?
Approval by Higher
No Authority/ GOCC
Governing Board

not exceeding Issuance of Yes Contract

(3) 7 cd Notice to Proceed Approved?
terms effective upon
time of receipt No
Post PhilGEPS w/in 15 cd

Contract ?
Implementation

52
 IMPLEMENTATION Defect /
PRECON WARRANTY
Period liability
Period Period
Period
( 2, 5, 15 yrs )

BID PERFORMANCE WARRANTY

Security Security Security

PLAN / End of
START COMPLETE ACCEPT END
BUDGET WS
• CARI
• Payments 1 yr 1 yr
- Advance
- Progress
-Final
-Retention money
-Variation Order
-Time Suspension / Extension
-Liquidated Damage

PROJECT CYCLE / MILESTONES

4. Liability of Contractors/Consultants/Project Construction
Managers/Supervisors for Structural Defects / Failure
From Final Acceptance up to:

15 years – permanent (Buildings type 4 & 5 and structures

made of steel, iron or concrete (I.e. bridges/flyover, etc.)

5 years – semi permanent structures ( Buildings type 1, 2, & 3,

concrete/asphalt roads, other similar semi-permanent
structures)

2 years – other structures (bailey & wooden bridges, shallow

wells, spring dev. & other similar structures)
SEALING AND MARKING OF BIDS

55
SEALING AND MARKING OF BIDS

56
SEALING AND MARKING OF BIDS

57
 LEGAL ELIGIBILITY CRITERIA
GOODS INFRASTRUCTURE
• General rule: 60% Filipino • General rule: 75% Filipino
• Foreign bidder allowed if: • Foreign contractors allowed if stated
1) Stated in treaty or international or in treaty or international or executive
executive agreement; agreement
2) National of a country offering
reciprocity rights to Filipinos;
3) Goods not available from local
suppliers; or
4) To prevent situations that defeat
competition or restrain trade
• If joint venture, less than 75% Filipino-
owned is allowed if -
1. Structures to be built require
techniques not possessed by 75%
Filipino-owned contractors; and
2. Should not be less than 25%
Filipino ownership

58
Eligibility Requirements under Section 23.1 of the IRR.

A. Legal
1. Registration Certificate (as appropriate)
• DTI (Sole Proprietor)

• SEC (Corporation)
• CDA (Cooperatives)
2. Valid Current Mayor’s permit (bidder principal place of business located)
3. BIR Tax Clearance
4. PhilGEPS registration

B. Financial

1. Audited Financial Statement Stamp received by the BIR w/

Net Financial Contracting Capacity (NFCC) Computation or
2. 10% Committed Line of Credit (CLC) for goods only

C. Technical
1. Statement of all on-Going/completed/ Awarded contracts but not yet started
(Gov’t. & Private)

2. Statement identifying the single largest completed SLCC contract similar to

the contract to be bid, within the relevant period as provided in the bid docs.

3. PCAB License & Registration (For INFRA only)

 ELIGIBILITY REQUIREMENTS
(1st Envelope)

Submission of PhilGEPS Certificate of Registration and

Membership in lieu of the Class “A” eligibility documents under
Sections 23.1(a) and 24.1(a)

Section 8.5.2, 2016 IRR of RA 9184 - All bidders shall upload and
maintain in PhilGEPS a current and updated file of the following
Class “A” eligibility documents under Sections 23.1(a) and 24.1(a):
a) Registration Certificate;
b) Mayor’s/Business Permit or its Equivalent Document;
c) Tax Clearance;
d) Philippine Contractors Accreditation Board (PCAB) license and
registration; and
e) Audited Financial Statements.

60
 ELIGIBILITY REQUIREMENTS
Requirements Under 2016 IRR of RA 9184
GOODS INFRASTRUCTURE
Class A Documents
LEGAL:
1. PhilGEPS Certificate of Registration and 1. PhilGEPS Certificate of Registration and
Membership (Also represents AFS in Membership (Also represents AFS and
addition to legal documents) PCAB License in addition to legal
documents)
TECHNICAL:
1. Statement of all ongoing contracts. 1. Statement of all ongoing contracts.
2. Statement of SLCC 2. Statement of SLCC

FINANCIAL:
1. NFCC computation 3. PCAB License and Registration

or 10% committed 1. NFCC

Line of Credit
61
 1st Envelope (ELIGIBILITY AND TECHNICAL DOCUMENTS)
GOODS INFRASTRUCTURE
1. PhilGEPS Certificate of Registration in 1. PhilGEPS Certificate of Registration in
accordance with Section 8.5.2 or Class A accordance with Section 8.5.2 or Class A
documents as Eligibility Requirements documents as Eligibility Requirements
2. Bid Security 2. Bid Security
3. NFCC Computation or 10% Committed 3. NFCC Computation
Line of Credit (CLC)
4. Statement of all Ongoing Government and 4. Statement of all Ongoing Government and
Private Contracts including Single Largest Private Contracts including Single Largest
Completed Contract (SLCC) similar in nature Completed Contract (SLCC) similar in nature
and complexity to the contract to be bid and complexity to the contract to be bid
5. Omnibus Sworn Statement 5. Omnibus Sworn Statement
6. Project Requirements:
a) Contractor’s organizational chart
b) List of contractor’s key personnel
6. Technical Specifications, which may c) List of contractor’s major construction and
include: laboratory equipment units
a) Production/delivery schedule
b) Manpower requirements 7. Special JV License with JVA, if applicable
c) After-sales service/parts if applicable

7. JVA or Duly Notarized Statement, if

applicable
62
 NFCC COMPUTATION

Net Financial Contracting Capacity (NFCC) =

(current assets - current liabilities) (K) MINUS
(outstanding, uncompleted portions under ongoing
contracts + contracts awarded but not yet started)
NFCC = (CA-CL)*K-VUP; at least equal to ABC

(K) = 10 (contract is 1 year or less)

15 (contract is more than 1 year to 2 years)
20 (contract is more than 2 years)
The constant NFCC’s K factor is set at 15, regardless of
contract duration
63
 2nd Envelope FINANCIAL DOCUMENTS
(as specified in the PBDs)

GOODS INFRASTRUCTURE
1. Duly signed bid forms/prices and the 1. Duly signed bid form indicating the
applicable Price Schedules in Total Bid Price
accordance with ITB
2. If the Bidder claims preference as a 2. Duly signed bid prices in the Bill of
Domestic Bidder, a certification from the Quantities (BOQ)
DTI issued in accordance with ITB,
unless otherwise provided in the BDS;
and
3. Any other document related to the 3. Duly signed detailed estimates
financial component of the bid as stated including a Summary sheet indicating
in the BDS the unit prices of construction materials,
labor rates and equipment rentals used
in coming up with the bid.
4. Duly signed cash flow by quarter

64
 Responsibility of LCB
(Lowest Calculated Bidder)

• Within (3) 5 calendar days from receipt by the bidder of

the notice from the BAC that the bidder has the LCB shall
submit the following documentary requirements to the
BAC:
• Latest income and business tax returns;
• BIR Tax Clearance
• (Certificate of PhilGEPS Registration); and
• Other appropriate licenses and permits required by law and
stated in the Bidding Documents.

8/28/20 07:07 PM 65
DISCLOSURE OF RELATIONS - Rule XV, Sec. 47
GREAT
TREE OF RELATIONSHIP
GRANDPA/
MA
BY CONSANGUINITY
3
4
? Bidders
Biddersprohibited
prohibitedtotoapply/
apply/bidbidif:
if:
GRAND GRANDPA 1. Relatives
Relativeswithin
withinthe
the33 degree
degreeof
rdrd
1. of
PARENTS SIS / BRO consanguinity
consanguinity or affinityof:
or affinity of:
2 Head
•• HeadofofOffice
Office
3
PARENTS •• BAC
BACmembers
members
AUNTS •• BAC Secretariat
BAC Secretariat
OR
UNCLES 1 •• Technical
Technicalworking
workinggroup
group
2 •• Head
Head of ImplementingUnit
of Implementing Unit
BROTHER 2. Application:
4 2. Application:
YOU OR
a)
a) Sole
Soleproprietorship:
proprietorship: him/
him/
SISTER
FIRST SPOUSE herself
herself
COUSINS b) Partnership
b) Partnership:: all
all
1 NEPHEWS officers & members
officers & members
CHILDREN 3 OR c)
c) Corporation
Corporation:: all
all
NIECES officers/
officers/directors/
directors/controlling
controlling
stockholders
stockholders
2 d)
d) Joint
JointVenture
Venture (JV)
(JV)::
GRAND
GRAND NEPHEWS each
each member ofthe
member of theJVJV(a),
(a),(b),
(b),(c)
(c)
CHILDREN 4 OR as
asappropriate
appropriate
NIECES

Rule
RuleXV
XVof
ofIRR-A
IRR-Aof
ofRA
RA9184
9184
GREAT 3GREAT
4 GREAT
GRAND
GRAND
CHILDREN
CHILDREN
 TREE OF RELATIONSHIP
BY AFFINITY

Bidders
Biddersprohibited
prohibitedto toapply/
apply/
bid if :
bid if :
GRAND GRAND
1.
1. Relatives
Relativeswithin
withinthe
the33rd
rd
PARENTS PARENTS
degree
degreeof ofconsanguinity
consanguinity
2 3 or
oraffinity
affinityof:
of:
3 4 Head
•• Headof ofOffice
Office
AUNTS AUNTS
OR PARENTS PARENTS
•• BAC
BACmembers
members
OR
UNCLES 3 UNCLES •• BAC
BACSecretariat
Secretariat
2 1 Technical
4 2
•• Technicalworking
workinggroup
group
BROTHER 1 Brother 5 •• Head
HeadofofImplementing
Implementing
FIRST ALAS FIRST Unit
COUSINS
OR HARI (Wife)
In Law COUSIN
Unit
SISTER Sister 2. Application
2. Application::
3 1 4 a)
a) Sole
Soleproprietorship
proprietorship::
him/
him/herself
herself
NEPHEWS NEPHEWS
OR CHILDREN OR b)
b) Partnership
Partnership::
NIECES NIECES all
allofficers
officers&&
members
members
4 2 5
GRAND GRAND c)
c) Corporation
Corporation ::
NEPHEWS GRAND NEPHEWS all
allofficers/
officers/
OR CHILDREN OR directors/
directors/controlling
controlling
NIECES NIECES stockholders
stockholders
3 d)
d) Joint
JointVenture
Venture (JV)(JV) ::
GREAT each
eachmember
member
GREAT 4
GREAT of
of the JV (a),(b),
the JV (a), (b),(c)
(c)as
as
GRAND
GRAND appropriate
appropriate
CHILDREN
CHILDREN

Rule
RuleXV
XVof
ofIRR-A
IRR-Aof
ofRA
RA9184
9184
http://www.slideshare.net/daisypbragais/prohibitions-on-appointments-in-the-civil-service
 IMMEDIATE FAMILY MEMBERS

Note: Step relationships (step-brother, step-father, etc.) are considered to be the same as blood
relationships.
© 2016 Jacksonville State University | 700 Pelham Rd N Jacksonville, AL 36265
 TECHNICAL ELIGIBILITY CRITERIA

INFRASTRUCTURE PROJECTS – 50% SINGLE LARGEST

COMPLETED CONTRACT (SLCC)

Exception:
 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 the Allowable
Range of Contract Cost (ARCC) of their registration based on
the guidelines as prescribed by the PCAB.
 A contract shall be considered “similar” to the contract to be bid
if it has the same major categories of work. The PE may clarify
in the Bidding Documents what is regarded as major categories of
work.

70
 Form of Security Amt of Bid Security Amt of Performance Security
(% of the ABC) (% of Contract Price)
a) Cash or
cashier’s/manager
’s check issued by 10% infra
Universal or
Commercial Bank
b) Bank draft / 5% (goods &
guarantee or 2%
consulting services)
irrevocable LC
issued by a
Universal or
Commercial bank
c) Surety bond
callable upon
demand issued by
a surety or
insurance 5% 30%
company duly
certified by the
insurance
commission
d) Bid Securing
Declaration (BSD)
per GPPB
Resolution No.
03-2012
(-) N/A

*For biddings conducted by LGUs, the Letter of Credit / Bank draft / Bank guarantee may be issued
by other banks certified by the BSP as authorized to issue such financial instrument
Section 62. Warranty
Form of Warranty Security Amt of Warranty Security
(% of the Contract Price)
a) Cash or LC issued by
Universal or Commercial
Bank
*(for LGU) 5%

b) Bank guarantee confirmed

by a Universal or
Commercial bank
*(for LGU) 10%

c) Surety bond callable upon

demand duly certified by
the Insurance Commission 30%

For biddings conducted by LGUs, the Letter of Credit / Bank draft /

Bank guarantee may be issued by other banks certified by the BSP
as authorized to issue such financial instrument
 BID VALIDITY PERIOD

 Bids and bid securities (including bid securing

declaration) shall be valid for a reasonable period as
determined by the HOPE as indicated in the Bid Docs.

 Not to exceed 120 cd

 If the period is extended, PE shall request in writing all

those who submitted bids for such extension before the
expiration date. However, bidders have a right to refuse
to grant such extension without forfeiting their bid
security.

73
STANDARD RATES OF PBDs

Approved Budget for the Contract Maximum Cost of Bidding

(in Philippine Peso) Documents (in Philippine
Peso)
500,000 and below 500.00
More than 500,000 up to 1 Million 1,000.00
More than 1 Million up to 5 Million 5,000.00
More than 5 Million up to 10 Million 10,000.00
More than 10 Million up to 50 Million 25,000.00
More than 50 Million up to 500 Million 50,000.00
More than 500 Million 75,000.00

• Bidding Documents Fee may be refunded if there is failure of bidding

based on the grounds provided for under Section 41 of RA 9184 and
its IRR
74
 RETENTION MONEY

 For Goods, retention money is 10% at least 1% of

contract price (Sec. 62, 2016 IRR of RA 9184)

 For Infrastructure Projects, retention money is 10% of

contract price

75
 LIQUIDATED DAMAGES

An amount of liquidated damages shall be at least equal to

1/10 of 1% of the cost of unperformed portion for everyday
of delay.
Once the cumulative amount of liquidated damages
reaches ten percent (10%) of the amount of the contract,
the PE shall may rescind or terminate the contract,
without prejudice to other courses of action and remedies
available under the circumstances.

76
 Topic Outline
1. Objectives
2. Definition of Terms
3. Legal Basis (Scope and Application)
4. Procurement Organization ( HOPE / BAC / Secretariat / TWG )
5. Bidding Procedures : Flow Chart for the Procurement of Goods / Infra
Eligibility Criteria
Bidding Documents (5th Edition August 2016)
Pre-procurement Conference
Advertising and Posting of Invitation to Bid (IB)
Pre-Bid Conference
Bid / Performance / Warranty Security
Submission of Bid Envelopes
Bid Evaluation
Post-Qualification
Award of Contract

6. Degree of Relationship (Consanguinity / Affinity)

77
7. Q & A (Comments/Suggestions)
7. Questions ? !

Suggestions/Comments
8/28/20 07:07 PM 78
Have a nice day !!!

HUILLIO B. BELLEZA, MNSA, CESO III

[email protected]

79
 7. PCAB License and Registration Particulars

Allowable Range of Contract Cost (in Million Pesos)

Size
and License CFYs 2006-2007 CFYs 2018-2019
Prior and up to CFYs 2004-2005 &
Range Category & 2007-2008 (For projects
CFY 2003-2004 2005-2006
(For projects advertised for
(For projects (For projects
advertised for bidding from
advertised for advertised for
bidding from July 1, 2018 to
bidding prior and bidding from July
July 1, 2006 to June 30, 2019)
up to June 30, 1, 2004 to June
June 30, 2008)
30, 2006)
2004)

Large B AAA Less than or Less than or ALL ALL

above 50 above 150
Large A AA Up to 50 Up to 150 Up to 300 Up to 450

Medium B A Up to 30 Up to 100 Up to 200 Up to 300

Up to 15 Up to 50 Up to 100 Up to 150
Medium A B

Small B C&D Up to 3 Up to 10 Up to 15 Up to 30

E
Small A (Trade) Up to 0.5 Up to 0.5 Up to 0.5 Up to 1

Per PCAB Circular No. ___ S2018 for Government Projects publicized for Bidding starting 01 July 2018
T. Category “AAAA” (Regular License with
Annotation)
 Shall be issued to a domestic corporation
with small or no Filipino equity but with a
capitalization of at least one billion pesos
(Php 1,000,000,000) in cash and shall be
legally authorized to undertake only the
following projects:

a)Vertical Projects – include Buildings such as

office or residential condominiums, hotels,
malls, hospitals, schools, warehouses and the
like; Airport terminals, marine terminals,
international transport terminals; Power
generation plants; Manufacturing and
assembly facilities; and Tourism resorts,
country clubs and golf courses.
 T. Category “AAAA” (Regular License with
Annotation)
b)Horizontal Projects – include Roads,
expressways and Toll Road Systems; Light Rail
Systems, Heavy Rail Systems, Monorail
System & Bay Area Rapid Transit (BART);
Water Distribution System; Bulk Water
Systems; Sewage & Sewerage System; Power
Transmission System & Power Distribution
System; Telecommunications Distribution
System; Bridges, flyovers, viaducts, overhead
carriageways, Piers, Wharves & Interchanges;
Tunnels, underground Carriageways & Storm
Cisterns; Dams, Dikes, Seawalls & Breakwater
System; and Reclamation.
 T. Category “AAAA”
(Regular License with
Annotation)
 The Minimum Contract Value per single
Project that may be undertaken by a holder of
a Restricted Regular License are set forth
below:

 For Vertical Projects – Five Billion Pesos (Php

5,000,000,000) Philippine Currency; and

For Horizontal Projects – Three Billion Pesos

(Php 3,000,000,000) Philippine Currency
 T. Category “AAAA” (Regular License with
Annotation)

 Every constructor shall be graded and

assigned a category as an adjunct to his
license. General Engineering and General
Building constructors shall be categorized in
a scale of seven, namely; AAAA (quadruple
A) AAA, AA, A, B, C and D. Specialty
constructors shall be categorized in a scale
of seven, namely: AAA, AA, A, B, C, D and
Trade/E
Statistics of Licensed Contractors for CFY 2018-2019
As of 19 April 2018
By Category New Renewed TOTAL
AAAA 0 18 *18
AAA 7 387 394
AA 14 167 181
A 79 1,116 1,195
B 200 2,011 2,211
C 250 1,083 1,333
D 702 2,971 3,673
E (Trade) 339 1,144 1,483
TOTAL 1,591 8,897 10,488
       
By Primary New Renewed TOTAL
Classification
General Building 562 3,055 3,617
General Engineering 556 4,016 4,572
Specialty 172 799 971
Trade 301 1,027 1,328
TOTAL 1,591 8,897 10,488

85
86
 TECHNICAL REQUIREMENTS
(1st Envelope)

GOODS INFRASTRUCTURE
1. Bid Security 1. Bid Security
2. *NFCC Computation or 10% 2. *NFCC Computation
Committed Line of Credit (CLC)
3. Statement of all Ongoing Government 3. Statement of all Ongoing Government
and Private Contracts including Single and Private Contracts including Single
Largest Completed Contract (SLCC) Largest Completed Contract (SLCC)
similar in nature and complexity to the similar in nature and complexity to the
contract to be bid contract to be bid
4. Omnibus Sworn Statement 4. Omnibus Sworn Statement
5. Project Requirements:
a) Contractor’s organizational chart
5. Technical Specifications, which may b) List of contractor’s key personnel
include: c) List of contractor’s major
construction and laboratory
a) Production/delivery schedule equipment units
b) Manpower requirements
c) After-sales service/parts if applicable

87
*with Audited Financial Statement stamped received by BIR