1

• OBJECTIVE : LEARNING HOW TO PARTICIPATE IN GOVERNMENT

BIDDINGS on GOVERNMENT INFRASTRUCTURES : Design & Build
Schemes

2
• PROGRAM
PART I : HOW TO JOIN GOVERNMENT BIDDING
1 CPD Primer
2 How to Join Government Bidding
1.1 Eligibility Requirement
1.2 Documentary Requirements
1.3 Contractor Classification
1.4 Projects window (Opportunity Window)
a GAA 2017/2018
Sample Posting Phil. Gov. Elect. Procurement System
(PHILGEPS) projects posting
b Goods
1.5 Bid Preparation & Submission
DPWH Dept. Order 197 by Sec Mark A. Villar
1.6 How is Bidding evaluation done by Bids and Awards Committee
(BAC)
c Infrastructure Bidding-as Contractor
d As Design & Build-Contractor
OPEN FORUM
PART II: HOW TO IMPLEMENT GOVERNMENT PROJECTS
3.1 Notice of award
Contract
Performance Bond
Payment Bond
CARI
3.2 Construction Stage
Pre-Construction
Construction Programming
a Legal
Contract Documents Stipulations, Drawings,Specifications,Billof
Deliverables Quantities. Technical Documents; Drawings,
Programme/Schedule
Building Permits Specifications,BOQ,TCT,Bgy Clearance,Property
(Government) Contracts Lease or rent Etc..
b Technical
Staff & Personnel
Approved Drawings,Specs,BOQ
Continuous Actual Site Verification; Preparation of Work Variation.
Project Operations Criteria: Cost,Time,Quality
Project Submittals & Approvals
Mobilization-Manpower & Equipment Schedule 4
PART II: HOW TO IMPLEMENT GOVERNMENT PROJECTS

c Financial
1 Finance Cash Flow
2 Credit Line
3 Reusable Items (Surplus)
3.3 DOLE Approved Safety Program
DOLE Compliance & Inspections
3.4 Project Completion Close Out
a As-builts
b Completion & Occupancy Permit Owner Completion & Acceptance
c Warranties Retention while in Progress up to 50% and
Surety for 100%
d Equipment Testing & Commissioning
e Operation Manuals, Tech Brochures of Installed equipments
3.5 Construction POST AUDIT (COA)
a Approved Contract
b Audit Observation Memorandum (AOM)
c Disallowance
3.6 Benchmarking-Cost Estimate Validation
OPEN FORUM 5
CPD PRIMER

6
A. Programme Primer: THE CPD LAW 2. When was the Law enacted and become effective? The CPD Act lapsed
RA 10912 into Law on July 21, 2016 and it took effect on August 16, 2016.

Senator Antonio Trillanes, author of the bill and chairman of the

committee on civil service and government reorganization, said the bill
aims to boost the competence of professionals in the country. 7
The CPD Law : Continuing Professional
Development CPD LAW : R.A. 10912
❑For all Regulated Professions
❑ Creation of CPD Council for each Regulated Profession
❑ Fund Appropriation
❑ 4 Articles (19 Sections)
• Article:1 Title Policy & Definition of Terms (Sec 1-3)
o Section 1: Title, The CPD LAW
o Section 2: Promote & Upgrade the Practice of Professions in
the Country
o Section 3: Definition
a. Accreditation: Formal or Official Approval
b. AIPO/APO: Accredited Integrated Professional
Organization or Accredited professional Organization
c. ASEAN Qualification across member states
d. ASEAN Mutual Recognition Arrangement- between
member states Qualifications, Licenses, Certificates,
Requirements 8
 • Article:2 Title Policy & Definition of Terms
• Article II : CPD Program Councils and Secretariat (Sec 4-9)
o Section 4: Strengthening CPD programs in each regulated Professions.
o Section 5: Nature of CPD Programs
Structured, Non structured
a. Formal Learning
b. Non Formal Learning
c. Informal Learning
d. Self Directed Learning
e. On Line Learning Activities
f. Professional Work Experience
o Section 6: Powers Functions & Responsibilities of PRC and the Professional
Regulatory Boards (PRB’s). The PRC & THE PRBs shall undertake the
overall implementation of the CPD Programs.
o Section 7: Creation of CPD Council
Each CPD Council of the regulated professions shall be under the
concerned PRB. 1- Chairman ; 2 Members
-The chairperson of the CPD Council shall be a member of PRB,
Chosen by the PRB to sit in the CPD Council.
9
 • Article II : CPD Program Councils and Secretariat
o Section 8: Powers, Function, & Responsibilities of Each CPD Council for each
Professions.

• Article III : CPD Implementation & Monitoring (Sec 10-13)

o Section 10: CPD as mandatory Requirement in the renewal of
Professional License
IRR of RA 9266: PROFESSIONAL REGULATORY BOARD
OF ARCHITECTURE:ORGANIZATION, POWERS, AND
FUNCTIONS
SECTION 7. Powers and Functions of the Board of Architecture
(i) Prescribe guidelines for the Continuing Professional Development (CPD)
program in consultation with the integrated and accredited professional
organization of architects: Provided, That the attendance to said CPD shall
not be a mandatory requirement for the renewal of a professional
Identification Card;

10
 • Article III : CPD Implementation & Monitoring

o Section 11: Recognition of Credit Units

o Section 12: Career Progression & Specialization
o Section 13: Govt & Private Firms & Organization must include in HR Dev. Program

• Article IV: Final Provisions (Sec 14-19)

o Section 14: Funding-To be included in GAA of PRC
o Section 15: IRR of CPD within 6 months from effectivity of this act
o Section 16: Fraud & Penalties
o Section 17: Separability Clause-If any part or provision of this act is declared invalid
or unconstitutional the other provisions shall remain in full force.
o Section 18: Repealing Clause All Laws decrees executive
orders and other administrative issuances or parts thereof
which are inconsistent with the provisions of this act are
hereby repealed or modified accordingly.
o Section 19: Effectivity- 15 days upon publication in the official gazette

11
 1 CPE Primer for Architects
PRC (UPDATED) NOTICE: Compliance with Continuing
Professional Development (CPD) Act Of 2016
The implementation of R.A. No. 10912 started on March 15, 2017
Manila, June 30, 2017 – Starting July 1, 2017, all professionals, with the exception of
Agricultural and Biosystems Engineers, Professional Teachers, Registered Nurses and
Midwives are required to present earned CPD units before the renewal of Professional
Identification Cards.
❑ Pursuant to Resolution No. 04, s. 2016, of the Professional Regulatory
Board of Architects, the following is the transitory period for the
compliance to CUs for Architects:
RENEWAL PERIOD Minimum Required Number of CPD Credit Units
Below 60 Years Old Between 60 to 69 Yrs Old 70 years Old
July to December 13.5 10.5 7.5
2017
2018 27 21 15
2019 Onwards 45 35 25 12
Major Areas of CPD Activities for ARCHITECTS
MINIMUM CREDIT UNITS
MAJOR AREA COVERAGE OF THE AREA
REQUIRED (%)

•Art and architectural history, theory and

criticism
•Building Types (Commercial, Residential,
Health, Hi-rise, etc.) 20%
DESIGN •Community Design of total credit
•Housing units
•Human Settlements
•Site Design and Planning
•Others

13
 MINIMUM CREDIT UNITS
MAJOR AREA COVERAGE OF THE AREA
REQUIRED (%)

•Ethics
•Business of Architecture
•Standards of Professional Practice (laws,
rules, codes, PRB resolutions, etc.)
•Procurement and Project delivery
•Firm Management 20%
•Global and Collaborative Practice
PRACTICE •Project and Construction Management
of total Credit
•Computer-aided design and drafting units
•Graphic Design
•Architecture Photography
•Social Impact
•Personal/Image Development
•Others

14
 MINIMUM CREDIT UNITS
MAJOR AREA COVERAGE OF THE AREA
REQUIRED (%)

•Sustainable Structures
•Disaster Resilience
ENVIRONMENT •Green Architecture
20%
AND •Renewable Energy
of total credit units
SUSTAINABILITY •Building Conservation
•Heritage Conservation
•Others

•Building Science and Technology

•Energy and Materials
20%
BUILDING •Energy Efficiency
of total credit units
SCIENCE •Building materials
•Acoustics and Lighting
•Others
15
 MINIMUM CREDIT UNITS
MAJOR AREA COVERAGE OF THE AREA
REQUIRED (%)

•Electives or as per choice of

professional 20%
OTHERS
•Maybe in addition to design, practice, of total credit units
building science and environment

16
 For Civil Engineers, pursuant to Resolution No. 07, s. 2017, of the Professional
Regulatory Board of Civil Engineering, the following is the transitory period for
the compliance of their CUs:

Period of Renewal Required Number of CPD Credit Units

June 2017 – February 2018 : 0
March 2018 – December 2018 : 25
January 2019 - Onwards : 45

For SENIOR CITIZENS starting January 2019 Required Number of CPD Credit Units
Aged 60-65 years : 40
66-70 years: 30
Over 70 years : 20

As for PERSONS WITH DISABILITY, the required CPD credit units in a compliance
period shall be thirty (30), starting January 2019.
17
 For Civil Engineers Required CPD POINTS
MAJOR AREA COVERAGE AREA CREDIT UNITS REQUIRED
1. ETHICS 2
2. PROFESSIONAL PRACTICE (E.G. ATTENDANCE TO PRB SPONSORED 4
LAWS,RULES,PRB/COMMISSION ISSUANCES) LEARNING ACTIVITIES

3.ENHANCEMENT OF PROFESSIONAL GENERAL CIVIL ENGINEERING 10

PRACTICE IN CIVIL ENGINEERING PRACTICE

4.ENHANCEMENT OF TECHNICAL CIVIL ENGINEERING PRACTICE IN 27

COMPETENCE IN CHOSEN FIELD OF THE CHOSEN FIELD OF
SPECIALIZATION SPECIALIZATION (CAREER PATH)

5. ENVIRONMENTAL FACTORS AFFECTING AWARENESS OF THE 2

THE PROFESSION (E.G. GENDER AND ENVIRONMENTAL FACTORS
DEVELOPMENT, PERSONALITY AFFECTING THE PROFESSION
DEVELOPMENT)

TOTAL 45
18
The practice of civil engineering :
RA 1582 (544) Civil Engineering Law

DEFINITION OF TERMS; SECTION 2: (a) The practice of civil

engineering within the meaning and intent of this Act
shall embrace services in the form of
• consultation,
• design,
• Preparation of plans,
• specifications,
• estimates,
• erection,

19
installation and supervision of the construction of
streets
bridges,
The practice of civil engineering cont…
highways,
railroads,
airports and
hangars,
port works,
canals, river and shore improvements,
lighthouses, and dry docks;
buildings,
fixed structures for irrigation,
flood protection,
drainage,
water supply and sewerage works;
demolition of permanent structures; and
tunnels.
The enumeration of any work in this section shall not be construed as
excluding any other work requiring civil engineering knowledge and
application. (b) The term “civil engineer” as used in this act/s 20
 Republic Act No. 9266 March 17, 2004
"The Architecture Act of 2004."
ARTICLE 1 : GENERAL PROVISION
SECTION 3 Definition of Terms
(1) "Architecture" is the art, science or profession of planning, designing and constructing
buildings in their totality taking into account their environment, in accordance with the
principles of utility, strength and beauty;
(2) "Architect" means a person professionally and academically qualified, registered and licensed
under this Act with a Certificate of Registration and Professional Identification Card issued by the Professional
Regulatory Board of Architecture and the Professional
(4) "Scope of the Practice of Architecture"
a) planning, architectural designing and structural conceptualization
(b) consultation, consultancy, giving oral or written advice and directions, conferences, evaluations,
investigations, quality surveys, appraisals and adjustments, architectural and operational planning, site
analysis and other pre-design services;
(c) schematic design, design development, contract documents and construction phases including professional
consultancies;
(d) preparation of preliminary, technical, economic and financial feasibility studies of plans, models and
project promotional services
(e) preparation of architectural plans, specifications, bill of materials, cost estimates, general
conditions and bidding documents 21
 Republic Act No. 9266 March 17, 2004
(f) construction and project management, giving general management, administration, supervision, coordination
and responsible direction or the planning, architectural designing, construction, reconstruction, erection,
enlargement or demolition, renovation, repair, orderly removal, remodeling, alteration, preservation or
restoration of buildings or structures or complex buildings, including all their components, sites and environs,
intended for private or public use;
(g) the planning, architectural lay-outing and utilization of spaces within and surrounding such buildings or
structures, housing design and community architecture, architectural interiors and space planning,
architectural detailing, architectural lighting, acoustics, architectural lay-outing of mechanical, electrical,
electronic, sanitary, plumbing, communications and other utility systems, equipment and fixtures;
(h) building programming, building administration, construction arbitration and architectural conservation and
restoration;
(i) all works which relate to the scientific, aesthetic and orderly coordination of all works and branches of the
work, systems and process necessary for the production of a complete building or structure, whether for
public or private use, in order to enhance and safeguard life, health and property and the promotion and
enrichment of the quality of life, the architectural design of engineering structures or any part thereof; and
(j) all other works, projects and activities which require the professional competence of an architect,
including teaching of architectural subjects and architectural computer-aided design;
10 items (a-j) :SCOPE OF GENERAL PRACTICE OF ARCHITECTURE 22
TRIVIA

WHAT IS THE EARLIEST PROFESSION

THAT STARTED DESIGNING &
CONSTRUCTION OF STRUCTURES AND
DESIGN OF CITIES ?

23
➢ By history :ARCHITECTS MAYBE CONSIDERED THE EARLIEST PROFESSION FOR ARCH’AL & ENG’G WORKS

De architectura – Ten Books on Architecture

1.Town planning, architecture or civil engineering in
general, and the qualifications required of
an architect or the civil engineer
2.Building materials
3.Temples and the orders of architecture
4.'continuation of book III'
5.Civil buildings
6.Domestic buildings
7.Pavements and decorative plasterwork
8.Water supplies and aqueducts
9.Sciences influencing architecture –
geometry, measurement, astronomy, sundial
10.Use and construction of machines - Roman siege
engines, water mills, drainage machines, Roman
technology, hoisting, pneumatics
Marcus Vitruvius Pollio (born c.
80–70 BC, died after c. 15 BC) was
a Roman author, architect, civil
engineer and military engineer
known for his multi-volume work
entitled De architectura; that a
structure must exhibit the three
qualities of firmitas, utilitas,
venustas 24
HOW TO JOIN GOVERNMENT BIDDING
GOVERNMENT PROCUREMENT PROCESS

25
 STAGES OF GOVERNMENT PROCUREMENT

Opportunity Compliance Post Qualification- Contract Post-

Bidding
Window Evaluation Implementation Construction

Check PHILGEPS COA Contract Complying

Or NEWSPAPER Review
Publication
Qualified Submit Bid Notice of Award COA Post
Documents Audit
1. Envelope 1
Notice to
Not (Legal & Motion for Construc
Proceed
Qualified Technical Reconsideration tion
(NTP) (AOM) Audit
Component) of Losing Bidder Observation
2. Financial Comp.
Alternative Memorandum
Joint Venture
Options Protest

Resolution Notice of
Others Qualified Disallowance

26
➢ WHY GOVERNMENT PROJECTS
❑ UNLIMITED MARKET POTENTIALS : “UNLI…”
• CONTINUOUS OPPORTUNITY FOR ENTREPRISE : Yearly
Government Appropriations (National Budget) GENERAL
APPROPRIATIONS ACT
• EXECUTIVE BRANCH/LEGISLATIVE BRANCH/JUDICIARY ETC…
❑ WIDE WINDOW OF MARKET SOURCE (Philippine Government Electronic Procurement
System (PHILGEPS) and Newspapers.
• Loan Using Internal Revenue Allotment (IRA)
• Grants (EU ex; Culion Project)
• Combination
❑ Increased Level of Protection: Risk Reduction
• Legal: Representation
• Assured Financial Remuneration
❑ NO FUND NO BIDDING

27
 OPPORTUNITY WINDOW

PhilGEPS Procurement - Dti

1.www.dti.gov.ph › Transparency Seal
Features opportunities and award notices for
suppliers through the Philippine Government
Electronic Procurement System (PHILGEPS).

2. You may Create your own Opportunity

2.1 National/Local Partnerships: PPP or similar windows

GOLDEN RULE:
"He who has the Gold makes the Rules.."
In 1964 the comic strip “Wizard of Id” was
launched with Johnny Hart

28
 The prohibition contained in Sec. 85 of PD 1445
(Government Auditing Code) is explicit and mandatory. Fund
availability is, as it has always been, an indispensable
prerequisite to the execution of any government contract
involving the expenditure of public funds by all
government agencies at all levels. Such contracts are not to
be considered as final or binding unless such a certification as
to fund availability is issued (Letter of Instruction No. 767, s.
1978). Antecedent of advance appropriation is thus essential to
government liability on contracts (Zobel vs. City of Manila, 47
Phil. 169). This contract being violative of the legal
requirements aforequoted, the same contravenes Sec. 85 of
PD 1445 and is null and void by virtue of Sec. 87.
29
➢ PROFIT Guidelines Provided by Law 1.5 Bid Preparation & Submission
DPWH Dept. Order 197 by Sec Mark A. Villar
Mobilization/Demobilization 1% (EDC)
Overhead Expenses (7-11% of EDC) 7-11%
Contingencies (0.5-3.0 %EDC) 0.5-3%
Miscellaneous Expenses 0.5-1%
Contractor's Profit Margin 8% EDC 5 M up
10% EDC 5M and Below
VAT 5% EDC+OCM+Profit
Total Indirect Cost %
INDIRECT COST % for OCM & Profit
Estimated Direct Cost(EDC) FOR OCM & PROFIT
OCM (% OF EDC) PROFIT (% OF EDC)
Up to P5Million 15 10 25
Above P5M up to P50M 12 8 20
Above P50M up to P150M 10 8 18
Above P150M 8 8 16
30
 31
GUIDELINES IN THE PREPARATION OF APPROVED BUDGET CONTRACT-Used by COA in Post Audit
32
➢ WE MAY CONCLUDE GOVERNMENT PROJECTS : A GOOD WINDOW for THE PRACTICE
of ARCHITECTS AND ENGINEERS 33
ELIGIBILITY REQUIREMENTS

34
 How to Join Government Bidding

1 Eligibility Required
YOU MUST BE ELIGIBLE TO BID
Comply with Basic Eligibility Requirement
o LEGAL: Must have a CONTRACTOR’S LICENSE : JOINING AS A CONTRACTOR
R.A. 4566 as amended by P.D. No. 1746 provides that no contractor (including
sub-contractor and specialty contractor) shall engage in the business of
contracting without a PCAB license to conduct business. It is an offense to engage in
contracting business without a license. All architects and engineers preparing
plans and specifications for work to be contracted in the Philippines that,
whether a resident of the Philippines or not, it is necessary for any bidder, whether
contractor, sub-contractor or specialty contractor, to have a license before his bid is
considered. The Contractors License Law (R.A. 4566) is to ensure, the safety of
the public, that only qualified and reliable contractors are allowed to undertake
construction in the country. The law aims to promote for the benefit of the
public and private sectors and for the national interest, the orderly growth of the
contracting sector and the upgrading of construction capability.
o PHILIPPINE CONTRACTOR’S ACCREDITATION BOARD (PCAB) Issues the LICENSE for
Contractors
35
A. LEGAL
A.1. Affidavit of Attestation and General Information (page 3 of 25 and page 5 of 25);
A.1.1. For Sole Proprietorship: Certified true copy of Business Name Registration Certificate;
A.1.2. For Partnership or Corporation: Certified true copy of SEC Certificate of Registration and Articles of
Partnership/Incorporation and By-Laws with construction contracting as one of the purposes and subsequent amendments
thereto, if any;
A.2. PCAB Integrity Pledge;
A.3. Authorized Managing Officer (AMO) Nomination:
A.3.1. AMO Affidavit with a passport size picture of AMO;
A.3.1.1. For Corporations only: Original Corporate Secretary’s certificate as to the nomination of the AMO;
A.3.2. Original NBI clearance of Filipino AMO (valid as of the date of filing);
A.3.3. If AMO is Non-Filipino (in addition to A.3.1):
A.3.3.1. Working Visa
A.3.3.2. Alien Certificate of Registration
A.3.3.3. NBI clearance if AMO has resided in the Philippines for six (6) months or longer if not, equivalent clearance from
AMO’s home country duly authenticated by the Philippine Embassy;
For Corporations or Associations with foreign shareholders, the following documents shall be submitted:
1. Corporate Secretary’s Certification as follows:
a. List of stockholders showing their nationalities and shareholdings; and
b. List of Board of Directors showing their names and nationality.
2. Copy of latest General Information Sheet duly filed with SEC showing the names of stockholders and directors, nationality
and shareholdings.
a. The percentage control of the number of seats occupied by foreigners in the Board of Directors shall not exceed3640%.
PHILGEPS REGISTRATION

Sec. 8.5.2 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.

For foreign bidders participating in the procurement by a Philippine Foreign

Service Office or Post, they shall submit their eligibility documents under Sec.
23.1 of the 2016 IRR of RA 9184.
38
B. FINANCIAL
B.1. Complete Financial Statements with accompanying Auditor’s notes dated within the last six (6) months immediately preceding the filing of
application (duly audited and signed on every page by an Independent CPA with valid PRC-BOA accreditation) and a CD-R (compact disc
recordable) containing the firm’s Audited Balance Sheet & Income Statement in the prescribed template to be uploaded by the CIAP-RID in CIAP
database. The PCAB Financial Statement Forms A & B (A. Balance Sheet / B. Income Statement) can be downloaded at CIAP
website, www.ciap.dti.gov.ph;
B.1.1. For old companies, audited financial statements for the immediately preceding taxable year and copy of the Quarterly or Annual Income Tax
Return certified by the BIR;
B.1.2. Cash: Original copy of Bank Certification/Bank statement of account certified by Bank Manager of cash deposits as of the Balance Sheet
date; (NOTE: Amount in excess of ½ of 1% of the minimum networth required for category applied for or P 50,000.00 whichever is higher,
reflected as “Cash” or “Cash on Hand” shall be deducted from the networth, if unsupported);
B.1.2.1. Authorization to Depository Bank;
B.1.3. List of Land and Building/Industrial Plants owned by the applicant and registered in its name;
B.1.3.1. Certified Copy of Transfer of Certificate of Title (TCT) including back page;
B.1.3.2. Deed of Sale or Certified Copy of Tax Declaration of Land / Building owned by the applicant;
B.1.4. List of Construction and/or Transportation/Delivery Vehicles/Equipment/Machineries/Plants owned by the applicant and registered in its name;
B.1.4.1. Certified Copy by Land Transportation Office (LTO) of Certificate of Registration and Current Official Receipt of Registration of Construction
and/or Transportation/Delivery Vehicles/Equipment reported;
B.1.4.2. Certified Copy of Deed of Sale or sales invoices/official receipts of other construction equipment/machineries;
B.1.5. Documents to be submitted if the values of the applicant’s Receivables and Inventories Accounts exceed more than 50% & 20%,respectively, of
the contractor’s networth, otherwise, the amount in excess of said account shall be deducted for categorization purposes;
B.1.5.1. Schedule of Receivables duly signed by AMO and Certified by the firm’s PRC BOA accredited CPA;
B.1.5.2. Schedule of Inventories duly signed by AMO and Certified by the firm’s PRC BOA accredited CPA;
B.2. Authorization to verify documents from BIR & other agencies and/or quarterly income tax return to cover income reported on interim financial
statements.; 39
C. TECHNICAL
C.1. List of Sustaining Technical Employee/s – STE supported
by the following documents for each STE:
C.1.1. Completion of 40-hour Safety Seminar (COSH) of any of
the listed Sustaining Technical Employees;
C.1.2. STE Affidavit/s with recent passport size picture/s;
C.1.3. Certified true copy of valid PRC ID of STE as licensed
professional;
C.1.4. Original NBI Clearance/s of nominated STE/s;
C.1.5. STE Affidavit/s of Construction Experience;
C.1.6. Personal Appearance Form duly accomplished and
signed by the STE/s appearing before the designated officer of
the PCAB or the nearest DTI regional/provincial office;
C.1.7. Affidavit of No Construction Activity;
C.2. Certificate of DOLE-accredited Safety Practitioner for
Category “AAA” applicants (for additional credit points);
D. GENERAL INFORMATION – fill out GI Sheet
D.1. Membership with SSS, PHILHEALTH & PAG-IBIG;
D.2. Completion of:
D.2.1. 2-day AMO Seminar – to be completed by the AMO
himself whether the firm be sole proprietorship or
corporate/partnership and the like;
D.2.2. 40-hour Safety Seminar (COSH, BOSH with
Construction Safety Components) – to be completed by
the AMO himself in case of sole proprietorships or by any
responsible/senior officer of the corporation/partnership and
the like;
D.3. E-mail Address;
D.4. Certificate of ISO accreditation (for additional credit
points);
40
E. OTHERS
E.1. Accomplished Affidavit for Firm’s Authorized Representatives;
E.1.1. Copy of company ID of the representatives;
E.1.2. Latest CCL – formerly SSS Form R-3 (for below 60 years old) or Certificate of Income Tax
Witheld – BIR Form 2316, formerly BIR W-2 (for 60 years old and above) of the representatives;
E.2. Original signature of AMO on each and every page of the application forms including supporting
documents;
E.3. Certified documents. In lieu of certified copies, photocopies may be accepted provided original
copies are presented for authentication;
E.4. Self-addressed, self-stamped large brown envelope or a prepaid courier pouch for mailing of
license certificate;
E.5. Proof of payment of Prepaid Courier Pouch for mailing of license certificate. Please refer to page
25 of 25 for Bank/Account Number and Freight Rates (optional);
E.6. Documentary Stamp Tax for each original or certified true copy of Contractor’s License (Sections
173 and 188 of the Tax Code of 1997 and Revenue Memorandum Circular No. 36-2012);
E.7. AMO Examination; and
E.8. The Board may require the AMO interview and submission of pertinent documents/information
other than the above in order to fully determine the qualifications of the applicants;
41
PCAB LICENSE FEES

42
 PCAB SAMPLE CLASSIFICATION TABLE-
on Contracting Capacity

6,610 Registered Contractors as of

Aug 2016 INCREASE OF 43.8%
9,511 Registered Contractors as of
December 4, 2017: With Valid License

9,025 Registered Contractors as of

September 2018: With Valid License
DECREASE OF 5.1% 43
PROJECTS WINDOW (OPPORTUNITY
WINDOW)

44
G.A. For 2017 :PhP 3.35 trillion MARKET G.A. for 2018: P 3.767 Trillion
Based on discussions at the Cabinet meeting, the departments to get the highest
allocations are the following:
1.Department of Education, schools, universities, and colleges and Commission on
Higher Education
2.Department of Public Works and Highways
3.Department of the Interior and Local Government
4.Department of Health
5.Department of Agriculture
6.Autonomous Region in Muslim Mindanao
7.Department of Environment and Natural Resources
According to expense class, the allocations are as follows:
•Local government units - 16%= 600 Billion (IRA)
•Government-owned and controlled corporations - 4.5%= 100 Billion
•Infrastructure and capital outlays - 25.4% = 900 Billion
•Personnel services - 29.4%
•Maintenance - 14.5%= 500 Billion
•Debt burden - 9.8%
45
• Prospect LGU Projects Using Internal Revenue Allotment (IRA) for Enterprising :
(81 Provinces, 149 Cities, 1,489 Municipalities-Dec 2015 as issued by DILG SECRETARY

46
• Prospect LGU Projects Using Internal Revenue Allotment YEARLY
FUNDING

47
G.A.A.For 2017 :PhP 3.35 trillion MARKET G.A.A. for 2018: P 3.767 Trillion

48
49
50
51
52
53
54
55
SAMPLE INFRASTRUCTURE under : STATE UNIVERSITIES CATEGORY

56
SAMPLE OTHER INFRASTRUCTURE: LOCAL GOVERNMENT UNITS (LGU’s) THRU NATIONAL AGENCIES

57
SAMPLE PHILGEPS POSTING OF
GOVERNMENT NEEDS

58
1.4 Projects window PHILGEPS
PROJECTS FOR BIDDING PHILGEPS SAMPLE POSTING

59
PHILGEPS SAMPLE POSTING

60
PHILGEPS SAMPLE POSTING
61
PHILGEPS SAMPLE POSTING
62
PHILGEPS SAMPLE POSTING

63
PROCUREMENT THRU PUBLIC
BIDDING

64
REPUBLIC ACT NO. 9184, OTHERWISE KNOWN AS THE GOVERNMENT PROCUREMENT
REFORM ACT
NO CONTRACT
SHALL BE
American Practice ENTERED INTO
of Public Bidding CONTRACTS
WITHOUT
was introduced in
INVITATION TO PUBLIC
the Philippines on
1900
BID
BIDDING
LOWEST
RESPONSIVE
BIDDER

PHILIPPINE PUBLIC
PROCUREMENT
65
 ❑ PROCUREMENT IS PROVIDED BY LAW : R.A. 9184
• AN ACT PROVIDING FOR THE MODERNIZATION, STANDARDIZATION AND REGULATION OF THE
PROCUREMENT ACTIVITIES OF THE GOVERNMENT AND FOR OTHER PURPOSES
EQUAL OPPORTUNITY
TO ALL defying
Social Class
• Sec. 3 Governing Principles item (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.

66
SCOPE AND COVERAGE
R.A. 9184 applies to all branches and/or instrumentalities of the
government:

1. National Government Agencies (NGAs)

2. State Universities and Colleges (SUCs)
3. Government Owned or Controlled Corporations (GOCCs)
4. Government Financial Institutions (GFIs)
5. Local Government Units (LGUs)

67
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;

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;

68
EXCEPT:
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;

4. Disposal of government properties;

❖Commission on Audit Circular No. 86-264
❖DBM National Budget Circular No. 425

69
 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:
1.repair and maintenance of equipment and furniture
2.trucking, hauling, janitorial and security and other related and analogous services.

Except: Infrastructure projects and consulting services

70
 INFRASTRUCTURE PROJECTS
Refer to:
❖construction, improvement, demolition, rehabilitation, repair,
restoration or maintenance of civil works components of :
1.IT projects
2.irrigation
3.flood control and drainage
4.water supply
5.sanitation, sewerage and solid waste management
6.national buildings, hospital buildings, and other related
constructions projects of the Government.

71
 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.

72
PROCUREMENT METHODS

73
 PROCUREMENT METHODS

All Procurement shall be done through competitive bidding except as provided in

R.A. 9184.

Resort to alternative methods shall be made:

❖ Only in highly exceptional cases

❖ To promote economy and efficiency

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

74
 ITEM ARCHITECTS IN CONSULTANCY
75
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
ANNEX “B” GENERAL PRINCIPLES ON
CONSULTING SERVICES : RA 9184
6. Types of Consulting Services
(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.
ALTERNATIVE TYPE OF ENGAGEMENT
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.
Section 53. Negotiated Procurement
53.7. Highly Technical Consultants. In the case of individual
consultants hired to do work that is
(i) highly technical or proprietary; or
(ii) (ii) primarily confidential or policy 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
HoPE, but in no case shall exceed the term of the latter.
 2.COST OF BID DOCUMENTS
PURCHASE OF BID DOCUMENTS

76
 REFERENCE TO BRAND NAMES

Sec. 18 of RA 9184 and its IRR

❖ The prohibition applies to the procurement of goods,
and goods component of Infrastructure Projects and
Consulting Services.

❖ Specifications should be based on relevant

characteristics, functionality and performance
requirements, except for items or parts that are compatible
with the existing fleet or equipment of the same make and
brand, and to maintain the performance, functionality and
useful life of the equipment.

77
 REFERENCE TO BRAND NAMES

❖ Prohibition includes reference to country of origin

pursuant to Sec. 43.1.1 of the IRR of RA 9184.
- PEs are precluded from requiring specific country of
origin as part of the technical specifications for the
project.
- Specifications shall be based on the performance
requirements and recognized industry standards and
not on the basis of country of origin.

NPM 22-2013

78
EARLIEST & MAXIMUM PROCUREMENT DURATION

There is a
Bid Duration

79
MAKING SURE THAT PROCUREMENT SYSTEM IS DYNAMIC AND RELEVANT
Government Procurement Policy Board (GPPB)
was established by virtue of Republic Act No. 9184
(R.A. 9184) as an independent inter-agency body
that is impartial, transparent and effective, with
private sector representation. As established in
Section 63 of R.A. 9184,

80
 GPPB FUNCTIONS

Monitoring
Policy-Making

Capacity
• Amend implementing • Ensure the proper
rules & regulations of
Development implementation by
procurement law PEs of the Act, this
(quasi-legislative IRR and all other
function)
• Establish a relevant rules and
• Prepare generic regulations on public
procurement manual sustainable
procurement
and standard bidding training
forms • Review effectiveness
program of procurement law
• Protect national interest in all matters affecting public procurement,
having due regard to the country’s regional and international obligations
81
GOVERNMENT PROCUREMENT
POLICY BOARD (GPPB)

▪ Composed of the following:

➢ Chairman: DBM Secretary

➢ Alternate Chairman: NEDA Director-
General
➢ 11 Regular Members – Secretaries of
DPWH, DTI, DOH, DND, DepEd, DILG,
DOST, DOTC, DOE, DOF & DICT (Per RA
10844), or their duly authorized
representatives; Private Sector
Representative
➢ Invited Resource Persons (audit, anti-
corruption agencies)
82
 COMPETITIVE BIDDING

WHAT IS COMPETITIVE BIDDING?

It is 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. (Section 5(h), IRR of
RA 9184)

84
 IS ACCREDITATION REQUIRED

Municipal Order requiring an accreditation process for

Bidders as a condition precedent for their participation in
procurement activities of the local government unit runs
counter RA 9184 and its IRR as it would limit the
participation of bidders only to those accredited suppliers,
to the exclusion and prejudice of other bidders in the
market, it in fact contravenes the very basic principles of
competitive bidding.

NPM 80-2014

85
PROCUREMENT ORGANIZATIONS

86
PROCUREMENT ORGANIZATIONS

❖ Head of the Procuring Entity (HOPE)

❖ Bids and Awards Committee (BAC)
❖ BAC Secretariat
❖ Technical Working Group (TWG)
❖ Observers

87
 HEAD OF PROCURING ENTITY (HOPE)

Refers to:
❖Head of the agency or body, or his duly authorized official, for NGAs and the
constitutional commissions or offices, and other branches of government;
❖Governing Board or its duly authorized official, for GOCCs, GFIs and SUCs; or
❖Local Chief Executive, for LGUs

Note: In an agency, department, or office where the procurement is decentralized,

the head of each decentralized unit shall be considered as the HoPE, subject to
the limitations and authority delegated by the head of the agency, department,
or office

88
 HEAD OF PROCURING ENTITY (HOPE)

FUNCTIONS AND RESPONSIBILITIES:

1. Establishes BAC and appoints its members
❖ Ensures that BAC members give their utmost priority to duties
❖ Ensures professionalization of members of the procurement organization
Within six (6) months upon designation, the BAC, its Secretariat and TWG members should
have satisfactorily completed such training or program conducted, authorized or accredited
by the GPPB through its TSO. (Sec. 16, 2016 IRR of RA 9184)

89
HEAD OF PROCURING ENTITY (HOPE)

2. Approves the Annual Procurement Plan (APP)

3. Approves/Disapproves the Contract Award
4. Resolves Protests

90
 BIDS AND AWARDS COMMITTEE (BAC)

As a general rule, HOPE must create a single BAC. However, separate BACs may be
created under any of the following conditions:

1. The items to be procured are complex or specialized;

2. If the single BAC cannot reasonably manage the procurement transactions as
shown by delays beyond the allowable limits; or
3. If the creation is required according to the nature of the procurement.

93
BIDS AND AWARDS COMMITTEE (BAC)

FUNCTIONS AND RESPONSIBILITIES:

❖Recommends Procurement Method

❖Creates a Technical Working Group (TWG)
❖Conducts the bidding activities
❖Resolves Requests for Reconsideration
❖Recommends Imposition of Sanctions
❖Invites Observers during all stages of the procurement process
❖Conducts due diligence review or verifications of the
qualifications of observers
❖Prepares Procurement Monitoring Report

95
BIDS AND AWARDS COMMITTEE (BAC)

FUNCTIONS AND RESPONSIBILITIES:

❖Advertise and/or post the IB/REI

❖Conduct pre-procurement and pre-bid conferences;
❖Determine the eligibility of prospective bidders;
❖Receive and open bids;
❖Conduct the evaluation of bids;
❖Undertake post-qualification proceedings;
❖Recommend award of contracts to the HoPE or his duly
authorized representative;
❖Recommend to the HoPE the use of Alternative Methods of
Procurement

96
BIDS AND AWARDS COMMITTEE (BAC)

FUNCTIONS AND RESPONSIBILITIES:

❖Conduct any of the Alternative Methods of Procurement;

❖Conduct periodic assessment of the procurement processes
and procedures
❖Perform such other related functions as may be necessary

(Sec. 12.1, 2016 IRR of RA 9184)

97
BIDS AND AWARDS COMMITTEE (BAC)

MEMBERSHIP AND QUALIFICATIONS:

❖BAC members should occupy plantilla positions with the

procuring entity concerned.

❖All members are regular members except the end-user

member who is considered as a provisional member. The
members, whether regular or provisional, are equally entitled
to participate and to vote during deliberations.

98
BIDS AND AWARDS COMMITTEE (BAC)

COMPOSITION: 5 but not more than 7 MEMBERS designated by

the HOPE

1. Regular Members:
❖Chairperson (3rd Ranking Permanent Official);
❖Member representing the Legal or Administrative areas
(5th Ranking Permanent Personnel); or if not available, an
officer of the next lower rank;
❖Member representing the Finance Area (5th Ranking
Permanent Personnel); or if not available, an officer of
the next lower rank;

99
BIDS AND AWARDS COMMITTEE (BAC)

COMPOSITION: 5 but not more than 7 MEMBERS designated by

the HOPE

2. Provisional Members
❖ Officer possessing Technical expertise relevant to the
procurement.
❖ End user unit Representative. In case of procurement
outsourcing, a representative from the Procuring Entity
may be designated as a provisional member

100
BIDS AND AWARDS COMMITTEE (BAC)

TERMS OF MEMBERSHIP:

The BAC members shall be designated for a term of one (1) year
only, reckoned from the date of designation. However, the HOPE
may renew or terminate such designation at his discretion.

Upon expiration of the terms of the current members, they shall

continue to exercise their functions until new BAC members are
designated.

108
BIDS AND AWARDS COMMITTEE (BAC)

TERMS OF MEMBERSHIP:

In case of resignation, retirement, separation, transfer, re-

assignment, or removal of a BAC member, the HOPE shall
designate a replacement that has similar qualifications as the
official replaced. The replacement shall serve for the unexpired
term. In case of leave or suspension, the replacement shall
serve only for the duration of the leave or suspension.

109
PROHIBITED BAC MEMBERS

1. Head of the Procuring Entity

2. Official who approves procurement contracts;

3. Chief Accountant or Head of the Provincial/City/Municipal

Accounting Office and his/her staff, unless the Accounting
Department is the end-user unit, in which case the Chief
Accountant, Head of the Accounting Department or his/her
staff may be designated as an end-user member. (COA
Circular Letter No. 2004 – 3)

110
BAC SECRETARIAT

❖HOPE may create a new office or designate an existing

organic office to act as BAC Secretariat

In case of ad hoc BAC Secretariat, the HOPE shall assign full-

time support staff in its BAC Secretariat (Sec. 14.2)

❖There is no minimum or maximum number of members of

the BAC Secretariat.

❖Head of the BAC Secretariat must be at least a 5th or 3rd

ranking permanent employee or, if not available, a
permanent official of the next lower rank

111
BAC SECRETARIAT

FUNCTIONS:
❖Provide administrative support to the BAC and TWG
❖Organize BAC and TWG meetings and conferences
❖Take custody of procurement documents and other records
❖Manage the sale and distribution of bidding documents
❖Advertise/post bidding opportunities, including Bidding
Documents, and notices of awards
❖Assist in managing the procurement process
❖Monitor procurement activities and milestones
❖Consolidate PPMPs
❖Act as central channel of communications
❖Prepare minutes of meetings and resolutions of the BAC

112
BIDDING PROCESS FOR
GOODS & INFRA PROJECTS

Advertisement
Pre-
and/or Pre-Bid
Procurement
Conference Posting Conference

Opening of
Opening of
Bid Submission Technical Proposal
Financial Proposal
(incl. eligibility docs)

Contract
Bid Evaluation Post-qualification Award

113
BIDDING PROCESS FOR
CONSULTING SERVICES
Advertisement
Pre-
and/or Eligibility and
Procurement
Conference Posting Shortlisting

Opening of
Pre-Bid Bid Submission Bids
Conference (QBE or QCBE)

Post-qualification Contract
Bid Evaluation
Award
(QBE or QCBE)
Negotiation

114
 I. PRE-PROCUREMENT CONFERENCE

❖ Purpose: Determine the readiness of the procurement

❖ Conducted prior to advertisement/posting of the

Invitation to Bid

❖ Mandatory for projects with ABC above PhP 2M (goods)

or 5M (infra projects)

❖ Attended by the following:

a) BAC
b) BAC Secretariat
c) TWG
d) Consultants
e) End-user unit/Other officials
115
II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID
Importance:

❖ Signals the start of the bidding process.

❖ Signals the availability of the bidding documents to the

prospective bidders. (if not mentioned in the Invitation
to Bid) (Sec. 17.3, IRR of RA 9184)

116
 II. ADVERTISEMENT & POSTING OF
THE INVITATION TO BID
❖ At least once in one (1) newspaper of general nationwide
circulation, which has been regularly published for at
least two (2) years before advertisement date.

❖ Not required for projects with ABC of 2M 10M and

below for Goods or 5M 15M and below for
Infrastructure Projects. (Sec. 21.2.1(c), 2016 IRR of RA
9184)

Two (2) years after the effectivity of the IRR,

advertisement shall no longer be required unless the PE
cannot post its opportunities in the PhilGEPS for justifiable
reasons.
117
II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID

❖ Posted continuously for 7 calendar days (cd):

1. PhilGEPS;
2. Website of the PE, if any;
3. Website of IFI, if applicable; and
4. At any conspicuous place in the premises of the
PE.

118
II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID
2M 10M for
Above 2M 10M for
Goods/ 5M 15M
Medium Goods/
for Infra
5M 15M for Infra
and below
Newspaper of General Nationwide
 
Circulation
PhilGEPS website  
PE’s Website, if available  
Conspicuous Place  
Website prescribed by the foreign
government/foreign or international
funding institution, in case of foreign  
funded procurement

119
 III. PRE-BID CONFERENCE
❖ May be held at least 30 cd before the deadline for the
submission and receipt of bids considering the
following:

a) Method, nature, and complexity of contract

b) International participation is more advantageous

❖ The pre-bid conference shall discuss, clarify and

explain, among other things, the eligibility requirements
and the technical and financial components of the
contract to be bid including questions and clarifications
raised by the prospective bidders before and during the
Pre-Bid Conference. (Sec. 22.3, IRR of RA 9184)
120
 III. PRE-BID CONFERENCE

❖ Pre-bid conference may be conducted in person or face-to-

face through videoconferencing, webcasting, or similar
technology, or a combination thereof.

❖ PEs with videoconferencing capabilities that have

manufacturers, suppliers, distributors, contractors and/or
consultants that also have videoconferencing capabilities may
conduct their pre-bidding conferences electronically.

121
 III. PRE-BID CONFERENCE

❖ Section 22 affords bidders the opportunity to raise

concerns or clarifications on the requirements, terms,
conditions, and specifications stipulated in the bidding
documents for the contract to be bid.

❖ Questions or clarifications pertaining to the matters that

may be discussed during the pre-bid conference must
be raised at least ten (10) cd before the deadline set for
the submission and receipt of bids.

NPM 49-2013

122
 CLARIFICATION OF BIDDING
DOCUMENTS
❖ Supplemental/Bid Bulletins– issued by BAC to answer
requests for clarification (query submitted 10 cd before
deadline) or interpretation, and upon BAC’s initiative to
clarify or modify any provision of Bidding Docs. (at least
7 cd before deadline for bids).

❖ Posted in PhilGEPS and PE’s website, and at any

conspicuous place within the premises of the Procuring Entity.
(Sec. 22.5.3, 2016 IRR of RA 9184)

❖ Bidders who have submitted bids before issuance of

Supplemental/Bid Bulletin must be informed in writing
and allowed to modify or withdraw their respective bids
123
 ADDITIONAL REQUIREMENTS

❖ PE cannot compel prospective bidders or the winning bidder to

submit or comply with requirements not initially provided in the
Bidding Documents or through any Supplemental/Bid Bulletin
issued by the PE for the project that must be posted at the
PhilGEPS’ and the PE’s website.

❖ If no Supplemental/Bid Bulletin is issued to reflect changes in the

Bidding Documents, or even if the same was issued but not posted
at the PhilGEPS ’ and PE ’ s websites, the original provisions
contained in the Bidding Documents remain and the prospective
bidder, including the winning bidder cannot be compelled to abide
or comply with the changes made by the PE.

NPM 24-2013
124
 IV. SUBMISSION AND
RECEIPT OF BIDS

❖ 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. (Sec. 29, 2016 revised IRR)

125
 IV. SUBMISSION AND
RECEIPT OF BIDS
Re-scheduling of bid opening:

• In case the bids cannot be opened as scheduled due to

justifiable reasons, the BAC shall take custody of the bids
submitted and reschedule the opening of bids on the next
working day or at the soonest possible time through the
issuance of a Notice of Postponement to be posted in the
PhilGEPS website and the website of the PE (Sec. 29, 2016
IRR of RA 9184)

126
 IV. SUBMISSION AND
RECEIPT OF BIDS
❖ Two-Envelope System
 1st Envelope – Eligibility Requirements and Technical Component
 2nd Envelope – Financial Component

❖ Submitted to the BAC on the date, time, and place specified in the
Invitation to Bid. Bids submitted after the deadline should not be accepted.

❖ Date of submission should not be later than the following period from the
last day of posting of the Invitation to Bid (Sec. 25.4) (Sec. 25.5, 2016 IRR of
RA 9184)

Category Maximum Period (cd)

Goods 45
Infra (50M and below) 50
Infra (above 50M) 65

127
 IV. SUBMISSION AND
RECEIPT OF BIDS
Letter of Intent – not an eligibility requirement

❖ Bidders are no longer required to submit a written LOI

together with their application for eligibility as previously
required in IRR Part A of RA 9184.
NPM 101-2013

❖ Bidders only have to submit their bids not later than the
deadline for the submission and receipt of bids, which can be
extended or rescheduled together with the opening of bids as
provided in Section 29 of the IRR of RA 9184.
NPM 55-2013

128
 IV. SUBMISSION AND
RECEIPT OF BIDS
Pre-qualification – not an eligibility requirement

The practice of pre-qualification has been abandoned in RA

9184 and its IRR. The results of a pre-qualification have no
legal force and effect, bearing or weight, and cannot preempt
the findings of the BAC during the preliminary examination of
bids conducted during the opening of bids. Hence, a bidder may
still be declared ineligible during the opening of bids despite a
finding of qualification during the purported pre-qualification
exercise.

NPM 54-2013

129
Is a single Bidder Allowed?
Section 36. Single Calculated/Rated and Responsive Bid
Submission
A Single Calculated and Responsive Bid (SCRB) or a Single Rated
and Responsive Bid (SRRB) shall be considered for award if it
falls under any of the following circumstances:
a) If after advertisement, only one prospective bidder applies for eligibility check, and it
meets the eligibility requirements or criteria, which is found to be responsive to the bidding
requirements;
b) If after advertisement, more than one prospective bidder 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 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.

130
 V. OPENING AND EVALUATION OF
1ST ENVELOPE
CONTENTS:
1. Eligibility requirements (Legal, Technical and Financial)
2. Bid Security
3. Technical specifications (Goods) / Project requirements
(Infra)
4. Omnibus sworn statement (New Form, Sec. 25.3, 2016 IRR)
❖ Non-inclusion in blacklist ❖ Responsibilities of bidders
❖ Authenticity of documents ❖ Labor laws and standards
❖ Verification authority ❖ Non-payment (directly or
❖ Signatory’s authority indirectly) any commission,
amount, fee, or any form of
❖ Disclosure of relations consideration in relation to any
procurement project or activity

131
 V. OPENING AND EVALUATION OF
1ST ENVELOPE
❖ Section 30 requires that the preliminary examination of
bids be conducted by merely checking for the presence
or absence of documentary requirements using a non-
discretionary “pass/fail” criterion.

❖ However, the BAC has the right to review the

qualifications of a bidder during the same stage if it
has reasonable grounds to believe that a
misrepresentation has been made or there has been
changes in the bidder’s capability to undertake the
project.

NPM 54-2013
132
 V. OPENING AND EVALUATION OF
1ST ENVELOPE

Re-considered Bid: Request for Reconsideration granted

BAC should open a reconsidered bid under the same

circumstances as it opened the bids that were not
disqualified, i.e., upon a duly scheduled opening of bid
with proper notices to the concerned entities.

NPM 69-2013

133
 V. OPENING AND EVALUATION OF
1ST ENVELOPE

To ensure transparency and accurate representation of the bid

submission, the BAC Secretariat shall notify in writing all
bidders whose bids it has received through its PhilGEPS-
registered physical address or official e-mail address. The
notice shall be issued within seven (7) cd from the date of the bid
opening. (Sec. 25.7, 2016 IRR of RA 9184)

134
 V. OPENING AND EVALUATION OF
1ST ENVELOPE

❖ Original copy of bid form shall be typed or written in ink

and shall be signed by the bidder or its duly authorized
representative (Sec. 25.8, 2016 IRR of RA 9184)

❖ Unsealed or unmarked bid envelopes shall be rejected.

However, bid envelopes that are not properly sealed and
marked, as required in the Bidding Documents, shall be
accepted, provided that the bidder or its duly authorized
representative shall acknowledge such condition of the bid as
submitted. The BAC shall assume no responsibility for the
misplacement of the contents of the improperly sealed or marked
bid, or for its premature opening. (Sec. 25.9, 2016 IRR of RA
9184)
135
 BID SECURITY

❖ Only 1 form of Bid Security is required to be submitted

❖ In general, bank issued securities must be issued by a

universal or commercial bank

 However, in biddings conducted by LGUs, securities

may be issued by banks certified by BSP as
authorized to issue said instruments
❖ Surety Bonds must be accompanied by certification
from Insurance Commission that issuer is authorized to
issue such security

❖ Bidders have the option to choose their preferred form of bid

security (Sec. 27.2, 2016 IRR of RA 9184)
136
 BID SECURITY

❖ Bid securities shall be returned only after the bidder

with the Lowest Calculated Responsive Bid 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
request for reconsideration and/or protest.

137
 BID SECURING DECLARATION

Bid Securing Declaration

❖ an additional form of bid security

❖ A document/undertaking signed by the bidder

committing to pay the corresponding fine and be
suspended for a period of time from being qualified
to participate in any government activity in the event
of violation of any of the conditions stated therein as
required by the GPPB Guidelines. (GPPB Resolution
No. 03-2012, 27 January 2012)

138
 BID SECURITY

Amount
Form of Bid Security Bid Security
(% = ABC)
a) Cash or cashier’s/manager’s check

b) Bank guarantee/draft or 2%
Irrevocable LC
c) Surety bond callable upon
5%
demand
d) Combination of the foregoing Proportionate to share of form
with respect to the total amount of
security
e) Bid Securing Declaration No percentage required

139
 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.

140
 DISCLOSURE OF RELATIONS

Relatives within the third civil degree, by affinity or

consanguinity of the following shall be disqualified:

❖ Head of the procuring entity

❖ Members of the BAC, Secretariat and TWG
❖ Head of the end-user unit or project management
office or implementing unit
❖ Project consultants

141
 ELIGIBILITY REQUIREMENTS

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.
145
 ELIGIBILITY REQUIREMENTS

❖ GPPB Circular 03-2016, dated 27 October 2016

The implementation of the mandatory submission of PhilGEPS Certificate

of Registration and Membership under Platinum category for Competitive
Bidding has been deferred to May 1, 2017. From 28 October 2016 until
30 April 2017, bidders may still submit their Class “A” Eligibility
Documents under Sections 23.1(a) and 24.1(a).

❖ GPPB Circular No. 07-2017, dated 18 August 2017

The mandatory submission of PhilGEPS Certificate of Registration and

Membership under Platinum catergory has been deferred starting 04
September 2017, bidders may still submit their Class “A” Eligibility
Documents under Sections 23.1(a) and 24.1(a)

146
 ELIGIBILITY REQUIREMENTS

Requirements Under 2016 IRR of RA 9184

GOODS INFRASTRUCTURE
Class A Documents
LEGAL:
1. PhilGEPS Certificate of Registration 1. PhilGEPS Certificate of Registration
and Membership (Also represents AFS in and Membership (Also represents AFS
addition to legal documents) and 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
3. PCAB License (For JV)
FINANCIAL:
1. NFCC computation or committed Line 1. NFCC
of Credit
148
 ELIGIBILITY REQUIREMENTS

GOODS INFRASTRUCTURE
Class B Document
JVA or notarized statement from In case of JV, JVA entered into by
the partners that they will enter the parties.
into joint venture if awarded the
contract.

149
 MAYOR’S PERMIT

❖ Mayor’s Permit allows an entity to legally perform the

requirements and obligations of the project and the
resultant contract.

❖ Recently expired Mayor’s/Business permit shall be

accepted together with the official receipt as proof that
the bidder has applied for renewal within the period
prescribed by the concerned local government unit:
Provided, that the renewed permit shall be submitted as
a post-qualification requirement in accordance with Sec.
34.2 of the 2016 IRR of RA 9184

150
 TAX CLEARANCE

❖ EO 398 requires that a bidder should not have any tax

liability with the government from the time of
submission of its bid up to the time of contract award.

❖ In the event that the submitted Tax Clearance expires

prior to award of contract, the bidder is obligated to
renew and update its Tax Clearance.

NPM 02-2016

152
 TAX CLEARANCE

❖ Submission of BIR receipt for renewal of Tax

Clearance will not suffice in lieu of a valid Tax
Clearance Requirement since substitution is not allowed
under Section 34.2 of the IRR of RA 9184.

❖ Submission of Provisionary Tax Clearance issued by the

BIR for bidding purposes is not acceptable form of Tax
Clearance. (GPPB Resolution No. 01-2014)

153
 COMMITTED LINE OF CREDIT

❖ In the case of procurement of Goods, a bidder may opt to

submit a committed Line of Credit (CLC) from a universal or
commercial bank, in lieu of its NFCC computation. (Sec. 23.1
(a) (viii), 2016 IRR of RA 9184)

❖ CLC does not apply to procurement of Infrastructure

Projects.

❖ If the bidder submits a CLC, it must be at least equal to ten

percent (10%) of the ABC to be bid: Provided, that if the same
is issued by a foreign Universal or Commercial Bank, it shall be
confirmed or authenticated by a local Universal or Commercial
Bank. (ITB 5.5)
155
 NET FINANCIAL CONTRACTING
CAPACITY (NFCC)

❖ For goods and infrastructure projects, the NFCC’s K factor

shall be fixed at 15, regardless of contract duration

❖ The values of the domestic bidder’s current assets and current

liabilities shall be based on the latest Audited Financial
Statements submitted to the BIR .

❖ For purposes of computing the foreign bidder’s NFCC, the

value of the current assets and current liabilities shall be based
on their Audited Financial Statements prepared in
accordance with international financial reporting
standards.
156
 STATEMENT OF ALL ONGOING
GOVERNMENT AND PRIVATE
CONTRACTS

❖ 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. (Sec. 23.1(a)(iv), IRR of RA 9184)

157
 STATEMENT OF SINGLE LARGEST AND
COMPLETED CONTRACT

❖ For the procurement of Goods, the statement identifying

the bidder’s single largest completed contract similar to
the contract to be bid, except under conditions provided
for in Section 23.4.1.3 of this IRR, must be within the
relevant period as provided in the Bidding Documents.

158
 STATEMENT OF SINGLE LARGEST AND
COMPLETED CONTRACT
Exception to the submission of SLCC – to be determined
by the BAC:

If, at the outset and after conducting market research, the

Procuring Entity can already determine that requiring SLCC
will likely result to:
(a) failure of bidding, or
(b) monopoly that will defeat the purpose of competitive
bidding, the Procuring Entity, in lieu of the SLCC, may
require the following:

159
 STATEMENT OF SINGLE LARGEST AND
COMPLETED CONTRACT
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.

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.
160
 PCAB LICENSE

❖ A valid PCAB license required as an eligibility requirement

for the procurement of infrastructure projects should be
valid at the time of the deadline for the submission and
opening of bids.

❖ The submission of a PCAB license with validity period after

the date of the opening of the bids is a ground for the
prospective bidder’s disqualification. (NPM 71-2013)

❖ As such, the submission of a PCAB License and Registration

cannot be dispensed within the procurement of infrastructure
projects. (NPM 126-2014)

161
 ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES
INFRASTRUCTURE
GOODS
PROJECTS
WITH AN EXISTING JOINT VENTURE: JV bidders shall submit a
submission of a valid joint venture JVA in accordance with
R.A. 4566 and its IRR.
agreement
WITHOUT AN EXISTING JOINT *Submission of a duly
notarized statement is
VENTURE: submission by each of the not applicable.
potential JV members of a duly notarized
statement stating that they will enter into
and abide by the provisions of the joint
venture in case their bid is successful.
Failure to enter into a joint venture in the event
of a contract award shall be ground for the
forfeiture of the bid security. (Sec. 23.1(b),
2016 IRR of RA 9184)
162
 ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES

SUBMISSION OF ELIGIBILITY REQUIREMENTS:

❖ All co-venturers shall submit their legal documents,

while any of the co-venturers shall submit technical and
financial documents.

❖ Each partner of the joint venture shall submit the PhilGEPS

Certificate of Registration in accordance with Sec. 8.5.2 of the
2016 IRR of RA 9184.

163
 LEGAL ELIGIBILITY CRITERIA
GOODS
• General rule: 60% Filipino
• Foreign bidder allowed if:
1) Stated in treaty or international or
executive 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
INFRASTRUCTURE
• General rule: 75% Filipino
• Foreign contractors allowed if stated
in treaty or international or executive
agreement
• 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
165
 TECHNICAL ELIGIBILITY CRITERIA

GOODS - SINGLE LARGEST COMPLETED

CONTRACT

❖ Previous contract
❖ Similar to the contract to be bid out (as defined by the
Bidding Documents)
❖ Completed within a period as defined in the Bidding
Documents
❖ 25% of the ABC (expendable supplies)
❖ 50% of the ABC (non-expendable supplies)
- Based on the value of the previous completed
contract, as adjusted to current prices using the NSO
PSA consumer price index.

166
 TECHNICAL ELIGIBILITY CRITERIA

INFRASTRUCTURE PROJECTS – SINGLE LARGEST

COMPLETED CONTRACT

❖ Previous contract
❖ Similar to the contract to be bid, except under conditions
provided for in Sec. 23.4.2.4 of the IRR
❖ 50% of the ABC
- Based on the value of the previous completed
contract, as adjusted to current prices using the NSO
PSA consumer price index.
❖ For foreign funded procurement, a different track record
may be agreed upon

167
 TECHNICAL ELIGIBILITY CRITERIA

INFRASTRUCTURE PROJECTS – SINGLE LARGEST

CONTRACT

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.

168
 TECHNICAL ELIGIBILITY CRITERIA

Track Record: Sole Proprietor

Construction experience/track record of a sole proprietor,

cannot be carried over to a corporation despite the fact
that the sole proprietor ’ s assets, personnel and other
resources have been infused into the corporation inasmuch
as the latter has a separate and distinct juridical personality
from the former.

NPM 31-2013

169
 FINANCIAL ELIGIBILITY CRITERIA

FOR GOODS AND INFRASTRUCTURE PROJECTS:

❖ Audited Financial Statement (showing prospective

bidder’s total and current assets and liabilities. )
❖ NFCC or CLC for Goods, and NFCC for Infra is at
least equal to ABC.

170
 VI. OPENING AND EVALUATION OF
2ND ENVELOPE

CONTENTS:

1. Financial Bid Form (includes bid prices and bill of

quantities, as well as applicable price schedules)
2. In case of Goods, Certification from the DTI if
claiming preference as Domestic Bidder (RA 10667)
3. Other documents required in the bidding
documents

NOTE: Only the 2nd envelope of eligible bidders whose

1st envelope have been rated “passed” shall be opened.

173
VII. DETAILED EVALUATION
OF BIDS

174
 VII. DETAILED EVALUATION
OF BIDS
❖ Purpose is to determine the Lowest Calculated Bid
(LCB), by:
1. Establishing correct calculated prices of bids; and
2. Ranking calculated total bid prices from lowest to
highest

❖ A non-discretionary criterion shall be used, which shall

include consideration of:
1. Completeness of bids; and
2. Minor arithmetical corrections

175
 VII. DETAILED EVALUATION
OF BIDS
❖ No Contact Rule - prohibition on communication w/ bidders
from bid evaluation until award of contract.

❖ The “no contact” rule applies only to those whose bids are being
evaluated by the BAC after passing the preliminary examination
until the issuance of Notice of Award.

❖ No communication should be made by bidders until a decision

to award a contract is made by the BAC.

❖ Bidders who waived their right to utilize the protest mechanism

or those whose request for reconsideration and/or protest were
subsequently denied are not covered by the prohibition under
Sec. 32.1 of RA 9184 IRR. (NPM 07-2013)
176
 VII. DETAILED EVALUATION
OF BIDS

❖ Unless the ITB specifically allows partial bids, those not

providing all required items shall be considered non-
responsive

❖ Placing no price is considered as non-responsive

❖ Specifying a “0” or “-” means it is offered for free

177
 DOMESTIC PREFERENCE

❖ Applicable only for GOODS

❖ Applies where the lowest bid has a foreign component

(foreign bid/entity) and the next lowest bid has a
domestic component (domestic bidder/entity)

❖ Requires procuring entity to give preference to domestic

bidder PROVIDED that:

1. The lowest foreign bid is increased by 15%; and

2. The lowest domestic bidder matches the lowest bid
of the foreign bidder

178
PROTESTS

179
RULE XVII – PROTEST MECHANISM
Section 55. Protests on Decisions of the BAC
55.1. 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. The bidder shall
not be allowed to submit additional documents to correct any defects
in the bid submitted.

180
 MOTION FOR RECONSIDERATION

Decisions of the BAC at any stage of the procurement process may be

questioned by filing a request for reconsideration

If RR is DENIED,
Filing of Request for
BAC Resolution on the decision of the BAC
Reconsideration
RR may be protested in
(3) calendar days upon
Within seven (7) calendar writing (Verified
receipt of written notice or
days from receipt of RR Position Paper) to the
upon verbal notification
HOPE

Provided:
1. That a prior request for
reconsideration should have been
filed by the party concerned in
accordance with the preceding
Section, and
2. Request for reconsideration has
been resolved.
181
 DENIED REQUEST FOR
CONSIDERATION

Denied Request for Protest must be HOPE shall resolve

Reconsideration filed within 7 the protest within 7
calendar days from calendar days from
receipt by the party receipt thereof
concerned of the
resolution of the
BAC denying its
request for
reconsideration. Head of BAC Sec
shall furnish a copy
of the decision
• In the form of a within 7 calendar
Verified Position days from receipt.
Paper
• Payment of non-
refundable protest
fee
182
 RESORT TO REGULAR COURTS

❖ Court Action may be resorted to only after the protest shall

have been resolved with finality. (Doctrine of Exhaustion of
Administrative Remedies)

Land Bank of the Philippines v Atlanta Industries, Inc., G.R. No.

193796 , July 2, 2014

❖ Non-compliance with this statutory requirement, under

Section 58 of R.A. No. 9184, constitutes a ground for the
dismissal of the action for lack of jurisdiction.

Dimson (Manila), Inc. and Phesco, Inc. v Local Water Utilities

Administration, G.R. No. 168656, September 22, 2010.

❖ Regional Trial Court under Certiorari (Rule 65)

183
 RESORT TO REGULAR COURTS

❖ Protest must comply with Section 55 of R.A. 9184.

Where the protest was not verified and the protest fee
was not paid, respondent was held to have failed to
avail of the correct protest procedure before it filed its
petition for annulment of the award before the RTC.

Land Registration Authority, et. al. vs Lanting Security and

Watchman Agency, G.R. No. 181735, 20 July 2010)

184
 PROTEST FEES
GPPB Resolution 05-2012

ABC RANGE PROTEST FEE

50 million pesos and below 0.75% of the ABC
More than 50 million pesos to 100 PhP 500,000.00
million pesos
More than 100 million pesos to 500 0.5% of the ABC
million pesos
More than 500 million pesos to 1 PhP 2,500,000.00
billion pesos
More than 1 billion pesos to 2 billion 0.25% of the ABC
pesos
More than 2 billion pesos to 5 billion PhP 5,000,000.00
pesos
More than 5 billion pesos 0.1% of the ABC

185
PENAL
PROVISIONS

187
 COVERAGE

• Without prejudice to the provisions of Republic Act No.

3019, otherwise known as the “Anti-Graft and Corrupt
Practices Act” and other penal laws.

COVERAGE:

1. Public officers who commit any of the acts enumerated

under Section 65.1 of the IRR, and the private
individuals who collude with them.
2. Private individuals who commit any of the following
acts enumerated under Sections 65.2 and 65.3 of the
IRR, and public officer who conspires with them.

188
 OFFENSES COMMITTED BY
PUBLIC OFFICERS

1. Open 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.

2. 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.

189
 OFFENSES COMMITTED BY
PUBLIC OFFICERS
3. 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 tend to favor a particular bidder.

4. Splitting of contracts which exceed procedural

purchase limits and competitive bidding.

5. When the head of the agency abuses the exercise of his

power to reject any and all bids as mentioned under
Section 41 of this Act with manifest preference to any
bidder who is closely related to him in accordance with
Section 47 of this Act.

190
 OFFENSES COMMITTED BY PRIVATE
INDIVIDUALS
1. When two or more bidders agree and submit different
bids as if they were bona fide, when they know that one
or more of them was so much higher than the other
that it could not be honestly accepted and that the
contract will surely be awarded to the pre-arranged
lowest bid.

2. When a bidder maliciously submits different bids

through two or more persons, corporations,
partnerships or any other business entity in which he
has interest to create the appearance of competition
that does not in fact exist so as to be adjudged as the
winning bidder.
191
 OFFENSES COMMITTED BY PRIVATE
INDIVIDUALS
Section 65(c) of RA 9184
1. Submission of eligibility requirements containing false
information of falsified documents or concealment of
such information
2. Submission of bidding documents containing false
information of falsified documents or concealment of
such information
3. Using name of another or allowing another to use
one’s name
4. Withdrawal of bid w/o justifiable cause

* Public officers conspiring with the private individuals are also

liable under the provision.
192
 APPLICABLE PENALTY

❖Imprisonment for not less than six (6) years and

one (1) day but not more than fifteen (15)
years.

❖Penalty of temporary or perpetual

disqualification from public office (Public
Official)

❖Permanent disqualification from transacting

business with the government (Private
Individual)
194
 BLACKLISTING AND SUSPENSION

BLACKLISTING
❖ An administrative penalty disqualifying a person or an
entity from participating in any government
procurement for a given period.

SUSPENSION
❖ The administrative interim penalty imposed for
infractions committed by a contractor during
competitive bidding stage, whereby such contractor is
prohibited from further participation in the bidding
process of an agency.

195
 SANCTIONS
I. FIRST OFFENSE:
❖ Suspension Blacklisting for one (1) year

II. SECOND OFFENSE:

❖ Suspension Blacklisting for two (2) years

III. Forfeiture of Bid Security or Performance Security

- without prejudice to the imposition of additional

administrative sanctions as the internal rules of the
agency may provide and/or further criminal prosecution.

196
 GROUNDS FOR BLACKLISTING

1. Submission of eligibility requirements containing false

information or falsified documents.
2. 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.
3. Allowing the use of one’s name , or using the name of
the name of another for purpose of public bidding.

197
 GROUNDS FOR BLACKLISTING

4. 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.
5. Refusal or failure to post the required performance
security within the prescribed time.

198
 GROUNDS FOR BLACKLISTING

6. 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.
7. Any documented unsolicited attempt by a bidder to
unduly influence the outcome of the bidding in his
favor.
8. All other acts that tend to defeat the purpose of the
competitive bidding, such as habitually withdrawing
from bidding or submitting late bids or patently
insufficient bids, for at least three (3) times within a
year, except for valid reasons.

199
 PROCEDURE FOR BLACKLISTING

Contractor shall
Initiation of BAC notifies submit its written
Action Contractor in answer to BAC
writing upon with documentary
verification of evidence and
existence of request for
grounds hearing, if he so
Who may initiate? desires, within 5
• Any bidder/prospective cd from receipt of
bidder • That a complaint has notification
• Duly authorized observer been filed
• BAC • That he has opportunity
to show cause NO TIME
• That a hearing shall be EXTENSION
conducted, upon SHALL BE
request ALLOWED
• The consequence of
being blacklisted
200
 PROCEDURE FOR BLACKLISTING

IF CONTRACTOR DOES NOT SUBMIT ANSWER

C DISMISS
O THE
BAC Within 15 cd NO
N CASE
Does recommends to from receipt of
T BAC resolution
R NOT the HOPE the
suspension of and records of
A Submit BAC Proceeding,
answer the Contractor
C and the HOPE
T forfeiture of bid determines
O security. existence of YES HOPE
R reasonable issues a
cause Suspension
Order and
forfeiture
Within 5 cd from of bid
receipt of security
notification from
BAC
201
 PROCEDURE FOR BLACKLISTING
BAC immediately
IF CONTRACTOR SUBMITS ANSWER sets the date and
time for hearing.
Max of 5 days

C YES BAC conducts hearing

O
N
T Request
Submits BAC determines
R for NO
answer hearing existence of fault
A
C YES NO
T
O HOPE DISMISS
R Base on the issues a THE
complaint, answer Suspension CASE
Within 5 cd from and documentary Order and
receipt of evidence and facts forfeiture
notification from verified of bid
BAC security
202
 PROCEDURE FOR BLACKLISTING
IF CONTRACTOR FILES MOTION FOR
C
RECONSIDERATION NO HOPE issues
O Blacklisting Order
HOPE
N resolves
T Files MR Protest YES
motion Appellate
R Appeal
within 7 cd Authority
A from receipt resolves
C protest
T Within 3 cd from
within 7cd
O Filed with the
receipt of notice of
R appellate authority
decision, base on
within 7 cd from
the ff:
receipt of notice If protest is NOT
1. Decision does
not conform granted, HOPE
with the issues Blacklisting
evidence/facts Order.
2. Newly
discovered
evidence 203
 PROCEDURE FOR BLACKLISTING

C
O
N Does HOPE issues Agency GPPB posts
T NOT file Blacklisting submits copy the
R MR Order of Blacklisting
A Blacklisting Order in the
C Order to GPPB
T GPPB within Website
O 7 cd after its
R issuance
Within 3 cd from
receipt of notice of
decision,

IF CONTRACTOR DOES NOT FILE MOTION

FOR RECONSIDERATION
204
 STATUS OF BLACKLISTED
PERSON/ENTITY
When does Blacklisting Order become final and executory?
1. If the bidder did not file a MR on the Decision to Suspend,
said Decision becomes final and executory after the lapse of
7 days counted from receipt of the Notice of the Decision;
or,

2. If the bidder did not file an Protest Appeal after his MR has
been denied, the Decision becomes final and executory after
the lapse of 7 days counted from receipt of the resolution on
the motion for reconsideration; or,

3. If an Protest Appeal was filed and the same was denied, the
Decision becomes final and executory upon receipt by the
agency and person/entity concerned of the Decision on the
protest.

205
VIII. POST-QUALIFICATION

206
 VIII. POST-QUALIFICATION

❖ To determine whether bidder with LCB complies with

and is responsive to all requirements and conditions of
eligibility and the bidding of the contract – to be
declared the Lowest Calculated and Responsive Bid
(LCRB)

❖ A non-discretionary pass/fail criterion shall be used to

“Verify, Validate and Ascertain” all statements and
documents (licenses, certificates, etc.) submitted by the
LCB

207
 VIII. POST-QUALIFICATION

❖ Completed in not more than 7 cd 12 cd, or up to 30 cd

45 cd in exceptional cases, upon approval of the HOPE.

❖ In case of post-disqualification of the LCB, the BAC shall be

given the same fresh period to conduct the post-
qualification of the next LCB. (Sec. 34.8, 2016 IRR of RA
9184)

❖ BAC will notify the Bidder with the Lowest Calculated

Bid that it was determined as such

208
 VIII. POST-QUALIFICATION

❖ Within 3 cd 5 cd from receipt of Notice, submit the ff:

1. Latest Income and Business Tax Returns;
2. PhilGEPS Certification of Registration (if not submitted
during the opening); and

3. Other appropriate Licenses and permits required by

law and stated in the Bidding Documents.
❖ Failure to submit any of the post-qualification
requirements on time, or a finding against the veracity
thereof, shall disqualify the bidder for award. Should there
be a finding against the veracity of any of the documents
submitted, the Bid Security shall be forfeited in accordance
with Sec. 69 of the 2016 IRR of RA 9184.
209
 VIII. POST-QUALIFICATION

For Goods, the BAC shall check:

a) Delay in the partial delivery of goods amounting to ten percent
(10%) of the contract price in its ongoing government and private
contracts;
b) If any of these contracts shows the bidder’s failure to deliver or
perform any or all of the goods or services within the period(s) specified
in the contract or within any extension thereof granted by the PE
pursuant to a request made by the supplier prior to the delay, and such
failure amounts to at least ten percent (10%) of the contract price; or
c) Unsatisfactory performance of the supplier’s obligations as per
contract terms and conditions at the time of inspection.

If the BAC verifies any of these deficiencies to be due to the bidder's fault or
negligence, the BAC shall disqualify the bidder from the award, for the
procurement of Goods. (Sec. 34.3(b), 2016 IRR of RA 9184)
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 VIII. POST-QUALIFICATION

For Infrastructure Projects, BAC shall check:

a) Negative slippage of at least 15% in any one project or
a negative slippage of at least 10% in each of 2 or
more contracts;
b) Failure of the contractor to commence repair works on
ongoing contracts in accordance with Section 34.3
c) Failure of the contractor to commence repair works on
contracts with pending certificates of acceptance in
accordance with Sec. 34.3
d) Substandard quality of work or unsatisfactory
performance at the time of inspection.
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 VIII. POST-QUALIFICATION

❖ PE may request for the submission of additional

documents from the bidder in support of the information
it has provided in the bidding documents.

❖ However, non-submission of the additional supporting

documents requested cannot be a ground for the
bidder’s post-disqualification, as a bidder may be post-
disqualified only upon ascertainment, validation, and
verification of its non-compliance with the legal, technical,
and financial requirements of the project as provided in
the bidding documents.

NPM 25-2013
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 RECOMMENDATION OF AWARD

❖ The BAC shall recommend award of contract to the

LOWEST CALCULATED AND RESPONSIVE BID
(LCRB) at submitted price or calculated price, whichever is
lower.

❖ The HOPE has 7 cd 15 cd to decide whether or not to

approve or disapprove the recommendation.

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 RECOMMENDATION OF AWARD

The BAC shall notify all other bidders, in writing, of its

recommendation to HOPE of award of contract to LCRB/HRRB
within 3 cd from the issuance of the resolution recommending
award. (Sec. 37.1.1, 2016 IRR of RA 9184)

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 FAILURE OF BIDDING

GROUNDS:

1) No bids received
2) Bids received but no one was eligible
3) All bids failed to post qualify
4) Someone post qualified but refused w/o justifiable
cause to accept the award.

(Sec. 35, IRR of RA 9184)

216
 FAILURE OF BIDDING

EFFECTS:

1) Mandatory review shall be conducted by BAC

2) Based on findings, BAC shall:
❖ Revise terms, conditions, specifications
❖ Adjust ABC, subject to required approvals
3) Re-bidding
4) Re-advertisement

217
 FAILURE OF BIDDING

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 process and
set the new periods according to the same rules followed during
the previous bidding(s).
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.

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 RESERVATION CLAUSE

❖ HOPE reserves the right to:

◦ Reject any and all bids;
◦ Declare a failure of bidding; or
◦ Not award the contract.
(Sec. 41, IRR of RA 9184)

❖ GROUNDS:
1. Prima facie evidence of collusion;
2. BAC is found to have failed in following the prescribed bidding
procedures;
3. For justifiable reasons, the award of contract will not redound to the
benefit of the Government:
 Physical and economic conditions have significantly changed;
 Project is no longer necessary
 Source of funds for the project has been withdrawn/reduced.
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 IX. AWARD OF CONTRACT

❖ Contract shall be awarded to the bidder with the Lowest

Calculated and Responsive Bid (LCRB) at its submitted
price or total calculated bid price, whichever is lower.

❖ Notice of Award (NOA) is issued by the HOPE within

the following periods:

- NGAs and LGUs – 7 cd 15 cd

- GOCCs and SUCs – 15 cd

❖ The BAC Sec shall post the NOA in the PhilGEPS, PE’s
websites and in any conspicuous place within 3 cd
from its issuance.
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 IX. AWARD OF CONTRACT

❖ Award of contract is subject to the following conditions

within 10 cd from issuance of NOA:

- If joint venture, submission of JVA

- If foreign bidder: PCAB license (if foreign-funded
and stated in treaty, international or executive
agreement)
- Posting of Performance Security
- Signing of Contract upon compliance with all
documentary requirements
- If required, approval by higher authority

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 PERFORMANCE SECURITY

❖ Posted by winning bidder to guarantee performance of

obligation, in such form and amount specified in the
Bidding Documents.

EFFECTS OF FAILURE TO POST:

1. Ground for disqualification

2. Next-ranked LCB shall subjected to post-qualification
3. Bid security shall be forfeited without prejudice to the
imposition of sanctions

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 PERFORMANCE SECURITY

Amount
Form of Performance Security Performance Security
(% equal to the Contract Price)
a) Cash or cashier’s/manager’s
check
5% (Goods ) & 10% (Infra)
b) Bank guarantee/draft or
Irrevocable LC
c) Surety bond callable upon
30%
demand
d) Combination of the foregoing Proportionate to share of form with
respect to the total amount of security

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 CONTRACT SIGNING

❖ When required, the approving higher authority or his

duly authorized representative shall be given a
maximum of 15 cd 20 cd from receipt to approve or
disapprove the contract.

❖ In the case of GOCCs, the concerned board or its duly

authorized representative shall be given a maximum of
25 cd 30 cd from receipt to approve or disapprove the
contract.

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 PERIOD TO COMPLETE
PROCUREMENT PROCESS
PROCUREMENT PROCESS
From Opening of Bids to Award of Contract shall
NOT EXCEED 3 MONTHS

In the case of Jacomille v. Abaya, et al., the petitioner contends that

the public respondents failed to comply with the periods provided
by law, specifically the 3-month period from the opening of the bids
up to the award of the contract under Section 38 of RA 9184. The
Supreme Court held that “[t]he different periods provided by RA
9184 within which certain stages of the procurement process must
be completed is not merely directory but mandatory.” Thus, it
concluded that such irregularity rendered the procurement
process null and void. (G.R. No. 212381, 22 April 2015)

225
 NOTICE TO PROCEED

❖ The concerned PE shall issue the Notice to Proceed

(NTP) together with a copy or copies of the approved
contract to the successful bidder within 3 cd 7 cd from
the date of approval of the contract by the appropriate
government approving authority.

❖ All notices called for by the terms of the contract shall be

effective only at the time of receipt thereof by the
successful bidder.

❖ The BAC Sec shall post the NTP and the approved
contract in the PhilGEPS and PE’s websites within 15 cd
from the issuance of the NTP.
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 RETENTION MONEY

❖ For Goods, retention money is 10% at least 1% but not

more than 5% of contract price (Sec. 62, 2016 IRR of RA
9184, GPPB Resolution No. 30-2017)

❖ For Infrastructure Projects, retention money is 10% of

contract price

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 LIQUIDATED DAMAGES

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.

228
DESIGN AND BUILD CONTRACTS

229
➢ ADVANTAGE OF DESIGN & BUILD
3. GUIDING PRINCIPLES
3.1. Advantages:
a) Precludes buckpassing and finger-pointing between the designer and the builder.
Since both design and construction are in the hands of the contractor.

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.
3.2. Disadvantages:
a) Procuring Entities should take into account that in utilizing the design and build
scheme for a particular project, contractors are given too much discretion in
determining the project cost and there is difficulty in predicting its final cost until
the actual commencement of construction.

Architects are crucially needed to play an Active role as overseer or

as Planner in formulating the TERMS OF REFERENCE (TOR) in Design & Build Contracts

230
COMPARATIVE METHODS OF PROCUREMENT
RA 9184 0 95 200 260 305
1. RULE IV (IRR 9184): Competitive Bidding
1.F.S. (Open Bidding) 245

START OF CONSTRUCTION
2.DAEDS Design-Consultants (Open Bidding) 60
3.LOAN APPLICATION/APPROVAL 45
4.Construction Bidding+NOA/NTP

30 90 150
2.Annex “G” Bidding on a Design& Build
90
1.F.S.+ Tech Docs.(In-House Consultant)
1.1 Creation of Design& Build 155 days Savings
Committee
2.T.O.R & BID DOCS +DAEDS
Design & Build 60
3.LOAN APPLICATION/APPROVAL 60
4.BIDDING

231
START OF CONSTRUCTION
➢ DESIGN & BUILD : As provided with Guidelines in the IRR of RA 9184
IRR of 9184 : Annex “G” for Design & Build Contracts
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.

Section 42. Contract Implementation and Termination

42.1. The contract implementation guidelines for the procurement of goods, supplies and
materials are provided for in Annex “D” of this IRR.
42.2. The contract implementation guidelines for the procurement
of infrastructure projects are provided for in Annex “E” of this IRR.
42.3. The contract implementation guidelines for the procurement
of consulting services are provided for in Annex “F” of this IRR.
42.4. The contract termination guidelines as provided for in Annex “I” of this IRR.(n)
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 ARCHITECT/ENGINEER DESIGNER-
CONTRACTOR PARTNERSHIP
Section 9. ELIGIBILITY REQUIREMENT: Annex “G”
Procurement and Implementation of Design & Build Contracts
ii. 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.
233
 3. GUIDING PRINCIPLES DESIGN & BUILD with Contractor Partner

6. 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.

234
3. GUIDING PRINCIPLES DESIGN & BUILD

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. Project Description ii. Conceptual Design iii. Performance
Specifications and Parameters iv. Preliminary Survey and Mapping
v. Preliminary Investigations vi. Utility Locations vii. Approved
Budget for the Contract viii. Proposed Design and Construction
Schedule ix. Minimum requirements for a Construction Safety
and Health Program for the project being considered x.
Tender/Bidding Documents, including Instructions to Bidders and
Conditions of Contract

235
• SAMPLE TERM OF REFERENCE (TOR) in Design& Build-Technical
A. Specialized
1. For the Pre-Detailed Design and Detailed Design portion of the contract, the Bidder is required to hire the
minimum number of people as shown below. However, should the Bidder opine that the required number would be
insufficient to complete the works/services within the specified time frame, the Bidder can hire additional staff which method
deserves to be detailed or explained in the Bidder’s Technical Proposal. Likewise the Bidder shall remunerate this additional
staff all within the Bidder’s Financial Proposal.
a. Project Coordinator(s)
Licensed Architect or Engineer
At least 10 years experience in overall project management
Superb oral and written communication skills, organization skills and excellent administrative abilities.
b. Architect (at least one for each building, Dietary and Radiology Buildings)
Licensed Architect
Preferably at least 5 years experience in hospital and hospital-related projects.
Proficient in Autocad software.
c. Civil/Structural Engineer (at least one for each building, Dietary and Radiology Buildings)
Licensed Civil Engineer
Preferably at least 5 years experience in hospital and hospital- related projects
Proficient in Autocad,STAAD/ETABS softwares
d.. Electrical Engineer (at least one for each building, Dietary and Radiology Buildings)
Licensed Electrical Engineer preferably Professional Electrical Engineer
Preferably at least 5 years experience in hospital and hospital related projects
236
Proficient in Autocad software
 • SAMPLE TERM OF REFERENCE (TOR) in Design& Build-Technical
2. For the construction phase of the contract, list of contractor’s and/or joint venture contractors key personnel to be assigned to the
contract to be bid, with their complete qualification and experience data, shown in matrix with CV including copy of updated
licenses or proof of renewal of their licenses, if expired. The list must contain the name, educational attainment, training
professional license and work experience of personnel.
1.Project Manager

a.Architect or Civil Engr. With min 10 years experience as Project Manager

b. Experience in new vertical construction/medium rise building construction.
2. Project Engineer
a. Architect or Civil Engr. With min 5 years experience as Project Engineer.
b. Experience in new vertical construction/medium rise building construction
3. Engineers to be assigned to Project
a. Structural Engr.-minimum 5 years in Practice
b. Sanitary Engr.- minimum of 5 years in practice
c. Professional Electrical Engr. – minimum 5 years in practice
d. Professional Mechanical and Fire Protection Engr. – minimum 5 years in practice.
e. Safety Officer- at least 5 years experience as safety officer of at least one (1) medium rise
building with current certification/accreditation from the DOLE-Occupational Health and Safety
Office.
f. Material Engineer- at least five (5) years licensed engineer with experience as materials
engineer of at least one (1) medium rise building with current certification/accreditation as
materials engineer by the DPWH.
4. Foreman
5. Administrative Support 237
Prov.24/5
Wise warriors are mightier than strong ones,
and those who have knowledge than those who have
strength;

’..You can lead a horse to water, but you can't make it

drink.. as it appears to be the oldest English proverb that is still in
regular use today. It was recorded as early as 1175 in Old English
Homilies:

238