UPDATES IN RA NO.

9184 AND
ITS IMPLEMENTING RULES AND
REGULATIONS
Atty. Gerard L. Chan, LL.M.
Director III, Legal Service

Department of Transportation and Communications

PROCUREMENT OF
GOODS AND
INFRASTRUCTURE
PROJECTS

PROCESS FLOW FOR GOODS

AND INFRA
Procurement
Planning

Preprocurement
Conference

Advertisement
and/or Posting

Pre-bid
Conference

Detailed
Evaluation of
Bids

Opening and
Evaluation of
Second
Envelope

Opening and
Evaluation of
First Envelope

Submission
and Receipt of
Bids

Postqualification

Award of
Contract

Notice to
Proceed

Contract
Implementation

REFERENCE TO BRAND NAMES (SEC.

18 IRR)

Applicable only to procurement of goods

Specifications

should be based on relevant

characteristics and performance requirements.

Prohibition includes:
Reference to country

of origin (NPM 15-2012:

Procuring Entities are precluded from requiring
specific country of origin as part of their technical
specifications.)

ADVERTISEMENT/POSTING OF THE INVITATION

TO BID

Importance:

- Signals the start of the bidding process.

Procurement process should be made within 3
months starting from posting and advertisement
until awarding of contract. (Sec. 38.1 IRR)
- Bidding Documents are made available as of
advertisement until deadline for the submission of
bids. (Sec. 17.3 IRR)
GPPB Resolution 4-2012
(Guidelines on Sale of Bidding Documents) Sale of Bidding
Documents have been standardized.

SALE OF BIDDING DOCUMENTS

GPPB Resolution 4-2012 (Guidelines on Sale of Bidding
Documents)
The cost of bidding documents shall correspond to the ABC as
indicated in a table. This shall be the maximum amount of fee that
the procuring entities can set for the acquisition of bidding
documents.
ABC

Maximum Cost of Bidding

Documents

500,000 and below

500.00

More than 500,000 up to 1 Million

1,000.00

More than 1 Million up to 5 Million

5,000.00

More than 5 Million up to 10 Million

10,000.00

More than 10 Million up to 50

Million

25,000.00

More than 50 Million up to 500

50,000.00

PRE-BID CONFERENCE

Forum where the PEs representatives & the

bidders discuss the different aspects of the project

Mandatory ABC 1M or more

Held at least 12 cd before deadline for bid

submission.

Statements made during the conference should be

included in the Supplemental/Bid Bulletin in order
to be considered as modifications to the terms of
the bidding documents

At the option of procuring entity, only

bidders who purchased bid documents are
allowed to attend or ask questions.

SUPPLEMENTAL/BID
BULLETINS

Issued at least 7 cd before deadline for bid submission.

Purpose of Supplemental / Bid Bulletin
1. to incorporate in the bidding documents those statements
discussed during pre-bid conference

2.
3.

to answer requests for clarification/interpretation or

upon BACs initiative to clarify or modify any provision of
bidding documents

. Posted in PhilGEPS and PEs website.

. Responsibility of bidders to inquire
Supplemental/Bid Bulletin.

. Bidders

and

secure

who have submitted bids before issuance of

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

SUBMISSION AND OPENING 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.
Category

Maximum Period (cd)

Goods

45

Infra (50M and below)

50

Infra (above 50M)

65

OPENING AND EVALUATION OF

FIRST ENVELOPE

Contents
1. Eligibility requirements
2. Bid Security
3. Technical specifications (Goods) / Project requirements
(Infra)
4. Omnibus sworn statement
Non-inclusion in blacklist
Authenticity of documents
Verification authority
Signatorys authority
Disclosure of relations
Responsibilities of bidders
Labor laws and standards

ELIGIBILITY REQUIREMENTS
GOODS

INFRASTRUCTURE
Class A Documents

1. DTI/SEC/CDA Registration

1. DTI/SEC/CDA Registration

2. Mayors permit

2. Mayors permit

3. Statement of ongoing &

completed contracts

3. Statement of ongoing &

completed contracts

4. Audited financial statement

4. PCAB license and

registration

5. NFCC or CLC

5. Audited financial statement

6. NFCC or CLC
Class B Document

JVA or notarized statement from the partners that they will enter into
joint venture if awarded the contract

REQUIREMENTS FOR JOINT VENTURES

Existing Joint Venture :

venture agreement.

submission of a valid joint

No

existing Joint Venture: submission by each of

the potential joint venture 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.

Submission of Eligibility Requirements :

All

co-venturers of the joint venture should submit

legal eligibility documents.
of the co-venturers can submit technical and
financial eligibility requirements

Any

ELIGIBILITY REQUIREMENTS

If foreign bidder

Submit equivalent documents issued by country

Accompanied by English translation certified by

appropriate embassy or consulate in the
Philippines.

NOTE: Sec. 23.2 of the IRR requires translation

and certification of a foreign document that is not
initially in English. (NPM 079-2012)

ELIGIBILITY CRITERIA (LEGAL)

GOODS
General rule: 60% Filipino

INFRASTRUCTURE
General rule: 75% Filipino

Foreign bidder allowed if:

Foreign contractors allowed if
Stated
in
treaty
or
stated in treaty or international
international
or
executive
or executive agreement
agreement
National of a country offering
reciprocity rights to Filipinos
Goods not available from local
suppliers
To prevent situations that
defeat competition or restrain
trade
If joint venture, less than 75% is
allowed if Structures to be built require
techniques not possessed by

ELIGIBILITY CRITERIA (TECHNICAL)

Goods - Single Largest Contract

Previous contract
Similar to the contract to be bid out as defined by
the Bidding Documents

Completed

within a period as defined by the

Bidding Documents

Value of the ABC

(1) 25% of the ABC (expendable supplies)

(2) 50% of the ABC (non-expendable supplies)
*Value of the previous completed contract is
adjusted to current prices using the NSO consumer
price index.

DEFINITIONS

Expendable Supplies (Sec. 5 [m])

Articles normally consumed within 1 year or
value is substantially decreased after 1 year
Examples: medicines, stationery, fuel, and
spare parts
Non-expendable Supplies (Sec. 5 [w])
Not consumed in use
Serviceable life more than 1 year
Examples: furniture, fixtures, transport, and
other equipment

ELIGIBILITY CRITERIA
(TECHNICAL)

Goods - Single Largest Contract

General Rule

1. Expendable
Supplies
25% of the ABC

Exceptions

Then require the ff.:

If, at the outset and a) At least 2 similar

after market research,

contracts

applying the general

aggregate amount

rule will likely result

at least equivalent

2. Services and Non- to:

to
required
expendable
percentage; and
supplies
1. Failure of bidding;
50% of the ABC
or
b) Largest
of
the
similar
2. Monopoly

contracts

amounts to at least
50%

of

percentage

required

ELIGIBILITY CRITERIA (TECHNICAL)

Goods

Single
(Illustration)
Expendable Goods

Largest

Contract

Non-expendable Goods

ABC = P1,000,000

ABC = P1,000,000

GR: 25% of the ABC

GR: 50% of the ABC

THUS: Previous contract should be at

least
P250,000

THUS: Previous contract should be at

least
P500,000

EXCEPTION:
At least 2 similar
contracts aggregate amount at least
equivalent to required percentage; and
Largest of the similar contracts amounts
to at least 50% of required percentage.

EXCEPTION: At least 2 similar

contracts aggregate amount at least
equivalent to required percentage; and
Largest of the similar contracts amounts
to at least 50% of required percentage.

THUS: 1st contract = P100,00

THUS: 1st contract = P300,00

ELIGIBILITY CRITERIA
(TECHNICAL)

Infrastructure Projects - Single Largest

Contract
(Sec. 23.5.2.5 IRR)

Previous contract
Similar to the contract to be bid out (having
the same civil works components)

Value of the previous completed contract

-50% of the ABC

*Value of the previous completed contract is

adjusted to current prices using the NSO
consumer price index.

ELIGIBILITY CRITERIA
(TECHNICAL)
Infrastructure
Projects - Single
Contract
(Sec. 23.5.2.5 IRR)

Largest

GPPB Resolution 11-2012 (Amending Sections

23.5.2.4 and 23.5.2.5 on the Single Largest
Contract)
Prior to Amendment: The prospective bidder must
have an experience to having completed, within 10
years from the date of submission and receipt of bids,
at least one contract similar to the one to be bid out.
After the Amendment: The requisite 10 year period
has now been removed. The similar completed projects
may now be those older than 10 years.

ELIGIBILITY CRITERIA
(FINANCIAL)

Goods and Infrastructure Projects:

Audited Financial Statement

(showing
prospective bidders total and current assets
and liabilities. )
-and-

NFCC at least equal to ABC or Credit Line

Commitment (CLC) at least equal to 10% of
ABC

NFCC COMPUTATION
NFCC = (current assets - current liabilities) (K)
MINUS (outstanding, uncompleted portions under
ongoing contracts + contracts awarded but not yet
started)
(K) = 10 (1 year or less)
15 (More than 1 year to 2 years)
20 (More than 2 years)
*Value of K The value of K is based on the
duration of the contract under consideration or the
would-be contract subject of the bid opportunity. (NPM
96-2012)

BID SECURITY
Amount
Form of Bid Security

Bid Security
(% of the ABC)

a) Cash or cashiers/managers
check
b) Bank guarantee/draft
Irrevocable LC

or

c) Surety bond callable upon

demand issued by surety or
insurance company duly
certified by the Insurance
Commission.

2%

5%

d) Combination of the foregoing Proportionate to share of form

with respect to the total amount

BID SECURITY
Sample Computation
Cash (60%)
ABC
% Required

Surety Bond (40%)

1,000,000
x

.02

1,000,000
x

20,000
Share of form
Amount
Total

.60
12,000
32,000

.05
50,000

.40
20,000

SURETY BOND AS BID SECURITY

NPM 24-2010, NPM 17-2012
The certification which must be submitted together
with the surety bond must:

1. unequivocally state that the surety or insurance

2.
3.

company is specifically authorized to issue

surety bonds callable on demand;
must be issued by the Insurance Commission;
and,
must be project specific (Sections 27 and 39,
IRR)

SURETY BOND AS BID SECURITY

NPM 11-2011
Whether bond issued by the GSIS is an acceptable
form of bid security.
GSIS may be considered within the definition of
surety or insurance company under the Insurance
Code. However, considering the mandate of law
authorizing GSIS to engage in insurance and
reinsurance business, the certification required under
the IRR of RA 9184 is no longer necessary for the
acceptability of GSIS issued surety bonds.

BID SECURING DECLARATION

GPPB
Resolution
3-2012
(Adopting
the
Guidelines for the Use of Bid Securing
Declaration as an Additional Form of Bid
Security)
Section 27 of the IRR is amended such that a Bid
Securing Declaration is made an alternative to the
acceptable forms of bid security.
Under Section 27.5 (as inserted in the IRR), a bid
securing declaration may be submitted in lieu of a bid
security mentioned in Section 27.2.

BID SECURING DECLARATION

A bid securing declaration is an undertaking by
a prospective bidder, committing to pay the
corresponding fine and be suspended for a period of
time and from being qualified to participate in any
government procurement activity in the event it
violates any of the conditions stated therein.
*Bid Securing Declaration shall be valid for a
reasonable period determined by the HOPE concerned
and indicated in the Bid Documents.

BID SECURING DECLARATION

When can the Procuring Entity enforce the BSD?

1)
2)

When the bidder withdraws its bid during the period of

bid validity; or
When the bidder fails or refuses to accept the award
and enter into contract.

What are the consequences of enforcing the BSD?

3)
4)

Payment of fine; and

Automatic blacklisting for 2 years

BID SECURING DECLARATION

Payment of fine

a) In case of multiple bidders difference between

the evaluated bid prices of the bidder with the
lowest calculated bid/highest rated bid and bidder
with the next lowest calculated/highest rated bid,
and so on. However, as regards the bidder with the
highest calculated/lowest rated bid, the amount
shall be based on the difference between the
evaluated bid price and the ABC.

b) In

case of a single bidder the difference

between the evaluated bid price and the ABC.

BID SECURING DECLARATION

Automatic Blacklisting Procedure

PE

shall immediately issue the blacklisting order

upon determination of the grounds for enforcing the
BSD.

Bidder

concerned may file a Motion for

Reconsideration questioning the blacklisting order
within 3 calendar days in cases where the NOA is not
in conformity with the Bidding Documents.

Blacklisted

bidder shall only be delisted upon the

expiration of the period of penalty.

BID SECURITY
NPM 43-2011
bidders have the option to choose from any of
the acceptable forms of bid security enumerated
under the IRR of RA 9184, and procuring entities may
not limit the allowable forms of bid security nor
prohibit bidders from submitting any of the acceptable
forms of bid security.

BIDDERS ATTENDANCE; IS IT NECESSARY?

NPM 07-2012
The attendance of the bidders in the bid opening is
optional. The proof of authorization is not necessary
whenever a bidders representative, other than the
one authorized in the Omnibus Sworn Statement,
attends the bid opening.

BID VALIDITY PERIOD

The

HOPE shall determine the validity period for

the bids as well as for the bid security.

If bid validity period is about to expire, the procuring

entity shall request in writing all bidders who

submitted bids for such extension prior to the
expiration date.

NOTE:

Bidders have a right to refuse to grant such

extension without forfeiting their bid security.

DISCLOSURE OF RELATIONS

Relatives within the third civil degree of

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
Project consultants

OPENING AND EVALUATION OF

SECOND ENVELOPE

Contents:

1. Financial Bid Form (includes bid prices and bill

2.
3.

of quantities, as well as applicable price

schedules)
In case of Goods, Certification from the DTI,
SEC, or CDA, if claiming preference as
Domestic Bidder or Domestic Entity
Other documents required in the bidding
documents

NO CONTACT RULE

No Contact Rule

BAC is prohibited from making or accepting

communication with any bidder regarding the
evaluation of their bids.
BAC, thru Secretariat, may request for
clarification of bid as long as it is in writing

DETAILED EVALUATION OF BIDS

Determine the LCB/SCB by:

1. Establishing correct calculated prices of bids;
and
2. Ranking calculated total bid prices from lowest
to highest
A non-discretionary criteria shall be used,
which shall include consideration of:
1. completeness of bids; and
2. minor arithmetical corrections

7 cd from the deadline for receipt of proposals. In

the case of infrastructure projects costing 50M and
below 5 cd

DETAILED EVALUATION OF BIDS

In case of discrepancies, the ff. shall prevail:

words over figures
unit prices over total prices
bill of quantities over detailed estimate
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

POST-QUALIFICATION

Legal Requirements
1. licenses and agreements
2. legal documents under eligibility envelope
Technical Requirements
1. sufficiency of the bid security as to type, amount,
form wording and validity period
Financial Requirements
1. bid price proposal
2. NFCC computation
3. credit line commitment, to ensure that bidder can
sustain the operating cash flow transaction
Completed in 7 calendar days. But, may be extended
by the HOPE to not more than 30 calendar days

POST-QUALIFICATION
NPM 09-2012
Bidders are not precluded from submitting the
post-qualification documents during the submission of
bids.
However, in case there is delay in the conduct of
post-qualification, it is prudent for the Procuring
Entity to request for the latest and current legal
documents during post-qualification to ascertain,
validate and verify the authenticity and currency of
the documents and establish the eligibility and
responsiveness of the bidder.

POST-QUALIFICATION

3 days from notice of LCB, submit the following

documents: (Sec. 34 IRR)

Tax clearance
Latest income and business tax returns
Certificate of PhilGEPS registration
Other appropriate licenses and permits
required by law and stated in the Bidding
Documents

POST-QUALIFICATION
How about joint ventures?

All

members of the joint venture are required to

submit the requirements specified under Sec. 34
IRR.

These

are legal eligibility requirements which

should be submitted by all members of the joint
venture.
(NPM 06-2010)

AWARD OF CONTRACT

Contract shall be awarded to the bidder with the

LCRB or SCRB at its submitted price or total
calculated bid price, whichever is lower

Notice of Award (NOA) is issued by the HOPE

NGAs and LGUs 7 cd | GOCCs and GFIs 15 cd

NOA conditioned on the following:

If joint venture, submission of JVA

Posting of Performance Security
Signing of Contract (within 10 cd)
If required, approvals by higher authority

3 months - procurement process from opening of bids

up to award of contract or a shorter period

PERFORMANCE SECURITY (SEC.39

IRR)
Amount

Form of Performance Security

Performance
Security
(% equal to the
Contract Price)

a) Cash
check

or

cashiers/managers

b) Bank
guarantee/draft
Irrevocable LC

or

c) Surety bond callable upon

demand issued by surety duly
certified by the Insurance
Commission.
d) Combination of the foregoing

5% (Goods )
& 10% (Infra)

30%

Proportionate

to

PERFORMANCE SECURITY (SEC.39

IRR)

NPM 106-2012

Which between the ABC and the Contract Price should be

the basis for the amount of performance security?
Sec. 39.2 of the IRR of RA 9184 is clear that the
Performance Security, whether in the form of cash,
cashiers/managers check, bank draft/guarantee or
irrevocable letter of credit, surety bond callable upon
demand, or any combination thereof, should be equal to
the percentage of the total contract price.
A similar provision appears under Clause 32.2 of the
Instruction to Bidders (ITB) of the Philippine bidding
Documents (PBDs) for the Procurement of Infrastructure
Projects.

Reservation Clause (Sec. 41 IRR)

HOPE reserves the right to:
Reject any and all bids;
Declare a failure of bidding;
Not award the contract.
GROUNDS:
Prima facie evidence of collusion;
BAC is found to have failed in

following the prescribed

bidding procedures;
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.

NOTICE TO PROCEED

Issued to the successful bidder together with the

copy of the approved contract within 3 cd from date
of approval
For infrastructure projects with ABC of 50M
and below, the maximum period is 2 cd.
Contract effectivity date should be provided in the
NTP, which should not be later than 7 cd from its
issuance
BAC Secretariat should post a copy of the NTP and
the approved contract in the PhilGEPS or PEs
website within 15 cd from issuance of NTP

ADVANCE PAYMENT FOR GOODS

Made only after prior approval of the President.

Single advance payment not to exceed 50% of the
contract for the following services:
Hotel and restaurant services
Use of conference/seminar and exhibit areas
Lease of office space
Advance payment not to exceed 15% allowed to
address contingencies arising from natural or manmade calamities in areas where state of calamity
has been declared

ADVANCE PAYMENT FOR

INFRASTRUCTURE PROJECTS

Also referred to as MOBILIZATION COST

Requirements:
Written request of the contractor
Submission of :
- an irrevocable standby letter of credit of
equivalent value from a commercial bank, bank
guarantee, or
surety bond callable upon demand.

Amount not to exceed 15% of the contract price

Amount shall be repaid by the contractor

Progress Payments (Infrastructure

Projects)

Payments

made by the Procuring Entity to the

contractor for portions of the work done.

Contractor

may submit a statement of works

accomplished (progress billing)

Request

for progress payment for the work

accomplished in amounts the contractor considers
itself to be entitled to.

Subject to 15% deduction which was a percentage of

the total contract used as advance payment.

Retention Money (Infrastructure

Projects)
PE shall retain an amount of the progress billing equivalent to
10% of the total amount due to the contractor
Until 50% of the value of works has been completed.
No more retention if:
- work is satisfactorily done
- work is on schedule.

PURPOSE:

To cover uncorrected defects after each progress

billing.
Substitute for Retention Money:
Request from the contractor
Through a irrevocable letter of credit , bank guarantee or
surety bond callable on demand.
Valid for a duration to be determined by the PE.

LIQUIDATED DAMAGES

Fails to perform obligations within specified schedule,

inclusive of duly granted time extensions
Imposed for every day of delay until performance and
acceptance
PE need not prove it incurred actual damages
Amount is 1/10 of 1% of the cost of the unperformed
portion for every day of delay
If sum of liquidated damages reach 10% of the contract
amount, PE shall automatically rescind the contract

WARRANTY SECURITY FOR

GOODS

What is a Warranty Security (Goods)?

a security in order to assure that manufacturing
defects shall be corrected by the supplier.

Warranty Security for Infra Projects

oGuarantee

that the contractor shall perform his

responsibilities and shall answer for an liability
arising due to:
a) improper

construction
b) use of inferior quality / standard
c)any violation of the contract plans and
specifications

oDenominated in Philippine peso

oEffective for 1 year from date

of issuance of
Certificate of Final Acceptance and returned
after the lapse of the 1 year.

WARRANTY SECURITY
Percentage
Type

Period

Form

of Contract
Price

Expendable

3 mos., unless
earlier
consumed

10%

1 year

Special bank
guarantee or
Retention
money

Service

None

None

None

Infrastructure

1 year

Cash/LC

5%

Bank
guarantee

10%

Surety bond

30%

Nonexpendable

WARRANTY AGAINST
HIDDEN/STRUCTURAL DEFECTS
Permanent

structures (Types 4 and 5; Ex. steel, iron,

concrete): 15 years

Semi-Permanent structures (Types 1,2 and 3; Ex. roads,

concrete river control, drainage, irrigation lined canals):
5 years

Other

structures
developments):
2 years

*In

(Ex.

wooden

bridges,

spring

case of hidden/structural defects, the PE shall undertake

the necessary restoration or reconstruction works and shall
be entitled to full reimbursement by the parties found to be
liable.

PROCUREMENT OF
CONSULTING SERVICES

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.

TYPES OF CONSULTING
SERVICES

i.

Advisory and review services

> advice on particular projects/problems (e.g.,
planning, design, and other professional services,
management, production, etc.)

ii.

Pre-investment or feasibility studies

> normally precede decisions to go (or not to go)
forward with specific projects (e.g., economic
analysis, environmental impact analysis, project
site selection, etc.)

iii.

TYPES OF CONSULTING
SERVICES

Design
> Pre-design phase establishes gen. scope of
the project and its location on the site (soils
investigation, land surveys, preliminary cost
estimates, etc.)
> Basic design phase include preparation of
detailed plans, cost estimates; tender documents,
etc)
> Support services during construction- include
bid analysis, preparation of formal contract
documents, periodic visit to check progress of
work, etc.

iv.

TYPES OF CONSULTING
SERVICES

Construction supervision

>
inspection,
expediting
of
work,
checking/verification of quantities of work
accomplished as well as quality of work, etc.

TYPES OF CONSULTING
SERVICES

v.

Management and related services

>
project management, ICT services, post
evaluation, etc.

vi.

Other technical services or special studies

> institution building, design and execution of
training program, etc.

PROCEDURAL STEP FOR

PROCUREMENT OF CONSULTING
not to exceed 20 c.d.
Quality Based Evaluation SERVICES
Pre-Procurement
Conf.

Advertisement
w/in 7 c.d.

Submission
of EOI

Submission of
Opening of
Eligibility Eligibility Env.,
Requirements
Eligibility
Check

1 c.d.

1 c.d.

Submission
of
Proposals

Evaluation
& Ranking
not more
than 21 c.d.

Opening of
Tech. Proposal
& Prel.
Exam.

Submission of
Addl Eligibility
Requirements
Within 3 c.d.

at least 12 c.d.

Pre-Bid
Conference

Opening of
Financial
Proposal

Negotiation

1 c.d.

Postqualification

within 10 c.d.

within 7 c.d.

Shortlisting

Award of
Contract
Notice to
Proceed

PROCEDURAL STEP FOR

PROCUREMENT OF CONSULTING
not to exceed 20
c.d.
Quality-Cost Based Evaluation
SERVICES
Pre-Procurement
Conf.

Advertisement
w/in 7 c.d.

Submission
of EOI

1 c.d.

Submission
of
Proposals

Evaluation
& Ranking
not more
than 21 c.d.

Submission of
Opening of
Eligibility Eligibility Env.,
Requirements
Eligibility
Check
1 c.d.

Opening
of
Tech.
Proposal
& Prel.
Exam.

Opening of
Financial
Proposal

Submission of
Addl Eligibility
Requirements
Within 3 c.d.

at least 12 c.d.

Negotiation
within 10 c.d.

Postqualification
within 7 c.d.

Pre-Bid
Conference

Shortlisting

Award of
Contract
Notice to
Proceed

1.

PROCEDURAL STEP FOR

PROCUREMENT OF CONSULTING
SERVICES PUBLIC BIDDING

Advertise and Post a Request for Expression of

Interest
2. Accept LOIs, Issue Eligibility Requirements, and
Conduct Eligibility Check
3. Short list the Eligible Bidders
4. Issue the Bidding Documents
5. Call A Pre-Bid Conference and, if necessary, Issue
Supplemental/Bid Bulletins
6. Receive and Open the Technical and Financial
Envelopes
7. Evaluate the Bids
8. Negotiate with the Consultant with the Highest
Rated Bid
9. Post-qualify the Highest Rated Bidder
10. Award the Contract to the HRRB
11. Have the Contract Signed and Approved and Issue
the Notice to Proceed

ADVERTISING A REQUEST FOR

EOI (SEC. 21)
( 7 c.d. max. pd.)

2 3

Submission of Eligibility Documents

shall be on or before deadline
specified in the ITB/Request for EOI
and shall be opened before the dates
of the pre-bid conf. and bid opening

6 7

Newspaper Pub.
*Once in one (1) newspaper
of general nationwide
circulation is required.

75 CDs from
last day
of ITB
Date of Bid
Opening

The Request for Expression of Interest should also indicate

the following:
1. The date of availability of the Eligibility Documents, the
place where it may be secured and the deadline for
submission of the Letter of Intent (LOI) together with the
application for eligibility;
2. The set of criteria and rating system for short listing of

prospective bidders to be used for the particular contract to

be Bid, which shall consider the following, among others:
Applicable experience of the consultant and members in case of
joint ventures, considering both the overall experiences of the
firms or, in the case of new firms, the individual experiences of
the principal and key staff, including the times when employed
by other consultants;
Qualification of personnel who may be assigned to the job vis-vis extent and complexity of the undertaking; and
Current workload relative to capacity;

3. The number of consultants to be short listed and the

procedure to be used in the evaluation of Bids of short
listed consultants, i.e., QBE or QCBE; and if QCBE, the
weights to be allocated for Technical and Financial
Proposals; and
The contract duration.
In the case of WB funded projects, the Request for
Expression of Interest shall be sent to all who have
expressed an interest in undertaking the services as a
result of any General Procurement Notice issued. In
addition, it shall also be sent to all heads of associations of
consultants within the area where the project will be
undertaken.

ELIGIBILITY CRITERIA

The following persons//entities shall be allowed to

participate in the bidding for consulting services :
1. Duly licensed Filipino citizens/sole proprietorship;
2. Partnerships organized under Phil. laws with at
least 60% Filipino ownership
3. Corporations organized under Phil. laws with at
least 60% Filipino Outstanding Capital Stock
4. Cooperatives organized under Phil. laws & of
which at least 60% belongs to citizens of the Phil.
Or
5. Persons/entities forming themselves into a joint
venture Joint Ventures with at least 60% Filipino
ownership

ELIGIBILITY REQUIREMENTS
(REVISED IRR HIGHLIGHTS)
Class A Documents

Legal Documents 1. Reg. Cert. from SEC, DTI for sole

proprietorship, or CDA for cooperatives and 2. Mayors
Permit
Technical Documents 1. Statement of all ongoing and
completed government and private contracts, and 2.
Statement specifying its nationality & confirming that
those who will actually perform the service are
registered professional authorized by the appropriate
regulatory body to practice those professions and
allied professions
Financial Documents 1. Consultants audited FS
stamped received by BIR for the preceding CY which
should not be earlier than 2 years from the date of bid
submission.

ELIGIBILITY REQUIREMENTS

Class B Documents
Valid joint venture agreement (JVA) in case a joint
venture is already in existence.
In the absence of JVA, duly notarized
statements from all the potential joint venture
partners stating that they will enter into and abide
by the provisions of the JVA in the instance the the
bid is successful.

SHORT LISTING
Example of Short listing Criteria and Weights:
1.

Applicable experience of Consultants

30%

2.

Qualification of personnel to be assigned

to the job (education, work experience,
number of years in firm, etc.)

50%

3.

Current workload relative to capacity

20%

LETTER OF INVITATION TO BID

(FOR SHORT LISTED FIRMS)

List of short listed Consultants

Facsimile number of procuring entity

Signature, name and title of procuring entitys

representative

SUBMISSION AND OPENING OF

BIDS
The first envelope shall contain the following
technical information / documents:
1.
2.
3.
4.

5.

The Bid Security in the prescribed from,

amount & validity period;
Organizational chart for the contract to be
bid;
List of completed and on-going projects;
Approach, work plan, and schedule (for
architectural
design,
submission
of
architectural plans and designs shall not
required during the consultants selection
process)
List of key personnel to be assigned to the
contract to be bid, with their complete
qualification and experience data

6. Sworn statement as to the following:

It is not blacklisted;
Each of the documents is an authentic copy;
It is authorizing the HOPE to verify the
documents submitted;
The signatory is the duly authorized and
designated representative;
It complies with Disclosure Provision;
It complies with the responsibilities of a
prospective or eligible bidder provided in the
PBDs; and
It complies with existing labor laws and standards

Contents of the Financial Proposal:

1.

Remuneration cost indicating basic salary,

overhead cost, social charges, management fee
and billing rate

2.

Reimbursable cost

3.

Other items as may be required in the Bidding

Documents

PRELIMINARY EXAMINATION OF
TECHNICAL PROPOSAL

Opening the Technical Envelopes which contain

the Technical Proposal to ascertain compliance
with the submission requirements

A non-discretionary pass/fail criteria shall be

used

A checklist of required documents shall be used

EVALUATION OF BIDS

After Preliminary Examination of Technical

Proposals, BAC conducts Detailed Evaluation of
the Technical Proposals

Purpose is to determine the Highest Rated Bid

(HRB), by:
1.

2.

Detailed evaluation of bids of short listed

consultants using numerical ratings based on
the Quality-Based Evaluation (QBE) or
Quality-Cost
Based
Evaluation
procedure(QCBE); and
Ranking of bidders based on numerical ratings
from highest to lowest

EVALUATION OF BIDS

QBE is applied for:

1.

2.

Complex or highly specialized assignments for

which it is difficult to precisely define the TOR
and the required inputs from the consultants
Assignment can be carried out in substantially
different ways, such that the proposals are not
comparable

QCBE is applied in all other cases

EVALUATION OF BIDS

Quality Based Evaluation (QBE)

Simultaneous submission of both Technical and

Financial proposals in separate sealed envelopes
Considers only the Technical Proposals in the ranking
of consultants
Considered as 2-Stage Procedure, where Technical
proposals shall be evaluated first and the consultants
ranked, before the Financial Proposal of the bidder
with the HRB is opened
First-in-rank consultant shall be invited for contract
and financial negotiations. If financial negotiations
with the Consultant with the highest technical score
fails, the procuring entity shall negotiate with the
Consultant with the second highest technical score
The financial proposal shall not exceed the ABC
The Financial Proposal shall be deemed to include the
cost of all taxes, duties, levies, and other charges

EVALUATION OF BIDS (QBE)

Bids are rated numerically. This is done either

Individually Each BAC member assigns

numerical rates to a proposal (ranging from 1 to
100), these rates are tabulated, and then the
highest and lowest rates are disregarded. This
step is done to remove the possibility of 1 BAC
member unduly influencing the results of the
bidding

Collegially The BAC members evaluate the

proposals, deciding as a group. The rate obtained
by a proposal is the consensus of the BAC
members involved in the evaluation

EVALUATION OF BIDS (QBE)

Example of Bases of Technical Evaluation:

Quality

of

- 10%
Experience and Capability of the Consultant

- 30%
Plan

of

Approach

Personnel

and

Methodology

- 60%

Note: The BAC shall assign numerical weights to

each of the above criteria indicated in the bidding
documents

EVALUATOR

FIRM 1

FIRM 2

FIRM 3

FIRM 4

FIRM 5

95

75

84

83

84

84

88

86

81

82

84

86

85

79

84

83

85

84

79

82

84

87

86

80

83

AVERAGE
(5E)

86.0

84.2

85.0

80.4

83.0

RANK

EVALUATOR

FIRM 1

FIRM 2

FIRM 3

FIRM 4

FIRM 5

95

75

84

83

84

84

88

86

81

82

84

86

85

79

84

83

85

84

79

82

84

87

86

80

83

AVERAGE
(3E)

84

86

85

80

83

RANK

EVALUATOR

FIRM 1

FIRM 2

FIRM 3

FIRM 4

FIRM 5

95

75

84

83

84

84

88

86

81

82

84

86

85

79

84

83

85

84

79

82

84

87

86

80

83

AVERAGE
(5E)

86.0

84.2

85.0

80.4

83.0

RANK

AVERAGE
(3E)

84

86

85

80

83

RANK

EVALUATION OF BIDS (QBE)

FINANCIAL NEGOTIATIONS

Review of Remuneration Rates

Salary
Bonus
Social Costs
Cost of Leave
Overheads
Fee or Profit
Away from Headquarters Allowance
Subsistence Allowances
Reimbursables
Bank Guarantee

EVALUATION OF BIDS (QCBE)

Quality - Cost Based Evaluation
Ranking is based both on the Technical and Financial
Proposals

Technical and Financial proposals are given

corresponding weights

The weights of both the Technical and financial

criteria may be determined in the pre-bid
conference, and together should be equivalent
to 100%

EVALUATION OF BIDS (QCBE)

Ranking

is based both on the Technical and

Financial Proposals

Technical

and Financial proposals shall be given

corresponding weights

Financial proposal shall be given weights of 15% up

to maximum of 40%

EVALUATION OF BIDS (QCBE)

Opening of Technical Proposals (TPs)

Firms

whose TPs did not meet the minimum

qualifying score will have their financial proposals
(FPs) returned unopened

EVALUATION OF BIDS (QCBE)

Opening of Financial Proposals (FPs)

Only firms whose TPs meet the qualifying
shall be invited to the opening of FPs

score

Name of firm, quality scores and prices of FPs are

read aloud and recorded

EVALUATION OF BIDS

The financial scores shall be computed as follows:

SF = 100 x FL/F

The

proposal shall be ranked according to their

combined technical and financial scores using the
weights indicated in the BDS

Where special tax privileges are granted, the amount

of such tax privileges shall be included in the FP for
purposes of comparative evaluation of proposals

Unless otherwise indicated in the BDS, the Financial

Proposal shall not exceed the ABC

IRR HIGHLIGHTS

Ceiling for Bid Prices (Sec. 31)

Enumerated

conditions for application of ABC as

ceiling for foreign-funded procurement

Definition of ABC includes estimated contract cost

in the case of foreign-funded procurement [Sec.

5(b)]

EVALUATION OF FINANCIAL
PROPOSALS (QCBE)

The financial scores shall be computed as follows:

SF = 100 x FL/F
Where:
SF - financial score of the FP under
consideration
FL -

price of the lowest

F - price of the financial

consideration

financial proposal
proposal under

EVALUATION OF FINANCIAL
PROPOSALS (QCBE)
Lowest financial proposal is given 100 points
Other financial proposals are scored as follows:
FL (lowest financial proposal)
F (financial proposal under consideration)

Example
P 1.0 million
P 1.0 million

P 1.0 million
P 1.2 million

P 1.0 million
P 1.1 million

P 1.0 million
P 1.3 million

FIRM

TECHNICAL FINANCIAL
SCORE
SCORE
(75%)
(25%)

100

91

83

77

71

FINAL
SCORE

RANK

EVALUATION OF FINANCIAL
PROPOSALS (QCBE)
S = St x T% + Sf x F%
Where S is the total combined scores of the
TP and FP
The

proposal shall be ranked according to

their combined technical and financial
scores using the weights indicated in the
BDS.

FIRM

TECHNICAL FINANCIAL
SCORE
SCORE
(75%)
(25%)

84

100

86

91

85

83

80

77

83

71

FINAL
SCORE

RANK

FIRM
1
2

TECHNICAL FINANCIAL
SCORE
SCORE
(75%)
(25%)

84 x .75

100 x .25

= 63

= 25

= 22.75

87.25

= 20.75

84.50

79.25

80.00

80 x .75 = 77 x .25
60

88.00

85 x .75 = 83 x .25
63.75

RANK

86 x .75 = 91 x .25
64.50

FINAL
SCORE

= 19.25

83 x .75 = 71 x .25
62.25

= 17.75

EVALUATION OF BIDS

Prohibition on communication w/ bidders until

award of contract
Bid Evaluation shall not be more than 21 c.d.
BAC shall disqualify a consultant if:

It provides for a required item but does not

indicate a price for its, but if it specifies a 0 or
dash for an item, this would mean it is being
offered for free
Its corrected price exceeds the ABC

Within 3 calendar days from receipt by the bidder of the

notice from the BAC that the bidder has the LCB or
HRB, the bidder shall submit the ff. documentary
requirements to the BAC:
a)Tax clearance;
b) Latest income and business tax returns;
c)Certificate of PhilGEPS Registration; and
d)Other appropriate licenses and permits required by
the law and stated in the Biding Documents
Failure to submit the above req. on time or a finding
against the veracity of such shall be ground for the
forfeiture of the bid security and disqualify the bidder for
award.

NEGOTIATION

Negotiation shall cover:

1.
2.
3.
4.
5.
6.

Discussion and clarification of the TOR

Discussion and finalization of the methodology and
work program
Consideration of the qualifications of personnel and
their compensation
Discussion on the facilities and date to be provided
by the procuring entity
Discussion of the Financial Proposal (not applicable
for QCBE)
Provisions of the ensuing Contract

Except for meritorious reasons, negotiations with

any 1 consultant should be done within 10 c.d.

NEGOTIATION

No substitution during contract negotiations

No replacement after contract award until 50% of
personnel man months have been served
Shall include clarification of the firms tax liability in
the Philippines
For QCBE, no financial negotiations shall be
undertaken

IRR HIGHLIGHTS

Post-qualification (Sec. 34)

Submission

of the ff documents:

Tax clearance
Latest income and business tax returns
Certificate of PhilGEPS registration
Other appropriate licenses and permits required
by law and stated in the Bidding Documents.

POST-QUALIFICATION

To determine whether bidder with HRB complies

with and is responsive to all requirements and
conditions of eligibility and the bidding of the
contract to be declared the Highest Rated and
Responsive Bid (HRRB)
A non-discretionary criteria shall be used to
Verify, Validate and Ascertain all statements and
documents
To be accomplished
determination of HRB

within

c.d.

from

POST-QUALIFICATION

Post-Qualification Criteria:
1. Legal
Requirements Legal documents
submitted by bidder as part of Eligibility
Requirements
2. Technical Requirements Compliance of the
consulting services it offered with the
requirements of the contract and bidding
documents. Also includes the bidders bid
security, competence, experience, the competence
and experience of its key personnel, and list of
on-going projects
3. Financial Requirements Covers the audited
financial statement, income tax returns and
financial proposal

AWARD OF CONTRACT

The contract shall be awarded to the bidder with

the HRRB at its submitted price or calculated
price, whichever is lower. In the case of QBE, the
award shall be based on the negotiated price or
submitted price, whichever is lower
Notice of Award should be issued by Head of
Procuring Entity within 7 c.d. from date of
determination of HRRB (25 c.d. for GOCCs)
Duration from opening of bids to award of contract,
not to exceed 102 c.d.

IRR HIGHLIGHTS

Notice of Award (Sec. 37)

Conditioned

on the following:

If joint venture, submission of JVA

If
foreign-funded and stated in treaty,
international or executive agreement, PCAB
License
Posting of Performance Security
Signing of Contract
If required, approvals by higher authority

SINGLE RATED AND

RESPONSIVE BID

A Single Rated and Responsive Bid shall be

considered for award if:
1.
2.

3.

After advertisement only 1 submits an EOI and/or

applies for eligibility
More than 1 submits an EOI and/or applies for
eligibility and submits but only 1 meets the
requirements
More than 1 meets the eligibility requirements but
only 1 submits a bid

ABC should reflect most advantageous

prevailing price for the Government

CONTRACT SIGNING, APPROVAL

AND NOTICE TO PROCEED

Both parties must sign the contract within 10 c.d.

from receipt by the winning bidder of the Notice of
Award
If further approval of a higher authority is required
after contract signing, period of 15 c.d. (25 c.d. for
GOCCs and GFIs) is given to approve or disapprove
it. Otherwise it shall be deemed approved
Notice to Proceed should be issued together with a
copy of the approved contract within 3 c.d. from
date of approval of the contract

Thank You