Bidding Procedures for the procurement of Goods and Infrastructure Projects

General purpose:

Determine readiness of procurement and criteria

Conducted prior to advertisement/posting of the ITB/REI

Mandatory – above Php. 2 M (Goods) - above Php. 5 M (Infra)

Attended by the ff:a) BAC d) BAC Secretariatb) TWG e) End-user unit/Other officialsc) Consultants

Pre-BidConference

Opening ofTechnical Proposal

(incl. eligibility docs)Opening of

Financial Proposal

Bid Evaluation Post-qualification

Bidding ProcessAdvertise/

Post Invitation to

Bid

Distribution of Bid Docs

Bid Submissio

n

Contract

Award

3 months

IAEB to Invitation to Bid (goods and infra) or Request for Expression of Interest (consulting)

Includes posting in the website prescribed by the foreign government/foreign or international financing institution, for foreign-funded procurement

Posting at PE’s internet service provider’s website not necessary

Posting requirements for alternative methods of procurement was transferred to Sec. 54.2

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ADVERTISEMENT/POSTING OF ADVERTISEMENT/POSTING OF THE INVITATION TO BIDTHE INVITATION TO BID

Medium≤ 2 M

(goods) ≤ 5 M (infra)

2 M (goods)> 5 M (infra)

Frequency

Newspaper Once in 1 newspaper

PhilGEPS Continuously

Until Bid Submission

Website of Procuring Entity

Continuously Until Bid

Submission

Conspicuous place Continuously

Until Bid Submission

Distribution of Bidding Documents

Deleted provisions on the bidder’s responsibilities under Sec. 17.7 & transferred to PBDs

Period for the availability of bidding documents Goods & infra projects

IB’s date of advertisement - bid submission

4th Edition of Standard Bidding Documents - approved by the GPPB through Res. No. 06-2010, dated 17

December 2010- Mandatorily to be use last 21 February 2011.

DISTRIBUTION OF BID DOCSDISTRIBUTION OF BID DOCS

Distribution of Bidding Documents

Post at the PE’s website and at the PhilGEPS from the time the ITB/REI is advertised.

Prospective bidders may download the bidding documents

Pay the bid fee upon bid submission

Cost for the sale of bidding shall be in a reasonable amount to recover the cost of its preparation and development.

DISTRIBUTION OF BID DOCSDISTRIBUTION OF BID DOCS

Forum where the PE’s representatives & the bidders discuss the different aspects of the project

Mandatory – ABC 1M or more; Discretionary – ABC less than 1M

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 bid docs

Held at least 12 cd before deadline for bid submission. May be extended to at least 30 cd considering: Method, nature, and complexity of contract International participation is more advantageous

At the option of procuring entity, only bidders who purchased bid documents are allowed to attend or ask questions

Request for clarifications must be submitted at least 10 cd before bid submission

Supplemental/Bid Bulletins must be issued at least 7 cd before bid submission to answer requests for clarification/interpretation, and upon BAC’s initiative to clarify/modify any bid docs’ provision

Posted in PhilGEPS and PE’s website

Supplemental Bid Bulletin shall be duly signed by the BAC Chairperson

Bidders who have submitted bids before issuance of Supplemental/Bid Bulletin have to be informed in writing and allowed to modify/withdraw their bids.

SUPPLEMENTAL BID BULLETINSUPPLEMENTAL BID BULLETIN

Goods and Infra:

Two-Envelope System 1st Envelope - Eligibility Req. & 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

Documentary requirements trimmed down

Category Maximum Period (cd)

Goods 45Infra (50M and below) 50

OPENING AND EVALUATION OF OPENING AND EVALUATION OF BIDSBIDS

A bidder may modify or withdraw its bid provided this is done before the deadline for the submission and receipt of bids

Bid modifications received after the deadline shall not be considered and shall be returned to the bidder unopened.

Withdrawal of bids after the applicable deadline shall be subject to appropriate sanctions

Contents of the 1st Envelope (Technical Component)

1. Eligibility requirements2. Bid security3. Goods - Technical specifications

- production/delivery schedule;- manpower requirements; and/or,- after-sales service/parts

Infra - Project Requirements - Organizational chart; - List of contractor’s personnel; and;- List of contractor’s equipment units)

Contents of the 1st Envelope (Technical Component)

4. Omnibus sworn statement Non-inclusion in blacklist Authenticity of documents Verification authority Signatory’s authority Disclosure of relations Responsibilities of bidders Labor laws and standards

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Reduced to 5-6 documents

Others to be submitted during – Post-qualification Prior to Award of Contract

ELIGIBILITY REQUIREMENTSELIGIBILITY REQUIREMENTS

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Class “A” Eligibility DocumentsGOODS INFRASTRUCTURE

1. DTI/SEC/CDA Registration or other proofs of registration, expressly enumerated in bid docs

1. DTI/SEC/CDA Registration or other proofs of registration expressly enumerated in the bid docs

2. Mayor’s permit from principal place of business

2. Mayor’s permit from principal place of business

3. Statement of all ongoing & completed contracts

3. Statement of all ongoing & completed contracts

4. Audited financial statement 4. Valid PCAB license & registration

5. NFCC computation or CLC 5. Audited financial statement

6. NFCC computation or CLC


Class “B” Eligibility Documents

If Joint Venture - JVA or sworn statements by each partner that

they will enter into and abide by provisions of the JVA if awarded the contract

Each JV partner shall submit the legal eligibility docs.

Submission of the technical and financial eligibility docs. by any of the JV partners constitutes compliance

Failure to enter into a JV in the event of contract award shall be a ground for bid security forfeiture.


Legal Eligibility Criteria – Goods (Sec. 23)

General rule: 60% Filipino

Foreign bidders eligible allowed – If stated in treaty or international or executive

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

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ELIGIBILITY CRITERIAELIGIBILITY CRITERIA

Legal Eligibility Criteria - Infra (Sec. 23)

General rule: 75% Filipino (LOI 630)

Foreign contractors allowed if stated in treaty or international or executive agreement

If joint venture, less than 75% is allowed if Structures to be built require techniques not

possessed by 75% Filipinos Not less than 25% Filipino

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Technical Eligibility Criteria – Goods (Sec. 23)

General Rule Exceptions Require the ff.:1. Expendable

Supplies• 25% of the

ABC

2. Services and Non-expendable Supplies• 50% of the

ABC

If, at the outset and after market research, applying the general rule will likely result to:

1.Failure of bidding; or2.Monopoly

a) At least 2 similar contracts aggregate amount at least equivalent to required percentage; and

b) Largest of the similar contracts amounts to at least 50% of required percentage

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Technical Eligibility Criteria - Infra (Sec. 23)

Track Record: Single Largest Contract Retain at 50% But w/in 10 yrs from bid submission

Contractors under Small A and B categories w/out similar experience on the contract may bid if the contract cost is not more than 50% of the ARCC of their registration.

PCAB License (RA 4566) to engage or act as a contractor

Satisfactory CPES Rating and/or certificate of completion and owner’s acceptance

Contract shall be considered “similar” if it has the same major categories of work 21


Financial Eligibility Criteria – Goods and Infra (Sec. 23)

NFCC at least equal to ABC

CLC at least equal to 10% of ABC Issued by Universal or Commercial Bank For LGUs: other banks certified by BSP as

authorized to issued said CLC

Option to submit cash deposit certificate deleted

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Contents of the 2nd Envelope (Financial Component)

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, SEC, or CDA, if claiming preference as Domestic Bidder or Domestic Entity

3. Other documents required in the bidding documents

Deleted certified check and foreign government guarantee from acceptable forms

In general, bank issued securities must be issued by a universal/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

Bidder has option to choose among acceptable forms of security

Procuring entity may not limit options available to bidders

BID & PERFORMANCE BID & PERFORMANCE SECURITYSECURITY

Form of Bid and Performance

Security

Amt of Bid Security

(% = ABC)

Amt of Performance Security

(% = Contract Price)

a)Cash or cashier’s/manager’s check 2% 5% (Goods & Consulting)

10% (Infra)b)Bank guarantee/draft or Irrevocable LC

c)Surety bond callable upon demand

5% 30%

d)Combination of the foregoing Proportionate to share of form with respect

to the total amount of security

BID & PERFORMANCE BID & PERFORMANCE SECURITYSECURITY

No contact rule BAC, thru Secretariat, may request for clarification of

bid as long as it is in writing Determine the LCB by1. Establishing correct calculated prices of bids; and2. 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 infra. Proj. costing 50M and below – 5 cd

DETAILED EVALUATION OF DETAILED EVALUATION OF BIDSBIDS

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

DETAILED EVALUATION OF DETAILED EVALUATION OF BIDSBIDS

Verify, validate and ascertain the following: Legal Requirements 1. licenses and agreements2. 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 proposal2. NFCC computation3. credit line or cash deposit certificate, to ensure that

bidder can sustain the operating cash flow transaction Completed in 7 cd. But, may be extended by the HOPE to

not more than 30 cd

POST-QUALIFICATIONPOST-QUALIFICATION

3 days from notice of LCB, submit the ff: Tax clearance Latest income and business tax returns Certificate of PhilGEPS registration Other appropriate licenses & permits required by

law & stated in the Bid Docs.

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POST-QUALIFICATIONPOST-QUALIFICATION

Disclosure of Relations (Sec. 47)

Relatives within the 3rd civil degree of the following shall be disqualified:

Head of the procuring entity Members of the BAC, Secretariat and TWG Head of the end-user unit/PMO Project consultants

DISCLOSURE OF RELATIONSDISCLOSURE OF RELATIONS

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 NOA 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 (within 10 cd) If required, approvals by higher authority 3 mos. - procurement process from opening of bids up to

award of contract or a shorter period

ISSUANCE OF NOTICE OF ISSUANCE OF NOTICE OF AWARDAWARD

NOA posted within 3 cd from its issuance in the following: a) PhilGEPS website;

b) PE’s website; and

c) Conspicuous places

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ISSUANCE OF NOTICE OF ISSUANCE OF NOTICE OF AWARD AWARD

Contract Signing (Sec. 37.2)

Within 10 cd from receipt of NOA

Mandatory submission of other contract documents that may be required by existing laws and/or the PE (infra):

a) Construction schedule and S-curve;b) Manpower schedule;c) Construction methods;d) Equipment utilization schedule;e) Construction safety and health program

approved by DOLE; and,f) PERT/CPM

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CONTRACT SIGNINGCONTRACT SIGNING

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 and PE’s website within 15 cd from issuance of NTP

NOTICE TO PROCEEDNOTICE TO PROCEED

BAC shall declare a failure of bidding when No bids are received All bidders are declared ineligible All bids fail to comply with the bid requirements or fail

post-qualification LCRB/HRRB refuses, without justifiable cause, to

accept award of contract and no award is made

Mandatory review after each failed bidding. Based on findings

Revise terms, conditions, specifications Adjust ABC, subject to required approvals

Rebid, with re-advertisement/posting

FAILURE OF BIDDINGFAILURE OF BIDDING

Procurement Timelines

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Timelines for the Procurement of Goods (Annex C) – Latest Allowable Time

Timelines for the Procurement of Infrastructure Projects with an ABC of Php. 50 Million and below (Annex C) – Latest Allowable Time

Timelines for the Procurement of Goods and Infrastructure Projects (Annex C) – Earliest Possible Time

Contract Implementation

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Type Period Form Percentage of Contract Price

Expendable 3 mos., unless earlier

consumed

Special bank guarantee or

Retention money

10%

Non-expendable 1 year

Services None None None

Form of Warranty Security Amt of Warranty Security

(% of Contract Price)

a)Cash or LC from a Universal/Commercial Bank

5%

b) Bank guarantee from Universal/Commercial Bank

10%

c) Surety bond callable upon demand issued by GSIS or a surety/insurance company certified by the Insurance Comm.

30%

WARRANTY SECURITY (INFRA)

Warranty Security – Infra (Sec. 62)

Warranty period vs. Warranty security period Warranty security period reduced to 1 year

from issuance of the Certificate of Final Acceptance

Liability per stage From project construction to final acceptance From project completion to final acceptance From final acceptance to warranty security period

PLAN /BUDGET

START ACCEPT ENDEnd of

W SCOMPLETE

BID

Security

WARRANTY

Security

PERFORMANCE

Security

1 yr 1 yr

PRECON

Period

IMPLEMENTATION

PeriodWARRANTY

Period

Defect /

liability

Period

PROJECT CYCLE / MILESTONES

• CARICARI• PaymentsPayments- Advance- Advance- Progress- Progress

- Final- Final- Retention money- Retention money

GOODS : Supplier 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 reaches 10% of the contract amount, PE shall automatically rescind the contract and impose appropriate sanctions over and above the liquidated damages

General Rule: Made only after President’s prior approval and

shall not exceed 15% of the contract price

Exceptions: Single advance payment not to exceed 50%

of the contract price for the ff. services: Hotel and restaurant services Use of conference/seminar and exhibit areas Lease of office space

Exceptions: (Cont.)ΘAdvance payment not to exceed 15% allowed to address contingencies arising from natural or man-made calamities in areas where “state of calamity” has been declaredΘ15% of the contract price shall be paid within 60 days from signing of contract and upon submission of a claim and a irrevocable standby letter of credit (Memorandum Order No. 15 dated May, 2011)

Requirements:

Written request from the contractor Submission of an irrevocable standby

letter of credit of equivalent value from a commercial bank, bank guarantee, or surety bond

Amount not to exceed 15% of the contract price subject to recoupment every progress billing

Progress payments subject to 10% retention money

Conditions Deducted until 50% of the works has been

completed

If after 50%, work is satisfactory and on schedule, no additional retention is made, otherwise 10% shall be imposed

Total retention is due for release upon issuance of a certificate of final acceptance

PROGRESS PAYMENT (INFRA)

Allowed as long as stated in bid docs

Bid docs shall identify portions of the contract which may be subcontracted which shall not exceed the maximum percentage limitations

Goods – no limit Infra – 50%

Subcontracting shall not relieve the principal from any liability or obligation

SUB-CONTRACTING

Subcontractor may be identified at any stage of the bidding process or during contract implementation

Subcontractors must comply with the eligibility criteria and documentary requirements as specified by the PE in their bid docs

Proposed sub-contractor may be changed during contract implementation upon HOPE’s approval.

SUB-CONTRACTING

If sub-contractor is ineligible, sub-contracting shall be disallowed.

If subcontractor is disclosed during bid submission, bidder shall include the required documents as part of the bid’s technical component.

SUB-CONTRACTING

- THANK YOU -

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