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Salient IRR Revisions Procurement of Infrastructure

Revised IRR RA 9184 (Infra)

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Page 1: Revised IRR RA 9184 (Infra)

Salient IRR Revisions

Procurement of Infrastructure

Page 2: Revised IRR RA 9184 (Infra)

IRR Revisions: Infra

Eligibility Requirements (Sec. 23)

Legal Documents DTI / SEC / CDA Registration Mayor’s permit for principal place of business

Technical Documents Statement of all on-going and completed contracts PCAB license and registration

Unless otherwise stated in treaty or international or executive agreement

Page 3: Revised IRR RA 9184 (Infra)

IRR Revisions: Infra Eligibility Requirements (Sec. 23)

Financial Documents Audited Financial Statement received by the BIR NFCC computation or Credit Line Commitment from

a universal or commercial bank For LGUs, other banks authorized by BSP to issue said

instrument

Page 4: Revised IRR RA 9184 (Infra)

IRR Revisions: Infra Eligibility Requirements (Sec. 23)

If Joint Venture - JVA If no JVA, sworn statements by each partner that

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

Page 5: Revised IRR RA 9184 (Infra)

IRR Revisions: Infra

Eligibility Criteria (Sec. 23)

Legal Eligibility General rule: 75% Filipino (LOI 630) If joint venture, less than 75% is allowed if -

Not less than 25% Filipino Structures to be built require techniques not

possessed by 75% Filipinos Foreign contractors allowed if stated in treaty

or international or executive agreement

Page 6: Revised IRR RA 9184 (Infra)

IRR Revisions: Infra

Eligibility Criteria (Sec. 23)

Technical Eligibility PCAB License (RA 4566) Satisfactory CPES rating and/or certificate of

completion and acceptance

Page 7: Revised IRR RA 9184 (Infra)

IRR Revisions: Infra

Eligibility Criteria (Sec. 23)

Technical Eligibility Track Record: Single Largest Contract for Infra

Retain at 50% But within a period of ten years

For foreign funded procurement, a different track record may be agreed upon

Page 8: Revised IRR RA 9184 (Infra)

IRR Revisions: Infra

Eligibility Criteria (Sec. 23)

Financial Eligibility NFCC at least equal to ABC Credit Line Certificate at least equal to 10% of

ABC Issued by Universal or Commercial Bank For LGUs: other banks certified by BSP as authorized

to issue said CLC Option to submit cash deposit certificate

deleted

Page 9: Revised IRR RA 9184 (Infra)

IRR Revisions: Infra

Submission and Receipt of Bids (Sec. 25)

Two-Envelope System (Eligibility requirements included in the Technical Proposal)

Technical (including eligibility requirements) and Financial Proposals will now be submitted at the same time

Page 10: Revised IRR RA 9184 (Infra)

IRR Revisions: Infra

Submission and Receipt of Bids (Sec. 25)

First Envelope Eligibility requirements Bid security Project requirements Omnibus sworn statement

Page 11: Revised IRR RA 9184 (Infra)

IRR Revisions: Infra

Submission and Receipt of Bids (Sec. 25)

Second Envelope Financial information/documents specified in

the Philippine Bidding Documents

Page 12: Revised IRR RA 9184 (Infra)

IRR Revisions: Infra

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.

Page 13: Revised IRR RA 9184 (Infra)

IRR Revisions: Infra

Notice of Award (Sec. 37)

Conditioned on the following: If joint venture, submission of JVA If foreign-funded and stated in treaty or

international or executive agreement, PCAB License

Posting of Performance Security Signing of Contract If required, approvals by higher authority

Page 14: Revised IRR RA 9184 (Infra)

IRR Revisions: Infra Bid & Performance Securities (Secs. 27 & 39)

Deleted certified check 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

Page 15: Revised IRR RA 9184 (Infra)

IRR Revisions: InfraForm of Bid and

Performance SecurityAmt of Bid Security

(% of the ABC)Amt of Performance

Security (% of Contract Price)

a) Cash, cashier’s/manager’s check, bank guarantee/ draft 2% 10%

b) 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

Proportionate to share of form with respect to the total amount of security

Page 16: Revised IRR RA 9184 (Infra)

IRR Revisions: Infra

Warranty Security (Sec. 62) Warranty period vs. Warranty security

period Warranty security period reduced to 1 year Liability per stage

From project construction to final acceptance From project completion to final acceptance From final acceptance to warranty security

period

Page 17: Revised IRR RA 9184 (Infra)

IRR Revisions: Infra

Liquidated Damages (Sec. 68)

Adopted formula of Goods One-tenth of one percent (1%) of the cost of

the unperformed portion for every day of delay

Page 18: Revised IRR RA 9184 (Infra)

Thank you

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