Revised Implementing Rules and Regulations

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Revised Implementing Rules and Regulations

Republic Act No. 9184

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IRR Highlights

Background Harmonization

Alignment with International Best Practices

Application of Domestic Preference AO 227, Flag Law

Learning from Experience Concerns raised by procuring entities, bidders and

observers

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IRR Highlights

Scope and Application (Sec. 4)

All domestically-funded procurement activities

All foreign-funded procurement activities, unless otherwise stated in the treaty, international or executive agreement But procurement funded thru foreign grants are

excluded

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IRR Higlights

Scope and Application (Sec. 4)

GOP negotiating panels shall: Adopt as default position, use of the IRR or selection

thru competitive bidding Explain in writing if treaty, international or executive

agreement states otherwise

IRR now includes definition of treaty, international or executive agreements, foreign loans & grants

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IRR Highlights Procurement Planning (Sec. 7)

End-user units shall prepare their PPMP which shall be submitted to the budget office

Budget office to evaluate and include in budget proposal for approval of HOPE

Upon approval, budget office shall furnish a copy of budget proposal and PPMP to BAC Secretariat

BAC Secretariat shall review and consolidate into the proposed APP

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IRR Highlights

Procurement Planning (Sec. 7)

Upon approval of GAA/corporate budget/ordinance, end-user shall revise/adjust PPMP and submit to BAC Secretariat

BAC shall finalize modes of procurement under the proposed APP

APP shall be approved by HOPE or 2nd ranking official designated by HOPE

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IRR Highlights

Bids and Awards Committee (Sec. 11)

Alternate BAC member allowed: Same qualification and term as principal Attend meetings and receive honoraria Accountability limited to their acts and decisions

Honoraria for BAC Secretariat subject to DBM Rules

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IRR Highlights

Observers (Sec. 13)

Allows observers from cooperatives

Requires 3 days’ prior written notice for invitation of observers

Requires observers to inhibit in case of actual or potential conflict of interest

Access to documents upon signing of a confidentiality agreement

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IRR Highlights

Advertising of Invitation to Bid (Sec. 21)

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

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IRR Highlights

Pre-Bid Conference (Sec. 22)

May be extended at least 30 cd before bid submission Method, nature and complexity of contract International participation is more

advantageous

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

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IRR Highlights

Eligibility Requirements (Secs. 23 & 24)

Reduced to 5-6 documents

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

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IRR Highlights

Eligibility Requirements (Secs. 23-24)

Class “A” Documents Legal, Technical & Financial

Class “B” Documents: 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

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IRR Highlights

Eligibility Requirements (Secs. 23 & 24)

Registry System Manual or electronic Class “A” documents (legal, technical & financial) Maintained current and updated Certification in lieu of eligibility documents

Letter of Intent/Application for eligibility or updates Deadline stated in bid documents

Not later than date of bid submission Documents submitted after shall not be considered

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IRR Highlights

Submission and Receipt of Bids (Sec. 25)

Two-envelope system (Eligibility Documents included in Technical Proposal)

Documentary requirements trimmed down

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IRR Highlights

Submission and Receipt of Bids (Sec. 25)

Project related statements lumped into one document

Harmonize with blacklists of recognized IFIs

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IRR Highlights 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

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IRR HighlightsForm of Bid and

Performance SecurityAmt of Bid Security

(% = ABC)Amt of Performance

Security (% = Contract Price)

a) Cash, cashier’s/manager’s check

2%5% (Goods & Consulting)

10% (Infra)

b) Bank guarantee/draft, 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

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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)]

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IRR Highlights

No Contact Rule (Sec. 32)

BAC, thru Secretariat, may request for clarification of bid as long as it is in writing

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IRR Highlights

Post-qualification (Sec. 34)

3-days from notice of lowest calculated/highest rated bid, submit 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.

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IRR Highlights

Failure of Bidding (Sec. 35)

Mandatory review after each failed bidding

Based on findings Revise terms, conditions, specifications Adjust ABC, subject to required approvals

Rebid Invite previous bidders

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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

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IRR Highlights

Disclosure of Relations (Sec. 47)

Relatives within the third 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 or project management

office Project consultants

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IRR Highlights

Alternative Methods of Procurement

(Secs. 48 to 53)

Alignment with international best practices Recognized additional instances of Negotiated

Procurement (e.g., procurement from UN Agencies, Community Participation)

Increase in shopping/small value procurement thresholds

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IRR Highlights

Alternative Methods of Procurement

(Secs. 48 to 53)

Address concerns raised by stakeholders Clearer rules on negotiated procurement due to 2-

failed bidding Increase in thresholds Lease of venue

Format changes

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IRR Highlights

Effectivity 2 September 2009

30 days from publication in the Official Gazette (3 August 2009)

Transitory When was Invitation to Bid/Request for

Expression of Interest published?

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IRR Highlights

Philippine Bidding Documents www.gppb.gov.ph Approved last 30 September 2009

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Thank you

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