RA 9184 PCA AMO Course - 61 Pages

7/26/2019 RA 9184 PCA AMO Course - 61 Pages

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PHILIPPINE CONSTRUCTORS

ASSOCIATION

AUTHORIZED MANAGING OFFICERS COURSE

SMX CONVENTION CENTERNOVEMBER 10, 2011

The Government Procurement SystemAn Overview


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What is

Public

Procurement?

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What is Procurement?

Procurement refers to the acquisition

of goods, consulting services, and thecontracting for infrastructure projects byprocuring entity. (Sec. 5(aa), IRR, R.A.

9184)

Procurementmeans the acquisition byany means of goods, construction orservices. (UNCITRAL Model Law on

Procurement)

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Acquisition means the acquiring by

contract with appropriated funds ofsupplies or services (includingconstruction) by and for the use of the

Federal Government through purchaseor lease, whether the supplies orservices are already in existence or mustbe created, developed, demonstrated,and evaluated. (FAR, US)

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Procurement encompasses the whole

process of acquiring property or services.It begins when an agency has identified aneed and decided on its procurement

requirement. Procurement continuesthrough the processes of risk assessment,seeking and evaluating alternativesolutions, contract award, delivery of and

payment for the property or services and,

where relevant, the ongoing managementof a contract and consideration of options

related to the contract. CPG 2008

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Procurement we define as the whole

of life-cycle process of acquisition ofgoods, services and works from thirdparties beginning when a requirement

is first defined and ending with theultimate disposal of an asset or end of aservice contract. (P. Gershon, OGC, UK)

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Value for Money is the optimum

combination of whole of life costs andquality to meet the customersrequirements (P.G.)

It must be governments policy that all

public procurement, should be based onvalue for money, having due regard topropriety and regularity. (P.G.)

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LCC Life Cycle Costing

Cost should consider all coststhroughout the life-cycle acquisitioncost, utility costs (energy/waterconsumption, maintenance), and

disposal costs.

C to Gvis--visC to C

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5 Rights in Public Procurement:

Right Source Right Quality Satisfaction of End-User?

Quality may refer to the overall relationship

and integration of effects of performance,lifespan, integrity, durability, and conformityof the goods with the technical requirements

of the project. Right Quantity (J.I.T / Lean Procurement)

Right Price

Right Time/Delivery

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COA

Legislative

Outdated,fragmentedand

inconsistent

procurementlaws and

regulations

Ombudsman

Judicial

Very fewprocurementcases filed

Very fewconvictions

Lack of trust and confidence in Public Procurement System(CSOs, Peoples Orgs, NGOs, Private Sector)

Executive

No oversightpolicy body

No standardprocurementdocuments

Non-transparentprocurement

process

Lack ofmonitoring

and feedback

mechanism

Pre-Procurement Reform Situation

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PROBLEMS REFORMS

Confusion caused byfragmented legal system

Enactment of theGovernment Procurement

Reform Act (GPRA)

Inconsistent policies, rules,

and regulations due to lackof standards

Creation of the

Government ProcurementPolicy Board (GPPB)

Lack of transparency Use of PhilGEPS

Lack of check and balance Participation of civil society

Problem Areas and Reform Measures

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ImplementingImplementing

Rules andRules andRegulationsRegulations

ExecutiveExecutive

OrdersOrdersAdministrativeAdministrative

IssuancesIssuances

MemorandumMemorandumCircularsCirculars

over 100 procurement rules & regulationsover 100 procurement rules & regulations

Government ProcurementGovernment ProcurementReform ActReform Act

10 January 200310 January 2003

Goods, Infrastructure,Goods, Infrastructure,Consulting ServicesConsulting Services

Coverage:Coverage: NGAsNGAs andand LGUsLGUs

Enactment of GPRA

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Inter-Agency Body

Big procuring entities (defense, education, health, publicworks, transportation and communications)

Oversight agencies (budget, planning, finance, trade,science and technology, interior and local government,energy)

Private Sector

Resource Persons (audit, anti-corruption agencies)

Creation of GPPB

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Policy-Making Amend implementing rules and regulations of

procurement law (quasi-legislative function) Prepare generic procurement manual and standard

bidding forms

Capacity Development Establish a sustainable training program

Monitoring

Assist procuring entities improve their compliance Review effectiveness of procurement law

Creation of the GPPB

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R.A. 9184 Applies to:

a) National Government Agencies (NGAs)

b) State Universities and Colleges (SUCs)

c) Government Owned or Controlled Corporations (GOCCs)

d) Government Financial Institutions (GFIs)

e) Local Government Units (LGUs)

R.A. 9184 governs the procurement of:

a)

Infrastructure Projectsb) Goods (incl. Supplies, Materials, and Related Services)

c) Consulting Services

Application

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Section 4, Revised IRR

All fully domestically-funded procurement activities

All foreign-funded procurement activities, unlessotherwise provided in a treaty or intl/executive

agreement

As may be agreed upon by the GOP and IFI in theirtreaty or intl/executive agreement

Projects funded from foreign grants

Projects for International Competitive Bidding

Consulting Services for National Competitive Bidding

Scope and Coverage

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GOP negotiating panels shall:

Adopt as default position, use of the IRR or selectionthrough competitive bidding

Explain in writing if treaty or intl/executive agreementstates otherwise

Scope and Coverage

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Transparency Wider dissemination of bid opportunities

Competitiveness Equal opportunity to all eligible bidders

Streamlined Process Uniformly applicable to all government agencies Effective and efficient method

System of Accountability Answerable

Public Monitoring

Awareness and vigilance

Governing Principles

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Covers procurement of all government agencies

General Rule is Public/Competitive Bidding

Alternative Methods of Procurement allowed in highly exceptional

cases

Use of the Approved Budget for the Contract (ABC) as ceiling forthe bid price

Use of transparent, objective, and non-discretionary criteria

Increased transparency in the procurement process

Professionalization of procurement officials

Inclusion of Penal and Civil Liabilities

Key Features of GPRA

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G l P i i f R A


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General Provisions of R.A.

9184 and its IRRThe Philippine Government Electronic

Procurement System (PhilGEPS)

PhilGEPS shall serve as the primary and definitivesource of information on all government procurement.

Utilized for the procurement of common-used supplies Features of the PhilGEPS

a) Electronic Bulletin Board

b) Registry of Manufacturers, Suppliers,

Distributors, Contractors and Consultantsc) Electronic Catalogue

d) Virtual Store

e) Electronic Paymentf) Electronic Bid Submission

G l P i i f R A


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General Provisions of R.A.

9184 and its IRRProcurement of Common-Use Supplies,

Materials and Equipment - DBM-Procurement Service (PS)

- DBM-PS Catalogue in the PhilGEPS


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Procurement Methods

All Procurement shall be done through competitivebidding 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 itsIRR

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Procurement Methods

Method Goods Infra Cons

1. Competitive Bidding

2. Limited Source Bidding

3. Direct Contracting

4. Repeat Order

5. Shopping

6. Negotiated Procurement

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Pre-Bid

Conference

Opening of

Technical Proposal

(incl. eligibility docs)

Opening of

Financial Proposal

Bid Evaluation Post-qualification

Pre-

ProcurementConference

Advertisement

and/or

Posting

Bid

Submission

Contract

Award

Bidding Process24


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THANK YOU

Comments, questions?

Address: Unit 2506 Raffles Corporate Center, F.Ortigas Jr. Road, Ortigas Center, Pasig City

Telephone: (+632) 9006741 to 44

Website: http://www.gppb.gov.ph

Email: [email protected]

Forum: http://gppb.topicsolutions.net

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DEFINITION (INFRASTRUCTURE


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DEFINITION (INFRASTRUCTUREPROJECTS)

Include

Construction

Improvement Rehabilitation

Demolition

Repair Restoration Maintenance(Sec. 5.u, IRR of R.A.

9184)

Roads and bridges

Railways Airports and seaports

Communication facilities

Civil works components of IT projects Irrigation Flood control and drainage Water supply Sanitation Sewerage and solid waste management

systems Shore protection Energy/power and electrification

facilities

Buildings (National, School, Hospital) Other related construction projects


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Public Bidding

All Procurement shall bedone through competitive

bidding except as providedin RA 9184

Resort to alternativemethods shall be madeonly in highly exceptionalcases (Sec. 10, R.A. 9184

and its IRR)

Bidding Process


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Pre-Bid

Conference

Opening of

Technical Proposal(incl. eligibility docs)

Opening of

Financial Proposal

Detailed

Bid Evaluation Post-qualification

Bidding Process

Advertisement/Posting

Distribution/ Sale ofBidding Documents

BidSubmission

7 cd1st day of posting to

bid submission

1 cd

12 cd to 30 cd1 cd

7 cd 7 cd to 30 cd

Bidding Process


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Bidding Process

7 cd

Issuance of

a Notice toProceed

ContractSigning

Issuance of Notice

of Award

10 cd 3 cd

ADVERTISEMENT OF THEADVERTISEMENT OF THE


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MediumAbove2M/5M

2M/5Mand below

Newspaper of GeneralNationwide Circulation

PhilGEPS website

PEs Website, if available

Conspicuous Place

Website prescribed by theforeign government/foreign orinternational funding institution,in case of foreign fundedprocurement (Sec. 21.2.1 and21.2.1, IRR of R.A. 9184)

ADVERTISEMENT OF THEADVERTISEMENT OF THE

INVITATION TO BIDINVITATION TO BID

SALE AND DISTRIBUTION OF BID DOCSSALE AND DISTRIBUTION OF BID DOCS


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Period for the availability of bidding documents

Goods & infra projects

IBs date of advertisement - bid submission(Sec. 17.3, IRR of R.A. 9184)

4th Edition of Standard Bidding Documents

- approved by the GPPB through Res. No. 06-2010, dated 17December 2010

- Mandatorily to be use last 21 February 2011.

Post at the PEs website and at the PhilGEPS from thetime the ITB/REI is advertised. (Sec. 17.5, IRR ofR.A. 9184)




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Prospective bidders may download the biddingdocuments (Sec. 17.5, IRR of R.A. 9184)

Pay the bid fee upon bid submission (Sec. 17.5, IRR ofR.A. 9184)

Cost for the sale of bidding shall be in a reasonableamount to recover the cost of its preparation anddevelopment. (Sec. 17.4, IRR of R.A. 9184)


PREPRE BID CONFERENCEBID CONFERENCE


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Forum where the PEs representatives & the biddersdiscuss the different aspects of the project

Mandatory ABC 1M or more; Discretionary ABC lessthan 1M

Statements made during the conference should beincluded in the Supplemental/Bid Bulletin in order to beconsidered as modifications to the terms of the bid docs

Held at least 12 cd before deadline for bid submission. Maybe extended to at least 30 cd considering:

Method, nature, and complexity of contract

International participation is more advantageous (Sec.

22.2, IRR of R.A. 9184)

PREPRE--BID CONFERENCEBID CONFERENCE

PREPRE BID CONFERENCEBID CONFERENCE


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At the option of procuring entity, only bidders who purchased

bid documents are allowed to attend or ask questions (Sec.22.3, IRR of R.A. 9184)

PREPRE--BID CONFERENCEBID CONFERENCE

SUPPLEMENTAL BID BULLETINSUPPLEMENTAL BID BULLETIN


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Request for clarifications must be submitted at least 10cd before bid submission (Sec. 22.5.1, IRR of R.A. 9184)

Supplemental/Bid Bulletins must be issued at least 7 cdbefore bid submission to answer requests forclarification/interpretation, and upon BACs initiative to

clarify/modify any bid docs provision (Sec. 22.5.2, IRR ofR.A. 9184)

Posted in PhilGEPS and PEs website (Sec. 22.5.3, IRR of

R.A. 9184)

Supplemental Bid Bulletin shall be duly signed by the BACChairperson (Sec. 22.5.1, IRR of R.A. 9184)




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Bidders who have submitted bids before issuance ofSupplemental/Bid Bulletin have to be informed in writingand allowed to modify/withdraw their bids. (Sec. 22.5.3,IRR of R.A. 9184)


SUBMISSION OPENING ANDSUBMISSION OPENING AND


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Goods and Infra same procedure

In case of infra projects, Technical Proposal, containingthe eligibility requirements, and Financial ProposalEnvelopes will now be submitted at the same time.

Two-Envelope System

1st Envelope - Eligibility Req. & Technical Component

2nd Envelope Financial Component

Submitted to the BAC on the date, time, and placespecified in the Invitation to Bid.

Bids submitted after the deadline should not be accepted

SUBMISSION, OPENING ANDSUBMISSION, OPENING AND

EXAMINATION OF BIDSEXAMINATION OF BIDS



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Date of submission should not be later than the followingperiod from the last day of posting of the Invitation to Bid(Sec. 25.4, IRR of R.A. 9184)

Documentary requirements trimmed down

Category Maximum Period(cd)

Goods 45Infra (50M and

below)50

Infra (above 50M) 65





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A bidder may modify or withdraw its bid provided this isdone before the deadline for the submission and receipt ofbids (Sec. 26.1, IRR of R.A. 9184)

Bid modifications received after the deadline shall not beconsidered and shall be returned to the bidder unopened.(Sec. 26.1, IRR of R.A. 9184)

Withdrawal of bids after the applicable deadline shall besubject to appropriate sanctions. (Sec. 26.2, IRR of R.A.9184)





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Contents of the 1st Envelope (Technical Component)

(Sec. 23.1, IRR of R.A. 9184)

1. Eligibility requirements2. Bid security

3. Goods - Technical specifications

- production/delivery schedule;- manpower requirements; and/or,

- after-sales service/parts

Project Requirements - Infra - ProjectRequirements

- Organizational chart;

- List of contractors personnel; and;- List of contractors equipment units)



SUBMISSION OPENING ANDSUBMISSION, OPENING AND


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Contents of the 1st Envelope (Technical Component)

4. Omnibus sworn statement Project Relatedstatements lumped into one statement

Non-inclusion in blacklist Authenticity of documents

Verification authority Signatorys authority Disclosure of relations Responsibilities of bidders

Labor laws and standards



ELIGIBILITY REQUIREMENTSELIGIBILITY REQUIREMENTS


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GOODS/INFRA (SEC. 23.1, IRR OF R.A. 9184)

Class A Documents

1. DTI/SEC/CDA Registration Certificate or other proofs ofregistration

2. Mayors permit from the bidders principal place of business

3. Statement of ongoing & completed contracts / Valid PCABLicense and Registration for the type and cost of the contract to bebid.

4. Latest audited financial statement stamped received by

the BIR or its duly accredited institution.

5. Net Financial Contracting Capacity Computation / CLC

Class B Document

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




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If foreign bidder (Sec. 23.2, IRR of R.A. 9184)

- Submit equivalent documents issued by the country

of origin - Accompanied by English translation certified by the

appropriate embassy or consular office in thePhilippines

Government corporate entities eligible only if

Legally and financially autonomous

Operate under commercial law

Not dependent agencies of GOP or procuring entity


ELIGIBILITY CRITERIAELIGIBILITY CRITERIA


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Legal Eligibility Criteria

General rule: 60% (Goods) or 75% (Infra) Filipino

Foreign bidders eligible allowed (Sec. 23.5.1.2, IRR ofR.A. 9184)

If stated in treaty or international or executiveagreement

National of a country offering reciprocity rights toFilipinos

Goods not available from local suppliers

To prevent situations that defeat competition orrestrain trade

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Technical Eligibility Criteria (Goods - Sec. 23.5.1.3,IRR of R.A. 9184)

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; or

2.Monopoly

a) At least 2 similar

contracts aggregate

amount at least

equivalent torequired

percentage; and

b) Largest of the

similar contractsamounts to at least

50% of required

percentage

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G C

Eligibility Criteria


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Eligibility Criteria

Technical Eligibility Criteria (Infra, Section 23.5.2.5)

The prospective bidder must have an experience of havingcompleted, within a period of ten (10) years from the date ofsubmission and receipt of bids, at least one (1) contract that issimilar to the contract to be bid, and whose value, adjusted to

current prices using the NSO consumer price indices, must be atleast fifty percent (50%) of the ABC to be bid:

Provided, however, That contractors under Small A and Small Bcategories without similar experience on the contract to be bid maybe allowed to bid if the cost of such contract is not more than fiftypercent (50%) of the Allowable Range of Contract Cost (ARCC) of

their registration based on the guidelines as prescribed by the PCAB.

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Financial Eligibility Criteria

NFCC at least equal to ABC (Sec. 23.5.1.4, IRR)

NFCC = [Current Assets Current liabilities (K)] minusthe value of all outstanding or uncompleted contracts,

including awarded contract not yet started

CLC at least equal to 10% of ABC

Issued by Universal or Commercial Bank

Option to submit cash deposit certificate deleted

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OPENING AND EVALUATION OF BIDSOPENING AND EVALUATION OF BIDS


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Contents of the 2nd Envelope

(Financial Component)

1. Financial Bid Form (includes bid prices and bill ofquantities, as well as applicable price schedules)

2. In case of Goods, Certification from the DTI, SEC, orCDA, if claiming preference as Domestic Bidder orDomestic Entity

3. Other documents required in the bidding documents

(Sec. 25.3, IRR of R.A. 9184)

BID & PERFORMANCE SECURITYBID & PERFORMANCE SECURITY


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Deleted certified check and foreign governmentguarantee from acceptable forms

In general, bank issued securities must be issued by auniversal/commercial bank

Surety Bonds must be accompanied by certification fromInsurance Commission that issuer is authorized to issue

such security

Bidder has option to choose among acceptable forms ofsecurity

Procuring entity may not limit options available tobidders (Sec. 27.2, IRR of R.A. 9184)

BID & PERFORMANCE SECURITYBID & PERFORMANCE SECURITY


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Form of Bid andPerformance Security

Amt of BidSecurity

(% = ABC)

Amt ofPerformance

Security(% = Contract

Price)

a)Cash orcashiers/managers check

2%5% (Goods &Consulting)

10% (Infra)b)Bank guarantee/draft orIrrevocable LC

c)Surety bond callable upondemand

5% 30%

d)Combination of theforegoing

Proportionate to share of formwith respect to the total amount of

security

DETAILED EVALUATION OF BIDSDETAILED EVALUATION OF BIDS


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Determine the LCB by

1. Establishing correct calculated prices of bids; and

2. Ranking calculated total bid prices from lowest tohighest (Sec. 32.3, IRR)

A non-discretionary criteria shall be used, which shall

include consideration of:1. completeness of bids; and

2. minor arithmetical corrections (Sec. 32.2.1, IRR ofR.A. 9184)

7 cd from the deadline for receipt of proposals.

In the case of infra. Proj. costing 50M and below 5

cd (Sec. 32.4, IRR of R.A. 9184)



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In case of discrepancies, the ff. shall prevail:

words over figures

unit prices over total prices

bill of quantities over detailed estimate

(Sec. 32.2.4, IRR of R.A. 9184)

Unless the ITB specifically allows partial bids, those notproviding 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



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No Contact Rule (Secs. 32 & 33)

General Rule:

Members of the BAC, Secretariat and TWG, as well as its staffand personnel are prohibited from making/accepting anycommunication w/in the ff. periods

a) Goods and Infra

Bid submission until issuance of NOA (Sec. 32.1, IRR of R.A.9184)

b) Consulting Bid submission until HOPEs approval of the ranking of short-

listed bidders (Sec. 33.1, IRR of R.A. 9184)

Exception:

BAC, through its Secretariat, may request in writing biddersfor clarification of its bid. in writing

POSTPOST--QUALIFICATIONQUALIFICATION


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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. (Sec. 34.2, IRR of R.A.9184)

Completed in 7 cd. But, may be extended by the HOPEto not more than 30 cd (Sec. 34.8, IRR of R.A. 9184)

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POSTPOST--QUALIFICATIONQUALIFICATION


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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 proposal

2.

NFCC computation3. credit line certificate, to ensure that bidder can sustain theoperating cash flow transaction

(Sec. 34.3, IRR of R.A. 9184)

DISCLOSURE OF RELATIONSDISCLOSURE OF RELATIONS


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Disclosure of Relations (Sec. 47)

Relatives within the 3rd civil degree of the following shallbe disqualified:

Head of the procuring entity

Members of the BAC, Secretariat and TWG Head of the end-user unit/PMO

Project consultants

AWARD OF CONTRACTAWARD OF CONTRACT


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Contract shall be awarded to the bidder with the LCRB orSCRB at its submitted price or total calculated bid price,whichever is lower (Sec. 34.4, IRR of R.A. 9184)

3 mos. - procurement process from opening of bids up toaward of contract or a shorter period (Sec. 38.1, IRR ofR.A. 9184)

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 (Sec. 37.1.1,IRR of R.A. 9184)

ISSUANCE OF NOTICE OF AWARDISSUANCE OF NOTICE OF AWARD


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Notice of Award (NOA) is issued by the HOPE (Sec. 37.1.1,IRR of R.A. 9184)

NGAs and LGUs 7 cd | GOCCs and GFIs 15 cd (Sec.37.1.2, IRR of R.A. 9184)

NOA posted within 3 cd from its issuance in the following:

a) PhilGEPS website;

b) PEs website; and

c) Conspicuous places (Sec. 37.1.6, IRR of R.A. 9184)

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CONTRACT SIGNINGCONTRACT SIGNING


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Contract Signing (Sec. 37.2)

Within 10 cd from receipt of NOA (Sec. 37.2.2, IRR of R.A.

9184)

Mandatory submission of other contract documents thatmay 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 (Sec. 37.2.3, IRR of R.A. 9184)

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ISSUANCE OF NOTICE TOISSUANCE OF NOTICE TO


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Issued to the successful bidder together with the copy ofthe approved contract within 3 cd from date of approval

For infrastructure projects with ABC of 50M andbelow, 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 PEs websitewithin 15 cd from issuance of NTP

PROCEEDPROCEED


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THANK YOU

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