UPDATES IN RA NO. 9184 AND ITS IMPLEMENTING RULES AND REGULATIONS

UPDATES IN RA NO. 9184 AND ITS IMPLEMENTING RULES AND REGULATIONSAtty. Gerard L. Chan, LL.M.Director III, Legal ServiceDepartment of Transportation and Communications

PROCUREMENT OF GOODS AND INFRASTRUCTURE PROJECTS

Process Flow for Goods and Infra

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 Invitationto BidImportance:- 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 DocumentsGPPB 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.

ABCMaximum Cost of Bidding Documents500,000 and below500.00More than 500,000 up to 1 Million1,000.00More than 1 Million up to 5 Million5,000.00More than 5 Million up to 10 Million10,000.00More than 10 Million up to 50 Million25,000.00More than 50 Million up to 500 Million50,000.00More than 500 Million75,000.00

Pre-Bid Conference Forum where the PEs representatives & the bidders discuss the different aspects of the project

Mandatory ABC 1M or more

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

Held at least 12 cd before deadline for bid submission.

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

Supplemental/Bid BulletinsIssued at least 7 cd before deadline for bid submission.

Purpose of Supplemental / Bid Bulletinto incorporate in the bidding documents those statements discussed during pre-bid conference

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 and secure Supplemental/Bid Bulletin.

Bidders 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 BidsTwo-Envelope System1st Envelope Eligibility Requirements and Technical Component2nd 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.CategoryMaximum Period (cd)Goods45Infra (50M and below)50Infra (above 50M)65

Opening and Evaluation of First EnvelopeContentsEligibility requirementsBid SecurityTechnical specifications (Goods) / Project requirements (Infra)Omnibus sworn statementNon-inclusion in blacklistAuthenticity of documentsVerification authoritySignatorys authorityDisclosure of relationsResponsibilities of biddersLabor laws and standards

Eligibility RequirementsGoodsInfrastructureClass A Documents1. DTI/SEC/CDA Registration1. DTI/SEC/CDA Registration2. Mayors permit2. Mayors permit3. Statement of ongoing & completed contracts3. Statement of ongoing & completed contracts4. Audited financial statement4. PCAB license and registration5. NFCC or CLC5. Audited financial statement6. NFCC or CLCClass B DocumentJVA or notarized statement from the partners that they will enter into joint venture if awarded the contract

Requirements for Joint VenturesExisting Joint Venture : submission of a valid joint venture agreement.

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.

Any of the co-venturers can submit technical and financial eligibility requirements

Eligibility RequirementsIf 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)GoodsInfrastructureGeneral rule: 60% FilipinoGeneral rule: 75% FilipinoForeign bidder allowed if:Stated in treaty or international or executive agreementNational of a country offering reciprocity rights to FilipinosGoods not available from local suppliersTo prevent situations that defeat competition or restrain tradeForeign contractors allowed if stated in treaty or international or executive agreementIf joint venture, less than 75% is allowed if -Structures to be built require techniques not possessed by 75% FilipinosNot less than 25% Filipino

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.

DefinitionsExpendable Supplies (Sec. 5 [m])Articles normally consumed within 1 year or value is substantially decreased after 1 yearExamples: medicines, stationery, fuel, and spare parts

Non-expendable Supplies (Sec. 5 [w])Not consumed in useServiceable life more than 1 yearExamples: furniture, fixtures, transport, and other equipment

Eligibility Criteria (Technical)General RuleExceptions Then require the ff.:Expendable Supplies25% of the ABC

Services and Non-expendable supplies50% of the ABCIf, at the outset and after market research, applying the general rule will likely result to:

Failure of bidding; or

MonopolyAt 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 Goods - Single Largest Contract

Eligibility Criteria (Technical)Goods - Single Largest Contract (Illustration)

Expendable GoodsNon-expendable GoodsABC = P1,000,000

GR: 25% of the ABC

THUS: Previous contract should be at least P250,000

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.

THUS: 1st contract = P100,00 2nd contract = P200,00

ABC = P1,000,000

GR: 50% of the ABC

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.

THUS: 1st contract = P300,00 2nd contract = P400,00

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 Largest Contract (Sec. 23.5.2.5 IRR)

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 ComputationNFCC = (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 SecurityForm of Bid SecurityAmountBid Security (% of the ABC)Cash or cashiers/managers check2%Bank guarantee/draft or Irrevocable LC Surety bond callable upon demand issued by surety or insurance company duly certified by the Insurance Commission.5%Combination of the foregoingProportionate to share of form with respect to the total amount of security

Sample ComputationCash (60%)Surety Bond (40%)ABC1,000,0001,000,000% Required x .02 x .0520,00050,000Share of form x .60 x .40Amount12,00020,000Total32,000Bid Security

Surety Bond as Bid Security NPM 24-2010, NPM 17-2012

The certification which must be submitted together with the surety bond must:

unequivocally state that the surety or insurance 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 DeclarationGPPB 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 DeclarationA 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 DeclarationWhen can the Procuring Entity enforce the BSD?

When the bidder withdraws its bid during the period of bid validity; orWhen the bidder fails or refuses to accept the award and enter into contract.

What are the consequences of enforcing the BSD?

Payment of fine; andAutomatic blacklisting for 2 years

Bid Securing DeclarationPayment of fine

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.

In case of a single bidder the difference between the evaluated bid price and the ABC.

Bid Securing DeclarationAutomatic 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 SecurityNPM 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 PeriodThe 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 RelationsRelatives within the third civil degree of affinity or consanguinity of the following shall be disqualified:

Head of the procuring entityMembers of the BAC, Secretariat and TWGHead of the end-user unit or project management officeProject consultants

Opening and Evaluation of Second EnvelopeContents:

Financial Bid Form (includes bid prices and bill 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 EntityOther documents required in the bidding documents

No Contact RuleNo 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 BidsDetermine the LCB/SCB by:Establishing correct calculated prices of bids; andRanking calculated total bid prices from lowest to highest

A non-discretionary criteria shall be used, which shall include consideration of: completeness of bids; and 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 BidsIn case of discrepancies, the ff. shall prevail:words over figuresunit prices over total pricesbill of quantities over detailed estimate

Unless the ITB specifically allows partial bids, those not providing all required items shall be considered non-responsivePlacing no price is considered as non-responsiveSpecifying a 0 or - means it is offered for free

Post-qualificationLegal Requirements licenses and agreementslegal documents under eligibility envelope

Technical Requirements sufficiency of the bid security as to type, amount, form wording and validity period

Financial Requirements bid price proposalNFCC computationcredit 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-qualificationNPM 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-qualification3 days from notice of LCB, submit the following documents: (Sec. 34 IRR)

Tax clearanceLatest income and business tax returnsCertificate of PhilGEPS registrationOther appropriate licenses and permits required by law and stated in the Bidding Documents

Post-qualificationHow 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 ContractContract 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 JVAPosting of Performance SecuritySigning 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)Form of Performance SecurityAmountPerformance Security (% equal to the Contract Price)Cash or cashiers/managers check5% (Goods ) & 10% (Infra)Bank guarantee/draft or Irrevocable LC Surety bond callable upon demand issued by surety duly certified by the Insurance Commission.30%Combination of the foregoingProportionate to share of form with respect to the total amount of security

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 necessarySource of funds for the project has been withdrawn/reduced.

Notice to ProceedIssued 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 GoodsMade only after prior approval of the President.

Single advance payment not to exceed 50% of the contract for the following services:Hotel and restaurant servicesUse of conference/seminar and exhibit areasLease of office space

Advance payment not to exceed 15% allowed to address contingencies arising from natural or man-made calamities in areas where state of calamity has been declared

Advance Payment for Infrastructure ProjectsAlso referred to as MOBILIZATION COST

Requirements:Written request of the contractorSubmission 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 contractorThrough a irrevocable letter of credit , bank guarantee or surety bond callable on demand.Valid for a duration to be determined by the PE.

Liquidated DamagesFails 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 GoodsWhat is a Warranty Security (Goods)?

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

Warranty Security for Infra ProjectsGuarantee that the contractor shall perform his responsibilities and shall answer for an liability arising due to:

a) improper constructionb) use of inferior quality / standard c)any violation of the contract plans and specifications

Denominated in Philippine pesoEffective for 1 year from date of issuance of Certificate of Final Acceptance and returned after the lapse of the 1 year.

Warranty SecurityTypePeriodFormPercentage of Contract PriceExpendable3 mos., unless earlier consumedSpecial bank guarantee or Retention money10%Non-expendable1 yearServiceNoneNoneNoneInfrastructure1 yearCash/LC5%Bank guarantee10%Surety bond30%

Warranty against hidden/Structural defectsPermanent 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 (Ex. wooden bridges, spring developments): 2 years

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

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.)

Types of Consulting ServicesDesign> 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.

Types of Consulting ServicesConstruction supervision

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

Types of Consulting ServicesManagement and related services > project management, ICT services, post evaluation, etc.

Other technical services or special studies> institution building, design and execution of training program, etc.

Procedural Step for Procurement of Consulting ServicesPre-ProcurementConf.Advertisementw/in 7 c.d.ShortlistingOpening ofEligibility Env., EligibilityCheckSubmission ofEligibility RequirementsEvaluation& RankingNegotiationwithin 10 c.d.Opening ofTech. Proposal& Prel.Exam.SubmissionofProposalsNotice toProceedOpening of Financial ProposalPre-BidConferenceQuality Based EvaluationSubmission of EOI1 c.d.at least 12 c.d.not to exceed 20 c.d.1 c.d.not more than 21 c.d.Post- qualificationwithin 7 c.d.1 c.d.Submission ofAddl Eligibility RequirementsWithin 3 c.d.Award of Contract

Procedural Step for Procurement of Consulting ServicesPre-ProcurementConf.Advertisementw/in 7 c.d.ShortlistingOpening ofEligibility Env., EligibilityCheckSubmission ofEligibility RequirementsEvaluation& RankingNegotiationwithin 10 c.d.Pre-BidConferenceSubmission of EOI1 c.d.at least 12 c.d.not to exceed 20 c.d.1 c.d.not more than 21 c.d.Post-qualificationwithin 7 c.d.Quality-Cost Based EvaluationOpening ofFinancialProposalOpening ofTech. Proposal& Prel.Exam.SubmissionofProposalsSubmission ofAddl Eligibility RequirementsWithin 3 c.d.Notice toProceedAward of Contract

Procedural Step for Procurement of Consulting Services Public Bidding

Advertise and Post a Request for Expression of Interest Accept LOIs, Issue Eligibility Requirements, and Conduct Eligibility Check Short list the Eligible BiddersIssue the Bidding Documents Call A Pre-Bid Conference and, if necessary, Issue Supplemental/Bid Bulletins Receive and Open the Technical and Financial Envelopes Evaluate the Bids Negotiate with the Consultant with the Highest Rated Bid Post-qualify the Highest Rated BidderAward the Contract to the HRRBHave the Contract Signed and Approved and Issue the Notice to ProceedAdvertising a Request for EOI (Sec. 21)*Once in one (1) newspaperof general nationwidecirculation is required.( 7 c.d. max. pd.)1 2 3 4 5 6 7Newspaper Pub.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 opening75 CDs from last day of ITB Date of Bid Opening

The Request for Expression of Interest should also indicate the following:

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; andCurrent 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; andThe 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 CriteriaThe following persons//entities shall be allowed to participate in the bidding for consulting services :Duly licensed Filipino citizens/sole proprietorship;Partnerships organized under Phil. laws with at least 60% Filipino ownershipCorporations organized under Phil. laws with at least 60% Filipino Outstanding Capital StockCooperatives organized under Phil. laws & of which at least 60% belongs to citizens of the Phil. OrPersons/entities forming themselves into a joint venture Joint Ventures with at least 60% Filipino ownership

Eligibility Requirements(revised irr highlights)Class A DocumentsLegal 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 professionsFinancial 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 RequirementsClass 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 listingExample of Short listing Criteria and Weights:Applicable experience of Consultants30%Qualification of personnel to be assigned to the job (education, work experience, number of years in firm, etc.)50%Current workload relative to capacity20%

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 BidsThe first envelope shall contain the following technical information / documents:

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; andIt complies with existing labor laws and standards

Contents of the Financial Proposal:

Remuneration cost indicating basic salary, overhead cost, social charges, management fee and billing rate

Reimbursable cost

Other items as may be required in the Bidding Documents

Preliminary Examination of Technical ProposalOpening 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 BidsAfter Preliminary Examination of Technical Proposals, BAC conducts Detailed Evaluation of the Technical Proposals

Purpose is to determine the Highest Rated Bid (HRB), by:

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); andRanking of bidders based on numerical ratings from highest to lowest

Evaluation of BidsQBE is applied for:

Complex or highly specialized assignments for which it is difficult to precisely define the TOR and the required inputs from the consultantsAssignment can be carried out in substantially different ways, such that the proposals are not comparable

QCBE is applied in all other cases

Evaluation of BidsQuality Based Evaluation (QBE)

Simultaneous submission of both Technical and Financial proposals in separate sealed envelopesConsiders only the Technical Proposals in the ranking of consultantsConsidered 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 openedFirst-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 scoreThe financial proposal shall not exceed the ABCThe 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 Personnel - 10%Experience and Capability of the Consultant- 30%Plan of Approach and Methodology- 60%

Note: The BAC shall assign numerical weights to each of the above criteria indicated in the bidding documents

EVALUATORFIRM 1FIRM 2FIRM 3FIRM 4FIRM 5A9575848384B8488868182C8486857984D8385847982E8487868083AVERAGE(5E)86.084.285.080.483.0RANK13254EVALUATORFIRM 1FIRM 2FIRM 3FIRM 4FIRM 5A9575848384B8488868182C8486857984D8385847982E8487868083AVERAGE(3E)8486858083RANK31254

EVALUATORFIRM 1FIRM 2FIRM 3FIRM 4FIRM 5A9575848384B8488868182C8486857984D8385847982E8487868083AVERAGE(5E)86.084.285.080.483.0RANK13254AVERAGE(3E)8486858083RANK31254

Evaluation of Bids (QBE)Financial NegotiationsReview of Remuneration RatesSalaryBonusSocial CostsCost of LeaveOverheadsFee or ProfitAway from Headquarters AllowanceSubsistence AllowancesReimbursablesBank 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 score shall be invited to the opening of FPsName of firm, quality scores and prices of FPs are read aloud and recorded

Evaluation of BidsThe 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 HighlightsCeiling 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 financial proposal

F- price of the financial proposal under consideration

Evaluation of Financial Proposals (QCBE)Lowest financial proposal is given 100 pointsOther financial proposals are scored as follows: FL (lowest financial proposal) F (financial proposal under consideration)ExampleP 1.0 millionP 1.0 millionP 1.0 millionP 1.2 million

P 1.0 millionP 1.0 millionP 1.1 millionP 1.3 millionFIRMTECHNICAL SCORE(75%)FINANCIAL SCORE(25%)FINAL SCORERANK1100291383477571

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.

FIRMTECHNICAL SCORE(75%)FINANCIAL SCORE(25%)FINAL SCORERANK18410028691385834807758371

FIRMTECHNICAL SCORE(75%)FINANCIAL SCORE(25%)FINAL SCORERANK184 x .75= 63100 x .25= 2588.001286 x .75 = 64.5091 x .25 = 22.7587.252385 x .75 = 63.7583 x .25 = 20.7584.503480 x .75 = 6077 x .25 = 19.2579.255583 x .75 = 62.2571 x .25 = 17.7580.004

Evaluation of BidsProhibition on communication w/ bidders until award of contractBid 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 freeIts 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:Tax clearance; Latest income and business tax returns;Certificate of PhilGEPS Registration; andOther appropriate licenses and permits required by the law and stated in the Biding DocumentsFailure 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.

NegotiationNegotiation shall cover:

Discussion and clarification of the TORDiscussion and finalization of the methodology and work programConsideration of the qualifications of personnel and their compensationDiscussion on the facilities and date to be provided by the procuring entityDiscussion 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.

NegotiationNo 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 HighlightsPost-qualification (Sec. 34)

Submission of the ff documents:

Tax clearanceLatest income and business tax returnsCertificate of PhilGEPS registrationOther appropriate licenses and permits required by law and stated in the Bidding Documents.

Post-QualificationTo 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 within 7 c.d. from determination of HRB

Post-QualificationPost-Qualification Criteria:Legal Requirements Legal documents submitted by bidder as part of Eligibility RequirementsTechnical 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 projectsFinancial Requirements Covers the audited financial statement, income tax returns and financial proposal

Award of ContractThe 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 HighlightsNotice of Award (Sec. 37)

Conditioned on the following:

If joint venture, submission of JVAIf foreign-funded and stated in treaty, international or executive agreement, PCAB LicensePosting of Performance SecuritySigning of ContractIf required, approvals by higher authority

Single Rated and Responsive BidA Single Rated and Responsive Bid shall be considered for award if:

After advertisement only 1 submits an EOI and/or applies for eligibilityMore than 1 submits an EOI and/or applies for eligibility and submits but only 1 meets the requirementsMore 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 ProceedBoth 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 contractThank You