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RULE XVI ALTERNATIVE METHODS OF PROCUREMENT

Section 48. Alternative Methods


48.2

In accordance with Section 10 of this IRR, as a general rule, the Procuring


Entities shall adopt public bidding as the general mode of procurement and
shall see to it that the procurement program allows sufficient lead time for
such public bidding. Alternative methods shall be resorted to only in the
highly exceptional cases provided for in this Rule.

48.3

The method of procurement to be used shall be as indicated in the approved


APP. If the original mode of procurement recommended in the APP was public
bidding but cannot be ultimately pursued, the BAC, through a resolution, shall
justify and recommend the change in the mode of procurement to be
approved by the Head of the procuring entity. (n)

Section 49. Limited Source Bidding Limited Source Bidding, otherwise known
as selective bidding, is a method of procurement of goods and consulting services
that involves direct invitation to bid by the procuring entity from the list of preselected suppliers or consultants1 with known experience and proven capability on
the requirements of the particular contract.
Conditions:

Procurement of highly specialized types of goods


Procurement of major plant components

Section 50. Direct Contracting Direct Contracting or single source procurement


is a method of procurement of goods that does not require elaborate Bidding
Documents. The supplier is simply asked to submit a price quotation or a pro-forma
invoice together with the conditions of sale.
Conditions:

1.

Procurement of goods of proprietary nature which can be obtained only from


the proprietary source
When the procurement of critical plant components from a specific supplier is
a condition precedent to hold a contractor to guarantee its project
performance
Those sold by an exclusive dealer or manufacturer which does not have subdealers

Section 51. Repeat Order Repeat Order, when provided for in the APP, is a
method of procurement of goods from the previous winning bidder, whenever there
is a need to replenish goods procured under a contract previously awarded through
Competitive Bidding.
Conditions:

Unit prices of the repeat order must be the same as or lower than
those in the original contract
The repeat order will not result in splitting of contracts,
Except in cases duly approved by the GPPB, the repeat order shall be
availed of only within six (6) months from the contract effectivity date
The repeat order shall not exceed twenty-five percent (25%) of the
quantity of each item in the original contract.

Section 52. Shopping Shopping2 is a method of procurement of goods whereby


the procuring entity simply requests for the submission of price quotations for
readily available off-the-shelf goods or ordinary/regular equipment to be procured
directly from suppliers of known qualifications.
Conditions:
a) When there is an unforeseen contingency requiring immediate
purchase: Provided, however, That the amount shall not exceed the
thresholds prescribed in Annex H of this IRR.
b) Procurement of ordinary or regular office supplies and equipment not
available in the Procurement Service involving an amount not exceeding
the thresholds prescribed in Annex H of this IRR. (a)
(The phrase ordinary or regular office supplies shall be understood to
include those supplies, commodities, or materials which, depending on the
procuring entitys mandate and nature of operations, are necessary in the
transaction of its official businesses, and consumed in the day-to-day
operations of said procuring entity. However, office supplies shall not include
services such as repair and maintenance of equipment and furniture, as well
as trucking, hauling, janitorial, security, and related or analogous services. )
Section 53. Negotiated Procurement Negotiated Procurement is a method of
procurement of goods, infrastructure projects and consulting services, whereby the
procuring entity directly negotiates a contract with a technically, legally and
financially capable supplier, contractor or consultant in any of the following cases:

Two Failed Biddings

2 Refer to Appendix 18 for the Guidelines on Shopping and Small Value Procurement.

Emergency Cases.
Take-Over of Contracts
Adjacent or Contiguous
Agency-to-Agency
Procurement Agent
Highly Technical Consultants
Defense Cooperation Agreement

Section 53.9 Small Value Procurement.3 Where the procurement does not fall
under Shopping in Section 52 of this IRR and the amount involved does not exceed
the thresholds prescribed in Annex H of this IRR. (a
SALIENT PROVISIONS:
For alternative methods of procurement, advertisement and posting as
prescribed in Section of this IRR may be dispensed with: Provided,
however, That the BAC, through its Secretariat, shall post the invitation
or request for submission of price quotations for Shopping under
Sections 52.1 (b) and Negotiated Procurement under Sections 53.1
(two-failed biddings) and 53.9 (small value procurement); and 53.11
(NGO Participation)4 of this IRR in the PhilGEPS website, the website of
the procuring entity concerned, if available, and at any conspicuous
place reserved for this purpose in the premises of the procuring entity
for a period of seven (7) calendar days. ( (Section 54.2, RIRR of RA 9184)
In all instances of alternative methods of procurement, the BAC,
through the Secretariat, shall post, for information purposes, the notice
of award in the PhilGEPS website, the website of the procuring entity
concerned, if available, and at any conspicuous place reserved for this
purpose in the premises of the procuring entity (Section 54.3, RIRR of RA 9184)
Performance and warranty securities, as prescribed in Sections 39 and
62 of this IRR, shall be submitted for contracts acquired through the
alternative methods of procurement, except for Shopping under
Section 52 and Negotiated Procurement under Sections 53.2
(emergency cases), 53.9 (small value procurement), 53.10 (lease of
real property), and 53.13 (UN agencies).(n) (Section 54.5, RIRR of RA 9184)
21.2

Advertising and Posting of the Invitation to Bid/Request for Expression of


Interest

21.2.1 Except as otherwise provided in Sections 21.2.2 and Error: Reference


source not found of this IRR and for the procurement of common-use goods
and supplies, the Invitation to Bid/Request for Expression of Interest shall be:

3 Refer to Appendix 18 for the Guidelines on Shopping and Small Value Procurement.
4 As amended by GPPB Resolution 03-2011 dated 28 January 2011.

a) Advertised at least once in one (1) newspaper of general nationwide


circulation which has been regularly published for at least two (2)
years before the date of issue of the advertisement;
b) Posted continuously in the PhilGEPS website, the website of the
procuring entity concerned, if available, and the website prescribed
by the foreign government/foreign or international financing
institution, if applicable, for seven (7) calendar days starting on date
of advertisement; and
c) Posted at any conspicuous place reserved for this purpose in the
premises of the procuring entity concerned for seven (7) calendar
days, if applicable, as certified by the head of the BAC Secretariat of
the procuring entity concerned.(a)
21.2.2Advertisement of the Invitation to Bid/Request for Expression of Interest
in a newspaper of general nationwide circulation provided in Section
21.2.1(a shall not be required for contracts to be bid with an approved
budget of Two Million Pesos (P2,000,000.00) and below for the
procurement of goods, Five Million Pesos (P5,000,000.00) and below for
the procurement of infrastructure projects, and One Million Pesos
(P1,000,000.00) and below or those whose duration is four (4) months or
less for the procurement of consulting services. (a)

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