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COMPETITIVE BIDDING
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COMPETITIVE BIDDING
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COMPETITIVE BIDDING
NPM 80-2014
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STANDARDIZED BIDDING PROCEDURE
FOR GOODS AND INFRA
Pre-Procurement Pre-Bid
Advertisement
Conf. Conference
Opening of
Submission of Opening of 2nd
1st Env. - Eligibility
Bids Envelope Financial
Docs & Technical
Proposal
Proposal
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I. PRE-PROCUREMENT CONFERENCE
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II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID
Importance:
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II. ADVERTISEMENT & POSTING OF
THE INVITATION TO BID
At least once in one (1) newspaper of general nationwide
circulation, which has been regularly published for at
least two (2) years before advertisement date.
1. PhilGEPS;
2. Website of the PE, if any;
3. Website of IFI, if applicable; and
4. At any conspicuous place in the premises of the
PE.
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II. ADVERTISEMENT/POSTING OF THE
INVITATION TO BID
2M 10M for
Above 2M 10M for
Goods/ 5M 15M
Medium Goods/
for Infra
5M 15M for Infra
and below
Newspaper of General Nationwide
Circulation
PhilGEPS website
PEs Website, if available
Conspicuous Place
Website prescribed by the foreign
government/foreign or international
funding institution, in case of foreign
funded procurement
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III. PRE-BID CONFERENCE
Forum where the PEs representatives & the bidders
discuss the different aspects of the project
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III. PRE-BID CONFERENCE
May be held at least 30 cd before the deadline for the
submission and receipt of bids considering the
following:
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CLARIFICATION OF BIDDING
DOCUMENTS
Supplemental/Bid Bulletins issued by BAC to answer
requests for clarification (query submitted 10 cd before
deadline) or interpretation, and upon BACs initiative to
clarify or modify any provision of Bidding Docs. (at least
7 cd before deadline for bids).
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 (Sec. 25.4) (Sec. 25.5, 2016 IRR of
RA 9184)
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V. OPENING AND EVALUATION OF
1ST ENVELOPE
CONTENTS:
1. Eligibility requirements (Legal, financial and technical)
2. Bid Security
3. Technical specifications (Goods) / Project requirements
(Infra)
4. Omnibus sworn statement (New Form, Sec. 25.3, 2016 IRR)
Non-inclusion in blacklist Responsibilities of bidders
Authenticity of documents Labor laws and standards
Verification authority Non-payment (directly or
Signatorys authority indirectly) any commission,
amount, fee, or any form of
Disclosure of relations consideration in relation to any
procurement project or activity
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ELIGIBILITY REQUIREMENTS
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ELIGIBILITY REQUIREMENTS
GOODS INFRASTRUCTURE
TECHNICAL:
1. Statement of all ongoing contracts. 1. Statement of all ongoing contracts.
2. Statement of SLCC 2. Statement of SLCC
3. PCAB license and registration.
FINANCIAL:
1. Audited financial statement 1. Audited financial statement
2. NFCC computation 2. NFCC
Class B Document
JVA or notarized statement from the In case of JV, JVA entered into by the
partners that they will enter into joint parties.
venture if awarded the contract.
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ELIGIBILITY REQUIREMENTS
Section 8.5.2, 2016 IRR of RA 9184 - All bidders shall upload and
maintain in PhilGEPS a current and updated file of the following
Class A eligibility documents under Sections 23.1(a) and 24.1(a):
a) Registration Certificate;
b) Mayors/Business Permit or its Equivalent Document;
c) Tax Clearance;
d) Philippine Contractors Accreditation Board (PCAB) license and
registration; and
e) Audited Financial Statements.
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ELIGIBILITY REQUIREMENTS
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ELIGIBILITY REQUIREMENTS
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ELIGIBILITY REQUIREMENTS
GOODS INFRASTRUCTURE
Class B Document
JVA or notarized statement from In case of JV, JVA entered into by
the partners that they will enter the parties.
into joint venture if awarded the
contract.
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MAYORS PERMIT
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TAX CLEARANCE
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COMMITTED LINE OF CREDIT
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ELIGIBILITY REQUIREMENTS FOR
FOREIGN BIDDERS
In the case of foreign bidders, appropriate equivalent
documents issued by the country of the foreign bidder
under Class A Documents shall be submitted, provided
that:
The documents are in English, or
If the documents submitted are in a foreign language
other than English, it must be accompanied by a
translation of documents in English by any of the
following:
a) relevant foreign government agency;
b) the foreign government agency authorized to
translate documents, or
c) a registered translator in the foreign bidders
country.
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ELIGIBILITY REQUIREMENTS FOR
FOREIGN BIDDERS
Shall be authenticated by the appropriate Philippine
foreign service establishment/post or the equivalent
office having jurisdiction over the foreign bidders
affairs in the Philippines.
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ELIGIBILITY REQUIREMENTS FOR
GOVT. CORPORATE ENTITIES
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ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES
INFRASTRUCTURE
GOODS
PROJECTS
WITH AN EXISTING JOINT VENTURE: JV bidders shall submit a
submission of a valid joint venture JVA in accordance with
R.A. 4566 and its IRR.
agreement
WITHOUT AN EXISTING JOINT *Submission of a duly
notarized statement is
VENTURE: submission by each of the not applicable.
potential JV 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.
Failure to enter into a joint venture in the event
of a contract award shall be ground for the
forfeiture of the bid security. (Sec. 23.1(b),
2016 IRR of RA 9184)
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ELIGIBILITY REQUIREMENTS FOR
JOINT VENTURES
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LEGAL ELIGIBILITY CRITERIA
GOODS INFRASTRUCTURE
General rule: 60% Filipino General rule: 75% Filipino
Foreign bidder allowed if: Foreign contractors allowed if stated
1) Stated in treaty or international or in treaty or international or executive
executive agreement; agreement
2) National of a country offering
reciprocity rights to Filipinos;
3) Goods not available from local
suppliers; or
4) To prevent situations that defeat
competition or restrain trade
If joint venture, less than 75% Filipino-
owned is allowed if -
1. Structures to be built require
techniques not possessed by 75%
Filipino-owned contractors; and
2. Should not be less than 25%
Filipino ownership
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TECHNICAL ELIGIBILITY CRITERIA
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
25% of the ABC (expendable supplies)
50% of the ABC (non-expendable supplies)
- Based on the value of the previous completed
contract, as adjusted to current prices using the NSO
PSA consumer price index.
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TECHNICAL ELIGIBILITY CRITERIA
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TECHNICAL ELIGIBILITY CRITERIA
GOODS SINGLE LARGEST COMPLETED CONTRACT
(Illustration)
Expendable Goods Non-expendable Goods
THUS: Previous contract should be at least THUS: Previous contract should be at least
P250,000.00 (required percentage) P500,000.00 (required percentage)
Previous contract
Similar to the contract to be bid, except under conditions
provided for in Sec. 23.5.1.3 Sec. 23.4.1.3 of the IRR
50% of the ABC
- Based on the value of the previous completed
contract, as adjusted to current prices using the NSO
PSA consumer price index.
For foreign funded procurement, a different track record
may be agreed upon
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TECHNICAL ELIGIBILITY CRITERIA
Exception:
Contractors under Small A and Small B categories without
similar experience on the contract to be bid may be allowed to bid
if the cost of such contract is not more than the Allowable
Range of Contract Cost (ARCC) of their registration based on
the guidelines as prescribed by the PCAB.
A contract shall be considered similar to the contract to be bid
if it has the same major categories of work. The PE may clarify
in the Bidding Documents what is regarded as major categories of
work.
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FINANCIAL ELIGIBILITY CRITERIA
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NFCC COMPUTATION
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BID SECURITY
Amount
Form of Bid Security Bid Security
(% = ABC)
a) Cash or cashiers/managers check
b) Bank guarantee/draft or 2%
Irrevocable LC
c) Surety bond callable upon
5%
demand
d) Combination of the foregoing Proportionate to share of form
with respect to the total amount of
security
e) Bid Securing Declaration No percentage required
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BID SECURING DECLARATION
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BID SECURING DECLARATION
Conditions:
The Bid Securing Declaration shall be enforced when the
bidder commits any act resulting to the forfeiture of bid
security under:
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V. OPENING AND EVALUATION OF
1ST ENVELOPE
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DISCLOSURE OF RELATIONS
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VI. OPENING AND EVALUATION OF
2ND ENVELOPE
CONTENTS:
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VII. DETAILED EVALUATION
OF BIDS
Purpose is to determine the Lowest Calculated Bid
(LCB), by:
1. Establishing correct calculated prices of bids; and
2. Ranking calculated total bid prices from lowest to
highest
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VII. DETAILED EVALUATION
OF BIDS
No Contact Rule - prohibition on communication w/ bidders
from bid evaluation until award of contract.
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DOMESTIC PREFERENCE
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DOMESTIC PREFERENCE
SAMPLE COMPUTATION
Next Lowest Calculated
Lowest Calculated Bid
Bid
Foreign Bidder Domestic Bidder/Entity
Bid 2,653,360.00 3,009,492.00
% Preference x 15%
398,004.00
+ 2,653,360.00
Bid as increased 3,051,364.00 3,009,492.00
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VIII. POST-QUALIFICATION
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VIII. POST-QUALIFICATION
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VIII. POST-QUALIFICATION
If the BAC verifies any of these deficiencies to be due to the bidder's fault or
negligence, the BAC shall disqualify the bidder from the award, for the
procurement of Goods. (Sec. 34.3(b), 2016 IRR of RA 9184)
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VIII. POST-QUALIFICATION
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RECOMMENDATION OF AWARD
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FAILURE OF BIDDING
GROUNDS:
1) No bids received
2) Bids received but no one was eligible
3) All bids failed to post qualify
4) Someone post qualified but refused w/o justifiable
cause to accept the award.
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FAILURE OF BIDDING
EFFECTS:
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IX. AWARD OF CONTRACT
The BAC Sec shall post the NOA in the PhilGEPS and
PEs websites, and in any conspicuous place within 3
cd from its issuance.
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IX. AWARD OF CONTRACT
GROUNDS:
1. Prima facie evidence of collusion;
2. BAC is found to have failed in following the prescribed bidding
procedures;
3. 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 necessary
Source of funds for the project has been withdrawn/reduced.
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PERFORMANCE SECURITY
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PERFORMANCE SECURITY
Amount
Form of Performance Security Performance Security
(% equal to the Contract Price)
a) Cash or cashiers/managers
check
5% (Goods ) & 10% (Infra)
b) Bank guarantee/draft or
Irrevocable LC
c) Surety bond callable upon
30%
demand
d) Combination of the foregoing Proportionate to share of form with
respect to the total amount of security
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CONTRACT SIGNING
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PERIOD TO COMPLETE
PROCUREMENT PROCESS
PROCUREMENT PROCESS
From Opening of Bids to Award of Contract shall
NOT EXCEED 3 MONTHS
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NOTICE TO PROCEED
The BAC Sec shall post the NTP and the approved
contract in the PhilGEPS and PEs websites within 15 cd
from the issuance of the NTP.
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RETENTION MONEY
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LIQUIDATED DAMAGES
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