MODES OF

PROCUREMENT
PUBLIC
BIDDING
G-EPS

ALTERNATI
VE
MODES

ALTERNATIVE MODES
OF

PROCUREMENT
CONDITIONS:
approved
justified

by the Head of Procuring Entity

by conditions provided in the Act

MOST ADVANTAGEOUS

price is obtained

ALTERNATIVE MODES
OF

PROCUREMENT

1. LIMITED SOURCE BIDDING

GOODS, CONSULTING SERVICES
2. DIRECT CONTRACTING
3. REPEAT ORDER

GOODS

4. SHOPPING
5. NEGOTIATED PROCUREMENT
GOODS, CONSULTING SERVICES, INFRA PROJECTS

LIMITED SOURCE BIDDING

(SELECTIVE BIDDING)

Direct invitation to bid from a

PRE-SELECTED SUPPLIERS /
CONSULTANTS of a particular
contract
experience and capability
listed & updated with the GPPB or
relevant government authority

LIMITED SOURCE BIDDING

MAY BE EMPLOYED WHEN PROCURING:

1. Highly specialized items;

only FEW suppliers or
consultants are available.
2. Major plant components;
maintain quality &
performance of the plant as
a whole.

DIRECT CONTRACTING

(SINGLE SOURCE PROCUREMENT)

Does not require elaborate

Bidding Documents
SUPPLIER
Price Quotations / Pro-forma Invoice
with Conditions of Sale

ACCEPT
IMMEDIATELY

or

NEGOTIATE

DIRECT CONTRACTING

MAY BE EMPLOYED WHEN PROCURING:

1. Proprietary nature
e.g. patents, trade secrets & copyrights.
2. Critical plant components as condition
precedent to hold contractor to guarantee
project performance.
3. Exclusive dealers / manufacturers;
NO sub-dealers selling at lower prices;
NO available substitute item at advantageous
terms to the Government.

REPEAT ORDER
Direct procurement of goods
whenever there is a
NEED TO REPLENISH

Contract previously awarded

through competitive bidding.

The procured item is clearly

superior to other bids.

REPEAT ORDER
CONDITIONS:
1.
2.
3.

Contract price is the SAME or LOWER

NO SPLITTING OF CONTRACTS

Should be availed of within 6 months

from the date of the Notice to Proceed
arising from the original contract
4. NOT exceed 25% of the quantity of
each item of the original contract.
5. Should be availed of ONLY ONCE

SHOPPING
Request 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.

SHOPPING

WHEN EMPLOYED:

1.

UNFORSEEN CONTINGENCY
immediate purchase
NOT to exceed P100,000.00

2.

For ordinary / regular office supplies /

equipment NOT available in the PS-DBM
NOT to exceed P500,000.00
at least

3 PRICE QUOTATIONS

NEGOTIATED PROCUREMENT
Direct negotiation with a technically,
legally and financially capable
supplier, contractor or consultant.

NEGOTIATED PROCUREMENT
1st instance

FAILURE OF PUBLIC BIDDING FOR 2ND TIME

conditions:

At least 3 suppliers/contractors
Public Bidding Procedures shall be
observed
Posting in the Website, G-EPS,
conspicuous places

NEGOTIATED PROCUREMENT
2nd instance
IN CASES OF IMMINENT DANGER TO LIFE AND
PROPERTY

Justified:

a.

TIME IS OF THE ESSENCE

or in case of an IMMINENT DANGER
to life or property or to restore
destroyed or damaged vital water,
power and transportation services

NEGOTIATED PROCUREMENT
2nd instance
IN CASES OF IMMINENT DANGER TO LIFE AND
PROPERTY

Justified:

b.

STATE OF NATURAL or MAN-MADE

CALAMITY, or EMERGENCY
as declared by appropriate authorities

NEGOTIATED PROCUREMENT
2nd instance
IN CASES OF IMMINENT DANGER TO LIFE AND
PROPERTY

Negotiation shall be made with

previous supplier of good standing
of the procuring entity or those
situated within the vicinity where
calamity/emergency occurred.

NEGOTIATED PROCUREMENT
5th instance

PURCHASE OF GOODS FROM ANOTHER

GOVERNMENT AGENCY

PS or other Govt Agency

WHAT
AGENCY

which have capability/proficiency

to undertake particular
procurement

PURPOSE: To hasten project implementation

NEGOTIATED PROCUREMENT
5th instance

PURCHASE OF GOODS FROM ANOTHER

GOVERNMENT AGENCY
HOW:

Direct negotiation may be made

with that Government Agency

Procurement of COMMON-USE
supplies shall be thru PS.

NEGOTIATED PROCUREMENT
7th instance

MAJOR DEFENSE EQUIPMENTS

onditions:
Upon prior approval of the President
The DND Sec has determined that
countrys interest is protected by
negotiating directly with agency of
another country with which Philippines
has defense cooperation agreement or
diplomatic relations
Foreign Guarantee = 100% ABC

THANK YOU
for LISTENING

DBM