Infra Project Procurement Updated 2016

Implementing Rules &
Regulations Of
Republic Act No. 9184
ARTURO S. LAYUG
Resource Person
Learning Objective
At the end of the session participants will
be familiarize with the provisions and
applications of the Implementing Rules
and Regulations (IRR) of Republic Act 9184
on the Procurement of Infrastructure
Projects (GPM) including its updates.
Procurement of
Infrastructure Projects
• Construction,
• Improvement,
• Rehabilitation,
• Demolition,
• Repair,
• Restoration/Maintenance
of government facilities
Hiring of Consultants
Possible if...
Services are beyond the capability

of the Procuring Entity
Services would not be inconsistent

with government’s policy of not
competing with private sector
Introduction
A. PROCUREMENT PLANNING
1) Detailed Engineering
2) Technical Specifications
3) The “Approved Budget for the Contract” (ABC)
B. PREPARATION OF BIDDING DOCUMENTS

1) Bidding Documents
2) Contents of Bidding Documents
3) Timeline for the Preparation of Bidding Documents
4) Procedure for the Preparation
5) Various Types and Sizes of Contracts that may be
provided in the Bidding Documents
Detailed Engineering (from Annex A)
a) Survey
b) Site Investigation
c) Soils and Foundation Investigation
d) Construction Materials Investigation
e) Preparation of Design Plans
f) Preparation of Technical Specifications
g) Preparation of Quantity and Cost Estimates
h) Preparation of Program of Work
i) Preparation of Proposed Construction Schedule
(and estimated Cash Flow for projects with
Schedule over six (6) months
j) Preparation of Site or Right-of-Way Plans

including Schedule of Acquisition
k) Preparation of Utility Relocation Plan
l) Preparation and Submission of Design Report
m) Environmental Impact Statement for critical
project as defined by DENR
n) Preparation of minimum requirements for a
Construction Safety and Health Program for the
project being considered
o) Value Engineering Studies
p) Preparation of Bid/Tender Documents
New Provision:
Projects to be implemented by Phases, the PE shall

ensure that there is a clear delineation of work for
each phase, which must be usable, and
structurally sound. Detailed engineering activities
shall be conducted.
• Design standards – in accordance with appropriate standards
and accepted detailed engineering practice
• Field Surveys and Investigations – which may include aerial,

hydrographic, topographic, hydrologic, sub-surface,
monumenting and other surveys
• Contract plans – incorporating the site development plan,

plans and profile sheet, typical sections and details, drainage
details where applicable, structural plans, and other details
which may be required
• Quantities – all construction quantities shall be computed to

areasonable accuracy of not more than plus or minus ten
percent (10%) of the final quantities of the as-built structure.
• Special Provisions – Specifications shall be prepared for
specific terms of work or methods of construction,
measurement and payment under each contract, which are
not covered by Standard Construction and Material
Specifications adopted by the procuring entity concerned.
• Unit Prices – These shall be prepared for each contract using
costs based on reasonable approved current prices as
projected over the proposed construction period, divided into
local and foreign exchange costs, as the case may be.
• Approved Budget for the Contract – the ABC to be bid shall
be prepared by official(s) duly designated by the Head of the
Procuring Entity concerned or by his duly authorized official. It
shall be approved by the Head of the Procuring Entity or his
duly designated official.
– Since the contracts are fixed price contracts, the ABC to be bid shall provide
for the projected movements of construction costs over the construction
period considering the projected inflation and foreign exchange rates as
issued by the Development Budget Coordination Committee (DBCC). It shall
also show the local and foreign currency requirements, as the case may be.
Factors to be Considered in
Determining the ABC
1. The cost or market price of the product
or service itself;
2. Incidental expenses like taxes, training
costs if necessary, and cost of
inspection;
3. The cost of money, to account for PEs
usually buying on credit terms;
4. Inflationary factor, since the planning
phase is usually done one year ahead of
the actual procurement date; and
5. The cost for securing all types and forms
of securities other than cash. ( e.g.
premiums for surety bond, bank fees and
other charges to be incurred by the
bidder in obtaining bid, performance
and warranty securities )
DPWH D.O. 197 Series of 2016:
Revised Guidelines in the Preparation of
Approved Budget for the Contract (ABC)
ABC = DC + IC DIRECT COST INDIRECT COST

Direct Cost =
Material Cost + Labor Cost + Equipment Expenses
• Material Cost – cost at source, expenses for hauling to project

site, handling expenses, storage expenses, and allowance for
waste and/or losses, not to exceed 5% of materials
requirement.
• Labor Cost – salaries, wages as authorized by DOLE, and fringe

benefits (leaves, benefits, SSS, allowances 13th month pay, etc)
• Equipment Expenses – rental rates, and mobilization and

demobilization
Indirect Cost =
OCM + Profit + VAT
• Overhead Expenses – 7-11% of EDC

• Contingencies – 0.5-3% of EDC
• Miscellaneous – 0.5-1% of EDC
• Contractor’s Profit – 8% of EDC for projects above Php5M, 10%
for projects Php5M and below
• VAT – 5% of the sum of EDC, OCM, and Profit

Indirect Cost =
OCM + Profit + VAT
• Items not subject to OCM and Profit Mark-up

– Mobilization and Demobilization
– Provision of Service Vehicle
– Permits and Clearances
• Non-civil work items not subject to OCM Mark-up
– Field/laboratory office & Living Quarters
– Furnishing of Furniture, Laboratory Equipment, Survey Equipment, etc
– Assistance to the Engineers
– Photographs
– Health and Safety
– Traffic Management
– Environmental Compliance
– Communication Equipment
GUIDELINES FOR INDIRECT COST
Indirect Cost Total Indirect

Estimated Direct Cost % for OCM & Profit Cost
(EDC) OCM PROFIT % for OCM
(% of EDC) (% of EDC) and Profit
Up to Php 5M 15 10 25
Above Php5M – Php 50M 12 8 20
Above Php50M – Php 150M 10 8 18
Above Php150M 8 8 16
ATTACHMENT “A”
APPROVED BUDGET FOR THE CONTRACT D.O. No._______, Series 2015
_________________________________________________________________________________
Project Name
(Location)
CONTRACT DURATION:
MARK-UPS IN TOTAL MARK- TOTAL

ESTIMATE PERCENT UP
ITEM QUAN INDIRE TOTAL UNIT
No.
DESCRIPTION TITY
UNIT DIRECT VAT
CT COST COST
COST OCM PROFIT % VALUE COST
(9) (10) (11) (12) (13)

(1) (2) (3) (4) (5) (6) (7) (8) (5)X(8) 5%((5)+ (9)+(10) (5)+(11) (12)/(3)
(9))
TOTAL
PREPARED /SUBMITTED BY: RECOMMENDING APPROVAL APPROVED BY:
__________________________ _____________________________ ___________________________

ATTACHMENT “A”
_________________________________________________________________________________
Project Name
(Location)
CONTRACT DURATION:

ESTIMATE PERCENT UP
No.
DESCRIPTION TITY
UNIT DIRECT VAT
CT COST COST
(9) (10) (11) (12) (13)

(1) (2) (3) (4) (5) (6) (7) (8) (5)X(8) 5%((5)+ (9)+(10) (5)+(11) (12)/(3)
(9))
1 CEMENT 100 312.00 31,200
TOTAL
__________________________ _____________________________ ___________________________

ATTACHMENT “A”
_________________________________________________________________________________
Project Name
(Location)
CONTRACT DURATION:

ESTIMATE PERCENT UP
No.
DESCRIPTION TITY
UNIT DIRECT VAT
CT COST COST
(9) (10) (11) (12) (13)

(1) (2) (3) (4) (5) (6) (7) (8) (5)X(8) 5%((5)+ (9)+(10) (5)+(11) (12)/(3)
(9))
1 CEMENT 100 312.00 31,200 15 10 25 7800 1950 9750 40,950 409.50
TOTAL
__________________________ _____________________________ ___________________________

• Bidding Documents – These shall be prepared as provided for
in the IRR.
• Program of Work – Before prosecuting any project, the

necessary program of work shall be prepared and submitted
for approval.
– No program of work for any project shall be approved without
detailed engineering.
– The program of work shall include, among other things, estimates
of the work, items, quantities and costs and a PERT/CPM network of
the project activities.The program of work shall cover at least a
usable portion of the project and no construction shall be started
for portions of the project that are less than usable, except projects
requiring stage construction, in which case continuity of
construction up to the completion of a usable portion must be
assured.
• Contract Time or Duration – In the preparation of the Bidding
Documents, the agency shall make an estimate of the actual
number of working days required to complete the project
through PERT/CPM analysis of the project activities and
corrected for holidays and weekends
• Warranty Period – Likewise, the Bidding Documents shall

specify the type of project and the corresponding warranty
period required by the procuring entity.
• Value Engineering – For major projects as specified by the

agency, value engineering shall be conducted according to
accepted standards and practices
• Site or Right-of-Way Acquisition Plans and Resettlement

Action Plans – These shall be prepared based on parcellary
surveys and socio-economic surveys of households affected by
the project.
Maintenance Hangar, Maryland, USA
As designed
The plane rolls on its

own wheels into the
hangar; it requires 24,437
square feet of covered area,
with a 180 foot wide
hangar door.
Cost as designed:
$3,900,050 (this is the cost
of building an addition to
the existing hangar of
24,437 square feet and
installing a 180-foot door
Maintenance Hangar, Maryland, USA
VE alternative
The plane is introduced

to the hangar at an angle
resting its wheels on
specially designed carts on
rails; it requires 11,842
square feet of coverage
area and a 160-foot wide
hangar door.
Coast of alternative:
$2,945,417 (this is the cost
of building a smaller
addition and installing a
smaller hangar door.
Timeline for the Preparation of
the Bidding Documents
The bidding documents must be prepared in

time for presentation at the pre-procurement
conference. These documents must be
finalized before the advertisement and/or
posting of the ITB.
Contents of Bidding Documents
• Bidders may be asked to
pay a fee to recover the
cost for the preparation of
1. Approved Budget for the Contract Bidding Docs.
(ABC) • Bidding Docs may be
2. Invitation to Bid/Request for Expression downloaded from the
website
of Interest
3. Eligibility Requirements
4. Instruction to Bidders, scope of bid,
documents comprising the bid,
eligibility criteria, bid evaluation
methodology/criteria, post-
qualification, date, time, and place of
the pre-bid conference, submission of
bids and opening of bids;
5. Scope of Work, where applicable;
• Bidders may be asked to
pay a fee to recover the
cost for the preparation of
6. Plans/Drawings and Technical Bidding Docs.
• Bidding Docs may be
Specifications; downloaded from the
7. Form of Bid, Price Form, or Bill of website
Quantities;
8. Completion Schedule;
9. Form, Amount, and Validity Period of
Bid Security;
10. Form, Amount, and Validity of
Performance Security and Warranty;
and
11. Form of Contract and General and
Special Conditions of Contract
No bidding and award of contract for

Infrastructure Projects shall be made unless
the detailed engineering investigations,
surveys, and designs, for the project have
been sufficiently carried out and approved in
accordance with the standards and specs by
the HoPE concerned or his duly authorized
representative.
In case of projects with pending acquisition of

right-of-way site or location, the procurement
process may commence, but no award of
contract shall be made until an authority or
permit to enter is issued by the owner; or a
notarized deed of sale or deed of donation is
executed in favor of the government; or a
writ of possession is issued by a court of
competent jurisdiction.
Reference to Brand Names
Specifications for the procurement of

goods shall be based on relevant
characteristics, functionality, and/or
performance requirements. Reference to
brand names shall not be allowed except
for items or parts that are compatible with
the existing fleet or equipment of the
same make and brand, and to maintain
performance, functionality and useful life
of the equipment.
Various Types and Sizes of Contracts that
may be provided in the Bidding Documents
The size and scope of individual contracts will depend on the magnitude,
nature, and location of the project, for example:
1. For projects requiring a variety of goods and works, separate contracts

may be awarded for the supply and/or installation of different items of
equipment and plant, as in a production facility) and for the works.
2. For a project requiring similar but separate items of equipment or works,

bids may be invited under alternative contract options that would
attract the interest of both small and large firms, which could be
allowed, at their option, to bid for individual contracts (slices) or for a
group of similar contracts (package).
3. In certain cases, the PE may require a turnkey contract under which

the design and engineering, the supply and installation of equipment,
and the construction of a complete facility or works are provided under
one (1) contract.
Method for the Procurement of
Competitive Bidding as a General Mode of Procurement
Competitive or Public Bidding is a method of procurement that is
open to any interested and qualified party. All procurement should
be done through Public Bidding except in cases wherein the LGU is
allowed to resort to alternative methods of procurement as provided
in Rule XVI of the IRR (IRR Section 10)
Procedural Steps for Procurement
of Infrastructure Project – Public Bidding
(Rev. IRR, GPPB Res. 03-2016 )
Not earlier than 7 cd from posting
12 cd before deadline of submission
Posting – 7 c.d.
Pre-Procurement Issue Bidding Call/Hold Pre-Bid

Advertise/Post ITB
Conf. Documents Conference
Deadline of Submission:
50 cd for 50M and below
65 cd for 50M and above
Receive the Open Technical (with Evaluate &

Open
Two (2) eligibility documents) Rank Bid/s
Financial
Envelopes Envelope Envelope
7 c.d.
1 c.d.
Approve Resolution Prepare & Issue

Submission of Post-qualify
/ Issue Notice Sign Contract Notice to
Additional Req. LCB
of Award - LCRB Proceed
Within 5 c.d. Within 45 c.d. Within 15 c.d. Within 10 c.d.

Within 7 c.d.
Pre-procurement Conference
What is the purpose

of Pre-procurement
Conference?
Review, modify & Ensure that the
agree on the procurement is in
criteria for eligibility accordance with the Determine the
screening and project and annual readiness of the
evaluation of bids/ procurement plans; procurement at
proposals; hand;
Reiterate & emphasize the

importance of confidentiality
during the bid evaluation
Clarify that the process, and the applicable
specs & other terms in sanctions and penalties.
the bidding docs are
Minimum requirements;
AGENDA:
1. Scope of Work;
2. ABC;
3. Applicability and appropriateness
of the recommended method of
procurement and the related
milestones; DAYS
4. Bidding documents, and
5. Availability of the pertinent budget Prior to advertisement or
release for the project. issuance of ITB to give
technical staff time to
incorporate changes
Note: Not required for

infra projects cost 5M
and below
(Rev. IRR, GPPB Res. 03-2009 )
Posting – 7 c.d.

Advertise/Post ITB

Open
Financial
7 c.d.
1 c.d.

Additional Req. LCB

Within 7 c.d.
Advertisement of ITB
• Shall be made at least once in a newspaper of general nationwide
circulation which has been regularly published for at least 2 years
before advertisement;
• Also posted continuously for 7 cd in the Phil GEPS, PE’s website and
at any conspicuous place in the premises of the PE;
• Advertisement shall be made for a max. of 45 cd prior to opening of

bids;
• Shall specify the ABC and source of

funding
2 years after the
• Not required in infra projects P15M &
effectivity of this revised below
IRR, newspaper
advertisements shall no • PE that cannot post its opportunities in
longer be required. the PhilGEPS for justifiable reasons, shall
continue to publish its advertisement in a
newspaper of general circulation (Sec.
21.2.1, Sec. 21.2.2)
(Rev. IRR, 2016)
Posting – 7 c.d.

Advertise/Post ITB

Open
Financial
7 c.d.
1 c.d.

Additional Req. LCB

Within 7 c.d.
Issuance of Bidding Documents
Cost of Bidding Documents
Approved Budget for the Maximum Cost of
Contract Bidding Documents
500,000 and below 500.00
More than 500,000 up to 1M 1,000.00

More than 1 Million up to 5M 5,000.00
More than 50 Million up to 50,000.00
500M
More than 500M 75,000.00
Issuance of Bidding Documents
• Provide instances when bid doc fees

may be refunded to the bidder, i.e.
declaration of failure of bidding under
Section 41. (Sec. 17.4)
• Bid documents shall reflect the

necessary specifications required to
meet the needs of the PE
• For mixed procurement, PE shall

specify all relevant requirements for
each procurement type (Sec. 17.2)
(Rev. IRR, 2016 )
Posting – 7 c.d.

Advertise/Post ITB

Open
Financial
7 c.d.
1 c.d.

Additional Req. LCB

Within 7 c.d.
Pre-Bid Conference
• Discretionary if ABC less than P1M;

• Shall be held at least 12 cd before deadline for submission of bids, but
not earlier than 7 cd from the PhilGEPS posting of ITB;
• Shall clarify and/or explain any of the requirements, terms, conditions;
• Conduct of pre-bid conference in person or face-to-face through video
conferencing, webcasting, etc are allowed;
• Attendance of bidders not mandatory
Pre-Bid Conference
• Allow all prospective bidders (even those that have not bought bid docs)
to raise queries with respect to the eligibility requirements and techncial
and financial components of the project;
• Minutes shall be prepared not later than 5 cd after the pre-bid
conference, and shall be available not later than 5 days upon written
request by bidder;
• Amendments shall be issued through Supplemental/Bid Bulletin at least 7
cd before the deadline for the submission of bids
Supplemental or Bid Bulletins
• Request for clarification(s) must be in

writing and submitted to the BAC at least
10 calendar days before the deadline set
for the submission and receipt of bids.
• BAC shall respond to the said request by

issuing a Supplemental/Bid Bulletin, at least
7 calendar days before the deadline for
the submission and receipt of bids.
• Supplemental/Bid Bulletin issued by the

BAC shall also be posted on the website of
the procuring entity concerned, if
available, and on the PhilGEPS
(Rev. IRR, 2016 )
Posting – 7 c.d.

Advertise/Post ITB

Open
Financial
7 c.d.
1 c.d.

Additional Req. LCB

Within 7 c.d.
Submission and Receipt of Bids
1st Envelope – Eligibility and Technical
a) PhilGEPS Certificate of Registration
b) PCAB License and Registration
c) Statement of all Ongoing Government
and Private Contracts
d) Statement of SLCC
e) NFCC Computation
f) JVA, if applicable
g) Bid Security in the prescribed form,
amount and validity period
h) Project Requirements:
• Organizational chart
• List of contractor’s personnel
• List of contractor’s major
equipment units
i) Omnibus Sworn Statement in accordance
with Section 25.3
Eligibility Requirements
Class “A” Documents
Legal Documents
a) Registration Certificate from For Foreign Bidders:
SEC, DTI for sole prop, or CDA  submit appropriate equivalent
for cooperatives documents in English (or
b) Mayor’s/Business Permit or translation in English by
equivalent document authorized agency) issued by
- In case of recently expired the country of the bidder for
Mayor’s/Business permit, it shall be authentication by Philippine
accepted together with official
receipt as proof that the bidder has
foreign service.
applied for renewal. Renewed permit
to be submitted as Post Qualification  Documents shall be
requirement.
accompanied by Sworn
c) Tax Clearance
Statement in a form prescribed
d) PhilGEPS Certificate of
by GPPB.
Registration
Class “A” Documents
Technical Documents Financial Documents
a) Statement of all on-going a) Audited Financial Statements
government and private submitted to BIR for the
contracts, including contracts preceding calendar year not
awarded but not yet started earlier than 2 yrs from the date
b) Statement of the bidder’s of bid submission
Single Largest Completed b) Computation of Net Financial
Contract (SLCC) similar to the Contracting Capacity (NFCC)
contract to be bid, whose
value adjusted to current
prices using the PSA consumer
price indices, must be at least
c) PCAB License and Registration
Class “B” Document
Joint Venture
• Joint Venture bidders shall submit a
JVA in accordance with RA 4566 and
its IRR.
• Each partner of the joint venture shall

submit their respective PhilGEPS
Certificates of Registration.
• Submission of technical and financial

eligibility documents by any of the JV
partners constitutes compliance:
Provided, that the partner responsible
to submit the NFCC shall submit the
Statement of all its on-going contracts
and Audited Financial Statements.
Who are allowed to participate in bidding?
a) Duly licensed Filipino citizens/sole
ELIGIBILITY proprietorships;
CRITERIA. b) Partnerships duly organized under the laws
of the Philippines and of which at least
seventy-five percent (75%) of the interest
belongs to citizens of the Philippines;
c) Corporations duly organized under the
laws of the Philippines, and of which at
least seventy-five percent (75%) of the
outstanding capital stock belongs to
citizens of the Philippines;
d) Cooperatives duly organized under the
laws of the Philippines;
e) Persons/entities forming themselves into a
joint venture;
f) Foreign bidder may be eligible when
provided for under any Treaty of
International or Executive Agreement;
g) Must have PCAB license;
h) The SLCC (Single Largest Completed
Contract) shall be supported by Owner’s
Certificate of Final Acceptance issued by
the project owner other than the
contractor or a final rating of at least
Satisfactory in CPES. Equivalent document
shall be submitted in case of projects in
private sector;
i) Bidder must have completed an SLCC
similar* to the contract to be bid.
 Small A and Small B category
contractors without similar experience
may bid if the cost of such contract is
not more than the Allowable Range of
Contract Cost (ARCC)
Note: *Similar – the same major categories of work to be clarified by the

Procuring Entity
Allowable Range of Contract Cost (ARCC)
(Per PCAB Res. 001-2004 & GPPB Res. 012-2004):
Allowable Range of Contract Cost (in

Category Million Pesos) –
CFY 2009 to June 30, 2010
Small A Up to 0.5
Small B Up to 30
Medium A Up to 150
Medium B Up to 300
Large A Up to 500
Large B Less than or above 500
j) Prospective bidder’s NFCC must be at
least equal to the ABC to be bid
NFCC = [(Current assets minus current

liabilities)(15)] minus the value of all
outstanding or uncompleted portions
of the projects under ongoing
contracts, including awarded
contracts yet to be started coinciding
with the contract to be bid.
*Assets and liabilities shall be based on

latest Audited Financial Statements.
k) GOCCs may be eligible to participate in

Competitive Bidding if:
•Legally and financially autonomous
•Operate under commercial law
•Not attached agency of the PE
Bid Security
•amount at least equal to, and not lower
than, a percentage of the approved budget
for the contract.
Form of Bid Security Amount of Bid Security

(Equal to Percentage of the
ABC)
Cash or cashier’s/manager’s check issued
by a Universal or Commercial Bank
For biddings conducted by LGUs, the Two percent ( 2%)

check may be issued by other banks
certified by the BSP
Bank draft/guarantee or irrevocable letter
of credit issued by a Universal or
Commercial Bank. If issued by a foreign
bank, it shall be confirmed or
authenticated by a Universal or
Commercial Bank,
For biddings conducted by LGUs, bank

draft/guarantee or irrevocable letter of
credit may be issued by other banks
certified by the BSP
Surety bond callable upon demand issued
by a surety or insurance company duly Five percent (5%)
certified by the Insurance Commission as
authorized to issue such security
Omnibus Sworn Statement:

• Signatory is duly authorized representative
of the bidder
• Not blacklisted or bared from bidding
• Submission of authentic documents
• Authorizing the HoPE to verify submitted
documents
• Complies with the disclosure of relations
(w/ / HOPE, member of BAC, TWG,
Secretariat, end User in compliance)
• Complies with labor laws and standards
• Complies with the responsibilities of bidder
• Did not give or pay any person or official in
relation to any procurement project
2nd Envelope - Financial
a) Bid prices in Bill of Quantities
in the prescribed Bid form;
b) Detailed estimates including

a summary sheet indicating
the unit prices of construction
materials, labor rates and
equipment rentals used in
coming up with the bid; and
c) Cash flow by the quarter and

payments schedule.
• Bids shall be received by the BAC on
the date, time, and place specified in
the ITB. The ff periods from the last day
of posting of the ITB to the submission
and receipt of bids shall be observed.
ABC
(in Philippine Period
currency)
50M and below 50 calendar days
Above 50M 65 calendar days
• Bids submitted after the deadline shall

not be accepted by the BAC.
Modification and Withdrawal of Bids
• Modification allowed before the deadline
of the submission of bids
• Bidder not allowed to retrieve original bid

but allowed to send another bid equally
sealed, properly identified, marked as a
“modification”. Bid modifications received
after deadline shall not be considered and
shall be returned to the bidder unopened.
• A bidder may, through a letter, withdraw its

bid before the deadline for the receipt of
bids. Withdrawal of bids after the
applicable deadline shall be subject to
appropriate sanctions.
• A bidder may also express its intention not to participate in the bidding
through a letter which should reach and be stamped received by the
BAC before the deadline e for the receipt of bids.
• A bidder that withdraws its bids shall not be permitted to submit another
bid, directly or indirectly, for the same contract
(Rev. IRR, 2016 )
Posting – 7 c.d.

Advertise/Post ITB

Open
Financial
7 c.d.
1 c.d.

Additional Req. LCB

Within 7 c.d.
Bid Evaluation
• Purpose is to determine the Lowest
Calculated Bid (LCB)
• Subject to the “No Communication Rule”
(Members of the BAC, staff, personnel,
Secretariat, TWG, Observers) with bidders
until Notice of Award
• Shall not exceed 7 cd
• ABC shall be the ceiling/upper limit for
acceptable bid prices
• Criteria:
1) Completeness of bid – unless
allowed by ITB to have partial bids,
bids not addressing all required • If a required item is provided
items in the BOQ shall be but no price is indicated, the
considered non-responsive and same shall be considered as
disqualified. non-responsive
2) Arithmetical corrections – consider • Specifying a zero (0) or a
computational errors to enable dash (-), said item is being
proper comparisons; any offered free to the
adjustments shall be calculated in Government
monetary terms
Bid Evaluation
In case of discrepancies, the ff. shall prevail:
•words over figures;
•unit prices over total prices
•actual sum of prices over total price
•unit cost of bill of quantities over unit cost of
detailed estimate
TWO STEPS IN DETERMINING LCB

•Detailed evaluation of the financial
component of the bids, to establish the
correct calculated prices of bids; and
•Ranking of the total bid prices as so

calculated from the lowest to the highest. The
bid with the lowest price shall be identified as
the Lowest Calculated Bid.
Bid Evaluation
PRELIMINARY EXAMINATION OF BIDS
 Opening of the first bid envelopes (technical proposals)
– Determine each bidders compliance with documents
required
– Rate “passed” if all documents were complied
– Rate “failed” if one or more documents are missing and
immediately return to the bidder its second envelope
unopened
 Opening of the second bid envelope (financial proposals) of
each bidder whose first bid envelope was rated “passed”
– If one or more of the requirements is missing/insufficient, rate
the bid as “failed”
– Rate “passed” if all requirements were complied
 Only bids that are determined to contain all the bid

requirements for both components shall be rated “passed”
and be considered for evaluation
Bid Evaluation
RANKING OF TOTAL BID PRICES
To identify the lowest calculated bid (LCB), rank in
ascending order all total calculated bid prices (as
evaluated and corrected for computational errors,
discounts and other modifications) which do not
exceed the approved budget for the contract.
Ranking of Total Bid Prices, ABC = P5,000,000

Bidder Submitted Bid Total Calculated Rank
Price Bid Price
1 P4,700,000 P4,700,000 3
2 4,730,000 4,500,000 1
LCB
3 4,900,000 4,900,000 5
4 4,550,000 4,650,000 2
5 4,860,000 4,800,000 4
Bid Evaluation
Within 5 cd 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:
1. Tax clearance;
2. Latest income and business tax returns;
3. Certificate of PhilGEPS Registration; and
4. Other appropriate licenses and permits required by
the law and stated in the Biding Documents
Failure 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 dis qualify the bidder for award.
(Rev. IRR, 2016 )
Posting – 7 c.d.

Advertise/Post ITB

Open
Financial
7 c.d.
1 c.d.

Additional Req. LCB

Within 7 c.d.
Post-Qualification
1. To determine whether the bidder with the Lowest

Calculated Bid (LCB) complies and responsive to all
requirements and conditions for eligibility and bidding.
2. To declare the Lowest Calculated Responsive Bid (LCRB)
• Post-Qualification shall be
completed in not more than 12 cd;
maybe extended by HoPE but shall
not exceed 45 cd
• In case of post-disqualification of
LCB, the BAC is given the fresh
period to post-qualify the next.
Post-Qualification
Process
Verify, validate and ascertain all statements made and
documents submitted by the bidder with the Lowest Calculated
Bid
Criteria:
1. Legal Requirements. Licenses and agreements submitted
and the fact that he is not included in any Government
“blacklist”.
2. Technical Requirements. Performance in on-going and
completed projects, competence and experience of key
personnel to be assigned to the project, equipment to be
used.
3. Financial Requirements. Bid price proposal, the required
bank commitment to provide a credit line to the bidder in
the amount specified and over the period stipulated in the
Instructions to Bidders, NFCC, financial statements.
Post-Qualification
ABC = P5,000,000
Bidder Submitted Bid Total Calculated Rank
Price Bid Price
1 P4,700,000 P4,700,000 3
2 4,730,000 4,500,000 1
LCB
3 4,900,000 4,900,000 5
4 4,550,000 4,650,000 2
LCRB
5 4,860,000 4,800,000 4
Failure of Bidding
1. Shall be declared by the BAC in any of the
ff. circumstances:
• No bids are received;
• All prospective bidders are declared
ineligible;
• All bids fail to comply with the bid
requirements or fails in the post
qualification;
• The bidder with the LCRB/HRRB refuses
without justifiable cause to accept the
award of the contract; and
2. The HOPE exercises his right to reject all the
bids pursuant to Sec 41 of the IRR.
The BAC shall conduct a mandatory review of the terms and condition to
determine cause of the failure and conduct a rebidding with re-advertisement
and posting.
Should there occur a second failure of bidding, the procuring entity concerned may
enter into a negotiated procurement.
(Rev. IRR, 2016 )
Posting – 7 c.d.

Advertise/Post ITB

Open
Financial
7 c.d.
1 c.d.

Additional Req. LCB

Within 7 c.d.
Award of Contract
• Within 15 cd from the date
of receipt of the
recommendation of the
BAC, the HoPE shall approve
or disapprove the
recommendation.
• In the case of GOCC’s,
Board is given max. period
of 30 cd
• Approval of higher authority
max. period of 20 cd A single calculated and responsive
• Sending of notification to all bid shall be considered for award
other bidders 3 cd from (Sec. 36):
• only one prospective bidder submits
issuance of resolution
an Expression of Interest and/or
applies for eligibility check
• only one bidder meets the eligibility
requirements
• only one bidder submits a bid
Award of Contract
The Procuring Entity reserves
the right to reject any and all
bids, declare a failure of
bidding, or not award the
contract (Section 41.
Reservation Clause)
• if there is prima facie
evidence of collusion
• if the BAC is found to have
failed in following the
prescribed bidding
procedures
• for any justifiable and
reasonable ground where
the award of the contract
will not redound to the
benefit of the Government
(Rev. IRR, 2016 )
Posting – 7 c.d.

Advertise/Post ITB

Open
Financial
7 c.d.
1 c.d.

Additional Req. LCB

Within 7 c.d.
Approval and Signing of Contract
Approval of
contract by
higher authority
20-30 cd if
necessary.
Approval and Signing of Contract
The following documents shall form part of the contract (Sec. 37.2.3)
1. Contract Agreement
2. Bidding Documents
3. Winning bidder’s bid, including Elig. Req., TP & FP and all other
documents submitted
4. Performance Security
5. Credit Line per IRR, if applicable
6. Notice of Award of Contract
7. Other contract documents required by existing laws and/or the PE
concerned in the BDs, such as construction schedule and S-curve,
manpower schedule, construction methods, equipment utilization
schedule, construction safety and health program approved by
the DOLE, and PERT/CPM for infrastructure projects.
(Rev. IRR, 2016 )
Posting – 7 c.d.

Advertise/Post ITB

Open
Financial
7 c.d.
1 c.d.

Additional Req. LCB

Within 7 c.d.
Issuance of Notice to Proceed
The NTP must be issued together with a copy or copies of the

approved contract to the successful bidder within 7 cd from the
date of approval of the contract by the HoPE.
Contract deemed approved in case of inaction of HoPE after

lapse of 3 months
Issuance of Notice to Proceed
Performance Security
Form of Security (Panagot sa Minimum Amount in % of Total
Pagsasakatuparan) Contract Price
a) Cash, cashier’s / manager’s check, Ten percent
Bank draft /guarantee confirmed a (10%)
Universal or Commercial Bank
For biddings conducted by LGUs, the check may
be issued by other banks certified by the BSP
b) Bank draft/guarantee/irrevocable Ten percent

letter of credit issued by a Universal or (10%)
Commercial Bank
For biddings conducted by LGUs, bank
draft/guarantee or irrevocable letter of credit may
be issued by other banks certified by the BSP
c) Surety bond issued by a surety or Thirty percent
insurance company duly certified by (30%)
Insurance Commission
Alternative Methods
of Procurement
Exception to Public Bidding
The law allows the use of Alternative Methods of
Procurement (Sec. 48), in order to promote
economy and efficiency and obtain bt the
most advantageous price, provided:
1. It must be recommended by the BAC and
approved by the HOPE.
2. The conditions required by law are present.
Alternative Methods
• Small Value Procurement

• Two Failed Biddings
• Emergency Cases
• Take Over Of Contracts
• Adjacent Or Contiguous
Infrastructure • Agency-to-agency
• Scientific, Scholarly or Artistic Work,
Exclusive Technology and Media Services
• NGO Participation
• Community Participation
• UN Agencies
• By Administration
NEGOTIATED PAlternative
ROCUREMENT Methods
For unforeseen contingency
SMALL VALUE requiring immediate purchase
 Conditions:
1. Does not fall under Shopping*
2. Amount does not exceed the threshold
• For NGAs, GOCCs, GFIs, SUCs, Autonomous Regional Gov’t - Php 200,000
• LGUs – as follows:
Maximum Amount
Classification
Province City Municipality
1st Class 200,000 200,000 100,000
2nd Class 200,000 200,000 100,000
3rd Class 200,000 160,000 100,000
4th Class 160,000 120,000 100,000
5th Class 120,000 100,000 100,000
6th Class 100,000 100,000 100,000
ROCUREMENT Methods
For procurement of supplies and
SMALL VALUE equipment not available in DBM-PS
 Conditions:
1. Does not fall under Shopping*
2. Amount does not exceed the threshold
• For NGAs, GOCCs, GFIs, SUCs, Autonomous Regional Gov’t - Php 1,000,000
• LGUs – as follows:
Maximum Amount
Classification
Province City Municipality
1st Class 1,000,000 1,000,000 200,000
2nd Class 1,000,000 1,000,000 200,000
3rd Class 1,000,000 800,000 200,000
4th Class 800,000 600,000 100,000
5th Class 600,000 400,000 100,000
6th Class 400,000 200,000 100,000
ROCUREMENT Methods
SMALL VALUE
Revisions
a. Shopping 52.1(a) and Emergency Procurement– send at least 1
RFQ
b. Shopping 52.1(b) – send at least 3 RFQs, receive at least 3
quotations.
c. Two Failed Biddings, Small Value Procurement, Lease of Real
Property/Venue - send at least 3 RFQs, receive at least 1
quotation will suffice
Doubled the thresholds for all PEs, except for Barangays

(maintained at P50,000)
ROCUREMENT Methods
TWO FAILED BIDDINGS
 Conditions:
1. Two failed biddings
2. Mandatory review of the following:
 Minimum technical specifications
 ABC, which may be adjusted up to 20% from last bidding
3. Invite sufficient number to ensure competition
4. Information communicated on an equal basis
5. Simultaneous negotiations
6. Submission of best and final offer on a specified date
7. Successful offer to be selected:
 Meet minimum technical specifications
 Does not exceed ABC
8. Observers shall be invited in all stages
ROCUREMENT Methods
EMERGENCY CASES
 Conditions:
1. Imminent danger to life or property during calamity
2. When time is of the essence arising from natural or man-made
calamities
3. Other causes where immediate action is necessary:
 To prevent damage to or loss of life or property
 To restore vital public services, infrastructure facilities, and other
public utilities
4. Negotiate with any supplier, contractor, or consultant with technical,
legal, and financial capability
ROCUREMENT Methods
TAKE OVER OF CONTRACTS
 Conditions:
1. Rescinded or terminated contract
2. Immediate action is necessary:
 To prevent damage to or loss of life or property
 To restore vital public services, infrastructure facilities, and other public
utilities
3. Negotiate starting with the 2nd LCB or HRB at the bidder’s original bid price,
then to the next if negotiation fails
4. If negotiation fails, invite a short list of at least 3 to submit bids and negotiate
starting with the LCB or HRB
ROCUREMENT Methods
ADJACENT/CONTIGUOUS
 Conditions:
1. Subject contract is adjacent or contiguous to an on-going infrastructure
2. Original contract is a result of competitive bidding
3. Subject contract has similar/related scopes of work
4. Within the contractor’s/consultant’s capacity
5. Same prices or lower unit prices as the original contract less mobilization
cost
6. Amount does not exceed amount of the on-going project
7. No negative slippage
8. Negotiations commenced before expiry of original contract
ROCUREMENT Methods
AGENCY-TO-AGENCY
 Conditions:
1. Cost-benefit analysis indicating A-to-A is more efficient and economical
2. A-to-A does not exceed 25% of PE’s total budget for each category
(goods, infra, consulting)
3. Servicing agency has mandate to undertake project
4. Servicing agency owns or has access to necessary tools required for the
project
5. Other requirements provided in Implementing Guidelines on Agency-to-
Agency Arrangements (GPPB Resolution 18-2007)
NEGOTIATED PROCUREMENT
Sec. 7.3.3 In order to hasten project implementation,
Procuring Entities which may not have the proficiency or
capability to undertake a particular procurement, as
determined by the HoPE concerned, may outsource the
procurement tasks by:
a.) Requesting other GoP agencies to undertake such procurement

for them, through the execution of a memorandum of agreement
containing specific arrangements, stipulations and covenants, in
accordance with government budgeting, accounting and
auditing rules;
b.) Engaging private procurement agents to directly undertake the
procurement for them, subject to the guidelines to be issued by
the GPPB; or
c.) Recruiting or engaging consultants to assist them directly and/or
train their staff in the management of the procurement function.
ROCUREMENT Methods
NGO PARTICIPATION
 Conditions:
1. Appropriation law or ordinance earmarks an amount to be contracted
to NGOs
2. PE may opt to conduct public bidding or negotiated procurement for
the selection of NGO, subject to the rules provided in the guidelines
(GPPB Resolution 12-2007)
NEGOTIATED PROCUREMENT
COMMUNITY PARTICIPATION
 Conditions:
1. In the interest of project sustainability or to achieve certain specific
social objectives
2. PE to propose procedures, specifications, and contract packaging for
GPPB approval
ROCUREMENT Methods
UN AGENCIES
 Conditions:
1. Procure from UN Agencies
2. Small quantities of off-the-shelf goods, primarily in the fields of education
and health
3. Specialized products where the number of suppliers is limited (e.g.,
vaccines or drugs)
4. Infrastructure Projects involving advanced technologies, techniques
and innovations not locally available as certified by the HoPE, when it is
most advantageous to the government
ROCUREMENT Methods
SCIENTIFIC, SCHOLARLY, OR ARTISTIC WORK,
EXCLUSIVE TECHNOLOGY AND MEDIA SERVICES
 Conditions:
1. Work of Art; commissioned work or services of an artist for a specific artist
skills (e.g., singer, poet, writer, painter, sculptor, etc.);
2. Scientific, academic, scholarly work or research, or legal services
3. Highly specialized life-saving medical equipment, certified by DOH
4. Scientific, technical, economic, business, trade or legal journal,
magazine, paper, subscription, or other exclusive statistical publications
and references
5. Media documentation, advertisement, or announcement through
television, radio, newspaper, internet and other communication media.
6. Construction or installation of an infrastructure facility where the
material, equipment, or technology under a propriety right can only be
obtained from the same contractor
Note: Due to the nature of the info to be disseminated, alongside principles of transparency,
efficiency, and economy, award to more than one (1) supplier may be made.
ROCUREMENT Methods
BY ADMINISTRATION
 Conditions:
1. Implementing Agency (IA) must have a track record of having
completed or supervised a project by admin or by contract, similar to
and with a cost of at least 50% of the project at hand, and
2. IA owns or has access from other government agencies to necessary
tools and construction equipment required for the project
3. Other requirements provided in Guidelines for the Implementation of
Infrastructure Projects By Administration(GPPB Resolution 18-2006, as
amended by GPPB Resolution No. 07 – 2009)
 Increased in thresholds in the 2009 & 2010 GAA

1. Any project costing < PhP 20,000,000.00 may be undertaken by
administration or force account
2. Project costing > PhP 20,000,000.00 should obtained the ff:
 Authority from the DPWH Secretary – PhP 20,000,000.00 – PhP
50,000,000.00)
 Authority from the President of the Philippines, upon the DPWH
Secretary’s favorable recommendation - > PhP 50,000,000.00.
Posting Requirement
• 3 DAY POSTING shall be required for the ff:
• NGO Participation
• Posting of Awards for all Alternative Methods, except for
ABCs Php 50,000 and below
• PhilGEPS Registration Number, as a condition for award
on the ff:
• Take over of Contracts
• Scientific, Scholarly, Artistic Works
Annex “H”
ANNEX H: CONSOLIDATED GUIDELINES FOR THE
ALTERNATIVE METHODS OF PROCUREMENT
• Issuance of Annex “H” of the 2016 Revised IRR of RA 9184
to provide Consolidated Guidelines to the ff:
• Negotiated Procurement (Two Failed Biddings,
Emergency Cases, Take over of Contracts,
Adjacent/Contiguous, Agency-to-Agency,
Scholarly, Artistic Works etc,)
• Participation of Observers
• Reference to brand names allowed in consumable items
or parts that are compatible to existing equipment of the
same brand & will maintain functionality and useful life of
equipment
• Alternative Methods exempt from Bid Security
Requirement
Warranty (Sec. 62)
 The contractor shall assume full responsibility for the
contract work from the time project construction
commenced up to final acceptance by the
government and shall be held responsible for any
damage or destruction of the works except those
occasioned by force majeure.
 The contractor shall be required to put up a warranty
security in the form of :
• Cash deposit / cash bond / letter of credit – at least
5% of the total contract price (TCP)
• Bank guarantee – at least 10% of the TCP
• Surety bond – at least 30% of the TCPc
Warranty (Sec. 62)
Defects / Liability Period Warranty Period
1 Year 2 to 15
Project Final
Years
Completion Acceptance
Contract Implementation
Variation Order – Change Order / Extra Work Order
• Change Order – may be Provided that cumulative

issued by HoPE to cover amount of variation order does
any increase/decrease in not exceed 10% of the project
quantities cost
• Extra Work Order – may In exceptional cases where it is

be issued by the HoPE to urgently necessary to complete
cover new work necessary the original scope of work, the
for the completion, HoPE may authorize the
improvement, or protection variation order beyond ten
of project percent (10%) but not more than
twenty percent (20%) subject to
Supplemental Agreement no the guidelines to be determined
longer allowed by the GPPB.
Additional / Extra Work Costing
• Change Orders involving work items exactly the same or

similar to original contract, the unit prices of original
contract shall be used
• Additional/extra works duly covered by Extra Work
Orders involving new work items shall be based on the
direct unit costs used in the original contract (e.g. unit
cost of cement, rebar, form lumber, labor rate,
equipment, rental, etc)
• The direct cost of new work item shall be combined with
mark-up factor (i.e. taxes and profit) used by contractor
in his bid to determine the unit price of the new work
item
Variation Orders Timeframe
Timeframe for the processing of variation

orders from the preparation up to the
approval by the procuring entity shall
not exceed 30 calendar days.
Advance Payment
• Equivalent to 15% of the Total Contract

Price
• Shall be recouped from Progress Billings
Progress Payment
• Contractor may request for payment for

work accomplished
• Request for payment shall be verified and
certified by gov’t project engineer
Retention Money
• Progress payments are subject to 10% 1%

retention
• Based on total amount due prior to any
deduction
• Shall be retained from every progress
payment until 50% completion of the works,
subject to satisfactory and on time
completion of the project.
Liquidated Damages
LD = 1/10 of 1% of the cost of the unperformed

portion for every day of delay
• Once the cumulative amount of liquidated damages reaches

ten percent (10%) of the amount of the contract, the Procuring
Entity may rescind or terminate the contract, without prejudice
to other courses of action and remedies available under the
circumstances (Sec. 68)
• HoPE may award the contract to a qualified contractor through
negotiation
• Performance Security shall be forfeited
• Forfeited Performance Security shall be aside from the amount
of LD contractor shall pay to the government
Suspension of Work
 Conditions:
1. Force majeure
2. Adjustment of plans to suit field conditions
3. Right-of-way Problem
4. Owner-furnished construction plans
5. Peace and Order condition extremely dangerous
6. Owner-furnished materials and equipment not delivered
7. Delay in payment of Progress Billing beyond 45 calendar days
Extension of Contract Time
 Conditions:
1. Contractor shall notify the PE prior to expiration of the contract
time and within 30 cd after additional work has commenced
2. Shall be granted for unworkable days considered for the
execution of works at the site
3. May be granted only when the activities fall within the critical
path method of the PERT/CPM network
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Implementing Rules &

Services are beyond the capability

Services would not be inconsistent

B. PREPARATION OF BIDDING DOCUMENTS

j) Preparation of Site or Right-of-Way Plans

Projects to be implemented by Phases, the PE shall

• Field Surveys and Investigations – which may include aerial,

• Contract plans – incorporating the site development plan,

• Quantities – all construction quantities shall be computed to

ABC = DC + IC DIRECT COST INDIRECT COST

• Material Cost – cost at source, expenses for hauling to project

• Labor Cost – salaries, wages as authorized by DOLE, and fringe

• Equipment Expenses – rental rates, and mobilization and

• Overhead Expenses – 7-11% of EDC

• VAT – 5% of the sum of EDC, OCM, and Profit

• Items not subject to OCM and Profit Mark-up

Indirect Cost Total Indirect

MARK-UPS IN TOTAL MARK- TOTAL

(9) (10) (11) (12) (13)

PREPARED /SUBMITTED BY: RECOMMENDING APPROVAL APPROVED BY:

__________________________ _____________________________ ___________________________

MARK-UPS IN TOTAL MARK- TOTAL

(9) (10) (11) (12) (13)

1 CEMENT 100 312.00 31,200

PREPARED /SUBMITTED BY: RECOMMENDING APPROVAL APPROVED BY:

__________________________ _____________________________ ___________________________

MARK-UPS IN TOTAL MARK- TOTAL

(9) (10) (11) (12) (13)

1 CEMENT 100 312.00 31,200 15 10 25 7800 1950 9750 40,950 409.50

PREPARED /SUBMITTED BY: RECOMMENDING APPROVAL APPROVED BY:

__________________________ _____________________________ ___________________________

• Program of Work – Before prosecuting any project, the

• Warranty Period – Likewise, the Bidding Documents shall

• Value Engineering – For major projects as specified by the

• Site or Right-of-Way Acquisition Plans and Resettlement

The plane rolls on its

The plane is introduced

The bidding documents must be prepared in

No bidding and award of contract for

In case of projects with pending acquisition of

Specifications for the procurement of

1. For projects requiring a variety of goods and works, separate contracts

2. For a project requiring similar but separate items of equipment or works,

3. In certain cases, the PE may require a turnkey contract under which

Pre-Procurement Issue Bidding Call/Hold Pre-Bid

Receive the Open Technical (with Evaluate &

Approve Resolution Prepare & Issue

Within 5 c.d. Within 45 c.d. Within 15 c.d. Within 10 c.d.

What is the purpose

Reiterate & emphasize the

Note: Not required for

Pre-Procurement Issue Bidding Call/Hold Pre-Bid

Receive the Open Technical (with Evaluate &

Approve Resolution Prepare & Issue

Within 5 c.d. Within 45 c.d. Within 15 c.d. Within 10 c.d.

• Advertisement shall be made for a max. of 45 cd prior to opening of

• Shall specify the ABC and source of

Pre-Procurement Issue Bidding Call/Hold Pre-Bid

Receive the Open Technical (with Evaluate &

Approve Resolution Prepare & Issue

Within 5 c.d. Within 45 c.d. Within 15 c.d. Within 10 c.d.

More than 500,000 up to 1M 1,000.00

• Provide instances when bid doc fees

• Bid documents shall reflect the

____________ _ _____________

____________ _ _____________

____________ _ _____________