HARMONIZED WORLD

BANK PROCUREMENT
GUIDELINES FOR I-BUILD
Orientation of MLGU BAC
Municipality of Talavera, Nueva Ecija
August 30, 2018
PSO Procurement Unit
Atty. Jennilyn M. Dawayan, Engr. Mary Ann P. Capillo,
Engr. Renylyn C. Rosas, Engr. Jenny U. Gabor, Engr. Rachel F. Diva
 PROCUREMENT METHODS
METHOD
PROCUREMENT METHOD THRESHOLD THRESHOLD **
METHODS* ** Goods Works

• ≥ $ US 3,000,000.00 ≥ $ US 15,000,000.00
ICB
• (P150M @P50: $ 1US) (P750M @P50: $1 US)

• ≤ $ US 3,000,000.00 ≤ $ US 15,000,000.00
NCB
• (P150M @P50: $ 1US) (P750M @P50: $1 US)

• ≤ $ US 200,000.00
Shopping
• (P10M @P50: $ 1US)

• Subject to justification as per WB Guidelines para

Direct Contracting
3.7

Community Participation
• ≤ $ US 50,000.00
Community Force Account (CFA) (P2.5M : $1 US)
-Shopping (Aide Memoir 3rd Implementation Support
-Direct Contracting Mission)

* Schedule 2 Section 3 of the Loan Agreement pages 13-14

** PRDP Project Appraisal Document pages 64 to 67 amended in the Aide Memoir 4th World Bank
Implementation Support Mission
PRIOR REVIEW THRESHOLD FOR WORKS
CATEGORY PROCUREMENT PRIOR REVIEW THRESHOLD (IN US$)**
METHODS*
LUZON A & LUZON NPCO
MINDANAO B& WORLD
LUZON A & LUZON B &
VISAYAS BANK
MINDANAO VISAYAS
Works ICB All contracts
PBD 2016 for NCB ≤ 1,000,000 ≤ 500,000 ≥ 1,000,000 ≥ 500,000 ≥ 10,000,000
Works to to
≥ 10,000,000 ≥10,000,000

Shopping ≤ 200,000.00 ≤ 200,000 ≥ 1,000,000 ≥ 200,000 None

Direct Subject to justification as per WB Guidelines para ≥ 2,000,000

Contracting 3.7
Enterprise Community ≤ 50,000.00 ≤ None None
Investment 50,000.00
Agreement Participation:
- Community Force
Account (CFA)
- Shopping
- Direct Contracting

* Schedule 2 Section 3 of the Loan Agreement pages 13-14

** Aide Memoir 3rd and 4th Implementation Support Mission
PRIOR REVIEW
PRIOR REVIEW THRESHOLD
THRESHOLD FOR GOODS
FOR GOODS
CATEG PROCUREMENT PRIOR REVIEW THRESHOLD (IN US$)**
ORY METHODS*
LUZON A & LUZON B NPCO
MINDANAO & VISAYAS WORLD BANK
LUZON A & LUZON B &
MINDANAO VISAYAS

Goods ICB All contracts

PBD NCB ≤ 1,000,000 ≤ 500,000 ≥ 1,000,000 ≥ 500,000 ≥ 2,000,000
2016 for to to
Goods ≥ 2,000,000 ≥2,000,000
RFQ Shopping ≤ 200,000 ≤ 200,000 ≥ 1,000,000 ≥ 200,000

Direct Subject to justification as per WB Guidelines para 3.7 ≥ 2,000,000

Contracting
Enterpri Community ≤ 50,000.00 ≤ 50,000.00 None None
se Participation:
Investm -Community
ent
Force Account
Agreem
ent (CFA)
- Shopping
- Direct
Contracting
* Schedule 2 Section 3 of the Loan Agreement pages 13-14
** Aide Memoir 3rd and 4th Implementation Support Mission
 x
Philippine
Bidding
Documents for
FMR and Civil
Works as
Harmonized with
Development
Partners : Fifth
Edition

PRDP
REQUIREMENTS
 CHECKLIST FOR
I-BUILD SUB-PROJECTS
 BID OPENING CHECKLIST
BID IPEN
Registration
Improvement of Bado Dangwa-Guilayon Certification of the
Farm to Market Road Company such as
Eligibility DTI, SEC, CDA
• Registration Certification of the Company
• List of relevant contracts as specified in ITB Clause 5.4 hereof
(Basis of Critical Eligibility and Qualification Criteria:
(a) At least one (1) work of a nature and complexity equivalent to the Works
generally within the last five (5) years with at least fifty percent (50%) of the
Estimated Project Cost (EPC) in the amount of PhP115,350,000.00; and
(b) Average 3-year turnover of Total Projects of at least 100% of the EPC in
the amount of PhP230,700,000.00 as evidenced by the submitted Audited
Financial Statements for the past three (3) years.
ENVELOPE 1

• Audited Financial Statements for the past three (3) years

• Joint Venture, the JV Agreement, if existing, or a signed Statement from the
partner companies that they will enter into a JV in case of award of contract
Technical
• Bid Security, in a form of Bid Securing Declaration
• Project requirements, which shall include the following:
(i) List of Contractor’s personnel (viz:
a. Project Manager – Minimum of ten (10) years in his profession and has a
minimum of five (5) years relevant experience as Project Manager in road
construction,
b. Project Engineer – Licensed Civil/Agricultural Engineer with at least five
(5) years of experience and has handled five (5) road construction projects
as Project Engineer,
c. Materials Engineer – Licensed Civil Engineer duly accredited by DPWH
following DPWH D.O. 98, S. of 2016 as Materials Engineer II (as required
under SCC Clause 6.5), to be assigned to the contract to be bid, with their
ENVELOPE 2

complete qualifications and experience data

(ii) List of Contractor’s major and critical equipment units, which are owned
and are supported by proof of ownership which must meet the minimum
requirement for the contract set in the Bid Data Sheet
Financial
• Bid price in approved Bid form
 BID IPEN
BID OPENING CHECKLIST
Eligibility
• Registration Certification of the Company
• List of relevant contracts as specified in ITB Clause 5.4 hereof
(a) At least one (1) work of a nature and complexity equivalent to the Works
generally within the last five (5) years with at least fifty percent (50%) of the
Estimated Project Cost (EPC) in the amount of PhP19,121,500.00; and (b)
Average 3-year turnover of Total Projects of at least 100% of the EPC in the
amount of PhP38,240,000.00 as evidenced by the submitted Audited
Financial Statements for the past three (3) years.
• Audited Financial Statements for the past three (3) years
ENVELOPE 1

• Joint Venture, the JV Agreement, if existing, or a signed Statement from the

partner companies that they will enter into a JV in case of award of contract

Technical
• Bid Security, in a form of Bid Securing Declaration
• Project requirements, which shall include the following:
(a) (i) List of Contractor’s personnel (viz a. Project Manager – Minimum of
ten (10) years in his profession and has a minimum of five (5) years relevant
experience as Project Manager in road construction, b. Project Engineer –
Licensed Civil/Agricultural Engineer with at least five (5) years of relevant
experience in road construction and has handled five (5) road construction
projects as Project Engineer and shall be assigned full time to the project. c.
Materials Engineer – Licensed Civil Engineer duly accredited by DPWH
following DPWH D.O. 98, S. of 2016 as Materials Engineer I (as required
under SCC Clause 6.5), to be assigned to the contract to be bid, with their
complete qualifications and experience data.
(b) List of Contractor’s major and critical equipment units, which are owned
ENVELOPE 2

and are supported by proof of ownership which must meet the minimum
requirement for the contract set in the Bid Data Sheet

Financial
• Bid price in approved Bid form
 BID IPEN
BID OPENING CHECKLIST
Eligibility
• Registration Certification of the Company
• List of relevant contracts as specified in ITB Clause 5.4 hereof
List of relevant contracts as specified in ITB Clause 5.4 hereof
(a) At least one (1) work of a nature and complexity equivalent to the Works
generally within the last five (5) years with at least fifty percent (50%) of the
Estimated Project Cost (EPC) in the amount of PhP115,350,000.00; and
(b) Average 3-year turnover of Total Projects of at least 100% of the EPC in
the amount of PhP230,700,000.00 as evidenced by the submitted Audited
Financial Statements for the past three (3) years.
• Audited Financial Statements for the past three (3) years
ENVELOPE 1

• Joint Venture, the JV Agreement, if existing, or a signed Statement from the

partner companies that they will enter into a JV in case of award of contract

Technical
• Bid Security, in a form of Bid Securing Declaration
• Project requirements, which shall include the following:
(a) (i) List of Contractor’s personnel (viz a. Project Manager – Minimum of
ten (10) years in his profession and has a minimum of five (5) years relevant
experience as Project Manager in road construction, b. Project Engineer –
Licensed Civil/Agricultural Engineer with at least five (5) years of relevant
experience in road construction and has handled five (5) road construction
projects as Project Engineer and shall be assigned full time to the project. c.
Materials Engineer – Licensed Civil Engineer duly accredited by DPWH
following DPWH D.O. 98, S. of 2016 as Materials Engineer I (as required
under SCC Clause 6.5), to be assigned to the contract to be bid, with their
complete qualifications and experience data.
(b) List of Contractor’s major and critical equipment units, which are owned
ENVELOPE 2

and are supported by proof of ownership which must meet the minimum
requirement for the contract set in the Bid Data Sheet

Financial
• Bid price in approved Bid form
 Improvement of
BID IPEN Poblacion Sur-La
BID OPENING CHECKLIST Torre-Mamandil Farm
Eligibility to Market Road
• Registration Certification of the Company
• List of relevant contracts as specified in ITB Clause 5.4 hereof -EPC : P38,243,000.00
(a) At least one (1) work of a nature and complexity equivalent to the Works Similar Project =
generally within the last five (5) years with at least fifty percent (50%) of the Construction /
Estimated Project Cost (EPC) in the amount of PhP115,350,000.00; and
(b) Average 3-year turnover of Total Projects of at least 100% of the EPC in Rehabilitation of
the amount of PhP230,700,000.00 as evidenced by the submitted Audited Roads or as defined
Financial Statements for the past three (3) years.
in ITB Clause 5.4 of
• Audited Financial Statements for the past three (3) years the BDS
• Joint Venture, the JV Agreement, if existing, or a signed Statement from the
ENVELOPE 1

partner companies that they will enter into a JV in case of award of contract
-Completed for the
past 5 years of
Technical P19,121,500,000
• Bid Security, in a form of Bid Securing Declaration -Supported by NOA,
• Project requirements, which shall include the following: Contract, NTP and
(i) List of Contractor’s personnel (viz
a. Project Manager – Minimum of ten (10) years in his profession and has a Certificate of
minimum of five (5) years relevant experience as Project Manager in road Completion and
construction, Acceptance
b. Project Engineer – Licensed Civil/Agricultural Engineer with at least five
(5) years of relevant experience in road construction and has handled five
(5) road construction projects as Project Engineer and shall be assigned full
time to the project. -
c. Materials Engineer – Licensed Civil Engineer duly accredited by DPWH
following DPWH D.O. 98, S. of 2016 as Materials Engineer I (as required
under SCC Clause 6.5), to be assigned to the contract to be bid, with their
complete qualifications and experience data.
ENVELOPE 2

(ii) List of Contractor’s major and critical equipment units, which are owned
and are supported by proof of ownership which must meet the minimum
requirement for the contract set in the Bid Data Sheet

Financial
• Bid price in approved Bid form
BID SECURITY IN THE FORM BID SECURING
DECLARATION
 BID IPEN
For FMR:
BID OPENING CHECKLIST 1. Project Manager – Minimum of ten (10)
years in his profession and a minimum of five
Eligibility (5) years relevant experience as Project
• Registration Certification of the Company
• List of relevant contracts as specified in ITB Clause 5.4 hereof
(a) At least one (1) work of a nature and complexity equivalent to the Works
Manager in road construction,
generally within the last five (5) years with at least fifty percent (50%) of the
Estimated Project Cost (EPC) in the amount of PhP62,469,000.00; and (b)
2. Project Engineer– Licensed Civil/Agricultural
Average 3-year turnover of Total Projects of at least 100% of the EPC in the
amount of PhP124,938,000.00 as evidenced by the submitted Audited Financial
Engineer with at least five (5) years of
Statements for the past three (3) years. experience and has handled five (5) road
• Audited Financial Statements for the past three (3) years
• Joint Venture, the JV Agreement, if existing, or a signed Statement from the construction projects as Project Engineer,
partner companies that they will enter into a JV in case of award of contract
3. Materials Engineer – Licensed Civil Engineer
Technical duly accredited by DPWH as Materials
ENVELOPE 1

• Bid Security, in a form of Bid Securing Declaration
• Project requirements, which shall include the
following:
(a) (i) List of Contractor’s personnel (viz a. Project
Manager – Minimum of ten (10) years in his
profession and has a minimum of five (5) years
relevant experience as Project Manager in road
construction,
b. Project Engineer – Licensed Civil/Agricultural
Engineer with at least five (5) years of relevant
experience in road construction and has handled five
(5) road construction projects as Project Engineer
and shall be assigned full time to the project.
c. Materials Engineer – Licensed Civil Engineer duly
accredited by DPWH following DPWH D.O. 98, S. of
2016 as Materials Engineer I (as required under SCC
Clause 6.5), to be assigned to the contract to be bid,
with their complete qualifications and experience
ENVELOPE 2
Engineer following the DPWH D.O 98 Series
of 2016 (as required under SCC Clause 6.5)),
to be assigned to the contract to be bid, with
their complete qualifications and experience
data
OTHER INFRA:
1.Project Engineer – Licensed Civil/Agricultural
Engineer with at least 5 years of relevant work
experience and has at least supervised 2 similar
construction/rehabilitation of Road or Multi-
purpose Drying Pavement Project (as required
under SCC Clause 6.5),
2. Materials Engineer – Licensed Civil Engineer

data.
(b) List of Contractor’s major and critical equipment units, which are owned and
are supported by proof of ownership which must meet the minimum requirement with at least 3 years of relevant work in materials
for the contract set in the Bid Data Sheet
and quality control, duly accredited by DPWH), to
Financial be assigned to the contract to be bid, with their
• Bid price in approved Bid form complete qualification and experience data
 BID IPEN
BID OPENING CHECKLIST
Eligibility For Owned Equipment:
Acceptable proof of ownership for
• Registration Certification of the Company
owned equipment must be Deed of
• List of relevant contracts as specified in ITB Clause 5.4 hereof (a) At least one
(1) work of a nature and complexity equivalent to the Works generally within the last five (5) years
Sale/OR/CR.
with at least fifty percent (50%) of the Estimated Project Cost (EPC) in the amount of
PhP62,469,000.00; and (b) Average 3-year turnover of Total Projects of at least 100% of
the EPC in the amount of PhP124,938,000.00 as evidenced by the submitted Audited Financial
Statements for the past three (3) years.
ITB Clause 12.1 (b) (ii.3) of the Bid
• Audited Financial Statements for the past three (3) years Data Sheet
• Joint Venture, the JV Agreement, if existing, or a signed Statement from the partner companies
that they will enter into a JV in case of award of contract
ENVELOPE 1

Technical
• Bid Security, in a form of Bid Securing Declaration
• Project requirements, which shall include the following:
(a) (i) List of Contractor’s personnel (viz a. Project Manager – Minimum of ten (10) years in his
profession and has a minimum of five (5) years relevant experience as Project Manager in road
construction, b. Project Engineer –
Licensed Civil/Agricultural Engineer with at least five (5) years of relevant experience in road
construction and has handled five (5) road construction projects as Project Engineer and shall be
assigned full time to the project. c. Materials Engineer – Licensed Civil Engineer duly
accredited by DPWH following DPWH D.O. 98, S. of 2016 as Materials Engineer I (as required
under SCC Clause 6.5), to be assigned to the contract to be bid, with their complete qualifications
and experience data.
• (b) List of Contractor’s major and critical equipment
units, which are owned and are supported by proof of
ownership which must meet the minimum requirement
for the contract set in the Bid Data Sheet
ENVELOPE 2

Financial

• Bid price in approved Bid form

 BID IPEN
OTHER REQUIREMENTS

1. Notwithstanding the BAC’s declaration of non-responsiveness of

the first bid envelope, the financial proposals contained in the second
bid envelopes of all the bidders shall be read.
The first and second envelopes shall NOT be returned to the
bidders.

2. Foreign bidders may submit the equivalent documents, if any,

issued by the country of the foreign bidder.

3. BID DATA SHEET Clause 20.3

Each Bidder shall submit one (1) original and four (4) copies of the
first and second components of its bid.

4. Bid price in approved Bid form

 BID IPEN
ROADBLOCKS IN AWARDING
CHALLENGES OF CONTRACTS
IN PROCUREMENT
• JV Agreement, if existing, or a signed Statement from the
partner companies that they will enter into a JV in case of
award of contract
• Application of Special PCAB License must be five (5) working
days before the bid opening date (PCAB Board Resolution No.
186, Series of 2014)
Joint Venture • Basis: Section 38 of RA 4566 : Unlawful for 2 of more licensees,
xxx, to jointly submit a bid or otherwise act in the capacity of a
contractor without first having secured an additional license xxx
• Section 10.3 of Rule 10 of the IRR of 4566 : Joint license
needed to submit a bid, enter into contract and implement a
project or otherwise act as licensed contractor

Construction
Health Safety • Delayed approval by DOLE
Program

Low Procurement
• Moderately Satisfactory
Rating
 PROCUREMENT RATING
Sixth Implementation Support Mission
May 21-June 11, 2018
 PROCUREMENT OBSERVATIONS
Sixth Implementation Support Mission
May 21-June 11, 2018
Observations NPCO PSO RPCO LGU

Need to more regularly assist the LGUs and proponent X X

groups and to provide guided decision making, to avoid
delays in the downloading of funds from LGUs to PGs,
insufficient LGU counterpart, and delays in the
procurement and implementation of sub-projects.
The updated Procurement Manual requires further X
fleshing out, especially on community participation in
procurement by the PGs, based on the observations
during this mission. The project will incorporate the
mission observations and agreements in the updated
Procurement Manual, and re-submit to the Bank by June
30, 2018
Re-orientation on Goods procurement needs to be X X X
scheduled, preferably in July 2018.

Mission has observed marked improvement in the X X X X

procurement system but still requires further efforts in
areas of processing timeliness, and promoting wider
competition
 PROCUREMENT OBSERVATIONS
Sixth Implementation Support Mission
May 21-June 11, 2018
Observations NPCO PSO RPCO LGU

Conduct of procurement and award of contracts continue to be X X X X

generally in compliance with the provisions of the Loan
Agreement, except for some findings detailed in the Annex. While
processing timeline improved, the overall period from bid
opening to award of contract is still beyond 90 days (or the
validity of bids).
Due to numerous government and private sector infrastructure X
projects, there seems to be a problem of attracting bidders to
participate in the project procurement. The low level of
participation of bidders is affecting competition, and possibly the
economy aspect of procurement. It was observed in several
instances that contracts have been awarded based on lone bidder.
The use of community participation in procurement by the X X X
Proponent Groups need further fleshing out. Issues related to
eligibility, delays in procurement of subsequent tranches, and the
use of official receipts and check payments, among others, need
some clarifications.
Certain provisions of the bidding/contract documents need X X X
highlighting during procurement and contract implementation
 PROCUREMENT RECOMMENDATIONS
Sixth Implementation Support Mission
May 21-June 11, 2018
Strictly follow the procurement
timelines (i.e. bid opening to
award/decision of no more
than 90 days, and award to
NTP within 30 days) on a
continuing basis by ensuring:
Conflict of interest (CoI), and
contract termination provisions
are very clear in the
bidding/contract documents.
The project would institute
combination of many actions to
attract participation of bidders,
that would include but not
limited to:
Realities and conditions on the
ground should be spelled-out
in relevant procurement and
financial management
manuals, as necessary. These
would include, among others:
• LGU’s prompt submission of the evaluation report
• No unnecessary activities such as post-qualification visits/contacts;
• Provision of higher preference to LGU’s with more efficient procurement
• Record in prioritization of pipeline sub-projects
• Highlighting CHSP requirements during pre-bid conference
• Conduct of joint technical review via teleconferencing or other modes of virtual meetings
• RPCO level NOL in case of re-bidding involving no bid received.
• The CoI provisions should be highlighted with the proponents during preparation, and
with the bidders during pre-bid conference.
• In the case of contract termination, the process stated in the contract should be
observed.
• However, this should only be done in extreme cases.
• As much as possible, LGUs/project should exhaust all means to bring the contract into
completion by pro-active monitoring and remedial action during construction supervision.
•Continuous dialogue with the contracting industry to further improve the overall procurement and
contracting practice under the project;
•More efficient procurement and contract processing, prompt payment strictly in accordance with
the bidding/contract document provisions;
•Review and rationalization of the fund releasing procedures bearing in mind that the project/PSO
is not a paying entity but rather a fund releasing office only to the I-Build contracts under the
LGUs, off-site and on-line availability of bidding documents.
•* Eligibility of sources of supplies (i.e. PG cannot be the source of its own procurement while
members may be eligible subject to certain safeguarding provision such as price benchmarking);
•Use of payment supporting documents (e.g. acknowledgment receipts, RER, etc.) in the absence
of official receipts, non-restriction of PG bank account, as well as payment, to checking and
checks only, respectively.
 A PROCUREMENT TALE
• “Many Nigerians get excited when the government execute such
projects as newly constructed schools, roads, health centers and other
government funded projects which they tag as developmental projects.
They get excited over what they perceive as a performing government
carrying out its corporate responsibilities. But they are ignorant of the fact
that public funds cannot disappear in a vacuum, it has to be accounted
for; therefore contracts must be awarded to make the stealing legal and
official. Yet, the people only wish that more of such projects can be
executed; they fail to understand that with a defective procurement
process in place, the more projects a government executes under this
abnormal process; the more kickbacks its officials receive, the more
money is stolen, the more corruption is patronized. In fact, under our
present abnormal procurement process, the more project a government
executes, the more money its officials steal through each contract
inflation and kickbacks. If we therefore do not fix our public procurement
lapses; stealing through contract inflation and kickbacks will become an
inevitable and official act of corruption as it has seemingly already
become!”
― Tony Osborg, Can Nigeria Bake Her Own Bread?
THANK YOU FOR
LISTENING…..