Alternative Methods

of Procurement

Republic Act 9184, Article XVI

Alternative Methods
- under Section 48
- approval of the Head of the Procuring
Entity
- done to promote economy and
efficiency
- the most advantageous price for the
government is the priority

1. Limited Source
Bidding
Also known as Selective Bidding

Involves direct invitation to bid

Often done by the Procuring Entity

Utilizes a pool of pre-selected

suppliers and consultants
Usually those with known experience
and proven capabilities

When do we resort to

LSB?
(There are two conditions.)

Dont forget!
LSB= Limited Source
Bidding, method for
procurement of goods
and consulting services

(1)
Procurement of highly
specialized types of
Goods and Consulting
Services which are known
to be obtainable only from
a limited number of
sources

Source: Youtube - The Richest

Source: ALS Global - Downloads

(2)
Procurement of major
plant components where
it is deemed advantageous
to limit the bidding to
known eligible bidders in
order to maintain an
optimum and uniform level
of quality and performance
of the plant as a whole

Source: Sioux - Steam Generator

Source: Nuclear-Power

2. Direct
Contracting
aka Single Source Procurement

No elaborate bidding
documents
Supplier submits a price quotation or a
pro-forma invoice

Either of these 3 conditions

Procurement of
goods of
proprietary
nature

Procurement of
critical
components from
a specific supplier
as a condition

Procurement of
goods from an
exclusive
dealer

3. Repeat Order

Previous winning bidder

A need to replenish goods

Under a contract awarded previously
through Competitive Bidding

(1) Unit prices must be the same as or lower than

those in the original contract
(2) The repeat order will not result in splitting of
contracts, requisitions, or purchase orders
(3) The repeat order shall be availed of only within six
(6) months from the contract effectivity date
(4) The repeat order shall not exceed twenty-five
percent (25%) of the quantity of each item in the
original contract.

4. Shopping

Submission of price quotations

But only for readily available off-theshelf goods

Procured directly
From suppliers of known qualification

(1)
When there is
unforeseen
contingency
requiring immediate
purchase

(2)
Procurement of
ordinary or regular
office supplies and
equipment not
available in the
Procurement Service

4. Negotiated
Procurement

Also for infrastructure projects

Not only for goods and consulting
services

Direct negotiation of a contract

Done by the procuring entity with a
technically, legally, and financially able
supplier, contractor, or consultant

It is allowed only in the following

instances:
(1) Two failed biddings
(2) Emergency Cases
(3) Take-over of contracts
(4) Adjacent or contiguous
(5) Agency-to-agency