Transcript of PROCUREMENT OF INFRASTRUCTURE PROJECTS

ADJACENT OR CONTIGUOUS PROJECTS

a. ) Original contract is the result of a

Competitive Bidding
;

b. ) Subject contract to be negotiated has

similar
or related scopes of work;

c. ) Within the
contracting capacity
of the contractor;

d. ) Contractor uses the

same prices
or lower unit prices as in the original contract less mobilization cost;

e. ) Amount involved
does not exceed
the amount of the ongoing project;

f. ) Contractor has no
negative slippage/delay;
and

g. )Negotiations for the procurement are commenced

before the expiry
of the original contract.

Negotiated Procurement

TAKE OVER OF CONTRACTS

Procedure
Start negotiations with the second lowest calculated bidder

If negotiation fails, then with the third LCB at his original price

If the negotiation fails again, a short list of at least three (3) eligible contractors shall be invited
to submit their bids, and negotiation shall be made starting with the lowest calculated bidder.

Negotiated Procurement
TAKE OVER OF CONTRACTS

Contracts, which have been rescinded or terminated for causes provided for in the contract and
existing laws

Where immediate action is necessary to prevent damage to or loss of life or property, or to

restore vital public services, infrastructure facilities and other public utilities.

Negotiated Procurement

EMERGENCY CASES
Definition

In case of imminent danger to life or property during a state of calamity

When time is of the essence arising from natural or man-made calamities
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.

Negotiated Procurement

TWO FAILED BIDDINGS

Mandatory review
of the terms, conditions, specifications, and cost estimates

Revision
of the minimum technical specifications, and if necessary, adjust the ABC, subject to the
required approvals. However, the ABC cannot be increased by more than twenty percent (20%)
of the ABC for the last failed bidding

Invitation and negotiations

Negotiated Procurement

For DEFECTS LIABILITY

- One (1) year from project completion up to final acceptance (defects liability period)

- Covered by Performance Security

WARRANTIES

Contractor may suspend work when:

There are ROW problems

2. Requisite construction plans are not issued

3. Peace and order conditions make it extremely dangerous

4. Failure of Procuring Entity to deliver government-

furnished materials and equipment

5. Delay in payment of contractor’s claim for progress

billings beyond 45 c.d., except when there are
justifiable reasons which are communicated in
writing to the contractor

SUSPENSION OF WORK

Imposed when contractor refuses/fails to satisfactorily complete the work within the contract
specified time

Equivalent to 1/10 of 1% of the cost of the unperformed work for every day of delay

Procuring entity need not sustain actual damage to be entitled to liquidated damages

If delay exceeds 10% of the contract time or liquidated damages exceed 10% of total contract
price, contract may be rescinded

LIQUIDATED DAMAGES

Equivalent to 10% of each progress billing;

Retained to cover uncorrected discovered defects and third party liabilities;

Retained until 50% of the works are completed;

Not deducted after 50% completion of works if work is SATISFACTORY;

May be substituted by irrevocable standby letters of credit, bank guarantees or surety bonds;

Returned upon final acceptance of the project.

RETENTION MONEY

Shall not exceed 15% of the total contract price

CONDITIONS:
Written request of the contractor;
Submission & acceptance of an irrevocable standby letter of credit, bank guarantee or surety
bond

Repaid by the contractor as deduction from progress payments.

ADVANCE PAYMENT

Resolution 08-2011:

Such approval is valid on work done up to the point where the cumulative increase in value of
work on the project which has not yet been duly fully approved does not exceed five percent
(5%) of the adjusted original contract price.

For a Change Order or Extra Work Order involving a cumulative amount exceeding five percent
(5%) of the original contract price, no work thereon may be commenced unless approved by the
HOPE or his duly authorized representative.

VARIATION ORDER

Resolution 08-2011:

Procuring entity’s Representative or Project Engineer may, subject to the availability of funds,
allow the immediate start of work under any Change Order or Extra Work Order:

In the event of an emergency where the prosecution of the work is urgent to avoid detriment to
public service, or damage to life and/or property; and/or

2. When time is of the essence;

VARIATION ORDER

CONTRACT IMPLEMENTATION
OF INFRASTRUCTURE PROJECTS

NOTICE TO PROCEED

When Issued:
The Procuring Entity shall issue the NTP together with a copy of the approved Contract to the
winning Bidder within 3 calendar days from the Contract’s Approval.

Effectivity Date of Contract:

Contract Effectivity Date shall be provided in the NTP, which shall not be later than 7 calendar
days from its issuance.
PUBLIC BIDDING

AWARD OF CONTRACT

Period of Action by HOPE:

Within a period NOT EXCEEDING 7 Calendar Days, HOPE shall act on the BAC
recommendation declaring LCRB.

Issuance of Notice of Award:

HOPE shall immediately issue Notice of Award upon approval of the BAC recommendation.

PUBLIC BIDDING

POST QUALIFICATION
Circular 03-2012

Inspection and/or testing of the product and after-sales and/or maintenance capabilities.

Ascertainment of the sufficiency of the bid security as to type, amount, form and wording, and
validity period.

Verification of the bid price and, whenever applicable, the required CLC or NFCC.

PUBLIC BIDDING

POST QUALIFICATION
Circular 03-2012

Verification of any registration, license, certificate, permit, clearance, and agreements submitted
by the bidder.

Verification and validation of the bidder’s stated competence and experience, as well as that of
its key personnel assigned to the project.

PUBLIC BIDDING

POST QUALIFICATION

To Validate, Verify and Ascertain whether LCB complies with and is responsive to all the
requirements and conditions specified in the Bidding Documents.

Period of Post Qualification: Process shall be completed within 7 Calendar Days

- May be extended by the LCE under EXCEPTIONAL cases but shall NOT exceed 30 Calendar
Days in the Aggregate.

PUBLIC BIDDING

BID EVALUATION AND RANKING

Ranking of Bids
Ranked in the ascending order of total calculated bid prices, as evaluated and corrected for
computational errors, discounts and other modifications, to identify the LCB.

Total calculated bid prices, as evaluated and corrected for computational errors, discounts and
other modifications, which exceed the ABC shall be disqualified.

PUBLIC BIDDING

BID EVALUATION AND RANKING

Determine LCB by evaluating the COMPLETENESS OF THE BID and ARITHMETICAL

COMPUTATIONS.

Evaluation of all bids rated “passed,” using a nondiscretionary pass/fail criteria

PUBLIC BIDDING

SUBMISSION AND RECEIPT OF BIDS

SECOND ENVELOPE

Financial Bid duly accomplished in the prescribed FORM, and any other information/ documents
specified in the PBDs.

PUBLIC BIDDING

PUBLIC BIDDING

PUBLIC BIDDING

ELIGIBILITY REQUIREMENTS
Single Largest Contract
At least 50% of ABC

Within a period of ten years

A contract shall be considered “similar” to the contract to be bid if it has the same major
categories of work.

PUBLIC BIDDING

SUBMISSION AND RECEIPT OF BIDS

FIRST ENVELOPE: TECHNICAL DOCS
Eligibility Requirements
Bid Security
Technical Specifications
Sworn Statement of Bidder:
- NOT Blacklisted;
- Docs are AUTHENTIC copies of the Original;
- Authorizing LGU to VERIFY;
- SIGNATORY is the Authorized Representative;
- Complying with DISCLOSURE Provision;
- Complying with BIDDER’s RESPONSIBILITIES;
- Complying with LABOR LAWS

PUBLIC BIDDING

ISSUANCE OF BIDDING DOCUMENTS

The BAC or its Secretariat shall promptly issue the bidding documents to the prospective bidders
from the time the IAEB is first advertised until immediately before the deadline for submission
of bids.

The BAC shall issue the Bidding Documents upon payment of the corresponding cost.

PUBLIC BIDDING

INVITATION TO APPLY FOR ELIGIBILITY AND TO BID

Procurement of Infra with an ABC of Five Million Pesos and below

1. Internet Posting
– Posted continuously in the website of the LGU concerned, if available, the website of the
LGU’s service provider, if any, and the PhilGEPS for seven (7) calendar days starting on date of
advertisement.
2. Posting in Conspicuous Place
- Posted at any conspicuous place reserved for this purpose in the premises of the LGU for seven
(7) calendar days, as certified by the head of the BAC Secretariat.

PUBLIC BIDDING

INFRASTRUCTURE PROJECTS

REPUBLIC ACT NO. 9184

EMERGENCY CASES
Options: To Undertake the Project

Through negotiated procurement;

By administration;

In high security risk areas, through the AFP

Negotiated Procurement

TWO FAILED BIDDINGS

Negotiations with:

Bona fide contractors licensed with the CIAP

Eligibility documents are on file with the procuring entity concerned or the Department of Public
Works and Highways (DPWH) Contractors’ Registry
Classified under the type of contract/project

Other contractors not previously deemed eligible may also apply for eligibility.

Negotiated Procurement

FOR INFRASTRUCTURE PROJECTS, the alternative mode is NEGOTIATED

PROCUREMENT.

ALTERNATIVE MODES

For STRUCTURAL DEFECTS AND FAILURES

- Permanent Structures: 15 years
- Semi-Permanent Structures: 5 years
- Other structures: 2 years
Covered by Warranty Security
- Cash or LC: 5% of TCP
- Bank Guarantee: 10% of TCP
- Surety Bond: 30% of TCP

WARRANTIES

Granted only when the affected activities fall within the critical path of the PERT/CPM network

Not granted when extension is due to:

Ordinary unfavorable weather conditions;
Inexcusable failure or negligence of contractor to provide the required equipment, supplies or
materials

EXTENSION OF CONTRACT TIME

Procuring Entity has authority to suspend work wholly or partly by written order due to
following:

Force Majeure or Fortuitous Event

Failure of contractor to:

a. correct bad conditions;
b. carry out valid order; or
c. perform any provisions of the contract

3. Adjustment of plans to suit field conditions

SUSPENSION OF WORK

Made once a month based on Statement of Work Accomplished

Paid net of:

Portion of advance payment to be recouped for the month;
Retention money;
Third party liabilities;
Uncorrected discovered defects in the works.

PROGRESS PAYMENTS

Cumulative positive variation beyond 10% - subject of another contract

In exceptional cases, variation order may be up to 20%, subject to guidelines to be determined by
GPPB

Sanction on designer, consultant or official responsible for detailed engineering design for failing
to consider variation order beyond 10%

VARIATION ORDER

PERFORMANCE SECURITY

PUBLIC BIDDING

Conditions for Award:

JVA, if Joint Venture;

Posting of Performance Security;
Signing of Contract; and
Approval by Higher Authority, if required.

Bidder shall post PERFORMANCE SECURITY and enter into contract with the Procuring
Entity within 10 Calendar Days

PUBLIC BIDDING

POST QUALIFICATION
Circular 03-2012

If bidder with the LCB or HRB fails to comply with the criteria for post-qualification, BAC shall
immediately notify the bidder in writing of its post-disqualification.

The notice shall clearly state all the grounds for the post-disqualification pursuant to the
requirements or conditions in the Bidding Documents that the bidder failed to comply with.

PUBLIC BIDDING

POST QUALIFICATION
Circular 03-2012

Verification of availability and commitment of equipment units that will be used by the bidder in
the contract.

Checking of the bidder’s performance in its ongoing government and private contracts.

Negative Slippage of at least 15%

Substandard or unsatisfactory performance

PUBLIC BIDDING

For Submission Three (3) Days from Notice of LCB:

Tax Clearance;
Latest Income and Business Tax Returns;
Certificate of PhilGEPS Registration; and
Other appropriate licenses and permits required by law and stated in the Bidding Documents

PUBLIC BIDDING

BID EVALUATION AND RANKING: SAME RULES AS THOSE FOR GOODS

The bid must be complete

Computational errors will be corrected
All bids shall be evaluated on equal footing
Bid prices in words, unit prices, and unit cost in the bill of quantities shall prevail in case of
discrepancy

PUBLIC BIDDING

SUBMISSION AND RECEIPT OF BIDS

SECOND ENVELOPE

Financial Bid duly accomplished in the prescribed FORM, and any other information/ documents
specified in the PBDs.

PUBLIC BIDDING

ELIGIBILITY REQUIREMENTS
Resolution 11-2012

The Owner’s Certificate of Final Acceptance; or the Constructors Performance Evaluation

Summary (CPES) Final Rating and/or the Certificate of Completion, must be satisfactory (in lieu
of Certificate of Acceptance).
ELIGIBILITY REQUIREMENTS
Resolution 11-2012
At least one (1) contract that is similar to the contract to be bid and at least 50% of the ABC.
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 fifty percent (50%) of
the Allowable Range of Contract Cost (ARCC) of their registration.

BID SECURITY

PUBLIC BIDDING

ELIGIBILITY REQUIREMENTS

Class A Documents

Legal Documents:
(1.) SEC/ DTI/ CDA;
(2.) Mayor’s Permit

Technical Documents:
(3.) On-Going and Completed Contracts;
(4.) Valid PCAB license and registration for type and cost of the contract to be bid;

Financial Documents:
(5.) Audited FS stamped “Received” by BIR; (6.) NFCC/ Credit Line Certificate

Class B Documents
(7.) JVA, if applicable

PUBLIC BIDDING

PRE-BID CONFERENCE

MANDATORY for procurement of Infra with an ABC of One Million Pesos and above

A pre-bid conference is held before eligibility check and must be conducted at least twelve (12)
calendar days before the deadline for the submission and receipt of bids. This time period is
mandatory and cannot be shortened.

It is also prudent that it be held not earlier than seven (7) calendar days after newspaper
advertisement or the last day of posting the IAEB.
PUBLIC BIDDING

INVITATION TO APPLY FOR ELIGIBILITY AND TO BID

Procurement of Infra with an ABC of More Than Five Million Pesos

Internet Posting
Posting in Conspicuous Place
Newspaper Advertisement – Advertised at least once in one (1) newspaper of general nationwide
circulation which has been regularly published for at least two (2) years before the date of issue
of the advertisement

PUBLIC BIDDING

EXTRA WORK ORDER – covers new work necessary for the completion, improvement or
protection of the project which was not included as items of work in the original contract

CHANGE ORDER – covers any increase / decrease in quantities of original work items in the
contract

VARIATION ORDER

Take-over of contracts

Emergency Cases

Two Failed Biddings

Adjacent or contiguous contract

When allowed:

Negotiated Procurement