General Rule: Public Bidding APP provides sufficient lead time for bidding Resort to Alternative Methods allowed

d Highly exceptional cases To promote economy and efficiency Justified by conditions specified in IRR Recommended by BAC Approved By HOPE

5 Alternative Methods of Procurement: Limited Source Bidding Direct Contracting Repeat Order Shopping Negotiated Procurement

DIRECT CONTRACTING

Applicability: Goods Conditions: Items of proprietary nature from proprietary source Critical components from a specific supplier to hold a contractor to guarantee its project performance Items sold by an exclusive manufacturer or dealer no other suppliers selling it at lower prices no suitable substitute can be obtained at more advantageous terms to the Government Deleted the word plant Resolution No. 11 - 2009

REPEAT ORDER

Applicability: Goods Conditions: Same or lower unit prices, provided that such prices are still the most advantageous to the GOP after price verification No splitting of contracts Availed of within 6 mos. from the contract effectivity date stated in the NTP arising from the original contract, except in cases duly approved by the GPPB Not to exceed 25% of the quantity of each item Original contract awarded through competitive bidding

1.

2. 3.

4. 5.

SHOPPING & SMALL VALUE

Applicability of Shopping [52.1(a) and (b)]: Goods Conditions [Shopping under 52.1(a)]: There is an unforeseen contingency requiring immediate purchase Amount does not exceed the threshold (PhP 50,000.00, Annex H, IRR of R.A. 9184) Conditions [Shopping under 52.1(b)]: Procurement of ordinary or regular office supplies and equipment not available in PS-DBM Amount does not exceed the threshold (PhP 50,000.00, Annex H, IRR of R.A. 9184)

1. 2.

1. 2.

SHOPPING & SMALL VALUE

Applicability of Small Value Procurement [53.9]: ALL Conditions: Procurement does not fall under Shopping [52] Amount does not exceed the threshold (PhP 50,000.00, Annex H, IRR of R.A. 9184)

1. 2.

SHOPPING & SMALL VALUE

Resolution No. 09 2009, dated 17 Dec. 2009

General Guidelines:

Decision to resort to shopping/small value procurement done in context of APP Splitting of contracts is strictly prohibited After approval, BAC may delegate execution to the appropriate bureau, committee or support unit.

SHOPPING & SMALL VALUE

Procedural Guidelines

SHOPPING & SMALL VALUE

Resolution No. 09 2009, dated 17 Dec. 2009

Procedural Guidelines:

RFQ should indicate the following: a. Specification; b. Quantity; c. ABC; d. Terms and conditions of the item to be procured; and e. Manner by which price quotation must be submitted (i.e. open or sealed quotations)

SHOPPING & SMALL VALUE

Procedural Guidelines

Information relating to examination, evaluation & comparison of price quotations shall be kept confidential & should not be disclosed to any other party except to those officially concerned until award Post RFQ for 7 cd in the website of PhilGEPS and procuring entity concerned, if available, and at any conspicuous places; Exceptions: When there is an unforeseen contingency requiring immediate purchase under Sec. 52.1(a) RFQs with ABCs equal to Php 50,000.00 and below.

SHOPPING & SMALL VALUE

Procedural Guidelines:

Post awards in the website of PhilGEPS and procuring entity, if available, and at any conspicuous place except those with ABCs equal to Php. 50,000.00 and below Procuring entity must validate whether it is entering into a contract with a technically, legally and financially capable supplier, contractor or consultant by requiring the submission of relevant documents or through other means.

NEGOTIATED PROCUREMENT
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Applicability: ALL Conditions: Two Failed Biddings Emergency Cases Take-Over of Contracts Adjacent or Contiguous Agency-to-Agency Procurement Agents Highly Technical Defense Cooperation Agreement Lease of Real Property or Venue Small Value NGO Participation Community Participation UN Agencies

NEGOTIATED PROCUREMENT
TWO FAILED BIDDINGS

Applicability: ALL Conditions: Two failed biddings Mandatory review of the following: Minimum technical specifications ABC, which may be adjusted up to 20% from last bidding Invite sufficient number to ensure competition Information communicated on an equal basis

1. 2.

NEGOTIATED PROCUREMENT
TWO FAILED BIDDINGS

Simultaneous negotiations Submission of best and final offer on a specified date Successful offer to be selected: Meet minimum technical specifications Does not exceed ABC Observers shall be invited in all stages

NEGOTIATED PROCUREMENT
EMERGENCY CASES

Applicability: ALL Conditions: 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 Negotiate with any supplier, contractor, or consultant with technical, legal, and financial capability

NEGOTIATED PROCUREMENT
TAKE OVER OF CONTRACTS

Applicability: ALL Conditions: Rescinded or terminated contract 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 Negotiate starting with the 2nd LCB or HRB at the bidders original bid price, then to the next if negotiation fails If negotiation fails, invite a short list of at least 3 to submit bids and negotiate starting with the LCB or HRB

NEGOTIATED PROCUREMENT
AGENCY TO AGENCY

Applicability: ALL Conditions: Cost-benefit analysis indicating A-to-A is more efficient and economical A-to-A does not exceed 25% of PEs total budget for each category (goods, infra, consulting) Servicing agency has mandate to undertake the project Servicing agency owns or has access to necessary tools required for the project Other requirements provided in Implementing Guidelines on Agency-to-Agency Arrangements (GPPB Resolution 18-2007)

1. 2. 3. 4.

NEGOTIATED PROCUREMENT
PROCUREMENT AGENTS

Applicability: ALL Condition: HOPE has determined that PE does not have procurement proficiency or capability to undertake a particular procurement Actions available: Request other GOP agencies to undertake such procurement for them Recruit and hire consultants or procurement agents to assist them directly and/or train their staff in the management of the procurement function

NEGOTIATED PROCUREMENT
COMMUNITY PARTICIPATION

Applicability: ALL Conditions: In the interest of project sustainability or to achieve certain specific social objectives PE to propose procedures, specifications, and contract packaging for GPPB approval

1. 2.

Other Terms and Conditions:

Most advantageous price for government should be obtained (Sec. 48.1) Splitting of contracts strictly prohibited (Sec. 54.1) Posting NOT necessary, except: Shopping [Sec. 52.1(b)] Except: PhP50,000 and below Small Value Procurement [Sec. 53.9] Except: PhP50,000 and below Two Failed Biddings [Sec. 53.1] NGO Participation [Sec. 53.11] Lease of Real Property [Sec. 53.10], if > PhP50,000

ALL awards should be posted, except Shopping and Small Value Procurement with ABC of PhP50,000 and below Bid security NOT necessary, except in Limited Source Bidding Performance and warranty securities necessary, except: Shopping [Sec. 52] Emergency Cases [Sec. 53.2] Small Value Procurement [Sec. 53.9] Lease of Real Property [Sec. 53.10] Procurement from UN agencies [Sec. 53.13]

BY ADMINISTRATION

Applicability: Infrastructure Projects Conditions: 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 IA owns or has access from other government agencies to necessary tools and construction equipment required for the project 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)

1.

2.

BY ADMINISTRATION

Increase in thresholds in the 2009 & 2010 GAA

1.

Any project costing < Php. 20,000,000.00 undertaken by administration or force account

may

be

2.

Project costing over 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 Secretarys favorable recommendation - more than Php. 50,000,000.00.

Comments, questions?