UNDERSTANDING

THE BASICS OF
PROCUREMENT
 Activity Title

UNDERSTANDING THE BASICS OF PROCUREMENT

3. Post Implementation Phase PROJ STRATEGY/ 1. Pre-Implementation Phase

BASELINE DATA
POST EVALUATION FIRST GATHERED
STAGE
PROJECT DESIGN
STAGE

FS/PROJECT PROPOSAL
STAGE
PROJECT OPERATION
STAGE

PROJECT APPRAISAL
STAGE
PROJECT COMPLETION
STAGE

PROJECT DETAILED ENG’G

IMPLEMENTATION DESIGN
STAGE

PROJECT START-UP PROJECT APPROVAL

STAGE

PROCUREMENT

2. Implementation Phase
 Activity Title
Default mode of the RA 9184 is
UNDERSTANDING THE BASICS OF PROCUREMENTcompetitive bidding, however to
promote economy and efficiency.
Alternative Method is provided.
BACKGROUND
▪ The Procurement process follow rules and regulations of RA 9184
GAA FY 2021, Section 17
Use of Government Funds
▪ Taking off on LPMCs scope/functions under Memorandum Circular
• Shall be utilized
2019-188 (Organization or Reconstitution of Sub-regional Project
in accordance with the
Monitoring Committees (PMCs)) to monitor and appropriations authorized for the
evaluate programs
purpose and comply with the applicable
and projects.
laws such as -
Purchase of goods, infrastructure
▪ LPMC has no participation in the procurement process
projects in accordance with the
provision of RA 9184 & its IRR &
▪ GPPB
LPMC will be provided with POW, specs/ drawings asGuidelines
well as
PPMP, APP as guide for monitoring

▪ The GAA provides the budget allocation for the project

 Activity Title
Default mode of the RA 9184 is
UNDERSTANDING THE BASICS OF PROCUREMENTcompetitive bidding, however to
promote economy and efficiency.
Alternative Method is provided.
BACKGROUND
▪ The Procurement process follow rules and regulations of RA 9184

▪ Taking off on LPMCs scope/functions under Memorandum Circular

2019-188 (Organization or Reconstitution of Sub-regional Project
Monitoring Committees (PMCs)) to monitor and evaluate programs
and projects.

▪ LPMC has no participation in the procurement process

▪ LPMC will be provided with POW, specs/ drawings as well as

PPMP, APP as guide for monitoring

▪ The GAA provides the budget allocation for the project

 UNDERSTANDING THE BASICS OF PROCUREMENT

OBJECTIVES
▪ To present the procurement process and milestones

▪ To present the Members of Bids & Awards Committee

▪ To explain the Failure of Bidding

▪ To understand the Reservation Clause (Section 41) of RA

9184

▪ Common Procurement Issues and Concerns

 Procurement Process
for Goods & Infrastructure
6 Projects
2 3 POST QUALIFICATION 4
5 8
ADVERTISEMENT/ SUBMISSION / RECEIPTTotal
/
ITB 1
Pre-procurement
PRE-BID Advertisement/ Pre-Bid Duration
POSTING OFCONFERENCE
Conference Posting of ITB BIDSConference
EVALUATION
CONTRACT OPENING OF BIDS
PREPARATION Min: 26 CDs
1 CD •
7 CDs Bidder must submit all1 CD Post-& SIGNING
• PhilGEPS • PRE-PROCUREMENT Qualification Requirement • Submission and receipt Max*: of 141 or
Discuss, clarify and explain
• LGU website theCONFERENCE within 5CDs from receipt of bids and opening of technical 156 CDs
requirement of the
• • Availability
Conspicuous bidding of
Places budget or
documents Notice of LCB. • Bidder must submit and financial proposal days
• Detailed evaluation of bids (pass/fail criteria)
• Newspaper•appropriations
of Virtual
National for
conduct the contract
of Pre
Submission Bid& • Opening
Verify, validate and ascertain
ofconsidering
Technical Performance
Opening Security
Circulation(included
(Once, in
but the
not approved all statements made
completeness
and • of Financial
Duration: 1 Day
ConferenceReceipt of Bids the bid, •arithmetical
Documents CD – 10 CDs
Duration:correction,
1Documents
mandatory)•GAA/NEP
Duration:for1advance
CD documents submitted (Legal, • There are cases that Bid 7
* 141 CDs for <50M
bid comparison and opening has been rescheduled
• •procurement)
Duration: Continuously for 712 CD before
Held at least Technical1 CDand Financial)
discrepancies on the bid price
& 156 CDs for >50M
• Confirm scope ofbut contract, • Duration: 2 CD to 12 CD; the next working day due to
CD bid opening, may gothe • Duration: 1 CD to 7CD APPROVAL OF
ABC and duration may exceed up to 45 CD but the BAC has no quorum or
beyond 12 CD up to 45 CD
other justifiable reason.
RESOLUTION/ ISSUE
• If in accordance with PPMP and with approved extension from
NOTICE OF AWARD
APP HoPE Approval of
• Completeness ofBid Contract Issuance
the bidding Post Resolution/ preparation of Notice
documents, plans Evaluation
and Qualification Issuance of and signing* ➢ Period: 1-15 CDs
specifications, BOQ and if in Notice of Award to Proceed
➢ Day 1 is after determination
accordance to standards
1- 10 CDs of the LCRB
• Availability of 1- 7 CDs or location 2-45 CDs
RROW 1- 15 CDs 1- 7 CD
and possession of property
• Procurement deadlines and
timeframe of each activity *20-30 CDs for higher level approval
• Duration: 1 CD
 UNDERSTANDING THE BASICS OF PROCUREMENT

Important Updates of RA 9184

Resolution No. 15-2020 dated July 28, 2020 (Approval of the 6th Edition
of the Philippine Bidding Documents or the Simplified Bidding
Documents)

The Simplified Philippine Bidding Documents (PBDs) for the Procurement

Simplified By/To:
have been reduced significantly, as follows:
➢ Combining
GOODS – FROM 112 TO 40 PAGES repetitive clause
➢ Reduce risk of
inconsistences on
INFRA – FROM 113 TO 35 PAGES
latest issuances
 UNDERSTANDING THE BASICS OF PROCUREMENT

MEMBERS OF BAC (LGU LEVEL) – Section 11 (IRR)

Prohibition:
MEMBERS 5-7 Members (Permanent Position)
➢ HoPE or approving authority and
the officials who approves
Such as but not limited
procurement to….
transaction isChairperson*
1. Office of the Administrator
prohibited to be BAC member Vice-Chairperson LCE
Offices ➢ COAOffice
2. Budget Circular No. 2003-004
3. Legal Office the Chief Accountant and
prohibits
4. Engineering Office * 3RD Ranking permanent
personnel of accounting units
5. General Services Office Official with one year fixed
➢ DOF DO
6. End-user unit
042-2019 prohibits
termthe
Treasurer & Assistant as member
of BAC and TWG
 UNDERSTANDING THE BASICS OF PROCUREMENT

MEMBERS OF BAC (LGU LEVEL) – Section 11 (IRR)

PURPOSE
OBSERVERS TRANSPARENCY

1. COA Representative
2. Private Group Representative*
3. NGO/CSO Representative*

*ELIGIBILITY *FUNCTION

➢ No interest in the bidding ➢ No voting power

➢ Registered with SEC ➢ Observe the bidding process
➢ Related sector for bidding ➢ Submit report to HoPE
 UNDERSTANDING THE BASICS OF PROCUREMENT

FAILURE OF BIDDING – Section 35 (IRR)

Conditions No bids received

▪ Two (2) failed biddings
No qualified bid ▪ Danger to life & property
during state of calamity
Refusal to accept the award ▪ Take over of contracts
▪ Forfeiture of Bid Security (terminated)
(if Cash, Bank Guarantee ▪ Adjacent to on-going infra
or Surety Bond) project that follows the
▪ AutomaticSolution
disqualification
Re-advertise & re-bid
right bidding process
for 2 years to any
procuring entity upon Observe 1st bidding process
receipt of Blacklisting
Order (if Bid Securing Negotiated procurement Section 53
Declaration)
 UNDERSTANDING THE BASICS OF PROCUREMENT

RESERVATION CLAUSE – Section 41

To reject any and all bids

Where
Reserves giving emphasis to this
HoPE reservation
the right clause because
To declare a failureit of bidding
can be subjected to abuse.
Not to award the contract
The HoPE may invoked this
Situations clause if he is not in favor with
winning bidder even without
SABWATAN justifiable
Prima facie reason.
evidence of collusion POSSIBILITIES

O+E C+B B+B+B B+T

DI SUMUNOD Failure to follow the bidding process
With Justifiable reasons or grounds
DEHADO Not benefiting the government
Matibay na dahilan
 UNDERSTANDING THE BASICS OF PROCUREMENT

Common Issues & Concerns in Procurement

ISSUES SOLUTION NOTES

• Secretariat to go areas with

Difficulty in posting ITB & Bid
good internet connections.
1 Documents to PhilGEPS due to
• Posting early in the morning
poor internet connection
where user is minimal

Did not post the ITB to • Post to PhilGEPS and extend the Posting to PhilGEPS is
bid submission/opening thru bid mandatory.
PhilGEPS on the scheduled
2 date and procurement process
bulletin within the required minimum It is Day 1 of the whole
calendar days from posting to bid procurement process.
already started. submission/opening.

Issuance should be at
Changes in the bid documents Need to issue a Bid Bulletin
3 least 7 CD before bid
submission/ opening
 UNDERSTANDING THE BASICS OF PROCUREMENT

Common Issues & Concerns in Procurement

ISSUES SOLUTION NOTES

Post-qualification
Post-qualification process • Request for extension to HoPE, process should be
4 exceeds 12 CDs but should not exceed 45 CDs completed within 12 CDs
for Goods and Infrastructure. from determination of
LCB.

Splitting contract package to Can be addressed during the This practice is

5 accommodate contractor with pre-procurement stage prohibited under
political affiliation Section 54.1

Bidding docs not in accordance Can be clarified during the

6 with the standards pre-bid conference
 UNDERSTANDING THE BASICS OF PROCUREMENT

Common Issues & Concerns in Procurement

ISSUES SOLUTION NOTES

• Inform BAC/HoPE
• Section 41 may be
Bidding with unresolved RROW • May commence but no award
7 of contract shall be made until
applied.
• Section 17.6
RROW has been resolved.

Not consistent with the • May be addressed during pre-

8 Procurement Plan (PPMP, APP) procurement conference
• Need to be updated or revised

Unable to download bid docs Inform/contact the Secretariat

9 from the website

Incomplete detailed drawings/ Technical person to clarify this

10 specs during pre-bid conference
 UNDERSTANDING THE BASICS OF PROCUREMENT

Common Issues & Concerns in Procurement

ISSUES SOLUTION NOTES

Non-availability of Bid docs and • Can be downloaded from

11 personnel assign to distribute Philgeps
them • Check with the Secretariat

• Attend pre-bid conference and

Contractor’s inadequate clarify the rules and regulation,
knowledge in procurement rules • study/ get support from the RA 9184 & IRR can
12 & regulations knowledgeable persons re the RA be accessed online
9184 and its IRR

Invitation letter should be CSO has no voting

Inadequate participation of power but can submit
13 provide at least 5 days
CSOs a written report to
before the activity HOPE
 UNDERSTANDING THE BASICS OF PROCUREMENT

Common Issues & Concerns in Procurement

ISSUES SOLUTION NOTES

• Check docs during evaluation

Lending PCAB License This practice is
14 stage
prohibited
• May be reported to HoPE

• The BAC and TWG member

Contract awarded to non-
15 responsive Bidder
should be sanctioned
• Report to Bantay Korupsyon
 UNDERSTANDING THE BASICS OF PROCUREMENT

Common Issues & Concerns in Procurement

Licensed Contractors by Category - FY2018

Total: 10,909

3817
Gen. Building & Eng'g
Total: 8,455
Total Construction Total Value Average Value

2267
173,193 P476B P2.75M
1608
1392
1221

18 399 187

AAAA (1B) AAA (180M) AA (90M) A (30M) B (10M) C (6M) D (2M) TRADE/E
(100K)

Source: PCAB Data FY2018 Source: PSA Data FY2018

UNDERSTANDING THE BASICS OF PROCUREMENT

THANK YOU