Procurement Paradigm Shift (Strategic

I Procurement)

II GPPB Updates

Simplified PBDs for Goods and Infrastructure

IIIII Projects

IV Contract Implementation

V Framework Agreement
 Strategic Public
Procurement
Management

2/23/2023 2
PHILIPPINE PROCUREMENT
Philippine
PARADIGM Procurement Paradigm
HOPE • Review studies HOPE
• Post/Advertise
• Consolidate into opportunity
Budget APP BAC
• Open and
Officer Assess • Decide Selection End User
evaluate bids
procurement TWG
• Post-qualify
BAC method • Award and enter
• Approve APP BAC Sec
into contract
BAC Sec
• Determine
Procurement readiness
Planning and
Management Unit

End User Procurement Planning and Contract Management Unit End User
Management Unit

Identify • Cost-benefit • Oversee Implement

analysis implementation
• Feasibility study • Inspect and
• Market study accept deliveries
• PPMP

NEEDS SATISFACTION
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and 3
distribution without the
author’s approval is prohibited.
Delays and Failures of Bidding

*Primary cause of delays and failure of bidding based on Agency Procurement Compliance
and Performance Indicators (APCPI) Confirmation Result of Participating Agencies.

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
Challenges in Procurement

2 ASSESS PROCURE 3
50% of Review feasibility/ market studies
Post/Advertise opportunity
Consolidate into Annual
Failure of Procurement Plan (APP)
Open and evaluate bids
bidding is Post-qualify
Decide procurement method
Award and enter into contract
attributed to Approve APP
POOR Determine readiness
PLANNING
1 IDENTIFY IMPLEMENT 4
Cost-benefit analysis Oversee implementation
Inspect and accept deliveries
Feasibility study
Release payment
Market study

PPMP

NEEDS SATISFACTION
This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
Effects in Procurement

Failure of Bidding Delay in Procurement Ineffective Procurement

Failure of
Bidding

Delay in
Procurement

This learning module was developed by the Government Procurement Policy Board – Technical Support Office, and any form of reproduction and distribution
without the author’s approval is prohibited.
SHIFT ON PROCUREMENT FOCUS

Procurement Focus / Effort

‘To be’
(Value for Money)

‘As is’ Effort

(Traditional)

Procurement Procurement Contract

Planning Process Management

This learning module was developed by the Government

Procurement Policy Board – Technical Support Office, and any
form of reproduction and distribution without the author’s approval
 STRATEGIC PROCUREMENT
MANAGEMENT

Compliance Vs. Management

Focuses on mere Focuses on strategic

compliance to rules procurement within the
bounds of rules
Follows a step by step Utilizes available data in
written guidance decision/policy making
Adapts to changing
procurement environment

Established relevant monitoring &

evaluation mechanism
 STREAMLINING GOVERNMENT
PROCUREMENT

Early Procurement
Activities
Streamlined
Policies &
Processes
= Guidelines on the Use of
Framework Agreement
Use of Videoconferencing,
webcasting & similar
technology

Use of Digital Signature

Calibrated actions to delays

in contract implementation

Direct purchase of POL &

airline tickets
9
 PRIMARY CAUSES OF DELAYS AND
FAILURE OF BIDDING
(Based on APCPI Confirmation Result of Participating Agencies)
Lack of Manpower
Inadequate 6%
Training/Varying
Interpretation of Rules
3%

Problems on
Technical
Specifications/
TOR - 17%

Low Number of Bidders Planning End users' late

22% 50%
submission of
the PR- 22%

Late Release of SARO Poor Cost

5% Estimates - 11%

Approval
Process/Review Process
14%
 INCOMPETENCE OF
POOR
POOR PEACE AND ORDER
PROCUREMENT
PERSONNEL
8%
LEADERSHIP
ISSUES
15%
PLANNING
20%
SITUATION
1%
PLANNING
LOW NUMBER OF
VARYING
BIDDERS
INTERPRETATION NUMEROUS
11%
OF THE RULES
13%
MOTIONS FOR
RECONSIDERATION
PROPOSED INTERVENTIONS
/ PROTESTS/ CIVIL
CASES AND
INJUNCTIONS
2%
1. Timely Preparation of PPMP and
DELAYED RELEASE
OF SARO PROFESSIONALI- APP and limit submission of
1% ZATION OF THE
BAC, AND ITS APPROVAL / supplemental PPMPs / APP
SECRETARIAT REVIEW PROCESS
9% 2. Procurement Short of Award
3. Use of Framework Agreement
100% 0.48%
Approval of contracts without conduct of technical studies
4. Multi-Year Contract
90% 3.81% 5. Appropriate use of Alternative
80%
Late submission of PPMP by end user Methods of Procurement
70% 2.86% Frequent revision of APP / Too many supplemental PPMPs 6. Conduct of APCPI and PMR
7. Capacity Building Activity on
60% 1.90% Poor assessment of projects before it even started
preparing procurement strategy
50% 1.43% Realignment cost estimates and technical
40% 2.38% specifications.
Late submission of PRs
8. Develop Procurement Strategy
30% 2.38% Poor crafted technical specs 9. Conduct market analysis
20%
2.38% Delayed submission of APP 10. Expand and Strengthen Pre-
10% Construction Activities (FS,
2.38% Poor cost estimates
DED)
0%
INCOMPETENCE OF
PEACE AND ORDER
LOW NUMBER
OF BIDDERS
PROCUREMENT
LEADERSHIP SITUATION
PERSONNEL POOR PLANNING
ISSUES 1%
8% 20%
15%

LOW
VARYING
NUMBER
INTERPRETATION OF BIDDERS
OF THE RULES PROPOSED INTERVENTIONS
13% 11% NUMEROUS
MOTIONS FOR
RECONSIDERATION 1. Rebuild Trust - Level the playing field and
/ PROTESTS/ CIVIL
CASES AND
capacitate the market operators.
DELAYED RELEASE
INJUNCTIONS
OF SARO
PROFESSIONALI- 2%
1%
ZATION OF THE
BAC, AND ITS
APPROVAL /
REVIEW PROCESS
2. Engage the market by conducting market sounding
SECRETARIAT 9% and consultation

100% 3. Use electronic or online platform/system in the

conduct of procurement activities like webcasting or
90% 1.91% videoconferencing and submission of procurement
Industry Capacity / Non-availability of goods
documents
80%
1.91% Difficulty in securing Mayor’s Permit and SEC
70% 4. Establish a good database of suppliers and maintain
Registration
0.48% good relationship.
60%
Delay in securing contract requirement
50% 1.91%
5. Allowing alternative documentary requirements
40% Strict government / legal documents such as recently expired mayor’s permit and
1.91% unnotarized OSS. and BSD.
30%
Highly technical requirements
20% 6. Use PhilGEPS as repository of “Class A”
2.87% Absence of bidders Documents, and the submission of the Certificate of
10%
(i.e. because of non-refundable PBD fees) “Class A” document shall be used for Eligibility
0% Checking.
 PROFESSIONALIZATIO
INCOMPETENCE OF
PROCUREMENT
PEACE AND ORDER
SITUATION
N OF THE BAC, AND ITS
LEADERSHIP ISSUES POOR PLANNING

SECRETARIAT
PERSONNEL
15% 1%
8% 20%

NUMEROUS
LOW NUMBER OF MOTIONS FOR
VARYING
BIDDERS RECONSIDERATION
INTERPRETATION
11% / PROTESTS/ CIVIL
OF THE RULES
CASES AND
13%
INJUNCTIONS
2%
PROFESSIO-
NALIZATION PROPOSED INTERVENTIONS
DELAYED RELEASE OF THE BAC,
APPROVAL /
OF SARO
1%
AND ITS REVIEW PROCESS
9%
SECRETARIA 1. Capacity Development -
T
professionalize procurement
practitioners in government
100% 2. Continuing Procurement Education
1.90%
90% No dedicated office for the BAC 3. Creation of a dedicated and
2.86% Secretariat
80% Low salary of highly technical staffs
permanent BAC Secretariat and
70% Procurement Management Office -
3.33%
60%
Job orders / contractual BAC Secretariat increase plantilla positions for the
1.43% / Fast Turn over of BAC
BAC Secretariat.
50% Lack of Accountability
40%
2.86% 4. Strict Enforcement of “Jury Duty”
Multitasking / Procurement is not 5. Introduce electronic procurement
30% 3.81% priority
20% Lack of skilled manpower
replacing routine and time
consuming human labor, e.g.,
10% 3.81%
Inadequate manpower eShopping; eReverse Auction.
0%
 LEADERSHIP
ISSUES
LEADERSHIP
15%
INCOMPETENCE OF
PROCUREMENT
POOR PLANNING
20%
PEACE AND ORDER
SITUATION
1%
ISSUES
PERSONNEL
8%

LOW NUMBER OF
VARYING
BIDDERS
INTERPRETATION
11%
OF THE RULES NUMEROUS
13% MOTIONS FOR
PROFESSIONALI-
ZATION OF THE
BAC, AND ITS
RECONSIDERATION
/ PROTESTS/ CIVIL
PROPOSED INTERVENTIONS
CASES AND
SECRETARIAT
INJUNCTIONS
DELAYED RELEASE 2%
OF SARO
1% APPROVAL /
REVIEW PROCESS
1. Issuance of a “Walkthrough on the
9% Functions of HOPE”.
2. HOPE should be empowered and
100%
Delegation of Authority
trained in procurement.
1.88%
90% 3. Strict Enforcement of “Jury Duty”
80% 1.88% Transition / Change of Administration among BAC, Secretariat and TWG
70% 1.88%
members.
Very strict implementation of rules
60% 4. BAC and Support Unit to provide
50%
Complete Staff Work to HOPE to
3.75% Non-enforcement of Jury Duty
build confidence to
40%
Bureaucracy / Excessively complicated recommendations.
30% 1.88%
administrative procedure 5. Limit unforeseen projects to a certain
0.94%
20% Approval / Disapproval Discretion of number.
HOPE
10% 2.81%
Unforeseen projects of the HOPE
0%
 INCOMPETENCE OF
INCOMPETENCE
OF
PROCUREMENT LEADERSHIP ISSUES POOR PLANNING
PEACE AND ORDER
SITUATION
PROCUREMENT
1%

PERSONNEL
15% 20%
PERSONNEL
8%

NUMEROUS MOTIONS
LOW NUMBER OF
VARYING FOR RECONSIDERATION
BIDDERS
INTERPRETATION / PROTESTS/ CIVIL CASES
11%
OF THE RULES AND INJUNCTIONS
13% 2%

PROPOSED INTERVENTIONS
PROFESSIONALI-ZATION
DELAYED RELEASE OF OF THE BAC, AND ITS APPROVAL / REVIEW
SARO SECRETARIAT PROCESS
1%
9%
1. Review the qualifications of BAC
members / up to Division Chief
level
100%
2. Encourage designation of alternate
Not following Timelines
90% members
2.67%
80%
Poor monitoring
3. Adopt a professionalization
70% program for procurement personnel
60% 1.33% Inconsistent decision rendered by the BAC 4. Identify where procurement
50%
encounters delay - create committee
0.44%
0.44% Non-familiarity with the goods being to address the problem
40%
procured
5. Re-issuance of FAQs on
30%
1.78% Low level of confidence of BAC Procurement (GPPB-TSO is
20% finalizing this)
10% 1.33% Splitting of contracts
0%
Covered Topics (UPDATES):

I. GPPB Resolution No. 4-2021, dtd. March 4, 2021

II. GPPB Resolution No. 15-2021, dtd. Oct. 14, 2021
III. GPPB Resolution No. 5, s. 2022, dtd. June 23, 2022
IV. Guidelines on Renewal of Regular & Recurring activities
V. Guidelines on Procurement Agent
VI. GPPB Digitalization Efforts
Additional Transparency Requirements of
Post-award Information of Procurement Projects
Posting of Procurement Documents

Limited Source
for projects with ABC above ₱50,000.00)
Bidding

GPPB Resolution No. 04-2021, March 4, 2021

POSTING IN NEWSPAPERS

For ABC of Php 50,000,000 and above

(Executive Department)

Post-award information shall also

be published
once in a newspaper of general
circulation
GPPB Resolution No. 04-2021, pursuant to Sec 4 of AO No. 34
Mandatory Submission of PhilGEPs Platinum Certificate
With Annex A (GPPB Resolution No. 15 - 2021, dtd. Oct. 14-2021)
Sec 8.5.2 2016 IRR GPPB Circular 07-2017 GPPB Resolution 15-2021

PhilGEPS Deferred / Suspended Lifting of Suspension

Certificate of the Mandatory of the Mandatory
Registration Submission of Submission of
(PLATINUM MEMBERSHIP) Platinum Certificate Platinum Certificate

Annex A Options:
1. Platinum Mandatory Compliance
1. Mayor’s Permit Certificate in lieu with Sec. 8.5.2 of the
of Class A Docs; 2016 IRR of R.A. No. 9184
2. Registration
2. Class A Docs in
Certificate
lieu of Certificate,
3. Tax Clearance if unable to obtain
4. AFS the same; OR
5. PCAB License 3. Combination
thereof
 Guidelines on Online Subscription
GPPB Resolution No. 05, s. 2022 dated 23 June 2022

Applicable when no local provider is available

Negotiated Procurement – Direct Retail

Purchase under Section 53.14 of the 2016 revised
IRR of RA No. 9184

Max ABC amounting to Php 1 Million

Use of direct electronic payment through a

credit card subject to the issuance of a
certification by the HoPE
 Guidelines on Online Subscription
GPPB Resolution No. 05, s. 2022 dated 23 June 2022

Coverage:
electronic publications, reference materials, and
journals
computer software and applications such as video
conferencing applications, computer-aided design and
drafting applications, office productivity tools, and
system protection software
web-based services such as news and social media
monitoring tools
off-the-shelf information systems, except internet and
cloud computing services
 Guidelines on Renewal of Regular and
Recurring Services
(not yet effective)

Applicable to existing contracts for general support

services that are regularly procured, except:
Lease-purchase Agreements
Water and electricity services
Radio-Frequency Identification subscriptions

Requires the conduct of a Cost-Benefit Analysis

(renewal vs new procurement) and performance
evaluation of the service provider

May be undertaken through Early Procurement Activity

 Guidelines on Renewal of Regular and
Recurring Services
(not yet effective)

Renewal contracts not more than 1 year, while

total contracts shall not exceed 3 years

Renewal of contracts may have changes in the

components

Extension of existing contracts pending

renewal or bidding
Results from GPPB-TSO Studies
Guidelines on
Procurement Agent
(not yet effective)

80.5% 19.4%

Do not engage with a Procurement Agent Engaged with either the DPWH, PS, or PITC as
because their BAC are capable and proficient Procurement Agents with high transfers of
in undertaking their own procurement funds

Source: GPPB-TSO study with 252 Participating PEs

Results from GPPB-TSO Studies
Guidelines on
Procurement Agent
(not yet effective)

Delay in their procurement

22.4% was due to the volume of

projects handled by the DPWH,
PS, and PITC

Transferred funds to the

19.4%
65.3% Procurement Agents

61.2% Covered bidding until delivery

Engaged with either the DPWH, PS, or PITC as

Procurement Agents a Procurement Agent
with high transfers of funds

Source: GPPB-TSO study with 252 Participating PEs

FY 2019 - 2021 PS Report

Guidelines on Procurement Agent

(not yet effective)

Source: Procurement Service Report on FY 2019 - 2021 Sales

 Guidelines on
Procurement Agent
(not yet effective)

What is a Procurement Agent?

APE undertakes BAC function for another PE

When may beundertaken?

PE lacks sufficient qualified personnel to constitute its own BAC
existing BAC lacks the proficiency and expertise to undertake a
particular procurement project

What may beprocured?

nCSEs covering public bidding modality except if the PE
lacks sufficient qualified personnel to constitute its own
BAC, it may include projects to be undertaken through
Alternative Methods of Procurement
 Guidelines on
Procurement Agent
(not yet effective)

Who may serve as a Procurement Agent?

A PE with a track record of having awarded a minimum of 3 contracts,
each contract costing at least fifty (50%) of the project at hand and
completed within the relevant period identified by the PE depending
on its project requirements
Said contracts were evaluated by the PE to be of the same nature and
complexity as the project at hand

How to engage a Procurement Agent?

Through a Memorandum of Agreement (MOA) between
the PE and the Procurement Agent:
Project basis
No transfer of funds
No end-to-end
Reasonable service fee
Not later than 3rd Quarter, except for EPA
 SIMPLIFIED PHILIPPINE
BIDDING DOCUMENTS (PBDS)
FOR GOODS AND
INFRASTRUCTURE PROJECTS
 Contents of the Simplified PBDs for Goods and
I Infrastructure Projects

II Preparation of Simplified PBDs for Goods and

Infrastructure Projects
Philippine Bidding Documents and its Purpose

PE may customize the PBDs:

What are Philippine Bidding Documents?
To suit the PE’s specific
Philippine Bidding documents (PBDs) are documents issued by the needs, particularly for
Procuring Entity to provide the prospective bidders all the necessary specialized procurement,
information that they need to prepare their bids. pursuant to Section 6.2 of the
2016 revised IRR of RA No.
PBDs clearly and adequately define the following: 9184, subject to the approval
of the GPPB;
Scope of work, ABC, Minimum legal, technical Documents and other
duration, outputs of and financial requirements requirements that bidder The PE shall specify in the
the contract to be eligible to bid. must include in his bid. PBDs the requirements,
criteria, and other conditions
of the bidding procedures and
Process and rules for: submission and receipt of of the ensuing contract as
Terms and conditions of
bids, evaluation of bids, post-qualification, and award applicable to each component
contract.
of contract.
of the Procurement Project in
case of mixed procurements.

36
GPPB Resolution No. 15-2020

GPPB Resolution No. 15-2020,

dated 28 July 2020
• Approving the Adoption of the 6th
Edition of the PBDs and Related
Documents
• Combined repetitive clauses
• Refined provisions for consistency
Effectivity of the 6th Edition of PBDs :
!!! October 6, 2020

37
GPPB Resolution No. 16-2020

• Published and took effect on 26 September

2020
• Approved the Guidelines on the
Preparation of the Simplified PBDs for
Goods and Infrastructure Projects and
Submission of Required Forms
• Approved the use of the PBD Builder in the
GPPB Online Portal for the online
preparation of PBDs for Goods and
Infrastructure Projects

38
Reasons for the PBDs Simplification

Discrepancies Confusion in Varying Language used

in the rules the use of formats of the does not match
PBDs and the
bidding forms
Bidding Forms

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without the author’s approval is prohibited.
Strategy for PBDs Simplification

Delete Combined Included

clauses that repetitive deleted
have legal clauses portions in the
bases GPM
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without the author’s approval is prohibited.
Strategy for PBDs Simplification

Separated Separated Updated and

Bidding Forms section on refined
from the PBDs Foreign-Assisted provisions in
Projects PBDs
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without the author’s approval is prohibited.
6th Edition Philippine Bidding Documents

WHY ONLY GOODS AND CIVIL WORKS?

PERCENTAGE OF POSTED BID NOTICES FOR PUBLIC BIDDING

(BASED ON PHILGEPS DATA AS OF 30 JUNE 2020)

Procurement Project 2016 2017 2018 2019

Goods 39.00% 48.72% 38.43% 40.79%

Infrastructure Projects 59.83% 49.57% 59.32% 57.55%

Consulting Services 1.17% 1.71% 2.25% 1.66%

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without the author’s approval is prohibited.
 Contents of the Simplified
Philippine Bidding Documents
Simplified Edition of PBDs for Goods

112
pages for the 5th edition of PBDs
for the Procurement of Goods
40
pages for the 6th edition of PBDs
for the Procurement of Goods
Simplified Edition of PBDs for Infrastructure Projects

114
pages for the 5th edition of PBDs for
the Procurement of Infrastructure
Projects
36
pages for the 6th edition of PBDs
for the Procurement of
Infrastructure PRojects

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without the author’s approval is prohibited.
New Features of the 6th Edition PBDs

NUMBER OF SECTIONS, CLAUSES & PAGES

Number of Number of Number of

Procurement Project
Sections Clauses Pages

PBD Edition 5th 6th 5th 6th 5th 6th

Goods 9 8 65 27 112 42

Infrastructure Projects 10 9 85 37 113 36

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without the author’s approval is prohibited.
New Features of the 6th Edition PBDs

NEW SECTIONS IN THE PBDS

1 Glossary of Acronyms,
Terms, and Abbreviations

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without the author’s approval is prohibited.
New Features of the 6th Edition PBDs
NEW SECTIONS IN THE PBDS

Checklist of Technical
2
and Financial Documents

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without the author’s approval is prohibited.
Contents of the 6th Edition PBDs

GPPB Resolution No. 16-2020

ABC Invitation to Bid Scope of Bid

Once issued by the
Documents
GPPB, the use of PBDs
Criteria for Bid Evaluation shall be mandatory
comprising the
eligibility Criteria
bid
upon all PEs.
Time /Place for
Technical
Procurement Delivery Date
Specifications
Activities

49
Contents of the 6th Edition PBDs

GOODS INFRASTRUCTURE PROJECTS

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without the author’s approval is prohibited.
Contents of the 6th Edition PBDs I. INVITATION TO BID

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without the author’s approval is prohibited.
Contents of the 6th Edition PBDs I. INVITATION TO BID

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without the author’s approval is prohibited.
Contents of the 6th Edition PBDs I. INVITATION TO BID

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without the author’s approval is prohibited.
Contents of the 6th Edition PBDs II. INSTRUCTIONS TO BIDDERS

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without the author’s approval is prohibited.
Contents of the 6th Edition PBDs II. INSTRUCTIONS TO BIDDERS

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without the author’s approval is prohibited.
Contents of the 6th Edition PBDs III. BID DATA SHEET

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without the author’s approval is prohibited.
Contents of the 6th Edition PBDs IV. GENERAL CONDITIONS
OF THE CONTRACT

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without the author’s approval is prohibited.
Contents of the 6th Edition PBDs IV. GENERAL CONDITIONS
OF THE CONTRACT

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without the author’s approval is prohibited.
Contents of the 6th Edition PBDs V. SPECIAL CONDITIONS
OF THE CONTRACT

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without the author’s approval is prohibited.
Salient Changes in the PBDs Contents

INVITATION TO BID (IB)

bid submission through (i) manual method by going to the physical office,
1
(ii) electronic or online method via the internet, or (iii) both methods.

2 use of webcasting and video conferencing for BAC proceedings.

use of a back-up data or cloud storage for large files uploaded for online
3
bid submissions.
internet links are provided for downloading of the bidding documents and
4
online bid submission.

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without the author’s approval is prohibited.
Salient Changes in the PBDs Contents

INSTRUCTION TO BIDDERS (ITB)

Funding information is now distinguished with respect to Early

1
Procurement Activities. [ITB Clause 2]
There is one General Statement stating that the 2016 revised IRR of RA No.
2 9184 and its associated issuances shall be the primary source for the Bidding
Requirements. [ITB Clause 3]
The PBDs for Goods now clarifies on firms having foreign ownership that would
3
like to participate in the public bidding of goods. [ITB Clause 5.2]
It included submission of eligibility documents to the implementing or end-user
4
unit if subcontracting is allowed during contract implementation. [ITB Clause 7]
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without the author’s approval is prohibited.
Salient Changes in the PBDs Contents

INSTRUCTION TO BIDDERS (ITB)

Note that only the translated documents shall be authenticated through an

4
Apostille pursuant to GPPB Resolution No. 13-2019. [ITB Clause 10.3]

Paraphrased the bid and payment currencies PBDs to include a qualification that
5 the foreign denominations shall be accepted or tradeable by the Bangko
Sentral ng Pilipinas. [ITB Clause 13 Goods / ITB Clause 14 Infra]

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Salient Changes in the PBDs Contents

INSTRUCTION TO BIDDERS (ITB)

Bidders are only required to submit only one (1) copy of the technical
6
and financial bid components

7
If PE allows online or electronic bid submission, the Bid shall be digitally
signed.

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without the author’s approval is prohibited.
Salient Changes in the PBDs Contents

GENERAL CONDITIONS OF CONTRACT (GCC)

There is one General Statement under the Scope of Contract which also
1 provides that the 2016 IRR of RA No. 9184 is the primary legal source for
the terms and conditions of contract. [GCC Clause 1]

Advance Payment and Terms of Payment have also been clarified in the
2
PBDs for Goods. [GCC Clause 2]

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without the author’s approval is prohibited.
Salient Changes in the PBDs Contents

PBDs FOR GOODS UNDER A FRAMEWORK AGREEMENT

GPPB Resolution No. 27-2019 on the Guidelines on Framework

1 Agreement only showed Framework Agreement List, Technical
Specifications, and the Framework Agreement itself. With these new
PBDs, Procuring Entities can just simply select the clauses applicable to
the Framework Agreement.

2 Framework Agreement Clauses in the new PBDs have instructions or

excerpts from The Guidelines on the Use of Framework Agreement.

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 Preparation of the Simplified
Philippine Bidding Documents
Preparation of the PBDs

GPPB RESOLUTION NO. 16-2020

❑ Published and took effect on 26 September 2020

❑ Approved the Guidelines on the:

1. Preparation of the Simplified PBDs for Goods and

Infrastructure Projects; and
2. Submission of Required Forms for all Procurement
Projects.

GPPB CIRCULAR NO. 4-2020

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Preparation of the PBDs

RA 9184 and its 2016 revised IRR, including PE may customize the PBDs:
the GPMs and associated issuances shall
apply in the use and implementation of the To suit the PE’s specific needs, particularly for
PBDs. specialized procurement, subject to the approval of
the GPPB; [Sec. 6.2 IRR]

PEs are mandated to use the latest The PE shall specify in the PBDs the requirements,
approved PBDs and the standard forms to criteria, and other conditions of the bidding
be submitted by the Bidders under Sections procedures and of the ensuing contract as applicable
17.1 and 23 of the 2016 revised IRR. to each component of the Procurement Project in
case of mixed procurements. [Sec. 17.2 IRR]

PEs shall not : (i) amend the required documents/info in Sec. 17 and 23 of the 2016 IRR of RA No. 9184
on the form and contents of the PBDs and the eligibility requirements, or (ii) require the bidders to
submit additional eligibility documents other than what are required under the said rules.

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Preparation of the PBDs

FOREIGN ASSISTED PROJECTS

(ITEM 7.0 OF THE CIRCULAR) PEs shall utilize PBDs in these instances:

The Development Partner has not indicated

Unless a Treaty or International or in the loan agreement that its specific rules
and the PBDs shall be used for its project
Executive Agreement expressly states
[Sec. 4.3 IRR]; or
the use of another set of bidding
documents, the PEs shall likewise utilize Both parties have acceded through the grant
the PBDs and the Required Forms for agreement that RA No. 9184 and its 2016
their foreign-assisted projects. [Section revised IRR, including the PBDs would be
4.3 IRR] used for the project. [Sec. 4.4(a) IRR]

A careful study on the FAP-specific requirements of the Development Partners must be

undertaken by the PEs to align with their procurement guidelines, as necessary.

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SIXTH EDITION OF THE
Preparation of the PBDs PHILIPPINE BIDDING
DOCUMENTS
THE PBDs MAY BE PREPARED BY THE PE IN TWO WAYS:

The existing manual method The new electronic method

2
by downloading a copy of the through the PBD Builder in

1
latest approved PBDs from the GPPB Online Portal, once
the GPPB website, then operational, through this
updating the contents based link:
on its current Procurement https://gppbgovph.com/PBD
Project Listings.php

The Project Identification Number shall be based on the PE’s internal rules.
The said identification number shall be maintained or used until the successful award or
cancellation of the Procurement Project.
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SIXTH EDITION OF THE
Preparation of the PBDs PHILIPPINE BIDDING
DOCUMENTS
THE PEs SHALL INDICATE IN THE PBDs THE FOLLOWING:

1 ABC 4 Scope of Work or Terms of

Reference
2 Information in the Invitation to Bid
5 Technical Specifications
3 Information required in the Bid
Data Sheet that supplement, Delivery Date or Completion
6
amend, or identify the requirements Schedule
included in the Instruction to
Bidders, which are specific to the
Procurement Project

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SIXTH EDITION OF THE PHILIPPINE
Submission of Required Forms BIDDING
DOCUMENTS

Required Forms

Mandatory Provisions of Required Forms

Templates of Required Forms

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SIXTH EDITION OF THE PHILIPPINE
Submission of Required Forms BIDDING
DOCUMENTS
REQUIRED FORMS TO BE SUBMITTED BY THE BIDDER

1 Standard bidding forms vs. “Required Forms”

2 The “Required Forms” are expressly provided in Item 5.1 of the Circular.

3 The Required Forms to be notarized are in Item 5.4 of the Circular.

4 violation of the Bid Securing Declaration of Performance Securing Declaration’s

terms shall be penalized with automatic disqualification from bidding

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SIXTH EDITION OF THE PHILIPPINE
Submission of Required Forms BIDDING
DOCUMENTS
REQUIRED FORMS TO BE SUBMITTED BY THE BIDDER

5
Non-submission of original copies of the Bid Security or Bid Securing
Declaration shall be a ground for post-disqualification, pursuant to
Section 30.1 of the 2016 revised IRR of RA No. 9184.

For the Bid Form, Price Schedules, BSD, OSS, JVA or Notarized Statements
as to forming JV for Goods, PSD, if used, and Contract Agreement Form, the
6
Bidder or its authorized representative shall be required to provide its name,
legal capacity, and signature thereon.

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without the author’s approval is prohibited.
SIXTH EDITION OF THE PHILIPPINE
Submission of Required Forms BIDDING
DOCUMENTS
MANDATORY PROVISIONS OF REQUIRED FORMS

1 Mandatory provisions of Required Forms are those provisions that are

prescribed in the rules.
2
These mandatory provisions are expressly stated in Item 6.1 of the Circular.

3 The PEs shall check compliance of the submitted forms with the mandatory
provisions.

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Required Forms to be submitted by Bidders
For all Procurement Projects

Additional for Goods

Form of Contract
Price
Bid Form
Contract Price Schedule
Statement of
Bid Security (as identified in ongoing SLCC
Sec 17(j) of 2016 Revised IRR) contracts

Omnibus Sworn
Statement

77
SIXTH EDITION
Required FormsOF THE
to be PHILIPPINE
submitted BIDDING
by Bidders
DOCUMENTS

❑ Bid Form Should bear Bidder or

❑ Price Schedules authorized
❑ Bid Securing Declaration representative’s:
❑ Omnibus Sworn Statement
✔Name
❑ JVA
✔Legal Capacity
❑ Performance Securing Declaration
✔Signature
❑ Contract Agreement Form
SIXTH EDITION OF THE PHILIPPINE BIDDING
Required Forms to be submitted by Bidders
DOCUMENTS
PROVISION OF THE FOLLOWING TEMPLATES
Downloadable from https://www.gppb.gov.ph/downloadables.php

❑ Bid Form for the Procurement of Goods

NOTE: Failure to use
❑ Bid Form for the Procurement of Infrastructure Projects
said templates is
❑ Price Schedule for Goods Offered from Abroad
not a ground for
❑ Price Schedule for Goods Offered from Within the Philippines
disqualification
❑ Bid Securing Declaration*
❑ Contract Agreement Form for the Procurement of Goods
❑ Contract Agreement Form for the Procurement of Infrastructure *Should be notarized,
Projects* including the JVA or
❑ Omnibus Sworn Statement* duly notarized
❑ Performance Securing Declaration* statements from all
potential JV Partners
Revised Templates of Required Forms
BID SECURING DECLARATION
(GPPB Resolution No. 16-2020)

REVISED PROVISION REVISED PENALTIES

A document/undertaking signed ❑ Penalty of
by the bidder committing to pay disqualification for two
the corresponding fine and be (2) years from bidding
automatically disqualified from for any procurement
bidding of any procurement contract with any PE,
contract of ant PE for a period of upon receipt of the BO;
time, upon receipt of the and
Blacklisting Order (BO), in the ❑ Payment of fine to be
event it violated any of the calculated in accordance
conditions stated therein to the rules set

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Revised Templates of Required Forms
REVISED OMNIBUS SWORN STATEMENT
(GPPB Resolution No. 16-2020)
New Form containing the following:

❖ Non-inclusion in blacklist (*revised*) ❖ Non-payment (directly or indirectly) any

❖ Authenticity of documents commission, amount, fee, or any form of
❖ Verification authority consideration in relation to any
❖ Signatory’s authority procurement project or activity
❖ Disclosure of relations ❖ In case advance payment was made or
❖ Responsibilities of bidders given, failure to perform or deliver any of
❖ Labor laws and standards the obligations and undertakings in the
contract shall be sufficient grounds to
constitute criminal liability (*new*)

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Revised Templates of Required Forms

REVISED
OMNIBUS
SWORN
STATEMENT
FORM
(GPPB Resolution
No. 16-2020)

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Revised Templates of Required Forms

REVISED PERFORMANCE SECURING

DECLARATION FORM
(GPPB Resolution No. 16-2020)

Similar to the PSD used in Framework Agreement, such

declaration shall state, among others, that the winning bidder
that it will be automatically disqualified from bidding of any
procurement contract of any procuring entity for a period of
one (1) year for the first offense or two (2) years for the
second offense, upon receipt of the Blacklisting Order, in the
event it violates any of the conditions stated in the contract.
⮚ An unnotarized PSD may be accepted, subject to submission of a
notarized PSD before payment, unless the same is replaced with a
performance security in the prescribed form

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Bid Forms

Bid Prices in figures and

words
Bid price include cost of all
taxes itemized in the bid
form and reflected in price
schedule
Price Schedule
1. The price of the Goods quoted EXW in
Philippine Peso.

2. The cost of all sales and other taxes

already paid or payable

3. The cost of transportation,

insurance, and other costs incidental
to delivery of the Goods to their final
Destination

4. The price of other (incidental)

services, if any.
Use of Foreign Currency for Bid Prices

For goods that will be supplied from

outside the Philippines

Bid prices may be quoted in local currency or

tradeable currency accepted by BSP

Bids denominated in foreign currency shall

be converted to PHP on bid opening for bid
evaluation purposes

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Bid Security
All Bids must be submitted with a Bid Securing Declaration or any form
of Bid Security

BID SECURING BID SECURITY

DECLARATION ❑ Cash or Cashier’s / manager’s
An act wherein the bidder Check issued by a Universal or
contracts with the procuring
entity to pay the performance or Commercial bank
❑ Bank Draft/guarantee or
security within 10 days from irrevocable letter of credit
receipt of the "notice of award" ❑ Surety bond callable upon
as indicated in the bid demand issued by a surety or
documents. insurance company

BIDS (-) BID SECURITY/ BDS = NON RESPONSIVE

87
Contract Agreement Form

NEW PROVISION

Winning bidder agrees that additional contract

documents or information prescribed by the
GPPB that are subsequently required for
execution or submission after the contract
execution, such as the Notice to Proceed,
Variation Orders, and Warranty Security, shall
likewise form part of the Contract.

88
Omnibus Sworn Statement

NEW PROVISIONS

ii. Bidder is not “blacklisted” …, by itself or by

relation, membership, association, affiliation,
or controlling interest with another blacklisted
person or entity as defined and provided for in
the Uniform Guidelines on Blacklisting.

ix. In case of advance payment – failure to deliver

is grounds for Estafa or commission of fraud

89
Performance Securing Declaration

To be submitted within 10 CD

REVISED PROVISION

ii. Automatic Disqualification from bidding any

procurement contract for violations under the
contract

First offense – 1 year blacklisting

Second offense – 2 years blacklisting

90
Other Required Forms
Form Content
Statement of the Bidder Kinds of Goods and dates of delivery
of all its ongoing
government and private
contracts
SLCC Name of the completed contract with contract
date, period and amount
Committed Line of 1. ABC to be bid; 2. Amount, which should be at least
Credit (CLC) equal to ten percent (10%) of the ABC; and 3. Name of
issuing foreign Universal or Commercial Bank, as
confirmed or authenticated by a local Universal or
Commercial Bank.
91
Other Required Forms
Form Content
Notarized Statements as Parties to enter into and abide by the provisions of the
to forming JV for Goods JVA in the event that the bid is successful; and failure
to enter into JVA in the event of a contract award shall
be a ground for bid disqualification and subsequent
forfeiture of the bid security
Certification as to Certification from the relevant government office of
reciprocity to foreign their country stating that Filipinos are allowed to
bidders for Goods participate in their government procurement activities
for the same item/product

92
Grounds for Disqualification

• Non-submission of required forms = disqualification, subject to the

requirements for scanned copies in online or electronic bid
6.4
submissions
• Non-inclusion of mandatory provisions = disqualification

For forms required to be notarized, absence or a finding against the

6.5 truthfulness of the notarization = disqualification, unless allowed to be
submitted at a later date (e.g. NP-EC or during state of calamity)

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93 and distribution
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Online PBD Builder

Enable electronic method of preparing the

PBDs to minimize errors; and

Facilitate the effective conduct of public

procurement (preparation of bidding
documents, and submission and receipts of
bids) of goods and infrastructure projects until
the completion of the modernized PhilGEPS.

https://gppbgovph.com/pbdsetup.php

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CONTRACT IMPLEMENTATION (GOODS)

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AMENDMENT TO ORDER (GOODS)

Up to 10% for:

❑ Emergency cases or during fortuitous events within

the general scope of the contract in any one or more
of the following:
a) drawings, design or specifications,
b) method of shipment or packing; or
c) place of delivery.

❑ Additional items needed for the protection of the

goods, which were not included in the original
contract.
96
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AMENDMENT TO ORDER (GOODS)

Payments for additional If the contract does not

items shall be based on contain any rate
the unit prices in the applicable to the
original contract for additional items, then
items of goods similar suitable prices shall
to those in the original mutually be agreed
contract. upon between the
parties.

97
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AMENDMENT TO ORDER (GOODS)

The contract time shall Prior to commence

likewise be extended if work amendment to
the acquisition of such order, approval of the
additional items so HOPE. Exemption is
warrants. during emergencies up
to 5% where immediate
start of work is allowed
even prior to approval of
the HOPE.

98
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SUSPENSION OF WORK (GOODS)

99
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SUSPENSION OF WORK (GOODS)

100
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SUSPENSION OF WORK (GOODS)

101
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LIQUIDATED DAMAGES (GOODS)

❑ Failure to satisfactorily deliver goods within the delivery

schedule, inclusive of time extensions, 1/10 of 1% or .001 of
the cost of the delayed goods for every day of delay.

❑ When liquidated damages reaches 10%, the PE may rescind

the contract, and impose appropriate sanctions over and
above the liquidated damages to be paid.

102
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 ADVANCE PAYMENT (GOODS)

❑ Advance payment shall be made only after prior

approval of the President, and shall not exceed
15% of the contract amount, unless otherwise
directed by the President

❑Without prior approval of the President, a single advance

payment not to exceed 50% shall be allowed for:
a) Hotel and restaurant services;
b) Use of conference/seminar and exhibit areas; and
c) Lease of office space.
103
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ADVANCE PAYMENT (GOODS)

2) To address contingencies arising from calamities in

areas where a “State of Calamity” has been declared.

3) Upon submission of an irrevocable letter of

credit or bank guarantee, advance payment not
to exceed fifteen percent (15%).

104
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CONTRACT IMPLEMENTATION (INFRA)

105
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CONTRACT IMPLEMENTATION
POSTING OF WARRANTY SECURITY Type of Structural Defects Warranty
and Failures Period
Purpose Permanent
Structures(Types 4 and 5; 15 years
To guarantee that the Ex. steel, iron, concrete)
contractor shall perform his
Semi-Permanent structures
responsibilities and shall (Types 1,2 and 3; Ex. roads,
answer for an liability concrete river control, 5 years
arising due to: drainage, irrigation lined
❑ improper construction canals)
❑ use of inferior Other structures (Ex.
quality/standard wooden bridges, spring 2 years
❑ any violation of the contract developments)
plans and specifications

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CONTRACT IMPLEMENTATION
POSTING OF WARRANTY SECURITY
Form of Warranty Security Amount
a) Cash or cashier’s/manager’s check
Not less than 5% of
issued by Universal of Commercial
the Contract Price
Bank*
b) Bank draft/guarantee or Irrevocable LC
Not less than 10% of
issued by Universal of Commercial
the Contract Price
Bank*
c) Surety bond callable upon demand
Not less than 30% of
certified by the Insurance Commission
the Contract Price
as authorized to issue such security
*For biddings conducted by LGUs, these may be issued by other banks certified by
the BSP as authorized to issue such financial instrument
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CONTRACT IMPLEMENTATION

Certificate of Certificate of
Completion Acceptance
Contract Signing
Procurement Contract Duration Defects Liability - 1 Year

Bid Security Performance Security Performance Security Performance Security

Retention Money Retention Money Retention Money - RELEASE
95% Complete
Punch List

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CONTRACT IMPLEMENTATION

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CONTRACT IMPLEMENTATION

The performance security shall

remain valid until issuance by the
Procuring Entity of the Certificate
of Final Acceptance.
Section 39.4 of 2016 IRR

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VARIATION ORDER (INFRA)
❑ Increase/decrease in quantities in the original contract,
❑ Introduction of new work items
❑ Reclassification of work items

Due to change of plans, design or alignment to suit actual field

conditions resulting in disparity between the preconstruction plans
and the "as staked plans" or construction drawings prepared after a
joint survey by the contractor and the Government after award of the
contract.

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VARIATION ORDER (INFRA)
❑ The cumulative amount of the Variation Order does not
exceed ten percent (10%).

❑ Should be within the general scope of the project as

bid and awarded.

❑ The scope of works shall not be reduced so as to

accommodate a positive Variation Order.

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VARIATION ORDER (INFRA)

A Change Order may be issued by the

implementing official to cover any
increase/decrease in quantities of original work
items in the contract.

An Extra Work Order may be issued to cover the

introduction of new work necessary for the
completion, improvement or protection of the
project.
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VARIATION ORDER (INFRA)

❑ Cumulative Variation Order beyond 10% shall be subject

of another contract to be bid out when separable from
the original contract.

❑ In exceptional cases, more than 10% but not to exceed

20% may be authorized by the HOPE subject to GPPB
guidelines and that appropriate sanctions shall be
imposed on the designer, consultant or official who failed
to consider the Variation Order beyond ten percent (10%)
in the DED.

114
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VARIATION ORDER (INFRA)

❑Within 7 CD after work has been commenced or,

within 28 CD after the circumstances justifying
a claim for extra cost shall have occurred, the
contractor shall deliver a notice detailed
particulars of any extra cost to warrant
investigation.

❑Failure to provide either of such notices shall

constitute a waiver by the contractor for any
claim.

115
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ADVANCE PAYMENT (INFRA)

PLEASE Upon a written request of the contractor, the

PAY IN PE can make an advance payment of not
ADVANCE exceeding 15%, to be made in lump sum or, at
the most, two installments.

Upon the submission to and

acceptance by the PE of an
irrevocable standby letter of credit,
a bank guarantee or a surety bond
callable upon demand.
116
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ADVANCE PAYMENT (INFRA)
To be repaid by the contractor by PLEASE
deducting 15% from periodic progress PAY IN
payments. ADVANCE

The contractor may reduce his standby

letter of credit or guarantee instrument
by the amounts refunded by the
Monthly Certificates in the advance
payment.
117
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PROGRESS PAYMENT (INFRA)

Once a month, the contractor may submit a SWA

or progress billing and corresponding request for
progress payment for work accomplished.

Alternatively, the PE may require in the Bidding

Documents that SWA or progress billing may
only be submitted upon actual completion of the
infrastructure project or a specific portion,
segment, milestone or phase thereof (GPPB
Resolution 07-2018)

118
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PROGRESS PAYMENT (INFRA)

The PE’s representative/project engineer

shall check the SWA and certify the amount to
be paid to the contractor as progress
payment.

Except as otherwise stipulated in the SCC,

materials and equipment delivered on the site
but not completely put in place shall not be
included for payment.

119
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PROGRESS PAYMENT (INFRA)
The PE shall deduct from the progress payment:

a) Cumulative value of the work previously paid for.

b) Portion of the advance payment to be recouped.

c) Retention money.

d) Amount to cover third party liabilities.

e) Amount to cover uncorrected discovered defects
in the works.
120
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RETENTION MONEY (INFRA)

Progress payments are subject to “retention

money” of 10% based on the total amount due
to the contractor prior to any deduction and
shall be retained from every progress payment
until fifty percent (50%) of the value of works.

If, after fifty percent (50%) completion, the work is

satisfactorily done and on schedule, no additional retention
shall be made; otherwise, the ten percent (10%) retention shall
be imposed.
121
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RETENTION MONEY (INFRA)
Shall be released upon final acceptance of the works.
The contractor may, however, request the substitution
provided that the project is on schedule and is
satisfactorily undertaken. Otherwise, the ten percent
(10%) retention shall be made.

Substitute:

❑ Irrevocable Standby Letters of Credit

❑ Bank Guarantees
❑ Surety bond callable on demand
122
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PUNCH LIST (INFRA)
At 95% of the total contract amount, the PE may create an inspectorate team to
make preliminary inspection and submit a punch-list to the contractor in preparation
for the final turnover of the project.

Remaining works

Work deficiencies for necessary corrections

Specific duration/time to fully complete the project
considering the approved remaining contract time.

This, however, shall not preclude the procuring entity's claim for liquidated damages.
123
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LIQUIDATED DAMAGES (INFRA)

Where the contractor refuses or fails to

satisfactorily complete the work within the
specified contract time, plus any time extension,
the contractor shall pay the PE for liquidated
damages, an amount equal to at least 1/10 of 1%
of the cost of the unperformed portion of the
works for every day of delay.

124
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LIQUIDATED DAMAGES (INFRA)

In case that the delay exceeds a time duration

equivalent to 10% of the specified contract time
plus any time extension, the PE concerned may
rescind the contract, forfeit the contractor's
performance security and takeover the
prosecution of the project or award the same to a
qualified contractor through negotiated contract.

125
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SUSPENSION OF WORK (INFRA)

PE can suspend the work wholly or partly by written order due to:

❑ force majeure or any fortuitous events

❑ for failure on the part of the contractor to correct bad conditions
which are unsafe for workers or for the general public
❑ to carry out valid orders given or to perform any provisions of
the contract
❑ due to adjustment of plans to suit field conditions as found
necessary during construction.

The contractor shall immediately comply with such order to

suspend the work wholly or partly.
126
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SUSPENSION OF WORK (INFRA)
The contractor shall have the right to suspend work operation on any or all
projects/activities along the critical path of activities after fifteen (15) calendar days
from date of receipt of written notice:

❑ There exist ROW problems which prohibit the contractor from performing work
❑ Requisite construction plans which must be owner-furnished are not issued to the
contractor precluding any work called for by such plans
❑ Peace and order conditions make it extremely dangerous, if not possible, to work.
The condition must be certified in writing by the PNP station which has
responsibility over the affected area and confirmed by DILG Regional Director.
❑ Delay in the payment of contractor's claim for progress billing beyond 45 calendar
days from the time the contractor's claim has been certified to by the procuring
entity’s authorized representative that the documents are complete unless there
are justifiable reasons thereof which shall be communicated in writing to the
contractor.

127
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 TERMINATION FOR DEFAULT (INFRA)
If Negative Slippage of 5%:

The contractor shall be given a warning and be required to:

1. Submit a detailed “catch-up” program every two weeks in order
to eliminate the slippage and to restore the project to its original
schedule;
2. Accelerate work and identify specific physical targets to be
accomplished over a definite period of time; and
3. Provide additional input resources such as money, manpower,
materials, equipment, and management, which shall be mobilize
for this action.

The implementing unit shall exercise closer supervision and meet the
contractor every other week to evaluate the progress of work and resolve any
problems and bottlenecks.
128
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TERMINATION FOR DEFAULT (INFRA)
If Negative slippage of 10%:
The contractor shall be issued a final
warning and be required to come-up with
a revised detailed “catch-up” program
with weekly physical targets together
with the required additional input
resources.

The implementing unit shall intensify on-site supervision and evaluation of the
project performance to at least once a week and prepare contingency plans
for a possible termination of the contract or take-over of the work by
administration or contract.
129
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TERMINATION FOR DEFAULT (INFRA)

If Negative slippage of 15%:

The implementing unit shall initiate termination of the contract or take-over of

the work by administration or contract in accordance with Section 53.3 of the
2016 revised IRR of RA No. 9184 and the Revised Guidelines for the
Implementation of Infrastructure Projects by Administration.

130
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TERMINATION FOR DEFAULT (INFRA)
If Negative slippage of 10%:

The contractor shall be issued a final warning and be required to come-up with a
revised detailed “catch-up” program with weekly physical targets together with
the required additional input resources.

The implementing unit shall intensify on-site supervision and evaluation of the
project performance to at least once a week and prepare contingency plans for
a possible termination of the contract or take-over of the work by administration
or contract.

If Negative slippage of 15%:

The implementing unit shall initiate termination of the contract or take-over of

the work by administration or contract in accordance with Section 53.3 of the
2016 revised IRR of RA No. 9184 and the Revised Guidelines for the
Implementation of Infrastructure Projects by Administration.

131
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GUIDELINES ON THE USE
OF FRAMEWORK
AGREEMENT
I Background

II Framework Agreement Process

BACKGROUND
Amendments to the Guidelines for
Guidelines to the Use of Framework Agreement
Ordering Agreement for All Procuring Entities
Dated 27 Jan 2012 Dated 10 Dec 2019

Dated 01 Apr 2005

Dated 10 Apr 2017
Guidelines for
Guidelines for
Ordering Agreement
Framework Agreement
WHAT IS A FRAMEWORK AGREEMENT?

Written agreement between a procuring entity

and a supplier or service provider that identifies
the terms and conditions, under which specific
purchases, otherwise known as “Call-Offs,” are
made for the duration of the agreement.

An option contract between the procuring entity

and the bidder(s) granting the procuring entity
the option to either place an order for any of the
goods or services identified in the Framework
Agreement List or not buy at all, within a
minimum period of one (1) year to a
maximum period of three (3) years.
GPPB Resolution No. 27-2019
APPLICABILITY

Procurement of Goods
and Services
Repeatedly required, but by their nature, use, or
characteristic, the quantity or exact time of need
cannot be accurately pre-determined

Procurement of Goods
which are not advisable to be carried in
stock

GPPB Resolution No. 27-2019

GENERAL CONDITIONS
Procuring entities may use Efficiency in procurement is attained
Framework Agreement if the
Stockholding or warehousing of goods, and the
Bids and Awards Committee costs and risks accompanying it will be significantly
(BAC) determines that entering reduced or avoided
in a Framework Agreement is Incurrence of additional cost will be lessened
more
Commitment by the supplier or service provider to
immediately deliver at short notice will be a more
efficient means of supplying goods and services
PRACTICAL
Procuring entity will benefit from the fixed price

ECONOMICAL Call-Offs at the time of actual need will result in the

optimum usage of the ABC
ADVANTAGEOUS for
the Procuring Entity Achieve benefits and advantages of lean and just-
in-time procurements
FRAMEWORK AGREEMENT
PROCESS
PROCUREMENT PLANNING

Preparation of Framework Agreement List

Contents
The End-user Unit shall determine that the goods or services
to be included in the Framework Agreement List are necessary
Type and nature Technical
and desirable for the operations of the procuring entity,
of each item or Specifications or
supported by a document establishing the need for the
service Scope of Work
acquisition of the goods in the Framework Agreement List,
such as, but not limited to historical data, needs analysis, or
market study establishing the Approved Budget for the Maximum Estimated cost
Contract (ABC) for each of the goods in the Framework quantity of items per item or
Agreement List. or services service*

The Framework Agreement List must be attached to Expected

the Annual Procurement Plan (APP) submitted to the Total ABC delivery
BAC to be approved by the Head of the Procuring
timeframe
Entity (HoPE).
Sec. 7.7 of the 2016 IRR, as included in GPPB Resolution No. *Should consider variables and factors that may
27-2019 affect future market prices
PROCUREMENT PLANNING
Sample Framework Agreement List
FRAMEWORK AGREEMENT LIST
(Name of Agency)
Total Cost per
Item/ Service Cost per item or service Max Quantity
Item

TOTAL (Approved Budget for

the Contract)
Expected delivery
Within [no. of days] cd upon issuance of Call-off
timeframe
Remarks Indicate here any other appropriate information
USE OF COMPETITIVE BIDDING

The procurement of goods and services under a Framework Agreement shall

be conducted following the procedure for Competitive Bidding provided in RA
No. 9184 and its revised IRR, subject to Item 7 of the Guidelines.

Single Stage, two-envelope procedure Invitation to Bid :

Indicate if Framework Agreement is
BAC to prepare technical specifications or SOW for for a single or multi-year
every item, and should indicate the ff: Framework Agreement.
Sec. 7.2 , GPPB Reso 27-2019

For Multi-Year FA (MYFA):

ABC for the first year = basis for
computing SLCC, NFCC, bid
security, bidding documents fee,
Total cost per item Maximum quantity Requested delivery or protest fee
performance lead time from Sec. 7.3 , GPPB Reso 27-2019
it may procure issuance of Call-off or any other
when needed date determined by PE
PROCEDURE AND REQUIREMENTS

Single Year Framework Multi-Year Framework Agreement

Agreement (One year) (Two to three years)
● Outright determination of the LCRB shall be ● Bidders to submit INITIAL technical and financial
conducted by the BAC requirements

● HoPE to award option contract in the form of a ● Initial eligibility determination by BAC and whether
Notice to Execute Framework Agreement financial proposal is within ABC
● Actual purchase to be made after Call-off
● HoPE to issue a Notice to Execute a Framework
● Prices quoted are fixed, and not subject to price Agreement to all complying bidders based on BAC
escalation recommendation

● SCRB shall only be considered for award ● Determination of LCRB shall be performed through a
based on Sec. 36 of 2016 Revised IRR Mini-Competition among all eligible bidders
● For Multi Year FA, if only 1 bidder passed
the preliminary evaluation, convert to ● During Mini-Competition, suppliers shall submit their
Single Year FA
best financial proposals on the pre-scheduled date, time
● Prices quoted by the bidder must be within
and place
the total cost per item
ENTERING INTO A FRAMEWORK AGREEMENT

Within ten (10) calendar Enter into a Submission of a

days from receipt of the Framework Agreement Performance Security
Notification to Execute a for an amount of One or Performance
Framework Agreement Peso paid by PE Securing Declaration
(Computation shall be based on
the total contract price)
 KNOWLEDGE
CHECK NO. 2

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FRAMEWORK AGREEMENT

Framework Agreements include:

● Framework Agreement List
● Provision that the perfection of the actual procurement contract shall be reckoned from the
execution of the Call-Offs
● Statement that upon the execution of the Call-Offs, all rules and guidelines governing
implementation of procurement contracts under RA No. 9184 and its revised IRR shall be applicable

Framework Agreements shall be valid only for the period stated in the bidding documents, and shall not
exceed three (3) years from signing

If there has been any change in the capability of the supplier or service provider to undertake its
obligations, the PE shall consider the said supplier or as ineligible and disqualify from award

Bidders executing the Framework Agreement either for single or multi-year shall ensure the continuing
validity of their eligibility documents during the implementation of the contract.
FRAMEWORK AGREEMENT

WHAT NOTS

● Shall not state or imply any agreement by the procuring

entity to place future contracts or make orders with the
supplier/service provider.

● No modification of the Framework Agreement during its

lifetime shall be allowed.

● Valid only for the period stated in the Bidding Documents

which, in no case shall exceed three (3) years from the
time the Framework Agreement was executed.
FRAMEWORK AGREEMENT

PARTS OF THE FRAMEWORK

AGREEMENT
● Framework Agreement Form;
● Bidding Documents;
● Call-offs;
● Winning bidder’s bid
● Performance Security or Performance Securing
Declaration, as the case may be;
● Notice to Execute Framework Agreement; and
● Other contract documents that may be required by
existing laws and/or specified in the BDS.
FRAMEWORK AGREEMENT
CALL-OFF

● Issued by the PE after No limit in the number of Call-Offs that may

determination of the need to
procure the items or services; be executed. However:
- Subsequent Call-Offs shall not exceed the
maximum quantity in the Framework
● Issued in favor of the suppliers/ Agreement List;
service providers to obligate the - The fixed contract prices rule shall be
latter to deliver or perform observed:
according to the terms and ● SYFA: price is based on price quoted by the
conditions states in the
Supplier in its bid;
Framework Agreement.
● MYFA: price is based on price quoted by
the Supplier during conduct of Mini-
Competition.
The Certificate of Availability of - All executed Call-Offs shall not exceed the
Funds shall be issued only every total contract price specified in the Framework
Call-Off Agreement.
CALL-OFF

Multiple Destinations or Locations

The BAC may execute Call-Offs requiring

delivery to multiple destinations or
performance at multiple locations
FRAMEWORK AGREEMENT
IMPLEMENTATION AND TERMINATION OF CALL-OFF

Any extension of time for the delivery or performance shall be made

in writing and prior to the date of deliver or performance indicated Automatic Termination under the
in the Framework Agreement or Call-Off, subject to prior approval following conditions:
If the supplier or service provider fails to deliver or perform, including
any time extension, it shall be liable for liquidated damages of at
least equal to 1/10th of one percent (.001) of the cost of the
unperformed portion of the total amount of the items ordered per
Call-Off for every day of delay.

Once the cumulative amount of liquidated damages reaches ten

percent (10%) of the total amount of the items ordered per Call-Off, Total maximum Specific duration of
the PE may rescind the Agreement. quantity specified in the FA has expired
FA has been
The Warranty provision for goods under Section 62 of RA No. 9184 exhausted
and its revised IRR shall be observed, and shall be required for each
Call-Off.
REPEAT ORDER
Conditions:

The PE has exhausted the maximum quantity for the same item

The Framework Agreement has expired

Subject to conditions under Section 51 of R.A. No. 9184

Availed only within 6 months from the date of the last or final Call-Off for a
specific item where the maximum quantity has been exhausted or from the
expiration of the Framework Agreement.

Limited to twenty five percent (25%) maximum allowable quantity based

on the aggregate quantity of actual items ordered and delivered
 Contact us:
Unit 2504 Raffles Corporate Center, F. Ortigas Road, Ortigas
THANK YOU! Center, Pasig City, Philippines 1605

TeleFax: (632)7900-6741 to 44
Email address: [email protected]