BIDDING DOCUMENTS

(As Harmonized with Development Partners)

PROCUREMENT OF SERVICE BUSES

Fifth Edition
August 2016
 TABLE OF CONTENTS

SECTION I. INVITATION TO BID ................................................................. 3

SECTION II. INSTRUCTIONS TO BIDDERS .................................................. 5
SECTION III. BID DATA SHEET ............................................................... 34
SECTION IV. GENERAL CONDITIONS OF CONTRACT ............................. 37
SECTION V. SPECIAL CONDITIONS OF CONTRACT ................................. 51
SECTION VI. SCHEDULE OF REQUIREMENTS.......................................... 56
SECTION VII. TECHNICAL SPECIFICATIONS ........................................... 61
SECTION VIII. BIDDING FORMS .............................................................. 66
Section I. Invitation to Bid

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 Section II. Instructions to Bidders
A. General

1. Scope of Bid
1.1. The Procuring Entity named in the BDS invites bids for the supply and delivery of
the Goods as described in Section VII. Technical Specifications.

1.2. The name, identification, and number of lots specific to this bidding are provided
in the BDS. The contracting strategy and basis of evaluation of lots is described in
ITB Clause 28.

2. Source of Funds
The Procuring Entity has a budget or has received funds from the Funding Source named
in the BDS, and in the amount indicated in the BDS. It intends to apply part of the funds
received for the Project, as defined in the BDS, to cover eligible payments under the
contract.

3. Corrupt, Fraudulent, Collusive, and Coercive Practices

3.1. Unless otherwise specified in the BDS, the Procuring Entity as well as the bidders
and suppliers shall observe the highest standard of ethics during the procurement
and execution of the contract. In pursuance of this policy, the Procuring Entity:

(a) defines, for purposes of this provision, the terms set forth below as follows:

(i) “corrupt practice” means behavior on the part of officials in the

public or private sectors by which they improperly and unlawfully
enrich themselves, others, or induce others to do so, by misusing the
position in which they are placed, and includes the offering, giving,
receiving, or soliciting of anything of value to influence the action
of any such official in the procurement process or in contract
execution; entering, on behalf of the government, into any contract
or transaction manifestly and grossly disadvantageous to the same,
whether or not the public officer profited or will profit thereby, and
similar acts as provided in RA 3019.

(ii) “fraudulent practice” means a misrepresentation of facts in order to

influence a procurement process or the execution of a contract to the
detriment of the Procuring Entity, and includes collusive practices
among Bidders (prior to or after bid submission) designed to
establish bid prices at artificial, non-competitive levels and to

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 deprive the Procuring Entity of the benefits of free and open
competition.

(iii) “collusive practices” means a scheme or arrangement between two

or more Bidders, with or without the knowledge of the Procuring
Entity, designed to establish bid prices at artificial, non-competitive
levels.

(iv) “coercive practices” means harming or threatening to harm, directly

or indirectly, persons, or their property to influence their
participation in a procurement process, or affect the execution of a
contract;

(v) “obstructive practice” is

(aa) deliberately destroying, falsifying, altering or concealing of

evidence material to an administrative proceedings or
investigation or making false statements to investigators in
order to materially impede an administrative proceedings or
investigation of the Procuring Entity or any foreign
government/foreign or international financing institution
into allegations of a corrupt, fraudulent, coercive or collusive
practice; and/or threatening, harassing or intimidating any
party to prevent it from disclosing its knowledge of matters
relevant to the administrative proceedings or investigation or
from pursuing such proceedings or investigation; or

(bb) acts intended to materially impede the exercise of the

inspection and audit rights of the Procuring Entity or any
foreign government/foreign or international financing
institution herein.

(b) will reject a proposal for award if it determines that the Bidder
recommended for award has engaged in any of the practices mentioned in
this Clause for purposes of competing for the contract.

3.2. Further, the Procuring Entity will seek to impose the maximum civil,
administrative, and/or criminal penalties available under applicable laws on
individuals and organizations deemed to be involved in any of the practices
mentioned in ITB Clause 3.1(a).

3.3. Furthermore, the Funding Source and the Procuring Entity reserve the right to
inspect and audit records and accounts of a bidder or supplier in the bidding for and
performance of a contract themselves or through independent auditors as reflected
in the GCC Clause 3.

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4. Conflict of Interest
4.1. All Bidders found to have conflicting interests shall be disqualified to participate
in the procurement at hand, without prejudice to the imposition of appropriate
administrative, civil, and criminal sanctions. A Bidder may be considered to have
conflicting interests with another Bidder in any of the events described in
paragraphs (a) through (c) below and a general conflict of interest in any of the
circumstances set out in paragraphs (d) through (g) below:

(a) A Bidder has controlling shareholders in common with another Bidder;

(b) A Bidder receives or has received any direct or indirect subsidy from any
other Bidder;

(c) A Bidder has the same legal representative as that of another Bidder for
purposes of this bid;

(d) A Bidder has a relationship, directly or through third parties, that puts them
in a position to have access to information about or influence on the bid of
another Bidder or influence the decisions of the Procuring Entity regarding
this bidding process;

(e) A Bidder submits more than one bid in this bidding process. However, this
does not limit the participation of subcontractors in more than one bid;

(f) A Bidder who participated as a consultant in the preparation of the design

or technical specifications of the Goods and related services that are the
subject of the bid; or

(g) A Bidder who lends, or temporarily seconds, its personnel to firms or

organizations which are engaged in consulting services for the preparation
related to procurement for or implementation of the project, if the personnel
would be involved in any capacity on the same project.

4.2. In accordance with Section 47 of the IRR of RA 9184, all Bidding Documents shall
be accompanied by a sworn affidavit of the Bidder that it is not related to the Head
of the Procuring Entity (HoPE), members of the Bids and Awards Committee
(BAC), members of the Technical Working Group (TWG), members of the BAC
Secretariat, the head of the Project Management Office (PMO) or the end-user unit,
and the project consultants, by consanguinity or affinity up to the third civil degree.
On the part of the Bidder, this Clause shall apply to the following persons:

(a) If the Bidder is an individual or a sole proprietorship, to the Bidder himself;

(b) If the Bidder is a partnership, to all its officers and members;

(c) If the Bidder is a corporation, to all its officers, directors, and controlling
stockholders;

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 (d) If the Bidder is a cooperative, to all its officers, directors, and controlling
shareholders or members; and

(e) If the Bidder is a joint venture (JV), the provisions of items (a), (b), (c), or
(d) of this Clause shall correspondingly apply to each of the members of the
said JV, as may be appropriate.

Relationship of the nature described above or failure to comply with this Clause
will result in the automatic disqualification of a Bidder.

5. Eligible Bidders
5.1. Unless otherwise provided in the BDS, the following persons shall be eligible to
participate in this bidding:

(a) Duly licensed Filipino citizens/sole proprietorships;

(b) Partnerships duly organized under the laws of the Philippines and of which
at least sixty percent (60%) of the interest belongs to citizens of the
Philippines;

(c) Corporations duly organized under the laws of the Philippines, and of which
at least sixty percent (60%) of the outstanding capital stock belongs to
citizens of the Philippines;

(d) Cooperatives duly organized under the laws of the Philippines; and

(e) Persons/entities forming themselves into a Joint Venture (JV), i.e., a group
of two (2) or more persons/entities that intend to be jointly and severally
responsible or liable for a particular contract: Provided, however, that
Filipino ownership or interest of the JV concerned shall be at least sixty
percent (60%).

5.2. Foreign bidders may be eligible to participate when any of the following
circumstances exist, as specified in the BDS:

(a) When a Treaty or International or Executive Agreement as provided in

Section 4 of RA 9184 and its IRR allow foreign bidders to participate;

(b) Citizens, corporations, or associations of a country, the laws or regulations

of which grant reciprocal rights or privileges to citizens, corporations, or
associations of the Philippines;

(c) When the Goods sought to be procured are not available from local
suppliers; or

(d) When there is a need to prevent situations that defeat competition or restrain
trade.

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 5.3. Government owned or –controlled corporations (GOCCs) may be eligible to
participate only if they can establish that they (a) are legally and financially
autonomous, (b) operate under commercial law, and (c) are not attached agencies
of the Procuring Entity.

5.4. Unless otherwise provided in the BDS, the Bidder must have completed a Single
Largest Completed Contract (SLCC) similar to the Project and the value of which,
adjusted, if necessary, by the Bidder to current prices using the Philippine Statistics
Authority (PSA) consumer price index, must be at least equivalent to a percentage
of the ABC stated in the BDS.

For this purpose, contracts similar to the Project shall be those described in the
BDS, and completed within the relevant period stated in the Invitation to Bid and
ITB Clause 12.1(a)(ii).

5.5. The Bidder must submit a computation of its Net Financial Contracting Capacity
(NFCC), which must be at least equal to the ABC to be bid, calculated as follows:

NFCC = [(Current assets minus current liabilities) (15)] minus the value of all
outstanding or uncompleted portions of the projects under ongoing contracts,
including awarded contracts yet to be started, coinciding with the contract to be
bid.

The values of the domestic bidder’s current assets and current liabilities shall be
based on the latest Audited Financial Statements submitted to the BIR.

For purposes of computing the foreign bidders’ NFCC, the value of the current
assets and current liabilities shall be based on their audited financial statements
prepared in accordance with international financial reporting standards.

If the prospective bidder opts to submit a committed Line of Credit, it must be at

least equal to ten percent (10%) of the ABC to be bid. If issued by a foreign
universal or commercial bank, it shall be confirmed or authenticated by a local
universal or commercial bank.

6. Bidder’s Responsibilities
6.1. The Bidder or its duly authorized representative shall submit a sworn statement in
the form prescribed in Section VIII. Bidding Forms as required in ITB Clause
12.1(b)(iii).

6.2. The Bidder is responsible for the following:

(a) Having taken steps to carefully examine all of the Bidding Documents;

(b) Having acknowledged all conditions, local or otherwise, affecting the

implementation of the contract;

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(c) Having made an estimate of the facilities available and needed for the
contract to be bid, if any;

(d) Having complied with its responsibility to inquire or secure

Supplemental/Bid Bulletin(s) as provided under ITB Clause 10.4.

(e) Ensuring that it is not “blacklisted” or barred from bidding by the GOP or
any of its agencies, offices, corporations, or LGUs, including foreign
government/foreign or international financing institution whose
blacklisting rules have been recognized by the GPPB;

(f) Ensuring that each of the documents submitted in satisfaction of the bidding
requirements is an authentic copy of the original, complete, and all
statements and information provided therein are true and correct;

(g) Authorizing the HoPE or its duly authorized representative/s to verify all
the documents submitted;

(h) Ensuring that the signatory is the duly authorized representative of the
Bidder, and granted full power and authority to do, execute and perform any
and all acts necessary and/or to represent the Bidder in the bidding, with the
duly notarized Secretary’s Certificate attesting to such fact, if the Bidder is
a corporation, partnership, cooperative, or joint venture;

(i) Complying with the disclosure provision under Section 47 of RA 9184 and
its IRR in relation to other provisions of RA 3019;

(j) Complying with existing labor laws and standards, in the case of
procurement of services; Moreover, bidder undertakes to:

(i) Ensure the entitlement of workers to wages, hours of work, safety

and health and other prevailing conditions of work as established by
national laws, rules and regulations; or collective bargaining
agreement; or arbitration award, if and when applicable.

In case there is a finding by the Procuring Entity or the DOLE of

underpayment or non-payment of workers’ wage and wage-related
benefits, bidder agrees that the performance security or portion of
the contract amount shall be withheld in favor of the complaining
workers pursuant to appropriate provisions of Republic Act No.
9184 without prejudice to the institution of appropriate actions
under the Labor Code, as amended, and other social legislations.

(ii) Comply with occupational safety and health standards and to correct
deficiencies, if any.

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 In case of imminent danger, injury or death of the worker, bidder
undertakes to suspend contract implementation pending clearance to
proceed from the DOLE Regional Office and to comply with Work
Stoppage Order; and

(iii) Inform the workers of their conditions of work, labor clauses under
the contract specifying wages, hours of work and other benefits
under prevailing national laws, rules and regulations; or collective
bargaining agreement; or arbitration award, if and when applicable,
through posting in two (2) conspicuous places in the establishment’s
premises; and

(k) Ensuring that it did not give or pay, directly or indirectly, any commission,
amount, fee, or any form of consideration, pecuniary or otherwise, to any
person or official, personnel or representative of the government in relation
to any procurement project or activity.

Failure to observe any of the above responsibilities shall be at the risk of the Bidder
concerned.

6.3. The Bidder is expected to examine all instructions, forms, terms, and specifications
in the Bidding Documents.

6.4. It shall be the sole responsibility of the Bidder to determine and to satisfy itself by
such means as it considers necessary or desirable as to all matters pertaining to the
contract to be bid, including: (a) the location and the nature of this Project; (b)
climatic conditions; (c) transportation facilities; and (d) other factors that may affect
the cost, duration, and execution or implementation of this Project.

6.5. The Procuring Entity shall not assume any responsibility regarding erroneous
interpretations or conclusions by the prospective or eligible bidder out of the data
furnished by the procuring entity. However, the Procuring Entity shall ensure that
all information in the Bidding Documents, including bid/supplemental bid
bulletin/s issued, are correct and consistent.

6.6. Before submitting their bids, the Bidder is deemed to have become familiar with all
existing laws, decrees, ordinances, acts and regulations of the Philippines which
may affect this Project in any way.

6.7. The Bidder shall bear all costs associated with the preparation and submission of
his bid, and the Procuring Entity will in no case be responsible or liable for those
costs, regardless of the conduct or outcome of the bidding process.

6.8. The Bidder should note that the Procuring Entity will accept bids only from those
that have paid the applicable fee for the Bidding Documents at the office indicated
in the Invitation to Bid.

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7. Origin of Goods
Unless otherwise indicated in the BDS, there is no restriction on the origin of goods other
than those prohibited by a decision of the United Nations Security Council taken under
Chapter VII of the Charter of the United Nations, subject to ITB Clause 27.1.

8. Subcontracts
8.1. Unless otherwise specified in the BDS, the Bidder may subcontract portions of the
Goods to an extent as may be approved by the Procuring Entity and stated in the
BDS. However, subcontracting of any portion shall not relieve the Bidder from
any liability or obligation that may arise from the contract for this Project.

8.2. Subcontractors must submit the documentary requirements under ITB Clause 12
and comply with the eligibility criteria specified in the BDS. In the event that any
subcontractor is found by the Procuring Entity to be ineligible, the subcontracting
of such portion of the Goods shall be disallowed.

8.3. The Bidder may identify the subcontractor to whom a portion of the Goods will be
subcontracted at any stage of the bidding process or during contract
implementation. If the Bidder opts to disclose the name of the subcontractor during
bid submission, the Bidder shall include the required documents as part of the
technical component of its bid.

B. Contents of Bidding Documents

9. Pre-Bid Conference
9.1. (a) If so specified in the BDS, a pre-bid conference shall be held at the venue and
on the date indicated therein, to clarify and address the Bidders’ questions on the
technical and financial components of this Project.

(b) The pre-bid conference shall be held at least twelve (12) calendar days before
the deadline for the submission and receipt of bids, but not earlier than seven (7)
calendar days from the posting of the invitation to bid/bidding documents in the
PhilGEPS website. If the Procuring Entity determines that, by reason of the method,
nature, or complexity of the contract to be bid, or when international participation
will be more advantageous to the GOP, a longer period for the preparation of bids
is necessary, the pre-bid conference shall be held at least thirty (30) calendar days
before the deadline for the submission and receipt of bids, as specified in the BDS.

9.2. Bidders are encouraged to attend the pre-bid conference to ensure that they fully
understand the Procuring Entity’s requirements. Non-attendance of the Bidder will
in no way prejudice its bid; however, the Bidder is expected to know the changes
and/or amendments to the Bidding Documents as recorded in the minutes of the
pre-bid conference and the Supplemental/Bid Bulletin. The minutes of the pre-bid
conference shall be recorded and prepared not later than five (5) calendar days after

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 the pre-bid conference. The minutes shall be made available to prospective bidders
not later than five (5) days upon written request.

1.3 Decisions of the BAC amending any provision of the bidding documents shall be
issued in writing through a Supplemental/Bid Bulletin at least seven (7) calendar
days before the deadline for the submission and receipt of bids.

10. Clarification and Amendment of Bidding Documents

10.1. Prospective bidders may request for clarification on and/or interpretation of any
part of the Bidding Documents. Such request must be in writing and submitted to
the Procuring Entity at the address indicated in the BDS at least ten (10) calendar
days before the deadline set for the submission and receipt of Bids.

10.2. The BAC shall respond to the said request by issuing a Supplemental/Bid Bulletin,
to be made available to all those who have properly secured the Bidding
Documents, at least seven (7) calendar days before the deadline for the submission
and receipt of Bids.

10.3. Supplemental/Bid Bulletins may also be issued upon the Procuring Entity’s
initiative for purposes of clarifying or modifying any provision of the Bidding
Documents not later than seven (7) calendar days before the deadline for the
submission and receipt of Bids. Any modification to the Bidding Documents shall
be identified as an amendment.

10.4. Any Supplemental/Bid Bulletin issued by the BAC shall also be posted in the
PhilGEPS and the website of the Procuring Entity concerned, if available, and at
any conspicuous place in the premises of the Procuring Entity concerned. It shall
be the responsibility of all Bidders who have properly secured the Bidding
Documents to inquire and secure Supplemental/Bid Bulletins that may be issued by
the BAC. However, Bidders who have submitted bids before the issuance of the
Supplemental/Bid Bulletin must be informed and allowed to modify or withdraw
their bids in accordance with ITB Clause 23.

C. Preparation of Bids

11. Language of Bids

The eligibility requirements or statements, the bids, and all other documents to be
submitted to the BAC must be in English. If the eligibility requirements or statements, the
bids, and all other documents submitted to the BAC are in foreign language other than
English, it must be accompanied by a translation of the documents in English. The
documents shall be translated by the relevant foreign government agency, the foreign
government agency authorized to translate documents, or a registered translator in the
foreign bidder’s country; and shall be authenticated by the appropriate Philippine foreign
service establishment/post or the equivalent office having jurisdiction over the foreign

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 bidder’s affairs in the Philippines. The English translation shall govern, for purposes of
interpretation of the bid.

12. Documents Comprising the Bid: Eligibility and Technical Components

12.1. Unless otherwise indicated in the BDS, the first envelope shall contain the
following eligibility and technical documents:

(a) Eligibility Documents –

Class “A” Documents:

(i) PhilGEPS Certificate of Registration and Membership in

accordance with Section 8.5.2 of the IRR, except for foreign bidders
participating in the procurement by a Philippine Foreign Service
Office or Post, which shall submit their eligibility documents under
Section 23.1 of the IRR, provided, that the winning bidder shall
register with the PhilGEPS in accordance with section 37.1.4 of the
IRR.

(ii) Statement of all its ongoing government and private contracts,

including contracts awarded but not yet started, if any, whether
similar or not similar in nature and complexity to the contract to be
bid; and

Statement of the Bidder’s SLCC similar to the contract to be bid, in

accordance with ITB Clause 5.4, within the relevant period as
provided in the BDS.

The two statements required shall indicate for each contract the
following:

(ii.1) name of the contract;

(ii.2) date of the contract;

(ii.3) contract duration;

(ii.4) owner’s name and address;

(ii.5) kinds of Goods;

(ii.6) For Statement of Ongoing Contracts - amount of contract

and value of outstanding contracts;

(ii.7) For Statement of SLCC - amount of completed contracts,

adjusted by the Bidder to current prices using PSA’s

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 consumer price index, if necessary for the purpose of
meeting the SLCC requirement;

(ii.8) date of delivery; and

(ii.9) end user’s acceptance or official receipt(s) or sales invoice

issued for the contract, if completed, which shall be attached
to the statements.

(iii) NFCC computation in accordance with ITB Clause 5.5 or a

committed Line of Credit from a universal or commercial bank.

Class “B” Document:

(iv) If applicable, the Joint Venture Agreement (JVA) in case the joint
venture is already in existence, or duly notarized statements from all
the potential joint venture partners in accordance with Section
23.1(b) of the IRR.

(b) Technical Documents –

(i) Bid security in accordance with ITB Clause 18. If the Bidder opts
to submit the bid security in the form of:

(i.1) a bank draft/guarantee or an irrevocable letter of credit

issued by a foreign bank, it shall be accompanied by a
confirmation from a Universal or Commercial Bank; or

(i.2) a surety bond, it shall be accompanied by a certification by

the Insurance Commission that the surety or insurance
company is authorized to issue such instruments;

(ii) Conformity with technical specifications, as enumerated and

specified in Sections VI and VII of the Bidding Documents; and

(iii) Sworn statement in accordance with Section 25.3 of the IRR of RA

9184 and using the form prescribed in Section VIII. Bidding Forms.

(iv) For foreign bidders claiming eligibility by reason of their country’s

extension of reciprocal rights to Filipinos, a certification from the
relevant government office of their country stating that Filipinos are
allowed to participate in their government procurement activities for
the same item or product.

13. Documents Comprising the Bid: Financial Component

13.1. Unless otherwise stated in the BDS, the financial component of the bid shall contain
the following:

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 (a) Financial Bid Form, which includes bid prices and the applicable Price
Schedules, in accordance with ITB Clauses 15.1 and 15.4;

(b) If the Bidder claims preference as a Domestic Bidder, a certification from

the DTI issued in accordance with ITB Clause 27, unless otherwise
provided in the BDS; and

(c) Any other document related to the financial component of the bid as stated
in the BDS.

13.2. (a) Unless otherwise stated in the BDS, all bids that exceed the ABC
shall not be accepted.

(b) Unless otherwise indicated in the BDS, for foreign-funded procurement, a

ceiling may be applied to bid prices provided the following conditions are
met:

(i) Bidding Documents are obtainable free of charge on a freely accessible

website. If payment of Bidding Documents is required by the
procuring entity, payment could be made upon the submission of bids.

(ii) The procuring entity has procedures in place to ensure that the ABC is
based on recent estimates made by the responsible unit of the
procuring entity and that the estimates reflect the quality, supervision
and risk and inflationary factors, as well as prevailing market prices,
associated with the types of works or goods to be procured.

(iii) The procuring entity has trained cost estimators on estimating prices
and analyzing bid variances.

(iv) The procuring entity has established a system to monitor and report bid
prices relative to ABC and engineer’s/procuring entity’s estimate.

(v) The procuring entity has established a monitoring and evaluation

system for contract implementation to provide a feedback on actual
total costs of goods and works.

14. Alternative Bids

14.1 Alternative Bids shall be rejected. For this purpose, alternative bid is an offer made
by a Bidder in addition or as a substitute to its original bid which may be included
as part of its original bid or submitted separately therewith for purposes of bidding.
A bid with options is considered an alternative bid regardless of whether said bid
proposal is contained in a single envelope or submitted in two (2) or more separate
bid envelopes.

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 14.2 Each Bidder shall submit only one Bid, either individually or as a partner in a JV.
A Bidder who submits or participates in more than one bid (other than as a
subcontractor if a subcontractor is permitted to participate in more than one bid)
will cause all the proposals with the Bidder’s participation to be disqualified. This
shall be without prejudice to any applicable criminal, civil and administrative
penalties that may be imposed upon the persons and entities concerned.

15. Bid Prices

15.1. The Bidder shall complete the appropriate Schedule of Prices included herein,
stating the unit prices, total price per item, the total amount and the expected
countries of origin of the Goods to be supplied under this Project.

15.2. The Bidder shall fill in rates and prices for all items of the Goods described in the
Schedule of Prices. Bids not addressing or providing all of the required items in
the Bidding Documents including, where applicable, Schedule of Prices, shall be
considered non-responsive and, thus, automatically disqualified. In this regard,
where a required item is provided, but no price is indicated, the same shall be
considered as non-responsive, but specifying a zero (0) or a dash (-) for the said
item would mean that it is being offered for free to the Government, except those
required by law or regulations to be accomplished.

15.3. The terms Ex Works (EXW), Cost, Insurance and Freight (CIF), Cost and Insurance
Paid to (CIP), Delivered Duty Paid (DDP), and other trade terms used to describe
the obligations of the parties, shall be governed by the rules prescribed in the current
edition of the International Commercial Terms (INCOTERMS) published by the
International Chamber of Commerce, Paris.

15.4. Prices indicated on the Price Schedule shall be entered separately in the following
manner:

(a) For Goods offered from within the Procuring Entity’s country:

(i) The price of the Goods quoted EXW (ex works, ex factory, ex
warehouse, ex showroom, or off-the-shelf, as applicable);

(ii) The cost of all customs duties and sales and other taxes already paid
or payable;

(iii) The cost of transportation, insurance, and other costs incidental to

delivery of the Goods to their final destination; and

(iv) The price of other (incidental) services, if any, listed in the BDS.

(b) For Goods offered from abroad:

(i) Unless otherwise stated in the BDS, the price of the Goods shall be
quoted DDP with the place of destination in the Philippines as

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 specified in the BDS. In quoting the price, the Bidder shall be free
to use transportation through carriers registered in any eligible
country. Similarly, the Bidder may obtain insurance services from
any eligible source country.

(ii) The price of other (incidental) services, if any, listed in the BDS.

(c) For Services, based on the form which may be prescribed by the Procuring
Entity, in accordance with existing laws, rules and regulations

15.5. Prices quoted by the Bidder shall be fixed during the Bidder’s performance of the
contract and not subject to variation or price escalation on any account. A bid
submitted with an adjustable price quotation shall be treated as non-responsive and
shall be rejected, pursuant to ITB Clause 24.

All bid prices for the given scope of work in the contract as awarded shall be
considered as fixed prices, and therefore not subject to price escalation during
contract implementation, except under extraordinary circumstances. Upon the
recommendation of the Procuring Entity, price escalation may be allowed in
extraordinary circumstances as may be determined by the National Economic and
Development Authority in accordance with the Civil Code of the Philippines, and
upon approval by the GPPB. Nevertheless, in cases where the cost of the awarded
contract is affected by any applicable new laws, ordinances, regulations, or other
acts of the GOP, promulgated after the date of bid opening, a contract price
adjustment shall be made or appropriate relief shall be applied on a no loss-no gain
basis.

16. Bid Currencies

16.1. Prices shall be quoted in the following currencies:

(a) For Goods that the Bidder will supply from within the Philippines, the prices
shall be quoted in Philippine Pesos.

(b) For Goods that the Bidder will supply from outside the Philippines, the
prices may be quoted in the currency(ies) stated in the BDS. However, for
purposes of bid evaluation, bids denominated in foreign currencies shall be
converted to Philippine currency based on the exchange rate as published in
the Bangko Sentral ng Pilipinas (BSP) reference rate bulletin on the day of
the bid opening.

16.2. If so allowed in accordance with ITB Clause 16.1 the Procuring Entity for purposes
of bid evaluation and comparing the bid prices will convert the amounts in various
currencies in which the bid price is expressed to Philippine Pesos at the foregoing
exchange rates.

16.3. Unless otherwise specified in the BDS, payment of the contract price shall be made
in Philippine Pesos.

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17. Bid Validity
17.1. Bids shall remain valid for the period specified in the BDS which shall not exceed
one hundred twenty (120) calendar days from the date of the opening of bids.

17.2. In exceptional circumstances, prior to the expiration of the bid validity period, the
Procuring Entity may request Bidders to extend the period of validity of their bids.
The request and the responses shall be made in writing. The bid security described
in ITB Clause 18 should also be extended corresponding to the extension of the bid
validity period at the least. A Bidder may refuse the request without forfeiting its
bid security, but his bid shall no longer be considered for further evaluation and
award. A Bidder granting the request shall not be required or permitted to modify
its bid.

18. Bid Security

18.1. The Bidder shall submit a Bid Securing Declaration or any form of Bid Security in
the amount stated in the BDS, which shall be not less than the percentage of the
ABC in accordance with the following schedule:

Amount of Bid Security

Form of Bid Security (Not Less than the Percentage of the
ABC)
(a) Cash or cashier’s/manager’s
check issued by a Universal or
Commercial Bank.

For biddings conducted by

LGUs, the Cashier’s/Manager’s
Check may be issued by other
banks certified by the BSP as
authorized to issue such financial
instrument.

(b) Bank draft/guarantee or

Two percent (2%)
irrevocable letter of credit issued
by a Universal or Commercial
Bank: Provided, however, that it
shall be confirmed or
authenticated by a Universal or
Commercial Bank, if issued by a
foreign bank.

For biddings conducted by

LGUs, Bank Draft/Guarantee, or
Irrevocable Letter of Credit may
be issued by other banks certified

19
 by the BSP as authorized to issue
such financial instrument.

(c) Surety bond callable upon

demand issued by a surety or
insurance company duly certified Five percent (5%)
by the Insurance Commission as
authorized to issue such security.

The Bid Securing Declaration mentioned above is an undertaking which states,

among others, that the Bidder shall enter into contract with the procuring entity and
furnish the performance security required under ITB Clause 33.2, within ten (10)
calendar days from receipt of the Notice of Award, and commits to pay the
corresponding amount as fine, and be suspended for a period of time from being
qualified to participate in any government procurement activity in the event it
violates any of the conditions stated therein as provided in the guidelines issued by
the GPPB.

18.2. The bid security should be valid for the period specified in the BDS. Any bid not
accompanied by an acceptable bid security shall be rejected by the Procuring Entity
as non-responsive.

18.3. No bid securities shall be returned to Bidders after the opening of bids and before
contract signing, except to those that failed or declared as post-disqualified, upon
submission of a written waiver of their right to file a request for reconsideration
and/or protest, or upon the lapse of the reglementary period to file a request for
reconsideration or protest. Without prejudice on its forfeiture, bid securities shall
be returned only after the Bidder with the Lowest Calculated Responsive Bid
(LCRB) has signed the contract and furnished the performance security, but in no
case later than the expiration of the bid security validity period indicated in ITB
Clause 18.2.

18.4. Upon signing and execution of the contract pursuant to ITB Clause 32, and the
posting of the performance security pursuant to ITB Clause 33, the successful
Bidder’s bid security will be discharged, but in no case later than the bid security
validity period as indicated in the ITB Clause 18.2.

18.5. The bid security may be forfeited:

(a) if a Bidder:

(i) withdraws its bid during the period of bid validity specified in ITB
Clause 17;

20
 (ii) does not accept the correction of errors pursuant to ITB Clause
28.3(b);

(iii) has a finding against the veracity of any of the documents submitted
as stated in ITB Clause 29.2;

(iv) submission of eligibility requirements containing false information

or falsified documents;

(v) submission of bids that contain false information or falsified

documents, or the concealment of such information in the bids in
order to influence the outcome of eligibility screening or any other
stage of the public bidding;

(vi) allowing the use of one’s name, or using the name of another for
purposes of public bidding;

(vii) withdrawal of a bid, or refusal to accept an award, or enter into

contract with the Government without justifiable cause, after the
Bidder had been adjudged as having submitted the LCRB;

(viii) refusal or failure to post the required performance security within

the prescribed time;

(ix) refusal to clarify or validate in writing its bid during post-

qualification within a period of seven (7) calendar days from receipt
of the request for clarification;

(x) any documented attempt by a Bidder to unduly influence the

outcome of the bidding in his favor;

(xi) failure of the potential joint venture partners to enter into the joint
venture after the bid is declared successful; or

(xii) all other acts that tend to defeat the purpose of the competitive
bidding, such as habitually withdrawing from bidding, submitting
late Bids or patently insufficient bid, for at least three (3) times
within a year, except for valid reasons.

(b) if the successful Bidder:

(i) fails to sign the contract in accordance with ITB Clause 32; or

(ii) fails to furnish performance security in accordance with ITB Clause

33.

19. Format and Signing of Bids

21
 19.1. Bidders shall submit their bids through their duly authorized representative using
the appropriate forms provided in Section VIII. Bidding Forms on or before the
deadline specified in the ITB Clauses 21 in two (2) separate sealed bid envelopes,
and which shall be submitted simultaneously. The first shall contain the technical
component of the bid, including the eligibility requirements under ITB Clause 12.1,
and the second shall contain the financial component of the bid. This shall also be
observed for each lot in the case of lot procurement.

19.2. Forms as mentioned in ITB Clause 19.1 must be completed without any alterations
to their format, and no substitute form shall be accepted. All blank spaces shall be
filled in with the information requested.

19.3. The Bidder shall prepare and submit an original of the first and second envelopes
as described in ITB Clauses 12 and 13. In addition, the Bidder shall submit copies
of the first and second envelopes. In the event of any discrepancy between the
original and the copies, the original shall prevail.

19.4. Each and every page of the Bid Form, including the Schedule of Prices, under
Section VIII hereof, shall be signed by the duly authorized representative/s of the
Bidder. Failure to do so shall be a ground for the rejection of the bid.

19.5. Any interlineations, erasures, or overwriting shall be valid only if they are signed
or initialed by the duly authorized representative/s of the Bidder.

20. Sealing and Marking of Bids

20.1. Bidders shall enclose their original eligibility and technical documents described in
ITB Clause 12 in one sealed envelope marked “ORIGINAL - TECHNICAL
COMPONENT”, and the original of their financial component in another sealed
envelope marked “ORIGINAL - FINANCIAL COMPONENT”, sealing them all
in an outer envelope marked “ORIGINAL BID”.

20.2. Each copy of the first and second envelopes shall be similarly sealed duly marking
the inner envelopes as “COPY NO. ___ - TECHNICAL COMPONENT” and
“COPY NO. ___ – FINANCIAL COMPONENT” and the outer envelope as
“COPY NO. ___”, respectively. These envelopes containing the original and the
copies shall then be enclosed in one single envelope.

20.3. The original and the number of copies of the Bid as indicated in the BDS shall be
typed or written in ink and shall be signed by the Bidder or its duly authorized
representative/s.

20.4. All envelopes shall:

(a) contain the name of the contract to be bid in capital letters;

(b) bear the name and address of the Bidder in capital letters;

22
 (c) be addressed to the Procuring Entity’s BAC in accordance with ITB Clause
1.1;

(d) bear the specific identification of this bidding process indicated in the ITB
Clause 1.2; and

(e) bear a warning “DO NOT OPEN BEFORE…” the date and time for the
opening of bids, in accordance with ITB Clause 21.

20.5. Bid envelopes that are not properly sealed and marked, as required in the bidding
documents, shall not be rejected, but the Bidder or its duly authorized representative
shall acknowledge such condition of the bid as submitted. The BAC or the
Procuring Entity shall assume no responsibility for the misplacement of the
contents of the improperly sealed or marked bid, or for its premature opening.

D. Submission and Opening of Bids

21. Deadline for Submission of Bids
Bids must be received by the Procuring Entity’s BAC at the address and on or before the
date and time indicated in the BDS.

22. Late Bids

Any bid submitted after the deadline for submission and receipt of bids prescribed by the
Procuring Entity, pursuant to ITB Clause 21, shall be declared “Late” and shall not be
accepted by the Procuring Entity. The BAC shall record in the minutes of bid submission
and opening, the Bidder’s name, its representative and the time the late bid was submitted.

23. Modification and Withdrawal of Bids

23.1. The Bidder may modify its bid after it has been submitted; provided that the
modification is received by the Procuring Entity prior to the deadline prescribed for
submission and receipt of bids. The Bidder shall not be allowed to retrieve its
original bid, but shall be allowed to submit another bid equally sealed and properly
identified in accordance with ITB Clause 20, linked to its original bid marked as
“TECHNICAL MODIFICATION” or “FINANCIAL MODIFICATION” and
stamped “received” by the BAC. Bid modifications received after the applicable
deadline shall not be considered and shall be returned to the Bidder unopened.

23.2 A Bidder may, through a Letter of Withdrawal, withdraw its bid after it has been
submitted, for valid and justifiable reason; provided that the Letter of Withdrawal
is received by the Procuring Entity prior to the deadline prescribed for submission

23
 and receipt of bids. The Letter of Withdrawal must be executed by the duly
authorized representative of the Bidder identified in the Omnibus Sworn Statement,
a copy of which should be attached to the letter.

23.3. Bids requested to be withdrawn in accordance with ITB Clause 23.1 shall be
returned unopened to the Bidders. A Bidder, who has acquired the bidding
documents, may also express its intention not to participate in the bidding through
a letter which should reach and be stamped by the BAC before the deadline for
submission and receipt of bids. A Bidder that withdraws its bid shall not be
permitted to submit another bid, directly or indirectly, for the same contract.

23.4. No bid may be modified after the deadline for submission of bids. No bid may be
withdrawn in the interval between the deadline for submission of bids and the
expiration of the period of bid validity specified by the Bidder on the Financial Bid
Form. Withdrawal of a bid during this interval shall result in the forfeiture of the
Bidder’s bid security, pursuant to ITB Clause 18.5, and the imposition of
administrative, civil and criminal sanctions as prescribed by RA 9184 and its IRR.

24. Opening and Preliminary Examination of Bids

24.1. The BAC shall open the bids in public, immediately after the deadline for the
submission and receipt of bids, as specified in the BDS. In case the Bids cannot be
opened as scheduled due to justifiable reasons, the BAC shall take custody of the
Bids submitted and reschedule the opening of Bids on the next working day or at
the soonest possible time through the issuance of a Notice of Postponement to be
posted in the PhilGEPS website and the website of the Procuring Entity concerned.

24.2. Unless otherwise specified in the BDS, the BAC shall open the first bid envelopes
and determine each Bidder’s compliance with the documents prescribed in ITB
Clause 12, using a non-discretionary “pass/fail” criterion. If a Bidder submits the
required document, it shall be rated “passed” for that particular requirement. In this
regard, bids that fail to include any requirement or are incomplete or patently
insufficient shall be considered as “failed”. Otherwise, the BAC shall rate the said
first bid envelope as “passed”.

24.3. Unless otherwise specified in the BDS, immediately after determining compliance
with the requirements in the first envelope, the BAC shall forthwith open the second
bid envelope of each remaining eligible bidder whose first bid envelope was rated
“passed”. The second envelope of each complying bidder shall be opened within
the same day. In case one or more of the requirements in the second envelope of a
particular bid is missing, incomplete or patently insufficient, and/or if the submitted
total bid price exceeds the ABC unless otherwise provided in ITB Clause 13.2, the
BAC shall rate the bid concerned as “failed”. Only bids that are determined to
contain all the bid requirements for both components shall be rated “passed” and
shall immediately be considered for evaluation and comparison.

24
24.4. Letters of Withdrawal shall be read out and recorded during bid opening, and the
envelope containing the corresponding withdrawn bid shall be returned to the
Bidder unopened.

24.5. All members of the BAC who are present during bid opening shall initial every
page of the original copies of all bids received and opened.

24.6. In the case of an eligible foreign bidder as described in ITB Clause 5, the following
Class “A” Documents may be substituted with the appropriate equivalent
documents, if any, issued by the country of the foreign Bidder concerned, which
shall likewise be uploaded and maintained in the PhilGEPS in accordance with
Section 8.5.2 of the IRR:

(a) Registration certificate from the Securities and Exchange Commission (SEC),
Department of Trade and Industry (DTI) for sole proprietorship, or CDA for
cooperatives;

(b) Mayor’s/Business permit issued by the local government where the principal
place of business of the bidder is located; and

(c) Audited Financial Statements showing, among others, the prospective bidder’s
total and current assets and liabilities stamped “received” by the Bureau of
Internal Revenue or its duly accredited and authorized institutions, for the
preceding calendar year which should not be earlier than two years from the
date of bid submission.

24.7. Each partner of a joint venture agreement shall likewise submit the requirements in
ITB Clause 12.1(a)(i). Submission of documents required under ITB Clauses
12.1(a)(ii) to 12.1(a)(iii) by any of the joint venture partners constitutes compliance.

24.8. The Procuring Entity shall prepare the minutes of the proceedings of the bid
opening that shall include, as a minimum: (a) names of Bidders, their bid price (per
lot, if applicable, and/or including discount, if any), bid security, findings of
preliminary examination, and whether there is a withdrawal or modification; and
(b) attendance sheet. The BAC members shall sign the abstract of bids as read.

24.8 The bidders or their duly authorized representatives may attend the opening of bids.
The BAC shall ensure the integrity, security, and confidentiality of all submitted
bids. The Abstract of Bids as read and the minutes of the bid opening shall be made
available to the public upon written request and payment of a specified fee to
recover cost of materials.

24.9 To ensure transparency and accurate representation of the bid submission, the BAC
Secretariat shall notify in writing all bidders whose bids it has received through its
PhilGEPS-registered physical address or official e-mail address. The notice shall
be issued within seven (7) calendar days from the date of the bid opening.

25
 E. Evaluation and Comparison of Bids

25. Process to be Confidential

25.1. Members of the BAC, including its staff and personnel, as well as its Secretariat
and TWG, are prohibited from making or accepting any kind of communication
with any bidder regarding the evaluation of their bids until the issuance of the
Notice of Award, unless otherwise allowed in the case of ITB Clause 26.

25.2. Any effort by a bidder to influence the Procuring Entity in the Procuring Entity’s
decision in respect of bid evaluation, bid comparison or contract award will result
in the rejection of the Bidder’s bid.

26. Clarification of Bids

To assist in the evaluation, comparison, and post-qualification of the bids, the Procuring
Entity may ask in writing any Bidder for a clarification of its bid. All responses to requests
for clarification shall be in writing. Any clarification submitted by a Bidder in respect to
its bid and that is not in response to a request by the Procuring Entity shall not be
considered.

27. Domestic Preference

27.1. Unless otherwise stated in the BDS, the Procuring Entity will grant a margin of
preference for the purpose of comparison of bids in accordance with the following:

(a) The preference shall be applied when the lowest Foreign Bid is lower than
the lowest bid offered by a Domestic Bidder.

(b) For evaluation purposes, the lowest Foreign Bid shall be increased by
fifteen percent (15%).

(c) In the event that the lowest bid offered by a Domestic Bidder does not
exceed the lowest Foreign Bid as increased, then the Procuring Entity shall
award the contract to the Domestic Bidder at the amount of the lowest
Foreign Bid.

(d) If the Domestic Bidder refuses to accept the award of contract at the amount
of the Foreign Bid within two (2) calendar days from receipt of written
advice from the BAC, the Procuring Entity shall award to the bidder
offering the Foreign Bid, subject to post-qualification and submission of all
the documentary requirements under these Bidding Documents.

27.2. A Bidder may be granted preference as a Domestic Bidder subject to the

certification from the DTI that the Bidder is offering unmanufactured articles,
materials or supplies of the growth or production of the Philippines, or
manufactured articles, materials, or supplies manufactured or to be manufactured

26
 in the Philippines substantially from articles, materials, or supplies of the growth,
production, or manufacture, as the case may be, of the Philippines.

28. Detailed Evaluation and Comparison of Bids

28.1. The Procuring Entity will undertake the detailed evaluation and comparison of bids
which have passed the opening and preliminary examination of bids, pursuant to
ITB Clause 24, in order to determine the Lowest Calculated Bid.

28.2. The Lowest Calculated Bid shall be determined in two steps:

(a) The detailed evaluation of the financial component of the bids, to establish
the correct calculated prices of the bids; and

(b) The ranking of the total bid prices as so calculated from the lowest to the
highest. The bid with the lowest price shall be identified as the Lowest
Calculated Bid.

28.3. The Procuring Entity’s BAC shall immediately conduct a detailed evaluation of all
bids rated “passed,” using non-discretionary pass/fail criteria. The BAC shall
consider the following in the evaluation of bids:

(a) Completeness of the bid. Unless the BDS allows partial bids, bids not
addressing or providing all of the required items in the Schedule of
Requirements including, where applicable, Schedule of Prices, shall be
considered non-responsive and, thus, automatically disqualified. In this
regard, where a required item is provided, but no price is indicated, the same
shall be considered as non-responsive, but specifying a zero (0) or a dash (-
) for the said item would mean that it is being offered for free to the
Procuring Entity, except those required by law or regulations to be provided
for; and

(b) Arithmetical corrections. Consider computational errors and omissions to

enable proper comparison of all eligible bids. It may also consider bid
modifications. Any adjustment shall be calculated in monetary terms to
determine the calculated prices.

28.4. Based on the detailed evaluation of bids, those that comply with the above-
mentioned requirements shall be ranked in the ascending order of their total
calculated bid prices, as evaluated and corrected for computational errors, discounts
and other modifications, to identify the Lowest Calculated Bid. Total calculated bid
prices, as evaluated and corrected for computational errors, discounts and other
modifications, which exceed the ABC shall not be considered, unless otherwise
indicated in the BDS

28.5. The Procuring Entity’s evaluation of bids shall be based on the bid price quoted in
the Bid Form, which includes the Schedule of Prices.

27
 28.6. Bids shall be evaluated on an equal footing to ensure fair competition. For this
purpose, all bidders shall be required to include in their bids the cost of all taxes,
such as, but not limited to, value added tax (VAT), income tax, local taxes, and
other fiscal levies and duties which shall be itemized in the bid form and reflected
in the detailed estimates. Such bids, including said taxes, shall be the basis for bid
evaluation and comparison.

28.7. If so indicated pursuant to ITB Clause 1.2, Bids are being invited for individual
lots or for any combination thereof, provided that all Bids and combinations of Bids
shall be received by the same deadline and opened and evaluated simultaneously
so as to determine the Bid or combination of Bids offering the lowest calculated
cost to the Procuring Entity. Bid prices quoted shall correspond to all items
specified for each lot and to all quantities specified for each item of a lot. Bid
Security as required by ITB Clause 18 shall be submitted for each contract (lot)
separately. The basis for evaluation of lots is specified in BDS Clause 28.3.

29. Post-Qualification
29.1. The BAC shall determine to its satisfaction whether the Bidder that is evaluated as
having submitted the Lowest Calculated Bid complies with and is responsive to all
the requirements and conditions specified in ITB Clauses 5, 12, and 13.

29.2. Within a non-extendible period of five (5) calendar days from receipt by the bidder
of the notice from the BAC that it submitted the Lowest Calculated Bid, the Bidder
shall submit its latest income and business tax returns filed and paid through the
BIR Electronic Filing and Payment System (eFPS) and other appropriate licenses
and permits required by law and stated in the BDS.

Failure to submit any of the post-qualification requirements on time, or a finding

against the veracity thereof, shall disqualify the bidder for award. Provided in the
event that a finding against the veracity of any of the documents submitted is made,
it shall cause the forfeiture of the bid security in accordance with Section 69 of the
IRR of RA 9184.

29.3. The determination shall be based upon an examination of the documentary evidence
of the Bidder’s qualifications submitted pursuant to ITB Clauses 12 and 13, as well
as other information as the Procuring Entity deems necessary and appropriate, using
a non-discretionary “pass/fail” criterion, which shall be completed within a period
of twelve (12) calendar days.

29.4. If the BAC determines that the Bidder with the Lowest Calculated Bid passes all
the criteria for post-qualification, it shall declare the said bid as the LCRB, and
recommend to the HoPE the award of contract to the said Bidder at its submitted
price or its calculated bid price, whichever is lower.

29.5. A negative determination shall result in rejection of the Bidder’s Bid, in which
event the Procuring Entity shall proceed to the next Lowest Calculated Bid with a

28
 fresh period to make a similar determination of that Bidder’s capabilities to perform
satisfactorily. If the second Bidder, however, fails the post qualification, the
procedure for post qualification shall be repeated for the Bidder with the next
Lowest Calculated Bid, and so on until the LCRB is determined for
recommendation for contract award.

29.6. Within a period not exceeding fifteen (15) calendar days from the determination by
the BAC of the LCRB and the recommendation to award the contract, the HoPE or
his duly authorized representative shall approve or disapprove the said
recommendation.

29.7. In the event of disapproval, which shall be based on valid, reasonable, and
justifiable grounds as provided for under Section 41 of the IRR of RA 9184, the
HoPE shall notify the BAC and the Bidder in writing of such decision and the
grounds for it. When applicable, the BAC shall conduct a post-qualification of the
Bidder with the next Lowest Calculated Bid. A request for reconsideration may be
filed by the bidder with the HoPE in accordance with Section 37.1.3 of the IRR of
RA 9184.

30. Reservation Clause

30.1. Notwithstanding the eligibility or post-qualification of a Bidder, the Procuring
Entity concerned reserves the right to review its qualifications at any stage of the
procurement process if it has reasonable grounds to believe that a misrepresentation
has been made by the said Bidder, or that there has been a change in the Bidder’s
capability to undertake the project from the time it submitted its eligibility
requirements. Should such review uncover any misrepresentation made in the
eligibility and bidding requirements, statements or documents, or any changes in
the situation of the Bidder which will affect its capability to undertake the project
so that it fails the preset eligibility or bid evaluation criteria, the Procuring Entity
shall consider the said Bidder as ineligible and shall disqualify it from submitting
a bid or from obtaining an award or contract.

30.2. Based on the following grounds, the Procuring Entity reserves the right to reject
any and all bids, declare a Failure of Bidding at any time prior to the contract award,
or not to award the contract, without thereby incurring any liability, and make no
assurance that a contract shall be entered into as a result of the bidding:

(a) If there is prima facie evidence of collusion between appropriate public

officers or employees of the Procuring Entity, or between the BAC and any
of the Bidders, or if the collusion is between or among the bidders
themselves, or between a Bidder and a third party, including any act which
restricts, suppresses or nullifies or tends to restrict, suppress or nullify
competition;

(b) If the Procuring Entity’s BAC is found to have failed in following the
prescribed bidding procedures; or

29
 (c) For any justifiable and reasonable ground where the award of the contract
will not redound to the benefit of the GOP as follows:

(i) If the physical and economic conditions have significantly changed

so as to render the project no longer economically, financially or
technically feasible as determined by the HoPE;

(ii) If the project is no longer necessary as determined by the HoPE; and

(iii) If the source of funds for the project has been withheld or reduced
through no fault of the Procuring Entity.

30.3. In addition, the Procuring Entity may likewise declare a failure of bidding when:

(a) No bids are received;

(b) All prospective Bidders are declared ineligible;

(c) All bids fail to comply with all the bid requirements or fail post-
qualification; or

(d) The bidder with the LCRB refuses, without justifiable cause to accept the
award of contract, and no award is made in accordance with Section 40 of
the IRR of RA 9184.

F. Award of Contract

31. Contract Award

31.1. Subject to ITB Clause 29, the HoPE or its duly authorized representative shall
award the contract to the Bidder whose bid has been determined to be the LCRB.

31.2. Prior to the expiration of the period of bid validity, the Procuring Entity shall notify
the successful Bidder in writing that its bid has been accepted, through a Notice of
Award duly received by the Bidder or its representative personally or sent by
registered mail or electronically, receipt of which must be confirmed in writing
within two (2) days by the Bidder with the LCRB and submitted personally or sent
by registered mail or electronically to the Procuring Entity.

31.3. Notwithstanding the issuance of the Notice of Award, award of contract shall be
subject to the following conditions:

(a) Submission of the following documents within ten (10) calendar days from
receipt of the Notice of Award:

(i) Valid JVA, if applicable; or

30
 (ii) In the case of procurement by a Philippine Foreign Service Office
or Post, the PhilGEPS Registration Number of the winning foreign
Bidder;

(b) Posting of the performance security in accordance with ITB Clause 33;

(c) Signing of the contract as provided in ITB Clause 32; and

(d) Approval by higher authority, if required, as provided in Section 37.3 of the

IRR of RA 9184.

31.4. At the time of contract award, the Procuring Entity shall not increase or decrease
the quantity of goods originally specified in Section VI. Schedule of Requirements.

32. Signing of the Contract

32.1. At the same time as the Procuring Entity notifies the successful Bidder that its bid
has been accepted, the Procuring Entity shall send the Contract Form to the Bidder,
which contract has been provided in the Bidding Documents, incorporating therein
all agreements between the parties.

32.2. Within ten (10) calendar days from receipt of the Notice of Award, the successful
Bidder shall post the required performance security, sign and date the contract and
return it to the Procuring Entity.

32.3. The Procuring Entity shall enter into contract with the successful Bidder within the
same ten (10) calendar day period provided that all the documentary requirements
are complied with.

32.4. The following documents shall form part of the contract:

(a) Contract Agreement;

(b) Bidding Documents;

(c) Winning bidder’s bid, including the Technical and Financial Proposals, and
all other documents/statements submitted (e.g., bidder’s response to request
for clarifications on the bid), including corrections to the bid, if any,
resulting from the Procuring Entity’s bid evaluation;

(d) Performance Security;

(e) Notice of Award of Contract; and

(f) Other contract documents that may be required by existing laws and/or
specified in the BDS.

33. Performance Security

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33.1. To guarantee the faithful performance by the winning Bidder of its obligations
under the contract, it shall post a performance security within a maximum period
of ten (10) calendar days from the receipt of the Notice of Award from the
Procuring Entity and in no case later than the signing of the contract.

33.2. The Performance Security shall be denominated in Philippine Pesos and posted in
favor of the Procuring Entity in an amount not less than the percentage of the total
contract price in accordance with the following schedule:

Amount of Performance Security

Form of Performance Security (Not less than the Percentage of the
Total Contract Price)
(a) Cash or cashier’s/manager’s
check issued by a Universal or
Commercial Bank.

For biddings conducted by the

LGUs, the Cashier’s/Manager’s
Check may be issued by other
banks certified by the BSP as
authorized to issue such
financial instrument.

(b) Bank draft/guarantee or

irrevocable letter of credit issued
by a Universal or Commercial
Five percent (5%)
Bank: Provided, however, that it
shall be confirmed or
authenticated by a Universal or
Commercial Bank, if issued by a
foreign bank.

For biddings conducted by the

LGUs, the Bank Draft/
Guarantee or Irrevocable Letter
of Credit may be issued by other
banks certified by the BSP as
authorized to issue such
financial instrument.

(c) Surety bond callable upon

demand issued by a surety or
insurance company duly
Thirty percent (30%)
certified by the Insurance
Commission as authorized to
issue such security.

32
 33.3. Failure of the successful Bidder to comply with the above-mentioned requirement
shall constitute sufficient ground for the annulment of the award and forfeiture of
the bid security, in which event the Procuring Entity shall have a fresh period to
initiate and complete the post qualification of the second Lowest Calculated Bid.
The procedure shall be repeated until the LCRB is identified and selected for
recommendation of contract award. However if no Bidder passed post-
qualification, the BAC shall declare the bidding a failure and conduct a re-bidding
with re-advertisement, if necessary.

34. Notice to Proceed

Within seven (7) calendar days from the date of approval of the contract by the appropriate
government approving authority, the Procuring Entity shall issue the Notice to Proceed
(NTP) together with a copy or copies of the approved contract to the successful Bidder. All
notices called for by the terms of the contract shall be effective only at the time of receipt
thereof by the successful Bidder.

35. Protest Mechanism

Decisions of the procuring entity at any stage of the procurement process may be
questioned in accordance with Section 55 of the IRR of RA 9184.

33
 Section III. Bid Data Sheet
ITB Clause
1.1 The Procuring Entity is Commission on Audit
The name of the Contract is Procurement of Service Buses.
1.2 The lot and reference is:
Procurement of Service Buses.
2 The Funding Source is:
The Commission on Audit General Fund in the amount of Twenty Four
Million Eight Hundred Thousand Pesos (P24,800,000.00).

The name of the Project is: Procurement of Service Buses.

3.1 No further instructions.
5.1 No further instructions.
5.2 None of the circumstances mentioned in the ITB Clause exists in this Project
5.4 The Bidder must have completed, within the period specified in the
Invitation to Bid and ITB Clause 12.1(a)(ii), a single contract that is similar
to this Project, equivalent to at least fifty percent (50%) of the ABC.
For this purpose, similar contracts shall refer to Supply and Delivery of
Service Buses
7 No further instructions.
8.1 Subcontracting is not allowed.
8.2 Not applicable
9.1 The Procuring Entity will hold a pre-bid conference for this Project on
November 15, 2019, 10:15 A.M at the BAC Office, Room 102, Ground
Floor, Old SAADO Bldg., COA Central Office, Commonwealth Avenue,
Quezon City.
10.1 The Procuring Entity’s address is:
Commonwealth Avenue, Quezon City.
Contact person: Director Eleno P. Malesido, III
Head, BAC Secretariat

Telefax Nos.: 931-7582 / 931-9302

12.1(a) No further instructions.
12.1(a)(ii) The bidder’s SLCC similar to the contract to be bid should have been
completed within five years (November 2014 to November 2019) prior to
the deadline for the submission and receipt of bids.
13.1 No additional requirements.
13.1(b) No further instructions.
13.1(c) No additional requirement.
13.2 The total ABC is Twenty Four Million Eight Hundred Thousand Pesos
(P24,800,000.00), broken down a follows:

Lot No. Particulars Sub-ABC, in pesos

34
 1 Two units Mini Bus, Brand New, at 7,800,000.00
least 29-seater, Air-conditioned,
Diesel
2 Two units Passenger Bus, Brand 17,000,000.00
New, at least 60-seater, Air-
conditioned, Diesel
Any bid with a financial proposal exceeding this amount shall not be
accepted.
15.4(a)(iv) No incidental services are required.
15.4(b) Not applicable. The price of the Services shall be quoted delivered duty
paid (DDP); GSO COA Commonwealth Avenue, Quezon City. No
incidental services are required.
16.1(b) The Bid prices for Goods supplied from outside of the Philippines shall be
quoted in Philippine Pesos.
16.3 Not applicable.
17.1 Bids will be valid until March 28, 2020 or one hundred twenty (120)
calendar days from bid opening date, November 29, 2019.
18.1 The bid security shall be in the form of a Bid Securing Declaration, or any
of the following forms and amounts:

Amount of Bid Security, in pesos

Form of Security
(Equal to Percentage of the ABC)

1. Cash or cashier’s/manager’s Lot No. 1 156,000.00

check, bank draft/guarantee or
irrevocable letter of credit issued Lot No. 2 340,000.00
by a Universal or Commercial
Bank

2. Surety bond callable upon Lot No. 1 390,000.00

demand issued by a surety or
insurance company duly certified Lot No. 2 850,000.00
by the Insurance Commission as
authorized to issue such security

18.2 The bid security shall be valid until March 28, 2020 or one hundred twenty
(120) calendar days from bid opening date, November 29, 2019.
20.3 Each Bidder shall submit one (1) original and three (3) copies of the first
and second components of its bid.
21 The address for submission of bids is BAC Office, Room 102, Ground
Floor, Old SAADO Bldg., COA Central Office, Commonwealth Avenue,
Quezon City.

The deadline for Submission of Bids is on November 29, 2019, 1:15 P.M.
24.1 The place of bid opening is BAC Office, Room 102, Ground Floor former
S1AADO Bldg., COA Complex, Commonwealth Avenue, Quezon City.

35
 The date and time of bid opening is on November 29, 2019, 1:15 P.M.
24.2 No further instructions.
24.3 No further instructions.
27.1 No further instructions.
28.3(a) Partial bids are allowed. All Goods are grouped in lots listed below. Bidders
shall have the option of submitting a proposal on any or all lots and
evaluation and contract award will be undertaken on a per lot basis. Lots
shall not be divided further into sub-lots for the purpose of bidding,
evaluation, and contract award.

In all cases, the NFCC computation, if applicable, must be sufficient for all
the lots or contracts to be awarded to the Bidder.

Lot No. 1 - Two units Mini Bus, Brand New, at least 29-seater, Air-
conditioned, Diesel
Lot No. 2 - Two units Passenger Bus, Brand New, at least 60-seater, Air-
conditioned, Diesel
28.4 No further instructions.
29.2 No additional requirement.
32.4(f) No additional requirement.

36
 Section IV. General Conditions of Contract
1. Definitions
1.1. In this Contract, the following terms shall be interpreted as indicated:

(a) “The Contract” means the agreement entered into between the Procuring
Entity and the Supplier, as recorded in the Contract Form signed by the
parties, including all attachments and appendices thereto and all documents
incorporated by reference therein.

(b) “The Contract Price” means the price payable to the Supplier under the
Contract for the full and proper performance of its contractual obligations.

(c) “The Goods” means all of the supplies, equipment, machinery, spare parts,
other materials and/or general support services which the Supplier is
required to provide to the Procuring Entity under the Contract.

(d) “The Services” means those services ancillary to the supply of the Goods,
such as transportation and insurance, and any other incidental services, such
as installation, commissioning, provision of technical assistance, training,
and other such obligations of the Supplier covered under the Contract.

(e) “GCC” means the General Conditions of Contract contained in this Section.

(f) “SCC” means the Special Conditions of Contract.

(g) “The Procuring Entity” means the organization purchasing the Goods, as
named in the SCC.

(h) “The Procuring Entity’s country” is the Philippines.

(i) “The Supplier” means the individual contractor, manufacturer distributor,

or firm supplying/manufacturing the Goods and Services under this
Contract and named in the SCC.

(j) The “Funding Source” means the organization named in the SCC.

(k) “The Project Site,” where applicable, means the place or places named in
the SCC.

(l) “Day” means calendar day.

(m) The “Effective Date” of the contract will be the date of signing the contract,
however the Supplier shall commence performance of its obligations only
upon receipt of the Notice to Proceed and copy of the approved contract.

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 (n) “Verified Report” refers to the report submitted by the Implementing Unit
to the HoPE setting forth its findings as to the existence of grounds or causes
for termination and explicitly stating its recommendation for the issuance
of a Notice to Terminate.

2. Corrupt, Fraudulent, Collusive, and Coercive Practices

2.1. Unless otherwise provided in the SCC, the Procuring Entity as well as the bidders,
contractors, or suppliers shall observe the highest standard of ethics during the
procurement and execution of this Contract. In pursuance of this policy, the
Procuring Entity:

(a) defines, for the purposes of this provision, the terms set forth below as
follows:

(i) "corrupt practice" means behavior on the part of officials in the

public or private sectors by which they improperly and unlawfully
enrich themselves, others, or induce others to do so, by misusing the
position in which they are placed, and it includes the offering,
giving, receiving, or soliciting of anything of value to influence the
action of any such official in the procurement process or in contract
execution; entering, on behalf of the Government, into any contract
or transaction manifestly and grossly disadvantageous to the same,
whether or not the public officer profited or will profit thereby, and
similar acts as provided in Republic Act 3019.

(ii) "fraudulent practice" means a misrepresentation of facts in order to

influence a procurement process or the execution of a contract to the
detriment of the Procuring Entity, and includes collusive practices
among Bidders (prior to or after bid submission) designed to
establish bid prices at artificial, non-competitive levels and to
deprive the Procuring Entity of the benefits of free and open
competition.

(iii) “collusive practices” means a scheme or arrangement between two

or more Bidders, with or without the knowledge of the Procuring
Entity, designed to establish bid prices at artificial, non-competitive
levels.

(iv) “coercive practices” means harming or threatening to harm, directly

or indirectly, persons, or their property to influence their
participation in a procurement process, or affect the execution of a
contract;

(v) “obstructive practice” is

38
 (aa) deliberately destroying, falsifying, altering or concealing of
evidence material to an administrative proceedings or
investigation or making false statements to investigators in
order to materially impede an administrative proceedings or
investigation of the Procuring Entity or any foreign
government/foreign or international financing institution
into allegations of a corrupt, fraudulent, coercive or collusive
practice; and/or threatening, harassing or intimidating any
party to prevent it from disclosing its knowledge of matters
relevant to the administrative proceedings or investigation or
from pursuing such proceedings or investigation; or

(bb) acts intended to materially impede the exercise of the

inspection and audit rights of the Procuring Entity or any
foreign government/foreign or international financing
institution herein.

(b) will reject a proposal for award if it determines that the Bidder
recommended for award has engaged in any of the practices mentioned in
this Clause for purposes of competing for the contract.

2.2. Further the Funding Source, Borrower or Procuring Entity, as appropriate, will seek
to impose the maximum civil, administrative and/or criminal penalties available
under the applicable law on individuals and organizations deemed to be involved
with any of the practices mentioned in GCC Clause 2.1(a).

3. Inspection and Audit by the Funding Source

The Supplier shall permit the Funding Source to inspect the Supplier’s accounts and
records relating to the performance of the Supplier and to have them audited by auditors
appointed by the Funding Source, if so required by the Funding Source.

4. Governing Law and Language

4.1. This Contract shall be interpreted in accordance with the laws of the Republic of
the Philippines.

4.2. This Contract has been executed in the English language, which shall be the binding
and controlling language for all matters relating to the meaning or interpretation of
this Contract. All correspondence and other documents pertaining to this Contract
exchanged by the parties shall be written in English.

5. Notices
5.1. Any notice, request, or consent required or permitted to be given or made pursuant
to this Contract shall be in writing. Any such notice, request, or consent shall be

39
 deemed to have been given or made when received by the concerned party, either
in person or through an authorized representative of the Party to whom the
communication is addressed, or when sent by registered mail, telex, telegram, or
facsimile to such Party at the address specified in the SCC, which shall be effective
when delivered and duly received or on the notice’s effective date, whichever is
later.

5.2. A Party may change its address for notice hereunder by giving the other Party notice
of such change pursuant to the provisions listed in the SCC for GCC Clause 5.1.

6. Scope of Contract
6.1. The Goods and Related Services to be provided shall be as specified in Section VI.
Schedule of Requirements.

6.2. This Contract shall include all such items, although not specifically mentioned, that
can be reasonably inferred as being required for its completion as if such items were
expressly mentioned herein. Any additional requirements for the completion of
this Contract shall be provided in the SCC.

7. Subcontracting
7.1. Subcontracting of any portion of the Goods, if allowed in the BDS, does not relieve
the Supplier of any liability or obligation under this Contract. The Supplier will be
responsible for the acts, defaults, and negligence of any subcontractor, its agents,
servants or workmen as fully as if these were the Supplier’s own acts, defaults, or
negligence, or those of its agents, servants or workmen.

7.2. If subcontracting is allowed, the Supplier may identify its subcontractor during
contract implementation. Subcontractors disclosed and identified during the
bidding may be changed during the implementation of this Contract. In either case,
subcontractors must submit the documentary requirements under ITB Clause 12
and comply with the eligibility criteria specified in the BDS. In the event that any
subcontractor is found by the Procuring Entity to be ineligible, the subcontracting
of such portion of the Goods shall be disallowed.

8. Procuring Entity’s Responsibilities

8.1. Whenever the performance of the obligations in this Contract requires that the
Supplier obtain permits, approvals, import, and other licenses from local public
authorities, the Procuring Entity shall, if so needed by the Supplier, make its best
effort to assist the Supplier in complying with such requirements in a timely and
expeditious manner.

40
 8.2. The Procuring Entity shall pay all costs involved in the performance of its
responsibilities in accordance with GCC Clause 6.

9. Prices
9.1. For the given scope of work in this Contract as awarded, all bid prices are
considered fixed prices, and therefore not subject to price escalation during contract
implementation, except under extraordinary circumstances and upon prior approval
of the GPPB in accordance with Section 61 of R.A. 9184 and its IRR or except as
provided in this Clause.

9.2. Prices charged by the Supplier for Goods delivered and/or services performed under
this Contract shall not vary from the prices quoted by the Supplier in its bid, with
the exception of any change in price resulting from a Change Order issued in
accordance with GCC Clause 29.

10. Payment
10.1. Payments shall be made only upon a certification by the HoPE to the effect that the
Goods have been rendered or delivered in accordance with the terms of this
Contract and have been duly inspected and accepted. Except with the prior
approval of the President no payment shall be made for services not yet rendered
or for supplies and materials not yet delivered under this Contract. Ten percent
(10%) of the amount of each payment shall be retained by the Procuring Entity to
cover the Supplier’s warranty obligations under this Contract as described in GCC
Clause 17.

10.2. The Supplier’s request(s) for payment shall be made to the Procuring Entity in
writing, accompanied by an invoice describing, as appropriate, the Goods delivered
and/or Services performed, and by documents submitted pursuant to the SCC
provision for GCC Clause 6.2, and upon fulfillment of other obligations stipulated
in this Contract.

10.3. Pursuant to GCC Clause 10.2, payments shall be made promptly by the Procuring
Entity, but in no case later than sixty (60) days after submission of an invoice or
claim by the Supplier. Payments shall be in accordance with the schedule stated in
the SCC.

10.4. Unless otherwise provided in the SCC, the currency in which payment is made to
the Supplier under this Contract shall be in Philippine Pesos.

10.5. Unless otherwise provided in the SCC, payments using Letter of Credit (LC), in
accordance with the Guidelines issued by the GPPB, is allowed. For this purpose,
the amount of provisional sum is indicated in the SCC. All charges for the opening
of the LC and/or incidental expenses thereto shall be for the account of the Supplier.

11. Advance Payment and Terms of Payment

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 11.1. Advance payment shall be made only after prior approval of the President, and shall
not exceed fifteen percent (15%) of the Contract amount, unless otherwise directed
by the President or in cases allowed under Annex “D” of RA 9184.

11.2. All progress payments shall first be charged against the advance payment until the
latter has been fully exhausted.

11.3. For Goods supplied from abroad, unless otherwise indicated in the SCC, the terms
of payment shall be as follows:
(a) On Contract Signature: Fifteen Percent (15%) of the Contract Price shall be
paid within sixty (60) days from signing of the Contract and upon
submission of a claim and a bank guarantee for the equivalent amount valid
until the Goods are delivered and in the form provided in Section VIII.
Bidding Forms.

(b) On Delivery: Sixty-five percent (65%) of the Contract Price shall be paid to
the Supplier within sixty (60) days after the date of receipt of the Goods and
upon submission of the documents (i) through (vi) specified in the SCC
provision on Delivery and Documents.

(c) On Acceptance: The remaining twenty percent (20%) of the Contract Price
shall be paid to the Supplier within sixty (60) days after the date of
submission of the acceptance and inspection certificate for the respective
delivery issued by the Procuring Entity’s authorized representative. In the
event that no inspection or acceptance certificate is issued by the Procuring
Entity’s authorized representative within forty five (45) days of the date
shown on the delivery receipt, the Supplier shall have the right to claim
payment of the remaining twenty percent (20%) subject to the Procuring
Entity’s own verification of the reason(s) for the failure to issue documents
(vii) and (viii) as described in the SCC provision on Delivery and
Documents.

12. Taxes and Duties

The Supplier, whether local or foreign, shall be entirely responsible for all the necessary
taxes, stamp duties, license fees, and other such levies imposed for the completion of this
Contract.

13. Performance Security

13.1. Within ten (10) calendar days from receipt of the Notice of Award from the
Procuring Entity but in no case later than the signing of the contract by both parties,

42
 the successful Bidder shall furnish the performance security in any the forms
prescribed in the ITB Clause 33.2.

13.2. The performance security posted in favor of the Procuring Entity shall be forfeited
in the event it is established that the winning bidder is in default in any of its
obligations under the contract.

13.3. The performance security shall remain valid until issuance by the Procuring Entity
of the Certificate of Final Acceptance.

13.4. The performance security may be released by the Procuring Entity and returned to
the Supplier after the issuance of the Certificate of Final Acceptance subject to the
following conditions:

(a) There are no pending claims against the Supplier or the surety company
filed by the Procuring Entity;

(b) The Supplier has no pending claims for labor and materials filed against it;
and

(c) Other terms specified in the SCC.

13.5. In case of a reduction of the contract value, the Procuring Entity shall allow a
proportional reduction in the original performance security, provided that any such
reduction is more than ten percent (10%) and that the aggregate of such reductions
is not more than fifty percent (50%) of the original performance security.

14. Use of Contract Documents and Information

14.1. The Supplier shall not, except for purposes of performing the obligations in this
Contract, without the Procuring Entity’s prior written consent, disclose this
Contract, or any provision thereof, or any specification, plan, drawing, pattern,
sample, or information furnished by or on behalf of the Procuring Entity. Any such
disclosure shall be made in confidence and shall extend only as far as may be
necessary for purposes of such performance.

14.2. Any document, other than this Contract itself, enumerated in GCC Clause 14.1
shall remain the property of the Procuring Entity and shall be returned (all copies)
to the Procuring Entity on completion of the Supplier’s performance under this
Contract if so required by the Procuring Entity.

15. Standards
The Goods provided under this Contract shall conform to the standards mentioned in the
Section VII. Technical Specifications; and, when no applicable standard is mentioned, to
the authoritative standards appropriate to the Goods’ country of origin. Such standards
shall be the latest issued by the institution concerned.

43
16. Inspection and Tests
16.1. The Procuring Entity or its representative shall have the right to inspect and/or to
test the Goods to confirm their conformity to the Contract specifications at no extra
cost to the Procuring Entity. The SCC and Section VII. Technical Specifications
shall specify what inspections and/or tests the Procuring Entity requires and where
they are to be conducted. The Procuring Entity shall notify the Supplier in writing,
in a timely manner, of the identity of any representatives retained for these
purposes.

16.2. If applicable, the inspections and tests may be conducted on the premises of the
Supplier or its subcontractor(s), at point of delivery, and/or at the goods’ final
destination. If conducted on the premises of the Supplier or its subcontractor(s), all
reasonable facilities and assistance, including access to drawings and production
data, shall be furnished to the inspectors at no charge to the Procuring Entity. The
Supplier shall provide the Procuring Entity with results of such inspections and
tests.

16.3. The Procuring Entity or its designated representative shall be entitled to attend the
tests and/or inspections referred to in this Clause provided that the Procuring Entity
shall bear all of its own costs and expenses incurred in connection with such
attendance including, but not limited to, all traveling and board and lodging
expenses.

16.4. The Procuring Entity may reject any Goods or any part thereof that fail to pass any
test and/or inspection or do not conform to the specifications. The Supplier shall
either rectify or replace such rejected Goods or parts thereof or make alterations
necessary to meet the specifications at no cost to the Procuring Entity, and shall
repeat the test and/or inspection, at no cost to the Procuring Entity, upon giving a
notice pursuant to GCC Clause 5.

16.5. The Supplier agrees that neither the execution of a test and/or inspection of the
Goods or any part thereof, nor the attendance by the Procuring Entity or its
representative, shall release the Supplier from any warranties or other obligations
under this Contract.

17. Warranty
17.1. The Supplier warrants that the Goods supplied under the Contract are new, unused,
of the most recent or current models, and that they incorporate all recent
improvements in design and materials, except when the technical specifications
required by the Procuring Entity provides otherwise.

17.2. The Supplier further warrants that all Goods supplied under this Contract shall have
no defect, arising from design, materials, or workmanship or from any act or
omission of the Supplier that may develop under normal use of the supplied Goods
in the conditions prevailing in the country of final destination.

44
 17.3. In order to assure that manufacturing defects shall be corrected by the Supplier, a
warranty shall be required from the Supplier for a minimum period specified in the
SCC. The obligation for the warranty shall be covered by, at the Supplier’s option,
either retention money in an amount equivalent to at least one percent (1%) of every
progress payment, or a special bank guarantee equivalent to at least one percent
(1%) of the total Contract Price or other such amount if so specified in the SCC.
The said amounts shall only be released after the lapse of the warranty period
specified in the SCC; provided, however, that the Supplies delivered are free from
patent and latent defects and all the conditions imposed under this Contract have
been fully met.

17.4. The Procuring Entity shall promptly notify the Supplier in writing of any claims
arising under this warranty. Upon receipt of such notice, the Supplier shall, within
the period specified in the SCC and with all reasonable speed, repair or replace the
defective Goods or parts thereof, without cost to the Procuring Entity.

17.5. If the Supplier, having been notified, fails to remedy the defect(s) within the period
specified in GCC Clause 17.4, the Procuring Entity may proceed to take such
remedial action as may be necessary, at the Supplier’s risk and expense and without
prejudice to any other rights which the Procuring Entity may have against the
Supplier under the Contract and under the applicable law.

18. Delays in the Supplier’s Performance

18.1. Delivery of the Goods and/or performance of Services shall be made by the
Supplier in accordance with the time schedule prescribed by the Procuring Entity
in Section VII. Schedule of Requirements.

18.2. If at any time during the performance of this Contract, the Supplier or its
Subcontractor(s) should encounter conditions impeding timely delivery of the
Goods and/or performance of Services, the Supplier shall promptly notify the
Procuring Entity in writing of the fact of the delay, its likely duration and its
cause(s). As soon as practicable after receipt of the Supplier’s notice, and upon
causes provided for under GCC Clause 22, the Procuring Entity shall evaluate the
situation and may extend the Supplier’s time for performance, in which case the
extension shall be ratified by the parties by amendment of Contract.

18.3. Except as provided under GCC Clause 22, a delay by the Supplier in the
performance of its obligations shall render the Supplier liable to the imposition of
liquidated damages pursuant to GCC Clause 19, unless an extension of time is
agreed upon pursuant to GCC Clause 29 without the application of liquidated
damages.

19. Liquidated Damages

Subject to GCC Clauses 18 and 22, if the Supplier fails to satisfactorily deliver any or all
of the Goods and/or to perform the Services within the period(s) specified in this Contract

45
 inclusive of duly granted time extensions if any, the Procuring Entity shall, without
prejudice to its other remedies under this Contract and under the applicable law, deduct
from the Contract Price, as liquidated damages, the applicable rate of one tenth (1/10) of
one (1) percent of the cost of the unperformed portion for every day of delay until actual
delivery or performance. The maximum deduction shall be ten percent (10%) of the amount
of contract. Once the maximum is reached, the Procuring Entity may rescind or terminate
the Contract pursuant to GCC Clause 23, without prejudice to other courses of action and
remedies open to it.

20. Settlement of Disputes

20.1. If any dispute or difference of any kind whatsoever shall arise between the
Procuring Entity and the Supplier in connection with or arising out of this Contract,
the parties shall make every effort to resolve amicably such dispute or difference
by mutual consultation.

20.2. If after thirty (30) days, the parties have failed to resolve their dispute or difference
by such mutual consultation, then either the Procuring Entity or the Supplier may
give notice to the other party of its intention to commence arbitration, as hereinafter
provided, as to the matter in dispute, and no arbitration in respect of this matter may
be commenced unless such notice is given.

20.3. Any dispute or difference in respect of which a notice of intention to commence

arbitration has been given in accordance with this Clause shall be settled by
arbitration. Arbitration may be commenced prior to or after delivery of the Goods
under this Contract.

20.4. In the case of a dispute between the Procuring Entity and the Supplier, the dispute
shall be resolved in accordance with Republic Act 9285 (“R.A. 9285”), otherwise
known as the “Alternative Dispute Resolution Act of 2004.”

20.5. Notwithstanding any reference to arbitration herein, the parties shall continue to
perform their respective obligations under the Contract unless they otherwise agree;
and the Procuring Entity shall pay the Supplier any monies due the Supplier.

21. Liability of the Supplier

21.1. The Supplier’s liability under this Contract shall be as provided by the laws of the
Republic of the Philippines, subject to additional provisions, if any, set forth in the
SCC.

21.2. Except in cases of criminal negligence or willful misconduct, and in the case of
infringement of patent rights, if applicable, the aggregate liability of the Supplier
to the Procuring Entity shall not exceed the total Contract Price, provided that this
limitation shall not apply to the cost of repairing or replacing defective equipment.

22. Force Majeure

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 22.1. The Supplier shall not be liable for forfeiture of its performance security, liquidated
damages, or termination for default if and to the extent that the Supplier’s delay in
performance or other failure to perform its obligations under the Contract is the
result of a force majeure.

22.2. For purposes of this Contract the terms “force majeure” and “fortuitous event” may
be used interchangeably. In this regard, a fortuitous event or force majeure shall
be interpreted to mean an event which the Supplier could not have foreseen, or
which though foreseen, was inevitable. It shall not include ordinary unfavorable
weather conditions; and any other cause the effects of which could have been
avoided with the exercise of reasonable diligence by the Supplier. Such events may
include, but not limited to, acts of the Procuring Entity in its sovereign capacity,
wars or revolutions, fires, floods, epidemics, quarantine restrictions, and freight
embargoes.

22.3. If a force majeure situation arises, the Supplier shall promptly notify the Procuring
Entity in writing of such condition and the cause thereof. Unless otherwise directed
by the Procuring Entity in writing, the Supplier shall continue to perform its
obligations under the Contract as far as is reasonably practical, and shall seek all
reasonable alternative means for performance not prevented by the force majeure.

23. Termination for Default

23.1. The Procuring Entity shall terminate this Contract for default when any of the
following conditions attends its implementation:

(a) Outside of force majeure, the Supplier fails to deliver or perform any or all
of the Goods within the period(s) specified in the contract, or within any
extension thereof granted by the Procuring Entity pursuant to a request
made by the Supplier prior to the delay, and such failure amounts to at least
ten percent (10%) of the contact price;

(b) As a result of force majeure, the Supplier is unable to deliver or perform

any or all of the Goods, amounting to at least ten percent (10%) of the
contract price, for a period of not less than sixty (60) calendar days after
receipt of the notice from the Procuring Entity stating that the circumstance
of force majeure is deemed to have ceased; or

(c) The Supplier fails to perform any other obligation under the Contract.

23.2. In the event the Procuring Entity terminates this Contract in whole or in part, for
any of the reasons provided under GCC Clauses 23 to 26, the Procuring Entity may
procure, upon such terms and in such manner as it deems appropriate, Goods or
Services similar to those undelivered, and the Supplier shall be liable to the
Procuring Entity for any excess costs for such similar Goods or Services. However,
the Supplier shall continue performance of this Contract to the extent not
terminated.

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 23.3. In case the delay in the delivery of the Goods and/or performance of the Services
exceeds a time duration equivalent to ten percent (10%) of the specified contract
time plus any time extension duly granted to the Supplier, the Procuring Entity may
terminate this Contract, forfeit the Supplier's performance security and award the
same to a qualified Supplier.

24. Termination for Insolvency

The Procuring Entity shall terminate this Contract if the Supplier is declared bankrupt or
insolvent as determined with finality by a court of competent jurisdiction. In this event,
termination will be without compensation to the Supplier, provided that such termination
will not prejudice or affect any right of action or remedy which has accrued or will accrue
thereafter to the Procuring Entity and/or the Supplier.

25. Termination for Convenience

25.1. The Procuring Entity may terminate this Contract, in whole or in part, at any time
for its convenience. The HoPE may terminate a contract for the convenience of the
Government if he has determined the existence of conditions that make Project
Implementation economically, financially or technically impractical and/or
unnecessary, such as, but not limited to, fortuitous event(s) or changes in law and
national government policies.

25.2. The Goods that have been delivered and/or performed or are ready for delivery or
performance within thirty (30) calendar days after the Supplier’s receipt of Notice
to Terminate shall be accepted by the Procuring Entity at the contract terms and
prices. For Goods not yet performed and/or ready for delivery, the Procuring Entity
may elect:

(a) to have any portion delivered and/or performed and paid at the contract
terms and prices; and/or

(b) to cancel the remainder and pay to the Supplier an agreed amount for
partially completed and/or performed goods and for materials and parts
previously procured by the Supplier.

25.3. If the Supplier suffers loss in its initial performance of the terminated contract, such
as purchase of raw materials for goods specially manufactured for the Procuring
Entity which cannot be sold in open market, it shall be allowed to recover partially
from this Contract, on a quantum meruit basis. Before recovery may be made, the
fact of loss must be established under oath by the Supplier to the satisfaction of the
Procuring Entity before recovery may be made.

26. Termination for Unlawful Acts

26.1. The Procuring Entity may terminate this Contract in case it is determined prima
facie that the Supplier has engaged, before or during the implementation of this

48
 Contract, in unlawful deeds and behaviors relative to contract acquisition and
implementation. Unlawful acts include, but are not limited to, the following:

(a) Corrupt, fraudulent, and coercive practices as defined in ITB Clause 3.1(a);

(b) Drawing up or using forged documents;

(c) Using adulterated materials, means or methods, or engaging in production

contrary to rules of science or the trade; and

(d) Any other act analogous to the foregoing.

27. Procedures for Termination of Contracts

27.1. The following provisions shall govern the procedures for termination of this
Contract:

(a) Upon receipt of a written report of acts or causes which may constitute
ground(s) for termination as aforementioned, or upon its own initiative, the
Implementing Unit shall, within a period of seven (7) calendar days, verify
the existence of such ground(s) and cause the execution of a Verified
Report, with all relevant evidence attached;

(b) Upon recommendation by the Implementing Unit, the HoPE shall terminate
this Contract only by a written notice to the Supplier conveying the
termination of this Contract. The notice shall state:

(i) that this Contract is being terminated for any of the ground(s) afore-
mentioned, and a statement of the acts that constitute the ground(s)
constituting the same;

(ii) the extent of termination, whether in whole or in part;

(iii) an instruction to the Supplier to show cause as to why this Contract

should not be terminated; and

(iv) special instructions of the Procuring Entity, if any.

(c) The Notice to Terminate shall be accompanied by a copy of the Verified

Report;

(d) Within a period of seven (7) calendar days from receipt of the Notice of
Termination, the Supplier shall submit to the HoPE a verified position paper
stating why this Contract should not be terminated. If the Supplier fails to
show cause after the lapse of the seven (7) day period, either by inaction or
by default, the HoPE shall issue an order terminating this Contract;

49
 (e) The Procuring Entity may, at any time before receipt of the Supplier’s
verified position paper described in item (d) above withdraw the Notice to
Terminate if it is determined that certain items or works subject of the notice
had been completed, delivered, or performed before the Supplier’s receipt
of the notice;

(f) Within a non-extendible period of ten (10) calendar days from receipt of the
verified position paper, the HoPE shall decide whether or not to terminate
this Contract. It shall serve a written notice to the Supplier of its decision
and, unless otherwise provided, this Contract is deemed terminated from
receipt of the Supplier of the notice of decision. The termination shall only
be based on the ground(s) stated in the Notice to Terminate;

(g) The HoPE may create a Contract Termination Review Committee (CTRC)
to assist him in the discharge of this function. All decisions recommended
by the CTRC shall be subject to the approval of the HoPE; and

(h) The Supplier must serve a written notice to the Procuring Entity of its
intention to terminate the contract at least thirty (30) calendar days before
its intended termination. The Contract is deemed terminated if it is not
resumed in thirty (30) calendar days after the receipt of such notice by the
Procuring Entity.

28. Assignment of Rights

The Supplier shall not assign his rights or obligations under this Contract, in whole or in
part, except with the Procuring Entity’s prior written consent.

29. Contract Amendment

Subject to applicable laws, no variation in or modification of the terms of this Contract
shall be made except by written amendment signed by the parties.

30. Application
These General Conditions shall apply to the extent that they are not superseded by
provisions of other parts of this Contract.

50
 Section V. Special Conditions of Contract
GCC Clause
1,1(g) The Procuring Entity is Commission on Audit
1.1(i) The Supplier is [to be inserted at the time of contract award].
1.1(j) The Funding Source is Commission on Audit General Fund in the
amount of Twenty Four Million Eight Hundred Thousand Pesos
(P24,800 ,000.00).
1.1(k) The Project Site is COA Central Office, Commonwealth Avenue,
Quezon City.
2.1 No further instructions.
5.1 The Procuring Entity’s address for Notices is:
Commission on Audit, Commonwealth Avenue, Diliman, Quezon
City
Contact Person : c/o Director ELENO P. MALESIDO, III
Head, BAC Secretariat
Fax and Telephone No.: 9317582 / 9319302
The Supplier’s address for the Notices is:
______________________________________
______________________________________
______________________________________
6.2 Delivery and Documents –

For purposes of the Contract, “EXW,” “FOB,” “FCA,” “CIF,” “CIP,”

“DDP” and other trade terms used to describe the obligations of the
parties shall have the meanings assigned to them by the current edition
of INCOTERMS published by the International Chamber of
Commerce, Paris. The Delivery terms of this Contract shall be as
follows:

For Goods Supplied from Abroad, state “The delivery terms applicable
to the Contract are DDP delivered [insert place of destination]. In
accordance with INCOTERMS.”

For Goods Supplied from Within the Philippines, state “The delivery
terms applicable to this Contract are delivered [insert place of
destination]. Risk and title will pass from the Supplier to the Procuring
Entity upon receipt and final acceptance of the Goods at their final
destination.”

Delivery of the Goods shall be made by the Supplier in accordance with

the terms specified in Section VI. Schedule of Requirements. The
details of shipping and/or other documents to be furnished by the
Supplier are as follows:

51
For Goods supplied from within the Philippines:

Upon delivery of the Goods to the Project Site, the Supplier shall notify
the Procuring Entity and present the following documents to the
Procuring Entity:

(i) Original and four copies of the Supplier’s invoice showing

Goods’ description, quantity, unit price, and total amount;
(ii) Original and four copies delivery receipt/note, railway receipt,
or truck receipt;
(iii) Original Supplier’s factory inspection report;
(iv) Original and four copies of the Manufacturer’s and/or
Supplier’s warranty certificate;
(v) Original and four copies of the certificate of origin (for
imported Goods);
(vi) Delivery receipt detailing number and description of items
received signed by the authorized receiving personnel;
(vii) Certificate of Acceptance/Inspection Report signed by the
Procuring Entity’s representative at the Project Site; and
(viii) Four copies of the Invoice Receipt for Property signed by the
Procuring Entity’s representative at the Project Site.

For Goods supplied from abroad:

Upon shipment, the Supplier shall notify the Procuring Entity and the
insurance company by cable the full details of the shipment, including
Contract Number, description of the Goods, quantity, vessel, bill of
lading number and date, port of loading, date of shipment, port of
discharge etc. Upon delivery to the Project Site, the Supplier shall
notify the Procuring Entity and present the following documents as
applicable with the documentary requirements of any letter of credit
issued taking precedence:

(i) Original and four copies of the Supplier’s invoice showing

Goods’ description, quantity, unit price, and total amount;
(ii) Original and four copies of the negotiable, clean shipped on
board bill of lading marked “freight pre-paid” and five copies
of the non-negotiable bill of lading ;
(iii) Original Supplier’s factory inspection report;
(iv) Original and four copies of the Manufacturer’s and/or
Supplier’s warranty certificate;
(v) Original and four copies of the certificate of origin (for
imported Goods);

52
(vi) Delivery receipt detailing number and description of items
received signed by the Procuring Entity’s representative at the
Project Site;
(vii) Certificate of Acceptance/Inspection Report signed by the
Procuring Entity’s representative at the Project Site; and
(viii) Four copies of the Invoice Receipt for Property signed by the
Procuring Entity’s representative at the Project Site.
For purposes of this Clause the Procuring Entity’s Representative at the
Project Site is Director Eleno P. Malesido, III, Head, BAC Secretariat

Incidental Services –

The Supplier is required to provide all of the following services,

including additional services, if any, specified in Section VI. Schedule
of Requirements:

Select appropriate requirements and delete the rest.

(a) performance or supervision of on-site assembly and/or start-up

of the supplied Goods;
(b) furnishing of tools required for assembly and/or maintenance of
the supplied Goods;
(c) furnishing of a detailed operations and maintenance manual for
each appropriate unit of the supplied Goods;
(d) performance or supervision or maintenance and/or repair of the
supplied Goods, for a period of time agreed by the parties,
provided that this service shall not relieve the Supplier of any
warranty obligations under this Contract; and

The Contract price for the Goods shall include the prices charged by
the Supplier for incidental services and shall not exceed the prevailing
rates charged to other parties by the Supplier for similar services.

Packaging –

The Supplier shall provide such packaging of the Goods as is required

to prevent their damage or deterioration during transit to their final
destination, as indicated in this Contract. The packaging shall be
sufficient to withstand, without limitation, rough handling during
transit and exposure to extreme temperatures, salt and precipitation
during transit, and open storage. Packaging case size and weights shall
take into consideration, where appropriate, the remoteness of the
GOODS’ final destination and the absence of heavy handling facilities
at all points in transit.

53
The packaging, marking, and documentation within and outside the
packages shall comply strictly with such special requirements as shall
be expressly provided for in the Contract, including additional
requirements, if any, specified below, and in any subsequent
instructions ordered by the Procuring Entity.

The outer packaging must be clearly marked on at least four (4) sides
as follows:
Name of the Procuring Entity
Name of the Supplier
Contract Description
Final Destination
Gross weight
Any special lifting instructions
Any special handling instructions
Any relevant HAZCHEM classifications

A packaging list identifying the contents and quantities of the package

is to be placed on an accessible point of the outer packaging if practical.
If not practical the packaging list is to be placed inside the outer
packaging but outside the secondary packaging.

Insurance –

The Goods supplied under this Contract shall be fully insured by the
Supplier in a freely convertible currency against loss or damage
incidental to manufacture or acquisition, transportation, storage, and
delivery. The Goods remain at the risk and title of the Supplier until
their final acceptance by the Procuring Entity.

Transportation –

Where the Supplier is required under Contract to deliver the Goods

CIF, CIP or DDP, transport of the Goods to the port of destination or
such other named place of destination in the Philippines, as shall be
specified in this Contract, shall be arranged and paid for by the
Supplier, and the cost thereof shall be included in the Contract Price.

Where the Supplier is required under this Contract to transport the

Goods to a specified place of destination within the Philippines, defined
as the Project Site, transport to such place of destination in the
Philippines, including insurance and storage, as shall be specified in
this Contract, shall be arranged by the Supplier, and related costs shall
be included in the Contract Price.

54
 Where the Supplier is required under Contract to deliver the Goods
CIF, CIP or DDP, Goods are to be transported on carriers of Philippine
registry. In the event that no carrier of Philippine registry is available,
Goods may be shipped by a carrier which is not of Philippine registry
provided that the Supplier obtains and presents to the Procuring Entity
certification to this effect from the nearest Philippine consulate to the
port of dispatch. In the event that carriers of Philippine registry are
available but their schedule delays the Supplier in its performance of
this Contract the period from when the Goods were first ready for
shipment and the actual date of shipment the period of delay will be
considered force majeure in accordance with GCC Clause 22.

The Procuring Entity accepts no liability for the damage of Goods

during transit other than those prescribed by INCOTERMS for DDP
Deliveries. In the case of Goods supplied from within the Philippines
or supplied by domestic Suppliers risk and title will not be deemed to
have passed to the Procuring Entity until their receipt and final
acceptance at the final destination.

Patent Rights –

The Supplier shall indemnify the Procuring Entity against all

third-party claims of infringement of patent, trademark, or industrial
design rights arising from use of the Goods or any part thereof.
10.4 Not applicable.
10.5 Payment using LC is not allowed.
11.3 Maintain the GCC Clause.
13.4(c) No further instructions.
16.1 The inspection to be conducted is appropriate for the Goods as per
Schedule of Requirements and Technical Specifications (Section VI
and VII). A Pre-Delivery Inspection shall be performed by two COA
GSO-Motorpool Representatives and shall be conducted at the
assembly plant. Final Inspection shall be conducted in COA before
acceptance of the items.
17.3 If the Goods pertain to Expendable Supplies: Three (3) months after
acceptance by the Procuring Entity of the delivered Goods or after the
Goods are consumed, whichever is earlier.

If the Goods pertain to Non-expendable Supplies: One (1) year after

acceptance by the Procuring Entity of the delivered Goods.
17.4 The period for correction of defects in the warranty period is not more
than seven (7) days.
21.1 State here “No additional provision.” or, if the Supplier is a joint
venture, “All partners to the joint venture shall be jointly and severally
liable to the Procuring Entity.”

55
 Section VI. Schedule of Requirements
The delivery schedule expressed as weeks/months stipulates hereafter a delivery date which is the
date of delivery to the project site.

Lot Delivered,
Description Quantity
No. Weeks/Months

1 Mini Bus, Brand New, at least 29-seater, Air- 2units Shall not exceed
conditioned, Diesel one hundred twenty
Engine : Diesel fed, Direct (120) calendar days
Injection, Turbo-Charged upon Supplier’s
and Intercooled, 4-cycle, receipt of the Notice
4-cylinder, In-Line, to Proceed
Overhead Valve
Engine Displacement : 4,000-5,000 cc
Rated Output (main engine) : 130-180Hp
Exhaust Emission Standard : Euro IV Compliant
Fuel Tank Capacity : 90 liters, minimum
Transmission : Manual; five (5) forward
and one (1) Reverse speed
Steering System : Power steering system
Brakes : Ventilated Disc or Drum
for front and Drum for
rear, with exhaust brake
Suspension : Front and Rear,
Manufacturer’s standard
Wheels and Tires : Six (6) Wheeler,
manufacturer’s standard;
plus one (1) spare wheel
and tire
Body : Completely Built Unit,
single deck, non-rivet
construction, all steel
(manufacturer’s standard,
submit side, floor, and
roof structure plans)

Engine, Frame and

Chassis technology must
originate from G8
members

56
 Dimension: Manufacturer’s
Standard
Service Door : Automatically operated at
front
Window : Sliding type
Seating Arrangement : Forward facing seats
Air-conditioning and : Direct drive type driven
Ventilator by main engine
Accessories and : Audio Video Accessories
Attachments - With DVD console,
Stereo and Speakers
and PA System
- Rear view camera

Safety
- With safety belts
- With one (1) 10 lbs fire
extinguisher
Paint : COA color and design
Warranty : three (3) years or 120,000
kms, whichever comes
first
Others : Company rust-proofing
with mud guards,
standard tools (consisting
of: 4 ton capacity jack - 1
piece; ball peen hammer
– 1 piece; screw driver
philips (big) – 1 piece;
screw driver philips
(small) – 1 piece; screw
driver flat (big) – 1 piece;
screw driver flat (small) –
1 piece; double wrench 27
x 24 – 1 piece; double
open wrench 22 x 24 – 1
piece; double open
wrench 17 x 19 – 1 piece;
double open wrench 14 x
17 – 1 piece; double open
wrench 14 x 12 – 1 piece;
double open wrench 8 x
10 – 1 piece; tool bag – 1
piece; adjustable wrench
250mm – 1 piece;
mechanical plier – 1
piece) with Early
Warning Device, seat
covers, tint and matting,
inclusive of three (3) year

57
 LTO registration, GSIS
insurance, with Service
Centers in Metro Manila
and in Luzon, one (1) day
orientation seminar for
drivers

2 Passenger Bus, Brand New, at least 60-seater, Air- 2 units Shall not exceed
conditioned, Diesel one hundred twenty
Engine : Diesel fed, Direct (120) calendar days
Injection, Turbo-Charged upon Supplier’s
and Intercooled, Water- receipt of the Notice
cooled, 6-cylinder, In- to Proceed
Line, Overhead Valve
Engine Displacement : 7500 cc, minimum
Rated Output (main engine) : 250 Hp, minimum
Exhaust Emission Standard : Euro IV Compliant
Fuel Tank Capacity : 400 liters, minimum
Transmission : Manual; six (6) forward
and one (1) Reverse
speed, Floor Shift Lever
Control
Steering System : Power steering system
Brakes : Full air dual circuits
service brake with leading
and trailing shoes for
front and rear
Suspension : Air suspension or leaf
springs, with shock
absorbers and stabilizer
Wheels and Tires : Manufacturer’s standard
with
one (1) spare wheel and
tire with wind-up carrier
shall be included
Body : Locally Fabricated, single
deck, non-rivet
construction, all steel
(manufacturer’s standard,
submit side, floor, and
roof structure plans)

Engine, Frame and

Chassis technology must
originate from G8
members

Dimension
Length: 12.0 meters,
minimum

58
 Width : 2.4 meters,
minimum
Height : 3.0 meters,
minimum
Service Door : Folding; automatically
operated at front
Window : Fixed side window with
sliding upper front and
upper rear design which
provides an open window
alternative for buses in
case of air-conditioning
system malfunction
Windshield : Front windshield shall be
two (2) – panel/pieces
type curvex safety clear
glass
Seating Arrangement : 2 x 3 seating arrangement,
forward facing seats
Air-conditioning and : Split type powered by
Ventilator sub-engine
Accessories and : Audio Video Accessories
Attachments - With two (2) units
LCD TV monitor,
DVD console,
Inverter, Stereo and
Speakers and PA
System
- WiFi ready
- Rear view camera
Safety
- With safety belts
- With one (1) 10 lbs fire
extinguisher
Paint : COA color and design
Warranty : three (3) years or 120,000
kms, whichever comes
first
Others : Company rust-proofing
with mud guards,
standard tools (consisting
of: 10 ton capacity jack -
1 piece; Oil sub-assy;
grease gun – 1 piece; ball
peen hammer – 1 piece;
mechanical plier – 1
piece; screw driver – 1
piece; combination Philip
screw driver – 1 piece;
angle wrench – 1 piece;

59
 open wrench 22 x 24 – 1
piece; open wrench 17 x
19 – 1 piece; open wrench
14 x 17 – 1 piece; open
wrench 10 x 12 – 1 piece;
open wrench 8 x 10 – 1
piece; tire wrench handle
with extension – 1 piece;
hand oil jack – 1 piece;
tool bag – 1 piece;
shifting lever knob – 1
piece; T key – 1 piece)
with Early Warning
Device, seat covers, tint
and matting, with
emergency exit door,
inclusive of three (3) year
LTO registration, GSIS
insurance, with Service
Centers in Metro Manila
and in Luzon, one (1) day
orientation seminar for
drivers

Mandatory Requirements:

a. Copy of the Certificate of Authorized/Sole Dealership by the Manufacturer/Distributors,

whichever is applicable to the bidder.
b. One (1) copy each of Service/Maintenance Manual and Parts Manual to be included per
unit ordered
c. Warranty Certificate
d. Manufacturer must have own assembly plant in the Philippines
e. Manufacturer must have an “After-Sales Service/Parts Program,” and/or authorized
Dealer/Distributor must have access to the manufacturer’s “After-Sales Service/Parts
Program,” whichever is applicable
f. Service Centers in Metro Manila and in Luzon with qualified mechanics and availability of
Original Equipment or Original Equipment Manufacturer parts – at least five (5) in Metro
Manila
g. Certificate from the Manufacturer that Engine, Frame and Chassis technology were
originated from G8 members, and other supporting documents related thereto

Submitted by:

Signature over printed name of the Bidder’s authorized representative

60
 Section VII. Technical Specifications
Indicate here the
brand name,
Statement model and
of detailed
Lot
Specifications Compliance specification with
No.
(Please see supporting
Note below) brochure and
related literature,
if any
1 Mini Bus, Brand New, at least 29-seater, Air-
conditioned, Diesel
Engine : Diesel fed, Direct
Injection, Turbo-Charged
and Intercooled, 4-cycle,
4-cylinder, In-Line,
Overhead Valve
Engine Displacement : 4,000-5,000 cc
Rated Output (main engine) : 130-180Hp
Exhaust Emission Standard : Euro IV Compliant
Fuel Tank Capacity : 90 liters, minimum
Transmission : Manual; five (5) forward
and one (1) Reverse speed
Steering System : Power steering system
Brakes : Ventilated Disc or Drum
for front and Drum for
rear, with exhaust brake
Suspension : Front and Rear,
Manufacturer’s standard
Wheels and Tires : Six (6) Wheeler,
manufacturer’s standard;
plus one (1) spare wheel
and tire
Body : Completely Built Unit,
single deck, non-rivet
construction, all steel
(manufacturer’s standard,
submit side, floor, and
roof structure plans)

Engine, Frame and

Chassis technology must
originate from G8
members

Dimension:
Manufacturer’s Standard

61
Service Door : Automatically operated at
front
Window : Sliding type
Seating Arrangement : Forward facing seats
Air-conditioning and : Direct drive type driven
Ventilator by main engine
Accessories and : Audio Video Accessories
Attachments - With DVD console,
Stereo and Speakers
and PA System
- Rear view camera

Safety
- With safety belts
- With one (1) 10 lbs fire
extinguisher
Paint : COA color and design
Warranty : three (3) years or 120,000
kms, whichever comes
first
Others : Company rust-proofing
with mud guards,
standard tools (consisting
of: 4 ton capacity jack - 1
piece; ball peen hammer
– 1 piece; screw driver
philips (big) – 1 piece;
screw driver philips
(small) – 1 piece; screw
driver flat (big) – 1 piece;
screw driver flat (small) –
1 piece; double wrench 27
x 24 – 1 piece; double
open wrench 22 x 24 – 1
piece; double open
wrench 17 x 19 – 1 piece;
double open wrench 14 x
17 – 1 piece; double open
wrench 14 x 12 – 1 piece;
double open wrench 8 x
10 – 1 piece; tool bag – 1
piece; adjustable wrench
250mm – 1 piece;
mechanical plier – 1
piece) with Early
Warning Device, seat
covers, tint and matting,
inclusive of three (3) year
LTO registration, GSIS
insurance, with Service

62
 Centers in Metro Manila
and in Luzon, one (1) day
orientation seminar for
drivers
2 Passenger Bus, Brand New, at least 60-seater, Air-
conditioned, Diesel
Engine : Diesel fed, Direct
Injection, Turbo-Charged
and Intercooled, Water-
cooled, 6-cylinder, In-
Line, Overhead Valve
Engine Displacement : 7500 cc, minimum
Rated Output (main engine) : 250 Hp, minimum
Exhaust Emission Standard : Euro IV Compliant
Fuel Tank Capacity : 400 liters, minimum
Transmission : Manual; six (6) forward
and one (1) Reverse
speed, Floor Shift Lever
Control
Steering System : Power steering system
Brakes : Full air dual circuits
service brake with leading
and trailing shoes for
front and rear
Suspension : Air suspension or leaf
springs, with shock
absorbers and stabilizer
Wheels and Tires : Manufacturer’s standard
with
one (1) spare wheel and
tire with wind-up carrier
shall be included
Body : Locally Fabricated, single
deck, non-rivet
construction, all steel
(manufacturer’s standard,
submit side, floor, and
roof structure plans)

Engine, Frame and

Chassis technology must
originate from G8
members

Dimension
Length: 12.0 meters,
minimum
Width : 2.4 meters,
minimum

63
 Height : 3.0 meters,
minimum
Service Door : Folding; automatically
operated at front
Window : Fixed side window with
sliding upper front and
upper rear design which
provides an open window
alternative for buses in
case of air-conditioning
system malfunction
Windshield : Front windshield shall be
two (2) – panel/pieces
type curvex safety clear
glass
Seating Arrangement : 2 x 3 seating arrangement,
forward facing seats
Air-conditioning and : Split type powered by
Ventilator sub-engine
Accessories and : Audio Video Accessories
Attachments - With two (2) units
LCD TV monitor,
DVD console,
Inverter, Stereo and
Speakers and PA
System
- WiFi ready
- Rear view camera
Safety
- With safety belts
- With one (1) 10 lbs fire
extinguisher
Paint : COA color and design
Warranty : three (3) years or 120,000
kms, whichever comes
first
Others : Company rust-proofing
with mud guards,
standard tools (consisting
of: 10 ton capacity jack -
1 piece; Oil sub-assy;
grease gun – 1 piece; ball
peen hammer – 1 piece;
mechanical plier – 1
piece; screw driver – 1
piece; combination Philip
screw driver – 1 piece;
angle wrench – 1 piece;
open wrench 22 x 24 – 1
piece; open wrench 17 x

64
 19 – 1 piece; open wrench
14 x 17 – 1 piece; open
wrench 10 x 12 – 1 piece;
open wrench 8 x 10 – 1
piece; tire wrench handle
with extension – 1 piece;
hand oil jack – 1 piece;
tool bag – 1 piece;
shifting lever knob – 1
piece; T key – 1 piece)
with Early Warning
Device, seat covers, tint
and matting, with
emergency exit door,
inclusive of three (3) year
LTO registration, GSIS
insurance, with Service
Centers in Metro Manila
and in Luzon, one (1) day
orientation seminar for
drivers

Note:
Bidders must state in the Statement of Compliance column either “Comply” or “Not
Comply” against each of the individual parameters of each Specification stating the
corresponding performance parameter of the equipment offered. Statements of “Comply”
or “Not Comply” must be supported by evidence in a Bidders Bid and cross-referenced to
that evidence. Evidence shall be in the form of manufacturer’s un-amended sales literature,
unconditional statements of specification and compliance issued by the manufacturer,
samples, independent test data etc., as appropriate. A statement that is not supported by
evidence or is subsequently found to be contradicted by the evidence presented will render
the Bid under evaluation liable for rejection. A statement either in the Bidders statement of
compliance or the supporting evidence that is found to be false either during Bid evaluation,
post-qualification or the execution of the Contract may be regarded as fraudulent and
render the Bidder or supplier liable for prosecution subject to the provisions of ITB Clause
3.1(a)(ii) and/or GCC Clause 2.1(a)(ii)

Submitted by:

Signature over printed name of the Bidder’s authorized representative

65
 Section VIII. Bidding Forms
Bid Form

Date:
Invitation to Bid1 No:

To: [name and address of Procuring Entity]

Gentlemen and/or Ladies:

Having examined the Bidding Documents including Bid Bulletin Numbers [insert numbers],
the receipt of which is hereby duly acknowledged, we, the undersigned, offer to
[supply/deliver/perform] [description of the Goods] in conformity with the said Bidding
Documents for the sum of [total Bid amount in words and figures] or such other sums as may be
ascertained in accordance with the Detailed Breakdown of Bid Proposal and Schedule of Prices
attached herewith and made part of this Bid.

We undertake, if our Bid is accepted, to deliver the goods in accordance with the delivery
schedule specified in the Schedule of Requirements.

If our Bid is accepted, we undertake to provide a performance security in the form, amounts,
and within the times specified in the Bidding Documents.

We agree to abide by this Bid for the Bid Validity Period specified in BDS provision for ITB
Clause 18.2 and it shall remain binding upon us and may be accepted at any time before the
expiration of that period.

Commissions or gratuities, if any, paid or to be paid by us to agents relating to this Bid, and
to contract execution if we are awarded the contract, are listed below:2

Name and address Amount and Purpose of

of agent Currency Commission or gratuity

(if none, state “None”)

1 If ADB, JICA and WB funded projects, use IFB.

2 Applicable only if the Funding Source is the ADB, JICA or WB.

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 Until a formal Contract is prepared and executed, this Bid, together with your written
acceptance thereof and your Notice of Award, shall be binding upon us.

We understand that you are not bound to accept the Lowest Calculated Bid or any Bid you
may receive.

We certify/confirm that we comply with the eligibility requirements as per ITB Clause 5 of
the Bidding Documents.

We likewise certify/confirm that the undersigned, [for sole proprietorships, insert: as the
owner and sole proprietor or authorized representative of Name of Bidder, has the full power and
authority to participate, submit the bid, and to sign and execute the ensuing contract, on the latter’s
behalf for the Name of Project of the Name of the Procuring Entity] [for partnerships,
corporations, cooperatives, or joint ventures, insert: is granted full power and authority by the
Name of Bidder, to participate, submit the bid, and to sign and execute the ensuing contract on the
latter’s behalf for Name of Project of the Name of the Procuring Entity].

We acknowledge that failure to sign each and every page of this Bid Form, including the
attached Schedule of Prices, shall be a ground for the rejection of our bid.

Dated this ________________ day of ________________ 20______.

[signature] [in the capacity of]

Duly authorized to sign Bid for and on behalf of ___________________________

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 For Goods Offered From Abroad

Name of Bidder . Invitation to Bid3 Number __. Page of __.

1 2 3 4 5 6 7 8 9
Item Description Country Quantity Unit price CIF port of Total CIF or Unit Price Unit price Total Price
of origin entry (specify port) or CIP price per Delivered Duty Delivered Duty delivered DDP
CIP named place item Unpaid (DDU) Paid (DDP) (col 4 x 8)
(specify border point or (col. 4 x 5)
place of destination)

3 If ADB, JICA and WB funded projects, use IFB.

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 For Goods Offered From Within the Philippines

Name of Bidder . Invitation to Bid4 Number . Page of .

1 2 3 4 5 6 7 8 9 10
Item Description Country Quantity Unit price EXW Cost of local Total price Unit prices per Sales and other Total Price
of origin per item labor, raw EXW per item item final taxes payable delivered Final
material, and (cols. 4 x 5) destination and per item if Destination
component2 unit price of Contract is (col 8 + 9) x 4
other incidental awarded
services

4 If ADB, JICA and WB funded projects, use IFB.

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 Contract Agreement Form

THIS AGREEMENT made the _____ day of __________ 20_____ between [name of
PROCURING ENTITY] of the Philippines (hereinafter called “the Entity”) of the one part and
[name of Supplier] of [city and country of Supplier] (hereinafter called “the Supplier”) of the other
part:

WHEREAS the Entity invited Bids for certain goods and ancillary services, viz., [brief
description of goods and services] and has accepted a Bid by the Supplier for the supply of those
goods and services in the sum of [contract price in words and figures] (hereinafter called “the
Contract Price”).

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. In this Agreement words and expressions shall have the same meanings as are respectively
assigned to them in the Conditions of Contract referred to.

2. The following documents shall be deemed to form and be read and construed as part of this
Agreement, viz.:

(a) the Bid Form and the Cost Distribution submitted by the Bidder;
(b) the Schedule of Requirements;
(c) the Technical Specifications;
(d) the General Conditions of Contract;
(e) the Special Conditions of Contract; and
(f) the Entity’s Notification of Award.

3. In consideration of the payments to be made by the Entity to the Supplier as hereinafter

mentioned, the Supplier hereby covenants with the Entity to provide the goods and services and to
remedy defects therein in conformity in all respects with the provisions of the Contract

4. The Entity hereby covenants to pay the Supplier in consideration of the provision of the
goods and services and the remedying of defects therein, the Contract Price or such other sum as
may become payable under the provisions of the contract at the time and in the manner prescribed
by the contract.

IN WITNESS whereof the parties hereto have caused this Agreement to be executed in
accordance with the laws of the Republic of the Philippines on the day and year first above written.

Signed, sealed, delivered by the (for the Entity)

Signed, sealed, delivered by the (for the Supplier).

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 Omnibus Sworn Statement

REPUBLIC OF THE PHILIPPINES )

CITY/MUNICIPALITY OF ______ ) S.S.

AFFIDAVIT

I, [Name of Affiant], of legal age, [Civil Status], [Nationality], and residing at [Address of
Affiant], after having been duly sworn in accordance with law, do hereby depose and state that:

1. Select one, delete the other:

If a sole proprietorship: I am the sole proprietor of [Name of Bidder] with office address
at [address of Bidder];

If a partnership, corporation, cooperative, or joint venture: I am the duly authorized and

designated representative of [Name of Bidder] with office address at [address of Bidder];

2. Select one, delete the other:

If a sole proprietorship: As the owner and sole proprietor of [Name of Bidder], I have full
power and authority to do, execute and perform any and all acts necessary to represent it
in the bidding for [Name of the Project] of the [Name of the Procuring Entity];

If a partnership, corporation, cooperative, or joint venture: I am granted full power and

authority to do, execute and perform any and all acts necessary and/or to represent the
[Name of Bidder] in the bidding as shown in the attached [state title of attached document
showing proof of authorization (e.g., duly notarized Secretary’s Certificate issued by the
corporation or the members of the joint venture)];

3. [Name of Bidder] is not “blacklisted” or barred from bidding by the Government of the
Philippines or any of its agencies, offices, corporations, or Local Government Units,
foreign government/foreign or international financing institution whose blacklisting rules
have been recognized by the Government Procurement Policy Board;

4. Each of the documents submitted in satisfaction of the bidding requirements is an authentic

copy of the original, complete, and all statements and information provided therein are true
and correct;

5. [Name of Bidder] is authorizing the Head of the Procuring Entity or its duly authorized
representative(s) to verify all the documents submitted;

6. Select one, delete the rest:

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 If a sole proprietorship: I am not related to the Head of the Procuring Entity, members of
the Bids and Awards Committee (BAC), the Technical Working Group, and the BAC
Secretariat, the head of the Project Management Office or the end-user unit, and the project
consultants by consanguinity or affinity up to the third civil degree;

If a partnership or cooperative: None of the officers and members of [Name of Bidder] is

related to the Head of the Procuring Entity, members of the Bids and Awards Committee
(BAC), the Technical Working Group, and the BAC Secretariat, the head of the Project
Management Office or the end-user unit, and the project consultants by consanguinity or
affinity up to the third civil degree;

If a corporation or joint venture: None of the officers, directors, and controlling

stockholders of [Name of Bidder] is related to the Head of the Procuring Entity, members
of the Bids and Awards Committee (BAC), the Technical Working Group, and the BAC
Secretariat, the head of the Project Management Office or the end-user unit, and the project
consultants by consanguinity or affinity up to the third civil degree;

7. [Name of Bidder] complies with existing labor laws and standards; and

8. [Name of Bidder] is aware of and has undertaken the following responsibilities as a Bidder:

a) Carefully examine all of the Bidding Documents;

b) Acknowledge all conditions, local or otherwise, affecting the implementation of the

Contract;

c) Made an estimate of the facilities available and needed for the contract to be bid, if any;
and

d) Inquire or secure Supplemental/Bid Bulletin(s) issued for the [Name of the Project].

9. [Name of Bidder] did not give or pay directly or indirectly, any commission, amount, fee,
or any form of consideration, pecuniary or otherwise, to any person or official, personnel
or representative of the government in relation to any procurement project or activity.

IN WITNESS WHEREOF, I have hereunto set my hand this __ day of ___, 20__ at
____________, Philippines.

_____________________________________
Bidder’s Representative/Authorized Signatory

[JURAT]
* This form will not apply for WB funded projects.

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 Bank Guarantee Form for Advance Payment

To: [name and address of PROCURING ENTITY]

[name of Contract]

Gentlemen and/or Ladies:

In accordance with the payment provision included in the Special Conditions of Contract, which
amends Clause 10 of the General Conditions of Contract to provide for advance payment, [name
and address of Supplier] (hereinafter called the “Supplier”) shall deposit with the PROCURING
ENTITY a bank guarantee to guarantee its proper and faithful performance under the said Clause
of the Contract in an amount of [amount of guarantee in figures and words].

We, the [bank or financial institution], as instructed by the Supplier, agree unconditionally and
irrevocably to guarantee as primary obligator and not as surety merely, the payment to the
PROCURING ENTITY on its first demand without whatsoever right of objection on our part and
without its first claim to the Supplier, in the amount not exceeding [amount of guarantee in figures
and words].

We further agree that no change or addition to or other modification of the terms of the Contract
to be performed thereunder or of any of the Contract documents which may be made between the
PROCURING ENTITY and the Supplier, shall in any way release us from any liability under this
guarantee, and we hereby waive notice of any such change, addition, or modification.

This guarantee shall remain valid and in full effect from the date of the advance payment received
by the Supplier under the Contract until [date].

Yours truly,

Signature and seal of the Guarantors

[name of bank or financial institution]

[address]

[date]

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