BIDS

AND
AWARDS
Presented by:

Segrid M. Centena
MAED Educational
Management
DEPED MEMO
NO. 67 s 2006
REPUBLIC ACT NO. 9184

“An Act Providing for the Modernization, Standardization

and Regulation of the Procurement Activities of the
Government and for other Purposes,”

otherwise known as the Government Procurement Reform

Act.
 This Act shall apply to the Procurement of Infrastructure Projects,
Goods, and Consulting Services, regardless of source of funds, whether
local or foreign, by all branches and instrumentalities of government, its
departments, offices and agencies, including government-owned and/or -
controlled corporations and local government units, subject to the
provisions of Commonwealth Act No. 138. Any treaty or international or
executive agreement affecting the subject matter of this Act to which the
Philippine government is a signatory shall be observed.
SEC. 5. Definition of Terms. – For purposes of this Act, the
following terms or words and phrases shall mean or be understood
as follows:

 Approved Budget for the Contract (ABC)

– refers to the budget for the contract duly approved by

the Head of the Procuring Entity, as provided for in the General
Appropriations Act and/or continuing appropriations, in the case of
National Government Agencies; the Corporate Budget for the
contract approved by the governing Boards, pursuant to E.O. No.
518, series of 1979, in the case of Government-Owned and/or -
Controlled Corporations, Government Financial Institutions and
State Universities and Colleges; and the Budget for the contract
approved by the respective Sanggunian, in the case of Local
Government Units.
 BAC

– refers to the Bids and Awards Committee established in accordance

with Article V of this Act.

 Bidding Documents

– refers to documents issued by the Procuring Entity as the basis for

Bids, furnishing all information necessary for a prospective bidder to
prepare a bid for the Goods, Infrastructure Projects, and Consulting
Services to be provided.
 Bid

– refers to a signed offer or proposal submitted by a supplier,

manufacturer, distributor, contractor or consultant in response to the
Bidding Documents.

 Competitive Bidding

– refers to a method of procurement which is open to participation by

any interested party and which consists of the following processes:
advertisement, pre-bid conference, eligibility screening of prospective
bidders, receipt and
opening of bids, evaluation of bids, post-qualification, and award of
contract, the specific requirements and mechanics of which shall be
defined in the IRR to be promulgated under this Act.
 Consulting Services

– refer to services for Infrastructure Projects and other types of projects

or activities of the Government requiring adequate external technical
and professional expertise that are beyond the capability and/or
capacity of the government to undertake such as, but not limited to:

a. advisory and review services;

b. pre-investment or feasibility studies;
c. design;
d. construction supervision;
e. management and related services; and
f. other technical services or special studies.
 G-EPS

– refers to the Government Electronic Procurement System

 Goods

– refer to all items, supplies, materials and general support services,

except consulting services and infrastructure projects, which may be
needed in the transaction of public businesses or in the pursuit of any
government undertaking, project or activity, whether in the nature of
equipment, furniture, stationery, materials for construction, or personal
property of any kind, including non-personal or contractual services such
as the repair and maintenance of equipment and furniture, as well as
trucking, hauling, janitorial, security, and related or analogous services, as
well as procurement of materials and supplies provided by the procuring
entity for such services.
 Infrastructure Projects

– include the construction, improvement, rehabilitation, demolition,

repair, restoration or maintenance of roads and bridges, railways,
airports, seaports, communication facilities, civil works components of
information technology projects, irrigation, flood control and drainage,
water supply, sanitation, sewerage and solid waste management
systems, shore protection, energy/power and electrification facilities,
national buildings, school buildings, hospital buildings and other related
construction projects of the government.
 ARTICLE V
BIDS AND AWARDS COMMITTEE

SEC. 11. The BAC and its Composition.

Each procuring entity shall establish in its head office a

single BAC to undertake the functions specified in Section 12 of
this IRR in order to facilitate professionalization and
harmonization of procedures and standards. In line with the
standardization of procurement procedures and the thrust
towards strengthening the procurement function to increase
operational efficiency and effectiveness, Heads of Procuring
Entities shall aim to consolidate or unify all procurement
activities of the organization, whether locally-funded or
foreign-assisted, and whether pertaining to goods,
infrastructure projects, or consulting services.
However, to expedite the procurement process for practical intents
and purposes, the Head of the Procuring Entity may create separate
BACs where the number and complexity of the items to be procured
shall so warrant. The BACs may be organized either according to:

(a) geographical location of PMO or end-user units of the procuring

entity; or (b) nature of procurement. Similar committees for
decentralized and lower level offices may also be formed when
deemed necessary by the Head of the Procuring Entity
BAC Composition

The BAC for NGAs, departments, bureaus, offices, or instrumentalities

of the GOP, including the judicial and legislative branches,
constitutional commissions, SUCs, GOCCs, and GFIs shall be
composed of the following:
Regular Members:

A. Chairman, who is at least a third ranking permanent official of the

procuring entity;

B. An officer, who is at least a fifth ranking permanent official, with

knowledge, experience and/or expertise in procurement who, to the
extent possible, represents the legal or administrative area of the
procuring entity, provided that in the case of bureaus, regional offices
and sub-regional/district offices, BAC members shall be at least a third
ranking permanent personnel;
C. An officer, who is at least a fifth ranking permanent official, with
knowledge, experience and/or expertise in procurement who, to the
extent possible, represents the finance area of the procuring entity,
provided that in the case of bureaus, regional offices and sub-
regional/district offices, BAC members shall be at least a third ranking
permanent personnel;
Provisional Members:
D. An officer who has technical expertise relevant to the
procurement at hand, and, to the extent possible, has
knowledge, experience and/or expertise in procurement; and
E. A representative from the end user unit who has knowledge of
procurement laws and procedures.

The Chairman and the Vice-Chairman shall also be designated by

the Head of the procuring entity. Moreover, the Vice-Chairman
shall be a regular member of the BAC.
Section 12. Functions of the BAC

The BAC shall have the following functions:

a. advertise and/or post the invitation to bid/request for expressions of

interest;
b. conduct pre-procurement and pre-bid conferences;
c. determine the eligibility of prospective bidders;
d. receive bids;
e. conduct the evaluation of bids;
f. undertake post-qualification proceedings;
g. resolve motions for reconsideration;
h. recommend award of contracts to the Head of the Procuring Entity or
Section 12. Functions of the BAC

i. recommend the imposition of sanctions in accordance with Rule

XXIII;
j. recommend to the Head of the Procuring Entity the use of
Alternative Methods of Procurement as provided for in Rule XVI
hereof; and
k. perform such other related functions as may be necessary,
including the creation of a Technical Working Group (TWG) from a pool
of technical, financial, and/or legal experts to assist in the
procurement process, particularly in the eligibility screening,
The BAC shall be responsible for ensuring that the procuring entity
abides by the standards set forth by the Act and this IRR, and it shall
prepare a procurement monitoring report in the form prescribed by
the GPPB. The procurement monitoring report shall cover all
procurement activities specified in the APP, whether ongoing and
completed, from the holding of the pre-procurement conference to
the issuance of notice of award and the approval of the contract,
including the standard and actual time for each major procurement
activity. The procurement monitoring report shall be approved and
submitted by the Head of the Procuring Entity to the GPPB in printed
and electronic format within fourteen (14) calendar days after the
BAC Secretariat

The Head of the Procuring Entity shall create a

Secretariat which will serve as the main support unit of the BAC.
An existing organic office within the procuring entity may also be
designated to serve as Secretariat. However, to strengthen and
promote the professionalization of the organizations’ procuring
unit, the Head of the Procuring Entity may create procurement
units that may serve concurrently as BAC Secretariat in
accordance with the guidelines issued by DBM. The Secretariat
shall have the following functions and responsibilities:
The Secretariat shall have the following functions and
responsibilities:

A. Provide administrative support to the BAC;

B. Organize and make all necessary arrangements for BAC meetings
and conferences;
C. Prepare minutes of meetings and resolutions of the BAC;
D. Take custody of procurement documents and other records;
E. Manage the sale and distribution of Bidding Documents to
interested bidders;
F. Advertise and/or post bidding opportunities, including Bidding
Documents, and notices of awards;
G. Assist in managing the procurement processes;
H. Monitor procurement activities and milestones for proper reporting
to relevant agencies when required;
I. Consolidate PPMPs from various units of the procuring entity to
make them available for review as indicated in Section 7 of this
IRR; and
J. Act as the central channel of communications for the BAC with end
users, PMOs, other units of the line agency, other government
agencies, providers of goods, infrastructure projects, and
consulting services, observers, and the general public.
 BAC Secretariat

The head of the Secretariat in central offices shall be at least a fifth

ranking permanent employee or, if not available, a permanent
official of the next lower rank; or shall be at least a third ranking
permanent employee in bureaus, regional offices and sub-
regional/ district offices, or if not available, a permanent
employee of the next lower rank. In addition to integrity, Heads of
Procuring Entities shall consider procurement proficiency as a
factor in designating the head of the Secretariat and Procurement
Unit.
BAC Secretariat

To expedite the procurement process, the Head of the Procuring

Entity shall ensure that the members of the BAC and TWG shall
give utmost priority to BAC assignments over all other duties and
responsibilities, until the requirements for the said assignments
at hand are completed.
 RULE VI - PREPARATION OF BIDDING
DOCUMENTS
The Bidding Documents shall be prepared by the procuring entity
following the standard forms and manuals prescribed by the GPPB.
The Bidding Documents shall include the following:
A. Approved Budget for the Contract;
B. Invitation to Bid/Request for Expression of Interest;
C. Eligibility Requirements;
D. Instructions to Bidders, including scope of bid, documents comprising
the bid, criteria for eligibility, bid evaluation methodology/criteria in
accordance with the Act, and post-qualification, as well as the date,
time and place of the pre-bid conference (where applicable), submission
of bids and opening of bids;
E. Terms of Reference (TOR), for consulting services;
F. Scope of work, where applicable;
G. Plans/Drawings and Technical Specifications;
H. Form of Bid, Price Form, and List of Goods or Bill of Quantities;
I. Delivery Time or Completion Schedule;
J. Form, Amount, and Validity Period of Bid Security;

K. Form, Amount, and Validity of Performance Security and Warranty;

and
L. Form of Contract and General and Special Conditions of Contract.
INVITATION TO BID

Pre-procurement Conference

During this conference, the participants, led by the BAC, shall:

a. Confirm the description and scope of the contract, the ABC, and
contract duration.
b. Ensure that the procurement is in accordance with the project and
annual procurement plans;
C. Determine the readiness of the procurement at hand, including,
among other aspects, the following:
1. availability of appropriations and programmed budget for
contract;

2. completeness of the Bidding Documents and their adherence to

relevant general procurement guidelines;

3. completion of the detailed engineering according to the

prescribed standards in the case of infrastructure projects; and

4. confirmation of the availability of ROW and the ownership of

affected properties.
D. Review, modify and agree on the criteria for eligibility screening,
evaluation, and post-qualification;
E. Review and adopt the procurement schedule, including deadlines
and timeframes, for the different activities; and
F. Reiterate and emphasize the importance of confidentiality, in
accordance with Section 19 of this IRR, and the applicable sanctions
and penalties, as well as agree on measures to ensure compliance
with the foregoing.
Pre-bid
Conference
 AWARD, IMPLEMENTATION AND TERMINATION OF THE
CONTRACT

Contract Award
The BAC shall recommend to the Head of the Procuring Entity
the award of contract to the bidder with the Lowest
Calculated Responsive Bid/Highest Rated Responsive Bid or
the Single Calculated/Rated Responsive Bid after the post-
qualification process has been completed.
 To facilitate the approval of the award, the BAC shall submit
the following supporting documents to the Head of the
Procuring Entity:
a) Resolution of the BAC recommending award;
b) Abstract of Bids;
c) Duly approved program of work or delivery schedule, and Cost
Estimates;
d) Document issued by appropriate entity authorizing the procuring
entity to incur obligations for a specified amount; and
e) Other pertinent documents required by existing laws, rules,
and/or the procuring entity concerned.

Within a period not exceeding seven (7) calendar days from the
date of receipt of the recommendation of the BAC, the Head of the
Procuring Entity shall approve or disapprove the said
recommendation.
 In case of approval, the Head of the Procuring Entity shall immediately issue
the Notice of Award to the bidder with the Lowest Calculated Responsive
Bid/Highest Rated Responsive Bid. In the event the Head of the Procuring
Entity shall disapprove such recommendation, such disapproval shall be based
only on valid, reasonable, and justifiable grounds to be expressed in writing,
copy furnished the BAC.

 Contract award shall be made within the bid validity period provided in
Section 28 of this IRR.
 The BAC, through the Secretariat, shall post, within three (3) calendar days
from its issuance, the Notice of Award in the PhilGEPS, the website of the
procuring entity, if any, and any conspicuous place in the premises of the
procuring entity.(n)

 Contract Signing
 The winning bidder shall post the required Performance
Security and enter into contract with the procuring entity
within ten (10) calendar days from receipt by the winning
bidder of the Notice of Award.(a)
 The procuring entity shall enter into contract with the
winning bidder within the same ten (10) day period
provided that all the documentary requirements are
complied with.
 The following documents shall form part of the contract:

a) Contract Agreement;
b) Bidding Documents;
c) Winning bidder’s bid, including the Eligibility requirements,
Technical and Financial Proposals, and all other
documents/statements submitted;
d) Performance Security;
e) Credit line in accordance with the provisions of this IRR, if
applicable;
f) Notice of Award of Contract; and

g) Other contract documents that may be required by existing laws

and/or the procuring entity concerned in the Bidding Documents,
such as the construction schedule and S-curve, manpower schedule,
construction methods, equipment utilization schedule, construction
safety and health program approved by the Department of Labor
and Employment, and PERT/CPM for infrastructure projects.