GENERAL OVERVIEW OF RA 9184 PROCUREMENT ORGANIZATIONS The

GENERAL OVERVIEW OF RA 9184, PROCUREMENT ORGANIZATIONS & The 2016 REVISED IRR 1

OUTLINE I. III. IV. V. VI. General Overview of RA 9184 and its IRR Definition of Terms Principles of Public Procurement / 5 Rights Procurement Methods and Procedures Procurement Organizations / GPPB and its TSO 2016 Revised IRR 2

SCOPE AND COVERAGE JSDF PROJECT R. A. 9184 applies to all branches and/or instrumentalities of the government: 1. National Government Agencies (NGAs) 2. State Universities and Colleges (SUCs) 3. Government Owned or Controlled Corporations (GOCCs) 4. Government Financial Institutions (GFIs) 5. Local Government Units (LGUs) 3

SCOPE AND COVERAGE v It shall apply to all procurement activities involving: 1. Goods and Services 2. Infrastructure Projects 3. Consulting Services 4

SCOPE AND COVERAGE Section 4, Revised IRR v All fully domestically-funded procurement activities v All foreign-funded procurement activities, unless otherwise provided in a treaty or int’l/executive agreement Mandates adherence to RA 9184 or selection through competitive bidding. Otherwise, negotiating panel shall ensure that the reasons for the adoption of a different rule or method of procurement are clearly reflected in the records of discussion. (Sec. 4. 3, 2016 IRR of RA 9184) 5

SCOPE AND COVERAGE Section 4, Revised IRR v As may be agreed upon by the GOP and IFI in their treaty or int’l/executive agreement • • • Projects funded from foreign grants Projects for International Competitive Bidding Consulting Services for National Competitive Bidding 6

SCOPE AND COVERAGE EXCEPT: 1. Procurement for goods, infrastructure projects, and consulting services funded from Foreign Grants covered by R. A. 8182, as amended by R. A. 8555, entitled “An Act Excluding Official Development Assistance (ODA) from the Foreign Debt Limit in order to Facilitate the Absorption and Optimize the Utilization of ODA Resources, Amending for the Purpose Paragraph 1, Section 2 of Republic Act No. 4860, as amended”, unless the GOP and the foreign grantor/foreign or international financing institution agree otherwise; 2. Acquisition of real property which shall be governed by R. A. 8974, as amended by RA 10752 entitled “An Act to Facilitate the Acquisition of Right-of-Way Site or Location for National Government Infrastructure Projects and for Other Purposes, ” and other applicable laws; 7

SCOPE AND COVERAGE 3. Public-Private sector infrastructure or development projects and other procurement covered by R. A. 6957, as amended by R. A. 7718 (BOT Law), entitled “An Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector, and for Other Purposes, ” as amended; 4. Disposal of government properties; v. Commission on Audit Circular No. 86 -264 v. DBM National Budget Circular No. 425 8

SCOPE AND COVERAGE Enumerated activities that are not considered as procurement undertakings under RA 9184 and its IRR: 1. Direct financial or material assistance to beneficiaries 2. Participation to scholarships, trainings, continuing education, etc. 3. Lease of government property for private use 4. Job order workers 5. Joint Venture Agreements between Private Entities and GOCCs or LGUs 6. Disposal of property and assets Sec. 4. 5, 2016 IRR of RA 9184 9

SCOPE AND COVERAGE Leasing out of publicly-owned real property for private use v Transactions where a government agency leases out its real property for private use, such as in the case of a canteen or food concessionaire, are governed by Executive Order 301 (Series of 1987), particularly Section 7 thereof, and its associated guidelines. v Implementing Guidelines for Lease of Privately-Owned Real Estate guidelines will only apply to lease of privatelyowned real estate by government agencies for official use. NPM 50 -2013 10

SCOPE AND COVERAGE Leasing Out of Government Properties for Private Use v As long as lease out undertakings do not involve expenditure of public funds for the procurement of goods, works and consulting services, RA 9184, its IRR, and its associated rules will not apply. v Transactions involving lease of government properties for private use are covered by Executive Order No. 301, series of 1987 (EO 301). Other laws and issuances that may be looked into are RA 6957, as amended by RA 7718, for lease out of undertakings that require infrastructure or development projects, or the Revised Joint Venture Guidelines issued by the NEDA in case of JV. NPM 10 -2014 11

DEFINITION OF TERMS 12

What is PROCUREMENT? Procurement refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by procuring entity. (Sec. 5(aa), IRR, R. A. 9184) 13

GOODS Refer to: v All items, supplies and materials v Including general support services v Needed in the transaction of public businesses or in the pursuit of any government undertaking, project or activity v Whether in the nature of equipment, furniture, stationery, materials or construction, personal property, including nonpersonal or contractual services, such as: 1. repair and maintenance of equipment and furniture 2. trucking, hauling, janitorial and security and other related analogous services. Except: Infrastructure projects and consulting services 14

INFRASTRUCTURE PROJECTS Refer to: v construction, improvement, demolition, rehabilitation, repair, restoration or maintenance of civil works components of : 1. IT projects 2. irrigation 3. flood control and drainage 4. water supply 5. sanitation, sewerage and solid waste management 6. national buildings, hospital buildings, and other related constructions projects of the Government. 15

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: 1. 2. 3. 4. 5. 6. advisory and review services; pre-investment or feasibility studies; design; construction supervision; management and related services; and other technical services or special studies. 16

MIXED PROCUREMENT v In case of projects involving mixed procurements, the nature of the procurement, shall be determined based on the primary purpose of the contract. v Determination shall be made by the procuring entity. v In mixed procurements, the PE shall specify in the Bidding Documents all requirement applicable to each component of the project. In the preparation of Bidding Documents, the PE shall ensure compliance with existing laws, rules and regulations, especially those concerning licenses and permits required for the project (Sec. 17. 2, 2016 IRR of RA 9184) 17

DETERMINATION OF TYPE OF PROCUREMENT v PE is in the best position to determine the correct classification of its procurement based on its identified needs and the best way by which these needs may be addressed, managed, and satisfied. v It is the motivation or intention of the PE in pursuing the project that will determine the primary purpose of a project. NPM 11 -2013 18

PRINCIPLES OF PUBLIC PROCUREMENT 19

Public Procurement Principles • • Transparency Efficiency – Streamlined Procurement Process Equity – Fairness Competition Accountability Public Monitoring Economy – Value for Money (TEE-CAPE)

5 “Rights” in Public Procurement Value for Money Source Time/ Delivery Quantity Procurement Price Quality

PROCUREMENT METHODS AND PROCEDURES 22

PROCUREMENT METHODS All Procurement shall be done through competitive bidding except as provided in R. A. 9184. Resort to alternative methods shall be made: v Only in highly exceptional cases v To promote economy and efficiency v Justified by conditions specified in R. A. 9184 and its IRR 23

PROCUREMENT METHODS 24

BIDDING PROCESS FOR GOODS & INFRA PROJECTS Pre. Procurement Conference Bid Submission Bid Evaluation Advertisement and/or Posting Opening of Technical Proposal (incl. eligibility docs) Post-qualification Pre-Bid Conference Opening of Financial Proposal Contract Award 25

BIDDING PROCESS FOR CONSULTING SERVICES Pre. Procurement Conference Pre-Bid Conference Bid Evaluation (QBE or QCBE) Advertisement and/or Posting Bid Submission Post-qualification Eligibility and Shortlisting Opening of Bids (QBE or QCBE) Contract Award Negotiation 26

PROCUREMENT ORGANIZATIONS 27

2016 Revised IRR of RA 9184 The GPPB and its TSO: • The GPPB is the central procurement policy making body of the government under the Government Procurement Reform Act – Section 63 of RA 9184 and its IRR authorizes the Government Procurement Policy Board (GPPB) to formulate public procurement policies, rules and regulations, and amend, whenever necessary, the IRR. • The GPPB-TSO is the technical, research, monitoring and administrative arm of the GPPB. 28

2016 Revised IRR of RA 9184 On Authority Over Procuring Entities v. It cannot dictate to the procuring entity how to decide or resolve issues relative to its procurement activities. The GPPB is a quasi-legislative body mandated to formulate and amend the IRR. It has no quasi-judicial powers and functions; hence, cannot investigate and ascertain the existence of facts, hold hearings, and exercise discretion of a judicial nature over actual controversies with regard to the conduct of bidding by procuring entities. 29

2016 Revised IRR of RA 9184 On Granting exemption from application of RA 9184 v It is beyond the authority of the GPPB to grant exemptions from the application of RA 9184 and its IRR as it does not have the mandate to legislate nor determine the coverage of the law. The GPPB however, may render contemporaneous construction of the provisions of the law pursuant to its quasi-legislative fiat, and issue rules and regulations on the basis of its rule-making power. 30

2016 Revised IRR of RA 9184 On Resolving issue on post-disqualification v GPPB cannot grant a bidder’s request to resolve the issue of their post-disqualification. Nonetheless, they are urged to follow the prescribed rules and procedures on Protest Mechanism laid down in Section 55 of the IRR of RA 9184. 31

2016 Revised IRR of RA 9184 On Declaring Failure of Bidding v GPPB is not vested with the authority to declare a PE’s procurement activity to have incurred a failure of bidding. v Declaration of failure of bidding is within the authority and accountability of the Bids and Awards Committee and the Head of the Procuring Entity to exercise, under Sections 35 and 41 of the IRR of RA 9184, respectively. 32

PROCUREMENT ORGANIZATIONS v Head of the Procuring Entity (HOPE) v Bids and Awards Committee (BAC) v BAC Secretariat v Technical Working Group (TWG) v Observers 33

HEAD OF PROCURING ENTITY (HOPE) Refers to: v Head of the agency or body, or his duly authorized official, for NGAs and the constitutional commissions or offices, and other branches of government; v Governing Board or its duly authorized official, for GOCCs, GFIs and SUCs; or v Local Chief Executive, for LGUs Note: In an agency, department, or office where the procurement is decentralized, the head of each decentralized unit shall be considered as the Ho. PE, subject to the limitations and authority delegated by the head of the agency, department, or office 34

HEAD OF PROCURING ENTITY (HOPE) FUNCTIONS AND RESPONSIBILITIES: 1. Establishes BAC and appoints its members v Ensures that BAC members give their utmost priority to duties v Ensures professionalization of members of the procurement organization Within six (6) months upon designation, the BAC, its Secretariat and TWG members should have satisfactorily completed such training or program conducted, authorized or accredited by the GPPB through its TSO. (Sec. 16, 2016 IRR of RA 9184) 35

HEAD OF PROCURING ENTITY (HOPE) 2. Approves the Annual Procurement Plan (APP) 3. Approves/Disapproves the Contract Award 4. Resolves Protests 36

BIDS AND AWARDS COMMITTEE (BAC) As a general rule, HOPE must create a single BAC. However, separate BACs may be created under any of the following conditions: 1. The items to be procured are complex or specialized; 2. If the single BAC cannot reasonably manage the procurement transactions as shown by delays beyond the allowable limits; or 3. If the creation is required according to the nature of the procurement. 37

BIDS AND AWARDS COMMITTEE (BAC) FUNCTIONS AND RESPONSIBILITIES: v Recommends Procurement Method v Creates a Technical Working Group (TWG) v Conducts the bidding activities v Resolves Requests for Reconsideration v Recommends Imposition of Sanctions v Invites Observers during all stages of the procurement process v Conducts due diligence review or verifications of the qualifications of observers v Prepares Procurement Monitoring Report 38

BIDS AND AWARDS COMMITTEE (BAC) FUNCTIONS AND RESPONSIBILITIES: v Advertise and/or post the IB/REI v Conduct pre-procurement and pre-bid conferences; v Determine the eligibility of prospective bidders; v Receive and open bids; v Conduct the evaluation of bids; v Undertake post-qualification proceedings; v Recommend award of contracts to the Ho. PE or his duly authorized representative; v Recommend to the Ho. PE the use of Alternative Methods of Procurement 39

BIDS AND AWARDS COMMITTEE (BAC) FUNCTIONS AND RESPONSIBILITIES: v Conduct any of the Alternative Methods of Procurement; v Conduct periodic assessment of the procurement processes and procedures v Perform such other related functions as may be necessary (Sec. 12. 1, 2016 IRR of RA 9184) 40

BIDS AND AWARDS COMMITTEE (BAC) MEMBERSHIP AND QUALIFICATIONS: v BAC members should occupy plantilla positions with the procuring entity concerned. v All members are regular members except the end-user member who is considered as a provisional member. The members, whether regular or provisional, are equally entitled to participate and to vote during deliberations. 41

BIDS AND AWARDS COMMITTEE (BAC) COMPOSITION: 5 but not more than 7 MEMBERS designated by the HOPE 1. Regular Members: v Chairperson (3 rd Ranking Permanent Official); v Member representing the Legal or Administrative areas (5 th Ranking Permanent Personnel); or if not available, an officer of the next lower rank; v Member representing the Finance Area (5 th Ranking Permanent Personnel); or if not available, an officer of the next lower rank; 42

BIDS AND AWARDS COMMITTEE (BAC) COMPOSITION: 5 but not more than 7 MEMBERS designated by the HOPE 2. Provisional Members v Officer possessing Technical expertise relevant to the procurement. v End user unit Representative. In case of procurement outsourcing, a representative from the Procuring Entity may be designated as a provisional member 43

BIDS AND AWARDS COMMITTEE (BAC) COMPOSITION: 5 but not more than 7 MEMBERS designated by the HOPE Members for LGUs (Regular Offices under OLCE): 1. Administrator’s Office 2. Budget Office 3. Legal Office 4. Engineering Office 5. General Services Office 6. End User Office 44

BIDS AND AWARDS COMMITTEE (BAC) v The BAC members shall elect among themselves who shall act as the Chairman and Vice-Chairman. The BAC Chairman and Vice-Chairman shall be designated by the LCE QUALIFICATIONS: v BAC members should occupy plantilla positions with the procuring entity concerned v BAC Chairperson shall be at least a third ranking permanent official 45

Procurement Organizations: LGU BAC Composition in Local Government Units (LGUs) v While the list of offices mentioned in Sec 11. 2. 3 of the IRR of RA 9184 is not exclusive, it is necessary that the BAC members shall come from the regular offices under the Office of the Local Chief Executive (LCE), except the Chief Accountant and any personnel from the Accounting Unit. Term of Office of BAC Members in LGUs v The LCE was given the discretion to designate the members of the BAC for the period of one (1) year, and to extend the terms of office of BAC Members granting that the extension will be most desirable and advantageous for the PE. NPM 36 -2014 46

ALTERNATE BAC MEMBERS v Same qualifications as their principals. v Same term as the principal. v Presence of alternate BAC members in BAC meetings are considered for purposes of quorum. v The relationship of the principal and the alternate is of co-equal nature, rather than hierarchical. v Accountability shall be limited to their respective acts and decisions. v Shall be entitled to the proportionate honoraria for attendance in meetings. 47

BIDS AND AWARDS COMMITTEE (BAC) TERMS OF MEMBERSHIP: The BAC members shall be designated for a term of one (1) year only, reckoned from the date of designation. However, the HOPE may renew or terminate such designation at his discretion. Upon expiration of the terms of the current members, they shall continue to exercise their functions until new BAC members are designated. 48

BIDS AND AWARDS COMMITTEE (BAC) TERMS OF MEMBERSHIP: In case of resignation, retirement, separation, transfer, reassignment, or removal of a BAC member, the HOPE shall designate a replacement that has similar qualifications as the official replaced. The replacement shall serve for the unexpired term. In case of leave or suspension, the replacement shall serve only for the duration of the leave or suspension. 49

PROHIBITED BAC MEMBERS 1. Head of the Procuring Entity 2. Official who approves procurement contracts; 3. Chief Accountant or Head of the Provincial/City/Municipal Accounting Office and his/her staff, unless the Accounting Department is the end-user unit, in which case the Chief Accountant, Head of the Accounting Department or his/her staff may be designated as an end-user member. (COA Circular Letter No. 2004 – 3) 50

BAC SECRETARIAT v HOPE may create a new office or designate an existing organic office to act as BAC Secretariat In case of ad hoc BAC Secretariat, the HOPE shall assign full -time support staff in its BAC Secretariat (Sec. 14. 2) v There is no minimum or maximum number of members of the BAC Secretariat. v Head of the BAC Secretariat must be at least a 5 th or 3 rd ranking permanent employee or, if not available, a permanent official of the next lower rank 51

BAC SECRETARIAT FUNCTIONS: v Provide administrative support to the BAC and TWG v Organize BAC and TWG meetings and conferences v Take custody of procurement documents and other records v Manage the sale and distribution of bidding documents v Advertise/post bidding opportunities, including Bidding Documents, and notices of awards v Assist in managing the procurement process v Monitor procurement activities and milestones v Consolidate PPMPs v Act as central channel of communications v Prepare minutes of meetings and resolutions of the BAC 52

TECHNICAL WORKING GROUP (TWG) v Created by the BAC from a pool of legal, technical and financial experts - those experts outside the procuring entity concerned may be included, i. e. government personnel and officials and consultants from the private sector and academe with proven expertise on the sourcing of goods, works or consulting services. (GPPB Resolution No. 07 -2012, GPPB Circular No. 02 -2012) v BAC may create separate TWGs to handle different procurements 53

TECHNICAL WORKING GROUP (TWG) FUNCTIONS: Assist BAC in the following activities: v Eligibility screening v Bid evaluation v Post-qualification v Review of the Technical Specifications, Scope of Work, and Terms of Reference v Review of Bidding Documents v Shortlisting of consultants v Resolution of Request for Reconsideration (Sec. 12. 1, 2016 IRR of RA 9184) 54

OBSERVERS v Observers represent the public, the taxpayers who are interested in seeing to it that procurement laws are observed and irregularities are averted. v At least three (3) Observers shall be invited coming from: ü COA ü Duly recognized private group in the sector or discipline of the particular type of procurement involved ü Non-Government Organization (NGO) 55

OBSERVERS v In all stages of procurement process, During the 1) eligibility checking, 2) shortlisting, 3) pre-bid conference, 4) preliminary examination of bids, 5) bid evaluation, and 6) post-qualification, the BAC must invite, in writing, at least three (3) Observers, at least 3 cd 5 cd before the date of the procurement stage/activity 56

OBSERVERS Observers shall be allowed access or be provided with the following documents free of charge upon their request, subject to signing of a confidentiality agreement: 1. 2. 3. 4. 5. Minutes of BAC meetings; Abstract of Bids; Post-qualification summary report; APP and related PPMP; and Opened proposals In all instances, observers shall be required to enter into a confidentiality agreement with the concerned Procuring Entity in accordance with the form prescribed by the GPPB. 57

OBSERVERS RESPONSIBILITIES: 1. Prepare report (jointly or separately) indicating their observations on the procurement activities 2. Submit report to the PE and furnish a copy to the GPPB and the Office of the Ombudsman/Resident Ombudsman. 3. Immediately inhibit and notify in writing the PE of any actual or potential conflict of interest If no report is submitted by the observer within seven (7) calendar days after each procurement activity, then it is presumed that the bidding activity conducted by the BAC followed the correct procedure 58

GRANT OF HONORARIA v PE is authorized to grant honoraria to the members of the BAC, the TWG, and the BAC Secretariat provided the amount so granted does not exceed twenty-five percent (25%) of their respective basic monthly salary, subject to the following conditions: • funds are available for the purpose; and • the grant of honoraria conforms to the guidelines promulgated by the DBM. (Section 15, IRR of R. A. 9184) 59

GUIDELINES ON THE GRANT OF HONORARIA v DBM Budget Circular No. 2004 -5 A, dated 7 October 2005, as amended by DBM Budget Circular No. 2007 -3, dated 29 November 2007. § Only for successfully completed procurement projects § Limited to procurement that involves competitive bidding – Competitive Bidding, LSB and Nego Proc-Two Failed Bidding. § Granted to Chair or Members of the BAC or the TWG by the PE concerned. 60

GUIDELINES ON THE GRANT OF HONORARIA v BAC Secretariat performing attendant functions in addition to their regular duties and functions may be paid honoraria at the same rate as the TWG Chair and Members v Those who are receiving honoraria shall no longer be entitled to overtime pay for procurement-related services rendered. v Payment of overtime services may be allowed for the administrative staff, (clerks, messengers and drivers supporting the BAC, the TWG and the Secretariat), for procurement activities rendered in excess of official working hours. 61

FUNDING SOURCE v Collections from successfully completed procurement projects, limited to activities prior to the awarding of contracts to winning bidders: § proceeds from sale of bid documents; § fees from contractor/supplier registry; § fees charged for copies of minutes of bid openings, BAC resolutions and other BAC documents; § protest fees; and § proceeds from bid security forfeiture 62

CEILING FOR HONORARIA Maximum Honorarium rate per procurement project BAC Chair Php 3, 000. 00 BAC Members Php 2, 500. 00 BAC Secretariat TWG Chair and Members Php 2, 000. 00 Members of the BAC Secretariat whose positions are in the Procurement Unit of the agency shall not be entitled to honoraria although the payment of overtime services may be allowed, subject to existing policy on the matter. 63

THE 2016 REVISED IRR (SALIENT FEATURES) 64

2016 Revised IRR of RA 9184 Issue/s Revision Impact Free Trade Negotiations Mandates adherence to RA 9184 or selection through competitive bidding. Otherwise, negotiating panel shall ensure that the reasons for the adoption of a different rule or method of procurement are clearly reflected in the records of discussion. (Sec. 4. 3) Provide guidance and directive in negotiations for international agreements and executive agreements (i. e. FTA) 65

2016 Revised IRR of RA 9184 Issue/s Revision Impact Varying interpretations on what are covered by RA 9184 Enumerated activities that are not considered as procurement undertakings under RA 9184 and its IRR: Clarification on the applicability of RA 9184 and its IRR 1. Direct financial or material assistance to beneficiaries 2. Participation to scholarships, trainings, continuing education etc. 3. Lease of gov’t property for private use 4. Job order workers 5. Joint Venture Agreements between Private Entities and GOCCs or LGUs 6. Disposal of property and assets (Sec. 4. 5) 66

2016 Revised IRR of RA 9184 Issue/s Revision Impact Poor planning; Delay in budget approval; Delay in procurement Underspending a. MYOA for Multi-year projects (Sec. 5(b), 7. 6); Improved linkage of budget to procurement; Efficiency in procurement; Improved monitoring; Avoid splitting of contracts b. Preparation of Indicative APP upon issuance of budget call or similar document (7. 3) c. Undertaking Procurement Short of Award (7. 6) d. Require submission of APP and changes thereto to GPPB (7. 4) 67

2016 Revised IRR of RA 9184 Issue/s Lack of members to constitute BAC Revision Allows designation of an officer of the next lower rank, in case of unavailability of 5 th ranking permanent official (except for BAC Chairperson) (Sec. 11. 2. 2) Impact Increases the pool from which HOPE select its BAC members In case of procurement outsourcing, a representative from the Procuring Entity may be designated as a provisional member The Chairperson and Vice-chairperson shall be designated by the local chief executive (Sec. 11. 2. 2, 11. 2. 3(a), 11. 2. 3(b)(iii)) 68

2016 Revised IRR of RA 9184 Issue/s Revision Lack of fulltime BAC Sec members to support the BAC in every procurement activity Allows designation of an officer of the next lower rank, in case of unavailability of 5 th ranking permanent official Impact Fast-track procurement In case of ad hoc BAC Secretariat, the HOPE shall assign full-time support staff in its BAC Secretariat (Sec. 14. 2) 69

2016 Revised IRR of RA 9184 Issue/s Role of TWG Revision Duties of TWG: 1. ) Review of the Technical Specifications, Scope of Work, and Terms of Reference; 2. ) Review of Bidding Documents; 3. ) Shortlisting of Consultants; 4. ) Eligibility Screening; 5. ) Evaluation of Bids; 6. ) Post-Qualification; and 7. ) Resolution of Request for Reconsideration (12. 1) Impact Avoids pinpointing of responsibilities 70

2016 Revised IRR of RA 9184 Issue/s Lack of training of HOPE, BAC, Secretariat and TWG Revision The Ho. PE shall ensure that the BAC, its Secretariat and TWG members, including other relevant procurement personnel are sent to attend procurement training or capacity development program. Impact Procurement Professionalization Within six (6) months upon designation, the BAC, its Secretariat and TWG members should have satisfactorily completed such training or program conducted, authorized or accredited by the GPPB through its Technical Support Office. 71

2016 Revised IRR of RA 9184 Issue/s Revision Low-turn out of procurement observers a. Identify stages of procurement when observers are invited; Impact Increase observers’ participation b. Increase the period of notice from 3 to 5 days c. Allow access or provide copy of bidding documents d. If no observer report within 7 days from activity, there is a presumption that the BAC followed the correct procedure (Sec. 13) 72

2016 Revised IRR of RA 9184 Issue/s Revision a. Bid documents shall reflect the Poor specifications necessary specifications required to meet the needs of the PE Non. Refundable Fee For bid docs b. For mixed procurement, PE shall specify all relevant requirements for each procurement type (Sec. 17. 2) Provide instances when bid doc fees may be refunded to the bidder, i. e. declaration of failure of bidding under Section 41. (Sec. 17. 5) Impact Quality of Goods for the lowest prices Fairness in procurement 73

2016 Revised IRR of RA 9184 Issue/s Revision Reference to brand names is allowed for items or parts that are compatible with the existing fleet or equipment of the same make and brand will maintain the Reference to functionality and Brand Names performance, useful life of the equipment. Difficulty in preparing technical specifications Impact Ensure compatibility, performance, functionality and useful life of the equipment. Prohibition on brand names likewise apply to the goods component of Infrastructure Projects and Consulting Services. (Sec. 18) 74

2016 Revised IRR of RA 9184 Issue/s Revision Impact Poor Quality of Works Requirement on detailed Quality of engineering is emphasized. (17. 6) Goods for the Delay in procurement due to issues on right of way Commencement of the procurement process for civil works short of award, until a permit to enter, deed of sale/donation, writ of possession is issued (17. 6) Institutionalize procurement by lot (Sec. 21. 1(b)) Volume of Procurement Requests lowest prices Fastrack procurement activities Efficiency in procurement 75

2016 Revised IRR of RA 9184 Issue/s Revision Newspaper a. Increase thresholds advertisement requirement Low participation of bidders in pre-bid Impact for b. 2 years sunset clause on advertisement requirement (Sec. 21. 2. 1) a. Allow conduct of pre-bid via video-conferencing, webcasting b. Allow all prospective bidders (even those who did not buy bid docs) to raise queries (Sec. 22) Reduce government cost for newspaper advertisements Clarifies procurement requirements; Reduce disqualification; Increase competition 76

2016 Revised IRR of RA 9184 Issue/s Revision registration under Disqualification a. Mandatory of Bidders/ Platinum Membership (Sec. 8. 5. 2, Failure of 25. 2) Biddings due to b. Mayor’s permit: documentary requirements - Allows submission of recently expired mayor’s permit with official receipt of Low turn-out application for renewal of permit of bidders - Allows equivalent document for economic zones (Sec. 23. 1(a)(ii), 24. 1(a)(ii)) Impact Easier eligibility check Reduce disqualification of bidders/ failure of biddings Increase competition c. For goods procurement, submission of a Credit Line, as an alternative to NFCC (Sec. 23. 1(a)(viii)) 77

2016 Revised IRR of RA 9184 Issue/s Revision Disqualification of Bidders/Failure of Biddings due to documentary requirements d. For goods and infrastructure projects, fixing the NFCC’s K factor at 15, regardless of contract duration (Sec. 23. 4. 1. 4, 23. 4. 2. 7) Low turn-out of bidders e. For individual consultants not registered as sole proprietors, they can submit BIR Certificate of Registration instead of DTI and Mayor’s Permit (Sec. 24. 1(a)(ii)) Impact Easier eligibility check Reduce disqualification of bidders/ failure of biddings Increase competition f. In consulting services, submission of foreign bidders’ SEC Certificate of Registration and/or PRC permit is moved from eligibility to contract award (Sec. 37. 1. 4(a)(iv)) 78

2016 Revised IRR of RA 9184 Issue/s Revision Strict rules on Bid envelopes that are not properly sealed and marked, as required in the marking/ sealing of bids bidding documents, shall be accepted, provided that the bidder or its duly authorized representative shall acknowledge such condition of the bid as submitted. The BAC shall assume no responsibility for the misplacement of the contents of the improperly sealed or marked bid, or for its premature opening(Sec. 25. 9) Impact Reduce disqualification of bidders 79

2016 Revised IRR of RA 9184 Issue/s Revision a. BAC Secretariat shall notify in Bid Rigging/ Simulation of writing all bidders whose bids it bids; has received through its Phil. GEPSregistered physical address or official e-mail address (25. 7) Impact Ensure transparency and accurate representation of the bid submission b. The BAC shall notify all other bidders, in writing, of its recommendation to HOPE of award of contract to LCRB/HRRB within 3 Calendar Days. (37. 1. 1) 80

2016 Revised IRR of RA 9184 Issue/s Procurement by Foreign Service Posts Revision Impact a. Exempts the bidder from the mandatory Phil. GEPS Certificate of Registration (Sec. 25. 2) Encourage participation of foreign bidders in the procurement by FSPs b. Winning bidder shall be required to register (Registration Number only) prior to contract signing. (Section 37. 1. 4(a)(ii) Bid and Performance Securities a. Allows the bidder to choose their preferred form of bid security (Sec. 27. 2) b. Clarifies that the amount for Bid Security shall not be less than the amount of the ABC; in case of the Performance Security, the Contract Price. (Secs. 27. 2 and 39. 2) Avoid undue disqualification of bidders who posted more than the required amount. 81

2016 Revised IRR of RA 9184 Issue/s Revision Strengthen post-qualification process: Technical capability of a. For Goods, BAC shall check: suppliers and 1. Delay in the partial delivery of goods contractors amounting to ten percent (10%) of the contract price in its ongoing contracts; 2. Bidder’s failure to deliver within the period(s) specified in the contract or within any extension thereof and such failure amounts to at least ten percent (10%) of the contract price; or Impact Ensures technical capability of bidders from their past or on-going contracts 3. Unsatisfactory performance of the supplier’s obligations as per contract terms and conditions at the time of inspection (Sec. 34. 3(b)(iii)) 82

2016 Revised IRR of RA 9184 Issue/s Revision Technical capability of suppliers and contractors b. For Infrastructure Projects, BAC shall check: 1. Negative slippage of at least 15% in any one project or a negative slippage of at least 10% in each of 2 or more contracts; 2. Failure of the contractor to commence repair works on ongoing contracts in accordance with Section 34. 3 3. Failure of the contractor to commence repair works on contracts with pending certificates of acceptance in accordance with Sec. 34. 3 4. Substandard quality of work or unsatisfactory performance at the time of inspection. Impact Ensures technical capability of bidders from their past or on-going contracts 83

2016 Revised IRR of RA 9184 Issue/s Revision Impact Period of Action per procurement activity a. Re-scheduling of bid opening (due to justifiable reasons, i. e lack of quorum, cancellation of office work due to bad weather): BAC/HOPE is given a standardized time to determine the eligibility and capability of bidders -reschedule on the next working day of at the soonest possible time (Sec. 29) b. Standardize/adjusted period of action: Bid Evaluation for goods and infra – 7 calendar days, regardless of amount of ABC (Sec. 32. 4) 84

2016 Revised IRR of RA 9184 Issue/s Period of Action per procurement activity Revision Impact Post-qualification: May be conducted up to 12 calendar days, or up to 45 calendar days in exceptional cases for goods & infrastructure projects, or up to 30 calendar days for consulting services. In case of post-disqualification of the LCB/HRB, the BAC is given a fresh period to post-qualify the next LCB/HRB. (Sec. 34. 8) Contract Approval Authority: by BAC/HOPE is given more time to determine the eligibility and capability of bidders Higher NGAs, SUCs, LGUs, - 20 cd GOCCs – 30 cd (Sec. 37. 3) 85

2016 Revised IRR of RA 9184 Issue/s Retention Money Revision Impact For Goods, retention money is reduced from 10% to at least 1% (Sec. 62) Reduce transaction cost results to lower bid prices For Infrastructure Projects, retention money is retained at 10% Termination of contract/ Liquidate damages Once the cumulative amount of liquidated damages reaches ten percent (10%) of the amount of the contract, the Procuring Entity may rescind or terminate the contract, without prejudice to other courses of action and remedies available under the circumstances. (Sec. 68) PE has the discretion w/n to terminate the contract, especially when the Project is near completion (but LD already reached 10%) 86

2016 Revised IRR of RA 9184 Issue/s Revision Impact Procurement Agent Removed Procurement Agent as an alternative modality. However, PE may still outsource their procurement activities by: Clarified that Procurement Agent is not a method of procurement. a)Requesting other Go. P agencies to undertake such procurement for them b)Engaging private procurement agents in accordance with GPPB Guidelines c)Recruiting or engaging consultants to assist them directly and/or train their staff (Sec. 7. 3. 3) 87

2016 Revised IRR of RA 9184 Issue/s Difficulty in procuring the following: -Media services; -Scientific, academic references, works - life-saving equipment -Legal services -Artistic works - Infra projects with exclusive technology Revision New Alternative Modality: Section 53. 6 Scientific, Scholarly or Artistic Work, Exclusive Technology and Media Services. Impact Efficiency in procurement considering that only 1 supplier/contr actor could provide the needs of the PE 88

2016 Revised IRR of RA 9184 Issue/s Revision Impact Engaging the services of International Organizations or International Financial Institutions Expanded the coverage of Section 53. 13, to include IOs and IFIs for the following procurement: To better facilitate the engagement of the services UN agencies, IOs and IFIs. a. small quantities of off-the-shelf goods, primarily in the fields of education and health; b. specialized products where the number of suppliers is limited, such as but not limited to vaccines or drugs; c. Goods, Infrastructure Projects and Consulting Services, involving advanced technologies, techniques and innovations not locally available as certified by the Ho. PE, when it is most advantageous to the government. (Sec. 53. 13) 89

2016 Revised IRR of RA 9184 Issue/s Revision Posting Requirements for Alternative Methods of Procurement a. 3 -day posting shall be required for the following modalities: Impact Standardize AMP rules 1. Limited Source Bidding; 2. Shopping under Section 52. 1 above P 50 K 3. Two Failed Biddings 4. Small Value Procurement 5. NGO Participation (Sec. 54. 2) b. Posting of awards for all Alternative Methods, excepts for ABCs P 50 K and below (Sec. 54. 3) 90

2016 Revised IRR of RA 9184 Issue/s Revision Phil. GEPS Registration Requirement s for Alternative Methods of Procurement Phil. GEPS Registration Number, as a condition for award on the following modalities: Impact Standardize AMP rules 1. Direct Contracting 2. Shopping under Sec. 52. 1(b) 3. Take over of contracts (new bidders) 4. Scientific, Scholarly, Artistic Works etc. 5. Highly Technical Consultants 6. Small Value Procurement 7. Lease of Real Property and Venue For Limited Source Bidding and Two-Failed Biddings, Phil. GEPS Certificate of Registration is required. (Sec. 54. 6) 91

Annex “H” of the 2016 Revised IRR Issue/s Revision Different guidelines for alternative method of procurement Issuance of Annex “H” of the 2016 Revised IRR of RA 9184. Consolidated Guidelines for the following Alternative Methods of Procurement: Various 2. Repeat Order interpretations of stakeholders on the procedures of AMPs 1. Direct Contracting; 3. Shopping 4. Negotiated Procurement (Two Failed Biddings; Emergency Cases; Take-Over of Contracts; Adjacent/Contiguous; Agency-to-Agency; Scientific, Scholarly, Artistic Works etc. ; Highly Technical Consultants; and Lease of Real Property and Venue) Impact Single reference on the procurement procedures and requirements for the commonlyresorted Alternative Modalities 92

Annex “H” of the 2016 Revised IRR Issue/s Revision The number of a. Shopping 52. 1(a) and Emergency quotation that Procurement– send at least 1 RFQ the BAC has to obtain, in order to b. Shopping 52. 1(b) – send at least 3 RFQs, receive proceed with at least 3 quotations the negotiation c. Two Failed Biddings, Small Value Procurement, Lease of Real Property/Venue send at least 3 RFQs, receive at least 1 quotation will suffice 93

Annex “H” of the 2016 Revised IRR Issue/s Revision 25% threshold requirement is removed, provided that 25% threshold the servicing agency has the mandate and absorptive requirement capacity to undertake the project for Agency to Agency procurement Procurement Negotiated Procurement under Section 53. 10 on lease of Publicof real property and venue for public-use cover both owned real publicly-owned and privately-owned. property/ven ue for public use Thresholds for SH & SVP Doubled the thresholds for all PEs, except for Barangays (maintained at P 50, 000) 94

THANK YOU… Atty. Dennis S. Santiago Executive Director V, GPPB-TSO l Telephone/Fax: (+632) 900 -6741 to 44 l Website: http: //www. gppb. gov. ph l Email: gppb@gppb. gov. ph