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MODES OF PROCUREMENT ALTERNATIVE METHODS OF PROCUREMENT
ALTERNATIVE METHODS General Rule: Public Bidding APP provides sufficient lead time for bidding Resort to Alternative Methods allowed Highly exceptional cases To promote economy and efficiency Justified by conditions specified in IRR Recommended by BAC Approved By HOPE
ALTERNATIVE METHODS 5 Alternative Methods of Procurement: Limited Source Bidding Direct Contracting Repeat Order Shopping Negotiated Procurement
DIRECT CONTRACTING Applicability: Goods Conditions: Items of proprietary nature from proprietary source Critical components from a specific supplier to hold a contractor to guarantee its project performance • Items sold by an exclusive manufacturer or dealer ü no other suppliers selling it at lower prices ü no suitable substitute can be obtained at more ü advantageous terms to the Government Deleted the word “plant” – Resolution No. 11 - 2009
REPEAT ORDER Applicability: Goods Conditions: 1. Same or lower unit prices, provided that such prices are still the most advantageous to the GOP after price verification 2. No splitting of contracts 3. Availed of within 6 mos. from the contract effectivity date stated in the NTP arising from the original contract, except in cases duly approved by the GPPB 4. Not to exceed 25% of the quantity of each item 5. Original contract awarded through competitive bidding
SHOPPING & SMALL VALUE Applicability of Shopping [§§ 52. 1(a) and (b)]: Goods Conditions [Shopping under § 52. 1(a)]: 1. There is an unforeseen contingency requiring immediate purchase 2. Amount does not exceed the threshold (Ph. P 50, 000. 00, Annex H, IRR of R. A. 9184) Conditions [Shopping under § 52. 1(b)]: 1. Procurement of ordinary or regular office supplies and equipment not available in PS-DBM 2. Amount does not exceed the threshold (Ph. P 50, 000. 00, Annex H, IRR of R. A. 9184)
SHOPPING & SMALL VALUE Applicability of Small Value Procurement [§ 53. 9]: ALL Conditions: 1. Procurement does not fall under Shopping [§ 52] 2. Amount does not exceed the threshold (Ph. P 50, 000. 00, Annex H, IRR of R. A. 9184)
SHOPPING & SMALL VALUE ◦ Resolution No. 09 – 2009, dated 17 Dec. 2009 General Guidelines: § Decision to resort to shopping/small value procurement done in context of APP § Splitting of contracts is strictly prohibited § After approval, BAC may delegate execution to the appropriate bureau, committee or support unit.
SHOPPING & SMALL VALUE Prepare RFQ Procedural Guidelines Send RFQ to at least 3 suppliers [may be 1 in case of 52. 1(a)] Extend deadline if no quotation is received Award to LCB/HRB that complies with specs and ABC Prepare Abstract of Quotations
SHOPPING & SMALL VALUE ◦ Resolution No. 09 – 2009, dated 17 Dec. 2009 Procedural Guidelines: § RFQ should indicate the following: a. Specification; b. Quantity; c. ABC; d. Terms and conditions of the item to be procured; and e. Manner by which price quotation must be submitted (i. e. open or sealed quotations)
SHOPPING & SMALL VALUE Procedural Guidelines § Information relating to examination, evaluation & comparison of price quotations shall be kept confidential & should not be disclosed to any other party except to those officially concerned until award § Post RFQ for 7 cd in the website of Phil. GEPS and procuring entity concerned, if available, and at any conspicuous places; Exceptions: When there is an unforeseen contingency requiring immediate purchase under Sec. 52. 1(a) RFQs with ABCs equal to Php 50, 000. 00 and below.
SHOPPING & SMALL VALUE Procedural Guidelines: § Post awards in the website of Phil. GEPS and procuring entity, if available, and at any conspicuous place except those with ABCs equal to Php. 50, 000. 00 and below § Procuring entity must validate whether it is entering into a contract with a technically, legally and financially capable supplier, contractor or consultant by requiring the submission of relevant documents or through other means.
NEGOTIATED PROCUREMENT Applicability: ALL Conditions: 1. Two Failed Biddings 2. Emergency Cases 3. Take-Over of Contracts 4. Adjacent or Contiguous 5. Agency-to-Agency 6. Procurement Agents 7. Highly Technical 8. Defense Cooperation Agreement 9. Lease of Real Property or Venue 10. Small Value 11. NGO Participation 12. Community Participation 13. UN Agencies
NEGOTIATED PROCUREMENT TWO FAILED BIDDINGS Applicability: ALL Conditions: 1. Two failed biddings 2. Mandatory review of the following: ü Minimum technical specifications ü ABC, which may be adjusted up to 20% from last bidding Invite sufficient number to ensure competition Information communicated on an equal basis
NEGOTIATED PROCUREMENT TWO FAILED BIDDINGS Simultaneous negotiations Submission of best and final offer on a specified date Successful offer to be selected: Meet minimum technical specifications Does not exceed ABC Observers shall be invited in all stages
NEGOTIATED PROCUREMENT EMERGENCY CASES Applicability: ALL Conditions: Imminent danger to life or property during a state of calamity When time is of the essence arising from natural or man-made calamities Other causes where immediate action is necessary: ü To prevent damage to or loss of life or property ü To restore vital public services, infrastructure facilities, and other public utilities Negotiate with any supplier, contractor, or consultant with technical, legal, and financial capability
NEGOTIATED PROCUREMENT TAKE – OVER OF CONTRACTS Applicability: ALL Conditions: Rescinded or terminated contract Immediate action is necessary: ü To prevent damage to or loss of life or property ü To restore vital public services, infrastructure facilities, and other public utilities Negotiate starting with the 2 nd LCB or HRB at the bidder’s original bid price, then to the next if negotiation fails If negotiation fails, invite a short list of at least 3 to submit bids and negotiate starting with the LCB or HRB
NEGOTIATED PROCUREMENT AGENCY TO AGENCY Applicability: ALL Conditions: 1. Cost-benefit analysis indicating A-to-A is more efficient and economical 2. A-to-A does not exceed 25% of PE’s total budget for each category (goods, infra, consulting) 3. Servicing agency has mandate to undertake the project 4. Servicing agency owns or has access to necessary tools required for the project Other requirements provided in Implementing Guidelines on Agency-to-Agency Arrangements (GPPB Resolution 18 -2007)
NEGOTIATED PROCUREMENT AGENTS Applicability: ALL Condition: • HOPE has determined that PE does not have procurement proficiency or capability to undertake a particular procurement Actions available: • Request other GOP agencies to undertake such procurement for them • Recruit and hire consultants or procurement agents to assist them directly and/or train their staff in the management of the procurement function
NEGOTIATED PROCUREMENT COMMUNITY PARTICIPATION Applicability: ALL Conditions: 1. In the interest of project sustainability or to achieve certain specific social objectives 2. PE to propose procedures, specifications, and contract packaging for GPPB approval
ALTERNATIVE METHODS Other Terms and Conditions: Most advantageous price for government should be obtained (Sec. 48. 1) Splitting of contracts strictly prohibited (Sec. 54. 1) Posting NOT necessary, except: • Shopping [Sec. 52. 1(b)] ü Except: Ph. P 50, 000 and below • Small Value Procurement [Sec. 53. 9] ü Except: Ph. P 50, 000 and below • Two Failed Biddings [Sec. 53. 1] • NGO Participation [Sec. 53. 11] • Lease of Real Property [Sec. 53. 10], if > Ph. P 50, 000
ALTERNATIVE METHODS ALL awards should be posted, except • Shopping and Small Value Procurement with ABC of Ph. P 50, 000 and below Bid security NOT necessary, except in Limited Source Bidding Performance and warranty securities necessary, except: • Shopping [Sec. 52] • Emergency Cases [Sec. 53. 2] • Small Value Procurement [Sec. 53. 9] • Lease of Real Property [Sec. 53. 10] • Procurement from UN agencies [Sec. 53. 13]
BY ADMINISTRATION Applicability: Infrastructure Projects Conditions: 1. Implementing Agency (IA) must have a track record of having completed or supervised a project by admin or by contract, similar to and with a cost of at least 50% of the project at hand, and 2. IA owns or has access from other government agencies to necessary tools and construction equipment required for the project Other requirements provided in Guidelines for the Implementation of Infrastructure Projects By Administration(GPPB Resolution 18 -2006, as amended by GPPB Resolution No. 07 – 2009)
BY ADMINISTRATION Increase in thresholds in the 2009 & 2010 GAA 1. Any project costing < Php. 20, 000. 00 may be undertaken by administration or force account 2. Project costing over Php. 20, 000. 00 should obtained the ff: Authority from the DPWH Secretary - Php. 20, 000. 00 - Php. 50, 000. 00), Authority from the President of the Philippines, upon the DPWH Secretary’s favorable recommendation more than Php. 50, 000. 00.
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