Alternative Methods of Procurement
Transcript of Alternative Methods of Procurement
MODES OF MODES OF PROCUREMENTPROCUREMENT
ALTERNATIVE METHODS ALTERNATIVE METHODS OF PROCUREMENTOF PROCUREMENT
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
Types of Alternative Methods ◦ Limited Source Bidding◦ Direct Contracting◦ Repeat Order◦ Shopping◦ Negotiated Procurement
ALTERNATIVE METHODSALTERNATIVE METHODS
LIMITED SOURCE BIDDING
Applicability:◦ Goods◦ Consulting services
Conditions:◦ Highly specialized types where only a few bidders are
known to be available
◦ Major plant components beneficial to limit bidding to known qualified bidders to maintain uniform quality and performance of the plant
LIMITED SOURCE BIDDING
Pre-selection Procedure (GPPB Res. 05-2011, dated 25 February 2011)
◦ BAC shall prepare a list of suppliers/consultants which must include all the industry players on the goods/consulting service to be procured.
◦ In preparing the list, BAC, with the TWG assistance, shall adopt a set of criteria to be used as basis in evaluating the capability of the entities taking into consideration the following:
Capability and resources to perform the contract taking into account their experience and past performance on similar contracts;
Capabilities with respect to personnel, equipment, or manufacturing facilities; and
Financial position.
LIMITED SOURCE BIDDING
Pre-selection Procedure
◦ BAC shall evaluate and submit the recommended pre-selected list to the HOPE for approval.
◦ The pre-selected list shall include: a) Technical specifications/TOR, and b) Criteria used by the PE for the evaluation of the
pre-selected suppliers /consultants.
◦ Pre-selected list shall be considered specific to the project unless adopted by other procuring entities for their respective procurement activities.
LIMITED SOURCE BIDDING
Pre-selection Procedure
◦ Upon HOPE approval, PE shall transmit the pre-selected list to the GPPB. The list must be accompanied with a HOPE certification:
a) justifying the resort to Limited Source Bidding, andb) verifying the compliance with the criteria previously
set.
◦ GPPB-TSO shall acknowledge receipt of the pre-selected list and shall post it in the GPPB or PhilGEPS website for the purpose of transparency.
◦ Upon receipt of the GPPB acknowledgement letter, PE shall post the procurement activity to be undertaken through Limited Source Bidding in the PhilGEPS website.
LIMITED SOURCE BIDDING
Pre-selection Procedure
◦ PE shall then conduct competitive bidding, except advertisement of the bid opportunity in a newspaper of general nationwide circulation.
◦ Notwithstanding the pre-selected list, prospective bidders not included in the list are not precluded from participating in the conduct of Limited Source Bidding.
◦ GPPB-TSO will not validate the qualifications of the suppliers/consultants contained in the list.
◦ Concerns on the propriety of the list shall be directed to the PE that issued/adopted the list for a particular procurement activity following the protest mechanism under Section 55 of the IRR of RA 9184.
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 no other suppliers selling it at lower prices no suitable substitute can be obtained at more advantageous terms to the Government
Deleted the word “plant” – Resolution No. 11 - 2009
REPEAT ORDER Applicability:◦ Goods
Conditions:o Same or lower unit prices, provided that such prices are
still the most advantageous to the GOP after price verification
o No splitting of contracts
o Availed of w/in 6 mos. from the contract effectivity date stated in the NTP arising from the original contract, except in cases duly approved by the GPPB
o Not to exceed 25% of the quantity of each item
o Original contract awarded through competitive bidding
NPM No. 03-2010
◦ What stage in the procurement process can repeat order be considered to be within the reglamentary period of 6 mos. as provided under Section 51 (c) of the of the revised IRR) of RA 9184?
REPEAT ORDER
NPM No. 03-2010
◦ The reckoning period for computing the 6 mo. period is the effectivity date of the contract as stated in the Notice to Proceed (NTP) – Sec. 51, IRR of R.A. 9184.
◦ The contract effectivity date, as provided in the NTP, shall not be later than 7 cd from its issuance (Sec. 37.4.1 of the IRR)
REPEAT ORDER
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
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
Applicability of Small Value Procurement [§53.9]: ALL
Conditions:o Procurement does not fall under Shopping [§52]
o Amount does not exceed the threshold
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
Procedural Guidelines
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 quotations shall be kept confidential
Post RFQs for 7 cd in the following:
a) website of PhilGEPS and procuring entity, and
b) any conspicuous place
Except: When there is an unforeseen contingency
requiring immediate purchase under Sec. 52.1(a)
RFQs with ABCs < PhP. 50,000
SHOPPING & SMALL VALUE
Procedural Guidelines:
Post awards in the following:
a) website of PhilGEPS and procuring entity, if
available, and
b) any conspicuous place
Except: RFQs with ABCs < PhP. 50,000
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.
SHOPPING & SMALL VALUE
NPM No. 16-2011
◦ Whether award of the contract can be made to the sole supplier who submitted a quotation/proposal for a procurement activity through Small Value Procurement (SVP)?
SMALL VALUE
NPM No. 16-2011
◦ Award of the contract may be made even if only one supplier submitted a quotation/proposal, provided that the procuring entity invited at least 3 suppliers to submit a quotation and provided further that the submission complies with the specifications and terms and conditions required by the PE.
SMALL VALUE
◦ Format changes
◦ Alignment with international best practices & addresses concerns raised by stakeholders
Clearer rules on Negotiated Procurement due to 2-Failed Biddings.
Recognized additional instances of Negotiated Procurement
NEGOTIATED PROCUREMENT
NEGOTIATED PROCUREMENTTWO FAILED BIDDINGS
Applicability: ALL
Conditions:1. Two failed biddings2. Mandatory review of the following:
Minimum technical specifications ABC, which may be adjusted up to 20% from
last bidding
Invite sufficient number to ensure competition
Information communicated on an equal basis
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 PROCUREMENTTWO FAILED BIDDINGS
Applicability: ALL
Any of the following 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:
To prevent damage to or loss of life or property 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 PROCUREMENTEMERGENCY CASES
Applicability: ALL
Conditions:◦ Rescinded or terminated contract◦ Immediate action is necessary:
To prevent damage to or loss of life or property To restore vital public services, infrastructure
facilities, and other public utilities
Negotiate starting with the 2nd LCB/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 PROCUREMENTTAKE – OVER OF CONTRACTS
Applicability: Infra and Consulting
Conditions:o Subject contract is adjacent or contiguous to an on-
going infra or consultingo Original contract is a result of competitive biddingo Subject contract has similar/related scopes of worko Within the contractor’s/consultant’s capacityo Same prices or lower unit prices as the original contract
less mobilization costo Amount does not exceed amount of the on-going projecto No negative slippageo Negotiations commenced before expiry of original
contract
NEGOTIATED PROCUREMENTADJACENT OR CONTIGUOUS
Applicability: ALL
Conditions:o Cost-benefit analysis indicating A-to-A is more efficient
and economicalo A-to-A does not exceed 25% of PE’s total budget for
each category (goods, infra, consulting)o Servicing agency has mandate to undertake the projecto 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 PROCUREMENTAGENCY TO AGENCY
NPM No. 04-2010
◦ Can a GOCC having its own charter, directly engage its wholly-owned subsidiary created under the Corporation Code under Section 53.5 [Negotiated Procurement (Agency-to-Agency Agreement)] of the revised IRR) of RA 9184?
NEGOTIATED PROCUREMENTAGENCY TO AGENCY
NPM No. 04-2010
◦ As a general rule, GOCCs formed under the Corporation Code cannot enter into Agency-to-Agency Agreements
◦ Except when a parent-subsidiary relationship exists between the 2 GOCCs. As long as the parent GOCC owns directly or indirectly more than half of the voting power of its subsidiary, then it may directly engage the services of said subsidiary.
NEGOTIATED PROCUREMENTAGENCY TO AGENCY
NEGOTIATED PROCUREMENTAGENCY TO AGENCY
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 PROCUREMENTPROCUREMENT AGENTS
Applicability: Consulting Services
Conditions:o Individual consultant
o Primary consideration for hiring the individual is trust and confidence
o Work involves:o Highly technical or proprietaryo Primarily confidential or policy determining
o Term is, at the most, 6 months, renewable at the option of the appointing HOPE, but in no case to exceed the term of the latter
NEGOTIATED PROCUREMENTHIGHLY TECHNICAL CONSULTANTS
Applicability: Goods (Real estate and Venue)
Conditions:o Cost-benefit analysis indicating leasing privately-owned
real estate or venue is more efficient and economical
o APP reflect the proposed lease
o Selection to follow the guidelines (GPPB Resolution 08-2009)
Eligibility documents need not be submitted, but PE must validate whether lessor is technically, legally, and financially capable through other means
Lease contracts costing > PhP50,000 should be posted in the PhilGEPS
NEGOTIATED PROCUREMENTLEASE OF REAL PROPERTY/VENUE
Implementing Guidelines for Lease of Privately-
Owned Real Estate and Venue
(Resolution No. 08 – 2009, dated November 2009)
Guiding Principles:
More preferred to lease from government
Meticulous selection of location taking into consideration the ff:
◦ Need for prudence and economy in government service◦ Suitability of area (level of security/nature of event)
NEGOTIATED PROCUREMENTLEASE OF REAL PROPERTY/VENUE
Implementing Guidelines for Lease of Privately-
Owned Real Estate and Venue (Cont.)
Guiding Principles: Rental Rates should be :
◦ Reasonable (Lessor gets an equitable return of capital or investment. of what the Lessee gets in terms of accommodation, facility, amenities, and convenience)
◦ Within prevailing market prices
NEGOTIATED PROCUREMENTLEASE OF REAL PROPERTY/VENUE
Implementing Guidelines for Lease of Privately-
Owned Real Estate and Venue (Cont.)
Guiding Principles: Objectives and purpose of the lease contract do not
constitute an unnecessary, excessive, extravagant, or unconscionable expenditure.
NEGOTIATED PROCUREMENTLEASE OF REAL PROPERTY/VENUE
Implementing Guidelines for Lease of Privately-Owned
Real Estate and Venue (Cont.)
Procedural Requirements: Conduct of a cost-benefit analysis
Select location◦ End-user’s recommendation, justifications, prevailing rates of
lease/rent within vicinity
Set ABC◦ Midpoint of range based on prevailing lease rates
NEGOTIATED PROCUREMENTLEASE OF REAL PROPERTY/VENUE
Implementing Guidelines for Lease of Privately-
Owned Real Estate and Venue (Cont.)
Procedural Requirements: Update APP, if necessary
Delegate (or not) selection of lessor to a bureau, committee or support unit duly authorized by the BAC
NEGOTIATED PROCUREMENTLEASE OF REAL PROPERTY/VENUE
Implementing Guidelines for Lease of Privately-
Owned Real Estate and Venue (Cont.)
Procedural Requirements: Eligibility documents need not be submitted .
Validate whether Lessor is technically, legally and financially capable through other means.
Post award
Except lease contracts amounting to Php. 50,000 and
below
NEGOTIATED PROCUREMENTLEASE OF REAL PROPERTY/VENUE
Implementing Guidelines for Lease of Privately-
Owned Real Estate and Venue (Cont.)
Specific Requirements for Venue: Technical specifications shall be prepared taking
into consideration rating factors provided under Appendix C (availability, location and site condition, venue and neighborhood data)
At least 3 quotations shall be obtained within the vicinity of the selected location.
NEGOTIATED PROCUREMENTLEASE OF REAL PROPERTY/VENUE
Implementing Guidelines for Lease of Privately-Owned Real Estate and Venue (Cont.)
Specific Requirements for Venue:
Award of contract shall be given to the lessor having the LCRB; Compliance rating with technical specifications may be conducted through ocular inspection, interviews, or other forms of due diligence.
NEGOTIATED PROCUREMENTLEASE OF REAL PROPERTY/VENUE
Applicability: ALL
Condition:o Appropriation law or ordinance earmarks an amount to
be contracted to NGOs
PE may opt to conduct public bidding or negotiated procurement for the selection of NGO, subject to the rules provided in the guidelines (GPPB Resolution 12-2007)
NEGOTIATED PROCUREMENTNGO PARTICIPATION
Applicability: ALL
Conditions:o In the interest of project sustainability or to achieve
certain specific social objectives
o PE to propose procedures, specifications, and contract packaging for GPPB approval
NEGOTIATED PROCUREMENTCOMMUNITY PARTICIPATION
Applicability: ALL
Conditions:o Procure from UN Agencies
o Small quantities of off-the-shelf goods, primarily in the fields of education and health
o Specialized products where the number of suppliers is limited (e.g., vaccines or drugs)
NEGOTIATED PROCUREMENTUN AGENCIES
Applicability: Infrastructure Projects
Conditions:o 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
o 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
◦ Any project costing < PhP. 20,000,000.00 may be undertaken by administration or force account
◦ Project costing > PhP. 20,000,000.00 should obtain the ff:
Authority from the DPWH Secretary - PhP. 20,000,000.00 - PhP. 50,000,000.00)
Authority from the President of the Philippines, upon the DPWH Secretary’s favorable recommendation - > PhP. 50,000,000.00.
BY ADMINISTRATION
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)]
Except: PhP. 50,000 and below• Small Value Procurement [Sec. 53.9]
Except: PhP. 50,000 and below• Two Failed Biddings [Sec. 53.1]• Lease of Real Property [Sec. 53.10], if > PhP50,000 • NGO Participation
ALTERNATIVE METHODSALTERNATIVE METHODS
ALL awards should be posted, except• Shopping and Small Value Procurement with an ABC of
PhP50,000 and below• Lease Contracts with an ABC of PhP50,000 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]• NGO Participation • Procurement from UN agencies [Sec. 53.13]
ALTERNATIVE METHODSALTERNATIVE METHODS
THANK YOUTHANK YOU
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