Salient IRR Revisions
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Transcript of Salient IRR Revisions
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Salient IRR RevisionsStandardized Bidding Procedures
Goods, Infra, Consulting
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IRR Revisions: Eligibility Requirements (Sec. 23)
Legal Documents DTI / SEC / CDA Registration Mayor’s permit for principal place of business
Technical Documents Statement of all on-going and completed contracts PCAB license and registration (Infra only)
Unless otherwise stated in treaty or international or executive agreement
Statement of the consultant’s nationality and Key staff’s confirmation that they are registered professionals (consulting only)
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IRR Revisions: Eligibility Requirements (Sec. 23)
Financial Documents
Latest Audited Financial Statements
NFCC computation or Credit Line Commitment from a universal or commercial bank (goods and infra only) For LGUs, other banks authorized by BSP to issue said instrument
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IRR Revisions: Eligibility Requirements
Class “B” Documents: If Joint Venture - JVA If no JVA, sworn statements by each partner that they will
enter into and abide by provisions of the JVA if awarded the contract
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IRR Revisions: Eligibility Requirements (Sec. 23)
If foreign bidder - Submit equivalent documents issued by country Accompanied by English translation certified by appropriate
embassy or consulate in the Philippines
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IRR Revisions: Eligibility Criteria (Sec. 23)
Legal Eligibility (Goods) General rule: 60% Filipino Foreign bidders eligible allowed –
If stated in treaty, international or executive agreement National of a country offering reciprocity rights to Filipinos Goods not available from local suppliers To prevent situations that defeat competition or restrain
trade
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IRR Revisions: Eligibility Criteria (Sec. 23)
Legal Eligibility (Infra) General rule: 75% Filipino (LOI 630) If joint venture, less than 75% is allowed if -
Not less than 25% Filipino Structures to be built require techniques not possessed by
75% Filipinos Foreign contractors allowed if stated in treaty or
international or executive agreement
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IRR Revisions: Goods Eligibility Criteria (Sec. 23)
Technical Eligibility (Goods) - Single Largest Contract
General Rule Exceptions Then require the ff.:
1.Expendable Supplies
• 25% of the ABC
2.Services and Non-expendable Supplies
• 50% of the ABC
If, at the outset and after market research, applying the general rule will likely result to:1.Failure of bidding; or2.Monopoly
a) At least 2 similar contracts aggregate amount at least equivalent to required percentage; and
b) Largest of the similar contracts amounts to at least 50% of required percentage
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IRR Revisions: Eligibility Criteria (Sec. 23)
Technical Eligibility (Infra) Track Record: Single Largest Contract
Retain at 50% But within a period of ten years
For foreign funded procurement, a different track record may be agreed upon
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IRR Revisions: Eligibility Criteria (Sec. 23)
Technical Eligibility (Infra) PCAB License (RA 4566) Satisfactory CPES Rating and/or certificate of
completion and acceptance
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IRR Revisions: Eligibility Criteria (Sec. 23)
Financial Eligibility (Goods and Infra) NFCC at least equal to ABC Credit Line Certificate at least equal to 10% of ABC
Issued by Universal or Commercial Bank For LGUs: other banks certified by BSP as authorized to
issued said CLC Option to submit cash deposit certificate deleted
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IRR Revisions: Submission and Receipt of Bids (Sec. 25)
Two-Envelope System (Eligibility requirements included in the Technical Proposal)
In Infrastructure Projects, Technical (incl. eligibility requirements) and Financial Proposals will now be submitted at the same time
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IRR Revisions: Submission and Receipt of Bids (Sec. 25)
First Envelope Eligibility requirements Bid security Technical specifications (goods)/ Project Requirements (infra) Approach, work plan and schedule (consulting only) List of key personnel (consulting only) Omnibus sworn statement
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IRR Revisions: Submission and Receipt of Bids (Sec. 25)
Second Envelope Financial information/documents specified in the
Philippine Bidding Documents
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IRR Revisions: Notice of Award (Sec. 37)
Conditioned on the following: If joint venture, submission of JVA Posting of Performance Security Signing of Contract If required, approvals by higher authority
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IRR Revisions: Domestic and Foreign Goods (Sec. 43)
Requires procuring entity to give preference to domestic entities and to materials and supplies produced, made, and manufactured in the Philippines (domestic bidder).
Domestic entities can only claim preference if certified by SEC/DTI/CDA
Domestic bidder can only claim preference if certified by DTI
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IRR Revisions: Domestic and Foreign Goods (Sec. 43)
Domestic entities (Sec. 5 [k]) 75% Filipino Habitually established in business and engaged in the
manufacture or sale of product to be bid In existence for at least 5 consecutive years
Domestic entities can only claim preference if certified by SEC/DTI/CDA
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IRR Revisions: Domestic and Foreign Goods (Sec. 43)
Domestic bidder (Sec. 5 [j]) Any person or entity Offering articles/materials/supplies
If unmanufactured, grown or produced in the Philippines If manufactured, substantially from those grown or
produced in the Philippines
Domestic bidder can only claim preference if certified by DTI
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IRR Revisions Domestic and Foreign Goods (Sec. 43)
Provides procedures in determining entitlement to domestic preference
Applied only where the lowest bid has a foreign component (foreign bid/entity) and the next lowest bid has a domestic component (domestic bidder/entity)
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SAMPLE APPLICATION OF PREFERENCE
Lowest Calculated Bid Next Lowest Calculated Bid
Foreign Bidder Domestic Bidder/Entity
Bid 2,653,360.00 3,009,492.00
% Preference x 15%
398,004.00
+ 2,653,360.00
Bid as increased 3,051,364.00 3,009,492.00
Result Award to Domestic Bidder/Entity at 2,653,360.00, orAward to Foreign Bidder if Domestic Bidder/Entity refuses
Sample Computation
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IRR Revisions: Warranty Security – Goods (Sec. 62)
Expendable Supplies – 3 months, unless consumed earlier
Non-expendable Supplies – 1 year
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IRR Revisions: Warranty Security – Infra (Sec. 62)
Warranty period vs. Warranty security period Warranty security period reduced to 1 year Liability per stage
From project construction to final acceptance From project completion to final acceptance From final acceptance to warranty security period
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IRR Revisions: Liquidated Damages (Sec. 68)
Adopted formula of Goods One-tenth of one percent (1%) of the cost of the
unperformed portion for every day of delay
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IRR Revisions: Advance Payment for Goods
Goods supplied from abroad 10% advance payment allowed Upon submission of a bank guarantee
Equivalent amount Valid until goods are delivered
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