ANNEX H THRESHOLDS FOR SHOPPING AND SMALL VALUE … · 2016-07-22 · ANNEX H THRESHOLDS FOR...

ANNEXHTHRESHOLDSFORSHOPPINGANDSMALLVALUEPROCUREMENT

1.Shopping[Section52.1.(a)].Whenthereisanunforeseencontingencyrequiringimmediatepurchase,theamountshallnotexceedthefollowing:a)ForNGAs,GOCCs,GFIs,andSUCs,OneHundredThousandPesos(P100,000).b)ForLGUs,inaccordancewiththefollowingschedule:DOFClassificationofLGUsMaximumAmount(inPhilippinePeso)ProvinceCityMunicipality1stClass100,000100,00050,0002ndClass100,000100,00050,0003rdClass100,00080,00050,0004thClass80,00060,00050,0005thClass60,00050,00050,0006thClass50,00050,00050,000Inthecaseofbarangays,FiftyThousandPesos(P50,000).

2.Shopping[Section52.1.(b)]andSmallValueProcurement[Section53.9].Procurementshallnotexceedthefollowing:a)ForNGAs,GOCCs,GFIs,andSUCs,FiveHundredThousandPesos(P500,000).b)ForLGUs,inaccordancewiththefollowingschedule:DOFClassificationofLGUsMaximumAmount(inPhilippinePeso)ProvinceCityMunicipality1stClass500,000500,000100,0002ndClass500,000500,000100,0003rdClass500,000400,000100,0004thClass400,000300,00050,0005thClass300,000200,00050,0006thClass200,000100,00050,000Inthecaseofbarangays,FiftyThousandPesos(P50,000).

3.ForForeign-fundedProcurement,thethresholdsshallbedeterminedineachcase,takingintoaccountthenatureofthegoods,works,orassignment,byagreementbetweentheGOPandtheforeigngovernment/foreignorinternationalfinancinginstitution.

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a)Procurementforgoods,infrastructureprojects,andconsultingservicesfundedfromForeignGrantscoveredbyR.A.8182,asamendedbyR.A.8555,entitled"AnActExcludingOfficialDevelopmentAssistance(ODA)fromtheForeignDebtLimitinordertoFacilitatetheAbsorptionandOptimizetheUtilizationofODAResources,AmendingforthePurposeParagraph1,Section2ofRepublicActNo.4860,AsAmended",unlesstheGOPandtheforeigngrantor/foreignorinternationalfinancinginstitutionagreeotherwise;

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b)AcquisitionofrealpropertywhichshallbegovernedbyR.A.8974,entitled"AnActtoFacilitatetheAcquisitionofRight-of-WaySiteorLocationforNationalGovernmentInfrastructureProjectsandforOtherPurposes,"andotherapplicablelaws;and

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c)Public-PrivatesectorinfrastructureordevelopmentprojectsandotherprocurementcoveredbyR.A.6957,asamendedbyR.A.7718,entitled"AnActAuthorizingtheFinancing,Construction,OperationandMaintenanceofInfrastructureProjectsbythePrivateSector,andforOtherPurposes,"asamended:Provided,however,ThatfortheportionsfinancedbytheGOP,regardlessofsourceoffunds,whetherlocalorforeign,theprovisionsofthisIRRshallapply.(1a)

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a)Act.ReferstoR.A.9184,entitled"AnActProvidingfortheModernization,StandardizationandRegulationoftheProcurementActivitiesoftheGovernmentandforotherPurposes,"otherwiseknownastheGovernmentProcurementReformAct.

Section5.DefinitionofTerms

b)ApprovedBudgetfortheContract.ReferstothebudgetforthecontractdulyapprovedbytheHeadoftheProcuringEntity,asprovidedforintheGeneralAppropriationsAct(GAA),continuing,andautomaticappropriations,inthecaseofnationalgovernmentagencies(NGAs);thecorporatebudgetforthecontractapprovedbythegoverningboard,pursuanttoExecutiveOrderNo.518,seriesof1979(E.O.518),inthecaseofGOCCsandGFIs,andR.A.8292inthecaseofSUCs;thebudgetapprovedbytheSanggunianinthecaseofLGUs;andtheestimatedcontractcostinthecaseofForeign-fundedProcurement.Forpurposesof,andthroughoutthisIRR,theterms"ABC","ApprovedBudgetfortheContract",and"ApprovedBudget"shallhavethesamemeaningandshallbeusedinterchangeably.ForForeign-fundedProcurement,theestimatedcontractcostfortheprojectreferstothecostestimatepreparedbytheprocuringentityandapprovedbytheforeigngovernment/foreignorinternationalfinancinginstitutionasspecifiedintheTreatyorInternationalorExecutiveAgreement.(a)


c)BAC.ReferstotheBidsandAwardsCommitteeestablishedinaccordancewithRuleVofthisIRR.


d)Bid.ReferstoasignedofferorproposaltoundertakeacontractsubmittedbyabidderinresponsetoandinconsonancewiththerequirementsoftheBiddingDocuments.Forpurposesof,andthroughoutthisIRR,theterm"Bid"shallbeequivalenttoandbeusedinterchangeablywith"Proposal"and"Tender".


e)Bidder.Referstoaneligiblecontractor,manufacturer,supplier,distributorand/orconsultantcompetingfortheawardofacontractinanyprocurementbytheGOP.Acontractor,manufacturer,supplier,distributororconsultantissaidtobeeligibleifitmeetsalltheeligibilityrequirementsissuedbytheprocuringentity.


f)BiddingDocuments.Refertothedocumentsissuedbytheprocuringentityasthebasisforbids,furnishingallinformationnecessaryforaprospectivebiddertoprepareabidfortheinfrastructureprojects,goodsand/orconsultingservicesrequiredbytheprocuringentity.


g)Common-UseSupplies.Refertothosegoods,materialsandequipmentthatareusedintheday-to-dayoperationsofProcuringEntitiesintheperformanceoftheirfunctions.ForthepurposeofthisIRR,common-usesuppliesshallbethoseincludedintheElectronicCatalogueofthePhilGEPS.(a)


h)CompetitiveBidding.Referstoamethodofprocurementwhichisopentoparticipationbyanyinterestedpartyandwhichconsistsofthefollowingprocesses:advertisement,pre-bidconference,eligibilityscreeningofprospectivebidders,receiptandopeningofbids,evaluationofbids,post-qualification,andawardofcontract.Forpurposesof,andthroughoutthisIRR,theterms"CompetitiveBidding"and"PublicBidding"shallhavethesamemeaningandshallbeusedinterchangeably.


i)ConsultingServices.RefertoservicesforinfrastructureprojectsandothertypesofprojectsoractivitiesoftheGOPrequiringadequateexternaltechnicalandprofessionalexpertisethatarebeyondthecapabilityand/orcapacityoftheGOPtoundertakesuchas,butnotlimitedto:(i)advisoryandreviewservices;(ii)preinvestmentorfeasibilitystudies;(iii)design;(iv)constructionsupervision;(v)managementandrelatedservices;and(vi)othertechnicalservicesorspecialstudies.GeneralprinciplesonconsultingservicesareprovidedforinAnnex"B"ofthisIRR.(a)


j)DomesticBidder.Referstoanypersonorentityofferingunmanufacturedarticles,materialsorsuppliesofthegrowthorproductionofthePhilippines,ormanufacturedarticles,materials,orsuppliesmanufacturedortobemanufacturedinthePhilippinessubstantiallyfromarticles,materials,orsuppliesofthegrowth,production,ormanufacture,asthecasemaybe,ofthePhilippines.(n)


k)DomesticEntity.ReferstoanindividualorasoleproprietorwhoisacitizenofthePhilippinesorapartnership,corporation,cooperative,orassociationdulyorganizedunderthelawsofthePhilippinesandofwhichatleastseventyfivepercent(75%)oftheinterestoroutstandingcapitalstockbelongstocitizensofthePhilippines,habituallyestablishedinbusinessandhabituallyengagedinthemanufactureorsaleofthemerchandisecoveredbyhisbid,andthebusinesshasbeeninexistenceforatleastfive(5)consecutiveyearspriortotheadvertisementand/orpostingoftheInvitationtoBid.(n)


l)ExecutiveAgreements.RefertoInternationalAgreementsexceptthattheydonotrequirelegislativeratification.(n)


m)ExpendableSupplies.Refertoarticleswhicharenormallyconsumedinusewithinone(1)yearorconvertedintheprocessofmanufactureorconstruction,orthosehavingalifeexpectancyofmorethanone(1)yearbutwhichshallhavedecreasedsubstantiallyinvalueafterbeingputtouseforonlyone(1)year(e.g.,medicines,stationery,fuel,andspareparts).(n)


n)ForeignBid.Referstoanyofferofarticles,materialsorsuppliesnotmanufacturedornottobemanufacturedinthePhilippines,substantiallyfromarticles,materials,orsuppliesofthegrowth,production,ormanufacture,asthecasemaybe,ofthePhilippines.(n)


o)Foreign-fundedProcurement.Referstotheacquisitionofgoods,consultingservices,andthecontractingforinfrastructureprojectsbytheGOPwhicharewhollyorpartlyfundedbyForeignLoansorGrantspursuanttoaTreatyorInternationalorExecutiveAgreement.Forpurposesof,andthroughoutthisIRR,theterm"foreignfundedprocurement"shallhavethesamemeaningasandshallbeusedinterchangeablywith"foreign-fundedprojects"or"foreign-assistedprojects".(n)


p)ForeignGrants.Refertograntswithnorepaymentobligationsandareprovidedinmonetaryform,goods,works,andconsultancyservices,amongothers.(n)


q)ForeignLoans.Refertoloans,credits,andindebtednesswithprivateforeignbanksorwithforeigngovernments,agencies,orinstrumentalitiesofsuchforeigngovernments,foreignfinancialinstitutions,orotherinternationalorganizationswithwhom,orbelongingtocountrieswithwhich,thePhilippineshasdiplomaticrelations,asmaybenecessaryanduponsuchtermsandconditionsasmaybeagreedupon,toenabletheGOPtofinance,eitherdirectlyorthroughanygovernmentoffice,agencyorinstrumentalityoranygovernment-ownedandcontrolledcorporation,industrial,agriculturalorothereconomicdevelopmentpurposesorprojectsauthorizedbylaw.(n)


r)Goods.Refertoallitems,supplies,materialsandgeneralsupportservices,exceptconsultingservicesandinfrastructureprojects,whichmaybeneededinthetransactionofpublicbusinessesorinthepursuitofanygovernmentundertaking,projectoractivity,whetherinthenatureofequipment,furniture,stationery,materialsforconstruction,orpersonalpropertyofanykind,includingnon-personalorcontractualservices,suchas,therepairandmaintenanceofequipmentandfurniture,aswellastrucking,hauling,janitorial,security,andrelatedoranalogousservices,aswellasprocurementofmaterialsandsuppliesprovidedbytheprocuringentityforsuchservices.Theterm"related"or"analogousservices"shallinclude,butnotbelimitedto,leaseorpurchaseofofficespace,mediaadvertisements,healthmaintenanceservices,andotherservicesessentialtotheoperationoftheprocuringentity.


s)GPPB.ReferstotheGovernmentProcurementPolicyBoardcreatedinaccordancewithRuleXXofthisIRR.


t)HeadoftheProcuringEntity.Refersto:

theheadoftheagencythegoverningboardthelocalchiefexecutive


u)InfrastructureProjects.Includetheconstruction,improvement,rehabilitation,demolition,repair,restorationormaintenanceofroadsandbridges,railways,airports,seaports,communicationfacilities,civilworkscomponentsofinformationtechnologyprojects,irrigation,floodcontrolanddrainage,watersupply,sanitation,sewerageandsolidwastemanagementsystems,shoreprotection,energy/powerandelectrificationfacilities,nationalbuildings,schoolbuildings,hospitalbuildings,andotherrelatedconstructionprojectsofthegovernment.Forpurposesof,andthroughoutthisIRR,theterm"InfrastructureProjects"shallhavethesamemeaningas,andshallbeusedinterchangeablywith,"civilworks"or"works".


v)InternationalAgreement.Referstoacontractorunderstanding,regardlessofnomenclature,enteredintobetweentheGOPandanothergovernmentorforeignorinternationalfinancinginstitutioninwrittenformandgovernedbyinternationallaw,whetherembodiedinasingleinstrumentorintwo(2)ormorerelatedinstruments.(n)


w)Non-expendableSupplies.Refertoarticleswhicharenotconsumedinuseandordinarilyretaintheiroriginalidentityduringtheperiodofuse,whoseserviceablelifeismorethanone(1)yearandwhichaddtotheassetsoftheGOP(e.g.,furniture,fixtures,transportandotherequipment).(n)


x)PhilGEPS.ReferstothePhilippineGovernmentElectronicProcurementSystemasprovidedinSection8ofthisIRR.Forpurposesof,andthroughoutthisIRR,theterm"PhilGEPS"shallhavethesamemeaningas,andshallbeusedinterchangeablywith,"G-EPS"referredtointheAct.(a)


y)PhilippineNational.ReferstoanindividualorasoleproprietorwhoisacitizenofthePhilippinesorapartnership,corporation,cooperative,orassociationorganizedunderthelawsofthePhilippinesofwhichatleastsixtypercent(60%)ofthecapitalorinterestisownedbycitizensofthePhilippines.(n)


z)Portal.Referstoawebsitethatintegratesawidevarietyofcontentsforthepurposeofattractingandaggregatingmultipleuserstogetherinacentralvirtualspace.


aa)Procurement.Referstotheacquisitionofgoods,consultingservices,andthecontractingforinfrastructureprojectsbytheprocuringentity.Incaseofprojectsinvolvingmixedprocurements,thenatureoftheprocurement,i.e.,goods,infrastructureprojects,orconsultingservices,shallbedeterminedbasedontheprimarypurposeofthecontract.Procurementshallalsoincludetheleaseofgoodsandrealestate.Withrespecttorealproperty,itsprocurementshallbegovernedbytheprovisionsofR.A.8974andotherapplicablelaws,rulesandregulations.


bb)ProcuringEntity.Referstoanybranch,constitutionalcommissionoroffice,agency,department,bureau,office,orinstrumentalityoftheGOP(NGA),includingGOCC,GFI,SUCandLGUprocuringgoods,consultingservicesandinfrastructureprojects.


cc)Treaties.RefertointernationalagreementsenteredintobytheGOPwhichrequirelegislativeratificationafterexecutiveconcurrence.(n)


dd)UniversalorCommercialBanks.RefertouniversalorcommercialbanksdulyauthorizedunderR.A.8791,otherwiseknownas"TheGeneralBankingActof2000".(n)


7.3.1.Atthestartofeverybudgetperiod,theprocuringentityshallprepareitsproposedbudgetforthesucceedingcalendaryear,takingintoconsiderationthebudgetframeworkforthatyearinordertoreflectitsprioritiesandobjectivesforthebudgetperiod.(n)

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7.3.2.Theend-userunitsoftheprocuringentityshallpreparetheirrespectiveProjectProcurementManagementPlan(PPMP)fortheirdifferentprograms,activities,andprojects(PAPs).ThePPMPshallinclude:a)informationonwhetherPAPswillbecontractedout,implementedbyadministrationinaccordancewiththeguidelinesissuedbytheGPPB,orconsigned;

b)thetypeandobjectiveofcontracttobeemployed;

c)theextent/sizeofcontractscopes/packages;

d)theprocurementmethodstobeadopted,andindicatingiftheprocurementtasksaretobeoutsourcedasprovidedinSection53.6ofthisIRR;

e)thetimescheduleforeachprocurementactivityandforthecontractimplementation;and

f)theestimatedbudgetforthegeneralcomponentsofthecontract.

ForpurposesofthisSection,consignmentreferstoanarrangementwherethefollowingrequisitesarepresent:(a)deliveryofgoodsbytheirowner(consignor),withoutsale,toagovernmentagency(consignee);(b)consigneemusttrytosellthegoodsandremitthepriceofthesoldgoodstotheconsignor;(c)consigneeacceptswithoutanyliabilityexceptforfailuretoreasonablyprotectthemfromdamage;(d)nodisbursementofgovernmentfundsisinvolved;and(e)attermsnotdisadvantageoustotheGOP.(n)

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7.3.3.ThePPMPshallthenbesubmittedtotheprocuringentity'sBudgetOffice.Theprocuringentity'sBudgetOfficeshallevaluateeachend-user'ssubmittedPPMPand,ifwarranted,includeitintheprocuringentity'sbudgetproposalforapprovalbytheHeadoftheProcuringEntity.(n)

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7.3.4.AfterthebudgetproposalhasbeenapprovedbytheHeadoftheProcuringEntityand/orotheroversightbodies,theprocuringentity'sbudgetofficeshallfurnishacopyoftheprocuringentity'sbudgetproposalaswellasthecorrespondingPPMPstotheBACSecretariatforitsreviewandconsolidationintotheproposedAPP.TheproposedAPPshallbeconsistentwiththeprocuringentity'sbudgetproposal.(n)

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7.3.5.AssoonastheGAA,corporatebudget,orappropriationordinance,asthecasemaybe,becomesfinal,theend-userunitsshallreviseandadjustthePPMPtoreflectthebudgetaryallocationfortheirrespectivePAPs.TherevisedPPMPsshallbesubmittedtotheBAC,throughitsSecretariat,forthefinalizationofthemodesofprocurementundertheproposedAPP.TheAPPshallthenbeapprovedinaccordancewithSection7.2ofthisIRR.(n)

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8.1.1.Topromotetransparencyandefficiency,informationandcommunicationstechnologyshallbeutilizedintheconductofprocurementprocedures.Accordingly,thereshallbeasingleportalthatshallserveastheprimarysourceofinformationonallgovernmentprocurement.ThePhilGEPSshallserveastheprimaryanddefinitivesourceofinformationongovernmentprocurement.Forthispurpose,theElectronicProcurementSystem(EPS)establishedinaccordancewithExecutiveOrderNo.322,seriesof2000,andExecutiveOrderNo.40,seriesof2001(E.O.40),shallcontinuetobemanagedbythePS-DBMunderthesupervisionoftheGPPB,asthePhilGEPS,inaccordancewiththisIRR.

8.1.ThePhilGEPS

8.1.2.Totakeadvantageofthesignificantbuilt-inefficienciesofthePhilGEPSandthevolumediscountsinherentinbulkpurchasing,allProcuringEntitiesshallutilizethePhilGEPSfortheprocurementofCommon-UseSuppliesinaccordancewiththerulesandprocedurestobeestablishedbytheGPPB.Withregardtotheprocurementofnon-commonuseitems,infrastructureprojects,andconsultingservices,agenciesmayhireserviceprovidersthroughcompetitivebiddingtoundertaketheirelectronicprocurement:Provided,however,Thattheseserviceprovidersmeetthefollowingminimumrequirements:a)Complywiththeprovisionsb)LinkedtothePhilGEPSc)Allowparallelmanualsubmissiond)EnsurethattheBACe)Itssystemmustbevirus-resilientf)Mustprovidefortheuseofelectronicsignaturesg)Musthavesufficientredundanth)Musthaveprovisionsforlinkagei)Electronicpaymentfacilities

8.1.ThePhilGEPS

8.1.3.TheGPPBshalldetermineandcertifycompliancewiththeaboverequirements.However,theGPPBmaydelegatethistasktotechnicallycapableagencies/offices/unitsoftheGovernment.

8.1.ThePhilGEPS

8.2.1.TheElectronicBulletinBoard

a)ThePhilGEPSshallhaveacentralizedelectronicbulletinboardforpostingprocurementopportunities,notices,awardsandreasonsforaward.AllProcuringEntitiesarerequiredtopostallprocurementopportunities,resultsofbiddingandrelatedinformationinthePhilGEPSbulletinboard.

b)ProcuringEntitiesshallposttheInvitationtoBidforgoodsandinfrastructureprojectsortheRequestforExpressionofInterestforconsultingservices,intheelectronicbulletinboardinaccordancewithSection21ofthisIRR.

8.2.FeaturesofthePhilGEPS

8.2.2.RegistryofManufacturers,Suppliers,Distributors,ContractorsandConsultants

a)ThePhilGEPSshallhaveacentralizedelectronicdatabaseb)Registrationshallentailthesubmissionoftherequirementsc)Manufacturers,suppliers,distributors,contractorsandconsultantsd)ThePhilGEPSshalldenyregistratione)Amanufacturer,supplier,distributor,contractororconsultantapplyingforregistrationf)Registeredmanufacturers,suppliers,distributors,contractorsandconsultantsg)RegistrationwiththePhilGEPS


8.2.3.TheElectronicCatalogue

a)ThePhilGEPSshallhaveacentralizedelectroniccatalogueb)ProcuringEntitiesshallprocurecommon-usegoodsc)ProcuringEntitieswithoutinternetaccessd)TheElectronicCatalogue


8.2.4.AdditionalFeaturesThePhilGEPSshallalsofeatureaVirtualStore,ElectronicPayment,ElectronicBidSubmission,andsuchotherfeaturesasmaybedevelopedinthefuture.

8.2.4.1.VirtualStore8.2.4.2.ElectronicPayment8.2.4.3.ElectronicBidSubmission


8.3.1.AllProcuringEntitiesaremandatedtofullyusethePhilGEPSinaccordancewiththepolicies,rules,regulations,andproceduresadoptedbytheGPPBandembodiedinthisIRR.Inthisconnection,allProcuringEntitiesshallregisterwiththePhilGEPSandshallundertakemeasurestoensuretheiraccesstoanon-linenetworktofacilitatetheopen,speedyandefficienton-linetransmission,conveyanceanduseofelectronicdatamessagesorelectronicdocuments.ThePS-DBMshallassistProcuringEntitiestoensuretheiron-lineconnectivityandhelpintrainingtheirpersonnelresponsiblefortheoperationofthePhilGEPSfromtheirterminals.

8.3.UseofthePhilGEPS

8.3.2.TherulesandregulationsgoverningthemanualmethodofprocurementshallapplywhenevertherulesinthisSectionaresilent.Further,theGPPBisauthorizedtoapprovechangesintheprocurementprocesstoadapttoimprovementsinmoderntechnology,providedthatsuchmodificationsareconsistentwiththeprovisionsofSection3oftheActandthisIRR.

8.3.UseofthePhilGEPS

8.4.1.Pre-bidconferencesshallbeconductedinaccordancewithSection22ofthisIRR:Provided,however,Thattherequirementforface-to-facebiddingconferencemaybereplacedoncevideoconferencing,webcasting,orsimilartechnologybecomesthenorminbusinesstransactionsinthecountry.ProcuringEntitieswithvideoconferencingcapabilitiesthathavemanufacturers,suppliers,distributors,contractorsand/orconsultantsthatalsohavevideoconferencingcapabilitiesmayconducttheirpre-biddingconferenceselectronically.

8.4.Pre-bidConferencesandNoticesunderthePhilGEPS

8.4.2.RequestsforclarificationfrombiddersmaybesentelectronicallytotheBAC.Tobebindingonbidders,clarificationsandamendmentstotheInvitationtoBid/RequestforExpressionofInterestandtotheBiddingDocumentsshallbeintheformofSupplemental/BidBulletinswhichshallbepostedinthePhilGEPSbulletinboard.


8.4.3.TheSupplemental/BidBulletinsmentionedintheimmediatelyprecedingSubsectionaswellasallothernoticestobemadebytheBACtothebiddersorprospectivebiddersshallbepostedinthePhilGEPSbulletinboardandsentelectronicallytothee-mailaddressindicatedinthebidders'registration.


8.5.1.ToensurethewidestdisseminationoftheInvitationtoBid/RequestforExpressionofInterest,manufacturers,suppliers,distributors,contractorsand/orconsultantsshallregisterwiththePhilGEPS.AllProcuringEntitiesalreadymaintaininganelectronicregistryupontheeffectivityofthisIRRshallintegratethesamewiththatofthePhilGEPS.Amanufacturer,supplier,distributor,contractororconsultantdulyregisteredwiththePhilGEPSmayparticipateinaprocurementundertakenbyanyprocuringentity,providedthatthesaidmanufacturer,supplier,distributor,contractororconsultantmaintainsitsregistrationcurrentandupdatedinaccordancewiththeprovisionsofthisIRR,anditsregistrationisproperandrelevanttotheparticulartypeofprocurement.(a),(23a)

8.5.Registration,EligibilityRequirementsandSubmissionofBidsunderthePhilGEPS

8.5.2.EligibilityrequirementsmaybesentelectronicallytoaprocuringentitythroughthePhilGEPS:Provided,however,ThattheprospectivebidderconcernedshallsubmitacertificationtotheBACatleastseven(7)calendardaysbeforethedeadlineforthesubmissionandopeningofthetechnicalandfinancialenvelopesthatthedocumentssubmittedareauthenticcopiesoftheoriginal,complete,andallstatementsandinformationprovidedthereinaretrueandcorrect:Provided,further,ThatthePhilGEPSshallallowmanualsubmissionofeligibilityrequirements.ThePhilGEPSshallgenerateandsendanacknowledgementofanyeligibilityrequirementreceivedbyit.(a)


8.5.3.RegisteredbiddersdeterminedtobeeligiblemaysubmittheirbidsatanytimebeforetheclosingdatespecifiedintheBiddingDocuments.ThePhilGEPSshallbarallincomingbidsaftersuchdate.


8.5.4.ThePhilGEPSshallhaveafeaturethatallowstheelectronicsubmissionofeligibilityrequirementsandbids.


8.5.5.Uponreceiptofabid,thePhilGEPSshallgenerateandsendamessagetothebidderacknowledgingsuchreceipt.


8.6.1.TheBACshallhavethesoleauthoritytoopenthebids.

8.6.OpeningofBidsunderthePhilGEPS

8.6.2.Onlythefinancialproposalsofbidderswhosetechnicalproposalsmeettheminimumtechnicalrequirementsshallbeopenedordecrypted.


8.6.3.Anupdateofallprocurementcontracts,regardlessofwhetherprocurementisdoneelectronicallyormanually,shallbepostedonthePhilGEPSbulletinboard.Theupdateshallinclude,butshallnotbelimitedto,thestatusofprocurementcontracts,includingthenamesofcontractawardeesandtheamountofthecontract.


8.6.4.WithoutprejudicetocriminalprosecutionundertheapplicableprovisionsoftheActandthisIRR,R.A.8792,R.A.3019,otherwiseknownasthe"Anti-GraftandCorruptPracticesAct,"andotherapplicablepenallaws,publicofficialsandemployeeswhocommitanyofthefollowingactsshallbedeemedtohavecommittedgravemisconductandshallbesanctionedand/orpenalizedinaccordancewiththeapplicableCivilServicerulesandregulations:a)Openingordecryption,bywhatevermeans,ofbidssubmittedthroughthePhilGEPSaheadoftheappointedtimefortheopeningordecryptionofsuchbids;b)CausingtheunauthorizeddisclosureofanyinformationordocumentsubmittedthroughthePhilGEPS;c)HackingintoorcrackingthePhilGEPS,oraidinganotherpersontohackintoorcrackthesame;ord)Anyotheractthatbreachesorviolatesthesecurity,integrity,andconfidentialityofthePhilGEPS.


8.6.5.Whenanyoftheforegoingactsisdonebytheadministrator(s)oremployee(s)ofaserviceproviderhiredbyaprocuringentity,orincollusionwith,orbyaprivatepartywhoisaparticipantinthebiddingprocess,saidadministrator(s),employee(s)orprivatepartyshallbeimposedthecorrespondingsanctionsand/orpenaltiesunderthisIRR.


a)Security-ThePhilGEPSshallbeprotectedfromunauthorizedaccessorinterferencethroughtheincorporationofsecurityfeaturessuchas,butnotlimitedto,firewalls.Periodictestsshallbeconductedtoensurethatthesystemcannotbebreached.

Section9.Security,IntegrityandConfidentiality

b)Integrity-ThePhilGEPSshallensurethatnoperson,includingthesystemadministratorsandchairpersonandmembersoftheBAC,shallbeabletoalterthecontentsofbidssubmittedthroughthesystemorreadthesameaheadofthestipulatedtimeforthedecryptionoropeningofbids.Forthispurpose,bidssubmittedthroughthePhilGEPSshallbesealedthroughelectronickeys.TheauthenticityofmessagesanddocumentssubmittedthroughthePhilGEPSshallalsobeensuredbytheuseofelectronicsignatures.


c)Confidentiality-ThePhilGEPSshallensuretheprivacyofpartiestransactingwithit.Forthispurpose,noelectronicmessageordocumentsentthroughthesystemshallbedivulgedtothirdpartiesunlesssuchelectronicmessageordocumentwassentafterthesenderwasinformedthatthesamewillbemadepubliclyavailable.ThePhilGEPSshallprotecttheintellectualpropertyrightsoverdocuments,includingtechnicaldesigns,submittedinresponsetoInvitationstoBid.


d)AuditTrail-ThePhilGEPSshallincludeafeaturethatprovidesforanaudittrailforonlinetransactions,andallowstheCommissiononAudit(COA)toverifythesecurityandintegrityofthesystematanytime.


e)PerformanceTracking-Theperformanceofmanufacturers,suppliers,distributors,contractorsandconsultantsshallbetrackedtomonitorcompliancewithdeliveryschedulesandotherperformanceindicators.Similarly,theperformanceofProcuringEntitiesshallbetrackedtomonitorthesettlementoftheirobligationstomanufacturers,suppliers,distributors,contractorsandconsultants.


11.1.1.EachprocuringentityshallestablishinitsheadofficeasingleBACtoundertakethefunctionsspecifiedinSection12ofthisIRRinordertofacilitateprofessionalizationandharmonizationofproceduresandstandards.Inlinewiththestandardizationofprocurementproceduresandthethrusttowardsstrengtheningtheprocurementfunctiontoincreaseoperationalefficiencyandeffectiveness,HeadsofProcuringEntitiesshallaimtoconsolidateorunifyallprocurementactivitiesoftheorganization,whetherlocally-fundedorforeign-assisted,andwhetherpertainingtogoods,infrastructureprojects,orconsultingservices.(a)

11.1.BACStructure

11.1.2.However,toexpeditetheprocurementprocessforpracticalintentsandpurposes,theHeadoftheProcuringEntitymaycreateseparateBACswherethenumberandcomplexityoftheitemstobeprocuredshallsowarrant.TheBACsmaybeorganizedeitheraccordingto:(a)geographicallocationofPMOorend-userunitsoftheprocuringentity;or(b)natureofprocurement.SimilarcommitteesfordecentralizedandlowerlevelofficesmayalsobeformedwhendeemednecessarybytheHeadoftheProcuringEntity.(a)

11.1.BACStructure

11.2.1.TheHeadoftheProcuringEntityshalldesignateatleastfive(5)butnotmorethanseven(7)memberstotheBACofunquestionableintegrityandprocurementproficiency.(a)

11.2.BACComposition

11.2.2.TheBACforNGAs,departments,bureaus,offices,orinstrumentalitiesoftheGOP,includingthejudicialandlegislativebranches,constitutionalcommissions,SUCs,GOCCs,andGFIsshallbecomposedofthefollowing:RegularMembers:a)Chairman,whoisatleastathirdrankingpermanentofficialoftheprocuringentity;

b)Anofficer,whoisatleastafifthrankingpermanentofficial,withknowledge,experienceand/orexpertiseinprocurementwho,totheextentpossible,representsthelegaloradministrativeareaoftheprocuringentity,providedthatinthecaseofbureaus,regionalofficesandsubregional/districtoffices,BACmembersshallbeatleastathirdrankingpermanentpersonnel;

c)Anofficer,whoisatleastafifthrankingpermanentofficial,withknowledge,experienceand/orexpertiseinprocurementwho,totheextentpossible,representsthefinanceareaoftheprocuringentity,providedthatinthecaseofbureaus,regionalofficesandsub-regional/districtoffices,BACmembersshallbeatleastathirdrankingpermanentpersonnel;ProvisionalMembers:

d)Anofficerwhohastechnicalexpertiserelevanttotheprocurementathand,and,totheextentpossible,hasknowledge,experienceand/orexpertiseinprocurement;and

e)Arepresentativefromtheenduserunitwhohasknowledgeofprocurementlawsandprocedures.TheChairmanandtheVice-ChairmanshallalsobedesignatedbytheHeadoftheprocuringentity.Moreover,theVice-ChairmanshallbearegularmemberoftheBAC.ForpurposesofthisIRR,theterm"permanent"shallrefertoaplantillapositionwithintheprocuringentityconcerned.(a)

11.2.BACComposition

11.2.3.TheBACforLocalGovernmentUnitsshallbecomposedofthefollowing:a)OnerepresentativeeachfromtheregularofficesundertheOfficeoftheLocalChiefExecutivesuchas,butnotlimitedto,thefollowing:OfficeoftheAdministrator,BudgetOffice,LegalOffice,EngineeringOffice,GeneralServicesOffices;and

b)Arepresentativefromtheenduserunit.ThemembersshallelectamongthemselveswhoshallactastheChairmanandVice-Chairman.TheChairmanoftheBACshallbeatleastathirdrankingpermanentofficialoftheprocuringentity.ThemembersoftheBACshallbepersonneloccupyingplantillapositionsoftheprocuringentityconcerned.(a)

11.2.BACComposition

11.2.4.TheHeadoftheProcuringEntitymaydesignatealternatememberstotheBAC,whoshallhavethesamequalificationsastheirprincipalsassetintheActandthisIRR.ThealternatemembersshallattendmeetingsoftheBACandreceivethecorrespondinghonoraria,whenevertheirprincipalsareabsent.Thealternatemembersshallhavethesametermastheirprincipals.Theaccountabilityoftheprincipalandthealternatemembershallbelimitedtotheirrespectiveactsanddecisions.(n)

11.2.BACComposition

11.2.5.InnocaseshalltheHeadoftheProcuringEntityand/ortheapprovingauthoritybetheChairmanoramemberoftheBAC.

11.2.BACComposition

11.2.6.Unlesssoonerremovedforacause,themembersoftheBACshallhaveafixedtermofone(1)yearreckonedfromthedateofappointment,renewableatthediscretionoftheHeadoftheProcuringEntity.Uponexpirationofthetermsofthecurrentmembers,theyshallcontinuetoexercisetheirfunctionsuntilnewBACmembersaredesignated.Incaseofresignation,retirement,separation,transfer,re-assignment,removal,ordeath,thereplacementshallserveonlyfortheunexpiredterm:Provided,however,Thatincaseofleaveorsuspension,thereplacementshallserveonlyforthedurationoftheleaveorsuspension.Forjustifiablecauses,amembershallbesuspendedorremovedbytheHeadoftheProcuringEntity.(a)

11.2.BACComposition

i)Forinfrastructureprojects,nationalassociationsofconstructorsdulyrecognizedbytheConstructionIndustryAuthorityofthePhilippines(CIAP),suchas,butnotlimitedtothefollowing:(1)PhilippineConstructorsAssociation,Inc.;(2)NationalConstructorsAssociationofthePhilippines,Inc.;and(3)PhilippineInstituteofCivilEngineers(PICE).

13.1.Toenhancethetransparencyoftheprocess

ii)Forgoods,aspecificrelevantchamber-memberofthePhilippineChamberofCommerceandIndustry.


iii)Forconsultingservices,aproject-relatedprofessionalorganizationaccreditedordulyrecognizedbytheProfessionalRegulationCommissionortheSupremeCourt,suchas,butnotlimitedto:(1)PICE;(2)PhilippineInstituteofCertifiedPublicAccountants(PICPA);and(3)ConfederationofFilipinoConsultingOrganizations;and


i)availabilityofappropriationsandprogrammedbudgetforcontract;

20.1.Priortotheadvertisement

ii)completenessoftheBiddingDocumentsandtheiradherencetorelevantgeneralprocurementguidelines;


iii)completionofthedetailedengineeringaccordingtotheprescribedstandardsinthecaseofinfrastructureprojects;and


iv)confirmationoftheavailabilityofROWandtheownershipofaffectedproperties.


i)Goods,thenameofthecontracttobebidandabriefdescriptionofthegoodstobeprocured;

21.1.ContentsoftheInvitationtoBid/Request

ii)Infrastructureprojects,thenameandlocationofthecontracttobebid,theprojectbackgroundandotherrelevantinformationregardingtheproposedcontractworks,includingabriefdescriptionofthetype,size,majoritems,andotherimportantorrelevantfeaturesoftheworks;and


iii)Consultingservices,thenameofthecontracttobebid,ageneraldescriptionoftheprojectandotherimportantorrelevantinformation;


21.2.1.ExceptasotherwiseprovidedinSections21.2.2and54.2ofthisIRRandfortheprocurementofcommon-usegoodsandsupplies,theInvitationtoBid/RequestforExpressionofInterestshallbe:a)Advertisedatleastonceinone(1)newspaperofgeneralnationwidecirculationwhichhasbeenregularlypublishedforatleasttwo(2)yearsbeforethedateofissueoftheadvertisement;b)PostedcontinuouslyinthePhilGEPSwebsite,thewebsiteoftheprocuringentityconcerned,ifavailable,andthewebsiteprescribedbytheforeigngovernment/foreignorinternationalfinancinginstitution,ifapplicable,forseven(7)calendardaysstartingondateofadvertisement;andc)Postedatanyconspicuousplacereservedforthispurposeinthepremisesoftheprocuringentityconcernedforseven(7)calendardays,ifapplicable,ascertifiedbytheheadoftheBACSecretariatoftheprocuringentityconcerned.(a)

21.2.AdvertisingandPostingoftheInvitation

21.2.2.AdvertisementoftheInvitationtoBid/RequestforExpressionofInterestinanewspaperofgeneralnationwidecirculationprovidedinSection21.2.1(a)shallnotberequiredforcontractstobebidwithanapprovedbudgetofTwoMillionPesos(P2,000,000.00)andbelowfortheprocurementofgoods,FiveMillionPesos(P5,000,000.00)andbelowfortheprocurementofinfrastructureprojects,andOneMillionPesos(P1,000,000.00)andbeloworthosewhosedurationisfour(4)monthsorlessfortheprocurementofconsultingservices.(a)

21.2.AdvertisingandPostingoftheInvitation

22.5.1.Requestsforclarification(s)onanypartoftheBiddingDocumentsorforaninterpretationmustbeinwritingandsubmittedtotheBACoftheprocuringentityconcernedatleastten(10)calendardaysbeforethedeadlinesetforthesubmissionandreceiptofbids.TheBACshallrespondtothesaidrequestbyissuingaSupplemental/BidBulletin,dulysignedbytheBACchairman,tobemadeavailabletoallthosewhohaveproperlysecuredtheBiddingDocuments,atleastseven(7)calendardaysbeforethedeadlineforthesubmissionandreceiptofbids.(a)

22.5.Supplemental/BidBulletins

22.5.2.Supplemental/BidBulletinsmaybeissuedupontheprocuringentity'sinitiativeforpurposesofclarifyingormodifyinganyprovisionoftheBiddingDocumentsatleastseven(7)calendardaysbeforethedeadlineforthesubmissionandreceiptofbids.AnymodificationtotheBiddingDocumentsshallbeidentifiedasanamendment.(a)


22.5.3.AnySupplemental/BidBulletinissuedbytheBACshallalsobepostedonthePhilGEPSorthewebsiteoftheprocuringentityconcerned,ifavailable.ItshallbetheresponsibilityofallthosewhohaveproperlysecuredtheBiddingDocumentstoinquireandsecureSupplemental/BidBulletinsthatmaybeissuedbytheBAC.However,bidderswhohavesubmittedbidsbeforetheissuanceoftheSupplemental/BidBulletinmustbeinformedandallowedtomodifyorwithdrawtheirbidsinaccordancewithSection26.1ofthisIRR.(a)


i)RegistrationcertificatefromSEC,DepartmentofTradeandIndustry(DTI)forsoleproprietorship,orCDAforcooperatives,oranyproofofsuchregistrationasstatedintheBiddingDocuments.

23.1.Forpurposesofdeterminingtheeligibility

ii)Mayor'spermitissuedbythecityormunicipalitywheretheprincipalplaceofbusinessoftheprospectivebidderislocated.TechnicalDocuments


iii)Statementoftheprospectivebidderofallitsongoingandcompletedgovernmentandprivatecontracts,includingcontractsawardedbutnotyetstarted,ifany,whethersimilarornotsimilarinnatureandcomplexitytothecontracttobebid,withintherelevantperiodasprovidedintheBiddingDocuments.ThestatementshallincludeallinformationrequiredinthePBDsprescribedbytheGPPB.


iv)Inthecaseofprocurementofinfrastructureprojects,avalidPhilippineContractorsAccreditationBoard(PCAB)licenseandregistrationforthetypeandcostofthecontracttobebid.FinancialDocuments


v)Theprospectivebidder sauditedfinancialstatements,showing,amongothers,theprospectivebidder stotalandcurrentassetsandliabilities,stampedreceivedbytheBIRoritsdulyaccreditedandauthorizedinstitutions,fortheprecedingcalendaryearwhichshouldnotbeearlierthantwo(2)yearsfromthedateofbidsubmission.


vi)Theprospectivebidder scomputationforitsNetFinancialContractingCapacity(NFCC)oracommitmentfromaUniversalorCommercialBanktoextendacreditlineinfavoroftheprospectivebidderifawardedthecontracttobebid(CLC).


23.4.1.TheregistrysystemshallcontaintheforegoingClassAdocumentswhichshouldbemaintainedcurrentandupdatedbythebidderconcernedatleastonceayearormorefrequentlywhenneeded.(a)

23.4.Tofacilitatedeterminationofeligibility

23.4.2.AbidderwhomaintainsacurrentandupdatedfileofhisClassADocumentsshallbeissuedacertificationbytheBACtothateffect,whichcertificationmaybesubmittedtotheprocuringentityconcernedinlieuoftheforegoingClassAdocuments.(a)


23.4.3.IftheprocuringentitymaintainsaregistrysystemusingthePhilGEPSoritsownelectronicsystem,aprospectivebidder,whetherornotdulyregisteredineithersystem,shallsubmitawrittenletterofintentand/oritsapplicationforeligibilityandlatestClassAdocuments,totheBAConorbeforethedeadlinespecifiedintheBiddingDocuments.Anyapplicationforeligibilityorupdatessubmittedafterthedeadlineforthesubmissionoftheletterofintentshallnotbeconsideredforthebiddingathand.(a)


23.5.1.Fortheprocurementofgoods:

23.5.1.1.Thefollowingshallbeeligible23.5.1.2.Foreignbiddersmaybeeligible23.5.1.3.Theprospectivebidder23.5.1.4.Iftheprospectivebiddersubmitsacomputation

23.5.EligibilityCriteria

23.5.2.Fortheprocurementofinfrastructureprojects:

23.5.2.1.Thefollowingpersons/entities23.5.2.2.Foreignbidders23.5.2.3.InaccordancewithR.A.456623.5.2.4.TheConstructorsPerformanceEvaluationSummary(CPES)23.5.2.5.Theprospectivebidder23.5.2.6.Iftheprospectivebiddersubmitsacomputation


i)RegistrationcertificatefromSEC,DepartmentofTradeandIndustry(DTI)forsoleproprietorship,orCDAforcooperatives,oranyproofofsuchregistrationasstatedintheBiddingDocuments;

24.1.Thefollowingdocumentsshallbesubmitted

ii)Mayor spermitissuedbythecityormunicipalitywheretheprincipalplaceofbusinessoftheprospectivebidderislocated;TechnicalDocuments


iii)Statementoftheprospectivebidderofallitsongoingandcompletedgovernmentandprivatecontracts,includingcontractsawardedbutnotyetstarted,ifany,whethersimilarornotsimilarinnatureandcomplexitytothecontracttobebid,withintherelevantperiodasprovidedintheBiddingDocuments.ThestatementshallincludeallinformationrequiredinthePBDsprescribedbytheGPPB.


iv)Statementoftheconsultantspecifyingitsnationalityandconfirmingthatthosewhowillactuallyperformtheserviceareregisteredprofessionalsauthorizedbytheappropriateregulatorybodytopracticethoseprofessionsandalliedprofessions.FinancialDocument


v)Theconsultantsauditedfinancialstatements,showing,amongothers,theconsultantstotalandcurrentassetsandliabilities,stampedreceivedbytheBIRoritsdulyaccreditedandauthorizedinstitutions,fortheprecedingcalendaryearwhichshouldnotbeearlierthantwo(2)yearsfromthedateofbidsubmission.


24.3.1.Thefollowingpersons/entitiesshallbeallowedtoparticipateinthebiddingforconsultingservices:a)DulylicensedFilipinocitizens/soleproprietorships;

b)PartnershipsdulyorganizedunderthelawsofthePhilippinesandofwhichatleastsixtypercent(60%)oftheinterestbelongstocitizensofthePhilippines;

c)CorporationsdulyorganizedunderthelawsofthePhilippinesandofwhichatleastsixtypercent(60%)oftheoutstandingcapitalstockbelongstocitizensofthePhilippines;

d)CooperativesdulyorganizedunderthelawsofthePhilippines,andofwhichatleastsixtypercent(60%)belongstocitizensofthePhilippines;or

e)Persons/entitiesformingthemselvesintoajointventure,i.e.,agroupoftwo(2)ormorepersons/entitiesthatintendtobejointlyandseverallyresponsibleorliableforaparticularcontract:Provided,however,ThatFilipinoownershiporinterestthereofshallbeatleastsixtypercent(60%).Forthispurpose,FilipinoownershiporinterestshallbebasedonthecontributionsofeachofthemembersofthejointventureasspecifiedintheirJVA.(n)


24.3.2.Whenthetypesandfieldsofconsultingservicesinwhichtheforegoingpersons/entitieswishtoengageinvolvethepracticeofprofessionsregulatedbylaw,thosewhowillactuallyperformtheservicesshallbeFilipinocitizensandregisteredprofessionalsauthorizedbytheappropriateregulatorybodytopracticethoseprofessionsandalliedprofessions.(a)


24.3.3.InordertomanifesttrustandconfidenceinandpromotethedevelopmentofFilipinoconsultancy,foreignconsultantsmaybehiredintheeventFilipinoconsultantsdonothavethesufficientexpertiseandcapabilitytorendertheservicesrequiredundertheproject,asdeterminedbytheHeadoftheProcuringEntity.Foreignconsultantsmaybeeligibletoparticipateintheprocurementofconsultingservices,subjecttothefollowingqualifications:a)mustberegisteredwiththeSECand/oranyagencyauthorizedbythelawsofthePhilippines;and

b)whenthetypesandfieldsofconsultingservicesinwhichtheforeignconsultantwishestoengageinvolvethepracticeofregulatedprofessions,theforeignconsultantmustbeauthorizedbytheappropriateGOPprofessionalregulatorybodytoengageinthepracticeofthoseprofessionsandalliedprofessions:Provided,however,Thatthelimitsofsuchauthorityshallbestrictlyobserved.(a)


24.4.1.TheeligibilityenvelopesofprospectivebiddersforprocurementofconsultingservicesshallbesubmittedonorbeforethedeadlinespecifiedintheRequestforExpressionofInterest,andshallbeopenedbeforethedatesofthepre-bidconferenceandbidopeningtodetermineeligibilityofprospectivebidders,whoshallthenbeallowedtoacquireorpurchasetherelevantBiddingDocumentsfromtheprocuringentity.AprospectivebiddermaybeallowedtosubmithiseligibilityrequirementselectronicallyinaccordancewithSection8.5ofthisIRR.(a)

24.4.EligibilityCheckofProspectiveBidders

24.4.2.SubjecttotheshortlistingofconsultantsasprovidedinthisIRR,thedeterminationofeligibilityofconsultantsshallbebasedontheevaluationoftheeligibilitydocumentsprescribedaboveinaccordancewiththeproceduresprovidedinSections30.1and30.3ofthisIRR.


24.4.3.Tofacilitatedeterminationofeligibility,theBACofaprocuringentitymaymaintainaregistrysystemusingthePhilGEPSoritsownmanualorelectronicsystemthatallowssubmissionand/orrecording/entryofeligibilityrequirementssimultaneouslywithregistration.(a)24.4.3.1.Theregistrysystem24.4.3.2.Abidderwhomaintainsacurrentandupdatedfile24.4.3.3.Iftheprocuringentitymaintainsaregistrysystem


24.5.1.Withrespecttoaparticularcontractforconsultingservicestobebid,theconcernedprocuringentityshallonlyconsiderforshortlistingthoseconsultantswhosecontracts,asidentifiedintheeligibilitydocumentssubmittedforregistration,aresimilarinnatureandcomplexitytothecontracttobebid,basedontheRequestforExpressionofInterest.

24.5.ShortListingofProspectiveBidders

24.5.2.TheBACshalldrawuptheshortlistofconsultantsfromthosewhohavebeendeterminedaseligible,andwhohavesubmittedtheirLOI,bothinaccordancewiththeprovisionsofthisIRR.Thenumberofshortlistedconsultants,whichshallbedeterminedinthepre-procurementconference,shallconsistofthree(3)toseven(7)consultants,withfive(5)asthepreferablenumber.Shouldlessthantherequirednumberapplyforeligibilityandshortlisting,passtheeligibilitycheck,and/orpasstheminimumscorerequiredintheshortlisting,theBACshallconsiderthesame.


24.5.3.TheBACshallspecifyintheRequestforExpressionofInterestthesetofcriteriaandratingsystemforshortlistingofconsultantstobeusedfortheparticularcontracttobebid,whichshallconsiderthefollowing,amongothers:a)Applicableexperienceoftheconsultantandmembersincaseofjointventures,consideringboththeoverallexperiencesofthefirmor,inthecaseofnewfirms,theindividualexperiencesoftheprincipalandkeystaff,includingthetimeswhenemployedbyotherconsultants;b)Qualificationofpersonnelwhomaybeassignedtothejobvis-ŕ-visextentandcomplexityoftheundertaking;andc)Currentworkloadrelativetocapacity.(a)


24.5.4.TheBACshallrecommendtheshortlistofconsultantstotheHeadoftheProcuringEntityforconsiderationandapproval.Theentireprocessofeligibilitycheckandshortlistingshallnotexceedtwenty(20)calendardays.


i)EligibilityrequirementsunderSection23.1ofthisIRR;

25.2.Thefirstenvelope

ii)Thebidsecurityintheprescribedform,amountandvalidityperiod;


iii)Technicalspecifications,whichmayincludeproduction/deliveryschedule,manpowerrequirements,and/orafter-salesservice/parts,ifapplicable;and


iv)SwornstatementbytheprospectivebidderoritsdulyauthorizedrepresentativeintheformprescribedbytheGPPBastothefollowing:(1)ItisnotblacklistedorbarredfrombiddingbytheGOPoranyofitsagencies,offices,corporations,orLGUs,includingforeigngovernment/foreignorinternationalfinancinginstitutionwhoseblacklistingruleshavebeenrecognizedbytheGPPB;

(2)Eachofthedocumentssubmittedinsatisfactionofthebiddingrequirementsisanauthenticcopyoftheoriginal,complete,andallstatementsandinformationprovidedthereinaretrueandcorrect;

(3)ItisauthorizingtheHeadoftheProcuringEntityorhisdulyauthorizedrepresentative/stoverifyallthedocumentssubmitted;

(4)Thesignatoryisthedulyauthorizedrepresentativeoftheprospectivebidder,andgrantedfullpowerandauthoritytodo,executeandperformanyandallactsnecessaryand/ortorepresenttheprospectivebidderinthebidding,withthedulynotarizedSecretarysCertificateattestingtosuchfact,iftheprospectivebidderisacorporation,partnership,cooperative,orjointventure;

(5)ItcomplieswiththedisclosureprovisionunderSection47oftheActinrelationtootherprovisionsofR.A.3019;

(6)ItcomplieswiththeresponsibilitiesofaprospectiveoreligiblebidderprovidedinthePBDs;and

(7)Itcomplieswithexistinglaborlawsandstandards,inthecaseofprocurementofservices.(a)


i)EligibilityrequirementsunderSection23.3ofthisIRR;


ii)Bidsecurityintheprescribedform,amountandvalidityperiod;


iii)ProjectRequirements,whichshallincludethefollowing:(1)Organizationalchartforthecontracttobebid;

(2)Listofcontractor spersonnel(viz,ProjectManager,ProjectEngineers,MaterialsEngineers,andForemen),tobeassignedtothecontracttobebid,withtheircompletequalificationandexperiencedata;

(3)Listofcontractor sequipmentunits,whichareowned,leased,and/orunderpurchaseagreements,supportedbycertificationofavailabilityofequipmentfromtheequipmentlessor/vendorforthedurationoftheproject;and


iv)SwornstatementbytheprospectivebidderoritsdulyauthorizedrepresentativeintheformprescribedbytheGPPBastothefollowing:(1)ItisnotblacklistedorbarredfrombiddingbytheGOPoranyofitsagencies,offices,corporations,orLGUs,includingforeigngovernment/foreignorinternationalfinancinginstitutionwhoseblacklistingruleshavebeenrecognizedbytheGPPB;



(4)Thesignatoryisthedulyauthorizedrepresentativeoftheprospectivebidder,andgrantedfullpowerandauthoritytodo,executeandperformanyandallactsnecessaryand/ortorepresenttheprospectivebidderinthebidding,withthedulynotarizedSecretarysCertificateattestingtosuchfact,iftheprospectivebidderisacorporation,partnershiporjointventure;



(7)Itcomplieswithexistinglaborlawsandstandards.(a)


i)Thebidsecurityintheprescribedform,amountandvalidityperiod;


ii)Organizationalchartforthecontracttobebid;


iii)Listofcompletedandon-goingprojects;


iv)Approach,workplan,andschedule:Provided,however,Thatforarchitecturaldesign,submissionofarchitecturalplansanddesignsshallnotberequiredduringtheconsultantsselectionprocess;


v)Listofkeypersonneltobeassignedtothecontracttobebid,withtheircompletequalificationandexperiencedata;and


vi)SwornstatementbytheprospectivebidderoritsdulyauthorizedrepresentativeintheformprescribedbytheGPPBastothefollowing:(1)ItisnotblacklistedorbarredfrombiddingbytheGOPoranyofitsagencies,offices,corporations,orLGUs,foreigngovernment/foreignorinternationalfinancinginstitutionwhoseblacklistingruleshavebeenrecognizedbytheGPPB;



(4)Thesignatoryisthedulyauthorizedanddesignatedrepresentativeoftheprospectivebidder,andgrantedfullpowerandauthoritytodo,executeandperformanyandallactsnecessaryand/ortorepresenttheprospectivebidderinthebidding,withthedulynotarizedSecretarysCertificateattestingtosuchfact,iftheprospectivebidderisacorporation,partnershiporjointventure;



(7)Itcomplieswithexistinglaborlawsandstandards.(a)


32.2.1.TheBACshallimmediatelyconductadetailedevaluationofallbidsusingnondiscretionarycriteriainconsideringthefollowing:a)Completenessofthebid.UnlesstheInstructionstoBiddersspecificallyallowpartialbids,bidsnotaddressingorprovidingalloftherequireditemsintheBiddingDocumentsincluding,whereapplicable,billofquantities,shallbeconsiderednon-responsiveand,thus,automaticallydisqualified.Inthisregard,wherearequireditemisprovided,butnopriceisindicated,thesameshallbeconsideredasnon-responsive,butspecifyinga0(zero)forthesaiditemwouldmeanthatitisbeingofferedforfreetotheGovernment;andb)Arithmeticalcorrections.Considercomputationalerrors,omissions,andotherbidmodifications,ifallowedintheBiddingDocuments,toenablepropercomparisonofalleligiblebids.Anyadjustmentshallbecalculatedinmonetarytermstodeterminethecalculatedprices.(a)

32.2.Fortheprocurementofgoods

32.2.2.TheBACshallevaluateallbidsonanequalfootingtoensurefairandcompetitivebidcomparison.Forthispurpose,allbiddersshallberequiredtoincludethecostofalltaxes,suchas,butnotlimitedto,valueaddedtax(VAT),incometax,localtaxes,andotherfiscalleviesanddutieswhichshallbeitemizedinthebidformandreflectedinthedetailedestimates.Suchbids,includingsaidtaxes,shallbethebasisforbidevaluationandcomparison.(a)


32.2.3.Incaseofdiscrepanciesbetween:(a)bidpricesinfiguresandinwords,thelattershallprevail;(b)totalpriceperitemandunitpricefortheitemasextendedormultipliedbythequantityofthatitem,thelattershallprevail;(c)statedtotalpriceandtheactualsumofpricesofcomponentitems,thelattershallprevail;(d)unitcostinthedetailedestimateandunitcostinthebillofquantities,thelattershallprevail.


32.2.4.Bidsshallthenberankedintheascendingorderoftheirtotalcalculatedbidprices,asevaluatedandcorrectedforcomputationalerrors,andotherbidmodifications,toidentifytheLowestCalculatedBid.Totalcalculatedbidprices,asevaluatedandcorrectedforcomputationalerrors,andotherbidmodifications,whichexceedtheABCshallbedisqualified.(a)


33.2.1.TheBACshallconductadetailedevaluationofbidsusingeitherofthefollowingevaluationproceduresasspecifiedintheBiddingDocuments:a)Quality-BasedEvaluationProcedure

i)Atwo-stageprocedureii)Afterreceiptofbidsiii)TheHeadoftheProcuringEntityiv)AfterapprovalbytheHeadv)Negotiations

b)Quality-CostBasedEvaluationProcedure

i)Thetechnicalproposalii)Thefinancialandtechnicalproposalsiii)TheHeadoftheProcuringEntityiv)AfterapprovalbytheHeadoftheProcuringEntity

33.2.Thepurposeofbidevaluation

33.2.2.ThetechnicalproposalsofconsultantsshallbeevaluatedbasedonthefollowingcriteriaandusingthecorrespondingnumericalweightsindicatedintheBiddingDocuments:a)Qualityofpersonneltobeassignedtotheprojectwhichcoverssuitabilityofkeystafftoperformthedutiesoftheparticularassignmentsandgeneralqualificationsandcompetenceincludingeducationandtrainingofthekeystaff;

b)Experienceandcapabilityoftheconsultantwhichincluderecordsofpreviousengagementandqualityofperformanceinsimilarandinotherprojects;relationshipwithpreviousandcurrentclients;and,overallworkcommitments,geographicaldistributionofcurrent/impendingprojectsandattentiontobegivenbytheconsultant.Theexperienceoftheconsultanttotheprojectshallconsiderboththeoverallexperiencesofthefirmandtheindividualexperiencesoftheprincipalandkeystaffincludingthetimeswhenemployedbyotherconsultants;and

c)Planofapproachandmethodologywithemphasisontheclarity,feasibility,innovativenessandcomprehensivenessoftheplanapproach,andthequalityofinterpretationofprojectproblems,risks,andsuggestedsolutions.Forcomplexoruniqueundertakings,suchasthoseinvolvingnewconcepts/technologyorfinancialadvisoryservices,participatingshortlistedconsultantsmayberequired,attheoptionoftheagencyconcerned,tomakeanoralpresentationtobepresentedbyeachconsultant,oritsnominatedProjectManagerorhead,incaseoffirms,withinfifteen(15)calendardaysafterthedeadlineforsubmissionoftechnicalproposals.


33.2.3.Inordertoeliminatebiasinevaluatingthetechnicalproposals,itisrecommendedthatthehighestandlowestscoresforeachconsultantforeachcriterionshallnotbeconsideredindeterminingtheaveragescoresoftheconsultants,exceptwhentheevaluationisconductedinacollegialmanner.(a)


33.2.4.Allparticipatingshortlistedconsultantsshallbefurnishedtheresults(rankingandtotalscoresonly)oftheevaluationaftertheapprovalbytheHeadoftheProcuringEntityoftheranking.SaidresultsshallalsobepostedinthePhilGEPSandthewebsiteoftheprocuringentity,wheneveravailable,foraperiodofnotlessthanseven(7)calendardays.(a)


33.2.5.Negotiationsshallcoverthefollowing:a)DiscussionandclarificationoftheTORandScopeofServices;

b)Discussionandfinalizationofthemethodologyandworkprogramproposedbytheconsultant;

c)Considerationofappropriatenessofqualificationsandpertinentcompensation,numberofman-monthsandthepersonneltobeassignedtothejob,takingnoteofover-qualifiedpersonnel,tobecommensuratewiththecompensationofpersonnelwiththeappropriatequalifications,numberofman-monthsandscheduleofactivities(manningschedule);

d)Discussionontheservices,facilitiesanddata,ifany,tobeprovidedbyprocuringentityconcerned;

e)Discussiononthefinancialproposalsubmittedbytheconsultant;and

f)Provisionsofthecontract.Exceptformeritoriousreasons,negotiationswithanyoneconsultantshallbecompletedwithinten(10)calendardays.(a)


33.2.6.Totalcalculatedbidprices,asevaluatedandcorrectedforminorarithmeticalcorrections,suchascomputationalerrors,whichexceedtheABCshallnotbeconsidered.(a)


i)Verificationandvalidationofthebidder sstatedcompetenceandexperience,andthecompetenceandexperienceofthebidder skeypersonneltobeassignedtotheproject,fortheprocurementofinfrastructureprojectsandconsultingservices;

34.3.Thepost-qualificationshallverify,validate,andascertainallstatements

ii)Verificationofavailabilityandcommitment,and/orinspectionandtestingfortherequiredcapacitiesandoperatingconditions,ofequipmentunitstobeowned/leased/underpurchasebythebidderforuseinthecontractunderbidding,aswellascheckingtheperformanceofthebidderinitsongoinggovernmentandprivatecontracts(ifanyoftheseon-goingcontractsshowsareportednegativeslippageofatleastfifteenpercent(15%),orsubstandardqualityofworkaspercontractplansandspecifications,orunsatisfactoryperformanceofthecontractor sobligationsaspercontracttermsandconditions,atthetimeofinspection,andiftheBACverifiesanyofthesedeficienciestobeduetothecontractor sfaultornegligence,theagencyshalldisqualifythecontractorfromtheaward),fortheprocurementofinfrastructureprojects;


iii)Verificationand/orinspectionandtestingofthegoods/product,after-salesand/ormaintenancecapabilities,inapplicablecases,fortheprocurementofgoods;and


iv)Ascertainmentofthesufficiencyofthebidsecurityastotype,amount,formandwording,andvalidityperiod.


37.1.1.TheBACshallrecommendtotheHeadoftheProcuringEntitytheawardofcontracttothebidderwiththeLowestCalculatedResponsiveBid/HighestRatedResponsiveBidortheSingleCalculated/RatedResponsiveBidafterthepost-qualificationprocesshasbeencompleted.Tofacilitatetheapprovaloftheaward,theBACshallsubmitthefollowingsupportingdocumentstotheHeadoftheProcuringEntity:a)ResolutionoftheBACrecommendingaward;

b)AbstractofBids;

c)Dulyapprovedprogramofworkordeliveryschedule,andCostEstimates;

d)Documentissuedbyappropriateentityauthorizingtheprocuringentitytoincurobligationsforaspecifiedamount;ande)Otherpertinentdocumentsrequiredbyexistinglaws,rules,and/ortheprocuringentityconcerned.(a)

37.1.ContractAward

37.1.2.Withinaperiodnotexceedingseven(7)calendardaysfromthedateofreceiptoftherecommendationoftheBAC,theHeadoftheProcuringEntityshallapproveordisapprovethesaidrecommendation.However,forinfrastructureprojectswithanABCofFiftyMillionPesos(P50,000,000)andbelow,theHeadoftheProcuringEntityshallapproveordisapprovethesaidrecommendationwithinfour(4)calendardays.InthecaseofGOCCsandGFIs,theperiodprovidedhereinshallbefifteen(15)calendardays.Withinthesameperiodprovidedherein,theBACshallnotifyalllosingbiddersofitsdecision.

37.1.ContractAward

37.1.3.Incaseofapproval,theHeadoftheProcuringEntityshallimmediatelyissuetheNoticeofAwardtothebidderwiththeLowestCalculatedResponsiveBid/HighestRatedResponsiveBid.IntheeventtheHeadoftheProcuringEntityshalldisapprovesuchrecommendation,suchdisapprovalshallbebasedonlyonvalid,reasonable,andjustifiablegroundstobeexpressedinwriting,copyfurnishedtheBAC.(n)

37.1.ContractAward

37.1.4.NotwithstandingtheissuanceoftheNoticeofAward,awardofcontractshallbesubjecttothefollowingconditions:a)Submissionofthefollowingdocumentswithintheprescribedperiod:

i)ValidJVA,ifapplicableii)Inthecaseofinfrastructureprojects

b)PostingofperformancesecurityinaccordancewithSection39ofthisIRR;

c)SigningofthecontractasprovidedinSection37.2ofthisIRR;and

d)Approvalbyhigherauthority,ifrequired,asprovidedinSection37.3ofthisIRR.(n)

37.1.ContractAward

37.1.5.ContractawardshallbemadewithinthebidvalidityperiodprovidedinSection28ofthisIRR.(a)

37.1.ContractAward

37.1.6.TheBAC,throughtheSecretariat,shallpost,withinthree(3)calendardaysfromitsissuance,theNoticeofAwardinthePhilGEPS,thewebsiteoftheprocuringentity,ifany,andanyconspicuousplaceinthepremisesoftheprocuringentity.(n)

37.1.ContractAward

37.2.1.ThewinningbiddershallposttherequiredPerformanceSecurityandenterintocontractwiththeprocuringentitywithinten(10)calendardaysfromreceiptbythewinningbidderoftheNoticeofAward.(a)

37.2.ContractSigning

37.2.2.Theprocuringentityshallenterintocontractwiththewinningbidderwithinthesameten(10)dayperiodprovidedthatallthedocumentaryrequirementsarecompliedwith.(a)


37.2.3.Thefollowingdocumentsshallformpartofthecontract:a)ContractAgreement;

b)BiddingDocuments;

c)Winningbidder sbid,includingtheEligibilityrequirements,TechnicalandFinancialProposals,andallotherdocuments/statementssubmitted;d)PerformanceSecurity;e)CreditlineinaccordancewiththeprovisionsofthisIRR,ifapplicable;f)NoticeofAwardofContract;andg)Othercontractdocumentsthatmayberequiredbyexistinglawsand/ortheprocuringentityconcernedintheBiddingDocuments,suchastheconstructionscheduleandS-curve,manpowerschedule,constructionmethods,equipmentutilizationschedule,constructionsafetyandhealthprogramapprovedbytheDepartmentofLaborandEmployment,andPERT/CPMforinfrastructureprojects.(a)


37.4.1.TheprocuringentityshallissuetheNoticetoProceedtogetherwithacopyoftheapprovedcontracttothesuccessfulbidderwithinthree(3)calendardaysfromthedateofapprovalofthecontractbytheappropriategovernmentapprovingauthority.However,forinfrastructureprojectswithanABCofFiftyMillionPesos(P50,000,000)andbelow,themaximumperiodistwo(2)calendardays.ThecontracteffectivitydateshallbeprovidedintheNoticetoProceedbytheprocuringentity,whichdateshallnotbelaterthanseven(7)calendardaysfromitsissuance.(a)

37.4.NoticetoProceed

37.4.2.Theprocuringentity,throughtheBACSecretariat,shallpostacopyoftheNoticetoProceedandtheapprovedcontractinthePhilGEPSorthewebsiteoftheprocuringentity,ifany,withinfifteen(15)calendardaysfromtheissuanceoftheNoticetoProceed.(n)

37.4.NoticetoProceed

43.1.1.ConsistentwiththeGOPsobligationsunderinternationaltreatiesoragreements,goodsmaybeobtainedfromdomesticorforeignsources:Provided,however,Thattheprocurementthereofshallbeopenonlytoeligiblesuppliers,manufacturersanddistributors:Provided,further,That,intheinterestofavailability,efficiencyandtimelydeliveryofgoods,theprocuringentitymaygivepreferencetothepurchaseofdomestically-producedandmanufacturedgoods,suppliesandmaterialsthatmeetthespecifiedordesiredquality,inaccordancewiththeprovisionsofCommonwealthActNo.138.(a)

43.1.ScopeandApplication

43.1.2.Theprocuringentityshallgivepreferencetomaterialsandsuppliesproduced,madeandmanufacturedinthePhilippinesandtoDomesticEntities,subjecttotheconditionshereinbelowspecified.TheawardshallbemadetothelowestDomesticBidderorlowestDomesticEntity,providedhisbidisnotmorethanfifteenpercent(15%)inexcessofthelowestForeignBid.(n)


43.1.3.ADomesticEntitycanonlyclaimpreferenceifitsecuresfromtheDTIacertificationthatithasallthequalificationsrequiredunderthisIRR,incaseofsoleproprietorships,SEC,incaseofpartnershipsandcorporations,orCDA,incaseofcooperatives.(n)


43.1.4.ADomesticBiddercanonlyclaimpreferenceifitsecuresfromtheDTIacertificationthatthearticlesformingpartofitsbidaresubstantiallycomposedofarticles,materials,orsuppliesgrown,produced,ormanufacturedinthePhilippines.(n)


43.2.1.Thepreferenceshallbeappliedwhen(a)thelowestForeignBidislowerthanthelowestbidofferedbyaDomesticBidder,or(b)thelowestbidofferedbyanon-PhilippinenationalislowerthanthelowestbidofferedbyaDomesticEntity.TheprocuringentityshallensurethatbothbidsareresponsivetotheminimumrequirementsasspecifiedintheBiddingDocuments.(n)

43.2.ProceduresandGuidelines

43.2.2.Forevaluationpurposes,thelowestForeignBidorthebidofferedbyanon-Philippinenationalshallbeincreasedbyfifteenpercent(15%).(n)


43.2.3.Intheeventthat(a)thelowestbidofferedbyaDomesticBidderdoesnotexceedthelowestForeignBidasincreased,or(b)thelowestbidofferedbyaDomesticEntitydoesnotexceedthelowestbidofferedbyanon-Philippinenationalasincreased,thentheprocuringentityshallawardthecontracttotheDomesticBidder/EntityattheamountofthelowestForeignBidorbidofferedbyanon-Philippinenational,asthecasemaybe.(n)


43.2.4.IftheDomesticEntity/BidderrefusestoaccepttheawardofcontractattheamountoftheForeignBidorbidofferedbyanon-Philippinenationalwithintwo(2)calendardaysfromreceiptofwrittenadvicefromtheBAC,theprocuringentityshallawardtothebidderofferingtheForeignBidorthenon-Philippinenational,asthecasemaybe,subjecttopost-qualificationandsubmissionofallthedocumentaryrequirementsunderthisIRR.(n)


53.1.1.Afterconductofthemandatoryreviewoftheterms,conditions,specifications,andcostestimates,asprescribedinSection35ofthisIRR,theBACshallreviseandagreeontheminimumtechnicalspecifications,andifnecessary,adjusttheABC,subjecttotherequiredapprovals.However,theABCcannotbeincreasedbymorethantwentypercent(20%)oftheABCforthelastfailedbidding.(n)

53.1.TwoFailedBiddings

53.1.2.TheBACshallinviteandengageinnegotiationswithasufficientnumberofsuppliers,contractorsorconsultantstoensureeffectivecompetition.(a)53.1.2.1.Inthecaseofinfrastructureprojects53.1.2.2.AllProcuringEntities


53.1.3.Anyrequirements,guidelines,documents,clarifications,orotherinformationrelativetothenegotiationsthatarecommunicatedbytheprocuringentitytoasupplier,contractor,orconsultantshallbecommunicatedonanequalbasistoallothersuppliers,contractors,orconsultantsengaginginnegotiationswiththeprocuringentityrelativetotheprocurement.(n)


53.1.4.Followingcompletionofthenegotiations,theprocuringentityshallrequestallsuppliers,contractors,orconsultantsremainingintheproceedingstosubmit,onaspecifieddate,abestandfinalofferwithrespecttoallaspectsoftheirproposals.(n)


53.1.5.TheprocuringentityshallselectthesuccessfulofferonthebasisofsuchbestandfinalofferswhichshouldmeettheprocuringentitysminimumtechnicalrequirementsandshouldnotexceedtheABC.(n)


53.1.6.Inallstagesofthenegotiations,observersshallbeinvited.(n)


53.3.1.Thecontractmaybenegotiatedstartingwiththesecondlowestcalculated/highestratedbidderfortheprojectunderconsiderationatthebidder soriginalbidprice.(a)

53.3.Take-OverofContracts

53.3.2.Ifnegotiationfails,thennegotiationshallbedonewiththethirdlowestcalculated/highestratedbidderathisoriginalprice.Ifthenegotiationfailsagain,ashortlistofatleastthree(3)eligiblecontractorsshallbeinvitedtosubmittheirbids,andnegotiationshallbemadestartingwiththelowestcalculated/highestratedbidder.(a)


53.3.3.AuthoritytonegotiatecontractsforprojectsundertheseexceptionalcasesshallbesubjecttopriorapprovalbytheHeadsoftheProcuringEntitiesconcerned,withintheirrespectivelimitsofapprovingauthority.(a)


53.9.1.Theprocuringentityshalldrawupalistofatleastthree(3)suppliers,contractors,orconsultantsofknownqualificationswhichwillbeinvitedtosubmitproposals,inthecaseofgoodsandinfrastructureprojects,orcurriculumvitae,inthecaseofconsultingservices.(a)

53.9.SmallValueProcurement

53.9.2.ThethresholdsprescribedinAnnexHofthisIRRshallbesubjecttotheperiodicreviewbytheGPPB.Forthispurpose,theGPPBshallbeauthorizedtoincreaseordecreasethesaidamountinordertoreflectthechangesineconomicconditionsandforotherjustifiablereasons.(n)

53.9.SmallValueProcurement

62.2.1.Fromthetimeprojectconstructioncommenceduptofinalacceptance,thecontractorshallassumefullresponsibilityforthefollowing:a)anydamageordestructionoftheworksexceptthoseoccasionedbyforcemajeure;and

b)safety,protection,security,andconvenienceofhispersonnel,thirdparties,andthepublicatlarge,aswellastheworks,equipment,installationandtheliketobeaffectedbyhisconstructionwork;(a)

62.2.Fortheprocurementofinfrastructureprojects

62.2.2.One(1)yearfromprojectcompletionuptofinalacceptanceorthedefectsliabilityperiod.62.2.2.1.Thecontractorshallundertaketherepairworks,athisownexpense,ofanydamagetotheinfrastructureonaccountoftheuseofmaterialsofinferiorquality,withinninety(90)daysfromthetimetheHeadoftheProcuringEntityhasissuedanordertoundertakerepair.Incaseoffailureorrefusaltocomplywiththismandate,theprocuringentityshallundertakesuchrepairworksandshallbeentitledtofullreimbursementofexpensesincurredthereinupondemand.

62.2.2.2.ThedefectsliabilityperiodshallbecoveredbythePerformanceSecurityofthecontractorrequiredinSection39.1ofthisIRR,whichshallguaranteethatthecontractorperformshisresponsibilitiesstatedintheimmediatelyprecedingSection.IfthecontractorfailstocomplywithitsobligationsunderSection62.2.2.1ofthisIRR,theprocuringentityshallforfeititsperformancesecurity,subjectitsproperty(ies)toattachmentorgarnishmentproceedings,andperpetuallydisqualifyitfromparticipatinginanypublicbidding.AllpayablesoftheGOPinhisfavorshallbeoffsettorecoverthecosts.(a)


62.2.3.FromfinalacceptanceoftheprojectuptotheperiodprescribedinSection62.2.3.2.62.2.3.1.Thefollowingshallbeheldresponsible62.2.3.2.ThewarrantyagainstStructuralDefects62.2.3.3.Toguaranteethatthecontractor62.2.3.4.Thewarrantysecurity


62.2.4.IncaseofStructuralDefects/FailureoccurringduringtheapplicablewarrantyperiodprovidedinSection62.2.3.2hereof,theprocuringentityshallundertakethenecessaryrestorationorreconstructionworksandshallbeentitledtofullreimbursementbythepartiesfoundtobeliableforexpensesincurredthereinupondemand,withoutprejudicetothefilingofappropriateadministrative,civil,and/orcriminalchargesagainsttheresponsiblepersonsaswellastheforfeitureofwarrantysecuritiespostedinfavoroftheprocuringentity.(a)


1.Detailedengineeringshallproceedonlyonthebasisofthefeasibilityorpreliminaryengineeringstudymadewhichestablishesthetechnicalviabilityoftheprojectandconformancetolanduseandzoningguidelinesprescribedbyexistinglaws.Thefindingscontainedinthefeasibilitystudy,ifundertakenfortheproject,shallbeexamined.If,inthecourseofthisexercise,itisfoundthatchangeswouldbedesirableinthedesignstandardsofprincipalfeatures,asproposed,specificrecommendationsforsuchchangesshallbesupportedbydetailedjustifications,includingtheireffectsonthecost,and(ifnecessary)theeconomicjustification.

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2.Ascheduleofdetailedengineeringactivitiesshallincludethefollowing:a)Surveyb)SiteInvestigationc)SoilsandFoundationInvestigationd)ConstructionMaterialsInvestigatione)PreparationofDesignPlansf)PreparationofTechnicalSpecificationsg)PreparationofQuantityandCostEstimatesh)PreparationofProgramofWorki)PreparationofProposedConstructionSchedule(andestimatedCashFlowforprojectswithScheduleoverSix(6)Months)j)PreparationofSiteorRight-of-WayPlansincludingScheduleofAcquisitionk)PreparationofUtilityRelocationPlanl)PreparationandSubmissionofDesignReportm)EnvironmentalImpactStatementforcriticalprojectasdefinedbytheDepartmentofEnvironmentandNaturalResources(DENR)n)PreparationofminimumrequirementsforaConstructionSafetyandHealthProgramfortheprojectbeingconsideredo)PreparationofBid/TenderDocuments

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3.Workunderdetailedengineeringshallinclude,butnotnecessarilybelimitedto,thefollowing:a)DesignStandardsb)FieldSurveysAndInvestigationsc)ContractPlansd)Quantitiese)SpecialProvisionsf)UnitPricesg)ApprovedBudgetfortheContracth)BiddingDocumentsi)ProgramofWorkj)ContractTimeorDurationk)WarrantyPeriodl)ValueEngineeringm)SiteorRight-of-WayAcquisitionPlansandResettlementActionPlans

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4.Asarequirementfortheprocurementofinfrastructureworks,theconcernedconsultants/governmentofficialswhopreparedandapprovedthedetailedengineeringshallissueacertificationthatthedetailedengineeringsurveysanddesignshavebeenconductedaccordingtotheprescribedagencystandardsandspecificationsinconformancewiththeprovisionsofthisAnnex,andthatthedetailedengineeringoutputsareadequatefortheprocurementathand.Theapprovalbytheauthorizedgovernmentofficialsofdetailedengineeringsurveysanddesignsundertakenbyconsultantsneitherdiminishestheresponsibilityofthelatterforthetechnicalintegrityofthesurveysanddesignsnortransferanypartofthatresponsibilitytotheapprovingofficials.

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5.Theaboverulesshallapplytotheimplementationofinfrastructureprojectsundernormalorordinaryconditions.However,underemergencyorextraordinarycasesinvolvingmajorcalamitiesanddisastersasdeclaredbythePresidentwheretimeisoftheessencetosavelivesandpropertiesandrestoredamagedinfrastructures,detailedengineeringworksshallbeconductedinaccordancewiththeguidelinesandprocedures,asprescribedbytheheadoftheappropriateinfrastructureagencyandapprovedbytheInfrastructureCommitteeoftheNationalEconomicandDevelopmentAuthorityBoard,toenablequickresponsetosaidcases,whilemaintainingthesafetyandintegrityofthestructure.

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1.Definition

Anaturalorjuridicalperson,qualifiedbyappropriateeducation,trainingandrelevantexperiencetorenderanyorallofthetypesandfieldsofconsultingservicesasdefinedinthisIRR,shallbeconsideredasaConsultant,subjecttotherequirementsprovidedinthisIRRforeligibilitycheckandpost-qualification.

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2.TheNeedforConsultants

Theservicesofconsultantsmaybeengagedbyanyprocuringentityforgovernmentprojectsorrelatedactivitiesofsuchmagnitudeand/orscopeaswouldrequirealevelofexpertiseorattentionbeyondtheoptimumin-housecapabilityoftheprocuringentityconcernedandconsistentwiththeGovernmentspolicynottocompetewiththeprivatesector.

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3.IndependenceofConsultants

Toensuretheconsultantsprofessionalindependence,integrity,andobjectivity,consultants,aswellaskeystaffworkingfortheconsultingentity,whomaybedirectlyorindirectlyassociatedwithnon-consultingfirmsthatmayhaveaninterestinorbiastowardstheprojectconcerned,shallbeselectedonlyiftheyagreetolimittheirroletothatofconsultantsandwilldisqualifythemselvesandtheiraffiliatesforbiddingforproductsandservicesofthesamegovernmentproject.

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4.HiringofConsultants

4.1.Consultantsshallbehiredonthebasisoftheirprovenexpertise,experienceandcapability.Undercertainconditionsprovidedherein,costmaybeincludedasafactorintheselectionofconsultants.

4.2.InordertomanifesttrustandconfidenceinandpromotethedevelopmentofFilipinoconsultancy,FilipinoconsultantsshallbehiredwhenevertheservicesrequiredfortheprojectarewithintheexpertiseandcapabilityofFilipinoconsultants:Provided,however,ThatintheeventFilipinoconsultantsdonothavethesufficientexpertiseandcapabilitytorendertheservicesrequiredundertheproject,asdeterminedbytheHeadoftheProcuringEntity,foreignconsultantsmaybehired.

4.3.Inthehiringofforeignconsultants,allpertinentlawsandregulationsofthePhilippinesshallbefollowed.

4.4.Technologyandknowledgetransfertotheprocuringentityshallberequiredintheprovisionofconsultingservices,whereapplicable.

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5.OrganizationofConsultants

5.1.TheumbrellaorganizationofconsultantsrecognizedbytheGovernmentshallbecomposedofthevariousorganizationsofconsultantsthatmaybeengagedbytheGovernmentunderthisIRRandshallaccredititsmembersonthetypesofservicesandfieldsofprofessionswherethemembersaretechnicallyandfinanciallyqualifiedtooffertheirservices.TheumbrellaorganizationshallprepareandcertifyalistoffieldsandexpertiseinsuchfieldsavailablewiththenamesoftheaccreditedlocalconsultantswhichshallbeupdatedannuallyorasoftenasnecessaryanddisseminatesuchlisttoconcernedagenciesoftheGovernment.Itshalllikewiseregulateitsmembersforthedevelopmentoftheindustry.TheGovernmentmayconsultanddealwiththisumbrellaorganizationonmattersrelatingtotheindustry.TheGPPBshallbetheappropriategovernmentbodythatshallrecognizetheconsultantsumbrellaorganization.

5.2.TheumbrellaorganizationmaysubmititsfilesofaccreditedconsultantstotheBACoftheprocuringentityinaccordancewiththeformprescribedbytheBACwhichcanserveasregistrationoftheconsultantsunderthenextsucceedingSubsection:Provided,however,ThateachsuchaccreditedconsultantshallcomplywiththeeligibilityrequirementsprovidedinthisIRR.Suchqualificationstatements,togetherwiththelistofaccreditedconsultantspreparedinaccordancewiththeimmediatelyprecedingsection,shallguidetheBACindeterminingthefieldswhereFilipinoconsultantsarealreadyqualifiedandcapableandwhereforeignconsultantsmaynotberequired.

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6.TypesofConsultingServicesTheservicestobeprovidedbyconsultantscanbedividedintosix(6)broadcategories,namely:(a)advisoryandreviewservices;(b)pre-investmentorfeasibilitystudies;(c)design;(d)constructionsupervision;(e)managementandrelatedservices;and(f)othertechnicalservicesorspecialstudies.

6.1.AdvisoryandReviewServices6.2.Pre-InvestmentorFeasibilityStudies6.3.Design6.4.ConstructionSupervision6.5.ManagementandRelatedServices6.6.OtherTechnicalServicesorSpecialStudies

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LATESTALLOWABLETIME

StageActivitiesDeadlineGoodsInfrastructureProjectsConsultingServicesForABC50MandbelowForABCabove50M

1Advertisement/PostingofInvitationtoBid/RequestforExpressionofInterest7cd7cd7cd7cd2EligibilityCheck(andShortListing,incaseofConsultingServices)RefertoStage5RefertoStage5RefertoStage520cd3IssuanceandavailabilityofBiddingDocumentsFrom1stdayofStage1untilStage54Pre-bidConference12cdbeforeStage51cd1cd1cd1cdRequestforclarification10cdbeforeStage5Supplemental/BidBulletin7cdbeforeStage55SubmissionandreceiptofBids45cdfromlastdayofStage1forGoods.50/65cdfromlastdayofStage1forInfrastructureProjects.75cdfromlastdayofStage1forConsultingServices.1cd(includesopeningofbidsandeligibilitycheck)1cd(includesopeningofbidsandeligibilitycheck)1cd(includesopeningofbidsandeligibilitycheck)1cd(includesopeningofbids)Submissionofadditionalrequirements3cdafterStage56BidEvaluation7cd5cd7cd21cd+2cdforapprovalofranking7Notificationfornegotiationn/an/an/a3cd8Negotiationn/an/an/a10cd9Post-qualification30cd30cd30cd30cd10Approvalofresolution/IssuanceofNoticeofAward7cd4cd7cd7cd11Contractpreparationandsigning10cd10cd10cd10cd12Approvalofcontract15cd5cd15cd15cdbyhigherauthority13IssuanceofNoticetoProceed3cd2cd3cd3cdTotalTime124cd113cd144cd170cd

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EARLIESTPOSSIBLETIME

StageActivitiesDeadlineGoodsInfrastructureProjectsConsultingServices

1Advertisement/PostingofInvitationtoBid/RequestforExpressionofInterest7cd7cd7cd2EligibilityCheck(andShortListing,incaseofConsultingServices)RefertoStage5RefertoStage53cd(1cdforeligibility,1cdforshortlisting,and1cdfornotice)3IssuanceandavailabilityofBiddingDocumentsFrom1stdayofStage1untilStage54Pre-bidConference12cdbeforeStage51cd1cd1cdRequestforclarification10cdbeforeStage5Supplemental/BidBulletin7cdbeforeStage55SubmissionandreceiptofBids1cd(includesopeningofbidsandeligibilitycheck)1cd(includesopeningofbidsandeligibilitycheck)1cd(includesopeningofbids)Submissionofadditionalrequirements3cdafterStage56BidEvaluation1cd1cd1cd+1cdforapprovalofranking7Notificationfornegotiationn/an/a1cd8Negotiationn/an/a1cd9Post-qualification1cd1cd1cd10Approvalofresolution/IssuanceofNoticeofAward2cd(1cdforBACresolutionand1cdforNOA2cd(1cdforBACresolutionand1cdforNOA2cd(1cdforBACresolutionand1cdforNOA11Contractpreparationandsigning2cd(1cdforcontractpreparationand1cdforcontractsigning2cd(1cdforcontractpreparationand1cdforcontractsigning2cd(1cdforcontractpreparationand1cdforcontractsigning12Approvalofcontract1cd1cd1cdbyhigherauthority13IssuanceofNoticetoProceed1cd1cd1cdTotalTime28cd28cd34cd

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1.AmendmenttoOrder

1.1.Subjecttotheconditions1.2.Anamendmenttoordermaybeissuedonlyinemergencycases1.3.Anamendmenttoordermayalsobeissuedbytheconcernedprocuringentity1.4.Undernocircumstances

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2.SuspensionofWork

2.1.Theprocuringentitymaysuspendtheworkwhollyorpartlybywrittenorderforacertainperiodoftime,asitdeemsnecessaryduetoforcemajeureoranyfortuitouseventsasdefinedinthecontract.Thesupplierorconsultantshalltakeallreasonablestepstominimizethecostsallocabletotheworkcoveredbysuchorderduringworkstoppage.

2.2.Beforethesuspensionorderexpires,theprocuringentityconcernedshalleitherliftsuchorderorterminatetheworkcoveredbythesame.Ifthesuspensionorderislifted,oriftheperiodoftheorderexpires,thesupplierorconsultantshallhavetherighttoresumework.Appropriateadjustmentsshallbemadeinthedeliveryorcontractschedule,orcontractprice,orboth,andthecontractshallbemodifiedaccordingly.

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3.LiquidatedDamages

3.1.Whenthesupplierfailstosatisfactorilydelivergoodsunderthecontractwithinthespecifieddeliveryschedule,inclusiveofdulygrantedtimeextensions,ifany,thesuppliershallbeliablefordamagesforthedelayandshallpaytheprocuringentityliquidateddamages,notbywayofpenalty,anamountequaltoone-tenth(1/10)ofonepercent(1%)ofthecostofthedelayedgoodsscheduledfordeliveryforeverydayofdelayuntilsuchgoodsarefinallydeliveredandacceptedbytheprocuringentityconcerned.

3.2.Theprocuringentityneednotprovethatithasincurredactualdamagestobeentitledtoliquidateddamages.Suchamountshallbedeductedfromanymoneydueorwhichmaybecomeduetothesupplier,orcollectedfromanysecuritiesorwarrantiespostedbythesupplier,whicheverisconvenienttotheprocuringentityconcerned.Innocaseshallthetotalsumofliquidateddamagesexceedtenpercent(10%)ofthetotalcontractprice,inwhicheventtheprocuringentityconcernedshallautomaticallyrescindthecontractandimposeappropriatesanctionsoverandabovetheliquidateddamagestobepaid.

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4.AdvancePayment

4.1.InaccordancewithPresidentialDecree14454.2.Allprogresspayments4.3.Asingleadvancepayment4.4.Advancepayment4.5.Forgoodssupplied

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5.OtherRulesandGuidelines

TherulesandregulationsfortheotheraspectsofcontractimplementationshallbeincludedinthemanualstobeissuedbytheGPPB,suchas,butnotlimitedto,thefollowing:a)IncidentalServices;b)SpareParts;c)DelaysintheSupplier sPerformance;d)Purchaser sResponsibilities;e)Prices;f)Payment;g)TaxesandDuties;h)Subcontracts;i)Standards;j)Packing;k)Insurance;l)Transportation;m)InspectionsandTests;n)PatentRights;o)LimitationsofLiability;p)TerminationforDefault;q)TerminationforInsolvency;r)TerminationforConvenience;ands)Assignment.

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1.VARIATIONORDERS-CHANGEORDER/EXTRAWORKORDER

1.1.VariationOrders1.2.AChangeOrder1.3.AnExtraWorkOrder1.4.AnycumulativepositiveVariationOrder1.5.InclaimingforanyVariationOrder

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2.ADDITIONAL/EXTRAWORKCOSTING

2.1.ForVariationOrders,thecontractorshallbepaidforadditionalworkitemswhoseunitpricesshallbederivedbasedonthefollowing:a)Foradditional/extraworksdulycoveredbyChangeOrdersinvolvingworkitemswhichareexactlythesameorsimilartothoseintheoriginalcontract,theapplicableunitpricesofworkitemsoriginalcontractshallbeused.b)Foradditional/extraworksdulycoveredbyExtraWorkOrdersinvolvingnewworkitemsthatarenotintheoriginalcontract,theunitpricesofthenewworkitemsshallbebasedonthedirectunitcostsusedintheoriginalcontract(e.g.,unitcostofcement,rebars,formlumber,laborrate,equipmentrental,etc.).Allnewcomponentsofthenewworkitemshallbefixedprices,providedthesameisacceptabletoboththeGovernmentandthecontractor,andprovidedfurtherthatthedirectunitcostsofnewcomponentsshallbebasedonthecontractor'sestimateasvalidatedbytheprocuringentityconcernedviadocumentedcanvassinaccordancewithexistingrulesandregulations.Thedirectcostofthenewworkitemshallthenbecombinedwiththemark-upfactor(i.e.,taxesandprofit)usedbythecontractorinhisbidtodeterminetheunitpriceofthenewworkitem.

2.2.Requestforpaymentbythecontractorforanyextraworkshallbeaccompaniedbyastatement,withtheapprovedsupportingforms,givingadetailedaccountingandrecordofamountforwhichheclaimspayment.Saidrequestforpaymentshallbeincludedwiththecontractor'sstatementforprogresspayment.

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3.CONDITIONSUNDERWHICHCONTRACTORISTOSTARTWORKUNDERVARIATIONORDERSANDRECEIVEPAYMENTS

3.1.UndernocircumstancesshallacontractorproceedtocommenceworkunderanyChangeOrderorExtraWorkOrderunlessithasbeenapprovedbytheHeadoftheProcuringEntityorhisdulyauthorizedrepresentative.Exceptionstotheprecedingrulearethefollowing:

a)TheHeadoftheProcuringEntityb)ForaChangeOrderorExtraWorkOrder

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4.ADVANCEPAYMENT

4.1.Theprocuringentityshall,uponawrittenrequestofthecontractorwhichshallbesubmittedasacontractdocument,makeanadvancepaymenttothecontractorinanamountnotexceedingfifteenpercent(15%)ofthetotalcontractprice,tobemadeinlumpsumor,atthemost,twoinstallmentsaccordingtoaschedulespecifiedintheInstructionstoBiddersandotherrelevantTenderDocuments.

4.2.Theadvancepaymentshallbemadeonlyuponthesubmissiontoandacceptancebytheprocuringentityofanirrevocablestandbyletterofcreditofequivalentvaluefromacommercialbank,abankguaranteeorasuretybondcallableupondemand,issuedbyasuretyorinsurancecompanydulylicensedbytheInsuranceCommissionandconfirmedbytheprocuringentity.

4.3.Theadvancepaymentshallberepaidbythecontractorbydeductingfifteenpercent(15%)fromhisperiodicprogresspaymentsapercentageequaltothepercentageofthetotalcontractpriceusedfortheadvancepayment.

4.4.ThecontractormayreducehisstandbyletterofcreditorguaranteeinstrumentbytheamountsrefundedbytheMonthlyCertificatesintheadvancepayment.

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5.PROGRESSPAYMENT

5.1.Onceamonth,thecontractormaysubmitastatementofworkaccomplished(SWA)orprogressbillingandcorrespondingrequestforprogresspaymentforworkaccomplished.TheSWAshouldshowtheamountswhichthecontractorconsidersitselftobeentitledtouptotheendofthemonth,tocover(a)thecumulativevalueoftheworksitexecutedtodate,basedontheitemsintheBillofQuantities,and(b)adjustmentsmadeforapprovedvariationordersexecuted.

5.2.Theprocuringentitysrepresentative/projectengineershallcheckthecontractor smonthlySWAandcertifytheamounttobepaidtothecontractorasprogresspayment.ExceptasotherwisestipulatedintheInstructiontoBidders,materialsandequipmentdeliveredonthesitebutnotcompletelyputinplaceshallnotbeincludedforpayment.

5.3.Theprocuringentityshalldeductthefollowingfromthecertifiedgrossamountstobepaidtothecontractorasprogresspayment:

a)Cumulativevalueoftheworkpreviouslycertifiedandpaidfor.b)Portionoftheadvancepaymenttoberecoupedforthemonth.c)Retentionmoneyinaccordancewiththeconditionofcontract.d)Amounttocoverthirdpartyliabilities.e)Amounttocoveruncorrecteddiscovereddefectsintheworks.

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6.RETENTIONMONEY

6.1.Progresspaymentsaresubjecttoretentionoftenpercent(10%)referredtoasthe"retentionmoney."Suchretentionshallbebasedonthetotalamountduetothecontractorpriortoanydeductionandshallberetainedfromeveryprogresspaymentuntilfiftypercent(50%)ofthevalueofworks,asdeterminedbytheprocuringentity,arecompleted.If,afterfiftypercent(50%)completion,theworkissatisfactorilydoneandonschedule,noadditionalretentionshallbemade;otherwise,thetenpercent(10%)retentionshallbeimposed.

6.2.Thetotal"retentionmoney"shallbedueforreleaseuponfinalacceptanceoftheworks.Thecontractormay,however,requestthesubstitutionoftheretentionmoneyforeachprogressbillingwithirrevocablestandbylettersofcreditoffromacommercialbank,bankguaranteesorsuretybondscallableondemand,ofamountsequivalenttotheretentionmoneysubstitutedforandacceptabletoGovernment,providedthattheprojectisonscheduleandissatisfactorilyundertaken.Otherwise,thetenpercent(10%)retentionshallbemade.Saidirrevocablestandbylettersofcredit,bankguaranteesand/orsuretybonds,tobepostedinfavoroftheGovernmentshallbevalidforadurationtobedeterminedbytheconcernedimplementingoffice/agencyorprocuringentityandwillanswerforthepurposeforwhichthetenpercent(10%)retentionisintended,i.e.,tocoveruncorrecteddiscovereddefectsandthirdpartyliabilities.

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7.CONTRACTCOMPLETION

Oncetheprojectreachesanaccomplishmentofninetyfive(95%)ofthetotalcontractamount,theprocuringentitymaycreateaninspectorateteamtomakepreliminaryinspectionandsubmitapunch-listtothecontractorinpreparationforthefinalturnoveroftheproject.Saidpunch-listwillcontain,amongothers,theremainingworks,workdeficienciesfornecessarycorrections,andthespecificduration/timetofullycompletetheprojectconsideringtheapprovedremainingcontracttime.This,however,shallnotprecludetheprocuringentity'sclaimforliquidateddamages.

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8.LIQUIDATEDDAMAGES

8.1.Wherethecontractorrefusesorfails8.2.Aprojectoraportionthereofmaybedeemed8.3.Tobeentitledtosuchliquidateddamages8.4.Incasethatthedelayinthecompletionofthework8.5.Innocasehowever,shallthetotalsumofliquidateddamages8.6.Forterminatedcontracts

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9.SUSPENSIONOFWORK

9.1.Theprocuringentity9.2.Thecontractor9.3.Incaseoftotalsuspension

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10.EXTENSIONOFCONTRACTTIME

10.1.Shouldtheamountofadditionalwork10.2.Noextensionofcontracttimeshallbegrantedthecontractor10.3.Extensionofcontracttimemaybegrantedonlywhentheaffectedactivities10.4.Noextensionofcontracttimeshallbegrantedwhenthereasongiventosupport10.5.Extensionofcontracttimeshallbegrantedforrainy/unworkabledays

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11.ACCREDITATIONOFTESTINGLABORATORIES

11.1.Tohelpensurethequalityofmaterialsbeingusedininfrastructureprojects,theBureauofResearchandStandards(BRS)oftheDPWH,DepartmentofScienceandTechnology(DOST),orDepartmentofTradeandIndustry(DTI)shallaccredit,inaccordancewithindustryguidelines,thetestinglaboratorieswhoseservicesareengagedortobeengagedininfrastructureprojects.Allgovernmentinfrastructureprojectownersmustacceptresultsofmaterialtest(s)comingonlyfromDOST/BRSaccreditedlaboratories.

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12.EVALUATIONOFCONTRACTORSPERFORMANCE

12.1.SubjectandScopeAllProcuringEntities12.2.EvaluationGuidelines12.3.ImplementationMechanism12.4.SubmissionandDissemination12.5.UtilizationofEvaluationResults

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13.OTHERRULESANDGUIDELINESTherulesandregulationsfortheotheraspectsofcontractimplementationshallbeincludedinthemanualstobeissuedbytheGPPB,suchas,butnotlimitedto,thefollowing:a)Sub-contracting;b)InterferencewithTrafficandAdjoiningProperties;c)ClearanceofProjectSiteofObstruction;d)InspectionandTesting;e)Daywork;f)MeasurementofWorks;andg)OtherImplementationAspects.

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1.SCOPEANDAPPLICATION

TheseguidelinesshallgoverntheprocurementandimplementationofcontractsfordesignandbuildinfrastructureprojectsandshallsupplementapplicableprovisionsofRepublicActNo.9184(RA9184)anditsRevisedImplementingRulesandRegulations(IRR)inparticularSection17.6andAnnexE.

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2.PURPOSE

Theseguidelinesareformulatedtodeterminetheconditionsfortheuseofthedesignandbuildschemeforinfrastructureprojectsandtheproceduresfortheimplementationthereof.

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3.GUIDINGPRINCIPLESTheprocuringentity,priortoresortingtothedesignandbuildscheme,shouldconsiderthefollowingadvantagesanddisadvantagesofsaidscheme:

3.1.Advantages3.2.Disadvantages

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4.DEFINITIONOFTERMS

a.ApprovedBudgetfortheContract(ABC)b.BiddingDocumentsforDesignandBuildSchemec.ConceptualDesignd.DesignandBuildProjectse.PerformanceSpecificationsandParametersf.PreliminaryInvestigationsg.PreliminarySurveyandMappingh.ProjectDescriptioni.UtilityLocations

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5.CONDITIONSFORTHEUSEOFTHEDESIGNANDBUILDSCHEME

5.1.TheDesignandBuildscheme5.2.Alldesignandbuildprojects

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6.CREATIONOFDESIGNandBUILDCOMMITTEE

TheprocuringentitymaycreateaDesignandBuildCommittee(DBC)composedofhighlytechnicalpersonnelexperiencedinthefieldofarchitecture,engineeringandconstructionintheparticulartypeofprojecttobebid.TheDBCshallassisttheprojectmanagementoffice(PMO)inthepreparationoftheconceptualdesignandperformancespecificationsandparameters,reviewofdetailedengineeringdesignandsupervisionoftheproject.Itshall,likewise,assisttheBidsandAwardsCommittee(BAC)andtheTechnicalWorkingGroup(TWG)intheevaluationoftechnicalproposalsinaccordancewiththecriteriasetintheBiddingDocuments.

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7.PRELIMINARYDESIGNANDCONSTRUCTIONSTUDIES

NobiddingandawardofdesignandbuildcontractsshallbemadeunlesstherequiredpreliminarydesignandconstructionstudieshavebeensufficientlycarriedoutanddulyapprovedbytheHeadoftheProcuringEntitythatshallinclude,amongothers,thefollowing:

i.ProjectDescriptionii.ConceptualDesigniii.PerformanceSpecificationsandParametersiv.PreliminarySurveyandMappingv.PreliminaryInvestigationsvi.UtilityLocationsvii.ApprovedBudgetfortheContractviii.ProposedDesignandConstructionScheduleix.MinimumrequirementsforaConstructionSafetyandHealthProgramfortheprojectbeingconsideredx.Tender/BiddingDocuments,includingInstructionstoBiddersandConditionsofContract

Theabovedataareforreferenceonly.Theprocuringentitydoesnotguaranteethatthesedataarefullycorrect,uptodate,andapplicabletotheprojectathand.Thecontractorisresponsiblefortheaccuracyandapplicabilityofalldata,includingtheabove,thatitwilluseinitsdesignandbuildproposalandservices.Theacquisitionofright-of-wayandtheconductofeminentdomainproceedingsshallstillbetheresponsibilityoftheprocuringentity,whichshallincludeapreliminarybudgetforthispurpose.

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8.DETAILEDENGINEERINGREQUIREMENTS

8.1.Uponawardofthedesignandbuildcontract,thewinningbiddershallberesponsibleforthepreparationandsubmissionofallnecessarydetailedengineeringinvestigations,surveysanddesignsinaccordancewiththeprovisionsofAnnexAofthisIRR(withtheexceptionoftheBiddingDocumentsandtheABC).

8.2.Theprocuringentityshallensurethatallthenecessaryscheduleswithregardtothesubmission,confirmationandapprovalofthedetailedengineeringdesignandthedetailsoftheconstructionmethodsandproceduresshallbeincludedinthecontractdocuments.

8.3.Theprocuringentityshallreview,orderrectification,andapproveordisapproveforimplementationonly-thesubmittedplanswithintheseschedules.Allinstructionsforrectificationshallbeinwritingstatingthereasonsforsuchrectification.Thedesignandbuildcontractorshallbesolelyresponsiblefortheintegrityofthedetailedengineeringdesignandtheperformanceofthestructureirrespectiveoftheapproval/confirmationbytheprocuringentity.

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9.ELIGIBILITYREQUIREMENTS

9.1.TheeligibilityrequirementsforDesignandBuildinfrastructureprojectsshallcomplywiththeapplicableprovisionsofSections23-24ofIRR.

9.2.Amodifiedsetofrequirementsintegratingeligibilitydocumentsandcriteriaforinfrastructureprojectsandconsultingservicesshallbeadopted,asfollows:

i.ClassADocumentsii.EligibilityCriteria

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10.SUBMISSIONANDRECEIPTOFBIDS

10.1.Inthesubmissionofbids,thefirstenvelope10.2.Thesecondenvelope

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11.BIDEVALUATION

Forthedetailedevaluationofthedesignandbuildproposalsatwo-stepprocedureshallbeadoptedbytheBAC,whichmaybeundertakenwiththeassistanceoftheDBC.

11.1.First-StepProcedure11.2.Second-StepProcedure

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12.POST-QUALIFICATIONandAWARDOFTHECONTRACT

12.1.TheLCBshallbesubjecttopost-qualificationinaccordancewithSection34,RuleXofthisIRRtodetermineitsresponsivenesstotheeligibilityandbidrequirements.Ifafterpost-qualificationtheLowestCalculatedBidisdeterminedtobepost-qualifieditshallbeconsideredtheLowestCalculatedandResponsiveBid(LCRB)andthecontractshallbeawardedtothebidder.Incaseofpost-disqualificationoftheLCB,theprocedureunderSection34shallalsobefollowed.

12.2.TheHeadoftheProcuringEntityshallapproveordisapprovetherecommendationsoftheBACwithinaperiodnotexceedingseven(7)calendardaysfromthedeterminationanddeclarationbytheBACoftheLCRB.

12.3.TheHeadoftheProcuringEntityconcernedshallawardthecontracttothesaidbidderpursuanttotheprovisionsofSection37,RuleXIofthisIRR.

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13.CONTRACTIMPLEMENTATION

13.1.Noworksshallcommence13.2.Thecontractorshallberesponsible13.3.TheContractorshallsubmitadetailedprogram13.4.Anyerrors,omissions,inconsistencies,inadequacies13.5.Asarule,changesindesignandconstructionrequirements13.6.Thecontractdocuments13.7.Thecontractorshallbeentitled13.8.Theprocuringentityshalldefinethequalitycontrol13.9.Thecontractorshallprovideallnecessaryequipment13.10.Alldesignandbuildprojects13.11.Thecontractorshallbeheldliablefordesign

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14.AMENDMENTSANDFORMS

Intheimplementationoftheseguidelines,theGPPBmayissueadditionalguidelinesorintroducemodificationstheretothroughtheamendmentofitsspecificprovisionsastheneedarises,aswellas,formulate,approveanddisseminatestandardBiddingDocuments,formsandevaluationdocuments,whenevernecessary.

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(i)theheadoftheagencyorbody,orhisdulyauthorizedofficial,forNGAsandtheconstitutionalcommissionsoroffices,andbranchesofgovernment;

t)HeadoftheProcuringEntity

(ii)thegoverningboardoritsdulyauthorizedofficial,forGOCCs,GFIsandSUCs;or

t)HeadoftheProcuringEntity

(iii)thelocalchiefexecutive,forLGUs:Provided,however,Thatinanagency,department,orofficewheretheprocurementisdecentralized,theheadofeachdecentralizedunitshallbeconsideredastheHeadoftheProcuringEntity,subjecttothelimitationsandauthoritydelegatedbytheheadoftheagency,department,oroffice.

HeadoftheProcuringEntity

a)ComplywiththeprovisionsoftheActandthisIRR,andR.A.8792,otherwiseknownasthe"ElectronicCommerceAct;"

8.1.2Totakeadvantageofthesignificantbuilt-inefficienciesofthePhilGEPS

b)LinkedtothePhilGEPS,particularlywithregardtothepostingofallbidopportunitiesandawards;


c)Allowparallelmanualsubmissionofbidstotheprocuringentity;


d)EnsurethattheBACshallhavecompletecontrolofthebiddingprocess,andthattheBAC'ssoleauthoritytoopenbidsisstrictlyobserved;


e)Itssystemmustbevirus-resilientandmustprovidesufficientsecuritywhichisatleastequivalenttothatemployedbythePhilGEPS,suchas,butnotlimitedto,firewallandencryptiondevices;


f)Mustprovidefortheuseofelectronicsignaturesandothercurrentelectronicauthenticationdevices;


g)Musthavesufficientredundantback-upfacilities;


h)Musthaveprovisionsforlinkagetotheprocuringentity'sFinancialManagementInformationSystem(FMIS),LogisticsManagementSystems,andotherinternalinformationsystemsthatmayinteractwiththeprocurementprocess;and


i)Electronicpaymentfacilities,ifused,shallcomplywithalllaws,rulesandregulationsissuedbytheGovernment.


a)ThePhilGEPSshallhaveacentralizedelectronicdatabaseofallmanufacturers,suppliers,distributors,contractorsandconsultantsregisteredunderthesystem.


b)RegistrationshallentailthesubmissionoftherequirementsspecifiedbythePS-DBM.Submissionoftheserequirementsmaybedoneon-lineatthePhilGEPSwebsiteorphysicallyatthePhilGEPSoffice.Registrationshallbeeffectiveforoneyearandmayberenewed,providedthatthemanufacturer,supplier,distributor,contractororconsultantconcernedmaintainsitsregistrationcurrentandupdatedatleastonceayear,ormorefrequentlywhenneeded.


c)Manufacturers,suppliers,distributors,contractorsandconsultantsapplyingforregistrationmustalsoindicatetheiraccountnumberwithabankdulylicensedbytheBangkoSentralngPilipinas(BSP)tofacilitatepaymentaswellasthepostingofbidandperformancesecurity,whenapplicable.Anyinformationsubmittedinconnectionwiththissubsectionshallbekeptconfidential.(a)


d)ThePhilGEPSshalldenyregistrationtoorexcludefromtheregistryanypartythatisfoundtohavewillfullymisrepresentedanyoftheinformationprovidedintheapplicationforregistrationorwhoisinthe"blacklist"oftheGovernmentoranyofitsProcuringEntitiesinaccordancewithSection69.4ofthisIRR,includingforeigngovernment/foreignorinternationalfinancinginstitutionwhoseblacklistingruleshavebeenrecognizedbytheGPPB.


e)Amanufacturer,supplier,distributor,contractororconsultantapplyingforregistrationshallberequiredtoprovideane-mailaddresstowhichallcommunicationsfromtheBACandtheprocuringentityshallbesent.Thee-mailaddressprovidedshallbeconsideredassuchapplicant'sinformationsystemforpurposesofreckoningthedateofsendingorreceiptofelectronicmessagesordocuments.


f)Registeredmanufacturers,suppliers,distributors,contractorsandconsultantsshallsecureadigitalcertificatefromthegovernment-accreditedcertificationauthoritytobeabletoparticipateintheprocurementactivitiesofthePhilGEPS.(a)


g)RegistrationwiththePhilGEPSisnotanaccreditationandthusnottantamounttoafindingofeligibility,norisitaguarantythatamanufacturer,supplier,distributor,contractororconsultantmayparticipateinapublicbiddingwithoutfirstbeingdeterminedtobeeligibleforthatparticularpublicbidding.


a)ThePhilGEPSshallhaveacentralizedelectroniccatalogueofcommonandnon-commonusegoods,supplies,materialsandequipment.


b)ProcuringEntitiesshallprocurecommon-usegoods,supplies,materialsandequipmentfromtheElectronicCatalogueinthePhilGEPS.TobeabletousethePhilGEPS,ProcuringEntitiesshallberequiredtoregisteranddesignatetheofficialsorpersonnelauthorizedtotransactwithandoperatethePhilGEPSfromsuchProcuringEntities'terminals.


c)ProcuringEntitieswithoutinternetaccessmayavailofthePhilGEPSPublicAccessTerminalswhichshallbeinstalledatDBM-designatedlocationsintheprovincesandinMetroManila:Provided,however,ThattheyshallcomplywithSection8.3ofthisIRR.


d)TheElectronicCataloguemayalsofeaturenon-commonuseitemsthatmaybeprocureddirectlyandwithoutpublicbiddingbyProcuringEntitiesfromsuppliersthroughthePhilGEPSVirtualStore:Provided,however,ThatforanitemtobecarriedintheElectronicCatalogueforthispurpose,thesupplierthereofmusthavebeendeterminedastheLowestCalculatedResponsiveBidderinapreviousbiddingconductedbyPS-DBMorbyaprocuringentityforPS-DBM:Provided,further,ThatsuchitemwillbefeaturedintheElectronicCatalogueforamaximumperiodofsix(6)monthsunlessanothersupplieroffersapricelowerbyatleastfivepercent(5%)andsuchsupplierisdeterminedbythePS-DBMorbytheprocuringentitythatconductedthepreviousbiddingforPS-DBMtomeettheeligibilityandbiddingrequirementsfortheitem,inwhichcasetheitemfromthelattersupplierwillbethatfeaturedintheElectronicCataloguefortheremainderofthesix(6)-monthperiod.(a)


8.2.4.1.VirtualStoreThePhilGEPSmayhaveafeaturethatwillenabletheorderingofcommon-useandnon-commonuseitemsonlinecalledavirtualstore.Thevirtualstoreshallbeopenonlytoregisteredprocuringentitiesandmaynotbeaccessedbysuppliers.

8.2.4.AdditionalFeatures

8.2.4.2.ElectronicPaymentThePhilGEPSmaysupporte-paymentfunctionstopayforgoodspurchasedthroughtheVirtualStoretomanagethegenerationofpurchaseordersandthepaymentofbidsprocessedthroughthesystem.(a)ThefocusofthisfeatureistofacilitatetheelectronictransferoffundsfromPS-DBMtoandfromprocuringentitiesandsuppliers,andfromprocuringentitiestosuppliers,forbidsmanageddirectlybytheprocuringentity.Thesystemshall:a)Generatepurchaseordersfromabidnotice,awardnoticeorcontract;

b)Supportapprovalprocessforpurchaseordersbeforeanypaymentorfundtransferisprocessed;

c)Haveaprocesstosubmitrequestforpaymentupondeliveryofgoodsand/orservicesandthecompletionoftheapprovalprocess;and

d)Havetheabilitytointerfacewiththedesignatedbankoftheprocuringentityandsupplierstosupporttheelectronictransferoffunds.


8.2.4.3.ElectronicBidSubmissionThePhilGEPSmaysupporttheimplementationofe-Bidsubmissionprocesses,whichincludescreationofelectronicbidforms,creationofbidbox,deliveryofbidsubmissions,notificationtosupplierofreceiptofbids,bidreceivingandelectronicbidevaluation.Thisfacilityshallcoveralltypesofprocurementforgoods,infrastructureprojectsandconsultingservices.


23.5.1.1.Thefollowingshallbeeligibletoparticipateinthebiddingforthesupplyofgoods:a)DulylicensedFilipinocitizens/soleproprietorships;

b)PartnershipsdulyorganizedunderthelawsofthePhilippinesandofwhichatleastsixtypercent(60%)oftheinterestbelongstocitizensofthePhilippines;

c)CorporationsdulyorganizedunderthelawsofthePhilippines,andofwhichatleastsixtypercent(60%)oftheoutstandingcapitalstockbelongstocitizensofthePhilippines;

d)CooperativesdulyorganizedunderthelawsofthePhilippines,andofwhichatleastsixtypercent(60%)belongstocitizensofthePhilippines;or

e)Persons/entitiesformingthemselvesintoajointventure,i.e.,agroupoftwo(2)ormorepersons/entitiesthatintendtobejointlyandseverallyresponsibleorliableforaparticularcontract:Provided,however,ThatFilipinoownershiporinterestofthejointventureconcernedshallbeatleastsixtypercent(60%).Forthispurpose,FilipinoownershiporinterestshallbebasedonthecontributionsofeachofthemembersofthejointventureasspecifiedintheirJVA.(a)


23.5.1.2.Foreignbiddersmaybeeligibletoparticipateunderanyofthefollowingcircumstances:a)WhenprovidedforunderanyTreatyorInternationalorExecutiveAgreementasprovidedinSection4oftheActandthisIRR;

b)Whentheforeignsupplierisacitizen,corporationorassociationofacountry,includedinAnnex"I"tobeissuedbytheGPPB,thelawsorregulationsofwhichgrantreciprocalrightsorprivilegestocitizens,corporationsorassociationsofthePhilippines;

c)Whenthegoodssoughttobeprocuredarenotavailablefromlocalsuppliers;ord)Whenthereisaneedtopreventsituationsthatdefeatcompetitionorrestraintrade.TheGPPBshallpromulgatethenecessaryguidelinesforthisprovision.(a)


23.5.1.3.Theprospectivebiddermusthavecompleted,withintheperiodspecifiedintheInvitationtoBid,asinglecontractthatissimilartothecontracttobebid,andwhosevalue,adjustedtocurrentpricesusingtheNationalStatisticsOffice(NSO)consumerpriceindices,mustbeatleastfiftypercent(50%)oftheABC.However,inthecaseofExpendableSupplies,saidsinglecontractmustbeatleasttwentyfivepercent(25%)oftheABC.If,attheoutsetandafterconductingmarketresearch,theprocuringentitycanalreadydeterminethatimposingthesamewilllikelyresultto:(a)failureofbidding,or(b)monopolythatwilldefeatthepurposeofpublicbidding,theprocuringentity,inlieuoftheabove,mayrequirethefollowing:i)Theprospectivebiddershouldhavecompletedatleasttwo(2)similarcontractsandtheaggregatecontractamountsshouldbeequivalenttoatleastthepercentageoftheABCasrequiredabove;and

ii)ThelargestofthesesimilarcontractsmustbeequivalenttoatleasthalfofthepercentageoftheABCasrequiredabove.Forthispurpose,thesimilarcontractsmentionedunder(i)and(ii)abovemusthavebeencompletedwithintheperiodspecifiedintheInvitationtoBid.TheprocuringentitymayclarifyintheBiddingDocumentsthedefinitionordescriptionofwhatitconsiderstobeasimilarproject.(a)


23.5.1.4.IftheprospectivebiddersubmitsacomputationofitsNFCC,theNFCCmustbeatleastequaltotheABCtobebid,calculatedasfollows:NFCC=[(Currentassetsminuscurrentliabilities)(K)]minusthevalueofalloutstandingoruncompletedportionsoftheprojectsunderongoingcontracts,includingawardedcontractsyettobestartedcoincidingwiththecontracttobebid.Where:K=10foracontractdurationofoneyearorless,15foracontractdurationofmorethanoneyearuptotwoyears,and20foracontractdurationofmorethantwoyears.IftheprospectivebiddersubmitsaCLC,theCLCmustbeatleastequaltotenpercent(10%)oftheABCtobebid.IftheCLCisissuedbyaforeignUniversalorCommercialBank,itshallbeconfirmedorauthenticatedbyaUniversalorCommercialBank.ForbiddingsconductedbyLGUs,theprospectivebiddermayalsosubmitCLCfromotherbankscertifiedbytheBSPasauthorizedtoissuesuchfinancialinstrument.(a)


23.5.2.1.Thefollowingpersons/entitiesshallbeallowedtoparticipateinthebiddingforinfrastructureprojects:a)DulylicensedFilipinocitizens/soleproprietorships;

b)PartnershipsdulyorganizedunderthelawsofthePhilippinesandofwhichatleastseventy-fivepercent(75%)oftheinterestbelongstocitizensofthePhilippines;

c)CorporationsdulyorganizedunderthelawsofthePhilippines,andofwhichatleastseventy-fivepercent(75%)oftheoutstandingcapitalstockbelongstocitizensofthePhilippines;

d)CooperativesdulyorganizedunderthelawsofthePhilippines,andofwhichatleastseventypercent(75%)belongstocitizensofthePhilippines;or

e)Persons/entitiesformingthemselvesintoajointventure,i.e.,agroupoftwo(2)ormorepersons/entitiesthatintendtobejointlyandseverallyresponsibleorliableforaparticularcontract:Provided,however,That,inaccordancewithLetterofInstructionsNo.630(LOI630),Filipinoownershiporinterestofthejointventureconcernedshallbeatleastseventy-fivepercent(75%):Provided,further,ThatjointventuresinwhichFilipinoownershiporinterestislessthanseventy-fivepercent(75%)maybeeligiblewherethestructurestobebuiltrequiretheapplicationoftechniquesand/ortechnologieswhicharenotadequatelypossessedbyaperson/entitymeetingtheseventy-fivepercent(75%)Filipinoownershiprequirement:Provided,finally,Thatinthelattercase,Filipinoownershiporinterestshallnotbelessthantwenty-fivepercent(25%).Forthispurpose,FilipinoownershiporinterestshallbebasedonthecontributionsofeachofthemembersofthejointventureasspecifiedintheirJVA.(a)


23.5.2.2.ForeignbiddersmaybeeligibletoparticipateintheprocurementofinfrastructureprojectswhenprovidedforunderanyTreatyorInternationalorExecutiveAgreementasprovidedinSection4oftheActandthisIRR.(n)


23.5.2.3.InaccordancewithR.A.4566,entitledAnActCreatingthePhilippineLicensingBoardforContractors,PrescribingitsPowers,DutiesandFunctions,ProvidingFundsTherefor,andforOtherPurposes,thepersons/entitiesenumeratedinSection23.5.1.1ofthisIRRmayparticipateinpublicbiddingifhehasbeenissuedalicensebythePCABtoengageoractasacontractor.(a)


23.5.2.4.TheConstructorsPerformanceEvaluationSummary(CPES)ratingand/orcertificateofcompletionandowner sacceptanceofthecontractmustbesatisfactory.


23.5.2.5.Theprospectivebiddermusthaveanexperienceofhavingcompleted,withinaperiodoften(10)yearsfromthedateofsubmissionandreceiptofbids,atleastone(1)contractthatissimilartothecontracttobebid,andwhosevalue,adjustedtocurrentpricesusingtheNSOconsumerpriceindices,mustbeatleastfiftypercent(50%)oftheABCtobebid:Provided,however,ThatcontractorsunderSmallAandSmallBcategorieswithoutsimilarexperienceonthecontracttobebidmaybeallowedtobidifthecostofsuchcontractisnotmorethanfiftypercent(50%)oftheAllowableRangeofContractCost(ARCC)oftheirregistrationbasedontheguidelinesasprescribedbythePCAB.ForForeign-fundedProcurement,theGOPandtheforeigngovernment/foreignorinternationalfinancinginstitutionmayagreeonanothertrackrecordrequirement.Moreover,acontractshallbeconsideredsimilar tothecontracttobebidifithasthesamemajorcategoriesofwork.(a)


23.5.2.6.IftheprospectivebiddersubmitsacomputationofitsNFCC,theNFCCmustbeatleastequaltotheABCtobebid,calculatedasfollows:NFCC=[(Currentassetsminuscurrentliabilities)(K)]minusthevalueofalloutstandingoruncompletedportionsoftheprojectsunderongoingcontracts,includingawardedcontractsyettobestartedcoincidingwiththecontracttobebid.Where:K=10foracontractdurationofoneyearorless,15foracontractdurationofmorethanoneyearuptotwoyears,and20foracontractdurationofmorethantwoyears.IftheprospectivebiddersubmitsaCLC,theCLCmustbeatleastequaltotenpercent(10%)oftheABCtobebid.IftheCLCisissuedbyaforeignUniversalorCommercialBank,itshallbeconfirmedorauthenticatedbyaUniversalorCommercialBank.ForbiddingsconductedbyLGUs,theprospectivebiddermayalsosubmitCLCfromotherbankscertifiedbytheBSPasauthorizedtoissuesuchfinancialinstrument.(a)


24.4.3.1.TheregistrysystemshallcontaintheforegoingClassAdocumentswhichshouldbemaintainedcurrentandupdatedbythebidderconcernedatleastonceayearormorefrequentlywhenneeded.(a)

24.4.3.Tofacilitatedeterminationofeligibility

24.4.3.2.AbidderwhomaintainsacurrentandupdatedfileofhisClassADocumentsshallbeissuedacertificationbytheBACtothateffect,whichcertificationmaybesubmittedtotheprocuringentityconcernedinlieuoftheforegoingClassAdocuments.(a)


24.4.3.3.IftheprocuringentitymaintainsaregistrysystemusingthePhilGEPSoritsownelectronicsystem,aprospectivebidder,whetherornotdulyregisteredineithersystem,shallsubmitawrittenletterofintentand/oritsapplicationforeligibilityandlatestClassAdocuments,totheBAConorbeforethedeadlinespecifiedintheBiddingDocumentswhichshallinnocasebelaterthanthedateforthesubmissionandreceiptofbids.Anyapplicationforeligibilityorupdatessubmittedafterthedeadlineforthesubmissionoftheletterofintentshallnotbeconsideredforthebiddingathand.(a)


i)Atwo-stageprocedureshallbeadoptedwherebyeachconsultantshallberequiredtosubmithistechnicalandfinancialproposalssimultaneouslyinseparatesealedenvelopes.

33.2.1.TheBACshallconductadetailedevaluation

ii)Afterreceiptofbids,thetechnicalproposalsshallfirstbeopenedandevaluated,inaccordancewithSection33.2.2ofthisIRR.TheBACshallranktheconsultantsindescendingorderbasedonthenumericalratingsoftheirtechnicalproposalsandidentifytheHighestRatedBid:Provided,however,thattheHighestRatedBidshallpasstheminimumscoreindicatedintheBiddingDocuments.


iii)TheHeadoftheProcuringEntityshallapproveordisapprovetherecommendationsoftheBACwithintwo(2)calendardaysafterreceiptoftheresultsoftheevaluationfromtheBAC.


iv)AfterapprovalbytheHeadoftheProcuringEntityoftheHighestRatedBid,itsfinancialproposalshallthenbeopened.TheBACshall,withinthree(3)calendardays,notifyandinvitetheconsultantwiththeHighestRatedBidfortheopeningoffinancialproposalforthepurposeofconductingnegotiationswiththesaidconsultant.Intheletterofnotification,theBACshallinformtheconsultantoftheissuesinthetechnicalproposaltheBACmaywishtoclarifyduringnegotiations.


v)NegotiationsshallbeinaccordancewithSection33.2.5ofthisIRR,providedthattheamountindicatedinthefinancialenvelopeshallbemadeasthebasisfornegotiationsandthetotalcontractamountshallnotexceedtheamountindicatedintheenvelopeandtheapprovedbudgetforthecontractasstatedintheBiddingDocuments.(a)


i)Thetechnicalproposaltogetherwiththefinancialproposalshallbeconsideredintheevaluationofconsultants.ThetechnicalproposalsshallbeevaluatedfirstusingthecriteriainSection33.2.2ofthisIRR.Thefinancialproposalsoftheconsultantswhomeettheminimumtechnicalscoreshallthenbeopened.


ii)Thefinancialandtechnicalproposalsshallbegivencorrespondingweightswiththefinancialproposalgivenaminimumweightoffifteenpercent(15%)uptoamaximumoffortypercent(40%).Theweightofthetechnicalcriteriashallbeadjustedaccordinglysuchthattheirtotalweightinpercenttogetherwiththeweightgiventothefinancialproposalshalladdtoonehundredpercent(100%).TheexactweightsshallbeapprovedbytheHeadoftheProcuringEntityupontherecommendationoftheBACandindicatedintheBiddingDocuments.TheBACshallranktheconsultantsindescendingorderbasedonthecombinednumericalratingsoftheirtechnicalandfinancialproposalsandidentifytheHighestRatedBid.


iii)TheHeadoftheProcuringEntityshallapproveordisapprovetherecommendationsoftheBACwithintwo(2)calendardaysafterreceiptoftheresultsoftheevaluationfromtheBAC.


iv)AfterapprovalbytheHeadoftheProcuringEntityoftheHighestRatedBid,theBACshall,withinthree(3)calendardays,notifyandinvitetheconsultantwiththeHighestRatedBidfornegotiationinaccordancewithSection33.2.5ofthisIRR,exceptforitem(e)thereof.(a)


i)ValidJVA,ifapplicable,withinten(10)calendardaysfromreceiptbythebidderofthenoticefromtheBACthatthebidderhastheLowestCalculatedResponsiveBidorHighestRatedResponsiveBid,asthecasemaybe;or

37.1.4.NotwithstandingtheissuanceoftheNoticeofAward

ii)Inthecaseofinfrastructureprojects,validPCABlicenseandregistrationforthetypeandcostofthecontracttobebidforforeignbidders,withinthirty(30)calendardaysfromreceiptbythebidderofthenoticefromtheBACthatthebidderhastheLowestCalculatedResponsiveBid,whentheTreatyorInternationalorExecutiveAgreementexpresslyallowssubmissionofthePCABlicenseandregistrationforthetypeandcostofthecontracttobeasapreconditiontotheNoticeofAward;

37.1.4.NotwithstandingtheissuanceoftheNoticeofAward

53.1.2.1.Inthecaseofinfrastructureprojects,bonafidecontractorslicensedwiththeCIAPwhoseeligibilitydocumentsareonfilewiththeprocuringentityconcernedortheDepartmentofPublicWorksandHighways(DPWH)ContractorsRegistry,asthecasemaybe,andwhohavebeenclassifiedunderthetypeofcontract/projectwherethesubjectcontractfallsareeligibletobeinvitedfornegotiation.Othercontractorsnotpreviouslydeemedeligiblemayalsoapplyforeligibility.

53.1.2.TheBACshallinviteandengageinnegotiations

53.1.2.2.AllProcuringEntitiesshallmaintainaregistryofsuppliers,contractors,andconsultantsasbasisfordrawinguptheshortlistand/orselectingthesuppliers,contractors,andconsultantsfornegotiations.

53.1.2.TheBACshallinviteandengageinnegotiations

62.2.3.1.ThefollowingshallbeheldresponsibleforStructuralDefects,i.e.,majorfaults/flaws/deficienciesinoneormorekeystructuralelementsoftheprojectwhichmayleadtostructuralfailureofthecompletedelementsorstructure,orStructuralFailures,i.e.,whereoneormorekeystructuralelementsinaninfrastructurefacilityfailsorcollapses,therebyrenderingthefacilityorpartthereofincapableofwithstandingthedesignloads,and/orendangeringthesafetyoftheusersorthegeneralpublic:a)ContractorWhereStructuralDefects/Failuresariseduetofaultsattributabletoimproperconstruction,useofinferiorquality/substandardmaterials,andanyviolationofthecontractplansandspecifications,thecontractorshallbeheldliable;

b)ConsultantsWhereStructuralDefects/Failuresariseduetofaultyand/orinadequatedesignandspecificationsaswellasconstructionsupervision,thentheconsultantwhopreparedthedesignorundertookconstructionsupervisionfortheprojectshallbeheldliable;

c)ProcuringEntitysRepresentatives/ProjectManager/ConstructionManagersandSupervisorsTheprojectowner srepresentative(s),projectmanager,constructionmanager,andsupervisor(s)shallbeheldliableincaseswheretheStructuralDefects/Failuresareduetohis/theirwillfulinterventioninalteringthedesignsandotherspecifications;negligenceoromissioninnotapprovingoractingonproposedchangestonoteddefectsordeficienciesinthedesignand/orspecifications;andtheuseofsubstandardconstructionmaterialsintheproject;

d)ThirdParties-ThirdPartiesshallbeheldliableincaseswhereStructuralDefects/Failuresarecausedbyworkundertakenbythemsuchasleakingpipes,diggingsorexcavations,undergroundcablesandelectricalwires,undergroundtunnel,miningshaftandthelike,inwhichcasetheapplicablewarrantytosuchstructureshouldbeleviedtothirdpartiesfortheirconstructionorrestorationworks.

e)Users-IncaseswhereStructuralDefects/Failuresareduetoabuse/misusebytheenduseroftheconstructedfacilityand/ornoncompliancebyauserwiththetechnicaldesignlimitsand/orintendedpurposeofthesame,thentheuserconcernedshallbeheldliable.(a)

62.2.3.Fromfinalacceptanceoftheproject

62.2.3.2.ThewarrantyagainstStructuralDefectsandFailuresshallcoverthefollowingperiodsfromfinalacceptance,exceptthoseoccasionedbyforcemajeure:a)PermanentStructures:Fifteen(15)yearsBuildingsoftypes4and5asclassifiedundertheNationalBuildingCodeofthePhilippinesandotherstructuresmadeofsteel,iron,orconcretewhichcomplywithrelevantstructuralcodes(e.g.,DPWHStandardSpecifications),suchas,butnotlimitedto,steel/concretebridges,flyovers,aircraftmovementareas,ports,dams,tunnels,filtrationandtreatmentplants,seweragesystems,powerplants,transmissionandcommunicationtowers,railwaysystem,andothersimilarpermanentstructures;

b)Semi-PermanentStructures:Five(5)yearsBuildingsoftypes1,2,and3asclassifiedundertheNationalBuildingCodeofthePhilippines,concrete/asphaltroads,concreterivercontrol,drainage,irrigationlinedcanals,riverlanding,deepwells,rockcauseway,pedestrianoverpass,andothersimilarsemi計ermanentstructures;and

c)OtherStructures:Two(2)yearsBaileyandwoodenbridges,shallowwells,springdevelopments,andothersimilarstructures.(a)


62.2.3.3.ToguaranteethatthecontractorshallperformhisresponsibilitiesasprescribedinSection62.2.3.1(a)ofthisIRR,itshallberequiredtopostawarrantysecurityinaccordancewiththefollowingschedule:FormofWarrantySecurityAmountofWarrantySecurity(EqualtoPercentageoftheTotalContractPrice)a)CashorLetterofCreditissuedFivepercent(5%)byaUniversalorCommercialBank:Provided,however,thattheLCshallbeconfirmedorauthenticatedbyaUniversalorCommercialBank,ifissuedbyaforeignbank.

b)BankguaranteeconfirmedbyaUniversalorCommercialBank.Tenpercent(10%)

c)SuretybondcallableupondemandissuedbyGSISorasuretyorinsurancecompanydulycertifiedbytheInsuranceCommissionasauthorizedtoissuesuchsecurity.Thirtypercent(30%)ForbiddingsconductedbyLGUs,thecontractormayalsosubmitwarrantysecuritiesintheformofbankguaranteeorletterofcreditfromotherbankscertifiedbytheBSPasauthorizedtoissuesuchfinancialinstrument.(a)


62.2.3.4.ThewarrantysecurityshallbedenominatedinPhilippinePesos,remaineffectiveforone(1)yearfromthedateofissuanceoftheCertificateofFinalAcceptancebytheprocuringentity,andreturnedonlyafterthelapseofthesaidone(1)yearperiod.(a)


a)DesignStandardsDesignstandardsshallbeinaccordancewithappropriatestandardsandaccepteddetailedengineeringpracticeadoptedbytheagencyconcerned.Designstandardsforstructuresshalltakeintoaccount,amongotherthings,theseismicityoftheareatodeterminetheoptimumsafetyofstructuresandtominimizepossibleearthquakedamage.

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b)FieldSurveysAndInvestigationsNecessaryfieldsurveysandinvestigationswhichmayincludeaerial,hydrographic,topographic,hydrologic,sub-surface,monumentingandothersurveysshallbecarriedoutinaccordancewiththedesignguidelines,criteriaandstandardsadoptedbytheagencyconcerned.Allsurveyandinvestigationworksshallbepreparedinamannersatisfactorytocarryoutaccuratedesignandproductionofplansthatwillpermitquantityestimatestobemadewithinplusorminustenpercent(10%)ofthefinalquantitiesofthecompletedstructure.

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c)ContractPlansThefollowingplansshallbepreparedforeachconstructioncontractinaccordancewithguidelinesandstandardsadoptedbytheprocuringentityconcerned,incorporatingatleastthefollowing:i)Sitedevelopmentplanii)Plansandprofilesheetiii)Typicalsectionsanddetailsiv)Drainagedetailswhereapplicablev)Structuralplansatappropriatescalesindicatingalldetailsnecessaryinorderthatthecompletestructurecanbesetoutandconstructedvi)Otherdetailswhichmayberequiredbytheheadoftheagency

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d)QuantitiesAllconstructionquantitiesshallbecomputedtoareasonableaccuracyofnotmorethanplusorminustenpercent(10%)ofthefinalquantitiesoftheas-builtstructure.

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e)SpecialProvisionsSpecificationsshallbepreparedforspecifictermsofworkormethodsofconstruction,measurementandpaymentundereachcontract,whicharenotcoveredbyStandardConstructionandMaterialSpecificationsadoptedbytheprocuringentityconcerned.

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f)UnitPricesTheseshallbepreparedforeachcontractusingcostsbasedonreasonableapprovedcurrentpricesasprojectedovertheproposedconstructionperiod,dividedintolocalandforeignexchangecosts,asthecasemaybe.

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g)ApprovedBudgetfortheContracttheABCtobebidshallbepreparedbyofficial(s)dulydesignatedbytheHeadoftheProcuringEntityconcernedorbyhisdulyauthorizedofficial.ItshallbeapprovedbytheHeadoftheProcuringEntityorhisdulydesignatedofficial.Sincethecontractsarefixedpricecontracts,theABCtobebidshallprovidefortheprojectedmovementsofconstructioncostsovertheconstructionperiodconsideringtheprojectedinflationandforeignexchangeratesasissuedbytheDevelopmentBudgetCoordinationCommittee(DBCC).Itshallalsoshowthelocalandforeigncurrencyrequirements,asthecasemaybe.TheABCtobebidshallspecifyforeachmajorworkitem,suchasearthwork,roadwork,andmassiveconcreting,thecomponentsforequipmentrentals,fuel,labor,materialsandoverhead,includingthecostoftheapprovedconstructionsafetyandhealthprogramandwarrantypremium.

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h)BiddingDocumentsTheseshallbepreparedasprovidedforintheIRR.

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i)ProgramofWorkBeforeprosecutinganyproject,thenecessaryprogramofworkshallbepreparedandsubmittedforapproval.Innocaseshallconstructionfundsberemittedtofieldofficesorconstructionworkonaprojectbestartedbeforetheprogramofworkisapproved,inaccordancewithexistinglaws.Noprogramofworkforanyprojectshallbeapprovedwithoutdetailedengineering.Theprogramofworkshallinclude,amongotherthings,estimatesofthework,items,quantitiesandcostsandaPERT/CPMnetworkoftheprojectactivities.Theprogramofworkshallcoveratleastausableportionoftheprojectandnoconstructionshallbestartedforportionsoftheprojectthatarelessthanusable,exceptprojectsrequiringstageconstruction,inwhichcasecontinuityofconstructionuptothecompletionofausableportionmustbeassured.

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j)ContractTimeorDurationInthepreparationoftheBiddingDocuments,theagencyshallmakeanestimateoftheactualnumberofworkingdaysrequiredtocompletetheprojectthroughPERT/CPManalysisoftheprojectactivitiesandcorrectedforholidaysandweekends.Likewise,theagencyshallmakeanestimateofthenumberofrainy/unworkabledaysconsideredunfavorablefortheprosecutionoftheworksatthesite,basedontherecordsofthePhilippineAtmospheric,GeophysicalandAstronomicalServicesAdministration(PAGASA),andincorporatethesameinthecorrectedactualnumberofworkingdaysdeterminedabove,whichshallbemadethebasisofthetotalcontracttime.Theestimatednumberofrainy/unworkabledaysconsideredunfavorablefortheprosecutionoftheworksatthesiteshallbemadeknownbeforethedateofbiddingthroughtheInstructionstoBiddersforthepurposeofguidingthecontractorinpreparinghisbidandasreferencetoboththeGOPandwinningcontractorstakingactionontherequestsfortimeextensions.Withouttheestimatednumberofrainy/unworkabledaysestablishedbeforethebiddingdateandmadeknowntoallparticipatingbidders,thecontracttimeispresumedtohaveexcludedtheunfavorableconditions.

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k)WarrantyPeriodLikewise,theBiddingDocumentsshallspecifythetypeofprojectandthecorrespondingwarrantyperiodrequiredbytheprocuringentity.

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l)ValueEngineeringFormajorprojectsasspecifiedbytheagency,valueengineeringshallbeconductedaccordingtoacceptedstandardsandpractices.Valueengineeringshallanalyzealternativeschemesofachievingtheprojectsobjectivesinordertodeleteorreducenon-essentialfeaturesandlessenthelifecyclecostsoftheprojectswithoutsacrificingthequalityandintegrityofthestructure,whilemaintainingitsessentialfunction,performance,andsafety.

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m)SiteorRight-of-WayAcquisitionPlansandResettlementActionPlansTheseshallbepreparedbasedonparcellarysurveysandsocio-economicsurveysofhouseholdsaffectedbytheproject.

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6.1.AdvisoryandReviewServices.Theseservicesincludeadviceonparticularprojectsorproblems.Thesewillincludeadviceonandreviewof,amongothers,planning,designandotherprofessionalservices,aswellasmanagement,production,inspection,testingandqualitycontrol.Theyalsoincludesuchservicesasappearancesbeforecommissions,boardsorotherjudicialbodiestogiveevidenceorotherwisesubmitprofessionalopinions.

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6.2.Pre-InvestmentorFeasibilityStudies.Thesearethestudieswhichnormallyprecededecisionstogo(ornottogo)forwardwithspecificprojects.Thesestudiesmayhaveastheirobjectives:

a)Toestablishinvestmentprioritiesandsectorpolicies-Studiesforthisobjectiveinclude,amongothers,basicresourceinventories,suchas,riverbasinsurveys,transportsectorsurveys,andstudiesofalternativedevelopmentpatternsandofsectorsonaregionalornationwidescale.

b)Todeterminethebasicfeaturesandthefeasibilityofindividualprojects-Studiesforthisobjectiveinclude,amongothers,thefunctionaldesign,projectsiteselection,architecturalandspaceprogrammingandphysicallayoutofspecificprojects,preliminarydesignandcostestimates,andtheeconomic,financialandenvironmentalimpactanalysesrequiredforprojectevaluation.

c)Todefineandproposechangesingovernmentalpolicies,operationsandinstitutionsnecessaryforthesuccessfulimplementationorfunctioningofinvestmentprojects-Studiesforthisobjectiveinclude,amongothers,analysisofprojectrelatedorganizations,administrativeproblems,planningmachinery,regulatoryandmarketingpolicies,accounting,andmanagementsystems,manpowerresourcesandtrainingrequirements.

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6.3.Design.Thistypeofservicesnormallyconsistsofthree(3)phases:

a)Pre-DesignPhaseestablishesthegeneralsizeandscopeoftheprojectanditslocationonthesite.Theservicesincludebutarenotlimitedtoreconnaissance,topographicalandotherengineeringandlandsurveys,soilsinvestigations,preparationofpreliminaryarchitectural/engineeringdesigns,layouts,outlinespecifications,preliminarycostestimatesandspecificrecommendationspriortoactualdesign;

b)BasicDesignPhaseincludesthepreparationofdetailedplans,designs,workingdrawings,specifications,detailedcostestimatesandtenderdocumentsrequiredforinvitationsofbidsforconstructionworksandequipment;and

c)SupportServicesDuringConstructionincludesassistanceandadviceinsecuringbids,tabulationandanalysisofbidresults,andmakingrecommendationsontheawardofconstructioncontracts,andinpreparingformalcontractdocuments;preparationofsupplementarydrawingsrequiredtosuitactualfieldconditions;checkingdetailedconstructionandas-builtdrawings,shopanderectiondrawingssubmittedbycontractors;makingperiodicvisitstocheckonthegeneralprogressofworkandqualityofmaterialsandworkmanship;observingperformancetestsandstart-upandmakingreportthereon;andmakingafinalinspectionandreportingofcompletedproject.

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6.4.ConstructionSupervision.Theseincludethefollowing:

a)Inspectionandexpeditingofthework;b)Verificationandcheckingofquantitiesandqualitiesofworkaccomplishedbythecontractorasagainsttheapprovedplans,specifications,andprogramsofwork;c)Issuanceofinstructionforcorrectionsofdefectsonthework;d)Verificationandrecommendationforapprovalofstatementsofworkaccomplishedandcertificateofprojectcompletedbythecontractor;e)Reviewandrecommendationforapprovalofprogressandfinalbillingsofthecontractor;andb)Provisionofrecordoras-builtdrawingsofthecompletedprojects.Theabovedonotmeandirection,superintendence,ormanagementofconstruction.

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6.5.ManagementandRelatedServices.Thesemayincludethefollowing:

a)Sectorpolicyandregionaldevelopmentstudies;b)Planning,feasibility,market,economic,financial,technical,operationsandsociologicalstudies;c)Projectmanagement,includingprocurementadvisoryservices,impactmonitoring,andpost-evaluationservices;d)Productionmanagement,inventorycontrol,andproductivityimprovement;e)Marketingmanagementandsystems;f)Informationandcommunicationstechnologyservices,includingbutnotlimitedto,informationsystemsdesignanddevelopment,andnetworkdesignandinstallation;g)Institutionalstrengthening,organizationdevelopment,manpowerrequirements,trainingandtechnologytransfer;h)Generalmanagementconsultancy;andi)Otherrelatedservices.

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6.6.OtherTechnicalServicesorSpecialStudies.TheTechnicalServicesmayincludethefollowing:a)Institutionbuilding,includingorganizationandmanagementstudies,andbusinessprocessre-engineeringanddevelopment;b)Designandexecutionoftrainingprogramsatdifferentlevels;c)Provisionofstafftocarryoutcertainfunctionsandtotraintheirreplacements;andd)Tasksrelatingtoeconomicandfinancialstudiessuchasthoseoftariffstructures.TheSpecialStudiesmayincludethefollowingandotherstudiesnotcoveredunderanyoftheservicesandstudiesdescribedabove:

a)Soilsinvestigation;

b)Studies,testsandprocessdeterminationperformedtoestablishdesigncriteriaforwaterfacilities;

c)Detailedmill,shop,and/orlaboratoryinspectionofmaterialsandequipment;

d)Landsurveys,establishmentofboundariesandmonuments,andrelatedofficecomputationsanddrafting;e)Parcellarysurveys;f)Engineeringsurveys(fordesignandconstruction)andphotogrammetry;

g)Assistanceinlitigationarisingfromthedevelopmentorconstructionofprojectsandinhearingsbeforevariousapprovingandregulatoryagencies;

h)Investigationinvolvingdetailedconsiderationoftheoperation,maintenance,andoverheadexpenses;andthepreparationofrateschedules;earningandexpensestatements,feasibilitystudies,appraisals,evaluations,andmaterialauditsorinventoriesrequiredforcertificationofforceaccountconstructionperformedbytheagencies;

i)Preparationofenvironmentalstatementsandassistancetotheagenciesinpublichearings;j)Preparationofoperatinginstructionsandmanualsforfacilitiesandtrainingofpersonnelandassistanceininitialoperationoffacilities;

k)Designstomeetuniqueand/orabovenormalrequirementsbroughtaboutbysevereearthquakes,tornadoes,orblasts,orsatisfyuniqueorabnormaltolerances,safetyrequirements,etc.;

l)Siteandphysicalplanning;

m)Environmentalandotheraspectsofplanning;

n)Housing;

o)Interiordesign;

p)Studiesonpreservationandrestorationofhistorical,cultural,andartworks;

q)Landscaping;

r)Constructionmanagement;and

s)Defensesystemsdesign,includingself-reliancedefenseprogram.Technologyandknowledgetransfershouldbeconsideredanimportantobjectiveintheprovisionofconsultingservices.

1.1.Subjecttotheconditionssetforthbelow,amendmentstoordermaybeissuedatanytimebytheprocuringentityconcerned.Ifanysuchorderincreasesordecreasesthecostof,orthetimerequiredforexecutinganypartoftheworkundertheoriginalcontract,anequitableadjustmentincontractpriceand/ordeliveryscheduleshallbemutuallyagreeduponbetweenthepartiesconcerned,andthecontractmodifiedinwriting.

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1.2.Anamendmenttoordermaybeissuedonlyinemergencycasesorduringfortuitouseventsrequiringnecessaryadjustmentswithinthegeneralscopeofthecontractinanyoneormoreofthefollowingisrequiredinordertofullymeettherequirementsoftheproject:a)drawings,designorspecifications,ifthegoodstobefurnishedaretobespecificallymanufacturedfortheGovernmentinaccordancetherewith;b)methodofshipmentorpacking;orc)placeofdelivery.

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1.3.Anamendmenttoordermayalsobeissuedbytheconcernedprocuringentitywherethereareadditionalitemsneededandnecessaryfortheprotectionofthegoods,whichwerenotincludedintheoriginalcontract.Paymentsfortheseadditionalitemsshallbebasedontheunitpricesintheoriginalcontractforitemsofgoodssimilartothoseintheoriginalcontract.Ifthecontractdoesnotcontainanyrateapplicabletotheadditionalitems,thensuitablepricesshallmutuallybeagreeduponbetweentheparties.Requestforpaymentbythesupplierforanyadditionalitemsshallbeaccompaniedbyastatementwiththeapprovedsupportingforms,givingadetailedaccountingandrecordofamountforwhichitclaimspayment.Thecontracttimeshalllikewisebeextendediftheacquisitionofsuchadditionalitemssowarrants.

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1.4.UndernocircumstancesshallasupplierproceedtocommenceworkunderanyamendmenttoorderunlessthesamehasbeenapprovedbytheHeadoftheProcuringEntityconcernedorhisdulyauthorizedrepresentative.Asanexceptiontotherule,theRegionalDirector/Headconcernedmayauthorizetheimmediatestartofworkunderanyamendmenttoorderintheeventofemergenciestoavoiddetrimenttopublicservice,ordamagetolifeand/orpropertyorwhentimeisoftheessence:Provided,however,ThatthesameisvalidonlyonitemsuptothepointwherethecumulativeincreaseinthecontractcostwhichhasnotyetbeendulyfullyapprovedbytheHeadoftheProcuringEntityconcernedorhisdulyauthorizedrepresentativedoesnotexceedfivepercent(5%)oftheoriginalcontractcost:Provided,further,ThatthecorrespondingamendmenttoordershallimmediatelybepreparedandsubmittedforapprovaltotheHeadoftheProcuringEntityconcernedorhisdulyauthorizedrepresentative.Foranamendmenttoorderinvolvingacumulativeamountexceedingfivepercent(5%)oftheoriginalcontactprice,noworkthereonshallbecommencedunlessthesamehasbeenapprovedbytheHeadofProcuringEntityconcernedorhisdulyauthorizedrepresentative:Provided,That,thesaidcumulativeamountdoesnotexceedtenpercent(10%)oftheoriginalcontractprice.

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4.1.InaccordancewithPresidentialDecree1445,advancepaymentshallbemadeonlyafterpriorapprovalofthePresident,andshallnotexceedfifteenpercent(15%)ofthecontractamount,unlessotherwisedirectedbythePresident;Provided,however,thatforcasesmentionedunder4.3,4.4,and4.5oftheseguidelines,nopriorapprovalbythePresidentshallbenecessary.

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4.2.Allprogresspaymentsshallfirstbechargedagainsttheadvancepaymentuntilthelatterhasbeenfullyexhausted,unlessotherwiseapprovedbythePresident.

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4.3.Asingleadvancepaymentnottoexceedfiftypercent(50%)ofthecontractamountshallbeallowedforcontractsenteredintobyaprocuringentityforthefollowingserviceswhererequirementofdownpaymentisastandardindustrypractice:a)Hotelandrestaurantservices;b)Useofconference/seminarandexhibitareas;andc)Leaseofofficespace.

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4.4.Advancepaymentnottoexceedfifteenpercent(15%)ofthecontractamount,unlessotherwisedirectedbythePresident,shallalsobeallowedforprocurementofgoodsrequiredtoaddresscontingenciesarisingfromnaturalorman-madecalamitiesinareaswhereaStateofCalamityhasbeendeclaredbyappropriateauthorities.

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4.5.Forgoodssuppliedfromabroadtenpercent(10%)oftheContractPriceshallbepaidwithin60daysfromsigningofthecontractanduponsubmissionofaclaimandabankguaranteeissuedbyalicensedbankfortheequivalentamountvaliduntilthegoodsaredeliveredandintheformprovidedintheBiddingDocuments.

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1.1.VariationOrdersmaybeissuedbytheprocuringentitytocoveranyincrease/decreaseinquantities,includingtheintroductionofnewworkitemsthatarenotincludedintheoriginalcontractorreclassificationofworkitemsthatareeitherduetochangeofplans,designoralignmenttosuitactualfieldconditionsresultingindisparitybetweenthepreconstructionplansusedforpurposesofbiddingandthe"asstakedplans"orconstructiondrawingspreparedafterajointsurveybythecontractorandtheGovernmentafterawardofthecontract,providedthatthecumulativeamountofthepositiveoradditiveVariationOrderdoesnotexceedtenpercent(10%)oftheoriginalcontractprice.Theaddition/deletionofworksunderVariationOrdersshouldbewithinthegeneralscopeoftheprojectasbidandawarded.ThescopeofworksshallnotbereducedsoastoaccommodateapositiveVariationOrder.AVariationOrdermayeitherbeintheformofeitherachangeorderorextraworkorder.

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1.2.AChangeOrdermaybeissuedbytheimplementingofficialtocoveranyincrease/decreaseinquantitiesoforiginalworkitemsinthecontract.

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1.3.AnExtraWorkOrdermaybeissuedbytheimplementingofficialtocovertheintroductionofnewworknecessaryforthecompletion,improvementorprotectionoftheprojectwhichwasnotincludedasitemsofworkintheoriginalcontract,suchas,wheretherearesubsurfaceorlatentphysicalconditionsatthesitedifferingmateriallyfromthoseindicatedinthecontract,orwheretherearedulyunknownphysicalconditionsatthesiteofanunusualnaturedifferingmateriallyfromthoseordinarilyencounteredandgenerallyrecognizedasinherentintheworkorcharacterprovidedforinthecontract.

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1.4.AnycumulativepositiveVariationOrderbeyondtenpercent(10%)oftheoriginalcontractpriceshallbesubjectofanothercontracttobebidoutiftheworksareseparablefromtheoriginalcontract.Inexceptionalcaseswhereitisurgentlynecessarytocompletetheoriginalscopeofwork,theHeadoftheProcuringEntitymayauthorizeapositivevariationorderthatwillmakethecumulativevalueofthepositiveVariationOrdersgobeyondtenpercent(10%)butnotmorethantwentypercent(20%)oftheoriginalcontractprice,subjecttotheguidelinestobedeterminedbytheGPPB:Provided,however,Thatappropriatesanctionsshallbeimposedonthedesigner,consultantorofficialresponsiblefortheoriginaldetailedengineeringdesignwhichfailedtoconsidertheVariationOrderbeyondtenpercent(10%).

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1.5.InclaimingforanyVariationOrder,thecontractorshall,withinseven(7)calendardaysaftersuchworkhasbeencommencedorafterthecircumstancesleadingtosuchcondition(s)leadingtotheextracost,andwithintwenty-eight(28)calendardaysdeliverawrittencommunicationgivingfullanddetailedparticularsofanyextracostinorderthatitmaybeinvestigatedatthattime.Failuretoprovideeitherofsuchnoticesinthetimestipulatedshallconstituteawaiverbythecontractorforanyclaim.ThepreparationandsubmissionofVariationOrdersareasfollows:a)Iftheprocuringentitysrepresentativeb)TheHeadoftheProcuringEntityorhisdulyauthorizedrepresentative,uponreceiptoftheproposedChangeOrderc)TheHeadoftheProcuringEntityorhisdulyauthorizedrepresentative,afterbeingsatisfiedthatsuchChangeOrderd)If,afterreviewoftheplans,quantitiesandestimatedunitcoste)ThetimeframefortheprocessingofVariationOrders

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a)TheHeadoftheProcuringEntityorhisdulyauthorizedrepresentativemay,subjecttotheavailabilityoffunds,authorizetheimmediatestartofworkunderanyChangeorExtraWorkOrderunderanyorallofthefollowingconditions:

i)Intheeventofanemergencywheretheprosecutionoftheworkisurgenttoavoiddetrimenttopublicservice,ordamagetolifeand/orproperty;and/orii)Whentimeisoftheessence;Provided,however,Thatsuchapprovalisvalidonworkdoneuptothepointwherethecumulativeincreaseinvalueofworkontheprojectwhichhasnotyetbeendulyfullyapproveddoesnotexceedfivepercent(5%)oftheadjustedoriginalcontractpricewhicheverisless;Provided,further,Thatimmediatelyafterthestartofwork,thecorrespondingChangeOrderorExtraWorkOrdershallbepreparedandsubmittedforapprovalinaccordancewiththeaboveruleshereinset.PaymentsforworkssatisfactorilyaccomplishedonanyChangeOrderorExtraWorkOrdermaybemadeonlyafterapprovalofthesamebytheHeadoftheProcuringEntityorhisdulyauthorizedrepresentative.

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b)ForaChangeOrderorExtraWorkOrderinvolvingacumulativeamountexceedingfivepercent(5%)oftheoriginalcontractprice,noworkthereonmaybecommencedunlesssaidChangeOrderorExtraWorkOrderhasbeenapprovedbytheHeadoftheProcuringEntityorhisdulyauthorizedrepresentative.

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8.1.Wherethecontractorrefusesorfailstosatisfactorilycompletetheworkwithinthespecifiedcontracttime,plusanytimeextensiondulygrantedandisherebyindefaultunderthecontract,thecontractorshallpaytheprocuringentityforliquidateddamages,andnotbywayofpenalty,anamount,asprovidedintheconditionsofcontract,equaltoatleastonetenth(1/10)ofone(1)percentofthecostoftheunperformedportionoftheworksforeverydayofdelay.

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8.2.Aprojectoraportionthereofmaybedeemedusablewhenitstartstoprovidethedesiredbenefitsascertifiedbythetargetedend-usersandtheconcernedprocuringentity.

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8.3.Tobeentitledtosuchliquidateddamages,theprocuringentitydoesnothavetoprovethatithasincurredactualdamages.Suchamountshallbedeductedfromanymoneydueorwhichmaybecomeduethecontractorunderthecontractand/orcollectsuchliquidateddamagesfromtheretentionmoneyorothersecuritiespostedbythecontractorwhicheverisconvenienttotheprocuringentity.

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8.4.Incasethatthedelayinthecompletionoftheworkexceedsatimedurationequivalenttotenpercent(10%)ofthespecifiedcontracttimeplusanytimeextensiondulygrantedtothecontractor,theprocuringentityconcernedmayrescindthecontract,forfeitthecontractor'sperformancesecurityandtakeovertheprosecutionoftheprojectorawardthesametoaqualifiedcontractorthroughnegotiatedcontract.

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8.5.Innocasehowever,shallthetotalsumofliquidateddamagesexceedtenpercent(10%)ofthetotalcontractprice,inwhicheventthecontractshallautomaticallybetakenoverbytheprocuringentityconcernedorawardthesametoaqualifiedcontractorthroughnegotiationandtheerringcontractor'sperformancesecurityshallbeforfeited.Theamountoftheforfeitedperformancesecurityshallbeasidefromtheamountoftheliquidateddamagesthatthecontractorshallpaythegovernmentundertheprovisionsofthisclauseandimposeotherappropriatesanctions.

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8.6.Forterminatedcontractswherenegotiationshallbeundertaken,theproceduresprescribedintheIRRshallbeadopted.

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9.1.Theprocuringentityshallhavetheauthoritytosuspendtheworkwhollyorpartlybywrittenorderforsuchperiodasmaybedeemednecessary,duetoforcemajeureoranyfortuitouseventsorforfailureonthepartofthecontractortocorrectbadconditionswhichareunsafeforworkersorforthegeneralpublic,tocarryoutvalidordersgivenbytheprocuringentityortoperformanyprovisionsofthecontract,orduetoadjustmentofplanstosuitfieldconditionsasfoundnecessaryduringconstruction.Thecontractorshallimmediatelycomplywithsuchordertosuspendtheworkwhollyorpartly.

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9.2.Thecontractororitsdulyauthorizedrepresentativeshallhavetherighttosuspendworkoperationonanyorallprojects/activitiesalongthecriticalpathofactivitiesafterfifteen(15)calendardaysfromdateofreceiptofwrittennoticefromthecontractortothedistrictengineer/regionaldirector/consultantorequivalentofficial,asthecasemaybe,duetothefollowing:1.Thereexistright-of-wayproblemswhichprohibitthecontractorfromperformingworkinaccordancewiththeapprovedconstructionschedule.

2.Requisiteconstructionplanswhichmustbeowner-furnishedarenotissuedtothecontractorprecludinganyworkcalledforbysuchplans.

3.Peaceandorderconditionsmakeitextremelydangerous,ifnotpossible,towork.However,thisconditionmustbecertifiedinwritingbythePhilippineNationalPolice(PNP)stationwhichhasresponsibilityovertheaffectedareaandconfirmedbytheDepartmentofInteriorandLocalGovernment(DILG)RegionalDirector.

4.Thereisfailureonthepartoftheprocuringentitytodelivergovernment-furnishedmaterialsandequipmentasstipulatedinthecontract.

5.Delayinthepaymentofcontractor'sclaimforprogressbillingbeyondforty-five(45)calendardaysfromthetimethecontractor'sclaimhasbeencertifiedtobytheprocuringentitysauthorizedrepresentativethatthedocumentsarecompleteunlesstherearejustifiablereasonsthereofwhichshallbecommunicatedinwritingtothecontractor.

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9.3.Incaseoftotalsuspension,orsuspensionofactivitiesalongthecriticalpath,whichisnotduetoanyfaultofthecontractor,theelapsedtimebetweentheeffectiveorderofsuspendingoperationandtheordertoresumeworkshallbeallowedthecontractorbyadjustingthecontracttimeaccordingly.

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10.1.Shouldtheamountofadditionalworkofanykindorotherspecialcircumstancesofanykindwhatsoeveroccursuchastofairlyentitlethecontractortoanextensionofcontracttime,theprocuringentityshalldeterminetheamountofsuchextension;providedthattheprocuringentityisnotboundtotakeintoaccountanyclaimforanextensionoftimeunlessthecontractorhas,priortotheexpirationofthecontracttimeandwithinthirty(30)calendardaysaftersuchworkhasbeencommencedorafterthecircumstancesleadingtosuchclaimhavearisen,deliveredtotheprocuringentitynoticesinorderthatitcouldhaveinvestigatedthematthattime.Failuretoprovidesuchnoticeshallconstituteawaiverbythecontractorofanyclaim.Uponreceiptoffullanddetailedparticulars,theprocuringentityshallexaminethefactsandextentofthedelayandshallextendthecontracttimecompletingthecontractworkwhen,intheprocuringentity'sopinion,thefindingsoffactsjustifyanextension.

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10.2.Noextensionofcontracttimeshallbegrantedthecontractordueto(a)ordinaryunfavorableweatherconditionsand(b)inexcusablefailureornegligenceofcontractortoprovidetherequiredequipment,suppliesormaterials.

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10.3.ExtensionofcontracttimemaybegrantedonlywhentheaffectedactivitiesfallwithinthecriticalpathofthePERT/CPMnetwork.

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10.4.Noextensionofcontracttimeshallbegrantedwhenthereasongiventosupporttherequestforextensionwasalreadyconsideredinthedeterminationoftheoriginalcontracttimeduringtheconductofdetailedengineeringandinthepreparationofthecontractdocumentsasagreeduponbythepartiesbeforecontractperfection.

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10.5.Extensionofcontracttimeshallbegrantedforrainy/unworkabledaysconsideredunfavorablefortheprosecutionoftheworksatthesite,basedontheactualconditionsobtainedatthesite,inexcessofthenumberofrainy/unworkabledayspre-determinedbythegovernmentinrelationtotheoriginalcontracttimeduringtheconductofdetailedengineeringandinthepreparationofthecontractdocumentsasagreeduponbythepartiesbeforecontractperfection,and/orforequivalentperiodofdelayduetomajorcalamitiessuchasexceptionallydestructivetyphoons,floodsandearthquakes,andepidemics,andforcausessuchasnon-deliveryontimeofmaterials,workingdrawings,orwritteninformationtobefurnishedbytheprocuringentity,non-acquisitionofpermittoenterprivatepropertieswithintheright-of-wayresultingincompleteparalyzationofconstructionactivities,andothermeritoriouscausesasdeterminedbytheGovernment'sauthorizedEngineerandapprovedbytheprocuringentity.Shortageofconstructionmaterials,generallaborstrikes,andpeaceandorderproblemsthatdisruptconstructionoperationsthroughnofaultofthecontractormaybeconsideredasadditionalgroundsforextensionofcontracttimeprovidedtheyarepubliclyfeltandcertifiedbyappropriategovernmentagenciessuchasDTI,DOLE,DILG,andDND,amongothers.Thewrittenconsentofbondsmenmustbeattachedtoanyrequestofthecontractorforextensionofcontracttimeandsubmittedtotheprocuringentityforconsiderationandthevalidityoftheperformancesecurityshallbecorrespondinglyextended.

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12.1.SubjectandScopeAllProcuringEntitiesimplementinggovernmentinfrastructureprojectsaremandatedtoevaluatetheperformanceoftheircontractorsusingtheNEDA-ApprovedConstructorsPerformanceEvaluationSystem(CPES)Guidelinesforthetypeofprojectbeingimplemented.Theseguidelinescoverallinfrastructureprojectsawardedbythegovernmentregardlessofcontractamountandfundingsource.CPESevaluationshallbedoneduringconstructionanduponcompletionofeachgovernmentproject.ToensurecontinuousimplementationofCPES,allProcuringEntitiesconcernedarerequiredtoincludeintheirProjectsEngineeringandAdministrativeOverheadCostthebudgetfortheimplementationofCPESpursuanttoNEDABoardResolutionNo.18(s.2002).

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12.2.EvaluationGuidelinesForprojecttypeswhichdonothavespecificCPESGuidelines,theProcuringEntitiesconcernedmayformulateandadopttheirownimplementingGuidelinesspecifictotheirneedsprovidedtheNEDA-INFRACOMposesnoobjectionstotheiradoption,andprovidedfurtherthatsaidGuidelinesaremadeknowntoallprospectivebidders.

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12.3.ImplementationMechanismforCPESAllProcuringEntitiesimplementinginfrastructureprojectsarerequiredtoestablishCPESImplementingUnits(IUs)intheirrespectiveoffices/agencies/corporations.TheCPESImplementingUnitsshallberesponsiblefortheimplementationoftheCPESImplementingguidelines,includingbutnotlimitedto,thesupervisionofConstructorsPerformanceEvaluators(CPEs)tobeaccreditedbytheConstructionIndustryAuthorityofthePhilippines(CIAP).TheprocuringentitysCPESIUshallberesponsibleforthefollowing:a)pre-screeningofapplicationsofCPEs,b)fundingforCPEsaccreditationtrainingandseminars;andc)yearlyevaluationofCPEs.

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12.4.SubmissionandDisseminationofEvaluationResultsAllProcuringEntitiesimplementingCPESshallsubmittheresultsoftheirperformanceevaluationtotheCIAPonamonthlybasisorasoftenasnecessary.TheprocuringentitysCPES-IUshalllikewisedevelopandmaintainadatabankanddisseminatetheCPESreportstotheconcernedunits/departmentswithintheprocuringentityandtootherinterestedusers.

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12.5.UtilizationofEvaluationResultsTheCIAPshallconsolidatealloftheCPESevaluationresultsreceivedandshalldisseminatethesametoallProcuringEntitiesconcerned.TheCPESratingandotherinformationshallbeusedbytheconcernedgovernmentagenciesforthefollowingpurposes:(a)prequalification/eligibilityscreeningofconstructors;(b)awardingofcontracts;(c)projectmonitoringandcontrol;(d)issuanceofCertificateofCompletion;(e)policyformulation/review;(f)industryplanning;(g)grantingofIncentives/Awards,and,inadoptingmeasuretofurtherimproveperformanceofcontractorsintheprosecutionofgovernmentprojects.

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3.1.Advantages:a)Sincebothdesignandconstructionareinthehandsofthecontractor,thereisasinglepointofresponsibilityforquality,cost,andscheduleadherence,includingtherisksrelatedtodesign.Thisprecludesbuck-passingandfinger-pointingbetweenthedesignerandthebuilder.

b)Becausedesignandconstructionperiodscanoverlap,thetotaldesignandconstructiontime,aswellasthefinalprojectcost,willbesignificantlyreduced.

c)Theprocuringentityisassuredofqualityconsideringthatthelargerresponsibilityimplicitinthedesign-buildschemeservesasmotivationforhighqualityofthefacilitytobeprovided.Oncetherequirementsoftheprocuringentityaredefinedinperformanceterms,thedesigner-builderisresponsibleforproducingtheresultsaccordingly.Thedesigner-builderwarrantstotheprocuringentitythatthedesigndocumentsarecompleteandfreefromerror.

d)Theprocuringentitydoesnotneedtospendmuchtimeandmoneyinseeingtoitthattheworkisdonebythecontractorexactlyasindicatedbythedesigndocumentspreparedbythedesigner,andincoordinatingandarbitratingbetweenseparatedesignandconstructioncontracts.

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3.2.Disadvantages:a)ProcuringEntitiesshould,however,takeintoaccountthatinutilizingthedesignandbuildschemeforaparticularproject,contractorsaregiventoomuchdiscretionindeterminingtheprojectcostandthereisdifficultyinpredictingitsfinalcostuntiltheactualcommencementofconstruction.This,however,canbeaddressedbyprescribingthatthebid/contractpriceshouldnotexceedtheApprovedBudgetforContract(ABC)oftheprocuringentityandthatthecontractpriceisafixedlumpsumamount.

b)Consideringthattheextentoftheintegrationofdesignandconstructionoftheprojectisexceptionallydependentonthecontractor,theremaybecaseswhentheend-resultmaynotbeexactlyinaccordancewithwhattheprocuringentityhasrequired.Thesecasescanbeavoidediftheprocuringadequatelydefinestheoutputorperformancespecificationsandparameters.

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a.ApprovedBudgetfortheContract(ABC).Thisshallbealumpsumamountthatshallcoverthecostofdesignandconstructionworks(attheoptionoftheprocuringentity)basedontheconceptualdesignandperformancespecificationsandinaccordancewithapplicableprovisionsofthelaworagencyguidelines.TheABCshallbecalculatedbasedoneithertheapproximatequantitiesofworkoftheconceptualdesign,fromstandardizeddesignsorfromcostrecordsofpreviousprojectsofsimilarkind.

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b.BiddingDocumentsforDesignandBuildScheme.TheseshallbasicallybesimilartotheBiddingDocumentsforinfrastructureprojectsandshallalsoincludetheperformancespecificationsandparameterstobefollowedbythedesignandbuildcontractorsandthemethodforallocationofrisksforthedesignandbuildcontract,amongothers.

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c.ConceptualDesign.Thisshalldescribethegeneralideaoftheprocuringentitywithregardtothecompletedfacilityandshallidentifythescopeorphysicalcomponentsandstructures,specificoutputsandrequirementsofthestructuresandproposedmethodsofconstruction,wherenecessary.

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d.DesignandBuildProjects.Thisreferstoinfrastructureprojectswheretheprocuringentityawardsasinglecontractforthearchitectural/engineeringdesignandconstructiontoasinglefirm,partnership,corporation,jointventureorconsortium.

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e.PerformanceSpecificationsandParameters.Theprocuringentityshalldefinetherequiredperformancespecificationsandcriteriaanditsmeansofmeasurementbasedontheoperatingoutputsandinaccordancewithappropriatedesignandconstructionstandards,legalandtechnicalobligationsandanyotherrelevantgovernmentcommitmentsasrequiredbyexistinglawsandregulations.Itshallnotbedrawnuptofavoraparticularsolution,designandconstructionmethod.

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f.PreliminaryInvestigations.Theseshallinclude,amongothers,informationonsoil,geotechnical,hydrologic,hydraulic,seismic,traffic,andenvironmentalconditionsthatshallbeusedtodefineprojectdesigncriteria,tosetthebasisforanychangedconditionsandestablishpreliminaryprojectcostestimates.

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g.PreliminarySurveyandMapping.Theseshalldetermineboundariesandprovidestationingalongcontrollinestoestablishfeatureanddesigncriterialocation,andidentifyexistingandfutureright-of-waylimitsandconstructioneasementsassociatedwiththeprocuringentitysconceptualdesign.

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h.ProjectDescription.Thisshalldefinetheobjectives,purpose,limitationsorconstraints,aswellastheallocationofrisksbetweentheprocuringentityandthewinningbidder.

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i.UtilityLocations.Theprocuringentityshallprovideinformationonexistingutilitiesinandaroundtheprojectsarea.

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5.1.TheDesignandBuildschemeshallbeappliedunderanyofthefollowingcases:a.Forflagship,priorityandfasttrackprojectsthatneedtobecompletedonatightcompletionschedule,asincludedintheMediumTermPublicInvestmentProgram(MTPIP)fornationalprojectsandintheRegionalDevelopmentInvestmentPlan(RDIP)forregionalandprovincialprojects;b.Forinfrastructureprojectsrequiringadvancedengineeringorconstructiontechnologiesorwhoseintellectualpropertyrightsbelongtoprivatecompanies;c.Forinfrastructureprojectswheredesign,equipment,plantandconstructioncanbeprovidedexclusivelybyacompanyorwheremanufacturer sknow-howisimportantintheconstructionofsuchfacility;ord.Forsmallprojectswheretherearepreviouslyapproveddrawingsorstandardizeddesignsandaninnovationindesignandconstructionmethodsunderthedesignandbuildschemewillresultinlowercostsandhigherqualityprojects.Examplesoftheseareschoolbuildings,ruralhealthunits,amongothers.

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5.2.AlldesignandbuildprojectsshallbeincludedintheAnnualProcurementPlan(APP)oftheprocuringentityconcernedandshallbesubjecttopriorapprovalbytheHeadoftheProcuringEntityorhis/herdulyauthorizedrepresentative.

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i.ClassADocuments(Legal,TechnicalandFinancialDocuments)andClassBDocumentsTheprospectivebiddershallsubmitalltherequiredClassAandClassBdocumentsforinfrastructureprojectsandthefollowing:a)relevantstatementsofallon-going,completed,awardedbutnotyetstarteddesign/designandbuildrelatedcontracts,curriculumvitaeofkeystaff,partnersorprincipalofficers;and

b)validlicensesissuedbytheProfessionalRegulatoryCommission(PRC)fordesignprofessionalsinaccordancewiththeprovisionsunderSection24.7.1(TechnicalDocuments)ofthisIRR.

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ii.EligibilityCriteriaa)Theeligibilityofdesignandbuildcontractorsshallbebasedonthelegal,technicalandfinancialrequirementsabovementioned.Inthetechnicalrequirements,thedesignandbuildcontractor(assoloorinjointventure/consortia)shouldbeabletocomplywiththeexperiencerequirementundertheIRRofR.A.9184,whereoneoftheparties(inajointventure/consortia)shouldhaveatleastonesimilarproject,bothindesignandconstruction,withatleast50%ofthecostoftheABC.

b)Ifthebidderhasnoexperienceindesignandbuildprojectsonitsownitmayenterintosubcontracting,partnerships,orjointventurewithdesignorengineeringfirmsforthedesignportionofthecontract.

c)TherelevantprovisionsunderSection23.11.2.1oftheIRRofR.A.9184oneligibilityrequirementsshallbeobserved,withthefollowingexceptions:

Jointventures/consortiaamongFilipinocontractorsandconsultantsoramongFilipinocontractorsandforeignconsultantsshallbeallowedsubjecttopertinentlawsandtherelevantprovisionsoftheIRRofR.A.9184.Thejointventure/consortiashallbejointlyandseverallyresponsiblefortheobligationsandthecivilliabilitiesarisingfromthedesignandbuildcontract:Provided,however,ThatFilipinoownershiporinterestthereofshallbeatleastseventyfivepercent(75%):Providedfurther,Thatjointventures/consortiainwhichFilipinoownershiporinterestislessthanseventy-fivepercent(75%)maybeeligiblewherethestructurestobebuiltrequiretheapplicationoftechniquesand/ortechnologieswhicharenotadequatelypossessedbyFilipinosandthatFilipinoownershiporinterestshallnotbelessthantwenty-fivepercent(25%):Provided,finally,thatwhenthedesignservicesinwhichthejointventurewishestoengageinvolvethepracticeofprofessionsregulatedbylaw,allthosewhowillactuallyperformtheservicesshallbeFilipinocitizensandregisteredprofessionalsauthorizedbytheappropriateregulatorybodytopracticethoseprofessionsandalliedprofessionsandwhereforeigndesignersarerequired,theforeigndesignermustbeauthorizedbytheappropriatePhilippineGovernmentprofessionalregulatorybodytoengageinthepracticeofthoseprofessionsandalliedprofessions.

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10.1.Inthesubmissionofbids,thefirstenvelope(TechnicalProposal)shallcontainalltherequireddocumentsforinfrastructureprojectsunderSection25.3(b)oftheIRRofR.A9184andthefollowingadditionaldocuments:

i.PreliminaryConceptualDesignPlansinaccordancewiththedegreeofdetailsspecifiedbytheprocuringentity;ii.Designandconstructionmethods;iii.Listofdesignandconstructionpersonnel,tobeassignedtothecontracttobebid,withtheircompletequalificationandexperiencedata;andiv.Valueengineeringanalysisofdesignandconstructionmethod.

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10.2.Thesecondenvelope(FinancialProposal)shallcontainalltherequireddocumentsforinfrastructureprojectsunderSection25.3(b)oftheIRRofR.A9184andthefollowingadditionaldocuments:

i.Lumpsumbidprices,whichshallincludethedetailedengineeringcost,intheprescribedBidForm;ii.Detailedestimatesincludingasummarysheetindicatingtheunitpricesofconstructionmaterials,laborratesandequipmentrentalsusedincomingupwiththebid;andiii.Cashflowbythequarterandpaymentsschedule.

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11.1.First-StepProcedure:i.ThefirststepoftheevaluationshallinvolvethereviewofthepreliminaryconceptualdesignsandtrackrecordsubmittedbythecontractorasindicatedintheBiddingDocumentsusinganon-discretionarypass/failcriteriathatinvolvecompliancewiththefollowingrequirements:

a.Adherenceofpreliminarydesignplanstotherequiredperformancespecificationsandparametersanddegreeofdetails;b.Conceptofapproachandmethodologyfordetailedengineering,designandconstructionwithemphasisontheclarity,feasibility,innovativenessandcomprehensivenessoftheplanapproach,andthequalityofinterpretationofprojectproblems,risks,andsuggestedsolutions;c.Qualityofpersonneltobeassignedtotheprojectwhichcoverssuitabilityofkeystafftoperformthedutiesoftheparticularassignmentsandgeneralqualificationsandcompetenceincludingeducationandtrainingofthekeystaff;

ii.Forcomplexoruniqueundertakings,suchasthoseinvolvinghighlyspecializedoradvancedengineeringtechnology,eligiblebiddersmayberequired,attheoptionoftheagencyconcerned,tomakeanoralpresentationwithinfifteen(15)calendardaysafterthedeadlineforsubmissionoftechnicalproposals.

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11.2.Second-StepProcedure:Onlythosebidsthatpassedtheabovecriteriashallbesubjectedtothesecondstepofevaluation.TheBACshallopenthefinancialproposalofeachpassedbidderandshallevaluateitusingnon-discretionarycriteria-includingarithmeticalcorrectionsforcomputationalerrors-asstatedintheBiddingDocuments,andthusdeterminethecorrecttotalcalculatedbidprices.TheBACshallautomaticallydisqualifyanytotalcalculatedbidpricewhichexceedstheABC.Thetotalcalculatedbidprices(notexceedingtheABC)shallberanked,inascendingorder,fromlowesttohighest.ThebidwiththelowesttotalcalculatedbidpriceshallbeidentifiedastheLowestCalculatedBid(LCB).

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13.1.Noworksshallcommenceunlessthecontractorhassubmittedtherequireddocumentaryrequirementsandtheprocuringentityhasgivenwrittenapproval.Workexecutionshallbeinaccordancewithreviewedandapproveddocuments.

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13.2.Thecontractorshallberesponsibleforobtainingallnecessaryinformationastorisks,contingenciesandothercircumstanceswhichmayaffecttheworksandshallprepareandsubmitallnecessarydocumentsspecifiedbytheprocuringentitytomeetallregulatoryapprovalsasspecifiedinthecontractdocuments.

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13.3.TheContractorshallsubmitadetailedprogramofworkwithinfourteen(14)calendardaysaftertheissuanceoftheNoticetoProceedforapprovalbytheprocuringentitythatshallinclude,amongothers:i.Theorderinwhichitintendstocarryouttheworkincludinganticipatedtimingforeachstageofdesign/detailedengineeringandconstruction;ii.Periodsforreviewofspecificoutputsandanyothersubmissionsandapprovals;iii.Sequenceoftimingforinspectionsandtestsasspecifiedinthecontractdocuments;iv.Generaldescriptionofthedesignandconstructionmethodstobeadopted;v.Numberandnamesofpersonneltobeassignedforeachstageofthework;vi.Listofequipmentrequiredonsiteforeachmajorstageofthework;andvii.Descriptionofthequalitycontrolsystemtobeutilizedfortheproject.

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13.4.Anyerrors,omissions,inconsistencies,inadequaciesorfailuresubmittedbythecontractorthatdonotcomplywiththerequirementsshallberectified,resubmittedandreviewedatthecontractor scost.IftheContractorwishestomodifyanydesignordocumentwhichhasbeenpreviouslysubmitted,reviewedandapproved,thecontractorshallnotifytheprocuringentitywithinareasonableperiodoftimeandshallshoulderthecostofsuchchanges.

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13.5.Asarule,changesindesignandconstructionrequirementsshallbelimitedonlytothosethathavenotbeenanticipatedinthecontractdocumentspriortocontractsigningandapproval.Thefollowingguidelinesshallgovernapprovalforchangeorvariationorders:i.ChangeOrdersresultingfromdesignerrors,omissionsornonconformancewiththeperformancespecificationsandparametersandthecontractdocumentsbythecontractorshallbeimplementedbythecontractoratnoadditionalcosttotheprocuringentity.ii.Providedthatthecontractorsuffersdelayand/orincurscostsduetochangesorerrorsintheprocuringentitysperformancespecificationsandparameters,heshallbeentitledtoeitheroneofthefollowing:a.anextensionoftimeforanysuchdelaysunderSection10ofAnnexE;orb.paymentforsuchcostsasspecifiedinthecontractdocuments,provided,thatthecumulativeamountofthevariationorderdoesnotexceedtenpercent(10%)oftheoriginalcontractprice.

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13.6.Thecontractdocumentsshallincludethemannerandscheduleofpaymentspecifyingtheestimatedcontractamountandinstallmentsinwhichthecontractpricewillbepaid.

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13.7.ThecontractorshallbeentitledtoadvancepaymentsubjecttotheprovisionsofSection4ofAnnexE.

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13.8.Theprocuringentityshalldefinethequalitycontrolproceduresforthedesignandconstructioninaccordancewithagencyguidelinesandshallissuethepropercertificatesofacceptanceforsectionsoftheworksorthewholeoftheworksasprovidedforinthecontractdocuments.

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13.9.Thecontractorshallprovideallnecessaryequipment,personnel,instruments,documentsandotherstocarryoutspecifiedtests.

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13.10.AlldesignandbuildprojectsshallhaveaminimumDefectsLiabilityPeriodofone(1)yearaftercontractcompletionorasprovidedforinthecontractdocuments.Thisiswithoutprejudice,however,totheliabilitiesimposedupontheengineer/architectwhodrewuptheplansandspecificationforabuildingsanctionedunderSection1723oftheNewCivilCodeofthePhilippines.

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13.11.Thecontractorshallbeheldliablefordesignandstructuraldefectsand/orfailureofthecompletedprojectwithinthewarrantyperiodsspecifiedinSection62.2.2oftheIRR.

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a)Iftheprocuringentitysrepresentative/ProjectEngineerbelievesthataChangeOrderorExtraWorkOrdershouldbeissued,heshallpreparetheproposedOrderaccompaniedwiththenoticessubmittedbythecontractor,theplanstherefore,hiscomputationsastothequantitiesoftheadditionalworksinvolvedperitemindicatingthespecificstationswheresuchworksareneeded,thedateofhisinspectionsandinvestigationsthereon,andthelogbookthereof,andadetailedestimateoftheunitcostofsuchitemsofwork,togetherwithhisjustificationsfortheneedofsuchChangeOrderorExtraWorkOrder,andshallsubmitthesametotheHeadoftheProcuringEntityforapproval.

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b)TheHeadoftheProcuringEntityorhisdulyauthorizedrepresentative,uponreceiptoftheproposedChangeOrderorExtraWorkOrdershallimmediatelyinstructthetechnicalstafftoconductanon-the-spotinvestigationtoverifytheneedfortheworktobeprosecuted.AreportofsuchverificationshallbesubmitteddirectlytotheHeadoftheProcuringEntityorhisdulyauthorizedrepresentative.

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c)TheHeadoftheProcuringEntityorhisdulyauthorizedrepresentative,afterbeingsatisfiedthatsuchChangeOrderorExtraWorkOrderisjustifiedandnecessary,shallreviewtheestimatedquantitiesandpricesandforwardtheproposalwiththesupportingdocumentationtotheHeadofProcuringEntityforconsideration.

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d)If,afterreviewoftheplans,quantitiesandestimatedunitcostoftheitemsofworkinvolved,theproperofficeoftheprocuringentityempoweredtoreviewandevaluateChangeOrdersorExtraWorkOrdersrecommendsapprovalthereof,theHeadoftheProcuringEntityorhisdulyauthorizedrepresentative,believingtheChangeOrderorExtraWorkOrdertobeinorder,shallapprovethesame.

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e)ThetimeframefortheprocessingofVariationOrdersfromthepreparationuptotheapprovalbytheprocuringentityconcernedshallnotexceedthirty(30)calendardays.

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ANNEX H THRESHOLDS FOR SHOPPING AND SMALL VALUE … · 2016-07-22 · ANNEX H THRESHOLDS FOR...

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Transcript of ANNEX H THRESHOLDS FOR SHOPPING AND SMALL VALUE … · 2016-07-22 · ANNEX H THRESHOLDS FOR...