RA 9184 Government Procurement Reform Act

65th PICPA National Convention 23-26 November 2010

DOING THE RIGHT THINGS DOES NOT ONLY MAKE SENSE MORALLY, BUT TRANSLATES INTO ECONOMIC VALUE AS WELL!

GPRA
01/26/03

Republic Act No. 9184

An Act providing for the Modernization, Standardization and Regulation of the Procurement Activities of the Government and for other Purposes

What is Procurement?
Acquisition

of goods, consulting services and contracting of infrastructure projects by the procuring entity IRR of GPRA

Topics

Scope and Coverage Procurement Principles Procurement Planning Procurement Organization Observers Public Bidding Changes & Alternative Methods modifications Other Updates E-procurement

Scope, Coverage, Application

R.A. 9184 Governs the Procurement of:
Goods (Supplies, Materials, Equipment, Janitorial, Security, and Related Services Infrastructure Projects (Civil Works)
construction, repair, improvement of physical facilities

Consulting Services hiring of professional

external expertise (advisory, design, special studies, management services)

R.A. 9184 Covers Procurement Planning

up to Contract Implementation

Application
R.A. 9184 Applies to public sector:
National Government Agencies (NGAs) State Universities and Colleges (SUC) Government Owned or Controlled Corporations (GOCC) Government Financial Institution (GFI) Local Government Units (LGUs) including barangays

SCOPE AND APPLICATION

COVERAGE

(Revised IRR)

All domestically-funded procurement activities

of the GOP NGAs, GOCCs, GFIs, SUCs, LGUs

All foreign-funded procurement activities,

except when the treaty, international or

executive agreement expressly provides the use of foreign govt./international financing institution procurement rules
But procurement funded thru foreign grants are

excluded

SCOPE AND APPLICATION

Clarification
In case of conflict between IRR and Treaty/Intl. Agreement the LATTER shall prevail GOP negotiating panels shall:
Adopt as default position, use of the IRR or

selection thru competitive bidding Explain in writing if treaty, international or executive agreement states otherwise

IRR DOES NOT COVER . .

Procurement of goods, infra or consulting services funded from foreign grants or ODA covered by RA 8182/8555 except when GOP and foreign grantor agree otherwise Acquisition of real property i.e. right- ofway covered by RA 8974 Public-Private sector infrastructure or devt. projects covered by RA 6957/7718 such as BOT except portion by GOP regardless of source of funds

PROCUREMENT TOOLKITS
Implementing Rules and Regulations Part A signed by PGMA thru MO 119 on Sept. 23, 2003,
took effect Oct. 8, 2003

Standard Bidding Documents and Forms issued May 26, 2005 to be used by PEs starting
July, 2005

Procurement Manuals
Generic LGU Customized 2 versions Issued Dec. 26, 2006 to be used Jan. 2007 Issued Nov. 29, 2007 took effect Feb 1, 2008

PROCUREMENT TOOLKITS
Revised IRR approved per GPPB Res. 200903, July 22, 2009, took effect Sept. 2, 2009 Philippine Bidding Documents (PBDs), 3rd Edition, issued Oct. 2009 Standard Forms revision on-going; issued so far: APP, PPMP, PMR

Use of GPM, PBDs and Forms is mandatory modification may be made to suit particular need of PEs

GPRA Principles
HOW
Wide dissemination of procurement opportunities Observers presence

HOW
Simple; non discretionary Adaptable to changes in technology

GPRA
HOW
Equitable treatment of bidders Fair grounds for competition

HOW
Responsibilities clear & legally identifiable Sanctions for erring officials/private parties

Other Considerations

Harmonization - alignment with international best practices

Application of Domestic Preference AO 227, Flag Law Learn from experience address concerns raised by procuring entities

PROCUREMENT PLANNING
RULE

II (Section 7)

DOs and DONTs

All procurement within the approved budget Procurement in accordance with APP duly approved by HOPE or his authorized 2nd ranking designated official WHAT TO INCLUDE IN APP? - those considered crucial to discharge of official functions required in day-to-day operation or pursuit of PEs mandate APP to include provision for emergencies based on historical records to avoid piecemeal approval of the HOPE

ABC

Approved Budget for the Contract (ABC)

Refers to budget for the contract duly

approved by the Head of the Procuring Entity Approved Budget is CEILING for bid prices Invitation to Bid should specify the APPROVED BUDGET for the contract and the source of funding In determining ABC, consider:
Appropriation for the project/procurement Market price Inflation and cost of money directly related to the procurement timetable

GPPB Joint Circular No. 01-2009

Approved Budget for the Contract (ABC)

Specifically appropriated items in the budget: full cost of single year project Lump sum approp. allocation of specific implementing unit as determined by the head of the dept/agency

NGAs/SUCs

GOCCs/LGUs
Amount of fund transfer received from the national government

GPPB Joint Circular No. 01-2009

Can procurement be carried out without an approved budget?

To facilitate implementation of projects, ABC shall be based on the budget levels in the NEP Lump sum approp. head of agency to notify IUs of allocation for projects to be imlemented BUT NOTICE OF AWARD TO BE ISSUED Upon receipt of ABM or SARO NGAs Receipt of actual cash transfer GOCCs/LGUs

GF/20% DF

Bidding

Purchase of office supplies Farm to Market Roads

Nego P

PDAF

PROCUREMENT PLANNING
Starts/ synchronized with Budget Preparation
End-user unit Budget Officer End user/BAC

Evaluate PPMPs; Upon budget Start of the year, include in Budget enactment, prepare PPMP Proposal for revise/adjust for Programs, approval of HOPE PPMP Projects Support budget Furnish BAC Sec. proposal for Copy of budget MOOE & CO proposal with the PPMP BAC finalizes procurement mode and APP

PROCUREMENT PLANNING
PPMP

- serves as a guide document in procurement and contract implementation Content (Sec. 7.3.2 IRR)
information whether projects will be contracted out or implemented by Administration type and objective of contract extent/size of contract packages procurement methods to be adopted indicating if procurement is to be outsourced time schedule of procurement and implementation estimated budget for general component

PROCUREMENT PLANNING
Updating of PPMP every 6 months or as often required by the HOPE (addtl. allotment; change in procurement method)
End-user unit BAC Secretariat HOPE Responsibility to update PPMP Consolidate PPMPs into the APP Approves the APP

At all times, ABC as reflected in the PPMP and APP consistent with the appropriations in the budget in the GAA, continuing/automatic appropriations

PROCUREMENT ORGANIZATION
Bids and Awards Committee (BAC)
General Rule:
Single BAC procurement in Head Officeto consolidate

Exception:
To expedite the procurement and where the number and complexity of the items to be procured warrants

HOPE may create separate BAC BAC organized according to: Geographical location of PMO or end-user Nature of procurement

PROCUREMENT ORGANIZATION
Bids and Awards Committee (BAC)
Composition:
At least FIVE (5) MEMBERS, but not more than SEVEN

(7) MEMBERS

Qualification:
Personnel of unquestionable integrity and procurement proficiency Occupying plantilla position NOT THE TENURE OF INCUMBENT Chairman at least 3rd ranking permanent official

Tenure
Fixed term of 1 year unless sooner removed; can be renewed at the option of HOPE

PROCUREMENT ORGANIZATION
Alternate

BAC allowed (Sec. 11.2.4)

HOPE may designate alternate members

Same qualification and term as principal Attend meetings and receive honoraria

when principals are absent Accountability limited to their acts and decisions Advisable HOPE to identify who
compose the principal BAC and the Alternates

Functions of the BAC (Sec. 12.1)

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Advertise/Post Invitation to Bid/RFEI Conduct Pre-Procurement & Pre-Bid Determine eligibility of bidders Receive bids Conduct evaluation of bids Undertake Post Qualification Resolve Motion for Reconsideration Recommend award of Contracts Recommend Imposition of Sanctions Recommend use of Alternative Methods Create TWG

Other BAC Responsibilities (Sec. 12.2)

Ensure that PE abides by standards of GPRA and its IRR

Prepare

Procurement Monitoring Report covering all activities specified in the APP (pre-proc. to award of contract For Approval and submission to

HOPE GPPB

In printed & electronic form within 14 c.d after end of Semester

Procurement Organization
The BAC Secretariat
Head of the Procuring Entity shall create a BAC Secretariat to serve as the main support unit of the BAC

OPTIONS
He may designate an existing organic office to serve as BAC Secretariat To promote professionalization, he may reorganize the organic office by designating it as BAC Secretariat and redeploying appropriate existing personnel to it to perform this function and other procurement related tasks

Functions - BAC Secretariat (Sec. 14.1)

1. Provide administrative support to the BAC 2. Organize and make arrangements for BAC

meetings and conferences 3. Prepare minutes and resolutions of the BAC 4. Take custody of procurement documents and other records 5. Manage sale/distribution of Bid docs 6. Advertise/post bid opportunities, bid docs and notice of awards 7. Assist in managing procurement process 8. Monitor procurement activities/milestones 9. Consolidate PPMPs from various units of PE 10. Central channel of communications

Procurement Organization
TWG created by the BAC from a pool of technical, financial and/or legal experts Responsibilities of the TWG Assist BAC in preparing bidding documents Assist BAC in eligibility check/short-listing Assist BAC in bid evaluation and preparation of reports Assist BAC in post-qualification and prepare the post-qualification summary report Assist BAC and BAC Secretariat prepare Resolution Recommending Award, with regard to technical aspect, if necessary

Observers To enhance Transparency

In addition to COA representative, the BAC shall invite, IN ALL STAGES of the procurement process, at least TWO (2) OBSERVERS to sit and monitor the procurement proceedings, to wit:
Duly recognized private sector association relevant to procurement at hand Non-government organization (NGO)
No right to Vote

CRITERIA: Selection of Observers

Observers shall come from an organization duly registered with the SEC or CDA, and should: Have knowledge, experience or expertise in procurement or subject matter of contract to be bid Have no actual or potential interest in the contract to be bid Any other relevant criteria determined by the BAC

DOs and DONTs

Observers

Invited in writing at least 3 days prior to procurement stage/activity Absence of observers will not nullify BAC proceedings Allowed access upon request subject to signing of confidentiality agreement: - minutes of BAC meetings - abstract of bids COA Rep not required - post qualification report to sign - APP and related PPMP - opened proposals

Observers Responsibilities
Prepare

report re: observation on procurement activity, assessment of BACs compliance with IRR, suggestions for areas of improvement HOPE cc: BAC Submit report to PE cc: GPPB and Ombudsman/Resident Ombudsman IF NO REPORT SUBMITTED IT IS UNDERSTOOD THAT BIDDING FOLLOWED CORRECT PROCEDURES Inhibit and notify in writing the PE of any actual or potential interest in the contract to bid

Bidding Documents (Sec. 17)

Bid Docs prepared following standard forms and manual prescribed by GPPB Made available from time Invitation to Bid/Request for Expression of Interest is advertised BAC to issue Bid docs to bidders upon payment of prescribed fee PE to post Bid docs at website and PhilGEPS website from time of advertisement Bidders may download Bid docs and pay fee upon submission of Bids

Bidding Documents (Sec. 17)

Bid Docs follows forms and manuals of GPPB include:
ABC Invitation to Bid/REI Eligibility Requirements Instructions to Bidders Technical specifications Form of Bid, Price form, and List of Goods Delivery Time Form, Amount and validity of Bid Security Form, Amount and Validity of Performance Security and Warranty Form of Contract and General and Special Conditions of Contract

Advertising of Invitation to Bid (Sec. 21)

IAEB

change to:
CONSULTING

GOODS & INFRA

Invitation to Bid

Request for Expression of Interest

Period/Manner of Advertising
PhilGEPS website PEs own website Conspicuous place reserved for the purpose If ABC exceeds P 2 M for Goods; P 5 M for Infra; P 1 M for consulting

Continuously for 7 CD

Once in newspaper of nationwide general circulation For foreignfunded procurement

Posted in the website prescribed by foreign govt./foreign or intl. funding institution

Amendments

Pre-Bid Conference (Sec. 22)

To be held at least 12 cd before

deadline of bid submission May be extended at least 30 cd before bid submission IF:

Method, nature and complexity of

contract International participation is more advantageous

At the option of PE, only bidders who

purchased bid documents are allowed to attend or ask questions

Submission and Receipt of Bids (Sec. 25) Two separately sealed Envelopes
Envelope 1

Eligibility requirements plus Technical Proposal

Envelope 2

Financial Proposal Both envelopes are submitted simultaneously

Submission & Receipt of Bids (Sec. 25)

For

Infrastructure Projects: Technical (incl. eligibility requirements), and Financial Proposals will now be submitted at the same time
For Technical Proposal CLC or Cash Deposit Certificate NOT REQUIRED

Resolution No. 13-2009

Amendment to Section 29 of the IRR

Eligibility Requirements (Secs. 23 & 24)

Number

of Required documents reduced from 11 to 6

Legal Documents DTI/SEC/CDA registration Mayors permit from principal place of business Technical Documents Statement of all on-going and completed contracts In case of Infra, PCAB license and registration In case of consulting, statement of nationality and confirmation that personnel are registered professionals

Eligibility Requirements (Secs. 23 & 24)

Financial Documents
Audited Financial Statement received by the BIR NFCC computation or Credit Line Commitment

(CLC) from a universal or commercial bank For LGUs, other banks authorized by BSP to issue said instrument
Not allowed

Cash or Hold out on cash deposit equal to 10% of ABC If Joint Venture (Class B)
Joint Venture Agreement (JVA) If no JVA, sworn statements by each partner that they

will enter into and abide by provisions of the JVA if awarded the contract

Eligibility Requirements (Secs. 23 & 24)

To facilitate determination of Eligibility BAC may maintain Registry System (Sec. 23.4) Using PhilGEPS, Manual or electronic Class A documents (legal, technical & financial) To be maintained current and updated Certification in lieu of eligibility documents Letter of Intent/Application for eligibility or updates Deadline stated in bid documents Not later than date of bid submission Documents submitted after shall not be considered

Submission and Receipt of Bids (Sec. 25)

Documentary

requirements for 1ST envelope (Technical proposal) trimmed down

Documents requiring Sworn Statement lumped into one document (Omnibus certification prescribed in PBD)
Not blacklisted or barred from bidding by GOP, LGU or foreign govt/IFI Authenticity of documents submitted Authority to HOPE to verify documents submitted Authority and power of signatory as representative Compliance with disclosure of relations Compliance with responsibilities of prospective bidder Compliance with labor laws and standards (services)

Bid & Performance Securities (Secs. 27 & 39)

Deleted certified check from acceptable forms

In general, bank issued securities must be

issued by a universal/commercial bank

However, in biddings conducted by LGUs,

securities may be issued by banks certified by BSP as authorized to issue said instruments

Surety

Bonds must be accompanied by certification from Insurance Commission that issuer is authorized to issue such security

Bid & Performance Securities (Secs. 27 & 39)

Form of Bid and Performance Security
a)

Amt of Bid Security (% of the ABC)

Amt of Performance Security (% of Contract) Goods and Consulting (5%) Infrastructure Projects (10%)

Cash, cashiers/managers check, bank guarantee/ draft

2%

b) Irrevocable LC

1%/1
5%

c)

Surety bond callable upon demand

30%
Proportionate to share of form with respect to the total amount of security

2
Proportionate to share of form with respect to the total amount of security

d) Combination of the foregoing

Amendments

Post-qualification (Sec. 34)

Within

3 cd from receipt of Notice from BAC, LCB/HRB submit following documents:

Tax clearance Latest income and business tax returns Certificate of PhilGEPS registration Other appropriate licenses and permits required

by law and stated in the Bidding Documents.

Originally part of Eligibility requirement

Notice of Award (Sec. 37)

BAC

to recommend to HOPE Award of Contract to LCRB/HRRB subject to the following:

If joint venture, submission of JVA If foreign-funded and stated in treaty, international

or executive agreement, PCAB License Posting of Performance Security Signing of Contract If required, approvals by higher authority (GOCC)

BAC Secretariat to post within 3 cd from issuance notice of Award in PhilGEPS, PE website, conspicuous place

Failure
Mandatory

of Bidding (Sec. 35)

review and evaluation of terms and conditions and specs after each failed bidding
Based on findings Revise terms, conditions, specifications Adjust ABC, subject to required approvals Rebid Previous bidders declared eligible or short listed in previous biddings allowed to submit new bids

Disclosure of Relations (Sec. 47)

Bidders

who are relatives within the third civil degree of affinity or consanguinity of the following shall be disqualified:
Head of the procuring entity Members of the BAC, Secretariat and TWG Head of the end-user unit or project

management office Project consultants Up to Uncle, Auntie

Degrees of Relationship
Grand Father 2nd

3rd

Uncle

Father

Mother

4th 1st 1st Cousin JUAN

*Conflict of interest covers only relationship by consanguinity or affinity up to the 3rd civil degree

2nd

(Point of Reference)

Brother

Alternative Methods
Limited Source Bidding (Selective Bidding) Sec. 49 Direct Contracting (Single Source Procurement Sec. 50 Repeat Order Sec. 51 Shopping Sec. 52 Negotiated Procurement Sec. 53

Alternative Methods of Procurement (Secs. 48 to 53)

Clearer rules on Negotiated Procurement (2failed Biddings)

Additional instances of Negotiated Procurement
Procurement from UN Agencies

Community Participation Lease (includes venue)

Brings instances to 13

Distinguished between agency-to-agency and

procurement agent

Alternative Methods of Procurement (Secs. 48 to 53)

Higher thresholds set for

shopping (Sec. 52.1) and small value procurement (Sec. 53.9) Guidelines to follow

Depending on economic class of LGUs

Alternative Methods of Procurement Higher Threshold Amount for Unforeseen Contingencies (Shopping) Sec. 52.1(a)
NGAs, GOCCs, GFIs, SUCs from P50,000 to P100,000 LGUs
Classification 1st Class 2nd Class 3rd Class 4th Class 5th Class 6th Class Maximum Amount (in Philippine Pesos) Province 100,000 100,000 100,000 80,000 60,000 50,000 City 100,000 100,000 80,000 60,000 50,000 50,000 Municipality 50,000 50,000 50,000 50,000 50,000 50,000

In case of Barangays, maximum amount is P 50,000

Alternative Methods of Procurement

Higher Threshold Amount for Regular Office Supplies and Small Value Procurement (Secs. 52.1(b) & 53.9)

NGAs, GOCCs, GFIs, SUCs P500,000 LGUs

Classification 1st Class 2nd Class 3rd Class 4th Class 5th Class 6th Class

FROM: Sec. 52.1(b) P250,000; Sec. 53.9 P50,000

Maximum Amount (in Philippine Pesos) Province 500,000 500,000 500,000 400,000 300,000 200,000 City 500,000 500,000 400,000 300,000 200,000 100,000 Municipality 100,000 100,000 100,000 50,000 50,000 50,000

In the case of Barangays, maximum of P50,000

Resolution No. 09-2009

Guidelines for Shopping and Small Value Procurement Approved by GPPB via Referendum on November 23, 2009 For Publication on December 2, 2009 SCOPE:
a) shopping of readily-available off-the-shelf goods, ordinary/regular equipment under Section 52.1 b) Small Value Procurement of goods, infrastructure and consulting services per Section 53.9

Resolution No. 09-2009

General Guidelines
Decision to resort to Shopping and Small Value Procurement reflected in the APP and should consider the foll: annual requirement of the item market factors price fluctuations Splitting of contracts strictly prohibited Procurement may be delegated to support unit duly authorized by BAC

Resolution No. 09-2009

Procedural Guidelines
Preparation of Request for Quotation (RFQ) specification and quantity of the item ABC Terms and conditions RFQ should specify: how price quotations shall be submitted (sealed or open quotation) deadline of submission Examination, evaluation, comparison of price quotations kept confidential, not to be disclosed to other party except those officially concerned until award of contract

Resolution No. 09-2009

Procedural Guidelines
RFQ to be sent to at least 3 suppliers, contractor, consultant of known qualification. For shopping due unforeseen contingencies (Sec. 52.1(a) one supplier only POSTING seven (7) calendar days PhilGEPS LGU website Conspicuous place POSTING NOT REQUIRED: shopping during unforeseen contingency, and if ABC is P50 T and below

Resolution No. 09-2009

Procedural Guidelines
Submission of price quotation may be extended after the deadline if none or less than the required number of price quotations are received. Extended deadline to be posted Abstract of Quotation Names of those who submitted quotation Price Quotations Lowest quotation (goods/Infra) highest rated offer (consulting) Award of Contract made to lowest quotation (goods/Infra) highest rated offer (consulting)

Resolution No. 09-2009

Procedural Guidelines
Posting of Award for Information purposes PhilGEPS LGU Website Conspicuous place EXCEPT IF ABC IS P50,000 AND BELOW

Alternative Methods of Procurement (Sec. 54)

Bid securities not necessary, except Limited Source Bidding Performance and Warranty securities not necessary for:
Shopping (Sec. 52) Negotiated Procurement during emergency

cases (Sec. 53.2) Small value procurement (Sec. 53.9) Lease of real property (Sec. 53.10) Procurement from UN agencies (Sec. 53.13)

Warranty Security (Sec. 62)

Expendable

Supplies 3 months, unless consumed earlier Non-expendable Supplies 1 year

Resolution No. 07-2009

Revised Guidelines on Implementation of Infrastructure Projects by Administration Approved by GPPB on Sept. 30, 2009 RATIONALE: Need to update Guidelines in view of increase in thresholds in the 2009 GAA and 2010 NEP

Resolution No. 07-2009

Resolution No. 07-2009

THRESHOLDS
Before
No approval

Revised P20 M or less P20 M up to P50 M More than P50 M

P 5 M or less P5 M to P 20 M P20 M up to P 50 M

DPWH approval

Presidents approval

SINGLE PORTAL serving as primary

source of information on all Government procurement required for all NGAs, GOCCs and LGUs including BARANGAYS PURPOSE 1: G-EPS shall be utilized for procurement of common-use goods required for all NGAs, LGUs and GOCCs PURPOSE 2: For posting of procurement opportunities (from advertisement to Award) PURPOSE 3: Source of information for other procurement needs (accredited & blacklisted suppliers/contractors, specification, etc.)

Procuring entities are required to post the following:

ITB for competitive bidding and Notices of other procurement using Alternative modes Supplemental Bid Bulletins Contract awards, Notices of awards, including reasons for award of contract Results of Bidding and related information Other Notices, announcements, information to interested parties
Failure to post a procurement opportunity will render resulting contract NULL and VOID

Posting of procurement opportunities, notices of awards, electronic distribution of bid documents and automatic notification of amendments. Data base of all manufacturers, suppliers, distributors, contractors and consultants. Registrants to indicate Account Number from BSP licensed bank for posting/payment of bid/performance security also required to obtain digital certificate

Electronic Bulletin Board

FEATURES (Operational)

Registry

Electronic Catalogue

A centralized price list of commodities that can be procured without bidding

ADDITIONAL FEATURES
Virtual Store
online procurement of both common and noncommon use item from suppliers declared by PS-DBM as LCRB in previous bidding

Electronic Payment
Support e-payment for goods purchased thru Virtual Store; can generate POs and payment of Bids

Electronic Bid Submission

2nd Qtr, 2011

E-bid submission: electronic bid forms, bid box, delivery of bid submission, notification to bidders of bid receipt, bid receiving and bid evaluation

www.philgeps.net

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more updates, visit

http://procurementshoutbox.blogspot.com http://www.gppb.gov.ph http://dbmro6.org/v1

Follow

us on:

http://www.twitter.com/dbmro6_twits http://www.twitter.com/Poncet Email us: dbmro6@yahoo.com poncet53@ yahoo.com abbedoniajr@gmail.com

&nd of presentation

OK