De Mesa, Shara Mae Z.

March 8, 2017
Higuit, Jewel Emerald V.
Marasigan, Jean A.
Tejada, Allan Cedric P.
Tolentino, Julius Mae P.
Uao, Lyka Mae O.
CE - 4202

PROCUREMENT PROCESS

STEPS INPUT PROCESS OUTPUT

1. Necessary Documents WHO Technical
Preparation of submitted by the Bidders 1. The BAC; compliance for
2. The TWG; Bidding
Bidding
3. The end-user unit/PMO; Documents
Documents 4. Consultants, if any; and
5. The BAC Secretariat / Procurement Unit.
6. Procuring Entity

WHEN:1The time of Pre procurement Conference and before “Invitation to Apply for Eligibility and
to Bid”
2 The recommended norm for bid validity is 90 calendar days with the corresponding bid

security valid for 120 calendar days to provide reasonable time (30 days)for the Procuring Entity
to act if the security is to be called.
3Maximum period of 10 calendar days from the receipt of the Notice of Award from the

Procuring Entity

WHY: Before initiating a project, a systematized procurement process should govern to ensure
transparency, or to avoid confusion. It also aims to ensure that bid are open to all.

HOW:
1. Bidding Documents1 are prepared by assigned personnels in form of standard forms and
manuals.(WHO: BAC Secretariat/TWG)
 2. In order to monitor the issuance of documents, personnel will label or number the copies of
bidding documents (WHO: BAC). In connection, another personnel will choose the numbering
or labelling system appropriate for the procuring entity(WHO: BAC Secretariat / Procurement
Unit)
3. Documents such as Bid Security2 must be ensured by the authorized personnel (WHO:
Procuring Entity)
4. Performance Security3will be posted by the bidder with the LCRB to ensure the future winner
will perform the obligation stated in contracts(WHO: Procuring Entity)

2. Bidding Documents WHO: Revised bidding

Pre-procurement 1. The BAC; documents
2. The Secretariat;
Conference
3. Representatives of the PMO or end-user unit/s;
4. The members of the TWG/s and consultants hired by the Procuring Entity who prepared the
technical specifications, TORs, bidding documents and the draft advertisement, as the case
may be, for the procurement at hand;
5. Officials who reviewed the above-enumerated documents prior to final approval, if any; and
other officials concerned, as may be required.

WHEN: At least seven (7) days prior to publication or issuance of the IAEB

WHY: to determine the readiness of the Procuring Entity to procure infrastructure projects in
terms of the legal, technical and financial requirements.

HOW:
1. Ensure that the procurement is in accordance with the PPMP and APP;
2. Determine the availability of the programmed budget for the contract;
3. Determine the state of readiness of the pertinent budget release
4. Determine the state of readiness of the procurement at hand by checking
5. Review, modify and agree on the criteria for eligibility check/screening, and ensure that the
said criteria are fair, reasonable, and that they are of the “pass/fail” type and are written in
such manner.
6. Review, modify and agree on the criteria for the evaluation of bids,
7. Clarify that the specifications and other terms in the bidding documents are minimum
requirements and that the bidder may submit an offer which provides for superior
 specifications, better terms and conditions to the government at no extra cost, without any
bonus, credit or premium in the bid evaluation.
8. Reiterate and emphasize the “no contact rule” during the bid evaluation process, and the
applicable sanctions and penalties, as well as agree on measures to ensure compliance with the
foregoing;
9. Ensure that the requirements to be procured are in accordance with the ABC;
10. Finalize and approve the IAEB.
3. Pre-bid Bidding documents and WHO New
Conference Contracts 1. The BAC; Arrangement of
2. The BAC Secretariat/Procurement Unit; Bidding
3. The TWG members and consultants, if any; Documents
4. The procuring unit/end-user unit;
5. The prospective bidders; and
6. The Observers.

WHEN: A pre-bid conference must be conducted at least 12 calendar days before the deadline for
the submission and receipt of bids
Other Consideration:
a. According to IRR, pre bid conference should not be held earlier than 7 calendar days after the
second newspaper advertisement or the last day of posting the IAEB
b. If the pre-bid conference is held less than 12 calendar days before the deadline for the
submission and receipt of bids that deadline should be moved to a later date.
c. These periods are all within the maximum period of thirty 30 calendar days from the date of
advertisement and/or first day of posting of the IAEB up to the opening of bids

WHY: Clarification and contests are essential for the better delineation of contracts. It is important
that the prospective bidders make a moment to review the bidding documents prior to the pre-bid
conference.

HOW:
1. The authorized personnel presents the technical and financial components of the contract to
bid. The conference is also made possible when the procedure and criteria is evaluated. In
addition failures to be aroused of bidding are also discussed. (WHO: BAC)
2. Requirements in the Instructions to Bidders are discussed. Also, contests and clarification are
 also answered by the personnel and conditions and specifications of the project are
announced.(WHO: BAC Chairperson)
3. The recording of minutes of the pre-bid conference is through. (WHO: BAC Secretariat)
4. 1. Class ‘A’ documents Who: Technical and
Submission of a. Legal documents 1. The BAC; Financial
DTI business name 2. The TWG; envelope of the
Bids
registration; 3. The BAC Secretariat /Procurement Unit; ‘eligible’ bidder
SEC registration 4. The bidders; and
certificate; 5. The Observers
CDA Registration;
Valid Mayor’s permit; WHEN: On or before the specified time and date of the deadline for submission of bids (IAEB)
BIR Registration Within 30 c.d. from date of advertisement and/or first day of posting the IAEB
Certification; and
Tax Clearance WHY: It is a procedure to determine if a prospective bidder is eligible to participate in the bidding
Certificate issued by the at hand.
BIR
b. Technical HOW:
documents 1. The Eligibility, Technical and Financial bid envelopes must be submitted to the BAC on or before
Name, date and amount the deadline specified in the IAEB.
of the contract; 2. The BAC Secretariat must stamp the face of the outer envelope as “RECEIVED”.
The kinds of goods sold; 3. The BAC shall open and read in public the Eligibility envelopes on the same day as the bid
and The date of delivery opening.
c. Financial 4. The BAC shall declare prospective bidders as either “eligible” or “ineligible”.
documents 5. The BAC shall inquire from ineligible bidders who are present during the Eligibility Check
2. Class ‘B’ documents - whether or not they intend to file a request for reconsideration.
Valid JVA 6. The BAC shall return the envelopes of a prospective bidder if it is declared “ineligible”.
7. The BAC shall proceed with the opening of the Technical envelopes of eligible bidders, and the
Preliminary Examination of Bids.
8. If the Technical Bid envelope is insufficient, the bid shall be declared as “failed” and
immediately returned to the bidder concerned, together with the unopened financial envelope.
9. The BAC shall open the second bid envelope (Financial Proposals) of each remaining technically
complying bidder.
10. All members of the BAC and the Observers who are present during bid opening, shall initial
every page of the original copies of all bids received and opened.
 11. The BAC Secretariat shall record the proceedings using a tape recorder, or a video recorder or
any device that may facilitate the recording.
5. Bidding documents of the WHO: Chooses the
Bid Evaluation ‘eligible’ bidder 1. The BAC best value for
2. The TWG money bid.
and Ranking
3. The BAC Secretariat/ Procurement Unit
4. The Observers
When:
The entire evaluation process for the bids for the procurement of goods must be completed in not
more than seven (7) calendar days from the deadline for receipt of proposals
Note: BAC should exert effort to complete the Bid Evaluation before the lapse of the 15-
day period, as this will expedite the procurement process.

Why: To evaluate and compare the responsive bids strictly in monetary terms (cost & cost-related
factors)

How:
1. The bid must be complete.
2. Minor arithmetical corrections to consider computational errors, omissions and discounts, if
allowed in the bidding documents, to enable proper comparison of all eligible bids.
3. In the evaluation of bids, all bids shall be evaluated on an equal footing to ensure fair and
competitive bid evaluation.
4. In case of discrepancies between: (a) bid prices in figures and in words, the latter shall prevail;
(b) total prices and unit prices, the latter shall prevail; (c) unit cost in the detailed estimate and
unit cost in the bill of quantities, the latter shall prevail.
5. Those that comply with the abovementioned requirements shall be ranked in the ascending
order of their total calculated bid prices, as evaluated and corrected for computational errors,
discounts and other modifications, to identify the LCB.
6. After all bids have been received, opened, examined, evaluated and ranked, the BAC shall
prepare the corresponding Abstract of Bids.
6. Post Documents submitted by Who Lowest
qualification the Bidders 1. The BAC Calculated
2. The TWG; Responsive Bid
3. The BAC Secretariat / Procurement Unit; and Approved
4. Bidder with the LCB. Documents
WHEN: 7 calendar days when Lowest Calculated Bid is already determined
Exception: Head of Procuring Entity may extend not more than 30 days upon special cases
like elaborate testing of equipments from abroad

WHY: To verify, validate and ascertaine all the statements made and documents submitted by the
bidder with the LCB.

HOW:
1.The documents of Bidder with lowest calculated bid will be challenged until its acceptance.(
WHO: BAC/TWG, Bidder)
2. Site inspection will be done in the bidder’s place of infrastructure.( WHO: BAC/TWG)
3. Inquires about the bidder’s performance in relation with other contracts/transactions as
indicated in its eligibility statement( WHO: BAC/TWG)
4. If ever TWG made the post qualification, certain reports will be submitted to BAC for a review (
WHO: BAC/TWG)
5. Criteria of post qualification will be assessed. If ever passed, it will be declared as Lowest
Calculated Responsive Bid( WHO: BAC)
6. Upon declaration, The Secretariat with assistance of TWG and prepares BAC resolution of LCRB
and make a notice for the information of the post qualification( WHO: BAC Secretariat /
Procurement Unit)
 6. Approved documents of WHO: The bidder with
Contract Awards the bidder with the 1. Head of the procuring entity Lowest
lowest calculated 2. BAC Calculated
responsive bid (lowest 3. Procurement office Responsive Bid
calculated bid price) 4. BAC secretariat/Procurement Unit receives Notice
5. Bidder who submitted the LCRB of Award.
6. Observers
When: Within 80 calendar days from the date of bid but not exceed the bid validity period.
Note: If award cannot be made, the bid validity period should be extended.
Why: To notify the successful bidder that its bid has been evaluated and accepted.
How:
1) The BAC Secretariat consolidates all the documents of the proceedings of the BAC with regards
to the procurement at hand; and drafts the BAC Resolution Recommending Award.
2) The BAC approves and signs the RRA, and transmits to the Head of Procuring Entity.
3) The HOPE’s representatives acts on the recommendation for award within 7 calendar days
from the date of declaration of the LRCB; and 15 days for the government board to approve the
RRA.
4) In case of approval, the HOPE issues Notice of Award to the successful bidder. In case of
disapproval, HOPE state the reasons of disapproval.
The Bidder with LCRB/SCRB accepts the Notice of Award.
7. All documentary WHO: Signed
Signing of requirements and 1. Head of Procuring Entity Documents for
Contracts performance security 2. Procurement Unit/End User unit the approval
specified in IRR-A 3. Successful bidder and Issuance of
a) Contract agreement NTP.
When: Within 10 calendar days
b) Conditions of Contract
c) Drawings/Plans and
Why: To ensure that both parties of an agreement are compensated for their work, goods or
specifications
money.
d) Invitation to apply
eligibility and to bid
How:
e) Bidding documents
1. The winning bidder submits all the documentary requirements, including the performance
f) Supplemental bid
security, and signs the contract.
g) Two bidding
2. The procurement unit/office transmits the contract and it’s attachments to the budget
 envelopes office and Chief Accountant.
h) Eligibility documents 3. The procurement unit/office transmits the contract documents to the appropriate signing
i) Credit line authority.
j) Notice of Award
k) PERT/CPM approved
by the procuring
Entity

8. Signed documents and WHO: Eligibility of the

Approval of contracts 1. Procurement Unit bidder to
Contract and 2. Head of Procuring Entity proceed on
3. Winning Bidder implementation
Issuance of NTP
of contract.
When: 25 calendar days (approval) 3 calendar days (issuance of NTP)

Why: To issue the approval for the bidder to proceed on implementation of contract.

How:
1. The procurement unit transmits the contract and related documents for approval to the
approving authority.
2. The approving authority authorized a representative to act for the GOCCs and GFIs receipt.
3. If needs of higher approval, the HOPE transmits the contract to the appropriate approving
authority for reviewing.
4. The HOPE authorized representative to issue NTP (Note to Proceed)
9. Plans for implementation WHO: Execution of the
Contract 1. Procurement Entity plans of project.
Implementation 2. Contractor
for the When: After the issuance of NTP.
procurement of
goods and Why: To implement and execute the contract and plans.
services
WHAT:
Contract implementation covers the following:
 1. Effectivity of the contract
2. Contractor’s performance of its contractual obligations
3. Procuring Entity’s performance of its contractual obligations, as specified in the contract
4. Final acceptance or project sign-off
5. All other related activities and
6. Payment by the Procuring Entity.
10. Plans of project WHO: Structures
Warranty 1. Contractors without defects
2. Procurement Entity and failures
3. Consultant
4. Users
5. Third Parties
WHAT
A Warranty is required in the procurement of goods to ensure that the supplier, manufacturer or
distributor, as the case may be, will correct any manufacturing defect.

When: Defects liability period of 1 year after the completion of project up to the acceptance of
government.

Why: For the contractor to correct structural defects and failures of the projects

How:
1. After the final acceptance of the project by the government, the contractor shall be held on
the structural defects within the following periods, except those occasioned by force
majeure:
a. Permanent structure (15%)
b. Semi-Permanent (10%)
c. Other structures (2 years)
2. The contractor shall put up a warranty security in the form of cash, bank guarantee, letter
of credits, GSIS in accordance with the following schedule