FAQs 2013 On The Philippine Government Procurement Reform Act: Digital Edition (Unofficial)

Introduction
The FAQ E-Book Concept

This version of the Frequently Asked Questions (FAQs) on the Government Procurement
Reform Act (or Republic Act 9184 and its Revised Implementing Rules and Regulations)
is prepared by the Government Procurement Policy Board-Technical Support Office, an
attached agency with the Department of Budget and Management. This digital
content will be published in electronic format to reach as many procurement
professionals and partners as possible at short notice and at no cost to government. This
is meant to provide real answers to real questions from our various stakeholders and
partners, local and foreign, in various government, business, and civil society
organizations. This can be an effective tool in curbing corruption and generating more
transparency and accountability in the public sector and eventually create best
procurement practices among our partners in various local government units, national
government agencies; state colleges and universities; government-owned and
controlled corporations; government financial institutions, others.
In light of the lack of the newer versions of the FAQs and the proliferation of outdated1,
sometimes confusing interpretations of the various procurement laws, rules and
regulations; this version offers about 155 assorted questions and answers that may be
applicable to various procurement entities in various organizational set-ups. These are
based on official documents containing actual questions and answers (Q&A) from NonPolicy Matters published online at the GPPB website in 2013. We grouped all relevant
questions according to the outline of articles in the GPRA. We also benchmarked the
crafting of the document according to suggested standards in the internet.2 We wrote
the questions in simple English and with general application as possible without much
legalese that hopefully even a barangay official can understand. We made this userfriendly by including landing pages or URLs and key words per question. These are
written from the perspective of government procurement professionals in various Bids
and Awards Committees, BAC Secretariats; Technical Working Groups, and can even
be practical for Heads of the Procurement Entity in various levels in the Philippine
Government bureaucracy. This will be published online and made available for
download at the following websites gppb.gov.ph; scribd.com; and sent via email blast
directly to all GPPB-accredited trainers.
The following internet sites contain outdated contents prepared in 2005,2007 and 2010. These are a) On the IRR-A at the
Department of Public Works and Highways (2005)
http://www.dpwh.gov.ph/about_us/reforms/rimss/tambuli/2005/jul_sept_05/ra_9184.htm; b) Quennie Marie Aana. Frequently
Asked Questions about RA 9184 and Procurement Methods for WB-assisted Projects (As of 03-08-07)
http://www.scribd.com/doc/210080064/Frequently-Asked-Questions-About-RA-9184; c) Philippine Association of Government
Budget Administration. 11 August 2010. http://www.gppb.gov.ph/gppb-admin/news/FAQs.Bacolod.pdf
2
The concept and design used in drafting these FAQs on the GPRA are based on the key features mentioned by three (3) internet
sources. One writer suggests to keep them well organized, make sure they are actually frequently asked, write them using
customers language, think and share visually, plan for scanning, allow search, dont over-do it, create landing pages, and
customer focus. http://www.socialmediatoday.com/content/10-tips-creating-killer-faq-page. Another writer recommended to
include real frequently asked questions; keep it short and simple; collect, track, and analyze your users real frequently asked
questions; ask directly; show you care via a well-organized piece. http://alistapart.com/article/infrequently-asked-questions-offaqs. The third writer mentions the following organize your FAQs in sections; make them simple, skimmable, prominent; and
ensure that they reflect the questions your users really do ask frequently. The trick is to make it easy to skim, keep it short,
follow the right format, and stock it with questions people ask.
Frequently Asked Questions (FAQs) on the

Government Procurement Reform Act
(R.A. 9184 and Implementing Rules and Regulations)
October 26, 2014
Capacity Development Division

Government Procurement Policy Board Technical Support Office
Department of Budget and Management
Ortigas Center, Pasig City, Philippines
Abbreviations and Acronyms

ABC
APP
BAC
BDS
BOT
COA
COFILCO
Approved Budget for the Contract

Annual Procurement Plan
Bids and Awards Committee
Bid Data Sheet
Build-Operate-and-Transfer
Commission on Audit
Confederation of Filipino Consulting
Organizations, Inc.
CSC
Civil Service Commission
DA
Department of Agriculture
DBM
Department of Budget and Management
DBM-PS
Department of Budget and ManagementProcurement Service
DFA
Department of Foreign Affairs
DILG
Department of Interior and Local
Government
DND
Department of National Defense
DPWH
Department of Public Works and Highways
DV
Disbursement Voucher
E.O.
Executive Order
GAA
General Appropriations Act
GCC
General Conditions of Contract
GFI
Government Financial Institution
GOCC
Government-Owned and/or Controlled
Corporation
GPPB
Government Procurement Policy Board
GPPB-TSO Government Procurement Policy Board
Technical Support Office
GPRA
Government Procurement Reform Act
GSO
General Services Office
HOPE
Head of the Procuring Entity
HRB
Highest Rated Bid
HRRB
Highest Rated and Responsive Bid
IB
International Bidding
ICB
International Competitive Bidding
IFI
International Funding Institution
IPR
Intellectual Property Rights
ITB
Instructions to Bidders
ITR
Income Tax Return
JVA
Joint Venture Agreement
LC
Letter of Credit
LCB
Lowest Calculated Bid
LCRB
LCE
NGO
NOA
NFCC
NGA
NSO
NTP
PBDs
PCA
Lowest Calculated and Responsive Bid

Local Chief Executive
Non-Government Organization
Notice of Award
Net Financial Contracting Capacity
National Government Agency
National Statistics Office
Notice to Proceed
Philippine Bidding Documents
Philippine Constructors Association,
Incorporated
PCAB
Philippine Contractors Accreditation Board
PCAB
Philippine Contractors Accreditation Board
P.D.
Presidential Decree
LGC
Lowest Calculated and Responsive Bid
LGU
Local Government Unit
LOI
Letter of Intent / Letter of Instructions
LTO
Land Transportation Office
MOOE
Maintenance and Other Operating Expenses
PhilGEPS Philippine Government Procurement Electronic
System (also G-EPS)
PICE
Philippine Institute of Civil Engineers
PICPA
Philippine Institute of Certified Public
Accountants
PMO
Project Management Office
PPMP
Project Procurement Management Plan
QBE
Quality Based Evaluation
QCBE
Quality Cost Based Evaluation
R.A. 9184 Republic Act No. 9184, otherwise known as
the Government Procurement Reform Act
RFP
Request for Proposal
RFQ
Request for Quotation
SBD
Standard Bidding Documents
SCC
Special Conditions of Contract
SCRB
Single Calculated and Responsive Bid
SEC
Securities and Exchange Commission
SOW
Scope of Work
SRRB
Single Rated and Responsive Bid
SUCs
State Universities and Colleges
SWA
Statement of Work Accomplished
TOR
Terms of Reference
TWG
Technical Working Group
WB
World Bank
Foreword
This Fourth Edition of Frequently Asked Questions (FAQs) is intended for various
procurement and development partners of the Government Procurement Policy Board
and the Department of Budget and Management who have been clamoring for an
updated version. They can now obtain practical and accurate answers to an array of
questions that may arise in connection with the provisions of the Government
Procurement Reform Act (Republic Act 9184 and its related Implementing Rules and
Regulations). A digital copy is freely available for download from our website at
www.gppb.gov.ph; these can be read in various media platforms anywhere, anytime.
Hopefully, this will be a convenient medium for making our good public procurement
practices in the Philippine bureaucracy better.
The questions and answers, based from the 138 written correspondences received in
2013 that were also raised during trainings and consultations with stakeholders and
partners, are now grouped according to the GPRA outline. Considering that all current
FAQs on public sector procurement in the Philippines that are available in the Internet
are unofficial, outdated and mostly based on old procurement rules and regulations,
this recent publication will offer real answers to frequently asked questions from trainers
and procurement practitioners. The answers are direct to the point and written in simple
language for easy reading and comprehension. We have also included keywords, URLs
or online links for easy reference.
We invite the readers to consult for further details the main Handbook on Philippine
Government Procurement (GPRA), Sixth Edition 2012 which includes the Revised IRR on
R.A. 9184 and latest GPPB Issuances to which this section or specific non-policy matter
(or NPM) refers to.
Preface
This is the most recent publication on the intricacies associated with public
procurement rules in the Philippines in electronic or digital format. This fourth version of
the FAQs (Frequently Asked Questions) on the GPRA is based on actual queries sent
and received by the Government Procurement Policy Board-Technical support Office
in 2013. This will be very useful for our good governance partners those from the public
sector, the private sector and from the civil society.
Of the 138 written queries we received, 101 came from those in the public sector (81
National Government Agencies (NGAs), 8 State Universities and Colleges (SUCs), 12
Local Government Units (LGUs), 30 Private Sector companies and Law firms, 6 private
individuals and 1 civil society organization (CSO) or non-government organizations
(NGO). We excluded phone-in queries because these were neither recorded nor
tracked in our office database; this version relied solely on the printed content,
specifically, non-policy matters that were published on our website and subsequently
mailed to senders.
We included the use of keywords and URLS to better guide readers in getting very
direct answers to their very specific questions as fast as possible. The questions in this
version are written to present common issues or discuss concerns as general as possible
rather than provide agency-specific questions and answers. The reader is invited to
refer to the online version being referred for clarity. The answers and questions in this
fourth version are published on the basis of facts and particular situations presented in
the Non-Policy Matters and may be applicable to some situations.
We made every effort to make these FAQs as informative as possible; if you have any
suggestions as to how it may be improved, please feel free to email us at
training@gppb.gov.ph.
October 2013
Table of Contents
Abbreviations and Acronyms .............................................................................................................. 2
Foreword .................................................................................................................................................... 3
Preface ....................................................................................................................................................... 4
Questions and Answers (Q&A)............................................................................................................. 6
I
General Provisions ....................................................................................................................... 6
II
Procurement Planning................................................................................................................ 8
III
Procurement by Electronic Means ......................................................................................... 9
IV Competitive Bidding .................................................................................................................... 9

V
Bids & Awards Committee ........................................................................................................ 9
VI
Preparation of Bidding Documents ................................................................................. 13
VII
Invitation to Bid ...................................................................................................................... 18
VIII Receipt & Opening of Bids ...................................................................................................... 20

IX
Bid Evaluation ......................................................................................................................... 25
Post-Qualification....................................................................................................................... 26
XI
Award, Implementation & Termination of the Contract ............................................ 28
XII
Domestic & foreign Procurement .................................................................................... 32
XIII
Bidding of Provincial Projects ............................................................................................. 32
XIV
Lease of Computers, Communications, Information and other Equipment ........ 32
XV
Disclosure of Relations .......................................................................................................... 32
XVI
Alternative Methods of Procurement .............................................................................. 33
XVII
Protest Mechanism ............................................................................................................ 37
XVIII
Settlement of Disputes ...................................................................................................... 38
XIX
Contract Prices & Warranties ........................................................................................... 39
XX
The Government Procurement Policy Board ................................................................. 41
XXI
Penal Clause ........................................................................................................................... 41
XXII Civil Liability................................................................................................................................ 41

XXIII Administrative Sanctions ......................................................................................................... 41
XXIV
Legal Assistance and Indemnification to BAC Members ....................................... 41
XXV
Final Provisions..................................................................................................................... 41
Guide to Questions and Topics ......................................................................................................... 42

Annex A - Questions Received Per Topic ....................................................................................... 52
Annex B
2013 Questions per GPRA Article................................................................................... 52
Annex C
2013 Questions According to Various Publics........................................................ 52
Questions and Answers (Q&A)

I
General Provisions
Should the provisions of R.A. 9184 and its revised IRR apply to the
privatization of the distributions system through a lease concession agreement
between a government agency & private sector entities? [60] (Abejo Waters
1. Q -
Corporation; PEZA.)
A - No. Section 4.4 of the IRR of RA 9184 states that it shall not apply to activities involving
public-private sector infrastructure or development projects and other procurement
covered by RA 6957, as amended by RA 7718, except those portions financed by the
government. Furthermore, the lease concession agreement involves operation,
maintenance and improvement in the distribution system in MEZ by MECO, subject to
revenue sharing, turn-key agreement, and distribution of assets to PEZA, including the
residual value of fully depreciated assets, upon expiration or termination of contract, without
expenditure of public funds on the part of PEZA.
http://www.gppb.gov.ph/opinions/view_nonpolicy.php?id=980
Can a bidder be disqualified for failing to present proof of its compliance to

Section 14 of DOLE DO No. 18-A? [29] (Bukidnon State University)
2. Q -
A - Yes. RA 9184 and its IRR mandate that all bidders interested to participate in government
procurement should comply with existing labor laws and standards. Section 25 of the IRR of
R.A. 9184 supports the enforcement of labor laws and social legislation by requiring bidders
to submit a sworn statement, which includes among others, a statement that they comply
with labors laws and standards.
3. Q - Will
(BIR)
the provisions of R.A. 9184 apply to the selection of a concessionaire?[50]
No. Transactions where a government agency leases out its real property for private use,
such as in the case of a canteen or food concessionaire e.g. for the Executive Lounge of BIR,
are governed by Executive Order 301, Series of 1987 and its associated guidelines, not R.A.
9184.
Will the provisions of RA 9184 apply to partnerships between a national

government agency and private sector entities for the provision of an integrated
package of support services? [58] (DAR).
4. Q -
A - No. The GPRA does not apply to partnerships between a national government agency
and private sector entities for the provision of an integrated package of support services for
Agrarian Reform Beneficiaries is not within the ambit and coverage of RA 9184 and its IRR but
under Section 5.7 of the Guidelines and Procedures for Entering Into Joint Venture
Agreements Between Government and Private Entities.
Can engineering services be included in the same general support services

category like Janitorial and Security Services? Will the provisions of RA 9184
apply to the selection of engineering services for a multi-year contract? [82] (CCP)
5. Q -
A - Yes. Goods, as defined in RA 9184, refer to general support services, including nonpersonal and contractual services, and related and analogous services. This definition
broadly covers all kinds of similarly natured services that are essential to the operation of the
procuring entity. Moreover, general support services, according to the Revised Guidelines on
the Extension of Contracts for General Support Services, is understood to include those
services that are essential, indispensable or necessary to support the operations of the
procuring entity or for the enhancement of the welfare of its personnel, including nonpersonal or contractual services. It can be deduced that engineering services for the
maintenance of the offices and facilities may be considered as within the contemplated
coverage of general support services, in the same venin as are services for janitorial and
security.
Will the provisions of RA 9184 apply to the selection of engineering services

for a multi-year contract?
Q-
A - No. Please refer to DBM Circular Letter No. 2004-12, which identifies the requirements for
the engagement of services on a multi-year basis by national government agencies, can be
adhered to for proper guidance on the issue.
Is it appropriate for a local government unit to extend its ongoing contracts

for its current general support services that are about to expire without having
substantially undertaken activities for its procurement, citing non-enactment of
annual fiscal budget? [105] (Pasay City Government)?
6. Q -
A - No. Section 4 of the Guidelines provides the conditions that procuring entities must
comply with in order to be able to extend the duration or effectivity of contracts that are
about to expire viz. a) that the procuring entity must have substantially undertaken the
procurement activities required prior to award of the new contract i.e. pre-procurement
conference, advertisement/posting of the invitation to Bid, pre-bid conference, submission
and receipt of bids, opening and evaluation of bids, and post qualification; b) that the
extension is undertaken due to circumstances beyond its control and the PE cannot award
a new contract within a month after the expiration of the original contract.
7. Q - Can encoding be considered as part of General Support Services? [127] (DOTC).
A - Yes. In the Revised Guidelines on the Extension of Contracts for General Support Services,
the term "general support services" is understood to include those services that are essential,
indispensable, or necessary to support the operations of the procuring entity or for the
enhancement of the welfare of its personnel, including non-personal or contractual services.
Can a group of PEs jointly procure bullet-resistant vehicles for their key
officials? [131] (Supreme Court).
8. Q -
A - No. The concept of a multi-agency joint procurement that will be conducted, using the
creation of a Special BAC composed of officials from various procuring entities, will run
counter to the provisions of RA 9184 and its IRR. Negotiated Procurement is recommended
via Section 53.6 of the IRR of RA 9184 to address the objective of attaining the advantages
from bulk procurement.
9. Q - Should we apply the Guidelines on Non-Governmental Organization Participation in
Public Procurement (Guidelines) in the selection of NGOs to undertake Priority Development
Assistance Fund (PDAF) Projects endorsed to NGAs? [137] (DA).
A - Yes. The DA is required to apply the provisions of the Guidelines in the selection of NGOs
to undertake PDAF projects endorsed by legislators if it is considered the procuring entity for
the project that is funded through an earmarked amount that will be specifically contracted
out to NGOs provided in an appropriation law or ordinance.
10. Q - Should the GPPB determine whether a mixed procurement project is infrastructure or
goods? [138] (NEDA).
A - No. The nature of a mixed procurement shall be determined by the procuring entity
based on its identified primary purpose of the project, not the GPPB.
11. Q - Is GPPB authorization required for a Provincial Government to procure essential supplies
in Cebu or Metro Manila via Negotiated Procurement as an emergency case and extend
contracts for another twelve months? [107] (Leyte Provincial Government).
A - No. Prior GPPB approval is not required for an LGU to resort to negotiated procurement
unless the ABC amounts to PHP 500M per E.O. No. 423, Series of 2005. Also, Section 48 of RA
9184 and its IRR provide that subject to the prior approval of the HOPE, upon favorable
recommendation of the BAC, and whenever justified by the conditions provided therein, the
PE may, in order to promote economy and efficiency, resort to any of the recognized
alternative methods of procurement. Likewise, no GPPP approval is required for contract
extension of General Support Services. Section 5 of said guidelines provide that contract
extension is allowed only with prior approval of the HOPE and upon recommendation by the
BAC. Please see the Revised Guidelines on the Extension of Contracts for General Support
Services issued by the GPPB through Resolution No. 23 -2007.
II
Procurement Planning
1. Q - Can we enter into a five-year contract with a septage treatment and disposal company
pursuant to the provisions of RA 9184? [130] (Laguna Water District)
A - Yes. Procuring entities may procure and enter into multi-year contracts, subject to
applicable rules and regulations governing multi-year obligations. As such, LWD is urged to
first verify if it is allowed to enter into multi-year contracts under DBM Circular No. 2004-12 or
whether its governing board is authorized to enter into multi-year contracts under its
enabling law or corporate charter. In the event that the confirmation yields a negative result,
we propose that the contract be procured on a yearly basis. LWD is also suggested to
inquire with DBM for an authoritative and definitive interpretation of the applicability of its
circular to LWD.
III
1.
Procurement by Electronic Means

Q - Should we allow the manual submission of tax returns or through the electronic filing and
payment system pursuant to the provisions of RA 9184? (EFPS) [1] (PAF)?
A - Yes. We can allow the bidders the option to submit tax returns filed either manually or
through the EFPS by specifying such alternative in the BDS. In the absence of a provision in
the BDS or a failure to specify the option for the bidder to submit tax returns filed manually,
bidders must submit tax returns filed through EFPS.
2.
Q - Is it mandatory to register with the PhilGEPS? [34] (PHILCOA)

A - Yes. It is mandatory. The requirement for manufacturers, distributors and contractors
and/or consultants to register with PhilGEPS under section 8.5.1 of the IRR of RA 9184 is
absolute. Hence, compliance with this requirement is mandatory regardless whether the
cost of procurement is more than or less than fifty thousand pesos (Php 50,000.00)
3.
Q - Is it mandatory to post supplemental/bid bulletin in PhilGEPS? [121] (MIAA)

A - Yes. The PE is mandated to post the supplemental/bid bulletin in the PhilGEPS website
such that failure to do so amounts to failure to follow the prescribed bidding procedures.
IV Competitive Bidding
1. Q - Is it within the authority of a government agency to plan to procure printing services of
some of its forms through public bidding? [62] (APO Production Unit)
A - YES. The SSS has the authority to identify whether SSS forms RS5 and R6 are considered
accountable forms and therefore subject to the Guidelines on the Procurement of Printing
Services. If it determines that said forms are not accountable forms as defined in the
Guidelines, printing services for its procurement may be engaged through competitive
bidding.
Bids & Awards Committee
1. Q - Can the Procurement Entity create a separate BAC? [4] (MWSS)

A - Yes. Section 11.1.1 of the IRR of RA 9184 provides that each Procuring entity (PE) shall
establish in its head office a single BAC to undertake the functions specified in Section 12 of
the IRR in order to facilitate professionalization and harmonization of procedures and

standards.
2. Q - Can it grant honoraria to members of the BAC, BAC Secretariat and TWG for successfully
completed procurement projects? [4] [MWSS].
A - Yes. The DBM Budget Circular (BC) No. 2004-5A, as amended by BC No. 2007-3, allows the
payment of honoraria to members of the BAC, BAC Secretariat and TWG for successfully
completed procurement projects. For AOMs, better seek opinion from COA and the DBM Organization, Position Classification and Compensation Bureau (OPCCB) to make
determinations and/or clarifications on the matter involving grant of honoraria.
3. Q - May honoraria be granted on the basis of successfully completed procurement projects
using negotiated procurement? Does the phrase successfully complete procurement
projects refer only to completed open or public bidding projects? Is competitive bidding not
observed in alternative modes of procurement? [ 59] (OPCCB/DBM).
A - Yes. Honoraria may be granted on the basis of successfully completed procurement
projects awarded through competitive bidding, limited source bidding or negotiated
procurement under two-failed biddings except when the award was made through any of
the alternative modes of procurement which do not involve competitive bidding.
4. Q - May the BAC be paid honoraria for a successfully re-bid project even after members
have already claimed honoraria on basis of previously awarded items? [108] (MUST)
A - No. The BAC may only claim honoraria once all items have been successfully awarded
and those subject to re-bidding belong in the same procurement project that is identified,
described, detailed, scheduled and budgeted for in the procuring entitys PPMP. However, if
the items constitute different and separate procurement projects, then the BAC shall be
entitled to honoraria for every procurement project it has successfully completed but shall
not exceed the rates and limits prescribed in Sections 5.3 and 5.4 of BC 2004-5A.
5. Q - Is the BAC required to invite Observers during post qualification stage of the procurement
process? [05] [PICE-Zamboanga].
A - Yes. Section 13 of RA 9184 expressly states that the BAC shall in "all stages of the
procurement process" invite Observers to sit in the proceedings. Observers sign as witnesses
in the post-Qualification Summary Report if in their independent observation, the BAC
followed the procedure described in the IRR of RA 9184 and that they are amenable to the
results of the post-qualification. If the observer finds the procedures irregular or the report
does not match actual findings, he shall state in writing through submission of an observers
report addressed to the BAC Chair, and the same shall be attached to the Post-Qualification
Summary Report submitted to the approving authority.
6. Q - Does the no contact rule mean also that a bidder may not submit information that may
affect the qualifications of any bidder or the winning bidder and that the BAC cannot
entertain such communication even if it does not pertain to bid submitted by the bidders?
[07] (Atty. Valencia-Bala).
10
A - The no contact rule applies only to those whose bids are being evaluated by the BAC
after passing the preliminary examination of bids. Also, until a decision to award a contract is
made by the BAC through the issuance of a Notice of Award, no communication should be
made by bidders whose bids are being evaluated to veer away from perceptions of bias or
favor.
Q - Should the BAC validate and verify competence of each qualified and/or winning bidder
in the event that it is provided information on the poor performance and track record of the
winning bidder?
A - Yes, the PE, through its BAC, as stated in NPM 127-2012, is in the best position to determine
the truthfulness and authenticity of allegations made by a bidder against another bidder.
The BAC should verify, validate and ascertain the documentary requirements of the bidder
to determine if it is legally, technically and financially capable to undertake the project. .
Q - Should the information submitted regarding the winning bidders past projects should be
of the same nature as that of the project being bid out by the PE in order to be considered in
validating and verifying the bidders qualifications?
A - No. The nature of the project to be bid out does not have to be of the same nature as
the past projects of the bidder to necessitate the need for the BAC to verify, validate and
ascertain the bidders legal, technical, and financial capabilities during post qualification.
However, such information should be material in determining the bidders qualifications.
7. Q - Can the Chair or member of the BAC who previously evaluated a bid proposal be
allowed to be the approving authority for the exact bid proposal after being designated as
OIC-HOPE? [14] [DILG]
A - No. Section 11.2.5 of the IRR of RA 9184 is clear and categorical in providing that in no
case shall the HOPE and/or the approving authority be the Chairman or a member of the
BAC. The prohibition is intended to avoid any conflict of interest between the person who
undertakes procurement and recommends the award of the contract and the one who
approves said transaction.
8. Q - Can separate BACS created by the HOPE of an SUC comply with the provisions of RA
9184?[26] (CSU)
A - Yes. Separate BACS can be created, organized based on geographical location of each
of the campuses and composed of at least five (5) but not more than 7 members, including
the Chairman.
9. Q - Can the HOPE appoint the Executive Assistant for Budget and Finance Concerns as a
provisional member of the BAC without violating Section 11.2.5 of the IRR on RA 9184? [32]
(DOTC)
A - Yes. Provided that the provisional member of the BAC is not the approving authority
disqualified under Section 11.2.5 of the IRR of RA 9184; and s/he possess all the qualifications
of a provisional member under Section 11.2.2(d) of the IRR of RA 9184.
11
10. Q - Can a Government-Owned and Controlled Corporation request a National Government

Agency to be its Procurement Agent? [38] (DBM)
A - Yes. Section 53.6 of the revised IRR of RA 9184 provides for Negotiated Procurement
(Procurement Agent) that may be resorted to by procuring entities which may not have the
proficiency or capability to undertake a particular procurement, as determined by the Head
of the Procuring Entity (HOPE) concerned. The PA engagement is available as an
alternative procurement modality upon the determination by the HOPE that the procuring
entity does not have the proficiency or capability to undertake a particular procurement.
The lack of capability is exhibited in instances when the procuring entity fails to or cannot
properly constitute a BAC due to lack of personnel as mentioned in our previous opinions. In
such case, the procuring entity may request other agencies of government to undertake
their procurement activities.
11. Q - Can the BAC Sec Head notarize the same contracts entered into by their agency as a
result of their successful procurement activities? [66] [DPWH]
A - No. It is not advisable for the BAC Secretariat Head be the same Notary Public who will
notarize the ensuing contract for the project. It is worthy to stress that questions, insinuations
and doubts on the execution of documents should be obviated at all times.
12. Q - Should all Bids be opened at the same time? [69] [MTC OPTO-MEDIC, Inc.]
A - Yes. In order to maintain the public character of a bid opening activity, the Bids and
Awards Committee (BAC) should open a reconsidered bid under the same circumstances as
it opened the bids that were not disqualified, i.e., upon a duly scheduled opening of bid with
proper notices to the concerned entities.
13. Q - Can we create separate BACs?[74] [PNP].
A - Yes. The Head of the Procuring Entity may create separate BACs if warranted by the
number and complexity of the items to be procured to expedite the procurement process
for practical intents and purposes. The BAC, composed of five (5) to seven (7) members
each, may be organized either according to (a) geographical location of the Project
Management Office or end user units of the P; or (b) by nature of procurement per section
11 of the IRR.
14. Q - Should we appoint someone occupying a permanent position as a BAC Chair? [95]
(MSU)
A - Yes. Provided that the person is occupying a plantilla position that is at least third ranking
within the organization structure of the agency and is not a designated approving authority
per section 11.2.2. of RA 9184 and its IRR. Having a "permanent" position in the agency
means occupying a plantilla position in the organization.
12
15. Q - Can we appoint the GMs Executive Assistant as BAC Vice Chair? [134] [PNR]
A - Yes. The EA of the GM may be appointed as BAC Vice-Chair provided that he possesses
all the qualifications as a regular member of the BAC under Section 11.2.2(b) or Section
11.2.2(c) of the Implementing Rules and Regulations (IRR) of Republic Act No. (RA) 9184, and
does not have an approving authority delegated unto him by the Head of the Procuring
Entity (HOPE).
VI
Preparation of Bidding Documents
1. Q - Can other documents be submitted in lieu of a recent tax clearance issued by BIR? [2}
(USEP)
A - No. Section 1 of E.O. No 398 (or Tax Clearance Form 17.4B) requires the submission of Tax
Clearance issued by the BIR to prove full and timely payment of taxes of all persons desiring
to enter into or participate in any contract with government. Tax Clearance as defined
under the BIR Revenue Regulations No. 3-2005 refers to the clearance issued by the Collection
Enforcement Division attesting that the tax payer has no outstanding Final Assessment Notice
and/or delinquent account. Also, the GPPB has issued Circular No. 02-2005 on 28 April 2005 to
enforce compliance to EO 398.
2. Q - Can the BAC accept a certification issued by the BIR that the Tax Clearance is being
processed to be released on a certain date, in lieu of the required Tax Clearance in Section
34.2 of the IRR? [6] (Intramuros Administration)
A - No. The submission of a Tax Clearance, which is a requirement under section 34.2. of the
IRR of RA 9184, is based on Executive Order No 398 that requires the submission of TAX
Clearance issued by the BIR to prove full and timely payment of taxes of all persons desiring
to enter into or participate in any contract with government. A certification stating that the
Tax Clearance is being processed and will be later released is not in compliance with said
provision. Tax Clearance as defined under the BIR Revenue Regulations No. 3-2005 refers to
the clearance issued by the Collection Enforcement Division attesting that the tax payer has
no outstanding Final Assessment Notice and/or delinquent account. Also, the GPPB has
issued Circular No. 02-2005 on 28 April 2005 to enforce compliance to EO 398.
Q - Can the BAC exercise discretion in extending the deadline for submission of Tax
Clearance on the basis of the BIR Certification?
A - No. Section 34.2 of IRR of RA 9184 is mandatory, and not discretionary. There must be
compliance with the documentary requirements enumerated in Section 34.2 of the IRR
before a bidder may be considered post-qualified.
Q - Can the BAC be exempted from strictly following the rule under Section 34.2 of the IRR on
the forfeiture of bid security and disqualification of bidder upon failure to submit the
requirement or a finding against the veracity of the documents?
A - No. Based on the same provision, the inability of the bidder to submit the requirement on
time or there is a finding against the veracity of the submitted documents, would necessarily
result to forfeiture and disqualification. The intention of the rule is clear, that is, to forfeit the
bid security and disqualify the bidder for failure to comply with Section 34.2 of the IRR. The
strict observance of Section 34.2 of the RA 9184 is mandatory and is not to the discretion of
the Procuring Entity.
13
3. Q - Can a bidder submit a Certification of Clearance in lieu of Tax Clearance? [21] [Alexis
Securiy Agency]
A - No. a Tax Clearance is required under Section 34.2 of the IRR, which is based on EO No.
398, of which Section 1 requires said Tax Clearance issued by the BIR to prove full and timely
payment of taxes of all persons desiring to enter into or participate in any contract with the
government. Tax Clearance is defined under BIR Revenue Regulations (RR) No. 3-2005 refers
to the clearance issued by the Collection Enforcement Division (CED) attesting that the
taxpayer has no outstanding Final Assessment Notice and/or delinquent account.
4. Q - Do we still require Tax Clearance for a JV Foreign Partner? [45] [PS/DBM)
A - Yes. EO 398 specifically requires the submission of Tax Clearance issued by the BIR. [PSDBM] A Delinquency Verification Certificate, Non-Resident Aliens Not Engaged in Trade or
business (NRANETB) or Non-Resident Foreign Corporations (NRFC) may be submitted as a form
of Tax Clearance for a foreign Partner in a joint Venture.
5. Q - Can a bidder be post-qualified for having submitted BIR Receipt in lieu of a Tax
Clearance? [48] (SSS)
A - No. The submission of a Tax Clearance under section 34.2 of the IRR of RA 9184 is
mandatory, and no substitute document, such as a BIR receipt for renewal of Tax Clearance,
shall be accepted. The Tax Clearance must be valid and existing at the time it is submitted to
the BAC and must be submitted within three (3) calendar days from receipt of the notice
from the BAC that the bidder has the LCB. Failure to comply with the requirement for the
submission of a valid Tax Clearance shall be ground for post-disqualification of the bidder.
6. Q - How do we compute for Positive Variation Order? [3] (Zamboanga City Mayor)
A - The positive (additive) variation order represents the amount of Extra Work Order or
Change Order resulting in an increase in the cost of the contract while negative (deductive)
variation order represents the amount of Change Order resulting in a decrease in the cost of
contract.
7. Q - Can a bidder authorize another entity, not the HOPE, to verify documents? [15] (NEDA)
A - No. Section 25.2 (a)(iv)(3) of the IRR of RA 9184 provides that the first envelope should
contain a sworn statement by the prospective bidder that it is authorizing the Head of the
Procuring Entity or his duly authorized representative to verify all the documents submitted.
The purpose of the statement is to authorize the PE to verify, validate and ascertain the
veracity and authenticity of the documents submitted for purposes of bid evaluation and
post-qualification. The rule is of clear and categorical nature and admits of no qualification.
8. Q - Can the BAC create a separate registry of suppliers? [16] (PNP).
14
A - Yes. Sections 23.4 and 24.4.3 of the revised Implementing Rules and Regulations (IRR) of
Republic Act (RA) 9184 clearly allows the BAC of a procuring entity to "maintain a registry
system using the PhilGEPS or its own manual or electronic system that allows submission and/or
recording of eligibility requirements simultaneously with registration. However, the prospective
bidders not included in the registry system used by the procuring entity, whether the PhilGEPS
or its own manual or electronic system, should not be precluded from participating in any
procurement opportunity, and be allowed to submit its Class A documents together with its
bid, prior to or during the deadline for the submission and opening of bids.
9. Q - Is it sufficient for joint venture partners to submit their respective individual Philippine
Contractors Accreditation Board (PCAB) License and registration in lieu of a joint PCAB
License? [17] (DepED)
A - No. To be engaged as a contractor, a joint license issued by PCAB pursuant to Section 38
of RA 4566, and not the PCAB license and registration individually issued to each joint venture
partner, must be submitted. The failure of the joint venture bidder to submit a Joint License
may be a ground for its disqualification despite submission of the individual licenses of each
joint venture partner.
Q - Can the discount to the bid price offered by the bidder using its Bid Form be considered
valid despite its non-indication in other documents of the bid?
A - Yes. Indicating an offer of discount in the Bid Form can be validly considered even though
the financial documents included in the bid do not contain or indicate any reference to such
discount. The bidders bid must be appreciated as a whole or in its totality to include all the
legal, technical and financial representations, submissions and proposals of the bidder.
Q - Will the aforementioned discount, if valid, be considered in the computation and ranking
of bid prices during the detailed evaluation?
A - Yes. Discounts offered through the Bid Form should be included and considered in the
computation and ranking of bid prices during the detailed bid evaluation.
10. Q - Can the PE specify a specific country of origin as part of the technical specifications? [22]
(Maxima)
A - No. The PE is precluded from requiring specific country of origin as part of the technical
specifications of the project. It should be based on the performance requirements and
recognized industry standards and not on the basis of country of origin.
11. Q - Can sole proprietorship experience be transferred to a corporation? [31] (HG-III
Construction & Development Corporation)
A - No. The sole proprietorships experience cannot be carried over to a new corporation,
even if the formers assets, personnel and other resources have been infused into the latter.
The latter is a corporation which has a separate and distinct juridical personality from the
former. A corporation is invested by law with a personality separate and distinct from the
personality of the owner of the enterprise while a sole proprietorship does not possess a
juridical personality separate and distinct from the personality of the owner of the enterprise.
15
12. Q - Is it acceptable to pay in personal check for Performance security? [35] [Hilongos
Municipality]
A - No. The submission of a Performance Security in the form of a personal check, not in the
required form, after the signing of the contract could be considered as a failure to post the
required Performance Security. Performance Security shall be in the form of cash or cashiers
check issued by a universal or commercial bank, bank draft/guarantee or irrevocable letter
of credit issued by a universal or commercial bank, surety bank callable upon demand issued
by a surety or insurance company, or any combination of the foregoing.
13. Q - Is improper marking of bids a ground for disqualification?[36] (Municipality of Asipolo)
A - Yes. The requirements on sealing and marking of bids are regarded as mandatory; failure
to observe the proper sealing and marking of bids may be a ground to disqualify a bidder.
Q - Can a bidder be disqualified if it is registered as a construction company but not a
supplier of vehicles?
A - Yes, the bidder can be disqualified if the BAC determines that the Mayors permit issued to
the construction company does not authorize it to engage in the business of supplying/selling
dump trucks.
14. Q - Can a procuring Agency require a Servicing Agency to post a performance security?
[37] (PITC Pharma)
A - Yes. The Implementing Guidelines on Agency-to-Agency Agreements (Guidelines), which
describes the conditions when a government agency may procure from another agency
without need of public bidding pursuant to Section 53.5 of the IRR of RA 9184, provides under
Section 5(c) thereof that the Procuring Agency may require the Servicing Agency to post a
Performance Security under Section 39 of RA 9184.
15. Q - Is there a substitute document to a Mayor's Permit for a foreign bidder? [42] [Philcox Phils
Inc.]
A - Yes. Section 23.1(a) (ii) of the revised IRR of RA 9184 requires the submission of Mayor's
Permit issued by the city or municipality where the principal place of business of the
prospective bidder is located. However, in the case of a foreign bidder, the Class "A" eligibility
documents may be substituted with the appropriate equivalent documents, if any, issued by
the country of the foreign bidder concerned. The BAC is duty bound to verify, validate and
ascertain during the post-qualification stage that the Certificate of Incorporation of a Private
Company submitted by the bidder is indeed an equivalent document in lieu of a Mayors
permit.
Q - Are contracts for delivery of air navigation equipment considered similar contracts for
delivery of sea navigation equipment?
A - Yes. A contract shall be considered similar to the contract to be bid if it involves goods
or services of the same nature and complexity as the subject matter of the project being
procured. Similarity of contract should be interpreted liberally in the sense that it should not
refer to exact parallel, but only to an analogous one of similar category. This requirement
should not be interpreted strictly as to unreasonably limit competition and inequitably bar
participation of capable suppliers, manufacturers, distributors, and service providers; much
16
more to constrain the PE in the performance of their constituent and ministrant functions. The
BAC is in the best position to determine whether contracts of a bidder may be considered
similar to be bid based on the nature and complexity of the project being bid out.
16. Q - Do we pay fees for bidding documents of a re-bidding? [68] (MIESCOR)
A - Yes. The fees allowed to be charged pertain to the sale of bidding documents, and not
for participating or submitting a bid. Consequently, it is neither precise nor proper to refer to
the fee for the sale of bidding documents as a "bidding" or "filing" fee.
17. Q - Will I be disqualified for having submitted an inaccurate bid and does not comply with the
quantity stated in the Bill of Quantities issued by the PE? [78] (NHA)
A - Yes. Clause 15.2, Section II, Instructions to Bidders of the PBDs for Goods and Infrastructure
Projects provides that a bidder should be disqualified in the event that the quantity of an item
in his submitted bid is inaccurate or does not comply with the quantity stated in the Bill of
Quantities issued by the Procuring Entity.
18. Q - Can domestic preference certification be included as an additional eligibility document?
[79] (NFA)
A - No. Certification by the bidder claiming preference as a Domestic Entity or Domestic
Bidder cannot be required as an additional eligibility document as this is not among the
eligibility documents enumerated under the IRR of RA 9184. Such Certification, however, is
submitted as part of the Second Envelope (Financial Bid Envelope) if a bidder intends to
claim preference as a Domestic Entity or Domestic Bidder.
19. Q - Will my bid be considered responsive if there are nor prices indicated in the columns for
Material and Labor although 0 (zero) is indicated in the Total column in the Bill of
Quantities? [80] AQA Global Construction Inc.)
A - No. A bid that does not provide all the required items or where no price is indicated in the
Material and Labor columns in the Bill of Quantities shall be considered non-responsive,
and the bidder is automatically disqualified. While indicating a 0 (zero) or a - (dash) in the
Total columns in the Bill of Quantities means that the total items are being offered for free to
the government, leaving the Per Unit column for either Material or Labor columns blank
still makes the bid non-responsive, which will automatically disqualify the bidder.
20. Q - Should a bidder, a security agency, comply also with the minimum wage established by
the Regional Tripartite Wages and Productivity Boards (RTWB), not only with the PADPAO rates?
[91] (NTC)
A - Yes. Bidders who do not use the applicable minimum wage established by the Regional
Tripartite Wages and Productivity Boards (RTWB) in the computation of its bid, including its
PADPAO rates, shall be disqualified for non-compliance with labor laws and standards, and
the requirements under RA 9184 and its IRR.
17
21. Q - Can an affiliate/sister company of a blacklisted bidder also be considered as blacklisted?
[92] (DTI)
A - It depends. The applicability of a blacklisting order to the affiliate/sister company of a
blacklisted entity depends on the nature of the entity, as well as the extent of representation
of the latter in the former. The fact that an entity is an affiliate/sister company of a blacklisted
entity does not in and of itself a ground for the formers blacklisting. It has to be established
and determined by the PE per Section 2 of the Uniform Guidelines for Blacklisting of
Manufacturers, Suppliers, Distributors, Contractors and Consultants that the blacklisting entity
is a member or partner of its affiliate/sister company if the latter is a joint venture or
consortium, or that the blacklisted entity is a stockholder holding at least twenty percent
(20%) of the shares of the affiliate/sister company if the latter is a corporation.
VII Invitation to Bid
1. Q - With the advance identification of a supplier, is PhilGEPS posting a mere formality?
[33][Anonymous]
A - No. Non-conformity with the prescribed bidding process, including advertisement and
posting requirement would expose the responsible official to civil, administrative and/or
criminal liabilities without prejudice to other sanctions that may be imposed separately or
independently through other applicable laws. . In keeping mandate to monitor compliance
to IRR, the agency will refer matter to the OMB for appropriate action.
[Anonymous]
2. Q - Is the PE allowed to divide one project into two (2) lots without re-advertisement? [46]
(Romero Abiera & Romero Law Offices, DOTC)
A - Yes. It is not necessary for the PE to re-advertise the revised IB for the project as the original
IB that was advertised already provided necessary and relevant information that would
sufficiently notify the public of the procurement opportunity, including the relevant
components and the corresponding ABCs for each of these component; and, the Bid Bulletin
issued thereafter merely set to clarify that the DOTC intends to receive offers for each of the 2
components. In reiteration, clarifications or modifications to the Bidding Documents through
the issuance of Supplemental/Bid Bulletins by the procuring entity are sanctioned by the
procurement law and the associated rules and regulations without need of further readvertisement of the IB.
3. Q - Can a local government unit be allowed to accredit bidders and forego a pre-bid
conference for a foreign-funded project? [47] [COA]
A No. Considering that the project is governed by ADB Procurement Guidelines, the
provisions of RA 9184 and its IRR will not apply. But, it may deem proper to clarify the issues
raised with the LCE.
But within the context of RA 9184 and its IRR, no LGU is allowed to accredit bidders and to
forego a pre-bid conference for a project worth at least Php 1M.
18
First, the establishment of an accreditation system within the agency would limit the
participation of bidders only to those accredited suppliers, to the exclusion and prejudice of
other bidders in the market. Second, failure to conduct a pre-bid conference for the Project
(worth at least Php 1M) amounts to a violation of a mandatory provision of RA 9184 law,
which will render the procurement activity void under Article 5 of the Civil Code of the
Philippines.
4. Q - Can the PE ask for Additional Eligibility Requirement in the Invitation to Bid? [53] (Jodaar
Cottage Industries)
A - No. Procuring entities are proscribed from requiring additional eligibility requirements
because the list of minimum eligibility requirements has been streamlined/simplified such that
only those requirements enumerated in Sections 23.1, 24.1, and 25.1 of the IRR of RA 9184 are
necessary for purposes of determining a bidders eligibility.
5. Q - Is the PE allowed to modify or add to the conditions in the ITB? [102] (DA RFU)
A - Yes. Clause 20.3 of the PBDs for the Procurement of Goods provides that the original and
copies of the envelopes containing the technical and financial components of the bid shall
be signed by the bidder, but is silent whether the same should be done with the single
envelop where all the envelopes containing the original and copies of the technical and
financial components of the bid are enclosed. As such the instruction that all shall be duly
signed in the sealed overlaps or flaps by the bidder or duly authorized representative in order
to maintain integrity of the documents may be considered an additional information that
procuring entities may validly include in the invitation to Bid inasmuch as it is not contrary to
the provisions of the PBDs.
Is the Reservation Clause exercised exclusively by the HOPE?
A - Yes. Reservation Clause is a right exercised exclusively by the HOPE before an award of
contract is made in accordance to Section 37 of RA 9184 and IRR. It is the right to reject any
and all bids, declare a failure of bidding, or not award the contract in the following situations
a) there is prima facie evidence of collusion including any act which restricts, suppresses or
nullifies or tends to restrict, suppress or nullify competition; b) failure of the BAC to follow the
prescribed bidding procedures; or c) or any justifiable or reasonable ground where the award
of contract will not redound to the benefit of the government as defined in the IRR.
6. Q - Can a new firm with no AFS bid for an infra project? [103] (Windfall Construction)
A - No. The submission with eligibility requirements enumerated in Section 23.1(a)(v) of the IRR
of RA 9184, namely, (i) showing the prospective bidders current assets and liabilities, (ii)
stamped received by the BIR or its duly accredited and authorized institutions, and (iii) for the
preceding calendar year which should not be earlier than two (2) years from the date of bid
submission, is a mandatory requirement that must be complied with by prospective bidders,
such that failure to submit any of the documents or the submission of an otherwise
incomplete or patently insufficient document, will disqualify the bidder based on the nondiscretionary pass/fail criterion under Section 30.1 of the IRR.
19
7. Q - Can the PE extend the deadline for the submission and receipt of bids specified in the
Bidding Documents without issuing a Supplemental/Bid Bulletin? [122] (Alenia Aermacchi)
A - No. The PE cannot extend the tender closing time or the deadline for the submission and
receipt of bids specified in the Bidding Documents without issuing a Supplemental/Bid Bulletin
in accordance with Section 22.5.2 of the IRR. The PE can postpone or reschedule the
deadline for the submission and receipt of bids by issuing a Supplemental/Bid Bulletin
specifying the revised schedule for the procurement activity. Also, Section 22.5.2 of the IRR of
RA 9184 provides that supplemental/Bid Bulletins may be issued upon the PEs initiative for
purposes of clarifying or modifying any provision of the Bidding Documents at least seven (7)
calendar days before the deadline for the submission and receipt of bids.
8. Q - Is prior posting or advertisement required for a Pre-bid conference? [124] (Alenia
Aermacchi)
A - No. Notice for the date, time and place of the pre-bid conference is generally given
through the Invitation to Bid (IB) as specified in Section 21.1 (c) of the IRR of RA 9184. Any
additional pre-bid conferences not identified in the IB are considered modifications of the
Bidding Documents, which shall be communicated to prospective bidders through the
issuance of a Supplemental/Bid Bulletin in accordance with Section 22.5 of the IRR.
VIII Receipt & Opening of Bids
1. Q - Can we credit the past experiences of consulting corporations in favor of newly-formed
joint ventures, professional partnerships, or sole proprietorship? [40](DPWH)
A - No. The past experiences of consulting corporations cannot be credited in favor of newlyformed joint ventures, professional partnerships, or sole proprietorship. As provided in Section
24.5.3(a) of the IRR of RA 9184, in the case of new firms, the individual experiences of the
principal and key staff, including the times when employed by other consultants, may be
considered as part of the new firms' overall experience. In Section 33.2.2(b), the new
consulting services firm is the one taking advantage of the experiences of the individual
principal and key staff, and not vice versa.
2. Q - Is the owner/proprietor the only person allowed to represent the company/firm in all
bidding activities? [43] (Jodaar Cottage industries)
A - No. Section 25.2 of the revised Implementing Rules and Regulations (IRR) of Republic Act
(RA) allows the designation of a duly authorized representative and this privilege is available
not only to corporations, partnerships or joint ventures, but also to sole proprietorships.
3. Q - Can an NGA validly and legally procure the services of foreign consultants who entered
into a joint venture with local consultants as Independent Consultants for a project under the
Public-Private Partnership (PPP) regime? [44] (DPWH)
A - Yes. Foreign consultants who formed a JV with Filipino consultants could validly and legally
participate in the procurement for the Project under such JV vehicle for as long their
ownership or interest in the JV does not exceed forty percent (40%). Also, they can still be
20
hired, even without entering into a JV with Filipino consultants, provided that Filipino
consultants do not have the sufficient expertise and capability to render the services un the
project, as determined by the HOPE, subject to the following qualifications viz. a)SECregistered or any agency authorized by Philippine laws; b) authorized by the appropriate
GOP professional regulatory body to engage in the practice of professions and allied
professions when the types and fields of consulting services in which the foreign consultant
wishes to engage involve the practice of regulated professions; and that the limits of such
authority is strictly observed.
Q - Shall the provisions of RA 9184 and its IRR apply in the procurement of Independent
Consultants for a PPP Project?
A - Yes. Taking into account that the funding source is based on a 50-50 share between the
government and the winning concessionaire, it is RA 9184 and its IRR that will govern the
transaction as the procurement law and its associated rules apply to the procurement of
Infrastructure projects, Goods and Consulting services regardless of source of funds, whether
local or foreign.
4. Q - Can a prospective bidder which has been pre-qualified and eligible to bid may be
declared ineligible on bid opening? [54] [Caveat Law]
A - Yes. Pre-qualification is no longer recognized under RA 9184 and its IRR. The results of any
pre-qualification exercise have no legal force and effect, bearing or weight, and do not
preempt the findings of the BAC during the preliminary examination of bids conducted during
the opening of bids. Hence, a bidder may still be declared ineligible during the opening of
bids despite a finding of qualification during the purported pre-qualification exercise.
Although Section 30 requires that the preliminary examination of bids be conducted by
merely checking for the presence or absence of documentary requirements using a nondiscretionary pass/fail criterion, the BAC has the right to review the qualifications of a bidder
during the same stage if it has reasonable grounds to believe that a misrepresentation has
been made or there has been changes in the bidders capability to undertake the project.
5. Q - Can the submission of LOI from bidders be extended to coincide with the re-scheduled
bidding activities?[55] (Center for Health Development)
A - No. The revised Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184
have abandoned the requirement for the submission of LOI under Section 23.1 of IRR Part A of
RA 9184 prior to the submission of bids. The rationale for this change in policy is to streamline
the procurement process, reduce transactions costs, and enhance competition.
6. Q - Is the submission of LOI a requirement for participation in public bidding activities? [101]
(Bendimil Construction and Development Corporation)
A - No. The submission of LOI is no longer required for procurement activities. The provision
requiring submission of LOI for procurement activities where procuring entities use an
electronic registry were rendered unnecessary by the adoption of the said policy, and were
therefore deemed abandoned upon the effectivity of GPPB Resolution No. 27-2012 on 10
September 2013.
21
7. Q - Can the BAC declare a contractor as eligible despite the submission of a PCAB License
that is valid only after the date of the opening of bids? [71](QT Builders)
A - No. The documentary requirements must be "complete" and "sufficient", i.e. contain all the
information required, and must comply with the requirements set out in the bidding
documents at the time of the deadline for the submission of bids and bid opening. Also, a
valid PCAB license required as an eligibility requirement for the procurement of infrastructure
projects under Section 23.1 (a) (iv) of the revised IRR of RA 9184 should be valid at the time of
the deadline for the submission and opening of bids.
8. Q - Should the bidders Net Financial Contracting Capacity or NFCC equal the Approved
Budget of the Contract or ABC? [76] (V.G. Roxas Co., Inc.)
A - Yes. The bidders NFCC, a financial eligibility requirement which shows its financial
absorptive capacity to finance a project or projects, must be equivalent to the sum of all the
ABCs to which the bidder concerned participates in. (See Sections 23.5.1.4 and 23.5.2.6PM No
81-2012). But if the bidder chose to submit credit line commitment or (CLC), under section
23.5.1.4 and 23.5.2.6, it would have been required to submit one Credit Line Commitment
(CLC) per lots to at least ten percent (10%) of the total ABCs for each lot or project
participated in.
9. Q - Can a sub-contract within 10 years be credited to a bidders work experience? [77](RR
Gadingan Construction)
A - Yes. A sub-contract undertaken by a bidder within ten (10 years from the submission of
the bid may be credited as its work experience. Section 23.1 (a)(iii) of the revised IRR of RA
9184 does not limit the contracts that should be included in the statement of all ongoing and
completed contracts to those where the bidder is the principal or main contractor. In fact, it
can be inferred from the PBDs that sub-contracts should be included in the statement
together with the percentage of the bidders participation as a sub-contractor. Also, the 10year limitation under Section 23.5.2.5 of the IRR is no longer applicable per GPPB Resolution
No. 11-2012 published in the Daily Tribune on 20 August 2012.
10. Q - Is a design and build project experience requirement considered as separate contracts
i.e. one for design and another for construction? [81] (DOH)
A - No. A design and build project is an infrastructure project awarded as a single contract for
architectural design and construction. It involves two (2) components 1) the design or the
architectural/engineering aspect of the project; and 2) the construction or infrastructure
aspect of the project both of which are to be carried out by the winning bidder.
Consequently, the bidders are required to have experience both components of the project.
In practical terms, the technical requirements for the design and build contractor, (as solo or
in joint venture/consortia) should be able to comply with the experience requirement under
the IRR of RA 9184, where one of the parties (in a joint venture/consortia) should have at least
one similar project, both in design and construction, with at least 50% of the cost of the ABC.
22
11. Q - Is it mandatory for a bidder to attach proofs to its statement of on-going and completed
contracts during post qualification? [86] (DSWD)
A - Yes. Clause of 12.1(a) (iii), Section II. Instructions to Bidders, Philippine Bidding Documents
(PBDs) for the Procurement of Goods provides that the bidder should submit a statement of all
its on-going and completed government and private contracts within the period stated in the
Bid Data Sheet, including contracts awarded but not yet started. The statement shall include,
for each contract, the following information: (1) name of the contract; (2) date of the
contract; (3) kinds of Goods; (4) amount of contract and value of outstanding contracts; (5)
date of delivery; and (6) end user's acceptance or official receipt(s) issued for the contract, if
completed.
12. Q - Can an ICT project be considered as Mixed Procurement? [88] (BIR)
A - Yes. An ICT procurement consisting of different components involving goods, infrastructure
project or consulting service is regarded as a mixed procurement and the nature thereof is
based on the primary purpose of the contract, which must be determined by the PE based
on its identified needs and the best way by which these needs may be addressed, managed
and satisfied.
13. Q - Can the LCE/PE require prospective bidders to apply for business registration permits in
their locality as part of the qualification process? [97] [Inca Philippines, Inc.]
A - No. The LCE and PE cannot require the submission of documentary requirements for
purposes of determining a bidder's eligibility to participate in its procurement activities other
than those eligibility requirements provided in Sections 23.1 and 24.1 of the IRR of RA 9184.
Said provisions do not require prospective bidders to apply for business registration permit nor
require bidders to establish an office / satellite office in the LGU-procuring entity for purposes
of eligibility. Also, the PE cannot delete, replace or add to the requirements that are
applicable to the category of their procurement activity.
14. Q - Can projects where a NOA has been issued, but for which no contract has been signed
yet, should be included in the statement of all ongoing and completed government and
private contracts? [111] (Advance Solutions, Inc.)
A - Yes. Projects where a NOA has been issued, but for which no contract has been signed
yet, should be included in the statement required under Section 23.1(a) (iii) of the IRR of RA
9184 because these are already considered awarded contracts. Failure to include all
ongoing and completed contracts in the Statement may be a ground for disqualification for
being incomplete, and may also result in blacklisting if proven that such failure amounts to
submission of false information or false documents. The submission of the eligibility documents
enumerated in Section 23.1 of the IRR is a mandatory requirement that must be complied
with by prospective bidders, such that failure to submit any of the documents or the
submission of an otherwise incomplete or patently insufficient document, will disqualify the
bidder based on the non-discretionary "pass/fail" criterion under Section 30.1 of the IRR.
15. Q - Can the LCE adopt a shorter period for the deadline of submission and receipt of bids?
[115] (Malolos City Government)
23
A - Yes. The procuring entity may adopt a shorter period than that provided in Section 25.4 of
the revised Implementing Rules and Regulations (IRR) of RA 9184 for the deadline of
submission and receipt of bids. Thus, it is not necessary for the LCE/LGU to adopt the
maximum period of sixty-five (65) calendar days for its Project.
16. Q - Can a bidder participate in a public bidding even without a similar contract which is at
least fifty percent (50%) of the value of the contract to be bid out? [118] (Edro Construction]
A - Yes. Participation is allowed provided that the bidder is registered as a Small A or Small B
contractor and the public bidding where it is to participate has an ABC which is at least fifty
percent (50%) of the Allowable Range of Contract Cost (ARCC) of the same bidder.
Can the PE require the submission of a mayors permit other than that issued by the LGU where
the bidder holds its principal place of business?
A - No. The PE cannot require any other mayors permit as it would be an additional eligibility
requirement that is forbidden per Section 23.1 (a) (ii) of the revised IRR of RA 9184 which
provides that the bidder is required to submit, as part of its legal eligibility requirements, a
mayors permit issued by the city or municipality where the principal place of business of the
prospective bidder is located, not from the LGU conducting the procurement.
17. Q - Can one single largest completed contract (SLCC) may be considered for several lots for
compliance with section 23.5.1.3 of the revised IRR of RA 9184)? [123] (Nikka Trading)
A - No. For a procurement project that is divided into several lots, where each lot may result in
a separate contract, the ABC for each contract becomes the reference. And since the
eligibility criteria only seek to filter suitable bidders from those unfit to perform the contract, it is
not necessary for a bidder to present a corresponding SLCC for each lot that it participates in.
18. Q - Should bidders certify the bid documents as authentic? [133] [Odin Security Agency]
A - Yes. The bid documents should be stamped as certified true copies. Section 25.2(a) (iv) of
the revised Implementing Rules and Regulations (IRR) provides that a prospective bidder or its
duly authorized representative is required to submit a Sworn Statement in the form prescribed
by the GPPB, certifying under oath, among other things, that each of the documents
submitted in satisfaction of the bidding requirements is an authentic copy of the original,
complete, and all statements and information provided therein are true and correct.
19. Q - Can the PE limit the acceptable forms of bid security to only cash or cashiers/managers
check and bank draft/guarantee or irrevocable LC? [85][UP Manila]
A - No. The PE may not limit the acceptable forms of bid security to only cash or
cashiers/managers check, bank draft/guarantee or irrevocable LC, since to do so will be in
direct conflict with section 27.2 thereof of the IRR on RA 9184. If the bidder opts to submit a
BSD in lieu of forms of bid security, the PE must accept the same as the BSD is one of the
acceptable forms of security under the rules, provided that the BSD complies with the
required form.
24
Q - Can the PE allow a bidder to submit a combination of two (2) similar projects for
compliance with the required submission of at least one (1) similar contract that is at least fifty
percent (50%) of the ABC?
A - No. The PE cannot consider the aggregate amount of two (2) contracts as compliance
with the eligibility criterion on SLCC under Section 23.5.2.5 of the IRR of RA 9184 since it does
not give the PE the option to adopt a different criterion for eligibility other than those
available for Class A or Class B contractors.
Q - Can the PE define and identify what constitutes a similar contract in the Bidding
Documents for a project?
A - Yes. The PE has the authority to define and identify in the bidding documents for the
project what constitutes a similar contract that can be considered as having the major
categories or work similar to the contract to be bid. The PE is required under Clause 5.4 of the
Instructions to Bidders to indicate in the Bid Data Sheet for the Bidding Documents for the
Project, what contracts may be considered similar to the contract to be bid.
[No URL; Not available online]
IX Bid Evaluation
1. Q - Can the PE draw lots as a Tie-Breaking Method? [51] [Anonymous].
A - Yes. GPPB circular No. 06-2005 states that the Procuring Entity may employ a tie-breaking
method, such as draw lots or similar methods of chance, provided that the measure
determined by the PE shall be non-discretionary and non-discriminatory such that the same is
based on sheer luck or chance. It will be conducted after all the bidders that submitted the
lowest calculated bids are declared post-qualified.
[No URL. Not Available Online]
2. Q - Can the BAC open the bid of a reconsidered bidder? [69] [MTC OPTO-MEDIC, Inc.]
A - Yes. It is mandatory for the BAC to publicly open the bid envelopes of the reconsidered
bidder and to notify all interested parties, such as but not limited to the other eligible bidders
and observers, of the date, time, and place for the opening of bids. In order to maintain the
public character of a bid opening activity, the Bids and Awards Committee (BAC) should
open a reconsidered bid under the same circumstances as it opened the bids that were not
disqualified, i.e., upon a duly scheduled opening of bid with proper notices to the concerned
entities.
Q - Can the BAC delegate its functions?
A - No. The BAC cannot delegate its authority to open and examine bids preliminarily, which
was expressly vested upon it by RA 9184 and its revised IRR, to the BAC Secretariat.
3. Q - Can the PE disqualify a bidder for submitting documents deemed insufficient as to the
form and amount? [94] (Jose R. Reyes Memorial Medical Center)
A - Yes. The BAC, in line with its function of determining the eligibility of prospective bidders,
conducting the evaluation of bids and undertaking post qualification, is in the position to rate
bidders as having passed or failed in complying with the requirements in the Bidding
Documents in accordance with the provisions of RA 9184 and its IRR.
25
4. Q - Can the PE subject all bids that passed the bid evaluation to a functional test? [106] (PNP
National Headquarters Directorate for Logistics]
A - No. The practice of subjecting all bids declared as passed during the bid evaluation to a
functional test before the verification, validation, and ascertainment of the submitted
documents of the Lowest Calculated Bid (LCB) runs counter to the provisions of Section 32
and 34 of RA 9184 and its IRR.
5. Q - Can the PE sanction a bidder with the LCRB? [125] (OWWA)
A - Yes. The bidder with the LCRB who fails, refuses, or is unable to accept the bid price as
awarded and enter into a contract with the procuring entity shall be sanctioned by forfeiting
its bid security and imposing appropriate penalties as provided in the IRR and existing laws.
6. Q - Can the LCE apply the bidders offer of 5% Discount to bid price?[126] [Samal City
Government]
A - Yes. An offer of discount in the Bid Form can be validly considered in the computation of
the total calculated bid price. The total calculated bid will be determined by deducting five
percent (5%) from the bid price.
7. Q - Can the BAC round off the amounts indicated in bids into decimal places in bid
evaluation? [129] (Duty-Free Phils.)
A - Yes. In the absence of any instruction, the Bids and Awards Committee (BAC) may adopt
the generally accepted rules on the number of decimal places that will be maintained in
rounding off bid prices, and uniformly apply such rules in evaluating all the bids. Unless the
Bidding Documents require that bids should follow a specific number of decimal places for
bid prices, the differences in the number of decimal places will not render the bid incomplete
and non-responsive.
X
Post-Qualification
1. Q - Is Post-Qualification required for Repeat Order? [13](PNP - National Headquarters)

A - No. Repeat Order under Section 51 of RA 9184 does not require post-qualification
because the phrase "subject to post-qualification process described in the Bidding
Documents", as stated in the provision refers to Competitive Bidding and not to Repeat Order.
The fact that Repeat Order stems from a prior Competitive Bidding necessarily implies that the
winning bidder has been post-qualified since post-qualification forms part of the mandatory
procedures in the competitive Bidding process. Thus it would be redundant or superfluous to
post-qualify a bidder in the event a repeat order is made considering that it has been
previously post-qualified during the Competitive Bidding activity for the project.
2. Q - Can the PE compel bidders to submit or comply with requirements not initially provided in
the Bid Documents? [24] (Maxiair).
26
A - No. The PE cannot compel prospective bidders or the winning bidder to submit or comply
with requirements not initially provided in the Bidding Documents or through any
Supplemental/Bid Bulletin issued by the PE for the project that must be posted at the PhilGEPS'
and the PE's website.
Q - Will receipt of complaints from end-users be a ground for a bidders disqualification?
A - No. End-user complaint is not in itself a ground for disqualification. The technical
specifications stated in the Bidding Documents provide the basis for determining the
responsiveness of an offer such that in cases where the PE received complaints from endusers, the BAC is not prevented from verifying the complaints and eventually from postdisqualifying the bidder unless they confirm that the bidder is not legally, technically and
financially capable to complete the project based on such complaints.
3. Q - Can the PE post-disqualify a bidder for non-submission of additional documents?[25] (BSU)
A - No. The procuring entity may request for the submission of additional documents from the
bidder in support of the information it has provided in the bidding documents. However, nonsubmission of the additional supporting documents requested cannot be a ground for the
bidder's post-disqualification, as a bidder may be post-disqualified only upon ascertainment,
validation, and verification of its non-compliance with the legal, technical, and financial
requirements of the project as provided in the bidding documents.
4. Q - Can the PE extend the three calendar-day period for PQ requirements? [27] (DND)
A - No. The three (3) calendar-day period under Section 34.2 of the IRR is mandatory and
should not be extended. In case the PE accepts the post-qualification documentary
requirements beyond the reglementary period, it must show that there is a compelling,
sufficient, valid, reasonable, and justifiable cause for such extension, so that penal sanction or
liability will not set in. However, that applicable administrative and civil sanctions or liabilities
may still be imposed against the concerned officials.
4. Q - Can the PE exceed the thirty calendar day-period of post qualification and the threemonth maximum procurement period? [57] (DepED)
A - No. The extension of mandatory periods under the IRR of RA 9184, including the allowable
extensions recognized by the law and rules, is forbidden. Should the PE decide to extend the
same; it must show and provide compelling, sufficient, valid, reasonable, and justifiable cause
for such extension. Such valid justification, however, will only free officials from penal sanction
or liability, but not from applicable administrative and civil sanctions or liabilities under existing
laws, rules and regulations.
5. Q - Should the PE seek GPPB Clearance to conduct post qualification?[114] (Government
Arsenal (GA) Department of National Defense)
A - No. First, the adoption of an internal procedure on the manner of conducting postqualification is well within the discretion and accountability of the procuring entity to
undertake, and does not need the clearance or authority from the Government Procurement
Policy Board (GPPB) as long as it does not run counter to the provisions of RA 9184 and its IRR.
27
6. Q - Can the PE create a Post-Qualification Team? [117] [Government Arsenal (GA)
Department of National Defense].
A - No. Neither RA 9184 nor its IRR provide for the establishment of a post-qualification team
that is separate and distinct from the BAC since the responsibility and authority of conducting
the post qualification is categorically delegated to the BAC under section 12.1 of the IRR of
RA 9184. Differently stated, the post-qualification team shall be the BAC, which can be
assisted by the Technical Working Group, and shall be responsible in determining the
compliance of the bidder with the Lowest Calculated Bid with all the requirements and
conditions specified in the Bidding Documents.
7. Q - Can the BAC declare a failure of bidding? [122] (Alenia Aermacchi)
A - No. The authority to declare a failure of bidding on the basis of BACs failure to follow the
prescribed bidding procedures belongs to the HOPE pursuant to Section 41(b) of the IRR of RA
9184. The BAC cannot declare a failure of bidding for reasons other than those provided in
Section 35.1 of the IRR of RA 9184, specifically, when (a) no bids are received, (b) all
prospective bidders are declared ineligible, (c) all bids fail to comply with all the bid
requirements or fail post-qualification, or, in the case of consulting services, there is no
successful negotiation, or (d) the bidder with the LCB or HRB refuses to accept the award. It
cannot exercise the reservation clause provided in Section 41 of the IRR in declaring a failure
of bidding since such authority is belongs exclusively to the HOPE.
XI Award, Implementation & Termination of the Contract
1. Q - Can the PE make Advance Payment for Infra Projects? [12] [Insurance Commission (IC)]
A - Yes. Advance payment not exceeding 15% of the contract price may be granted by
upon compliance with the requirements under Section 4 of the Guidelines. There is no conflict
between Section 88 of PD 1445 and the Guidelines concerning advance payment.
2. Q - Can the PE reflect the new minimum wage rates/adjustments in the original ABC prior to
the conduct of the second bidding? [18] [National Development Company (NDC)]
A - Yes. Section 35.2, 3 of the revised Implementing Rules and Regulations (IRR) of Republic
Act 9184 provides that whenever failure of bidding is declared the BAC shall conduct a
mandatory review and evaluation of the terms, conditions, and specifications in the bidding
documents, including cost estimates, in order to determine the reason for the failed bidding.
Prior to its second bidding, the PE may modify the ABC for its procurement of security services
to incorporate the new minimum wage rate/adjustment, subject to the necessary approval
process in changing the APP to reflect the revised ABC for the project.
3. Q - Can the PE recommend the award of contract to the bidder with the HRB if it failed to
submit a current and updated PhilGEPS registration certificate within three (3) calendar days
from its receipt of notice from the BAC? [19] [Iloilo Provincial Government]
A - No. The PE cannot recommend the award. Its belated submission of a renewed PhilGEPS
registration certificate does not cure the defect inasmuch as the mandatory and nonextendible period of three (3) calendar days within which to comply with the requirement has
already lapsed. The submission of a PhilGEPS registration certificate is required under Section
34.2 of the revised IRR, where the bidder with the LCB/HRB should submit, among others, the
28
PhilGEPS registration within three (3) calendar days from receipt of notice of award from the
BAC. It provides that failure to submit any of the requirements on time or a finding against the
veracity of the submitted documents shall be a ground for disqualification and forfeiture of
bid security.
4. Q - Does the GPPB Printing Guidelines apply to LGUs? [20] [Macrohon Municipality]
A - Yes. Section 4 of Republic Act (RA) No. 9184 mandates the application of the law (RA
9184) and its rules (revised Implementing Rules and Regulations) to all procurement activities
of any branch, agency, department, bureau, office, or instrumentality of the Philippine
government, including government owned and/or controlled corporations, government
financial institutions, state universities and colleges, and LGUs, all policies, rules, regulations,
and guidelines issued by the GPPB would have the same general application and
coverage. Also GPPB Resolution No. 04-2011 did not delete the policy declaration under
Section 1.2 of the Guidelines that printing of Accountable Forms and Sensitive High
Quality/Volume Requirements shall only be undertaken by the recognized government
printers. Said resolution merely amended Section 1.1 of the Guidelines to clarify that it shall be
applicable to succeeding GAA, unless a contrary or inconsistent policy is adapted in a later
GAA.
5. Q - Can the Guidelines on the Extension of Contracts for General Support Services apply to
the contract extension of janitorial services of a GOCC that is currently being privatized? [30]
[NPC]
A - Yes. The Guidelines allow the extension of ongoing contracts of general support services
which are essential, indispensable, or necessary to support the operations of the PE such as
Janitorial Services. This existing contract may be extended several times as long as the
aggregate extension shall not be more than one (1) year, subject to the conditions
enumerated in Section 4 of the Guidelines. But, if the personality of NPC-Angat Hydroelectric
Power Plant as a government agency has been transformed into a private entity, then the
procurement laws will no longer apply.
6. Q - Can the PE extend/renew the lease contracts to avoid disruption in the service delivery
and operations of its branch offices? If yes, how long should the extension be? [132] (PCSO)
A - Yes. The PE may extend the duration or effectivity of contracts of lease of office space
about to expire, for a period not exceeding one (1) year, as an emergency measure to
maintain status quo in its operations and to avoid interruption of such pursuant to the Revised
Guidelines on the Extension of Contracts for General Support Services.
Q - In the event of failure of bidding, is the PE allowed to renew extension until the time that a
contract is entered into?
A - Yes. In the event of failure of bidding for the new contract, the PE may further extend the
duration of the contract provided that the aggregate period of all extensions shall not
exceed one (1) year in accordance with Section 4.1 of the Guidelines. In addition, under
Section 5.2 of the Guidelines, if the proposed contract extension exceeds six (6) months, the
Head of the Procuring Entity shall immediately report to the Government Procurement Policy
Board (GPPB) through its Technical Support Office (TSO) in writing of the PE's intent to extend
beyond six (6) months.
29
7. Q - Is it proper for the PE to issue a variation order for the design and
construction/improvement project of the City Capitol Building considering that the NCCA
recommended its preservation of historic features was not included in the original contract?
[56] [Misamis Occidental Province]
A - Yes. Variation Order may be validly implemented provided that the Provincial
Government has established that Change Orders or Extra Work Orders are within the general
scope of the Project as bid and awarded, and are due to the change of plans, design, or
alignment to suit actual field conditions resulting in disparity between the preconstruction
plans used for purposes of bidding and the "as staked plans" or the construction drawings
prepared after the joint survey by the contractor and the government after award of
contract. The Manual of Procedures for the Procurement of Infrastructure Projects provides
that the addition/deletion of works should be within the general scope of the project as bid
and awarded, and the deletion of the work should not affect the integrity and usefulness of
the structure.
Q - Can Variation Order be interpreted to include major changes in the design as
conceptualized, bid out, and awarded?
A - Yes. Contract Implementation Guidelines for the Procurement of Infrastructure Projects
does not qualify whether the introduction or reclassification of work items includes major
changes in the design as conceptualized, bid out, and awarded. Section 1.1 thereof,
however, requires that the addition/deletion of works under Variation Orders should be within
the general scope of the project as bid and awarded.
Q - Can the contractor claim 15% mobilization fee pending the completion of the amended
contract?
A - No. Mobilization fee cannot be granted if the contractor has already mobilized its
equipment and has commenced with the required works under the contract, advance
payment can no longer be provided as doing so shall negate the very purpose of granting
such privilege to the contractor.
Q - Is it necessary for the Sangguniang Panlalawigan to authorize the contract?
A - Yes. In the case of Vergara v. Ombudsman, relying on Sections 22(c) and 455(b) (1) (vi) of
RA 7160, the Supreme Court held that "when the local chief executive enters into contracts,
the law speaks of prior authorization or authority from the Sangguniang Panlungsod and not
ratification." Accordingly, as long as there is prior clear and categorical authorization from the
Sangguniang Panlalawigan, the Provincial Governor may enter into contract for and in
behalf of the local government unit.
Q - Can the GPPB make a categorical declaration that the 2 components of the Project may
be made into 2 separate contracts?
A - No. The GPPB-TSO cannot, nor any other government agency, authority, or official,
encroach upon or interfere with the exercise of the functions of the BAC, since these duties
and responsibilities fall solely within the ambit of its authority as sanctioned by law. As such,
30
the PE, through its BAC, is in the best position to determine the details of its Project, and the
concomitant responsibility and authority to declare whether the two (2) components of the
Project may be made into two (2) separate contracts.
8. Q - Can the PE allow the whole scope of work (on slope protection) be deleted via Variation
Order? [84] (Zamboanga City Government)
No. It can be assumed that the program of work for the project pertaining to the slope
protection was assessed to be necessary and suitable to the actual field condition or else the
detailed engineering studies and assessment was not properly accomplished during the
project preparation stage.. A more detailed and in-depth analysis should be conducted to
determine the reasons and bases for the proposed positive and negative variation order.
Also, it is necessary for the PE to verify whether the claim was made within the applicable time
required under Section 1.5 of Annex E of the IRR of RA 9184. The contractor, in claiming for
any variation order, shall deliver a notice giving full and detailed particulars within twentyeight calendar days after the circumstances or reasons justifying the claim shall have
occurred or, within seven (7) calendar days in case the work is urgent to avoid detriment to
public service. Failure to provide notice shall constitute a waiver by the contractor for any
claim.
9. Q - Can the PE revoke the contract implementation for the second project due to intracorporate dispute and award the same to the next lowest bidder? [75] (Philippine Nuclear
Research Institute).
A - No. The issuance of the notice to proceed (NTP by the PE together with the approved
contract to the successful bidder within 3 calendar days from the date of approval of the
contract by the appropriate government authority is important. The PE should verify, validate,
and ascertain with the bidder, as the corporate principal, during the post-qualification stage,
whether the representative is duly authorized to act as agent and represent it in the
procurement activity. If it established that the representative has no authority to represent the
bidder, the PE may disqualify the bidder and revoke the NOA. On the other hand, if it has
been determined that the same representative has no authority to represent, but the
conditions for award have already been fulfilled, the PE should terminate the contract for
unlawful act following the procedures under the Guidelines on Termination of
Contracts. Conversely, if the representative has the authority from the Board, the contract
award and execution can proceed.
10. Q - Can the PE forego the issuance of a Notice to Proceed due to assigned Purchase Order or
Job Order? [87] (Bases Conversion and Development Authority)
A - No. The NTP shall be issued by the Procuring Entity (PE) together with a copy of the
approved contract to the successful bidder within three (3) calendar days from the date of
the approval of the contract by the appropriate government approving authority. The
contract effectivity date, as provided in the NTP, shall not be later than seven (7) calendar
days from its issuance.
11. Q - Is the Change of Project Site Venue after NOA Issuance allowed under RA 9184 and its
IRR? [90] [Philippine Science High School - Central Luzon Campus (PSHS-CLC)]
31
A - No. The change in the project site after the issuance of the NOA is not allowed under RA
9184 and its IRR. Modification of government contracts, after the same had been awarded
after a public bidding, is not allowed because such modification serves to nullify the effect of
public bidding and whatever advantages the Government had secured thereby and may
also result in manifest injustice to other bidders.
12. Q - Can the performance security of a winning bidder on the basis of a NOA be forfeited in
the event that the bidder has previously been issued a blacklisting order by another PE? [98]
(Philippine Health Insurance Corporation, Regional Office VIII)
A - No. The performance security posted by winning bidder (who is found to be blacklisted by
another PE) on the basis of the NOA issued in its favor by PhilHealth cannot be forfeited, but
should instead be returned in accordance with the principle of solutio indebiti under Article
2154 of the Civil Code of the Philippines. Per Section 39.1 of the IRR of RA 9184, the posting of
a performance security is required in order to guarantee the winning bidders faithful
performance of its obligations under contract. But considering that there is no contract
performance to guarantee in the first place, rather than forfeiture, the same may be deemed
to have been mistakenly posted and should thus be returned.
XII Domestic & foreign Procurement
XIII Bidding of Provincial Projects
XIV Lease of Computers, Communications, Information and other Equipment
1. Q - Is it proper for the PE to determine ICT project under General Support Services as Goods?
[11]BIR)
A - Yes. The PE can best determine based on its primary purpose, motivation and intention,
and on the nature of the contract, whether the procurement of ICT services may be classified
as Goods, Infrastructure Projects or Consulting Services. The PE should be guided by the
parameters and conditions in the relevant provisions of RA 9184 and its IRR on what should be
considered as Goods, Infrastructure Projects and Consulting Services procurement. The
procurement of lease/subscription of licenses/solutions; support and maintenance licenses;
maintenance of system/application falls within Goods category and the mixed procurement
can be considered as Goods based on the primary purpose of the PE.
XV Disclosure of Relations
1. Q - Is there a conflict of interest when the entity that prepared and made plans/drawings for
project, likewise participates in the bidding process for the same project? [10] (DA)
A - Yes. There is a conflict of interest when the entity that prepared the plans/drawings
likewise participates in the ensuing procurement activities of the project. The PBDs for the
procurement of Consulting Services identifies the existence of conflict of interest for any
previous or ongoing participation by the consultant, its professional staff, or its affiliates or
associates under a contract with the funding source or the Procuring entity in relation to the
Project. Clause 2.6 of the same document provides that fairness and transparency in the
selection process require that consultants do not derive unfair competitive advantage from
having provided consulting services related to the project in question.
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XVI Alternative Methods of Procurement

1. Q - Is it proper for the PE to resort to Limited Source Bidding or Lease-to-Own agreement in the
acquisition of a brand new utility motor vehicle? [63] (DA, Regional Field Office 2)
A - No. In order to apply LSB on the subject procurement, the PE should first establish that the
motor vehicle sought to be procured is either a highly specialized type of goods or a major
plant component; otherwise limited source bidding cannot be resorted to; in which case,
competitive bidding shall apply. The general rule in government procurement is through
competitive bidding. The alternative methods, as exceptions to the general rule, may be
resorted to only when contemplated procurement satisfies the strict conditions laid out in
Article XVI of RA 9184 and its IRR. Section 49 of the IRR provides that LSB may be resorted to
only under two possible conditions: a) procurement of highly specialized types of goods and
consulting services which are known to be obtainable only from limited number of sources; b)
procurement of major plant components where it is deemed advantageous to limit the
bidding to known eligible bidders in order to maintain an optimum and uniform level of
quality and performance of the plant as a whole.
2. Q - Can the PE award to the bidder with the lowest price offer even when it has obtained the
three quotations required in procuring through Shopping or Small Value Procurement? [8]
[Butuan City Water District (BCWD)]
A - No. It is imperative that the PE obtains at least three (3) quotations before awarding the
contract that is procured through shopping under Section 52.1(b). Failure to comply with this
requirement renders the procurement invalid, and the responsible officials accountable for
non-compliance with rules and regulations. When the number of quotations obtained is less
than three (3), the procuring entity should extend the deadline for the submission of
quotations until it has obtained at least three (3) quotations as clearly stated in Section 3(g) of
the Guidelines. In the case of procurement through Shopping under Section 52.1(a) and Small
Value Procurement under Section 53.9, it is not necessary to obtain at least three (3)
quotations.
2. Q - Can the PE hire a private lawyer through alternative methods of procurement? [9] (Agusan
del Sur State College of Agriculture and Technology)
A - No. RA 9184 and the revised IRR laid down the general rule that all procurement activities
to be undertaken by government agencies should be through competitive bidding. The PE
has the discretion to resort to any of the alternative methods of procurement of the services
of a private lawyer, subject to compliance with the parameters and factors laid out in RA
9184 and associated IRR.
3. Q - Can the PE procure Community Tax Certificates (CTC) through direct contracting? [52]
[BIR]
A - No. Direct contracting is not the appropriate or applicable procurement modality for this
activity but the applicability of Negotiated Procurement through agency-to-agency
agreements under section 53.5 of the IRR of Ra 9184. The PE is advised to comply with the
conditions and requirements provided in the guidelines e.g. the certification from the BIR, as
the Servicing agency, that it has the mandate to deliver the goods required to be procured,
33
and that it owns or has access to necessary tools required for the project that must necessarily
be obtained by the PE.
4. Q - Can the PE employ Limited Source Bidding in procuring Catering Services? [61]
(Department of Trade and Industry Regional Office (RO) XI)
A - No. Limited Source Bidding under section 49.1 of the IRR on RA 9184 cannot be resorted to
in the procurement of Catering Services but Competitive Bidding in the acquisition of the
contemplated service. Considering that, ordinarily, Catering Services are available from and
is being offered by various companies in the country, and does not involve highly specialized
requirements, and is undoubtedly not a major plant component.
5. Q - Can the PE treat Tax Clearance as an optional requirement in Negotiated Procurement?
[65] (Metro Kalibo Water District)
A - No. The PE should require the submission of a tax clearance when it resorts to Negotiated
Procurement (Two Failed Biddings) under Section 53.1 of the IRR of RA 9184 and indicate this
requirement in its invitation to negotiate to prospective suppliers, contractors, and consultants
who must provide said document upon submission of their proposal or quotations, otherwise
disqualification is in order. Also, even if a Tax Clearance is not initially included as one of the
eligibility documents in the invitation to negotiate by the PE for Negotiated Procurement (Two
Failed Biddings), the latter could still require the mandatory submission of the same as it is
necessary in determining the legal and financial capability of the prospective suppliers,
contractors, and consultants to undertake the procurement at hand.
6. Q - Can the PE resort to Negotiated Procurement after two occasions of failed biddings - the
first is when the HOPE disapproved the first recommendation to call for a rebidding and attract
more bidders; and the second is when there was only one bidder and was found to be
ineligible? [72] (Securities and Exchange Commission (SEC) Cebu Extension Office)
A - No. Negotiated Procurement under Section 53.1 (Two-Failed Biddings) of the IRR of RA
9184 for the procurement of the Project if the two-failed biddings were due to circumstances
enumerated under Section 35 of the same IRR viz. a) no bids are received; b) all prospective
bidders are declared ineligible; c) all bids failed to comply with all the bid requirements or fail
post qualification or in the case of a consulting services, there is no successful negotiation; d)
the bidder with the LCR/HRB refuses, w/out justifiable cause, to accept the award of contract
and no award is made in accordance with Section 40 of the Act and its IRR. Since the other
cause for the failure of bidding was the declaration by the HOPE pursuant to Section 41 of the
IRR, Negotiated Procurement cannot be resorted to under the circumstances.
7. Q - Can the PE adjust the ABC and resort to NP after two failed biddings? [93](Bureau of Fire
Protection (BFP) Regional Head Quarters 3)
A - Yes. If, after two failed biddings under Section 35 of the IRR, the procuring entity decides to
resort to Negotiated Procurement (Two-Failed Biddings), Section 53.1.1 of the IRR also requires
the BAC to conduct a mandatory review of the terms, conditions, specifications, and cost
estimates; and, when necessary, increase the ABC provided that it is not more than twenty
percent (20%) of the ABC for the last failed bidding, and the required approval for the
increase have been obtained.
34
8. Q - Can the PE resort to Negotiated Procurement (Adjacent or Contiguous) for an infrastructure
project? [96] (National Irrigation Authority - Region V)
A - Yes. Section 53.4 of the IRR of RA 9184 provides that in the instance of a procurement of
an infrastructure project or consulting services that is adjacent or contiguous to an ongoing
infrastructure project or consulting services, the alternative modality of Negotiated
Procurement may be resorted to. The phrase "adjacent or contiguous" refers to projects that
are in actual physical contact with each other in the case of infrastructure projects. Thus, the
physical connection of the two (2) projects should be actual and not superficial. The
objective of this policy is to take the advantage of the economy and efficiency in engaging
the contractor for the on-going project, and ensure that the two structures are soundly
connected. It follows then that if there is no similar scope of work between the two projects
compliance with such condition is not necessary. The procuring entity, however, should
ensure that the unit prices are lower than or equal to the prevailing market prices.
9. Q - Can the PE resort to Negotiated Procurement (Adjacent or Contiguous) for a project on
condition that the (existing) contractor uses the same prices or lower unit prices as in the
original contract less mobilization cost? [112] (PITC)
A - Yes. Provided that the condition under Section 53.4(d) of the IRR for the use of Negotiated
Procurement (Adjacent or Contiguous) is applicable only to the unit price of scopes of work
present in both the ongoing project and the adjacent/contiguous project, and the original
contractor should submit an offer that the PE finds acceptable in accordance with the terms
and conditions it has adapted for the adjacent/contiguous project.
10. Q - Can the PE proceed with the procurement of overhauling and rehabilitation services (for
trains and locomotives) via direct contracting? [83] (Philippine National Railways)
A - No. The PE cannot enter into contract for the repair/overhauling of the identified train sets
and locomotives using direct contracting but should instead conduct competitive bidding for
the proposed contract considering the following; that the actual repair and overhauling
works will be done directly by a local company that will be identified by the manufacturers
ad their partner; that the partnership arrangement has not yet been finalized; and that
opening the opportunity to industry players will serve to increase the pool of potential partners
for the manufacturers, instead of limiting it to only one. Also, Section 50 of RA 9184 allows the
use of Direct Contracting for the procurement of tangible goods. The procurement activity at
issue pertains more to procurement of services for repair/overhauling since the PEs main
objective for the contract is the repair and/or overhauling of the identified train sets and
locomotives, and that the acquisition of parts and materials is only ancillary.
11. Q - Can the GPPB belatedly declare as a failure of bidding the awarding of a successful bid
by the PE and allow the same to proceed with Negotiated Procurement if the second bid
results in a failure of bidding; and whether the PE may resort to Limited Source Bidding
instead? [99] (Bureau of Communications Services (BCS) Presidential Communications
Operations Office)
A - No. After two failed biddings, the declaration of failure of bidding is within the authority
and accountability of the Bids and Awards Committee (BAC) and the Head of the Procuring
Entity (HOPE) to exercise, under Sections 35 and 41 of the IRR of RA 9184, respectively. Limited
Source Bidding is possible if the procurement is for highly specialized types of goods or
35
consulting services where only a few suppliers or consultants are known to be available, such
that resorting to public bidding will not likely result in any additional suppliers or consultants
participating in the bidding, or for major plant components where it is deemed
advantageous to limit the bidding to known qualified bidders in order to maintain uniform
quality and performance of the plant as a whole.
12. Q - Can the GPPB grant exemption to a PE and proceed with Negotiated Procurement after
one failed bidding? [100] (Leyte National University)
A - No. It is beyond the authority of the GPPB to grant exemptions from the application of RA
9184 and its IRR as it does not have the mandate to legislate nor determine the coverage of
the law. The PE cannot resort to Negotiated Procurement under Section 53.1 of the IRR of RA
9184 upon the instance of only one failed bidding.
13. Q - Can the GPPB grant exemption from the rule disqualifying non-chartered GOCCs from
being engaged as Servicing Agency through Negotiated Procurement (Agency-to-Agency)?
[110] (DBP Leasing Corporation)
A - No. The GPPB cannot grant the request for exemption from the application of RA 9184, its
IRR and associated issuances as it does not have the mandate to legislate nor limit the
coverage of the law. By virtue of GPPB Resolution No. 12- 2013 dated 10 May 2013, which
removed the disqualification of non-chartered GOCCs from being engaged as Servicing
Agency for projects procured through Negotiated Procurement (Agency-to-Agency), nonchartered GOCCs, may be engaged as Servicing Agency by procuring entities in contracts
procured using Negotiated Procurement (Agency-to-Agency) under Section 53.5 of the IRR of
RA 9184 starting 13 November 2013, subject to the requirements provided in the Guidelines.
14. Q - Can the PE directly transact with a building owner without need of inviting prospective
lessors in the procurement of lease of office space? [113] (Home Development Mutual Fund
Calapan Branch)
A - No. Said branch cannot directly transact with a compliant building owner without need of
inviting other prospective lessors in relation to the procurement of lease of office space. There
are only two modalities that would permit direct transaction with a building owner without
need of inviting other owners, i.e., Negotiated Procurement (Emergency cases) under Section
53.2 and Negotiated Procurement (Take Over of Contracts) under Section 53.3. In both these
instances, the procuring entity must establish that immediate action is necessary in order to
prevent damage to or loss of life or property, or to restore vital public services, infrastructure
facilities, and public utilities.
15. Q - Is Performance Security required for a NGO selected to perform contract via Negotiated
Procurement for a non-infrastructure project? [120](NAPC)
A - Yes. Regardless of the category of procurement for a contract where the NGO is
engaged using Negotiated Procurement under Section 53.11 of the IRR of RA 9184 and
Section 6 of the NGO Participation in Public Procurement (Guidelines), the selected NGO is
required to post a performance security upon signing of the MOA. The Guidelines require the
36
posting of performance security in accordance with Section 39 of the IRR of RA 9184

regardless of the modality adopted in selecting the NGO.
16. Q - Can the BAC evaluate only one bidder who responded to an invitation to participate in
Negotiated Procurement after two (2) failed biddings? [136] [DSWD]
A - Yes. Section 53.1.2 of the IRR of RA 9184 provides that where there has been a failure of
public bidding for the second time, the BAC shall invite and engage in negotiations with a
sufficient number of suppliers, contractors or consultants to ensure effective negotiations.
Unlike in Shopping under Section 52.1(b), which requires at least three (3) quotations, the rules
do not impose the same requirement to Negotiated Procurement (Two-Failed Biddings) under
Section 53.1 of the IRR. The phrase "sufficient number of suppliers, contractors or consultant"
refers to the minimum number of contractors that the PE must invite for the purpose of
engaging in negotiation. Accordingly, if only one bidder responded to such invitation, the
Procuring Entity may proceed with the Negotiated Procurement as long as it has invited
contractors of a number that it deems sufficient to ensure competition in accordance with
Section 53.1.2 of the IRR of RA 9184.
17. Q - Can the BAC delegate the conduct of Limited Source Bidding to Another body? [135] [BSP]
A - No. The BAC cannot delegate the conduct of LSB to another office/body in the procuring
entity. Section 12.1 of the IRR of RA 9184 categorically vests upon the BAC the authority to
process and evaluate the procurement requirements of bidders. An exception to this policy
was established for procurement using Shopping and Negotiated Procurement (Small Value
Procurement) for the reason that these particular methods of procurement are used for
contracts that are of considerably small amount and are generally simple/routinary, such that
delegating the functions to another unit will be more efficient and economical for the
procuring entity. Said exception is not applicable to the LSB inasmuch as the circumstances
surrounding procurement activities using LSB are not similar to those covered by Shopping
and Negotiated Procurement (Small Value Procurement).
XVII Protest Mechanism
1. Q - Is the Surety Bond considered an acceptable form of non-refundable protest fee? [39]
(N&N Construction)
A - No. The posting of a surety bond as a form of non-refundable protest fee is not
acceptable. The surety bond is a contractual arrangement between the surety, the principal
and the obligee whereby the surety agrees to protect the obligee if the principal defaults in
the performing the principals contractual obligations. It provides financial security to the
obligee by assuring that in case of default by the principal, the obligee can obtain
indemnification from the surety. Inncidentally, this is not the rationale and purpose for which
the protest mechanism and fee are required under the law and rules, the purposes being to
deter filing of frivolus complaints and answer for the costs of the action.
2. Q - Can the bidder raise concerns or questions as part of the regular bidding process? [49]
(Den-Tronix International Trading)
37
A - Yes. Bidders may raise questions or concerns as part of the regular bidding process subject
to compliance with the requirements provided in the applicable provisions of the IRR of RA
9184. Under Section 55 of RA 9184 and its revised IRR, prospective bidders are allowed to
question decisions of the BAC at any stage of the procurement process by filing a request for
reconsideration within three (3) calendar days from receipt of written notice or upon verbal
notification of such decision.
Q - Can the bidder be disqualified for failure to indicate brand name and model in submitted
product sample?
A - Yes. Failure to indicate the brand name and model in the product sample may be a
ground for disqualification if the bidding documents clearly and specifically mandate that
the product sample should bear the brand name and model. Section 34.3 of the IRR of RA
9184 requires Pes to conduct post-qualification to verify, validate, and ascertain all
statements made and documents submitted by the bidder with the lowest calculated bid as
stated in the bidding documents. The post-qualification process shall consider the
determination of compliance with the requirements specified in the bidding documents,
including verification and/or inspection and testing of goods/products.
3. Q - Can the PE validly and legally refuse to accept a sealed bid containing an accomplished
RFQ from a qualified supplier? [67] (G.O. Lisay Marketing)
A - No. The PE cannot validly and legally refuse to accept a bid submitted before deadline
for the submission indicated in the RFQ. A contrary action opens the ground for the
aggrieved bidder to file a request for consideration and subsequently, protest as provided in
Section 55 of RA 9184 and its IRR without prejudice to the institution of civil, administrative
and/or criminal actions against erring officials under applicable laws and rules.
4. Q - Can the HOPE disapprove the BACs resolution recommending to award the contract to a
bidder without providing any reason for the disapproval? [116] (Himex)
A - No. The notice from the zHOPE disapproving the recommendation of the BAC should be
based on valid, reasonable and justifiable grounds and should be indiacated in such notice
to the bidder. The decision of the BAC and HOPE may be questioned following the Protest
Mechanism provided in RA 9184 and its IRR, which must be complied with by the aggrieved
bidder prior to resorting to regular courts. Pending its request for reconsideration or protest,
the aggreived bidder must await its resolution, unless it can establish that there is no other
plain, speedy and adequate remedy in the ordinary course of law.
XVIII Settlement of Disputes

1. Q - Can the bidder request the GPPB to resolve its disqualification issue by the PE in relation to
its procurement of infrastructure project? [104] (Guamor Construction and Supply)
A - No. The GPPB-TSO does not have the authority to decide for and on behalf or overturn a
decision of a procuring entity. We cannot dictate to the PE how to decide or resolve issues
relative to its procurement activities. The bidder can refer to Circular No. 03-2012 issued on 17
August 2012 reminding the PE to state all the grounds for the post-disqualification pursuant to
the requirements or conditions of the bidding documents that the bidder failed to comply
38
with. This is to provide the bidder the opportunity to question the decision of the BAC
following Section 55 of the revised IRR of Ra 9184 on the Protest Mechanism.
2. Q - Should the GPPB suspend the bidding procedure of the PE until an investigation is
conducted if it followed the right procedures for the issuance of new bid and relevant pre-bid
conference? [128] (Alenia Aermacchi)
A - No. The GPPB-TSO cannot act on the request to suspend the bidding activity of the PE for
the same reason given in NPN No-122-2013 that the GPPB-TSO is not in the position to decide
for and on behalf of a PE, nor can it overcome a decision of the PE. It has no jurisdiction to
rule over actual controversies with regard to the conduct of bidding, and thus cannot dictate
actions or decision upon the BAC that are well within the latters authority, discretion, and
accountability to make.
XIX Contract Prices & Warranties
1. Q - Can the PE consider for contract award the proposal of a supplier to replace the existing
goods (passport readers) with brand new units in lieu of the repair and replacement of its
spare parts? [41] (Bureau of Immigration)
A - No. The proposed transaction is akin to a trade-in transaction. Trade-in transaction involves
two distinct, but relatively connected activities of government agencies, namely, disposal of
government property and procurement, which are covered by different rules. Disposal of
government property is governed by Executive Order No. 888, dated 18 March 1983, and
Commission on Audit (COA) Circular No. 89-296, dated 27 January 1989, while procurement is
covered by Republic Act No. 9184 and its associated revised Implementing Rules and
Regulations.
The PE cannot consider the proposal of a supplier to replace PEs existing units with brand
new units in lieu of the repair and replacement of its spare parts, as it does not comply with
the technical requirements of the PE, and will entail the disposal of government property and
procurement of brand new equipment without undertaking the mandatory processes
required by applicable governing law, rules and regulations.
2. Q - Can the warranty security requirement be dispensed with in the procurement of security
and janitorial services? [64] (DOF)
A - Yes. Since the requirement for the posting of warranty security under Section 62.1 of the
IRR of RA 9184 applies only in the case of contracts involving expendable and nonexpendable supplies, GCC Clause 17 of the PBDs for the Procurement of Goods does not
apply in cases of contracts solely for performance of general support services. Section 62.1 of
the IRR of RA 9184 states that warranty security shall be required after acceptance by the
procuring entity of the expendable or non-expendable supplies. Logically, although
procurement of goods includes supplies and services, the requirement on the posting of
warranty security excludes services from its application. Resultantly, GCC Clause 17 of the
PBDs for the Procurement of Goods should also be understood to have the same limited
application.
39
3. Q - Can additional qualified participants for the Consultancy Service Contract for a MA
Degree Program with ABC of PHP12.6M? [70] (DOF)
A - Yes. Additional participants may be sent to attend the program provided that there will
be no increase in the original price and that the PE cannot increase the number of
participants and increase the contract cost without running aground with the provisions of RA
9184 and its IRR and associated issuances. The rules on procurement and implementation of
consulting services contracts contain provisions against increase in contract cost. Section 61.1
of the revised IRR of Ra 9184 provides that all bid prices shall be considered fixed prices, and
therefore not subject to price adjustment and escalation during the contract
implementation. Section 2 of Annex F of the IRR of Ra 9184 reiterates the same principle and
adds that any extension of the contract time shall not involve any additional cost. Lastly,
Clause 55.6 of the General Conditions of the Contract of the PBDs for the Procurement of
Consulting Services provides that no additional payment for variation order, if any, shall be
allowed for the consultancy contract.
4. Q - It is possible to for the PE to include force majeure within the coverage of the warranty
against structural defects of fifteen (15) years for permanent structures and five (5) years for
semi-permanent structures in the TOR for infrastructure contracts? [73] (Quezon City General
Procurement Office)
A - No. The PE could freely stipulate the terms and conditions in contracts that it enters into,
no contractual stipulation therein should be contradictory to law, morals, good customs,
public order or public policy. Considering that RA 9184 and its revised IRR and the PBDs for
Infrastructure Projects clearly provide that the contactor shall neither be liable for damage or
destruction of works occasioned by force majeure nor shall the contractor's warranty cover
Structural Defects/Failures occasioned by force majeure, then the PE ( Local Government of
Quezon City) could not include provisions in the Terms of Reference for infrastructure
contracts that are contrary to the provisions of law - to do so would be a wanton violation of
RA 9184 and its revised IRR.
5. Q - Can the PE revise and include additional deliverables to its existing design consultancy
contract? [119] (BCDA)
A - Yes. The PE may revise the existing design contract to include additional deliverables,
provided, however, that such revision will entail no additional payment or cost on the part of
the procuring entity. Section 61.1 of the revised Implementing Rules and Regulations (IRR) of
Republic Act No. (RA) 9184 provide that all bid prices shall be considered as fixed prices, and
therefore not subject to price adjustment and escalation during the contract
implementation. Moreover, Section 2 of Annex "F" of the IRR of RA 9184 reiterates the principle
that all consultancy contracts shall be fixed price contracts and any extension of contract
time shall not involve any additional cost. Lastly, Clause 55.6 of the General Conditions of
Contract of the Philippine Bidding Documents for the Procurement of Consulting Services
provides that no additional payment for variation order, if any, shall be allowed for the
consultancy contract.
40
XX
The Government Procurement Policy Board
XXI
Penal Clause
XXII Civil Liability

XXIII Administrative Sanctions
1. Q - Will a Blacklisting Order against a Joint Venture (JV) results in the blacklisting of all the
partners, including those who are not at fault? [23] (MIAA)
A - Yes. The Guidelines expressly provides that the Blacklisting Order shall apply to all the JV
partners as they are treated collectively as one bidder. The members of the JV expectedly
intend themselves to be jointly and severally responsible or liable for the obligations and civil
liabilities actually incurred by the particular joint venture. Section 2 of the Guidelines provides
that a JV or consortium which is blacklisted or which has blacklisted member/s and/or
partner/s as well as a person/entity who is a member of a blacklisted JV or consortium are,
likewise, not allowed to participate in any government procurement during the period of
disqualification. Since both companies are JV partners, the Suspension Order and eventually
the Blacklisting Order, necessarily apply to both of them. Consequently, both companies are
subject to the penalty of suspension from participating in procurement activities of the PE for
the duration of the Suspension Order, and banned from participating in any government
bidding activity once the Blacklisting Order is issued within the timelines provided in the
guidelines.
XXIV Legal Assistance and Indemnification to BAC Members
XXV
Final Provisions
41
Guide to Questions and Topics
KEYWORDS
I General Provisions
Joint Ventures; PPP projects.

Disqualification; Proof of
Compliance; Section 14 of DOLE
DO No. 18-A.
Concessionaire; Selection
Integrated package; National

government agency; Partnership ;
Private Sector; Support services
Infrastructure Projects;
Development Projects; RA 6957
as amended by RA 7718, Publicprivate sector
Engineering Services; General

Support Services; Multi-year
Contract;
Contract Extension; nonenactment of annual fiscal

budget;
Encoding; General Support
Services.
Negotiated Procurement;
Purchasing Agent; Multi-Agency
Procurement;
Guidelines; CSOs ; NGOs; Project

Implementers
Infrastructure ; Goods; Mixed
Procurement;
Authorization; Contract Extension
General Support Services
QUESTIONS
Should the provisions of R.A. 9184 apply to a

Joint Venture between a Government agency &
private sector entities?
Can a bidder be disqualified for failing to present
proof of its compliance to Section 14 of DOLE DO
No. 18-A?
Will the provisions of R.A. 9184 cover the
selection of a concessionaire?
Should the provisions of RA 9184 apply to a
partnership between a national government
agency and private sector entities for the
provision of an integrated package of support
services?
Should the provisions of R.A. 9184 and its revised
IRR apply to the privatization of the distributions
system in Mactan Economic Zone through a
lease concession agreement between a
government agency & private sector entities?
Can engineering services be included in the same
general support services category like Janitorial
&Security Services?
Will the provisions of RA 9184 apply to the
selection of engineering services for a multi-year
contract?
Is it appropriate for the PE to extend its ongoing
contracts for its current general support services
that are about to expire without having
substantially undertaken activities for its
procurement, citing as condition the nonenactment of annual fiscal budget?
Can Encoding be considered as part of General
Support Services?
Can a group of PEs jointly procure bulletresistant vehicles for their key officials?
Should we apply the Guidelines on NonGovernmental Organization Participation in
Public Procurement (Guidelines) in the selection
of NGOs to undertake Priority Development
Assistance Fund (PDAF) Projects endorsed to
NGAs?
Should the GPPB determine whether a mixed
procurement project is considered infrastructure
or goods?
Will GPPB authorize the Provincial Government
to procure essential supplies in Cebu or Metro
Manila via Negotiated Procurement as an
NPM NO#
PAGE
# 28-2013
# 29-2013
# 50-2013
# 58-2013
# 60 - 2013
# 82-2013
#105-2013
#127-2013
#131-2013
#137-2013
#138-2013
#107-2013
42
emergency case and extend contracts for

another twelve months?
II Procurement Planning
Local Water District Office;MultiYear Contract; Septage treatment

and Disposal Company
III Procurement by Electronic
Means
Electronic filing; Manual

Submission of Tax Returns
Mandatory; PhilGEPS;
Registration
Mandatory; Posting;
Supplemental Bid Bulletins
IV Competitive Bidding
Competitive Bidding; Printing;
SSS Forms;
V Bids and Awards Committee
BAC Secretariat; Honoraria;

Separate BAC; TWG;
Alternative Modes; Competitive

Bidding; Honoraria; Negotiated
Procurement;
BAC; Honoraria; Re-bid Project;

Previous Award
Observers; Post-Qualification
Stage
Bidders Qualification; No
Contact Rule; Track Record;
Verification
Can a local water district office enter into a fiveyear contract with a service provider pursuant to
Republic Act (RA) No. 9275 (Clean Water Act),
which mandates Local Government Units' (LGUs)
Water Districts to dislodge all septic tanks once
within five (5) years or when the septic tank is
half full?
#130-2013
Should (PAF) we allow the manual submission of

tax returns or through the electronic filing and
payment system pursuant to the provisions of RA
9184(EFPS)?
# 01-2013
# 34-2013
#121-2013
# 62-2013
# 04-2013
# 59-2013
10
#108-2013
10
# 05-2013
10
# 07-2013
10
Is PhilGEPS registration mandatory?

Is PhilGEPS posting of supplemental/bid bulletins
mandatory?
Can the SSS plan for the procurement of printing

services for SSS forms via competitive bidding?
a. Can we create a separate BAC?

b. Can we grant honoraria to members of the
BAC, BAC Secretariat and TWG for successfully
completed procurement projects?
a. May honoraria be granted on the basis of
successfully completed procurement projects
using negotiated procurement?
b. Does the phrase successfully complete
procurement projects refer only to completed
open or public bidding projects?
c. Is competitive bidding not observed in
alternative modes of procurement?
May the BAC be paid honoraria for a successfully
re-bid project even after members have already
claimed honoraria on basis of previously
awarded items?
Is the BAC required to invite Observers during
post qualification stage of the procurement
process?
a. Does the no contact rule mean also that a
bidder may not submit information that may
affect the qualifications of any bidder or the
winning bidder and that the BAC cannot
entertain such communication even if it does not
pertain to bid submitted by the bidders?
b. Should the BAC validate and verify
competence of each qualified and/or winning
43
BAC Chair; OIC-HOPE; Limits;

HOPE; Separate BACS;SUC
BAC Member; Executive

Assistant; Provisional Member
GOCC; NGA; Procurement Agent;

BAC Secretariat Head; Notary
Public
Bid; Opening
Separate BACs, Sub-BACs
Appointment; BAC Chair;
Organization Structure
Permanent; Position; Third
Ranking;
BAC Vice Chair; Executive
Assistant; General Manager
VI Preparation of Bidding
Documents
BIR; Requirement; Tax Clearance;
BIR; Certification; Tax Clearance
BAC; BIR; Certification;

Mandatory, Not Discretionary;
Tax Clearance;
Bid Security; Disqualification;
Forfeiture; Mandatory; Not
Discretionary;
Certification; Tax Clearance

Foreign Partner; Joint Venture;
Tax Clearance
BIR Receipt; Post - Qualification;
Tax Clearance; Validity
bidder in the event that it is provided

information on the poor performance and track
record of the winning bidder?
c. Should the information submitted regarding
the winning bidders past projects should be of
the same nature as that of the project being bid
out by the PE in order to be considered in
validating and verifying the bidders
qualifications?
Can the Chair or member of the BAC who
previously evaluated a bid proposal be allowed
to be the approving authority for the same bid
proposal after being designated as OIC-HOPE?
Can separate BACS created by the HOPE of an
SUC comply with the provisions of RA 9184?
Can the HOPE appoint the Executive Assistant for
Budget and Finance Concerns as a provisional
member of the BAC without violating Section
11.2.5 of the IRR on RA 9184?
Can a Government-Owned and Controlled
Corporation request a National Government
Agency to be its Procurement Agent?
Can the BAC Sec Head notarize the same
contracts entered into by their agency as a result
of their successful procurement activities?
# 14-2013
11
# 26 - 2013
11
# 32-2013
11
# 38-2013
11
# 66-2013
12
Should all Bids be opened at the same time?
# 69 -2013
12
Can we create separate BACs?
# 74-2013
12
# 95-2013
12
#134-2013
12
# 02-2013
13
# 06-2013
13
# 21-2013
14
# 45-2013
14
# 48-2013
14
Can we appoint someone occupying a

permanent position as BAC Chair?
Can we appoint the GMs Exec. Assistant as BAC
Vice Chair?
Can other documents be submitted in lieu of a

current tax clearance issued by BIR?
a.Can the BAC accept a certification issued by the
BIR that the Tax Clearance is being processed to
be released on a certain date?
b.Can the BAC exercise discretion in extending
the deadline for submission of Tax Clearance on
the basis of the BIR Certification?
c.Can the BAC be exempted from strictly
following the rule under Section 34.2 of the IRR
on the forfeiture of bid security and
disqualification of bidder upon failure to submit
the requirement or a finding against the veracity
of the documents?
Can a bidder submit a Certification of Clearance
in lieu of Tax Clearance?
Do we require Tax Clearance for a Foreign
Partner in JV?
Can a bidder be post-qualified for having
submitted BIR Receipt in lieu of a Tax Clearance?
44
Computation; Positive; Variation

Order
How do we compute for positive variation order?

Can another entity, not HOPE, verify submitted
Documents; HOPE; Verification
documents?
Can the BAC create a separate Registry of
BAC; Registry; Separate
suppliers?
a. Is it sufficient for joint venture partners to
submit their respective individual Philippine
Contractors Accreditation Board (PCAB)
License and registration in lieu of a joint PCAB
License?
b. Can the discount to the bid price offered by the
bidder using its Bid From be considered valid
despite its non-indication in other documents of
the bid?
Computation; Discount;
c. Will the aforementioned discount, if valid, be
Evaluation; Joint Venture; PCAB
considered in the computation and ranking of
License; Ranking of Bids;
bid prices during the detailed evaluation?
Country of Origin; Technical
Can the PE specify a specific country of origin as
Specification
part of the technical specifications?
Sole Proprietorship Experience;
Can sole proprietorship experience be
Transfer;
transferred to a corporation?
Performance Security; Personal
Can performance security be paid through a
Check
personal check?
a.Is improper marking of bids a ground for
disqualification?
b.Can a bidder be disqualified if it is registered as
Business Permit; Disqualification; a construction company but not a supplier of
Marking of Bids;
vehicles?
Posting of Performance Security;
Can a procuring agency require a Servicing
Servicing Agency
Agency to post a performance security?
Mayor's Permit; Substitute
Can a similar document abroad substitute for a
document;
local mayors permit?
Do we pay fees for bidding documents of reDocuments; Fees; Re-bidding;
bidding?
Will I be disqualified for submitting a bid that
does not comply with the quantity stated in the
Bill of Quantities; Disqualification Bill of Quantities issued by the PE?
Additional Eligibility Document;
Certification; Domestic
Can domestic preference certification be
Preference
included as an additional eligibility document?
Will my bid be considered responsive if there are
no prices indicated in the columns for Material
Bill of Quantities; Dash; Labor;
and Labor although 0 (zero) is indicated in
Material; Prices; Zero
the Total column in the Bill of Quantities?
Labor Wages and Standards;
Should a bidder comply with labor wages and
PADPAO; Rates
standards, not only with the PADPAO rates?
Affiliates; Blacklisting Order;
Can an affiliate/sister company of a blacklisted
Sister Companies
bidder also be considered as blacklisted?
VII Invitation to Bid
Lots; Project; Re-advertisement
With the advance identification of a supplier, is

PhilGEPS posting a mere formality?
Is the PE allowed to divide one project into two
(2) lots without re-advertisement?
Accreditation; Bidders; Pre-bid
Can a local government unit be allowed to
Formality; PhilGEPS; Posting;
# 03-2013
14
# 15-2013
14
# 16-2013
14
# 17-2013
15
# 22-2013
15
# 31-2013
15
# 35-2013
15
# 36-2013
16
# 37-2013
16
# 42-2013
16
# 68-2013
17
# 78-2013
17
# 79-2013
17
# 80-2013
17
# 91-2013
17
# 92-2013
18
# 33-2013
18
# 46-2013
18
# 47-2013
18
45
Additional Requirement; ITB
HOPE; ITB; Reservation Clause

Audited Financial Statement;
Infrastructure Project
Bid; Bulletin; Documents;
Deadline; Extension;
Supplemental;
Advertising; Conference; Pre-bid
VIII Receipt and Opening of Bids
Consulting Corporations
Eligibility; Joint Ventures;
Professional Partnership; Sole
Proprietorship
Authorized Representative;
Company; Firm; Owner
Consultants; Foreign;
Independent; Local; PPP Project;
Eligibility; Pre-Qualification
Letter of Intent; LOI; Submission

Letter of Intent; LOI;
Requirement; Submission;
BAC; Contractor; Eligibility; PCAB
License; Validity
ABC; Net Financial Contracting
Capacity; NFCC;
Sub-Contractor; Work
Experience;
Construction; Design & Build
Project;; Single Contract; Work
Experience
Completed; Contract; On-going;

ICT Project; Mixed Procurement
accredit bidders and forego a pre-bid conference

for a foreign-funded project?
Can the PE ask for Additional Eligibility
Requirement in the Invitation to Bid?
a. Is the PE allowed to modify or add to the
conditions in the ITB?
b. Is the Reservation Clause exercised exclusively
by the HOPE?
Can a new firm with no AFS bid for an infra
project?
Can the PE extend the deadline for the
submission and receipt of bids specified in the
Bidding Documents without issuing a
Supplemental/Bid Bulletin?
Is prior posting or advertisement required for a
Pre-bid conference?
Can we credit the past experiences of consulting
corporations in favor of newly-formed joint
ventures, professional partnerships, or sole
proprietorship?
Is the owner/proprietor the only person allowed
to represent the company/firm in all bidding
activities?
a. Can we procure the services of foreign
consultants who entered into a joint venture
with local consultants as Independent
Consultants for a PPP project?
b. Shall the provisions of RA 9184 and its IRR
apply in the procurement of Independent
Consultants for a PPP Project?
Can a bidder which has been pre-qualified and
eligible to bid may be declared ineligible at bid
opening?
Can the submission of LOI from bidders be
extended to coincide with the re-scheduled
bidding activities?
Is the submission of LOI a requirement for
participation in public bidding activities?
Can the BAC declare a contractor as eligible
despite the submission of a PCAB License that is
valid only after the date of the opening of bids?
Should the Net Financial Contracting Capacity or
NFCC equal the Approved Budget of the Contract
or ABC?
Can a sub-contract within 10 years be credited to
a bidders work experience?
Is a design and build project experience
requirement considered as separate contracts
i.e. one for design and another for construction?
Is it mandatory for a bidder to attach proofs to
its statement of on-going & completed contracts
during post qualification?
Can an ICT project be considered as mixed
procurement?
# 53-2013
19
#102-2013
19
#103-2013
19
#122-2013
19
#124-2013
20
# 40-2013
20
# 43-2013
20
# 44-2013
20
# 54-2013
21
# 55-2013
21
#101-2013
21
# 71-2013
21
# 76-2013
22
# 77-2013
22
# 81 -2013
22
# 86-2013
22
# 88-2013
23
46
Business Registration Permit;

LGU; Requirement
Completed; Contract; Notice of

Award; On-going; Statement
Deadline; Local Chief Executive;
Receipt of Bids; Submission;
Mayor's Permit ; Similar

Contract; 50% of the Value
SLCC; Several Lots

Authentication; Stamped
"Certified True Copies"
ABC; Bank Draft/Guarantee; Bid

Security; Cash; Cashiers Check;
Forms; Compliance; Irrevocable
Letter of Credit; Managers
Check; Similar Project
IX Bid Evaluation
Draw Lots; Tie-Breaking Method
BAC; Bid Opening; Delegation of
Function
Disqualification; Form
Bid Evaluation; Product Testing
Bidder with LCRB; Sanction
Bid Price; Discount
BAC; Decimal points; Rounding
off
X Post-Qualification
Repeat Order; Post Qualification
Bid Documents; Disqualification;
End-user complaint; Requirement
Can the LCE/PE require bidders to apply for

business registration permits in their locality as
part of the qualification process?
Can projects where a NOA has been issued, but
for which no contract has been signed yet, be
included in the statement of all ongoing and
completed government and private contracts?
May the LCE adopt a shorter period for the
deadline of submission and receipt of bids?
a. Can a bidder participate in a public bidding
even without a similar contract which is at
least fifty percent (50%) of the value of the
contract to be bid out?
b. Can the PE require the submission of a mayors
permit other than that issued by the LGU
where the bidder holds its principal place of
business?
Can one single largest completed contract may
be considered for several lots for compliance
with section 23.5.1.3 of the revised IRR of RA
9184
Should bidders certify the bid documents as
authentic?
a. Can the PE limit the acceptable forms of bid
security to only cash or cashiers / managers
check and bank draft/guarantee or irrevocable
LC?
b. Can the PE allow a bidder to submit a
combination of 2 similar projects for compliance
with the required submission of at least one
similar contract that is at least 50% of the ABC?
c. Can the PE define and identify what constitutes
a similar contract in the Bidding Documents
for a project?
# 97-2013
23
#111-2013
23
#115-2013
23
#118-2013
24
#123-2013
24
#133-2013
24
# 85-2013
24
Can the PE draw lots as a Tie-Breaking Method?

Can the BAC open the bid of a reconsidered
bidder? Can the BAC delegate its functions?
Can the PE disqualify a bidder for submitting
documents deemed insufficient as to the form
and amount?
Can the PE subject all bids that passed the bid
evaluation to a functional test?
# 51-2013
25
# 69-2013
25
# 94-2013
25
#106-2013
25
Can the PE sanction a bidder with the LCRB?

Can the LCE apply the bidders offer of 5%
Discount to bid price?
Can the BAC round off the amounts indicated in
bids into decimal places in bid evaluation?
#125-2013
26
#126-2013
26
#129-2013
26
Is Post-Qualification required for Repeat Order

a. Can the PE compel bidders to submit or comply
with requirements not initially provided in the
Bid Documents?
# 13-2013
26
# 24-2013
26
47
Extension; Post-Qualification;
Procurement Period
GPPB Clearance for Post
Qualification
b. Will receipt of complaints from end-users be a

ground for a bidders disqualification?
Can the PE post-disqualify a bidder for nonsubmission of additional documents?[
Can the PE extend the three calendar-day period
for PQ requirements?
Can the PE exceed the thirty calendar day-period
of post qualification and the three-month
maximum procurement period?
Should the PE seek GPPB Clearance to conduct
post qualification?
Post Qualification Team
Can the PE create a Post-Qualification Team?
#117-2013
27
BAC; Bid; Failure

XI Award, Implementation and
Termination of Contract
Advance Payment; Infrastructure
Project
Can the BAC declare a failure of bidding?
#122-2013
28
# 12-2013
28
# 18-2013
28
# 19-2013
28
# 20-2013
29
# 30-2013
29
#132-2013
29
# 56-2013
30
Additional Documents; PostDisqualification; Requirements

Extension Period for PostQualification documents
ABC; Adjustment; Minimum

Wage Rates; Second Bidding;
BAC; Certificate; Expired;

PhilGEPS; Registration
LGU; Printing Guidelines
Contract Extension; GOCC;

Janitorial Services; Privatization
Bid Failure; Contract Extension;

Lease;
Contractor; Design and

Construction; Improvement
Project; Mobilization Fee;
Sangguniang Panlalawigan;
Separate Contracts; Variation
Order;
Can the PE make advance payment for infra

projects?
Can the PE reflect the new minimum wage rates/
adjustments in the original ABC prior to the
conduct of the second bidding?
Can the PE recommend the award of contract to
the bidder with the HRB if it failed to submit a
current and updated PhilGEPS registration
certificate within three (3) calendar days from its
receipt of notice from the BAC?
Does the GPPB Printing Guidelines apply to
LGUs?
Can the Guidelines on the Extension of Contracts
for General Support Services apply to the
contract extension of janitorial services of a
GOCC that is currently being privatized?
a. Can the PE extend/renew the lease contracts
to avoid disruption in the service delivery and
operations of its branch offices? If yes, how long
should the extension be?
b. In the event of failure of bidding, is the PE
allowed to renew extension until the time that a
contract is entered into?
a. Is it proper for the PE to issue a variation order
for the design and construction/improvement
project of the City Capitol Building considering
that the NCCA recommended its preservation of
historic features was not included in the original
contract?
b. Can Variation Order be interpreted to include
major changes in the design as conceptualized,
bid out, and awarded?
c. Can the contractor claim 15% mobilization fee
pending the completion of the amended
contract?
d. Is it necessary for the Sangguniang
Panlalawigan to authorize the contract?
e. Can the GPPB make a categorical declaration
that the 2 components of the Project may be
made into 2 separate contracts?
# 25-2013
27
# 27-2013
27
# 57 -2013
27
#114-2013
27
48
Deletion; Scope of Work; Slope

Protection; Variation Order;
Authority; Bidder's Legal
Representative; Contract
Implementation; Next Lowest
Bidder
Job Order; Notice to Proceed;
Purchase Order
Change of Venue; Issuance of
NOA
Blacklisting Order; Forfeiture;

NOA; Performance Security
XII Domestic & Foreign
Procurement
XIII Bidding of Provincial Projects
XIV Lease of Computers,
Communications, Information
and Other Equipment
General Support Services; Goods;
ICT Services;
Can the PE allow the whole scope of work (on

slope protection) be deleted via Variation Order?
Can the PE revoke the contract implementation
for the second project due to intra-corporate
dispute and award the same to the next lowest
bidder?
Can the PE forego the issuance of a Notice to
Proceed due to assigned Purchase Order or Job
Order?
Is the Change of Project Site Venue after NOA
Issuance allowed under RA 9184 and its IRR?
Can the performance security of a winning
bidder on the basis of a NOA be forfeited in the
event that the bidder has previously been issued
a blacklisting order by another PE?
# 84-2013
31
# 75-2013
31
# 87-2013
31
# 90-2013
31
# 98-2013
32
Is it proper for the PE to determine ICT project

under General Support Services as Goods?
# 11-2013
32
Is there a conflict of interest when the entity that

prepared and made plans/drawings for project,
likewise participates in the bidding process for
the same project?
# 10-2013
32
# 63-2013
33
# 08-2013
33
# 09-2013
33
# 52-2013
33
# 61 -2013
34
# 65-2013
34
# 72-2013
34
XV Disclosure of Relations
Conflict of Interest; Drawing;

Plans; Same Project;
XVI Alternative Methods of
Procurement
Acquisition; Brand New; Lease to
Own; Limited Source Bidding;
Motor Vehicle
Lowest Price Offer; Shopping;
Small Value Procurement; Three
(3) Quotations;
Alternative Method; Hiring;
Private Lawyer; Procurement
Community Tax Certificates;
Direct Contracting; Negotiated
Procurement;
Catering Services; Limited Source
Bidding
Optional; Tax Clearance; Two
Failed Biddings
HOPE; Negotiated Procurement

after 2 failed biddings;
Is it proper for the PE to resort to Limited Source

Bidding or Lease-to-Own agreement in the
acquisition of a brand new utility motor vehicle?
Can the PE award to the bidder with the lowest
price offer even when it has obtained the three
quotations required in procuring through
Shopping or Small Value Procurement?
Can the PE hire a private lawyer through
alternative methods of procurement?
Can the PE procure Community Tax Certificates
(CTC) through direct contracting?
Can the PE employ Limited Source Bidding in
procuring Catering Services?
Can the PE treat Tax Clearance as an optional
requirement in Negotiated Procurement?
Can the PE resort to Negotiated Procurement
after two occasions of failed biddings - the first is
when the HOPE disapproved the first
recommendation to call for a rebidding and
attract more bidders; and the second is when
there was only one bidder and was found to be
ineligible?
49
Adjusted ABC; Negotiated

Procurement after Two Failed
Biddings
Infrastructure Project;
Negotiated Procurement
(Adjacent or Contiguous)
Can the PE adjust the ABC and resort to NP after

two failed biddings?
(Adjacent or Contiguous) for an infrastructure
project?
(Adjacent or Contiguous) for a project on
Mobilization Cost; Negotiated
condition that the (existing) contractor uses the
Procurement (Adjacent or
same prices or lower unit prices as in the original
Contiguous); Original Contract
contract less mobilization cost?
Direct Contracting; Overhauling
Can the PE proceed with the procurement of
and Rehabilitation Services;
overhauling and rehabilitation services (for trains
Trains and Locomotives
and locomotives) via direct contracting?
a.Can the GPPB belatedly declare as a failure of
bidding the awarding of a successful bid by the
PE and allow the same to proceed with
GPPB; Negotiated Procurement
Negotiated Procurement if the second bid
after two Failed Biddings;
results in a failure of bidding;
Limited Source Bidding; Second
b.Can the PE may resort to Limited Source Bidding
Bidding
instead?
GPPB; Exemption for Negotiated
Can the GPPB grant exemption to a PE and
Procurement after one (1) failed
proceed with Negotiated Procurement after one
bidding
failed bidding?
Can the GPPB grant exemption from the rule
GOCC; GPPB; Negotiated
disqualifying non-chartered GOCCs from being
Procurement Exemptions;
engaged as Servicing Agency through Negotiated
Servicing Agency
Procurement (Agency-to-Agency)
Can the PE directly transact with a building
Direct Transaction; Lease of
owner without need of inviting prospective
Office Space; Negotiated
lessors in the procurement of lease of office
Procurement;
space?
Negotiated Procurement; NGO;
Is Performance Security required for a NGO
Performance Security; Nonselected to perform contract via Negotiated
Infrastructure Project
Procurement for a non-infrastructure project?
Can the BAC evaluate only one bidder who
BAC; Negotiated Procurement
responded to an invitation to participate in
after Two Failed Biddings: One
Negotiated Procurement after two (2) failed
Bidder
biddings?
Can the BAC delegate the conduct of Limited
Limited Source Bidding; Delegate; Source Bidding to Another body?
XVII Protest Mechanism
Protest Fee; Surety Bond
Brand and Model Indication;

Disqualification; Raise Questions;
Refusal to Accept Price
Quotation; RFQ; Sealed Bid;
BAC; Remedies:
Is the Surety Bond considered an acceptable

form of non-refundable protest fee?
Can the bidder raise concerns or questions as
part of the regular bidding process?
Can the bidder be disqualified for failure to
indicate brand name and model in submitted
product sample?
Can the PE validly and legally refuse to accept a
sealed bid containing an accomplished RFQ from
a qualified supplier?
Can the HOPE disapprove the BACs resolution
recommending to award the contract to a bidder
without providing any reason for the
# 93-2013
34
# 96-2013
35
#112-2013
35
# 83-2013
35
# 99-2013
35
#100-2013
36
#110-2013
36
#113-2013
36
#120-2013
36
#136-2013
37
#135-2013
37
# 39-2013
37
# 49-2013
37
# 67-2013
38
#116-2013
38
50
disapproval?
XVIII Settlement of Disputes
GPPB; Infrastructure Project;
Post-disqualification; Protest
Mechanism; Resolution;
GPPB; Bid Process Suspension;

Investigation; Pre-Bid Conference
XIX Contract Prices &
Warranties
Contract Award; Repair and

Replacement; Supplier; Trade-In
Transactions;
Security and Janitorial Services;
Warranty Security Requirement
ABC; Additional Participants;
Consultancy Service Contract;
Educational Services
Force Majeure; Infrastructure

Contracts; Semi-Permanent
Structures; Terms of Reference;
Warranty
Additional Deliverables; Design
Contract; Revision;
XX The Government
Procurement Policy Board
Can the bidder request the GPPB to resolve its

disqualification issue by the PE in relation to its
procurement of infrastructure project)
Should the GPPB suspend the bidding procedure
of the PE until an investigation is conducted if it
followed the right procedures for the issuance of
new bid and relevant pre-bid conference?
Can the PE consider for contract award the

proposal of a supplier to replace the existing
goods (passport readers) with brand new units in
lieu of the repair and replacement of its spare
parts?
Can the warranty security requirement be
dispensed with in the procurement of security
and janitorial services?
Can additional qualified participants for the
Consultancy Service Contract for a MA Degree
Program with ABC of PHP12.6M?
Is it possible for the PE to include force majeure
within the coverage of the warranty against
structural defects of fifteen (15) years for
permanent structures and five (5) years for semipermanent structures in the TOR for
infrastructure contracts?
Can the PE revise and include additional
deliverables to its existing design consultancy
contract?
#104-2013
38
#128-2013
39
# 41-2013
39
# 64 - 2013
39
# 70-2013
39
# 73-2013
40
#119-2013
40
# 23-2013
41
XXI Penal Clause

XXII Civil Liability
XXIII Administrative Sanctions
Blacklisting Order; Joint Venture
Partners; Suspension Order
XXIV Legal Assistance and
Indemnification to BAC
Members
XXV Final Provisions
Will a Blacklisting Order against a Joint Venture

(JV) results in the blacklisting of all the partners,
including those who are not at fault?
51
Annex A - Questions Received Per Topic

R.A. 9184
Articles
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
Annex B
Topic
General Provisions (Scope & App)
Procurement Planning
Electronic Procurement
Competitive Bidding
Bids and Awards Committee
Bid Documents Preparation
Bid Invitation
Bid Receipt and Opening
Bid Evaluation
Post Qualification
Award, Implementation, End
Domestic & foreign Procurement
# Of
Queries
12
1
3
1
14
21
8
19
7
8
12
0
XIII
XIV
XV
XVI
XVII
XVIII
XIX
XX
XXI
XXII
XXIII
XXIV
XXV
Provincial Projects
Computers, communications, IT
Disclosure of Relations
Alternative Methods
Protest Mechanism
Dispute Settlement
Contract Prices & Warranties
GPPB
Penal Clause
Civil Liability
Administrative Sanctions
Assistance to BAC
Final Provisions
TOTAL
0
1
1
18
4
2
5
0
0
0
1
0
0
138
2013 Questions per GPRA Article
Figure 1 Questions Received in 2013

Annex C
2013 Questions According to Various Publics
Figure 2 Queries Sent from Various Publics
52

FAQs 2013 On The Philippine Government Procurement Reform Act: Digital Edition (Unofficial)

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FAQs 2013 On The Philippine Government Procurement Reform Act: Digital Edition (Unofficial)

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Format Tersedia

Introduction

The FAQ E-Book Concept

Frequently Asked Questions (FAQs) on the

October 26, 2014

Capacity Development Division

Abbreviations and Acronyms

Approved Budget for the Contract

Lowest Calculated and Responsive Bid

General Provisions ....................................................................................................................... 6

Procurement by Electronic Means ......................................................................................... 9

IV Competitive Bidding .................................................................................................................... 9

Bids & Awards Committee ........................................................................................................ 9

Preparation of Bidding Documents ................................................................................. 13

Invitation to Bid ...................................................................................................................... 18

VIII Receipt & Opening of Bids ...................................................................................................... 20

Bid Evaluation ......................................................................................................................... 25

Award, Implementation & Termination of the Contract ............................................ 28

Domestic & foreign Procurement .................................................................................... 32

Bidding of Provincial Projects ............................................................................................. 32

Lease of Computers, Communications, Information and other Equipment ........ 32

Disclosure of Relations .......................................................................................................... 32

Alternative Methods of Procurement .............................................................................. 33

Protest Mechanism ............................................................................................................ 37

Settlement of Disputes ...................................................................................................... 38

Contract Prices & Warranties ........................................................................................... 39

The Government Procurement Policy Board ................................................................. 41

Penal Clause ........................................................................................................................... 41

XXII Civil Liability................................................................................................................................ 41

Legal Assistance and Indemnification to BAC Members ....................................... 41

Guide to Questions and Topics ......................................................................................................... 42

2013 Questions per GPRA Article................................................................................... 52

2013 Questions According to Various Publics........................................................ 52

Questions and Answers (Q&A)

Can a bidder be disqualified for failing to present proof of its compliance to

the provisions of R.A. 9184 apply to the selection of a concessionaire?[50]

Will the provisions of RA 9184 apply to partnerships between a national

Can engineering services be included in the same general support services

Will the provisions of RA 9184 apply to the selection of engineering services

Is it appropriate for a local government unit to extend its ongoing contracts

Procurement by Electronic Means

Q - Is it mandatory to register with the PhilGEPS? [34] (PHILCOA)

Q - Is it mandatory to post supplemental/bid bulletin in PhilGEPS? [121] (MIAA)

Bids & Awards Committee

1. Q - Can the Procurement Entity create a separate BAC? [4] (MWSS)

the IRR in order to facilitate professionalization and harmonization of procedures and

10. Q - Can a Government-Owned and Controlled Corporation request a National Government

Preparation of Bidding Documents

1. Q - Is Post-Qualification required for Repeat Order? [13](PNP - National Headquarters)

XVI Alternative Methods of Procurement

posting of performance security in accordance with Section 39 of the IRR of RA 9184

XVIII Settlement of Disputes

The Government Procurement Policy Board

XXII Civil Liability

Guide to Questions and Topics

Joint Ventures; PPP projects.

Integrated package; National

Engineering Services; General

Contract Extension; nonenactment of annual fiscal

Guidelines; CSOs ; NGOs; Project

Should the provisions of R.A. 9184 apply to a

emergency case and extend contracts for

Local Water District Office;MultiYear Contract; Septage treatment

Electronic filing; Manual