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Modes of procurement alternative methods of procurement

Modes of procurement alternative methods of procurement. Alternative Methods. General Rule: Public Bidding APP provides sufficient lead time for bidding Resort to Alternative Methods allowed - Highly exceptional cases To promote economy and efficiency

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Modes of procurement alternative methods of procurement

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  1. Modes of procurementalternative methods of procurement

  2. Alternative Methods • General Rule: Public Bidding • APP provides sufficient lead time for bidding • Resort to Alternative Methods allowed - • Highly exceptional cases • To promote economy and efficiency • Justified by conditions specified in IRR • Recommended by BAC • Approved By HOPE

  3. Alternative Methods • 5 Alternative Methods of Procurement: • Limited Source Bidding • Direct Contracting • Repeat Order • Shopping • Negotiated Procurement

  4. Applicability: • Goods • Conditions: • Items of proprietary nature from proprietary source • Critical components from a specific supplier to hold a contractor to guarantee its project performance • Items sold by an exclusive manufacturer or dealer • no other suppliers selling it at lower prices • no suitable substitute can be obtained at more • advantageous terms to the Government • Deleted the word “plant” – Resolution No. 11 - 2009 Direct Contracting

  5. Applicability: • Goods • Conditions: • Same or lower unit prices, provided that such prices are still the most advantageous to the GOP after price verification • No splitting of contracts • Availed of within 6 mos. from the contract effectivity date stated in the NTP arising from the original contract, except in cases duly approved by the GPPB • Not to exceed 25% of the quantity of each item • Original contract awarded through competitive bidding Repeat Order

  6. Applicability of Shopping [§§52.1(a) and (b)]: • Goods • Conditions [Shopping under §52.1(a)]: • There is an unforeseen contingency requiring immediate purchase • Amount does not exceed the threshold (PhP 50,000.00, Annex H, IRR of R.A. 9184) • Conditions [Shopping under §52.1(b)]: • Procurement of ordinary or regular office supplies and equipment not available in PS-DBM • Amount does not exceed the threshold (PhP 50,000.00, Annex H, IRR of R.A. 9184) Shopping & Small Value

  7. Applicability of Small Value Procurement [§53.9]: ALL • Conditions: • Procurement does not fall under Shopping [§52] • Amount does not exceed the threshold (PhP 50,000.00, Annex H, IRR of R.A. 9184) Shopping & Small Value

  8. Resolution No. 09 – 2009, dated 17 Dec. 2009 General Guidelines: • Decision to resort to shopping/small value procurement done in context of APP • Splitting of contracts is strictly prohibited • After approval, BAC may delegate execution to the appropriate bureau, committee or support unit. Shopping & Small Value

  9. Shopping & Small Value • Procedural Guidelines

  10. Resolution No. 09 – 2009, dated 17 Dec. 2009 Procedural Guidelines: • RFQ should indicate the following: a. Specification; b. Quantity; c. ABC; d. Terms and conditions of the item to be procured; and e. Manner by which price quotation must be submitted (i.e. open or sealed quotations) Shopping & Small Value

  11. Procedural Guidelines • Information relating to examination, evaluation & comparison of price quotations shall be kept confidential & should not be disclosed to any other party except to those officially concerned until award • Post RFQ for 7 cd in the website of PhilGEPS and procuring entity concerned, if available, and at any conspicuous places; Exceptions: • When there is an unforeseen contingency requiring immediate purchase under Sec. 52.1(a) • RFQs with ABCs equal to Php 50,000.00 and below. Shopping & Small Value

  12. Procedural Guidelines: • Post awards in the website of PhilGEPS and procuring entity, if available, and at any conspicuous place except those with ABCs equal to Php. 50,000.00 and below • Procuring entity must validate whether it is entering into a contract with a technically, legally and financially capable supplier, contractor or consultant by requiring the submission of relevant documents or through other means. Shopping & Small Value

  13. Applicability: • ALL • Conditions: • Two Failed Biddings • Emergency Cases • Take-Over of Contracts • Adjacent or Contiguous • Agency-to-Agency • Procurement Agents • Highly Technical • Defense Cooperation Agreement • Lease of Real Property or Venue • Small Value • NGO Participation • Community Participation • UN Agencies Negotiated Procurement

  14. Applicability: ALL • Conditions: • Two failed biddings • Mandatory review of the following: • Minimum technical specifications • ABC, which may be adjusted up to 20% from last bidding • Invite sufficient number to ensure competition • Information communicated on an equal basis Negotiated ProcurementTwo Failed Biddings

  15. Simultaneous negotiations • Submission of best and final offer on a specified date • Successful offer to be selected: • Meet minimum technical specifications • Does not exceed ABC • Observers shall be invited in all stages Negotiated ProcurementTwo Failed Biddings

  16. Applicability: ALL • Conditions: • Imminent danger to life or property during a state of calamity • When time is of the essence arising from natural or man-made calamities • Other causes where immediate action is necessary: • To prevent damage to or loss of life or property • To restore vital public services, infrastructure facilities, and other public utilities • Negotiate with any supplier, contractor, or consultant with technical, legal, and financial capability Negotiated ProcurementEmergency Cases

  17. Applicability: ALL • Conditions: • Rescinded or terminated contract • Immediate action is necessary: • To prevent damage to or loss of life or property • To restore vital public services, infrastructure facilities, and other public utilities • Negotiate starting with the 2nd LCB or HRB at the bidder’s original bid price, then to the next if negotiation fails • If negotiation fails, invite a short list of at least 3 to submit bids and negotiate starting with the LCB or HRB Negotiated ProcurementTake – Over of Contracts

  18. Applicability: ALL • Conditions: • Cost-benefit analysis indicating A-to-A is more efficient and economical • A-to-A does not exceed 25% of PE’s total budget for each category (goods, infra, consulting) • Servicing agency has mandate to undertake the project • Servicing agency owns or has access to necessary tools required for the project • Other requirements provided in Implementing Guidelines on Agency-to-Agency Arrangements (GPPB Resolution 18-2007) Negotiated ProcurementAgency to Agency

  19. Applicability: ALL • Condition: • HOPE has determined that PE does not have procurement proficiency or capability to undertake a particular procurement • Actions available: • Request other GOP agencies to undertake such procurement for them • Recruit and hire consultants or procurement agents to assist them directly and/or train their staff in the management of the procurement function Negotiated ProcurementProcurement Agents

  20. Applicability: ALL • Conditions: • In the interest of project sustainability or to achieve certain specific social objectives • PE to propose procedures, specifications, and contract packaging for GPPB approval Negotiated ProcurementCommunity Participation

  21. Alternative Methods Other Terms and Conditions: • Most advantageous price for government should be obtained (Sec. 48.1) • Splitting of contracts strictly prohibited (Sec. 54.1) • Posting NOT necessary, except: • Shopping [Sec. 52.1(b)] • Except: PhP50,000 and below • Small Value Procurement [Sec. 53.9] • Except: PhP50,000 and below • Two Failed Biddings [Sec. 53.1] • NGO Participation [Sec. 53.11] • Lease of Real Property [Sec. 53.10], if > PhP50,000

  22. Alternative Methods • ALL awards should be posted, except • Shopping and Small Value Procurement with ABC of PhP50,000 and below • Bid security NOT necessary, except in Limited Source Bidding • Performance and warranty securities necessary, except: • Shopping [Sec. 52] • Emergency Cases [Sec. 53.2] • Small Value Procurement [Sec. 53.9] • Lease of Real Property [Sec. 53.10] • Procurement from UN agencies [Sec. 53.13]

  23. Applicability: Infrastructure Projects • Conditions: • Implementing Agency (IA) must have a track record of having completed or supervised a project by admin or by contract, similar to and with a cost of at least 50% of the project at hand, and • IA owns or has access from other government agencies to necessary tools and construction equipment required for the project • Other requirements provided in Guidelines for the Implementation of Infrastructure Projects By Administration(GPPB Resolution 18-2006, as amended by GPPB Resolution No. 07 – 2009) By Administration

  24. Increase in thresholds in the 2009 & 2010 GAA • Any project costing < Php. 20,000,000.00 may be undertaken by administration or force account • Project costing over Php. 20,000,000.00 should obtained the ff: • Authority from the DPWH Secretary - Php. 20,000,000.00 - Php. 50,000,000.00), • Authority from the President of the Philippines, upon the DPWH Secretary’s favorable recommendation - more than Php. 50,000,000.00. By Administration

  25. Comments, questions? Thank you

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