Salient IRR Revisions

1. Salient IRR Revisions Standardized Bidding Procedures Goods, Infra, Consulting

2. IRR Revisions: • Eligibility Requirements (Sec. 23) • Legal Documents • DTI / SEC / CDA Registration • Mayor’s permit for principal place of business • Technical Documents • Statement of all on-going and completed contracts • PCAB license and registration (Infra only) • Unless otherwise stated in treaty or international or executive agreement • Statement of the consultant’s nationality and Key staff’s confirmation that they are registered professionals (consulting only)

3. IRR Revisions: • Eligibility Requirements (Sec. 23) • Financial Documents • Latest Audited Financial Statements • NFCC computation or Credit Line Commitment from a universal or commercial bank (goods and infra only) • For LGUs, other banks authorized by BSP to issue said instrument

4. IRR Revisions: Eligibility Requirements Class “B” Documents: If Joint Venture - JVA If no JVA, sworn statements by each partner that they will enter into and abide by provisions of the JVA if awarded the contract

5. IRR Revisions: • Eligibility Requirements (Sec. 23) • If foreign bidder - • Submit equivalent documents issued by country • Accompanied by English translation certified by appropriate embassy or consulate in the Philippines

6. IRR Revisions: • Eligibility Criteria (Sec. 23) • Legal Eligibility (Goods) • General rule: 60% Filipino • Foreign bidders eligible allowed – • If stated in treaty, international or executive agreement • National of a country offering reciprocity rights to Filipinos • Goods not available from local suppliers • To prevent situations that defeat competition or restrain trade

7. IRR Revisions: • Eligibility Criteria (Sec. 23) • Legal Eligibility (Infra) • General rule: 75% Filipino (LOI 630) • If joint venture, less than 75% is allowed if - • Not less than 25% Filipino • Structures to be built require techniques not possessed by 75% Filipinos • Foreign contractors allowed if stated in treaty or international or executive agreement

8. IRR Revisions: Goods Eligibility Criteria (Sec. 23) Technical Eligibility (Goods) - Single Largest Contract

9. IRR Revisions: • Eligibility Criteria (Sec. 23) • Technical Eligibility (Infra) • Track Record: Single Largest Contract • Retain at 50% • But within a period of ten years • For foreign funded procurement, a different track record may be agreed upon

10. IRR Revisions: • Eligibility Criteria (Sec. 23) • Technical Eligibility (Infra) • PCAB License (RA 4566) • Satisfactory CPES Rating and/or certificate of completion and acceptance

11. IRR Revisions: • Eligibility Criteria (Sec. 23) • Financial Eligibility (Goods and Infra) • NFCC at least equal to ABC • Credit Line Certificate at least equal to 10% of ABC • Issued by Universal or Commercial Bank • For LGUs: other banks certified by BSP as authorized to issued said CLC • Option to submit cash deposit certificate deleted

12. IRR Revisions: • Submission and Receipt of Bids (Sec. 25) • Two-Envelope System (Eligibility requirements included in the Technical Proposal) • In Infrastructure Projects, Technical (incl. eligibility requirements) and Financial Proposals will now be submitted at the same time

13. IRR Revisions: • Submission and Receipt of Bids (Sec. 25) • First Envelope • Eligibility requirements • Bid security • Technical specifications (goods)/ Project Requirements (infra) • Approach, work plan and schedule (consulting only) • List of key personnel (consulting only) • Omnibus sworn statement

14. IRR Revisions: • Submission and Receipt of Bids (Sec. 25) • Second Envelope • Financial information/documents specified in the Philippine Bidding Documents

15. IRR Revisions: • Notice of Award (Sec. 37) • Conditioned on the following: • If joint venture, submission of JVA • Posting of Performance Security • Signing of Contract • If required, approvals by higher authority

16. IRR Revisions: • Domestic and Foreign Goods (Sec. 43) • Requires procuring entity to give preference to domestic entities and to materials and supplies produced, made, and manufactured in the Philippines (domestic bidder). • Domestic entities can only claim preference if certified by SEC/DTI/CDA • Domestic bidder can only claim preference if certified by DTI

17. IRR Revisions: • Domestic and Foreign Goods (Sec. 43) • Domestic entities (Sec. 5 [k]) • 75% Filipino • Habitually established in business and engaged in the manufacture or sale of product to be bid • In existence for at least 5 consecutive years • Domestic entities can only claim preference if certified by SEC/DTI/CDA

18. IRR Revisions: • Domestic and Foreign Goods (Sec. 43) • Domestic bidder (Sec. 5 [j]) • Any person or entity • Offering articles/materials/supplies • If unmanufactured, grown or produced in the Philippines • If manufactured, substantially from those grown or produced in the Philippines • Domestic bidder can only claim preference if certified by DTI

19. IRR Revisions • Domestic and Foreign Goods (Sec. 43) • Provides procedures in determining entitlement to domestic preference • Applied only where the lowest bid has a foreign component (foreign bid/entity) and the next lowest bid has a domestic component (domestic bidder/entity)

20. SAMPLE APPLICATION OF PREFERENCE Sample Computation

21. IRR Revisions: • Warranty Security – Goods (Sec. 62) • Expendable Supplies – 3 months, unless consumed earlier • Non-expendable Supplies – 1 year

22. IRR Revisions: • Warranty Security – Infra (Sec. 62) • Warranty period vs. Warranty security period • Warranty security period reduced to 1 year • Liability per stage • From project construction to final acceptance • From project completion to final acceptance • From final acceptance to warranty security period

23. IRR Revisions: • Liquidated Damages (Sec. 68) • Adopted formula of Goods • One-tenth of one percent (1%) of the cost of the unperformed portion for every day of delay

24. IRR Revisions: • Advance Payment for Goods • Goods supplied from abroad • 10% advance payment allowed • Upon submission of a bank guarantee • Equivalent amount • Valid until goods are delivered

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