Salient IRR Revisions Standardized Bidding Procedures Goods, Infra, Consulting

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)

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

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

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

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

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

IRR Revisions: Goods Eligibility Criteria (Sec. 23) Technical Eligibility (Goods) - Single Largest Contract General RuleExceptionsThen require the ff.: 1.Expendable Supplies 25% of the ABC 2.Services and Non- expendable Supplies 50% of the ABC If, at the outset and after market research, applying the general rule will likely result to: 1.Failure of bidding; or 2.Monopoly a)At least 2 similar contracts aggregate amount at least equivalent to required percentage; and b)Largest of the similar contracts amounts to at least 50% of required percentage 8

IRR Revisions: Eligibility Criteria (Sec. 23) Expendable Supplies (Sec. 5 [m]) Articles normally consumed within 1 year or value is substantially decreased after 1 year Examples: medicines, stationery, fuel, and spare parts

IRR Revisions: Eligibility Criteria (Sec. 23) Non-expendable Supplies (Sec. 5 [w]) Not consumed in use Serviceable life more than 1 year Examples: furniture, fixtures, transport, and other equipment

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

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

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

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

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

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

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

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

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

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

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)

SAMPLE APPLICATION OF PREFERENCE Lowest Calculated Bid Next Lowest Calculated Bid Foreign BidderDomestic Bidder/Entity Bid 2,653, ,009, % Preference x 15% 398, ,653, Bid as increased3,051, ,009, Result Award to Domestic Bidder/Entity at 2,653,360.00, or Award to Foreign Bidder if Domestic Bidder/Entity refuses Sample Computation

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

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

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

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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