1. ALTERNATIVE METHODS OF PROCUREMENT
CAPACITY DEVELOPMENT DIVISION
Government Procurement Policy Board
Technical Support Office (GPPB-TSO)

2. PROCUREMENT STANDARD GENERAL RULE : Sec. 10
All procurement shall be done through competitive bidding, except as provided in Rule XVI of the IRR.
EXCEPTION
Alternative methods shall be resorted only:
In highly exceptional case
To promote economy and efficiency
Justified by the conditions specified in IRR
Prior approval of the HOPE
GPPB approval as required under EO 423, S (as amended)
Most advantageous price for the Government
Procuring Entity (PE) shall see to it that the procurement program allows sufficient lead time for public bidding. If original mode indicated in APP is public bidding but cannot be ultimately pursued, the BAC shall prepare a resolution with a justification recommend to the HOPE the change in the mode of procurement and must bear approval

3. ALTERNATIVE METHODS Limited Source Bidding Direct Contracting
Repeat Order
Shopping
Negotiated Procurement

4. LIMITED SOURCE BIDDING (Sec. 49)
APPLICABILITY:
Goods
Consulting services
CONDITIONS:
Highly specialized types where only a few bidders are known to be available
Major plant components beneficial to limit bidding to known qualified bidders to maintain uniform quality and performance of the plant
Selective Bidding and involves direct invitation to bid from the list of pre-selected suppliers or consultant (i.e sophisticate defense equipment, complex air navigation systems, coal).resorting to Public Bidding will not likely result in any additional supplier or consultant.

5. LIMITED SOURCE BIDDING
List shall be maintained by the relevant government authority (RGA)
PE may be the relevant government authority
List shall be updated periodically and submitted to the GPPB
Pre-selection shall based on capability and resources to perform the contract taking into account:
Experience and past performance on similar contracts
Capabilities with respect to personnel, equipment, and/or manufacturing facilities
Financial position

6. LIMITED SOURCE BIDDING
PRE-SELECTION PROCEDURES PER GPM GPPB Resolution
PE through BAC identifies LSB as applicable mode
Acquires/Issues a Pre-selected List
HOPE transmits list to the GPPB
GPPB-TSO acknowledges receipt and posts the list in the website (ministerial)
PE posts procurement opportunity and conducts LSB
BAC submits (together with TS/TOR and specific criteria used for the evaluation of the pre-selected suppliers) the recommended pre-selected list to HOPE for approval and submit the same to GPPB together with certification justifying the recourse to LSB, compliance to procedure set and said suppliers are known

7. LIMITED SOURCE BIDDING
PRE-SELECTION PROCEDURES GPPB Resolution
Relevant Government Authority?
PE represents itself as the RGA (self-generated list
Issues a List?
Competitive Bidding
Limited Source Bidding
Request for a List Y N
PE as RGA shall establish, attests and confirms that it has expertise on the procurement at hand by virtue of its mandate and nature of functions and operations . Submission to GPPB accompanied with HOPE certification that it has expertise on the subject procurement

8. LIMITED SOURCE BIDDING
In order to apply LSB on the procurement of motor vehicle, 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, Competitive Bidding shall apply. (NPM )
Catering Services does not involve highly specialized requirements, and is undoubtedly not a major plant component. Limited Source Bidding cannot be resorted to in the procurement of Catering Services. Competitive Bidding should be resorted to in the acquisition of the contemplated service. (NPM )

9. DIRECT CONTRACTING 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

10. DIRECT CONTRACTING
Since there are other Passport Readers available in the market apart from that manufactured by 3M Corporation, Direct Contracting cannot be utilized for the acquisition of brand new passport readers.
Even though 3M Passport Reader is proprietary in nature and can be obtained from the proprietary source, there may be other Passport Readers in the market, which are likewise proprietary in nature that can be obtained. (NPM )

11. REPEAT ORDER 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 months 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

12. REPEAT ORDER
Repeat Order under Section 51 of RA 9184 does not require post-qualification.
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. (NPM )

13. SHOPPING APPLICABILITY [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
CONDITIONS [SHOPPING UNDER §52.1(B)]:
Procurement of ordinary or regular office supplies and equipment not available in PS-DBM

14. THRESHOLD FOR UNFORESEEN CONTINGENCIES [S. 52.1(a)]
NGAs, GOCCs, GFIs, SUCs – PhP100,000
LGUs –
Classification
Maximum Amount (in Philippine Pesos)
Province
City
Municipality
1st Class
100,000
50,000
2nd Class
3rd Class
80,000
4th Class
60,000
5th Class
6th Class
In the case of Barangays, the maximum amount is PhP50,000

15. NEGOTIATED PROCUREMENT SMALL VALUE PROCUREMENT
APPLICABILITY
All types of Procurement
CONDITIONS:
Procurement does not fall under Shopping [§52]
Amount does not exceed the threshold

16. SHOPPING [S 52.1(b)] AND SMALL VALUE PROCUREMENT
NGAs, GOCCs, GFIs, SUCs – PhP500,000
LGUs –
Classification
Maximum Amount (in Philippine Pesos)
Province
City
Municipality
1st Class
500,000
100,000
2nd Class
3rd Class
400,000
4th Class
300,000
50,000
5th Class
200,000
6th Class
In the case of Barangays, the maximum amount is PhP50,000

17. SHOPPING and SMALL VALUE PROCUREMENT
Decision to resort to shopping/SVP shall be reflected in the Annual Procurement Plan (APP)
After approval, BAC may delegate execution
Posting in PhilGEPS required if amount is > PhP50,000
Request for Quotation
Extension of deadline for submission of quotation
Award
PE to validate legal, technical, and financial capability through relevant documents or other means

18. SHOPPING and SMALL VALUE PROCUREMENT COMMITTEE (SSVPC)
Attach copy of DILG Department Order

19. SHOPPING and SMALL VALUE PROCUREMENT
PROCEDURAL GUIDELINES:
Prepare RFQ
Send RFQ to at least 3 suppliers
[may be 1 in case of 52.1(a)]
Prepare Abstract of Quotations
Extend deadline if no quotation is received
Award to LCB/HRB that complies with specs and ABC

20. NEGOTIATED PROCUREMENT TWO FAILED BIDDINGS
APPLICABILITY
All types of Procurement
CONDITIONS:
Two failed biddings
Mandatory review of the following:
Minimum technical specifications
ABC, which may be adjusted up to 20% from last bidding

21. NEGOTIATED PROCUREMENT TWO FAILED BIDDINGS
BAC shall invite and engage in negotiations with sufficient number of suppliers, contractors or consultants to ensure effective competition
Requirements, guidelines, documents, clarifications, or other information relative to the negotiations shall be communicated on an equal basis

22. NEGOTIATED PROCUREMENT TWO FAILED BIDDINGS
Submission of best and final offer by suppliers, contractors, or consultants on a specified date.
Criteria in selecting the successful offer:
Offer should meet the PE’s minimum technical requirements.
Offer should not exceed ABC
Observers shall be invited in all stages

23. NEGOTIATED PROCUREMENT TWO FAILED BIDDINGS
PROCEDURAL GUIDELINE
Preparation of RFQ
Invitation of bidders
Submission and opening of 1st offer
Negotiation with bidders
Submission and opening of best and final offer (2nd offer)
Awarding of contract

24. NEGOTIATED PROCUREMENT TWO FAILED BIDDINGS
Where the PE failed to receive any quotations for the procurement of the services of a private counsel despite posting twice in the PhilGEPS website, the procuring entity has the discretion to resort to alternative methods of procurement, subject to compliance with the parameters and factors laid out in RA 9184 and its associated IRR. (NPM )

25. NEGOTIATED PROCUREMENT TWO FAILED BIDDINGS
PE can only resort to 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.
If the failure of bidding is due to the declaration by the HOPE pursuant to Section 41 of the IRR , Negotiated Procurement (Two Failed Biddings) cannot be resorted to. (NPM )

26. NEGOTIATED PROCUREMENT EMERGENCY CASES
APPLICABILITY:
All types of Procurement
CONDITIONS:
In case of 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

27. NEGOTIATED PROCUREMENT TAKE-OVER OF CONTRACTS
APPLICABILITY:
All types of Procurement
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

28. NEGOTIATED PROCUREMENT TAKE-OVER OF CONTRACTS
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

29. NEGOTIATED PROCUREMENT ADJACENT OR CONTIGUOUS
APPLICABILITY:
Infrastructure
Consulting Services
CONDITIONS:
Subject contract is adjacent or contiguous to an on-going infra or consulting
Original contract is a result of competitive bidding
Subject contract has similar or related scopes of work

30. NEGOTIATED PROCUREMENT ADJACENT OR CONTIGUOUS
Within the contracting capacity of the contractor/consultant
The same prices or lower unit prices as the original contract less mobilization cost
Amount does not exceed amount of the on-going project
No negative slippage
Negotiations commenced before expiry of original contract

31. NEGOTIATED PROCUREMENT AGENCY TO AGENCY
APPLICABILITY:
All types of Procurement
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 )

32. NEGOTIATED PROCUREMENT AGENCY TO AGENCY
PITC Pharma, Inc. (PPI) has been given express mandate to be the central/lead agency for procurement of all government agencies’ requirements for drugs and medicines pursuant to RA However, RA 9501 does not exempt it from the procurement policies, rules and regulations established under RA 9184 and its IRR.
PPI is not exempt from posting a Performance Security under §39 of RA 9184 and its IRR when entering into a contract with other government agencies and the PE requires such security. (NPM )

33. NEGOTIATED PROCUREMENT AGENCY TO AGENCY
For the procurement of CTC, the more appropriate method to be used is A to A rather than Direct Contracting
In cases where procurement from another agency of the government is more efficient and economical, Negotiated Procurement under Section 53.5 (Agency-to-Agency Agreements) may be resorted to. This rule allows a government entity to procure from another government entity without need of public bidding, subject to compliance with the prescribed conditions and procedures under existing rules and the Guidelines on Agency-to-Agency Agreements (Guidelines). (NPM )

34. NEGOTIATED PROCUREMENT PROCUREMENT AGENT
APPLICABILITY:
All types of Procurement
CONDITIONS:
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

35. NEGOTIATED PROCUREMENT PROCUREMENT AGENT
Where a PE has determined that it lacks the proficiency or capability to undertake its rehabilitation project, which need not be based solely on the PE’s failure to constitute its BAC, the PE may request another government agency to be its Procurement Agent as Section 53.6 of the IRR may also apply in cases where a BAC is validly constituted, but due to the number of bidding activities to be undertaken by the procuring entity; magnitude and complexity of the project; experience of the members of the BAC; location and situs of both the principal and the agent; and, other valid and reasonable circumstances, the procuring entity may not have the proficiency or capability to undertake the particular procurement activity. (NPM )

36. NEGOTIATED PROCUREMENT HIGHLY TECHNICAL PROCUREMENT
APPLICABILITY:
Consulting Services
CONDITIONS:
Individual consultant
Work involves:
Highly technical or proprietary
Primarily confidential or policy determining, where trust and confidence are the primary consideration
Term is, at the most, 6 months, renewable at the option of the appointing HOPE, but in no case to exceed the term of the latter

37. NEGOTIATED PROCUREMENT LEASE OF REAL PROPERTY
APPLICABILITY:
Goods (Real Estate and Venue)
CONDITIONS:
Cost-benefit analysis indicating leasing privately-owned real estate or venue is more efficient and economical
APP reflect the proposed lease
Selection to follow the guidelines (GPPB Resolution )
Eligibility documents need not be submitted, but PE must validate whether lessor is technically, legally, and financially capable through other means
Lease contracts costing > PhP50,000 should be posted in the PhilGEPS

38. NEGOTIATED PROCUREMENT NGO PARTICIPATION
APPLICABILITY:
All types of Procurement
CONDITIONS:
Appropriation law or ordinance earmarks an amount to be contracted to NGOs
PE may opt to conduct public bidding or negotiated procurement for the selection of NGO, subject to the rules provided in the guidelines (GPPB Resolution )

39. NEGOTIATED PROCUREMENT COMMUNITY PARTICIPATION
APPLICABILITY:
Delivery of goods, including non-consulting services and simple infrastructure projects
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
RESOLUTION NO

40. NEGOTIATED PROCUREMENT UN AGENCIES
APPLICABILITY:
All types of Procurement
CONDITIONS:
Procure from UN Agencies
Small quantities of off-the-shelf goods, primarily in the fields of education and health
Specialized products where the number of suppliers is limited (e.g., vaccines or drugs)

41. OTHER TERMS AND CONDITIONS
Most advantageous price for government should be obtained (S48.1)
Splitting of contracts strictly prohibited (S54.1)
Advertisement and posting for the following methods may be dispensed with provided that the BAC through its Secretariat shall post the Invitation or Request for Submission of Price Quotations:
Shopping [§52.1(b)]
Except: PhP50,000 and below
Negotiated Procurement under Two Failed Biddings [§53.1]
NGO Participation [§53.11]
Small Value Procurement [§53.9]
GPPB Resolution No , included NGO Participation

42. OTHER TERMS AND CONDITIONS
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 [§52]
Emergency Cases [§53.2]
Small Value Procurement [§53.9]
Lease of Real Property [§53.10]
Procurement from UN agencies [§53.13]

43.   SUMMARY Method Goods Infrastructure Consulting
1. Limited Source Bidding  
2. Direct Contracting
3. Repeat Order
4. Shopping
5. Negotiated Procurement

44. Negotiated Procurement
SUMMARY
Negotiated Procurement
Goods
Infra
Consulting
1. Small Value Procurement 
2. Two Failed Biddings
3. Emergency Cases
4. Take Over Contracts
5. Adjacent or Contiguous 
6. Agency to Agency

45. Negotiated Procurement
SUMMARY
Negotiated Procurement
Goods
Infra
Consulting
7. Procurement Agent 
8. Highly Technical Consultants 
9. Lease of Real Property
10. NGO Participation
11. Community Participation
12. UN Agencies

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