THE GOVERNMENT PROCUREMENT REFORM ACT (RA No.

9184) AND ITS REVISED IMPLEMENTING

RULES AND REGULATIONS

State Policy:
Commitment of the government to promote good governance and its effort to adhere to the principles of
transparency, accountability, equity, efficiency, and economy in its procurement process. It is the policy of the
government that procurement of Goods, Infrastructure Projects, and Consulting Services shall be competitive and
transparent, and therefore shall undergo competitive bidding.

Governing Principles:
a. Transparency in the procurement process and in the implementation of procurement contracts.
b. Competitiveness by extending equal opportunity to enable private contracting parties to participate in
competitive bidding.
c. Streamlined procurement process that will uniformly apply to all government procurement.
d. System of accountability where both the public officials directly or indirectly involved in the procurement
process as well as in the implementation of procurement contracts and the private parties that deal with
government are investigated and held liable for their actions relative thereto.
e. Public monitoring of the procurement process and the implementation of awarded contracts.

Scope and Application:

RA No. 9184 and its Revised IRR shall apply to all procurement of any branch, agency, department, bureau,
office, or instrumentality of the Government of the Philippines (GoP), including government-owned and/or -
controlled corporations (GOCCs), government financial institutions (GFIs), state universities and colleges (SUCs),
and local government units (LGUs).

The following are not covered by RA No. 9184 and its Revised IRR:
a. Procurement of Goods, Infrastructure Projects and Consulting Services funded from Foreign Grants
covered by R.A. 8182, as amended by R.A. 8555
b. Acquisition of real property which shall be governed by R.A. 107523
c. Public-Private sector infrastructure or development projects and other procurement covered by R.A. 6957,
as amended by R.A. 7718

The following are not procurement activities covered by RA No. 9184 and its Revised IRR:
a. Direct financial or material assistance given to beneficiaries
b. Participation in local or foreign scholarships, trainings, continuing education, conferences, seminars or
similar activities
c. Lease of government-owned property as lessor for private use
d. Hiring of Job Order Workers
e. Joint Venture under the revised NEDA Guidelines, and Joint Venture Agreements by LGU with Private
entities
f. Disposal of property and other assets of the government

Definition of Terms

Approved Budget for the Contract (ABC)- refers to the budget for the contract duly approved by the Head of
Procuring Entity (HoPE), as provided for in the General Appropriations Act (GAA), continuing, and automatic
appropriations, in the case of national government agencies (NGAs); the corporate budget for the contract
approved by the governing board in the case of GOCCs and GFIs, and in the case of SUCs; the budget approved
by the Sanggunian through an appropriations ordinance in the case of LGUs.

Bid- refers to a signed offer or proposal to undertake a contract submitted by a bidder in response to and in
consonance with the requirements of the bidding documents.

Bidder- refers to a contractor, manufacturer, supplier, distributor and/or consultant who submits a bid in
response to the requirements of the bidding documents.

Bidding Documents- refer to the documents issued by the Procuring Entity as the basis for bids, furnishing all
information necessary for a prospective bidder to prepare a bid for the Goods, Infrastructure Projects and/or
Consulting Services required by the Procuring Entity.

Bids and Awards Committee (BAC)- refers to the committee established to undertake the functions specified
in Section 12 of the Revised IRR in order to facilitate professionalization and harmonization of procedures and
standards. The HoPE shall designate at least five (5) but not more than seven (7) members to the BAC of
unquestionable integrity and procurement proficiency. The BAC shall have the following functions:
a. advertise and/or post the invitation to bid/request for expressions of interest;
b. conduct pre-procurement and pre-bid conferences;
c. determine the eligibility of prospective bidders;
d. receive and open bids;
e. conduct the evaluation of bids;
f. undertake post-qualification proceedings;
g. resolve requests for reconsideration;
h. recommend award of contracts to the HoPE or his duly authorized representative;
i. recommend the imposition of sanctions;

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 j. recommend to the HoPE the use of Alternative Methods of Procurement;
k. conduct any of the Alternative Methods of Procurement;
l. conduct periodic assessment of the procurement processes and procedures to streamline procurement
activities; and
m. perform such other related functions as may be necessary, including the creation of a Technical Working
Group (TWG) from a pool of technical, financial, and/or legal experts to assist the BAC.

Competitive Bidding- refers to a method of procurement which is open to participation by any interested party
and which consists of the following processes: advertisement, pre-bid conference, eligibility screening of
prospective bidders, receipt and opening of bids, evaluation of bids, post-qualification, and award of contract. All
procurement shall be done through competitive bidding, except as provided under Rule XVI of the Revised IRR.

Government Procurement Policy Board (GPPB)- refers to the body created in accordance with Rule XX of
the Revised IRR.

Head of the Procuring Entity (HoPE)- refers to: (a) the head of the agency or body, or his duly authorized
official, for NGAs and the constitutional commissions or offices, and other branches of government; (b) the
governing board or its duly authorized official, for GOCCs, GFIs and SUCs; or (c) the local chief executive, for
LGUs.

Philippine Government Electronic Procurement System (PhilGEPS)- refers to the electronic system to
serve as the primary and definitive source of information on government procurement.

Procurement- refers to the acquisition of goods, consulting services, and the contracting for infrastructure
projects by the procuring entity.

Infrastructure Projects- these include the construction, improvement, rehabilitation, demolition, repair,
restoration or maintenance of roads and bridges, railways, airports, seaports, communication facilities, civil works
components of information technology projects, irrigation, flood control and drainage, water supply, sanitation,
and the like. “Infrastructure Projects” shall have the same meaning as, and shall be used interchangeably with,
“civil works” or “works.”

Goods- refer to all items, supplies, materials and general support services, which may be needed in the
transaction of public businesses or in the pursuit of any government undertaking, project or activity, whether in
the nature of equipment, furniture, stationery, materials for construction, or personal property of any kind,
including non-personal or contractual services, such as, the repair and maintenance of equipment and furniture,
as well as trucking, hauling, janitorial, security, and related or analogous services.

Consulting Services- refer to services for infrastructure projects and other types of projects or activities of the
government requiring adequate external technical and professional expertise that are beyond the capability and/or
capacity of the government to undertake such as, but not limited to: (i) advisory and review services; (ii) pre-
investment or feasibility studies; (iii) design; (iv) construction supervision; (v) management and related services;
and (vi) other technical services or special studies.

Procurement Procedures:
a. Preparation of bidding documents
b. Invitation to bid
c. Receipt and opening of bids
d. Bid evaluation
e. Post-qualification
f. Award, implementation, and termination of the contract

Bidding Process for Procurement of Goods and Infrastructure Projects

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Bidding Process for Procurement of Consulting Services

*QBE- Quality Based Evaluation

*QCBE- Quality Cost Based Evaluation

1. Preparation of Bidding Documents

Forms and Contents of Bidding Documents

The Bidding Documents shall be prepared by the Procuring Entity following the standard forms and manuals
prescribed by the GPPB. The Bidding Documents shall include the following:
a. ABC;
b. Invitation to Bid/Request for Expression of Interest;
c. Eligibility Requirements;
d. Instructions to Bidders;
e. Terms of Reference for Consulting Services;
f. Scope of work, where applicable;
g. Plans/Drawings and Technical Specifications;
h. Form of Bid, Price Form, and List of Goods or Bill of Quantities;
i. Delivery Time or Completion Schedule;
j. Form, Amount, and Validity Period of Bid Security;
k. Form, Amount, and Validity of Performance Security and Warranty; and
l. Form of Contract and General and Special Conditions of Contract.

Reference to Brand Names

Reference to brand names shall not be allowed except for items or parts that are compatible with the existing
fleet or equipment of the same make and brand, and to maintain the performance, functionality and useful life of
the equipment.

2. Invitation to Bid

Pre-procurement Conference
Prior to the advertisement or the issuance of the Invitation to Bid/Request for Expression of Interest for each
procurement undertaken through a competitive bidding, the BAC, through its Secretariat, shall call for a pre-
procurement conference. During this conference, the participants, led by the BAC, shall:
a. Confirm the description and scope of the contract, the ABC, and contract duration;
b. Ensure that the procurement is in accordance with the Project Procurement Management Plan (PPMP) and
Annual Procurement Plan (APP);
c. Determine the readiness of the procurement at hand;
d. Review, modify and agree on the criteria for eligibility screening, evaluation, and post-qualification;
e. Review and adopt the procurement schedule, including deadlines and timeframes, for the different
activities; and
f. Reiterate and emphasize the importance of confidentiality, and the applicable sanctions and penalties, as
well as agree on measures to ensure compliance with the foregoing.
The holding of a pre-procurement conference may not be required for small procurements, i.e., procurement
of Goods costing Two Million Pesos (₱2,000,000.00) and below, procurement of Infrastructure Projects costing
Five Million Pesos (₱5,000,000.00) and below, and procurement of Consulting Services costing One Million Pesos
(₱1,000,000.00) and below.

Advertising and Contents of the Invitation to Bid/Request for Expression of Interest

The Invitation to Bid/Request for Expression of Interest shall provide prospective bidders the following
information, among others:
a. For the procurement of:
 Goods, the name of the contract to be bid and a brief description of the goods to be procured;

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  Infrastructure Projects, the name and location of the contract to be bid, the project background and
other relevant information regarding the proposed contract works, including a brief description of the
type, size, major items, and other important or relevant features of the works; and
 Consulting services, the name of the contract to be bid, a general description of the project and other
important or relevant information;
b. The name of the project, identification and number of lots or items specific to the bidding, as well as the
basis of evaluation of the project, lots, or items, where applicable;
c. A general statement on the criteria to be used by the Procuring Entity for the eligibility check, the short
listing of prospective bidders, in the case of the procurement of Consulting Services, the examination and
evaluation of bids, post-qualification, and award;
d. The date, time and place of the deadline for the submission and receipt of the eligibility requirements, the
pre-bid conference if any, the submission and receipt of bids, and the opening of bids;
e. ABC for the project, lot, or item to be bid;
f. The source of funding;
g. The place, time and website where the Bidding Documents may be secured or downloaded, and, where
required, the price of the Bidding Documents;
h. The contract duration or delivery schedule;
i. The name, address, telephone number, facsimile number, e-mail and website addresses of the concerned
Procuring Entity, as well as its designated contact person; and
j. Such other necessary information deemed relevant by the Procuring Entity; and
k. For electronic bid submission, the Invitation to Bid, including the Bidding Documents shall clearly state
whether the PE shall allow the submission and receipt of bids through electronic means.

Advertising and Posting of the Invitation to Bid/Request for Expression of Interest

The Invitation to Bid/Request for Expression of Interest shall be:
a. Posted at any conspicuous place reserved for this purpose in the premises of the Procuring Entity
concerned for seven (7) calendar days as certified by the head of the BAC Secretariat of the Procuring
Entity concerned; and
b. Posted continuously in the PhilGEPS website, the website of the Procuring Entity concerned, if available,
and the website prescribed by the foreign government/foreign or international financing institution, if
applicable, for seven (7) calendar days starting on date of advertisement.

Pre-Bid Conference
For contracts to be bid with an ABC of One Million Pesos (₱1,000,000.00) or more, the BAC shall convene at
least one (1) pre-bid conference to clarify and/or explain any of the requirements, terms, conditions, and
specifications stipulated in the Bidding Documents. For contracts to be bid with an ABC of less than One Million
Pesos (₱1,000,000), pre-bid conferences may be conducted at the discretion of the BAC. The pre-bid conference
shall be held at least twelve (12) calendar days before the deadline for the submission and receipt of bids, but
not earlier than seven (7) calendar days from the PhilGEPS posting of the Invitation to Bid or Bidding Documents
and in the case of Consulting Services, from the determination of the shortlisted consultants.

Supplemental/Bid Bulletin
Requests for clarification(s) on any part of the Bidding Documents or for an interpretation must be in writing
and submitted to the BAC of the Procuring Entity concerned at least ten (10) calendar days before the deadline
set for the submission and receipt of bids. The BAC shall respond to the said request by issuing a Supplemental/Bid
Bulletin, duly signed by the BAC Chairperson, to be made available to all those who have properly secured the
Bidding Documents, at least seven (7) calendar days before the deadline for the submission and receipt of bids.

3. Receipts and Opening of Bids

Eligibility Requirements for the Procurement of Goods and Infrastructure Projects

Technical Component Envelope (First Envelope):

Class “A” Documents:
Legal Documents:
a. Valid PhilGEPS Registration Certificate (Platinum Membership)
Technical Documents:
b. Statement of the prospective bidder of all its ongoing government and private contracts, including
contracts awarded but not yet started, if any, whether similar or not similar in nature and complexity to
the contract to be bid
c. Statement of the bidder’s Single Largest Completed Contract (SLCC) similar to the contract to be bid
d. In the case of procurement of Infrastructure Projects, a valid Philippine Contractors Accreditation Board
(PCAB) License or Special PCAB License in case of Joint Ventures, and registration for the type and cost
of the contract to be bid
e. Original copy of Bid Security, if in the form of a Surety Bond, submit also a certification issued by the
Insurance Commission, or original copy of Notarized Bid Securing Declaration
f. In the case of procurement of Infrastructure Projects, Project Requirements, which shall include the
following:
 Organizational chart for the contract to be bid
 List of contractor’s key personnel to be assigned to the contract to be bid, with their complete
qualification and experience data
 List of contractor’s major equipment units
g. Original duly signed Omnibus Sworn Statement

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 Financial Documents:
h. The prospective bidder’s computation of Net Financial Contracting Capacity (NFCC)
NFCC= [(Current assets minus current liabilities) (K)] minus the value of all outstanding or uncompleted
portions of the projects under ongoing contracts, including awarded contracts yet to be started, coinciding
with the contract to be bid
K=15

Class “B” Documents:

i. If applicable, duly signed joint venture agreement (JVA) in accordance with RA No. 4566 and its IRR in
case the joint venture is already in existence; or duly notarized statements from all the potential joint
venture partners stating that they will enter into and abide by the provisions of the JVA in the instance
that the bid is successful.

Financial Component Envelope (Second Envelope):

j. Original of duly signed and accomplished Financial Bid Form
k. Original of duly signed Bid Prices in the Bill of Quantities
l. Duly accomplished Detailed Estimates Form, including a summary sheet indicating the unit prices of
construction materials, labor rates, and equipment rentals used in coming up with the Bid
m. Cash Flow by Quarter

Submission and Receipt of Bids

Bidders shall submit their bids through their duly authorized representative using the forms specified in the
Bidding Documents in two (2) separate sealed bid envelopes, or two (2) password-protected Bidding Documents
in compressed archive folders, in case of electronic bid submission, and which shall be submitted simultaneously.
The first shall contain the technical component of the bid, including the eligibility requirements for the procurement
of Goods and Infrastructure Projects, and the second shall contain the financial component of the bid.

Modification and Withdrawal of Bids

A bidder may modify its bid, provided that this is done before the deadline for the submission and receipt of
bids. A bidder may, through a letter, withdraw its bid before the deadline for the receipt of bids.

Bid Security
All bids shall be accompanied by a bid security, payable to the Procuring Entity concerned as a guarantee that
the successful bidder shall, within ten (10) calendar days from receipt of the notice of award, enter into contract
with the Procuring Entity and furnish the performance security. Failure to enclose the required bid security in the
form and amount prescribed herein shall automatically disqualify the bid concerned. The bidder shall submit a Bid
Securing Declaration, or any form of Bid Security, in an amount not less than the required percentage of the ABC
in accordance with the following schedule:

Amount of Bid Security (not less than

Form of Bid Security
the required percentage of ABC)
Cash or cashier’s/manager’s check issued by a
Universal or Commercial Bank. For biddings conducted
by LGUs, the cashier’s/manager’s check may be issued
by other banks certified by the BSP as authorized to
issue such financial instrument.
Bank draft/guarantee or irrevocable letter of credit
issued by a Universal or Commercial Bank; provided, Two percent (2%)
however, that it shall be confirmed or authenticated by
a Universal or Commercial Bank, if issued by a foreign
bank. For biddings conducted by LGUs, bank
draft/guarantee, or irrevocable letter of credit may be
issued by other banks certified by the BSP as
authorized to issue such financial instrument.
Surety bond callable upon demand issued by a surety
or insurance company duly certified by the Insurance Five percent (5%)
Commission as authorized to issue such security.

Bid Securing Declaration- is an undertaking which states, among others, that the bidder shall enter into
contract with the Procuring Entity and furnish the required performance security within ten (10) calendar days,
as indicated in the Bidding Documents, from receipt of the Notice of Award.

Bid Validity
Bids and bid securities shall be valid for a reasonable period as determined by the HoPE concerned, which
shall be indicated in the Bidding Documents, but in no case shall the period exceed one hundred twenty (120)
calendar days from the date of the opening of bids.

Bid Opening
The BAC shall open the bids immediately after the deadline for the submission and receipt of bids. The
bidders or their duly authorized representatives may attend the opening of bids. The abstract of bids as read and
the minutes of the bid opening shall be made available to the public upon written request and payment of a
specified fee to recover cost of materials.

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4. Bid Evaluation

Preliminary Examination of Bids

The BAC shall open the first bid envelopes in public to determine each bidder’s compliance with the documents
required to be submitted for eligibility and for the technical requirements. For this purpose, the BAC shall check
the submitted documents of each bidder against a checklist of required documents to ascertain if they are all
present, using a non-discretionary “pass/fail” criterion. If a bidder submits the required document, it shall be
rated “passed” for that particular requirement. In this regard, bids that fail to include any requirement or are
incomplete or patently insufficient shall be considered as “failed.” Otherwise, the BAC shall rate the said first bid
envelope as “passed.”
Immediately after determining compliance with the requirements in the first envelope, the BAC shall forthwith
open the second bid envelope of each remaining eligible bidder whose first bid envelope was rated “passed.” The
second envelope of each complying bidder shall be opened within the same day. In case any of the requirements
in the second envelope of a particular bid is missing, incomplete or patently insufficient, and/or if the submitted
total bid price exceeds the ABC, the BAC shall rate the bid concerned as “failed.” Only bids that are determined
to contain all the bid requirements for both components shall be rated “passed” and shall immediately be
considered for evaluation and comparison.

Ceiling for Bid Prices

The ABC shall be the upper limit or ceiling for acceptable bid prices. If a bid price is higher than the ABC, the
bidder submitting the same shall be automatically disqualified. There shall be no lower limit or floor on the amount
of the award.

Bid Evaluation for the Procurement of Goods and Infrastructure Projects

For the procurement of Goods and Infrastructure Projects, the BAC shall evaluate the financial component of
the bids to determine the Lowest Calculated Bid using the following steps:
a. The BAC shall immediately conduct a detailed evaluation of all bids using non-discretionary criteria in
considering the following:
 Completeness of the bid- unless the Instructions to Bidders specifically allow partial bids, bids not
addressing or providing all of the required items in the Bidding Documents including, where applicable,
bill of quantities, shall be considered non-responsive and, thus, automatically disqualified.
 Arithmetical corrections- consider computational errors and omissions to enable proper comparison of
all eligible bids. It may also consider bid modifications if expressly allowed in the Bidding Documents.
b. The BAC shall evaluate all bids on an equal footing to ensure fair and competitive bid comparison.
c. In case of discrepancies between: (a) bid prices in figures and in words, the latter shall prevail; (b) total
price per item and unit price for the item as extended or multiplied by the quantity of that item, the latter
shall prevail; (c) stated total price and the actual sum of prices of component items, the latter shall prevail;
(d) unit cost in the detailed estimate and unit cost in the bill of quantities, the latter shall prevail.
d. Bids shall then be ranked in the ascending order of their total calculated bid prices, as evaluated and
corrected for computational errors, and other bid modifications, to identify the Lowest Calculated Bid.
Total calculated bid prices, as evaluated and corrected for computational errors, and other bid
modifications, which exceed the ABC shall be disqualified.
e. After all bids have been received, opened, examined, evaluated, and ranked, the BAC shall prepare the
corresponding Abstract of Bids. All members of the BAC shall sign the Abstract of Bids and attach thereto
all the bids with their corresponding bid securities and the minutes or proceedings of the bidding.

The entire evaluation process for the procurement of Goods and Infrastructure Projects shall be completed
within seven (7) calendar days from the deadline for receipt of proposals.

5. Post-Qualification

Objective and Process of Post-Qualification

The Lowest Calculated Bid/Highest Rated Bid shall undergo post-qualification in order to determine whether
the bidder concerned complies with and is responsive to all the requirements and conditions as specified in the
Bidding Documents. Within five (5) calendar days from receipt by the bidder of the notice from the BAC that the
bidder has the Lowest Calculated Bid or Highest Rated Bid, the bidder shall submit to the BAC its latest income
and business tax returns, and other appropriate licenses and permits required by law and stated in the Bidding
Documents. Failure to submit any of the post-qualification requirements on time, or a finding against the veracity
thereof, shall disqualify the bidder for award.
a. The post-qualification shall verify, validate, and ascertain all statements made and documents submitted
by the bidder with the Lowest Calculated Bid/Highest Rated Bid, using non-discretionary criteria, as stated
in the Bidding Documents.
b. If the BAC determines that the bidder with the Lowest Calculated Bid/Highest Rated Bid passes all the
criteria for post-qualification, it shall declare the said bid as the LCRB or HRRB, and recommend to the
HoPE the award of contract to the said bidder at its submitted bid price or its calculated bid price, whichever
is lower or, in the case of quality-based evaluation procedure, submitted bid price or its negotiated price,
whichever is lower.
c. If, however, the BAC determines that the bidder with the Lowest Calculated Bid/Highest Rated Bid fails
the criteria for post-qualification, it shall immediately notify the said bidder in writing of its post-
disqualification and the grounds for it.
d. Immediately after the BAC has notified the first bidder of its post-disqualification, and notwithstanding
any pending request for reconsideration thereof, the BAC shall initiate and complete the same post-
qualification process on the bidder with the second Lowest Calculated Bid/Highest Rated Bid.

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Failure of Bidding
The BAC shall declare the bidding a failure 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.
d. The bidder with the LCRB, HRRB, SCRB or SRRB refuses, without justifiable cause, to accept the award of
contract, and no award is made.

Single Calculated/Rated and Responsive Bid Submission

A Single Calculated and Responsive Bid (SCRB) or a Single Rated and Responsive Bid (SRRB) shall be
considered for award if it falls under any of the following circumstances:
a. If after advertisement, only one prospective bidder applies for eligibility check, and it meets the eligibility
requirements or criteria, after which it submits a bid which is found to be responsive to the bidding
requirements.
b. If after advertisement, more than one prospective bidder applies for eligibility check, but only one bidder
meets the eligibility requirements or criteria, after which it submits a bid which is found to be responsive
to the bidding requirements.
c. If after the eligibility check, more than one bidder meets the eligibility requirements, but only one bidder
submits a bid, and its bid is found to be responsive to the bidding requirements.

AWARD, IMPLEMENTATION AND TERMINATION OF THE CONTRACT

Notice and Execution of Award

The procurement process from the opening of bids up to the award of contract shall not exceed three (3)
months, or a shorter period to be determined by the Procuring Entity concerned.

Contract Award
The BAC shall recommend to the HoPE the award of contract to the bidder with the LCRB, HRRB, SCRB, or
SRRB after the post-qualification process has been completed. In case of approval, the HoPE shall immediately
issue the Notice of Award to the bidder with the LCRB, HRRB, SCRB or SRRB.

Contract Signing
The winning bidder shall post the required Performance Security and enter into contract with the Procuring
Entity within ten (10) calendar days from receipt by the winning bidder of the Notice of Award. The Procuring
Entity shall enter into contract with the winning bidder within the same ten (10) day period provided that all the
documentary requirements are complied with.

Notice to Proceed
The concerned Procuring Entity shall issue the Notice to Proceed together with a copy or copies of the approved
contract to the successful bidder within seven (7) calendar days from the date of approval of the contract by the
appropriate government approving authority. All notices called for by the terms of the contract shall be effective
only at the time of receipt thereof by the successful bidder.

Performance Security
To guarantee the faithful performance by the winning bidder of its obligations under the contract in accordance
with the Bidding Documents, it shall post a performance security prior to the signing of the contract. The
performance security shall be in an amount not less than the required percentage of the total contract price in
accordance with the following schedule:

Amount of Performance Security

Form of Performance Security (Not less than the required percentage of the
Total Contract Price)
a) Cash or cashier’s/manager’s check issued by a Goods and Consulting Services – Five percent (5%)
Universal or Commercial Bank. Infrastructure Projects – Ten percent (10%)
For biddings conducted by LGUs, the
cashier’s/manager’s check may be issued by other
banks certified by the BSP as authorized to issue
such financial instrument.
Bank draft/guarantee or irrevocable letter of credit
issued by a Universal or Commercial Bank: Provided,
however, That it shall be confirmed or authenticated
by a Universal or Commercial Bank, if issued by a
foreign bank.
For biddings conducted by LGUs, bank
draft/guarantee, or irrevocable letter of credit may
be issued by other banks certified by the BSP as
authorized to issue such financial instrument.
Surety bond callable upon demand issued by a surety Thirty percent (30%)
or insurance company duly certified by the Insurance
Commission as authorized to issue such security.

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Contract Implementation for the Procurement of Goods and Supplies

Amendment to Order
Amendments to order may be issued at any time by the procuring entity concerned. If any such order increases
or decreases the cost of, or the time required for executing any part of the work under the original contract, an
equitable adjustment in contract price and/or delivery schedule shall be mutually agreed upon between the parties
concerned, and the contract modified in writing.
An amendment to order may be issued only in emergency cases or during fortuitous events requiring
necessary adjustments within the general scope of the contract
An amendment to order may also be issued by the concerned procuring entity where there are additional
items needed and necessary for the protection of the goods, which were not included in the original contract.
Under no circumstances shall a supplier proceed to commence work under any amendment to order unless
the same has been approved by the Head of the Procuring Entity concerned or his duly authorized representative.

Suspension of Work
The procuring entity may suspend the work wholly or partly by written order for a certain period of time, as
it deems necessary due to force majeure or any fortuitous events as defined in the contract.

Liquidated Damages
When the supplier fails to satisfactorily deliver goods under the contract within the specified delivery schedule,
inclusive of duly granted time extensions, if any, the supplier shall be liable for damages for the delay and shall
pay the procuring entity liquidated damages, not by way of penalty, an amount equal to one-tenth (1/10) of one
percent (1%) of the cost of the delayed goods scheduled for delivery for every day of delay until such goods are
finally delivered and accepted by the procuring entity concerned. The procuring entity need not prove that it has
incurred actual damages to be entitled to liquidated damages.
In case the total sum of liquidated damages reaches ten percent (10%) of the total contract price, the
procuring entity concerned may rescind the contract and impose appropriate sanctions over and above the
liquidated damages to be paid.

Advance Payment
Advance payment shall be made only after prior approval of the President, and shall not exceed fifteen percent
(15%) of the contract amount, unless otherwise directed by the President. However, no prior approval by the
President shall be necessary in the following cases:
a. A single advance payment not to exceed fifty percent (50%) of the contract amount shall be allowed for
contracts entered into by a procuring entity for the following services where requirement of down payment
is a standard industry practice:
 Hotel and restaurant services;
 Use of conference/seminar and exhibit areas; and
 Lease of office space
b. Advance payment not to exceed fifteen percent (15%) of the contract amount, unless otherwise directed
by the President, shall also be allowed for procurement of goods required to address contingencies arising
from natural or man-made calamities in areas where a “State of Calamity” has been declared by
appropriate authorities.
c. Upon submission of an irrevocable letter of credit or bank guarantee issued by a Universal or Commercial
Bank, advance payment not to exceed fifteen percent (15%) of the contract amount shall be allowed and
paid within sixty (60) calendar days from signing of the contract.

Contract Implementation for the Procurement of Infrastructure Projects

Variation Orders
A Variation Orders may be issued by the procuring entity to cover any increase/decrease in quantities,
including the introduction of new work items that are not included in the original contract or reclassification of
work items that are either due to 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 construction
drawings prepared after a joint survey by the contractor and the Government after award of the contract, provided
that the cumulative amount of the positive or additive Variation Order does not exceed ten percent (10%) of the
original contract price.

Change Order
A Change Order may be issued by the implementing official to cover any increase/decrease in quantities of
original work items in the contract.

Extra Work Order

An Extra Work Order may be issued by the implementing official to cover the introduction of new work
necessary for the completion, improvement or protection of the project which was not included as items of work
in the original contract, such as, where there are subsurface or latent physical conditions at the site differing
materially from those indicated in the contract, or where there are duly unknown physical conditions at the site
of an unusual nature differing materially from those ordinarily encountered and generally recognized as inherent
in the work or character provided for in the contract.

*Under no circumstances shall a contractor proceed to commence work under any Change Order or Extra Work
Order unless it has been approved by the Head of the Procuring Entity or his duly authorized representative.

RFBT by Atty. Bernard D. Bakilan, CPA, LLM Page 8 of 14

Advance Payment
The procuring entity shall, upon a written request of the contractor which shall be submitted as a contract
document, make an advance payment to the contractor in an amount not exceeding fifteen percent (15%) of the
total contract price, to be made in lump sum or, at the most, two installments according to a schedule specified
in the Instructions to Bidders and other relevant Tender Documents.

Progress Payment
Once a month, the contractor may submit a statement of work accomplished (SWA) or progress billing and
corresponding request for progress payment for work accomplished.

Retention Money
Progress payments are subject to retention of ten percent (10%) referred to as the "retention money." Such
retention shall be based on the total amount due to the contractor prior to any deduction and shall be retained
from every progress payment until fifty percent (50%) of the value of works, as determined by the procuring
entity, are completed. If, after fifty percent (50%) completion, the work is satisfactorily done and on schedule,
no additional retention shall be made; otherwise, the ten percent (10%) retention shall be imposed.

Liquidated Damages
Once the contract duration expires, including any time extension duly granted, and the contractor refuses or
fails to satisfactorily complete the work, the Procuring Entity shall impose upon the contractor in default liquidated
damages. Liquidated damage is an amount equal to at least one tenth (1/10) of one (1) percent of the cost of
the unperformed portion of the works for every day of delay.

Contract Termination

Grounds for Termination of Contracts

1. Termination for Default

a. In contract of goods, the following are ground for termination of contract for default:
 The Procuring Entity may terminate the contract when outside of force majeure, the Supplier fails to
deliver or perform any or all of the Goods within the period(s) specified in the contract, and such
failure amounts to at least ten percent (10%) of the contract price.
 The Procuring Entity may terminate the contract when, as a result of force majeure, the Supplier is
unable to deliver or perform any or all of the Goods, amounting to at least ten percent (10%) of the
contract price, for a period of not less than sixty (60) calendar days after receipt of the notice from
the Procuring Entity stating that the circumstance of force majeure is deemed to have ceased.
 The Procuring Entity shall terminate the contract when the Supplier fails to perform any other
obligation under the Contract.
b. In contracts for Infrastructure Projects, the Procuring Entity shall terminate a contract for default when
any of the following conditions attend its implementation
 Due to the Contractor’s fault and while the project is on-going, it has incurred negative slippage of
fifteen percent (15%) or more.
 Due to the Contractor’s fault and after the contract time has expired, it has incurred a negative slippage
of ten percent (10%) or more in the completion of the work.
 The Contractor:
 abandons the contract works, refuses or fails to comply with a valid instruction of the Procuring
Entity or fails to proceed expeditiously and without delay despite a written notice by the Procuring
Entity;
 does not actually have on the project site the minimum essential equipment listed on the Bid
necessary to prosecute the Works in accordance with the approved work plan and equipment
deployment schedule as required for the project;
 does not execute the Works in accordance with the contract or persistently or flagrantly neglects
to carry out its obligations under the contract;
 neglects or refuses to remove materials or to perform a new work that has been rejected as
defective or unsuitable; or
 sub-lease any part of the contract works without approval by the Procuring Entity.

2. Termination for Convenience

The Procuring Entity may terminate the Contract, in whole or in part, at any time for its convenience. The
Head of the Procuring Entity may terminate a contract for the convenience of the Government if he has determined
the existence of conditions that make Project Implementation economically, financially or technically impractical
and/or unnecessary, such as, but not limited to, fortuitous event(s) or changes in law and national government
policies.

Termination in Part means the termination of a part but not all, of the work that has not been completed and
accepted under a contract.

Termination in Whole means the termination of all of the work that has not been completed and accepted under
a contract.

3. Termination for Insolvency

The Procuring Entity shall terminate the contract if the Supplier/Contractor/Consultant is declared bankrupt
or insolvent as determined with finality by a court of competent jurisdiction. In this event, termination will be

RFBT by Atty. Bernard D. Bakilan, CPA, LLM Page 9 of 14

without compensation to the Supplier/Contractor/Consultant, provided that such termination will not prejudice or
affect any right of action or remedy which has accrued or will accrue thereafter to the Procuring Entity and/or the
Supplier/Contractor/Consultant.

4. Termination for Unlawful Acts

The Procuring Entity may terminate the contract in case it is determined prima facie that the
Supplier/Contractor/Consultant has engaged, before or during the implementation of the contract, in unlawful
deeds and behaviors relative to contract acquisition and implementation. Unlawful acts include, but are not limited
to, the following:
a. Corrupt, fraudulent, collusive and coercive practices;
b. Drawing up or using forged documents;
c. Using adulterated materials, means or methods, or engaging in production contrary to rules of science or
the trade; and
d. Any other act analogous to the foregoing.

5. Termination by Contractor/Consultant
a. In contracts for Infrastructure Projects, the Contractor may terminate its contract with the Procuring Entity
if the works are completely stopped for a continuous period of at least sixty (60) calendar days through
no fault of its own, due to any of the following reasons:
 Failure of the Procuring Entity to deliver, within a reasonable time, supplies, materials, right-of-way,
or other items it is obligated to furnish under the terms of the contract; or
 The prosecution of the work is disrupted by the adverse peace and order situation, as certified by the
Armed Forces of the Philippines Provincial Commander and approved by the Secretary of National
Defense.

Procedures for Termination of Contracts

1. Verification
Upon receipt of a written report of acts or causes which may constitute ground(s) for termination as
aforementioned, or upon its own initiative, the Implementing Unit shall, within a period of seven (7) calendar
days, verify the existence of such ground(s) and cause the execution of a Verified Report, with all relevant
evidence attached.

2. Notice to Terminate
Upon recommendation by the Implementing Unit, the Head of the Procuring Entity shall terminate contracts
only by a written notice to the Supplier/Contractor conveying the termination of the contract.

3. Show Cause. Within a period of seven (7) calendar days from receipt of the Notice of Termination, the
Supplier/Contractor/Consultant shall submit to the Head of the Procuring Entity a verified position paper
stating why the contract should not be terminated.

4. Rescission of Notice of Termination

The Procuring Entity may, at any time before receipt of the Supplier’s/Contractor’s/Consultant’s verified
position paper, withdraw the Notice to Terminate if it is determined that certain items or works subject of the
notice had been completed, delivered, or performed before the Supplier’s/Contractor’s/Consultant’s receipt of the
notice.

5. Decision
Within a non-extendible period of ten (10) calendar days from receipt of the verified position paper, the Head
of the Procuring Entity shall decide whether or not to terminate the contract.

6. Contract Termination Review Committee (CTRC)

The Head of the Procuring Entity may create a committee to assist him in the discharge of his function under
these Guidelines.

7. Take-over of Contracts
If a Procuring Entity terminates the contract due to default, insolvency, or for cause, it may enter into a
Negotiated Procurement.

Procuring Entity’s Options in Termination for Convenience in Contracts for Goods

The goods that have been performed or are ready for delivery within thirty (30) calendar days after the
Supplier’s receipt of Notice to Terminate shall be accepted by the Procuring Entity at the contract terms and
prices. For goods not yet performed or ready for delivery, the Procuring Entity may elect:
a. to have any portion delivered or performed and paid at the contract terms and prices; and/or
b. to cancel the remainder and pay to the Supplier an agreed amount for partially completed or performed
goods and for materials and parts previously procured by the Supplier.

Notice by Contractor/Consultant
The Contractor/Consultant must serve a written notice to the Procuring Entity of its intention to terminate
the contract at least thirty (30) calendar days before its intended termination.

RFBT by Atty. Bernard D. Bakilan, CPA, LLM Page 10 of 14

Disclosure of Relations
1. All bids shall be accompanied by a sworn affidavit of the bidder that it is not related to the HoPE, members of
the BAC, the TWG, and the BAC Secretariat, the head of the PMO or the end-user or implementing unit, and
the project consultants, by consanguinity or affinity up to the third civil degree. Failure to comply with the
aforementioned provision shall be a ground for the automatic disqualification of the bid. For this reason,
relation to the aforementioned persons within the third civil degree of consanguinity or affinity shall
automatically disqualify the bidder from participating in the procurement of contracts of the PE
notwithstanding the act of such persons inhibiting themselves from the procurement process.
2. All bidders also found to have conflicting interests with each other shall be disqualified to participate in the
procurement at hand, without prejudice to the imposition of appropriate administrative, civil, and criminal
sanctions.
a. A bidder has controlling shareholders in common with another bidder.
b. A bidder receives or has received any direct or indirect subsidy from any other bidder.
c. A bidder has the same legal representative as that of another bidder for purposes of this bid.
d. A bidder has a relationship, directly or through third parties, that puts them in a position to have access
to information about or influence on the bid of another bidder or influence the decisions of the PE regarding
this bidding process.
e. A bidder submits more than one bid in this bidding process.
f. A bidder who participated as a consultant in the preparation of the design or technical specifications of the
goods and related services that are the subject of the bid.
g. A bidder who lends, or temporarily seconds, its personnel to firms or organizations which are engaged in
consulting services for the preparation related to procurement for or implementation of the project.
h. If a consultant combines the function of consulting with those of contracting and/or supply of equipment.
i. If a consultant is associated with, affiliated to, or owned by a contractor or a manufacturing firm with
departments or design offices offering services as consultants.
j. If there is a conflict among consulting projects, the consultant (including its personnel and subcontractors)
and any subsidiaries or entities controlled by such consultant shall not be recruited for the relevant project.

Alternative Methods of Procurement

Subject to the prior approval of the HoPE, and whenever justified by the conditions provided under RA No.
9184, the Procuring Entity may, in order to promote economy and efficiency, resort to any of the alternative
methods of procurement. In all instances, the Procuring Entity shall ensure that the most advantageous price for
the Government is obtained.

1. Limited Source Bidding (Selective Bidding)- is a method of procurement of goods and consulting services
that involves direct invitation to bid by the Procuring Entity from the list of pre-selected suppliers or
consultants with known experience and proven capability on the requirements of the particular contract.
2. Direct Contracting (Single Source Procurement)- is a method of procurement of goods that does not
require elaborate bidding documents. The supplier is simply asked to submit a price quotation or a pro-forma
invoice together with the conditions of sale.
3. Repeat Order- is a method of procurement of goods from the previous winning bidder, whenever there is a
need to replenish goods procured under a contract previously awarded through competitive bidding.
4. Shopping- is a method of procurement of goods whereby the Procuring Entity simply requests for the
submission of price quotations for readily available off-the-shelf goods or ordinary/regular equipment to be
procured directly from suppliers of known qualifications.
5. Negotiated Procurement- is a method of procurement of goods, infrastructure projects and consulting
services, whereby the Procuring Entity directly negotiates a contract with a technically, legally and financially
capable supplier, contractor or consultant in any of the following cases:
a. Two Failed Biddings
b. Emergency Cases
c. Take-Over of Contracts
d. Adjacent or Contiguous
e. Agency-to-Agency
f. Scientific, Scholarly or Artistic Work, Exclusive Technology and Media Services

RFBT by Atty. Bernard D. Bakilan, CPA, LLM Page 11 of 14

 g. Highly Technical Consultants
h. Defense Cooperation Agreement
i. Defense Inventory-Based Items
j. Small Value Procurement
k. Lease of Real Property and Venue
l. NGO Participation
m. Community Participation
n. United Nations Agencies, International Organizations or International Financing Institutions
o. Direct Retail Purchase of Petroleum Fuel, Oil and Lubricant (POL) Products and Airline Tickets

Drills:
1. The procurement of the Government of the Philippines shall be governed by these principles, except
a. Transparency
b. Competitiveness
c. Responsibility
d. Accountability
2. It refers to a method of procurement which is open to participation by any interested party and which consists
of the following processes: advertisement, pre-bid conference, eligibility screening of prospective bidders,
receipt and opening of bids, evaluation of bids, post-qualification, and award of contract.
a. Negotiated procurement
b. Limited-source bidding
c. Competitive bidding
d. Repeat order
3. It refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by the
procuring entity.
a. Purchase
b. Requisition
c. Procurement
d. Public bidding
4. Statement 1: Reference to brand names shall be allowed except for items or parts that are compatible with
the existing fleet or equipment of the same make and brand, and to maintain the performance, functionality
and useful life of the equipment.
Statement 2: As a rule, all procurement of the Government of the Philippines shall be done through
competitive bidding.
a. Both statements are true.
b. Both statements are false.
c. Only statement 1 is true.
d. Only statement 2 is true.
5. This is done prior to the advertisement or the issuance of the Invitation to Bid/Request for Expression of
Interest for each procurement undertaken through a competitive bidding.
a. Pre-procurement conference
b. Pre-bid conference
c. Pre-negotiation conference
d. Preparatory conference
6. The following are the eligibility requirements for the procurement of goods and infrastructure projects under
RA No. 9184, except
a. Registration certificate from SEC, Department of Trade and Industry (DTI) for sole proprietorship, or CDA
for cooperatives
b. Mayor’s/Business permit
c. Performance security
d. Audited financial statements
7. It is a method of procurement of goods from the previous winning bidder, whenever there is a need to
replenish goods procured under a contract previously awarded through competitive bidding.
a. Shopping
b. Repeat order
c. Negotiated procurement
d. Direct contracting
8. The procurement activities under RA No. 9184 applies to the following, except
a. Goods and services
b. Infrastructure projects
c. Consulting services
d. Public auction sale
9. Statement 1: The “no contact” rule applies only to those whose bids are being evaluated by the BAC after
passing the preliminary examination until the issuance of Notice of Award.
Statement 2: No communication should be made by bidders until a decision to award a contract is made by
the BAC.
a. Both statements are true.
b. Both statements are false.
c. Only statement 1 is true.
d. Only statement 2 is true.
10. The following are the grounds for the declaration of failure of bidding, except
a. No bids received
b. Bids received but no one was eligible

RFBT by Atty. Bernard D. Bakilan, CPA, LLM Page 12 of 14

 c. All bids failed to post qualify
d. Someone post qualified but refused, with justifiable cause, to accept the award.
11. The following are not procurement activities under R.A. 9184 and its Revised IRR, except
a. Direct financial or material assistance given to beneficiaries in accordance with the existing laws, rules
and regulations, and subject to the guidelines of the concerned agency.
b. Participation in local or foreign scholarships, trainings, continuing education, conferences, seminars or
similar activities that shall be governed by applicable COA, CSC, and DBM rules
c. Lease of government-owned property as lessor for private use
d. All procurement of any branch, agency, department, bureau, office, or instrumentality of the Government
of the Philippines, including government-owned and/or -controlled corporations (GOCCs), government
financial institutions (GFIs), state universities and colleges (SUCs), and local government units (LGUs)
12. The Bidding Documents shall include the following, except
a. Approved Budget for the Contract
b. Invitation to Bid/Request for Expression of Interest
c. Eligibility Requirements
d. Notice of Award
13. It is a method of procurement of Goods whereby the Procuring Entity simply requests for the submission of
price quotations for readily available off-the-shelf goods or ordinary/regular equipment to be procured directly
from suppliers of known qualifications.
a. Shopping
b. Direct contracting
c. Limited source bidding
d. Repeat order
14. The following procurements are covered by RA No. 9184, except:
a. Construction of 2-storey building by DPWH using funds from the World Bank
b. Purchase of medical supplies by DOH from foreign supplier
c. Purchase by DepEd of office supplies from a local supplier
d. Purchase of relief goods by Red Cross for donation to DSWD
15. The following are kinds of negotiated procurement, except
a. Small value procurement
b. Shopping
c. Two-failed biddings
d. Take-over of contracts
16. Which of the following is not a part of the competitive bidding process?
a. Pre-bid conference
b. Implementation of the contract
c. Award of the contract
d. Advertisement
17. Who among the following has the duty to determine the eligibility of prospective bidders, receive bids, and
conduct evaluation of bids?
a. Head of the Procuring Entity
b. Department Head
c. Bids and Awards Committee
d. Chief Accountant
18. The Bidding Documents shall contain the following information, except:
a. Approved Budget of the Contract
b. Brand name
c. Eligibility requirements
d. Form of contract
19. This stage of the bidding process is held to clarify and/or explain any of the requirements, terms, conditions,
and specifications stipulated in the Bidding Documents.
a. Bid evaluation
b. Post-qualification
c. Pre-procurement conference
d. Pre-bid conference
20. It is an undertaking which states, among others, that the bidder shall enter into contract with the Procuring
Entity and furnish the required performance security within ten (10) calendar days, as indicated in the Bidding
Documents, from receipt of the Notice of Award.
a. Bid security
b. Bid securing declaration
c. Performance security
d. Warranty
21. Which of the following statements is true regarding the submission of bids?
a. A bidder cannot modify his bid at any time upon its submission.
b. A bid can either have a technical or financial component.
c. All bids shall be accompanied by bid security.
d. Bids shall be valid for 1 year.

22. Which of the following statements is false regarding bid evaluation?

a. Prior to bid evaluation, the BAC shall examine first the technical components of the bids using "pass/fail"
criteria to determine whether all required documents are present.
b. The BAC shall evaluate all bids on an equal footing to ensure fair and competitive bid comparison.

RFBT by Atty. Bernard D. Bakilan, CPA, LLM Page 13 of 14

 c. The entire evaluation process for the procurement of Goods and Infrastructure projects shall be completed
within seven (7) calendar days from the deadline for receipt of proposals.
d. If the bid is higher than the Approved Budget of Contract, the BAC shall ask the bidder to amend it.
23. This is the stage where the BAC verifies and validates whether the lowest bidder passed all the requirements
and conditions as specified in the Bidding Documents.
a. Post-qualification
b. Bid evaluation
c. Pre-procurement conference
d. Contract implementation
24. Which of the following is not performed during post-qualification?
a. Verification if the bidder is not blacklisted
b. Verification and validation of the bidder’s stated competence and experience
c. Validate the bid price proposal of the bidder
d. Validate the sufficiency of the performance security
25. Failure of bidding occurs in the following cases, except:
a. No bids are received.
b. The Lowest Calculated Bid does not pass post-qualification.
c. Whenever the bidder with the highest rated/lowest calculated responsive bid refuses, without justifiable
cause, to accept the award of contract, and no award is made.
d. No bid qualifies as the Lowest Calculated Responsive Bid.
26. What is the next step in the bidding process after the determination and declaration by the BAC of the Lowest
Calculated Responsive Bid?
a. Issuance by the Head of the Procuring Entity of the Notice of Award
b. Entering into contract with the winning bidder
c. Issuance of notice to proceed
d. Posting of performance security
27. As a general rule, the procurement process from the opening of bids up to the award of contract shall not
exceed:
a. 2 months
b. 6 months
c. 3 months
d. 4 months
28. If the bidder fails to post the required performance security within the period stipulated in the Bidding
Documents, the BAC shall:
a. Disqualify the said bidder and shall undertake post-qualification for the next-ranked Lowest Calculated Bid
or Highest Rated Bid
b. Impose penalties to the winning bidder
c. Blacklist the bidder
d. Reduce the amount of bid
29. This is where bid opportunities and information on suppliers and contracted goods, consulting services, and
civil work projects are posted.
a. PS-DBM website
b. PhilGEPS website
c. GPPB website
d. Shopee/Lazada website
30. For shopping, the request for quotations must be posted in the PhilGEPS website with ABCs exceeding:
a. P1,000,000
b. P100,000
c. P50,000
d. P350,000

---nothing follows---

RFBT by Atty. Bernard D. Bakilan, CPA, LLM Page 14 of 14