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RESOLUTION NO. 15-2020

_________________________________________________________________________

APPROVING THE ADOPTION OF THE SIXTH (6TH) EDITION OF THE

PHILIPPINE BIDDING DOCUMENTS FOR THE PROCUREMENT OF GOODS
AND INFRASTRUCTURE PROJECTS AND RELATED AMENDMENTS
IN THE 2016 REVISED IMPLEMENTING RULES AND REGULATIONS OF
REPUBLIC ACT NO. 9184 AND ASSOCIATED ISSUANCES

WHEREAS, Republic Act (RA) No. 9184, otherwise known as the “Government
Procurement Reform Act,” took effect on 26 January 2003, while its 2016 revised
Implementing Rules and Regulations (IRR) took effect on 28 October 2016;

WHEREAS, Section 63 of RA No. 9184 and its 2016 revised IRR authorizes the
Government Procurement Policy Board (GPPB) to formulate public procurement policies,
rules, and regulations, and amend its IRR and corresponding standard forms for procurement,
whenever necessary;

WHEREAS, Section 3 (c) of RA No. 9184 mandates that all procurement of the national
government, its departments, bureaus, offices and agencies, including state universities and
colleges, government-owned and/or -controlled corporations, government financial
institutions and local government units, shall be governed by the principle, among others, of
having a “[s]treamlined procurement process that will uniformly apply to all government
procurement. The procurement process shall be simple and made adaptable to advances in
modern technology in order to ensure an effective and efficient method;”

WHEREAS, Section 6 of RA No. 9184 provides for the following requirement on the
standardization of the procurement process and forms:

To systematize the procurement process, avoid confusion and ensure transparency,

the procurement process, including the forms to be used, shall be standardized insofar
as practicable. For this purpose, the GPPB shall pursue the development of generic
procurement manuals and standard bidding forms, the use of which once issued shall
be mandatory upon all Procuring Entities;

WHEREAS, Sections 6.1 and 6.2 of the 2016 revised IRR of RA No. 9184 mandate the
use the Philippine Bidding Documents by the procuring entities (PEs) as follows:

To systematize the procurement process, avoid confusion and ensure transparency

the GPPB shall pursue the development and approval of generic procurement
manuals, standard Bidding Documents, and forms, including those to be used for major
procurement like drugs and textbooks; and

Procuring Entities are mandated to use the Generic Procurement Manuals (GPMs),
Philippine Bidding Documents (PBDs), and other standard forms of the GPPB.
However, whenever necessary to suit the particular needs of the Procuring Entity,
modifications may be made, particularly for major and specialized procurement, subject
to the approval of the GPPB;

WHEREAS, GPPB Resolution No. 24-20161 approved the Fifth (5th) Edition of the
Philippine Bidding Documents (PBDs) for Goods, Infrastructure Projects, and Consulting
Services as harmonized with the Development Partners on 27 October 2016;

1
Dated 27 October 2016.

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WHEREAS, since the use of the 5th Edition of the PBDs in early 2018, several requests
for clarification were received by the Board, through its Technical Support Office (TSO),
relative to the contents of the PBDs, particularly on the following issues:

a) discrepancies in the rules between the PBD Clauses and the 2016 revised IRR of
RA No. 9184;
b) confusion in the use of Bidding Forms, i.e. mandatory or optional;
c) varying formats of the PBDs and the Bidding Forms for the different classifications
of procurement; and
d) language used in the PBDs does not match the provisions as stated in the revised
2016 IRR of RA No. 9184 or other GPPB issuances;

WHEREAS, the simplification of the PBDs was introduced during the 4th GPPB Online
Meeting on 7 May 2020, and the Board supported the move in order to:

a) To address the foregoing issues and to minimize or prevent the following

problems:

i) Varied interpretation of the procurement rules leading to the disqualification of

eligible bidders;
ii) Risk of inconsistencies in the procurement rules due to repetitive clauses found
within the PBDs, and those that are already covered under the 2016 IRR of RA
No. 9184 and other GPPB issuances;
iii) Delay in the delivery or implementation of Procurement Projects since the PEs
are experiencing long processing time for bid preparation; and
iv) Sheer practicality given the voluminous nature of the Philippine Bidding
Documents.

b) To align with the proposed adoption of online bid submission for the
effective conduct of public procurement, especially that the country has
been placed under a State of Calamity due to the Coronavirus Disease
2019 situation, which has affected the conduct of procurement activities in
view of the reduced mobility of the PE, bidders, and stakeholders;

WHEREAS, on the 5th GPPB Online Meeting on 20 May 2020, the proposed strategies
for the simplification of the PBDs were presented to the Board, as follows:

a) Delete the Clauses that have existing legal bases. Instead, one general statement
would be adopted in the PBDs stating that all provisions of RA No. 9184 and its
2016 revised IRR, including the associated issuances, constitute the bidding
requirements and the terms and conditions of the contract;
b) Combine repetitive clauses in the PBDs;
c) Include in the appropriate GPM the deleted portions that provide details on the
existing procedures therein;
d) Separate the Bidding Forms from the PBDs and include in a separate issuance the
mandatory provisions required;
e) Separate the section on Foreign-Assisted Projects from the PBDs and will be
covered by an exclusive issuance for this purpose; and
f) Update and refine the provisions in the PBDs for consistency with the 2016 revised
IRR of RA No. 9184 and related issuances;

WHEREAS, the GPPB approved the strategies subject to submission of comments on

the draft simplified PBDs for Goods, Infrastructure Projects, and Consulting Services;

WHEREAS, during the 4th Online Meeting on 18 June 2020, the GPPB-TSO presented
to the Inter Agency Technical Working Group (IATWG) the proposed simplified PBDs, as
initially discussed in the aforementioned GPPB Meetings as well as the comments on the

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simplified PBDs submitted by the National Economic and Development Authority and
Department of Transportation;

WHEREAS, the IATWG agreed to endorse, for approval of the Board, the adoption of
the simplified PBDs with their recommendations, as indicated below:

a) Append a checklist of the technical and financial documents in the simplified PBDs;
b) Paraphrase the bid and payment currencies in the simplified PBDs to include a
qualification that the foreign denominations should be accepted or tradeable by the
Bangko Sentral ng Pilipinas; and
c) Require the bidders to submit only one (1) copy of the technical and financial bid
components, while allowing the PE to request the bidders for additional soft or hard
copies. However, failure of the bidders to provide the additional copies shall not
be a ground for disqualification;

WHEREAS, on 23, 24, 26, and 30 June 2020, the GPPB-TSO representatives conducted
a line-by-line review of the proposed simplified PBDs, to further refine and update the clauses
based on the 2016 revised IRR of RA No. 9184;

WHEREAS, during the 7th GPPB Online Meeting on 28 July 2020, the GPPB-TSO
presented to the Board: (i) the simplified PBDs for Goods and Infrastructure Projects
incorporating the above comments and (ii) the related amendments in the 2016 revised IRR
of RA No. 9184 and associated issuances, particularly on:

a) the currencies of foreign-denominated bids, which shall indicated as acceptable or

tradeable by the Bangko Sentral ng Pilipinas;
b) submission of eligibility documents to the implementing or end-user unit if
subcontracting is allowed during contract implementation; and
c) eligibility of bidders participating in domestically funded procurement of Goods
whose foreign ownership exceed the percentage provided in the Section 23.4.1.1
of the 2016 revised IRR of RA No. 9184;

WHEREAS, the proposed simplified PBDs for Consulting services will be presented at a
later GPPB meeting as this is still undergoing review;

WHEREAS, the GPPB, after careful review and due deliberation of the final comments
and suggestions of the members, agreed to approve all matters on the (i) adoption of the
simplified PBDs for Goods and Infrastructure Projects, and (ii) related amendments to the
revised 2016 IRR of RA No. 9184 and associated issuances that resulted from the
simplification of the PBDs;

NOW, THEREFORE, for and in consideration of the foregoing, WE, the Members of the
GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US, by law and
other executive issuances, hereby RESOLVE, to confirm, adopt, and approve, as WE hereby
confirm, adopt, and approve the following:

1. ADOPTION of the 6th Edition PBDs or the simplified PBDs for Goods and
Infrastructure Projects to be used by all PEs;

2. AMENDMENTS to the provisions of the 2016 revised IRR of RA No. 9184

and associated issuances, a copy of which is attached as Annex “A;” and

3. USE of the simplified PBDs for Goods and Infrastructure Projects for the
preparation of bidding documents, and submission and receipt of bids
through the GPPB Online Portal.

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This Resolution shall take effect after fifteen (15) days following the publication in the
Official Gazette.

APPROVED this 28th day of July 2020 at Manila, Philippines.

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____________________________________ ____________________________________
WENDEL E. AVISADO PASCUA
GPPB, Chairperson Alternate to the Chairperson
DEPARTMENT OF BUDGET AND DEPARTMENT OF BUDGET AND
MANAGEMENT MANAGEMENT

____________________________________ ____________________________________
NATIONAL ECONOMIC AND DEPARTMENT OF EDUCATION
DEVELOPMENT AUTHORITY

____________________________________ ____________________________________
DEPARTMENT OF ENERGY DEPARTMENT OF FINANCE

____________________________________ ____________________________________
DEPARTMENT OF HEALTH DEPARTMENT OF THE INTERIOR AND
LOCAL GOVERNMENT

____________________________________ ____________________________________
DEPARTMENT OF NATIONAL DEPARTMENT OF PUBLIC WORKS AND
DEFENSE HIGHWAYS

____________________________________ ____________________________________
DEPARTMENT OF SCIENCE AND DEPARTMENT OF TRADE AND INDUSTRY
TECHNOLOGY

____________________________________ ____________________________________
DEPARTMENT OF TRANSPORTATION DEPARTMENT OF INFORMATION AND
COMMUNICATIONS TECHNOLOGY

____________________________________
PRIVATE SECTOR REPRESENTATIVE

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ANNEX “A”

Unit 2504 Raffles Corporate Center

F. Ortigas Jr. Road, Ortigas Center
Pasig City, Philippines 1605
_________________________________________________________________________

2016 REVISED IMPLEMENTING RULES AND REGULATIONS OF

REPUBLIC ACT NO. 9184

ORIGINAL AMENDMENT

61.4. All contracts shall be denominated 61.4. All contracts shall be denominated and
and payable in Philippine currency, payable in Philippine currency, and this
and this shall be stated in the shall be stated in the Bidding
Bidding Documents: Provided, Documents: Provided, however, That
however, That subject to the subject to the guidelines issued by the
guidelines2 issued by the GPPB, GPPB, the Procuring Entity may provide
the Procuring Entity may provide in in the Bidding Documents that
the Bidding Documents that obligations may be paid in foreign
obligations may be paid in foreign currency, which shall be accepted or
currency; Provided, further, That tradeable by the Bangko Sentral ng
should the Procuring Entity receive Pilipinas; Provided, further, That should
bids denominated in foreign the Procuring Entity receive bids
currency, the same shall be denominated in foreign currency, the
converted to Philippine currency same shall be converted to Philippine
based on the exchange rate currency based on the exchange rate
prevailing on the day of the bid prevailing on the day of the bid opening
opening for purposes of bid for purposes of bid comparison and
comparison and evaluation. evaluation.

GPPB RESOLUTION NO. 20-2005 dated 7 October 2005,

as amended by GPPB RESOLUTION NO. 03-2011 dated 28 January 2011
GUIDELINES ON PROCUREMENTS INVOLVING FOREIGN-DENOMINATED BIDS,
CONTRACT PRICES, AND PAYMENT USING LETTERS OF CREDIT

ORIGINAL AMENDMENT

5. SUBMISSION AND EVALUATION 5. SUBMISSION AND EVALUATION OF

OF BIDS BIDS

5.1. All bids may be denominated 5.1. All bids may be denominated wholly in
wholly in local currency or wholly local currency or wholly in foreign
in foreign currency or a currency, which shall be accepted
combination thereof; provided, or tradeable by the Bangko Sentral
however, that foreign component ng Pilipinas, or a combination
of bids shall cover only imported thereof; provided, however, that
goods as supported by import foreign component of bids shall cover
documents. only imported goods as supported by
import documents.

2
Refers to GPPB Resolution No. 03-2011 dated 28 January 2011, as amended by GPPB Resolution No. 13-2019, dated 23 May
2019.

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6. CONTRACT PRICES 6. CONTRACT PRICES

6.1. As a general rule, Contracts shall 6.1. As a general rule, Contracts shall be
be denominated and paid in denominated and paid in Philippine
Philippine currency, except when currency, except when the procuring
the procuring entity agrees that entity agrees that obligations shall be
obligations shall be settled in any settled in any other foreign currency,
other currency, subject to which shall be accepted or
conditions provided for under tradeable by the Bangko Sentral ng
these guidelines. Pilipinas, subject to conditions
provided for under these guidelines.

GOVERNMENT PROCUREMENT MANUAL VOLUME 2

Manual of Procedures for the Procurement of Goods

ORIGINAL AMENDMENT

Subcontracts Subcontracts

Is subcontracting allowed for the Is subcontracting allowed for the

procurement of goods and services? procurement of goods and services?

Generally, a supplier may be allowed to Generally, a supplier may be allowed to

subcontract a portion of the contract or subcontract a portion of the contract or
project. project.

However, the supplier should not be However, the supplier should not be allowed
allowed to subcontract a material or to subcontract a material or significant portion
significant portion of the contract or of the contract or project, which portion must
project, which portion must not exceed the not exceed the maximum allowed by the
maximum allowed by the Procuring Entity Procuring Entity as indicated in the bidding
as indicated in the bidding documents. documents. The bidding documents must
The bidding documents must specify what specify what are considered as
are considered as significant/material significant/material component(s) of the
component(s) of the project. project.

All subcontracting arrangements must be All subcontracting arrangements must be

disclosed at the time of bidding, and disclosed at the time of bidding, and
subcontractors must be identified in the subcontractors must be identified in the
bid submitted by the supplier. bid submitted by the supplier.
Subcontracting is limited to twenty percent Subcontracting is limited to twenty percent
(20%) of the project in accordance with the (20%) of the project in accordance with the
Bidding Documents. Bidding Documents.

Any subcontracting arrangements made The bidder may identify the subcontractor
during project implementation and not to whom a portion of the Works will be
disclosed at the time of the bidding shall subcontracted at any stage of the bidding
not be allowed. The subcontracting process or during contract
arrangement shall not relieve the supplier implementation. If the bidder opts to
of any liability or obligation under the disclose the name of the subcontractor
contract. Moreover, subcontractors are during bid submission, the bidder shall
obliged to comply with the provisions of include the required documents as part of
the contract and shall be jointly and the technical components of the bid. A

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severally liable with the principal supplier, subcontractor that is identified during
in case of breach thereof, in so far as the contract implementation must comply
portion of the contract subcontracted to it with the eligibility criteria and
is concerned. documentary requirements. The
implementing or end-user unit shall
determine whether the subcontractor
complies with the eligibility criteria and
documentary requirements, and secure
the approval of the HoPE.

Any subcontracting arrangements made

during project implementation and not
disclosed at the time of the bidding shall
not be allowed. The subcontracting
arrangement shall not relieve the supplier of
any liability or obligation under the contract.
Moreover, subcontractors are obliged to
comply with the provisions of the contract and
shall be jointly and severally liable with the
principal supplier, in case of breach thereof,
insofar as the portion of the contract
subcontracted to it is concerned.

Any subcontracting arrangement shall not

relieve the supplier of any liability or obligation
under the contract. Moreover, subcontractors
are obliged to comply with the provisions of
the contract and shall be jointly and severally
liable with the principal supplier, in case of
breach thereof, insofar as the portion of the
contract subcontracted to it is concerned.

GOVERNMENT PROCUREMENT MANUAL VOLUME 3

Manual of Procedures for the Procurement of Infrastructure Projects

ORIGINAL AMENDMENT

Subcontracting Subcontracting

Is subcontracting allowed for the Is subcontracting allowed for the

procurement of infrastructure procurement of infrastructure projects?
projects?
A contractor may be allowed to subcontract a
A contractor may be allowed to portion of the contract or project if the bidding
subcontract a portion of the contract or documents clearly provide for such
project if the bidding documents clearly arrangement. However, the contractor should
provide for such arrangement. However, not be allowed to subcontract a material or
the contractor should not be allowed to significant portion of the contract or project,
subcontract a material or significant which portion must not exceed fifty percent
portion of the contract or project, which (50%) of the total project cost. The bidding
portion must not exceed fifty percent documents must specify what are considered
(50%) of the total project cost. The bidding as significant/material component(s) of the
documents must specify what are project.
considered as significant/material
component(s) of the project. [Paragraphs 2 and 3 are switched for

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clarity]
Moreover, except if otherwise provided by
the contract, it should not subcontract any The bidder may identify the subcontractor to
part of the works without the prior written whom a portion of the Works will be
consent of the HoPE. However, this subcontracted at any stage of the bidding
consent shall not relieve the contractor of process or during contract implementation. If
any liability or obligation under the the bidder opts to disclose the name of the
contract. The contractor will be subcontractor during bid submission, the
responsible for the acts, defaults and bidder shall include the required documents
neglects of any subcontractor, his agents, as part of the technical components of the bid.
servants, or workmen as fully as if these A subcontractor that is identified during
were its own acts, defaults, or neglects, or contract implementation must comply with the
those of its agents, servants or workmen. eligibility criteria and documentary
requirements. The implementing or end-
The bidder may identify the subcontractor user unit shall determine whether the
to whom a portion of the Works will be subcontractor complies with the eligibility
subcontracted at any stage of the bidding criteria and documentary requirements,
process or during contract and secure the approval of the HoPE.
implementation. If the bidder opts to
disclose the name of the subcontractor Moreover, except if otherwise provided by
during bid submission, the bidder shall the contract, it should not subcontract any
include the required documents as part of part of the works without the prior written
the technical components of the bid. A consent of the HoPE. However, this
subcontractor that is identified during consent Any subcontracting agreement
contract implementation must comply with shall not relieve the contractor of any liability
the eligibility criteria and documentary or obligation under the contract. The
requirements and secure approval of the contractor will be responsible for the acts,
HoPE. defaults and neglects of any subcontractor,
his agents, servants, or workmen as fully as if
Subcontractors should pass the eligibility these were its own acts, defaults, or neglects,
requirements for the portions of the or those of its agents, servants, or workmen.
contract that they will undertake. If they
are determined to be ineligible, Subcontractors should pass the eligibility
subcontracting of such portion of the requirements for the portions of the contract
works shall be disallowed. that they will undertake. If they are determined
to be ineligible, subcontracting of such portion
of the works shall be disallowed.

2016 REVISED IMPLEMENTING RULES AND REGULATIONS OF

REPUBLIC ACT NO. 9184

ORIGINAL AMENDMENT

23.4.1.2. Foreign bidders may be eligible 23.4.1.2. Foreign Bidders with foreign
to participate under any of the ownership exceeding those
following circumstances in allowed in Section 23.4.1.1 of
accordance with the guidelines3 this IRR may be eligible to
issued by the GPPB: participate under any of the
following circumstances in

3
Refers to GPPB Resolution No. 20-2005 dated 7 October 2005, as amended by GPPB Resolution No. 03-2011 dated 28
January 2011, entitled: “Guidelines on Procurements Involving Foreign-Denominated Bids, Contract Prices, and Payment Using
Letters of Credit.”

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a) When provided for under any Treaty or accordance with the guidelines
International or Executive Agreement issued by the GPPB:
as provided in Section 4 of the Act and
this IRR; a) When provided for under any Treaty or
b) When the foreign supplier is a citizen, International or Executive Agreement as
corporation or association of a country, provided in Section 4 of the Act and this
the laws or regulations of which grant IRR;
reciprocal rights or privileges to b) When the foreign supplier is a citizen,
citizens, corporations or associations corporation or association of a country,
of the Philippines; the laws or regulations of which grant
c) When the goods sought to be procured reciprocal rights or privileges to citizens,
are not available from local suppliers; corporations or associations of the
or Philippines;
d) When there is a need to prevent c) When the goods sought to be procured
situations that defeat competition or are not available from local suppliers; or
restrain trade. d) When there is a need to prevent situations
that defeat competition or restrain trade.

GPPB RESOLUTION NO. 03-2011 dated 28 January 2011,

as amended by GPPB RESOLUTION NO. 13-2019, dated 23 May 2019
Guidelines in the Determination of Eligibility of Foreign Suppliers, Contractors, and
Consultants to Participate in Government Procurement Projects

ORIGINAL AMENDMENT

4.0 FOREIGN SUPPLIERS, 4.0 FOREIGN SUPPLIERS, CONTRACTORS,

CONTRACTORS, AND CONSULTANTS AND CONSULTANTS ELIGIBLE TO
ELIGIBLE TO PARTICIPATE PARTICIPATE

4.1. In the procurement of goods, 4.1. In the procurement of goods,

regardless of the procurement regardless of the procurement
method used, foreign bidders may method used, foreign bidders with
be eligible to participate under any foreign ownership exceeding
of the following circumstances: those allowed in Section 23.4.1.1
of the 2016 revised IRR of RA No.
XXX 9184 may be eligible to participate
under any of the following
circumstances:

XXX

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