Modes of procurement alternative methods of procurement

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Modes of procurementalternative methods of
procurement
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Alternative Methods

• General Rule Public Bidding
• APP provides sufficient lead time for bidding
• Resort to Alternative Methods allowed -
• Highly exceptional cases
• To promote economy and efficiency
• Justified by conditions specified in IRR
• Recommended by BAC
• Approved By HOPE

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Alternative Methods

• 5 Alternative Methods of Procurement
• Limited Source Bidding
• Direct Contracting
• Repeat Order
• Shopping
• Negotiated Procurement

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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
• Deleted the word plant Resolution No. 11 -
  2009

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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 mos. 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

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Shopping Small Value

• Applicability of Shopping 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
• (PhP 50,000.00, Annex H, IRR of R.A. 9184)
• Conditions Shopping under 52.1(b)
• Procurement of ordinary or regular office
  supplies and equipment not available in PS-DBM
• Amount does not exceed the threshold
  (PhP 50,000.00, Annex H, IRR of R.A. 9184)

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Shopping Small Value

• Applicability of Small Value Procurement 53.9
  ALL
• Conditions
• Procurement does not fall under Shopping 52
• Amount does not exceed the threshold
• (PhP 50,000.00, Annex H, IRR of R.A. 9184)

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Shopping Small Value

• Resolution No. 09 2009, dated 17 Dec. 2009
• General Guidelines
• Decision to resort to shopping/small value
  procurement done in context of APP
• Splitting of contracts is strictly prohibited
• After approval, BAC may delegate execution to the
  appropriate bureau, committee or support unit.

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Shopping Small Value

• Procedural Guidelines

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Shopping Small Value

• Resolution No. 09 2009, dated 17 Dec. 2009
• Procedural Guidelines
• RFQ should indicate the following
• a. Specification
• b. Quantity
• c. ABC
• d. Terms and conditions of the item to be
• procured and
• e. Manner by which price quotation must be
• submitted (i.e. open or sealed
  quotations)

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Shopping Small Value

• Procedural Guidelines
• Information relating to examination, evaluation
  comparison of price quotations shall be kept
  confidential should not be disclosed to any
  other party except to those officially concerned
  until award
• Post RFQ for 7 cd in the website of PhilGEPS and
  procuring entity concerned, if available, and at
  any conspicuous places
• Exceptions
• When there is an unforeseen contingency requiring
  immediate purchase under Sec. 52.1(a)
• RFQs with ABCs equal to Php 50,000.00 and below.
  

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Shopping Small Value

• Procedural Guidelines
• Post awards in the website of PhilGEPS and
  procuring entity, if available, and at any
  conspicuous place except those with ABCs equal to
  Php. 50,000.00 and below
• Procuring entity must validate whether it is
  entering into a contract with a technically,
  legally and financially capable supplier,
  contractor or consultant by requiring the
  submission of relevant documents or through other
  means.

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Negotiated Procurement

• Applicability
• ALL
• Conditions
• Two Failed Biddings
• Emergency Cases
• Take-Over of Contracts
• Adjacent or Contiguous
• Agency-to-Agency
• Procurement Agents
• Highly Technical
• Defense Cooperation Agreement
• Lease of Real Property or Venue
• Small Value
• NGO Participation
• Community Participation
• UN Agencies

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Negotiated ProcurementTwo Failed Biddings

• Applicability ALL
• Conditions
• Two failed biddings
• Mandatory review of the following
• Minimum technical specifications
• ABC, which may be adjusted up to 20 from last
  bidding
• Invite sufficient number to ensure competition
• Information communicated on an equal basis

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Negotiated ProcurementTwo Failed Biddings

• Simultaneous negotiations
• Submission of best and final offer on a specified
  date
• Successful offer to be selected
• Meet minimum technical specifications
• Does not exceed ABC
• Observers shall be invited in all stages

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Negotiated ProcurementEmergency Cases

• Applicability ALL
• Conditions
• 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
• Negotiate with any supplier, contractor, or
  consultant with technical, legal, and financial
  capability

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Negotiated ProcurementTake Over of Contracts

• Applicability ALL
• 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
• Negotiate starting with the 2nd LCB or HRB at the
  bidders 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

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Negotiated ProcurementAgency to Agency

• Applicability ALL
• Conditions
• Cost-benefit analysis indicating A-to-A is more
  efficient and economical
• A-to-A does not exceed 25 of PEs 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 18-2007)

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Negotiated ProcurementProcurement Agents

• Applicability ALL
• Condition
• 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

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Negotiated ProcurementCommunity Participation

• Applicability ALL
• 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

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Alternative Methods

• Other Terms and Conditions
• Most advantageous price for government should be
  obtained (Sec. 48.1)
• Splitting of contracts strictly prohibited (Sec.
  54.1)
• Posting NOT necessary, except
• Shopping Sec. 52.1(b)
• Except PhP50,000 and below
• Small Value Procurement Sec. 53.9
• Except PhP50,000 and below
• Two Failed Biddings Sec. 53.1
• NGO Participation Sec. 53.11
• Lease of Real Property Sec. 53.10, if gt
  PhP50,000

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Alternative Methods

• 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 Sec. 52
• Emergency Cases Sec. 53.2
• Small Value Procurement Sec. 53.9
• Lease of Real Property Sec. 53.10
• Procurement from UN agencies Sec. 53.13

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By Administration

• Applicability Infrastructure Projects
• Conditions
• Implementing Agency (IA) must have a track record
  of having completed or supervised a project by
  admin or by contract, similar to and with a cost
  of at least 50 of the project at hand, and
• IA owns or has access from other government
  agencies to necessary tools and construction
  equipment required for the project
• Other requirements provided in Guidelines for the
  Implementation of Infrastructure Projects By
  Administration(GPPB Resolution 18-2006, as
  amended by GPPB Resolution No. 07 2009)

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By Administration

• Increase in thresholds in the 2009 2010 GAA
• Any project costing lt Php. 20,000,000.00 may be
  undertaken by administration or force account
• Project costing over Php. 20,000,000.00 should
  obtained the ff
• Authority from the DPWH Secretary - Php.
  20,000,000.00 - Php. 50,000,000.00),
• Authority from the President of the Philippines,
  upon the DPWH Secretarys favorable
  recommendation - more than Php. 50,000,000.00.

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Thank you

• Comments, questions?