property and supply management w/ introduction to r.a. 9184 government procurement reform act

Holy Name University Holy Name University cor. Gallares & Lessage sts, Tagbilaran Citycor. Gallares & Lessage sts, Tagbilaran City

The only catholic university in the Province of Bohol

LOCAL GOVERNMENT LOCAL GOVERNMENT ADMINISTRATIONADMINISTRATION

JUAN PAOLO S. ARANASMaster in Public Administration

RESOURCE UTILIZATION AND ACCOUNTABILITY

Property & Supply Management(w/ introduction to R.A. 9184)

BASIC PRINCIPLES

Public office is a Public Trust (Sec. 1 Art. 11 of the 1987 Philippine Constitution; RA 6713). Public officials and employees must be at all times accountable to the people, serve them with utmost honesty, responsibility, integrity, loyalty, and efficiently, act with patriotism and lead modest lives.

BASIC PRINCIPLES

Section 2 of the PD no. 1445 otherwise known as the State Auditing of the Philippines states that “all resources of the government shall be managed, expended or utilized in accordance with laws, rules, regulations, and safeguarded against loss or wastage through illegal or improper disposition with the view of ensuring economy, efficiency, and effectiveness in the operation of the government.

References:

• Republic Act No. 7160 Book II Title 6

• Revised Implementing Rules and Regulations of Republic Act No. 9184, otherwise known as the “Government Procurement Reform Act.”

Course Objectives:

• To know and discuss Supply & Property Management; and to

• Appreciate Provisions under Republic Act. No. 9184 and its Implementing Rules and Regulations

SUPPLY AND PROPERTY MANAGEMENT

*SECTION 356 – GENERAL RULE IN PROCUREMENT AND DISPOSAL

Except as otherwise provided herein, acquisition of supplies by local government units shall be through COMPETITIVE PUBLIC BIDDING. Supplies which become unserviceable or no longer needed shall be SOLD, whenever applicable, at PUBLIC AUCTION, subject to applicable rules and regulations

PROCUREMENT

DEFINITION OF TERMS (R.A. 7160 & 9184)

Lowest Complying and Responsible Bid

1. proposal of one who offers the lowest price;

2. meets all the technical specifications and requirements of the supplies desired;

3. as a leader in the line of supplies involved;

4. maintains a regular establishment; and

5. has complied consistently with previous commitments;

Suitable Substitute – refers to the kind of article which would serve substantially the same purpose or produce substantially the same results as the brand, type, or make of article originally desired or requisitioned.

Supplies – include everything, except real property Terms & Conditions – refers to other requirements not affecting the

technical specifications and requirements of the required supplies desired

Approved Budget for the Contract – budget for the contract duly approved by the HOPE.

Fund Instrumentality

National Government Agencies (NGAs)

General Appropriations Act (GAA)

GOCCs, GFIs, SUCs Corporate budget for the contract approved by the governing board

Local Government Units (LGUs)

Budget Approved by Sanggunian

Foreign – Funded Procurement

Treaty, International or Executive Agreement

Bid – equivalent to “Proposal” and “Tender” Bidder – eligible contractor, manufacturer,

supplier, distributor and or consultant Bidding Documents – documents issued by

the P.E. as basis for bids, furnishing all information necessary for a prospective bidder to prepare a bid.

Common-Use supplies – goods, materials and equipment that are used in the day-to-day operations of the PE in the performance of their duty

Competitive Bidding – method of procurement which is open to participation by an interested party which consists of processes.

Expendable Supplies – articles which are normally consumed in use within one (1) year or more than a year but which shall have decreased substantially in value after only one year in use

Goods – all items except consulting services and infrastructure projects which may be needed in the transaction of public businesses including related or analogous services.

Head of the Procuring Entity (HOPE) –the head of the Agency.

Infrastructure Projects – “civil works” Non-Expendable Supplies - articles which

retain their identity during the period of use whose serviceable life is more than one year.

PhilGEPS – Philippine Government Electronic Procurement System

Portal – website

Procurement – acquisition by the PE

Procuring Entity (PE) – refers to branch, offices, agencies, bureau of the GOP, incl. GOCC, GFI, SUC, LGU.

SECTION I – SHORT TITLE AND PURPOSE OF RA 9184

Purpose of the IRR of R.A. 9184:

• Modernization

• Standardization

• Regulation of the procurement activities of the GOP

SECTION 2 – DECLARATION OF POLICY

• Modernization• Standardization• Regulation of Procurement Activities

• Transparency• Accountability• Equity• Efficiency• Economy

SECTION 3 – GOVERNING PRINCIPLES

• Transparency

• Competitiveness

• Streamlined procurement process

• System of Accountability

• Public monitoring

SECTION 4 – SCOPE AND APPLICATION

• Branch, agency, department, bureau, office or instrumentality of GOP, incl. GOCCs, GFIs, SUCs, & LGUs

• Any Treaty or International or Executive Agreement to which the GOP is signatory

• Procurement funded by foreign grants

• Acquisition of real property

This IRR shall not apply to the following:

• Public – Private sector infra or development projects and other procurement covered by R.A 6957

DUTIES OF THE PMO / End-user(s)

Duties of the PMO/End-user(s)

1. To provide the technical specifications of the goods it will procure

2. To conduct a market survey that will include a study of the available products or services, industry developments

3. To recommend the ABC

4. To provide technical advice

5. To assist in the preparation of bidding documents


6. To attend all stages of the procurement

7. To determine the period of contract implementation during the procurement planning stage, and include it in the PPMP.

8. To ensure that the Chief Accountant of the procuring entity issues a CAF for the project.

Only with a CAF can the contract be valid.Only with a CAF can the contract be valid.

The Chief Accountant must also sign the contract as a witness. (Sec. 5 GPM)The Chief Accountant must also sign the contract as a witness. (Sec. 5 GPM)

Fund availability isFund availability is an indispensable prerequisite to the execution of any an indispensable prerequisite to the execution of any

government contract involving the expenditure of public funds by all government contract involving the expenditure of public funds by all

government agencies at all levels.government agencies at all levels.


9. To determine the existence of condition/s that require an amendment to order.

10. To determine the existence of a force majeure or fortuitous event that will be the basis for the issuance of a suspension order.

11. To either approve or disapprove the request for extension.

PROCUREMENT PLANNING

What is Planning?• The act or process of making or carrying out plans.

• The establishment of goals, policies, and procedures for a social or economic unit.

• It involves resource allocation and scheduling.

• Through plans, a PE is able to effectively manage and track procurement all the way to contract performance.

• Allows managers to determine how to allocate limited cash and other appropriate resources under a given time line, identify choke-points, weaknesses, and delays in the entire activity that can be addressed or eliminated.

Planning & budgeting linkages

PE – Agency Budget Proposal by considering the budget framework

PMO/End-User – prepares their respective WFP for their different PPA’s as annex to Budget call.

Procuring Entity’s Budget Proposal embodies the agency thrusts and the resources needed to produce the key services it delivers to the public.

Procurement planning should be done within this budgetary context, reflecting the Procuring Entity’s priorities and objectives for the budget period.

Planning & budgeting linkagesThe WFP or the Work and Financial Plan

Contains the initial list of projects/requirements of each PMO/End-User unit and the corresponding estimated budgetary requirement.

Submitted by the PMOs or end-user units to the PE’s Budget Office on or about May of each year, to coincide with the submission of their respective budget proposals. This will be evaluated and included in the PE’s Budget Proposal .

This will support the Budget Proposal submitted to DBM and becomes the basis for the proposed PPMP.

The Budget Office shall furnish a copy of the WFP’s and proposed PPMP to the BAC Sec for the consolidation of the initial list of items/projects for procurement into the proposed APP.

Planning & budgeting linkages

When GAA becomes final (Nov. - Dec.), PMO’s/End-User must refine the proposed PPMP.

Within 15 days from issuance of the Agency Budget Matrix (ABM) during the 1st quarter of the fiscal year, PMO’s/End-User shall finalize the PPMP’s to reflect the budgetary allocation for their respective PPAs as provided in the ABM.

The final PPMPs shall be submitted to the BAC Sec for the finalization of the proposed Procuring Entity’s APP to be submitted to the HOPE for confirmation or approval.

Preparation of the Project Procurement Management Plan (PPMP)

What is a Project Procurement Management Plan (PPMP)?

A Project Procurement Management Plan or PPMP, which is a component of the Project Management Plan, deals primarily with:

a.planning for the procurement of project requirements;

b.bidding or procurement strategy;

c.source selection;

d.delivery and payment schedules;

e.contract administration;

f.contract termination; and

g.other major milestones; in an effort to obtain goods, infrastructure and services

from suppliers, contractors and consultants.


The PPMP serves as a guide document in the procurement and contract implementation process, as well as a vital reference in procurement monitoring.

It serves as an important tool in resource and financial management, allowing the Procuring Entity the flexibility to optimize the utilization of scarce resources.

Well-planned procurement will significantly minimize the practice of doing short-cuts to ensure that the Procuring Entity is able to purchase its requirements for the delivery of public services.


Developing the Project Requirements:

The development of the project requirements should be done during the preparation of the proposed PPMP. At this stage of the procurement planning process, the PMO or end-user unit must:

a. Identify the need of the PMO or end-user unitWhat is the purpose of the procurement?What are the problem/s or needs that the project or procurement aims to address?


Developing the Project Requirements:b. Identify the alternative solutions, products, and services.

What alternative solutions to the problem/s or need/s are available in the market?What is the profile of the supply market? Are they easily obtainable? How much is the cost of each alternative?

The PMO or end-user unit should conduct the market research at this point, and gather as much information about the Goods, Services or expertise required. At the end of this activity, it should know the market or the industry well enough to make an informed choice.



c. Compare the alternatives (consider qualitative and quantitative factors)

Consider how the PMO or end-user unit would rate the various alternatives in terms of the following:

i. Value for moneyThe concept of value for money is not restricted to price alone. In addition to costs, other considerations are non cost factors like suitability or fitness to the purpose, quality, among others. In comparing costs, all relevant costs should be considered, e.g., acquisition costs, life-cycle costs (including maintenance and operating costs for goods and infrastructure, spare parts of goods, etc.).



ii. Risk assessment and management

Some risks that may be identified are: obsolescence of equipment, availability of support services, capacity of contractors to implement the project. It is recommended, especially for high-technology, complex, or high value procurement, that the PMO or end-user unit identifies the risks involved and come up with its own risk management plan. Or the bidders could be required to submit, as part of their technical document, a risk assessment and risk management plan.



iii. Government policies that have an impact on the project or procurement

Are there any restrictions on the procurement contemplated? What relevant government policies should be considered in determining the goods or services that will be purchased?

iv. Other relevant factors that may be identified by the PMO or end-user unit.


Writing the Technical Specifications, Scope of Work (SOW) and Terms of Reference (TOR):

The Technical Specifications (for Procurement of Goods), Scope of Work (for Services and Infrastructure Projects) or Terms of Reference (for Consulting Services) is the document that provides the detailed description of the deliverables of the Supplier, Contractor or Consultant.



The following guidelines are, considered helpful in writing the TS/SOW/TOR:

Quality Assurance actually starts at this stage of the procurement cycle, considering that the deliverables are decided at this time. It is therefore important that all stakeholders are consulted, and the actual requirements of the PMO or end-user unit are determined and put in writing.

If the procurement is complex, highly technical, or high value, and the Procuring Entity does not have sufficient technical proficiency, it would be prudent to engage the services of technical experts who will serve as consultants in the preparation of the TS/SOW/TOR.




In engaging these consultants, the Procuring Entity shall follow the procedures for procurement of consulting services. Moreover, care should be taken that possible conflict of interest is avoided; that is, the consultant/s engaged should not be connected with the prospective bidders/contractors, and are barred from being engaged by the latter for any purpose related to the procurement at hand.




The description should be generic and flexible, not product-specific or seemingly tailored for a particular brand, product, contractor or consultant, unless the procurement involves products or services that have intellectual property rights attached to it, or are exclusively offered by a single source, and there are no suitable substitute products or services.




If the procurement involves products or services that have intellectual property rights attached, or are exclusively offered by a single source without any suitable substitute, then the PMO or end-user unit must be able to satisfactorily justify the need for such a product or service.The description should be clear and unambiguous, to avoid confusion and to facilitate the evaluation process. It is noted that the TS/SOW/TOR is also the basis of the evaluation or, when applicable, the testing parameters.




Considering that planning is done sometime before actual procurement and even farther from the date of actual delivery or project implementation, changes in technology or changes in the concerned industry or field of expertise should already be taken into account in writing the TS/SOW/TOR.

This will allow the Procuring Entity to procure the latest products and/or services available in the market.

What is an ABC?

The ABC refers to the budget for the contract duly approved by the Head of the Procuring Entity, as provided for in the GAA and/or continuing appropriations, in the case of NGAs; the corporate budget for the contract approved by the governing board, pursuant to E.O. No. 518 series of 1979 in the case of GOCCs and GFIs, and R.A. 8292 in the case of SUCs; and the budget approved by the Sanggunian in the case of LGUs. (IRR-A Section 5)

What is an ABC?

The ABC, insofar as National Government Agencies are concerned, refers to the budget for the contract duly approved by the Head of the Procuring Entity which is contained in the Agency Budget as reflected in the GAA or to be proposed in succeeding GAAs. Thus, the ABC referred to in the R.A. 9184 and its IRR-A basically refers to the proposed budget for the project approved by the Head of the Procuring Entity based on the APP as consolidated from various PPMPs. (GPPB Resolution 011- 2005 dated 26 May 2005)

Determining the Approved Budget for the Contract (ABC):

In determining the ABC, the PMO or end-user unit has to consider several factors, namely:

a. the appropriation for the project or procurement (whether taken from the current year’s appropriations or continuing appropriations),

b. the market price of the goods and/or services being procured, inflation and cost of money which are directly related to the procurement time table.

FORMAT OF THE PPMP

The PPMP shall contain the following information:

a.The name of the project/procurement;

b.General description of the project/procurement;

c.The extent/size of contract scopes/packages;

(This refers to the general description of the lot to be included

in a particular contract, i.e. the goods, infrastructure project or

services, or a combination of any two or three of these types of

procurement, including quantities where applicable.)

FORMAT OF THE PPMP

The PPMP shall contain the following information:

d.The procurement methods to be adopted, and indicating if the

procurement tasks are to be outsourced as provided in Section 53(e)

of the IRR-A;

e.The time schedule for each procurement activity; and

f.The ABC.

Preparation of the Annual Procurement Plan (APP)

The APP is the document that consolidates the various PPMPs submitted by the various PMOs and end-user units within the Procuring Entity.

It reflects the entirety of the procurement activities that will be undertaken by the Procuring Entity within the calendar year.

The APP is prepared by the BAC through the BAC Secretariat upon submission by the PMOs and end-user units of their respective PPMPs and finalized after the ABM has been approved by the DBM.


The APP shall subsequently be re-submitted by the BAC for approval to the Head of the Procuring Entity or a second-ranking official designated by the Head of the Procuring Entity to act on his behalf.

In preparing the APP, the BAC shall take into consideration the following factors:

a. The APP should include all procurement activities planned for the year. The approved APP shall be the basis for the Procuring Entity’s procurement, and only those projects / procurement included therein shall be undertaken.


b. The APP shall include only those procurements that are considered crucial to the efficient discharge of governmental functions. The IRR-A considers a procurement crucial to the efficient discharge of governmental functions if:

i. it is required for the day-to-day operations of the Procuring Entity; orii. it is in pursuit of the principal mandate of the Procuring Entity concerned.

c. The APP shall include provisions for foreseeable emergencies based on historical records. The BAC, through the BAC Secretariat, shall include therein a lump sum to cover for these emergencies or contingencies, which amount shall not be more than four percent (4%) of the Procuring Entity’s total appropriations for MOOE.

d. Scheduling of procurement activities should be done in such a manner that the BAC and the other offices/units in the Procuring Entity that are involved in the procurement process are able to efficiently manage the conduct of procurement.

What is a Procurement Strategy? The procurement strategy refers to the approach that will be adopted by the BAC in the procurement of the goods, infrastructure projects and consulting services included in the APP.

It reflects the entirety of the procurement activities that will be undertaken by the Procuring Entity within the calendar year.

In the review and consolidation of the PPMPs, the BAC will be able to determine the extent of diversity, quantities, quality, cost, the supply market, and other characteristics of the Procuring Entity’s requirements for the year.

The profile of the procurement is a major determinant in the choice of procurement strategy to be employed, as well as in the scheduling of procurement activities.

What is a Procurement Strategy?

There may be common requirements for the various PPMPs. For example, three projects require the purchase of five (5) units of laptop computers for each project office, or a total of fifteen (15) laptop computers. Obviously, it will be more cost effective and efficient if the BAC will procure the 15 laptop computers in one bidding exercise and as one bid lot.

The individual PPMPs sometimes reflect a mix of procurement types, for example, an ICT project might involve the procurement of goods (e.g., workstations, network equipment and peripherals), procurement of civil works (e.g., the installation of cables might involve the repair of some offices and other related civil works) and procurement of consulting services (e.g., design and development of information systems).


In similar cases, the BAC will have to exercise judgment in determining the bid lots and contract package.

There are two approaches to this case:

1. the project could be bid out as one package, or 2. it could be divided into several bid lots (i.e. supply of

hardware, supply and installation of cables, design and development of information systems, and repair of facilities).

There are advantages and disadvantages to both approach, and the BAC, through the help of the TWG and the Secretariat, shall determine which is the best option for the Procuring Entity.


In IRR-A, Section 5(p), in case of projects involving mixed procurements, the nature of the procurement, i.e. goods, infrastructure projects, or consulting services, shall be determined based on the primary purpose of the project.

This is helpful in determining which type of procurement procedure to apply. However, there may be instances when the PMO, end-user unit or the Procuring Entity itself may have difficulty determining or agreeing upon the primary purpose. In these cases, ascertaining the component with the highest price may be useful as an indicator of purpose, though not necessarily as a determining factor.

Format of the APPThe BAC may prepare three APPs, one each for Goods, Infrastructure Projects, and Consulting Services or a consolidated APP for all procurement activities.

The APP shall contain the following information:

a. Name of the project/procurement;

b. PMO or end-user unit;

c. General description of the project/procurement (general description of

requirements and quantities, where applicable);

d. The procurement methods to be adopted, and indicating if the

procurement

tasks are to be outsourced as provided in Section 53(e) of the IRR-A;

e. The time schedule for each procurement activity; and

f. The ABC.

PE shall prepare its proposed budget for the succeeding calendar year

The end-user units of the PE shall prepared their respective PPMP

The PPMP shall be submitted to PE budget office for evaluation, if

warranted, include it in the PE budget proposal for approval by the HOPE

PE budget office shall furnish the PE budget proposal as well as the PPMP to the BAC Secretariat for its review and consolidation into proposed APP

Final GAA, corporate budget, or appropriation ordinance

The End-user units shall revise and adjust the PPMP to reflect the budgetary allocation for their respective PAP’s. The revised

PPMP shall be submitted to the BAC, for finalization and mode of procurement under the proposed

APP. (The APP shall bear the approval of the HOPE or its designated representative)

Updating of individual PPMP and the consolidated APP for each PE shall be undertaken every 6 months or as often as may be required by the HOPE.

SECTION 7 – PROCUREMENT PLANNING & BUDGETING

• All procurement shall be within the Approved Budget of the PE

• No procurement shall be undertaken unless it is in accordance with the approved APP of the PE

Major functions of the Property and Supply Division

Major Functions of the Property & Supply Div.

Prepares Agency Procurement Request (APR) for all items to be procured from the DBM-PS

Accept deliveries of supplies, materials, and equipment based on the APR, Purchase Order (P.O), Contract, and request for the conduct of the inspection

Issues and distributes available supplies, materials, and equipment to requesting offices of the Procuring Entity.

Prepares and maintains Inventory Custodian Slip (ICS) for all inventory items, Report of Supplies and Materials Issued (RSMI), Stock Cards for supplies and materials and Property Card for all Property, Plant and Equipment (PPE)

Major Functions of the Property & Supply Div.

Prepares Acknowledgement Receipt of Equipment (ARE) for all (PPE)

Conduct physical inventory for all PPE and consolidate the same for the preparation of Annual Inventory Report

Disposes waste materials and all unserviceable equipment in accordance with applicable laws, rules, and regulations.

Issues clearance from property accountability of all officials and employees

Maintains and updates master lists of inventories of all PPE and inventory items

THE BIDS & AWARDS COMMITTEE (Procurement)

The PhilGEPS (Philippine Government Electronic Procurement Systems)

A central Portal that serve as the primary source of

information on all government procurement.

Main features of PhilGEPS

• The Electronic Bulletin Board

Centralized electronic bulletin board for posting procurement opportunities, awards, results of bidding and other related information.

• Registry of Manufacturers, Suppliers, Distributors, Contractors, and Consultants

• The Electronic Catalogue

PE shall procure common – use goods, supplies, materials and equipment from the Electronic Catalogue of PhilGEPS

*Section 364 – The Committee on Awards

There shall be in every province, city or municipality a Committee on Awards to decide the winning bids and questions on awards on procurement and disposal of property

BAC Composition

The Head of the Procuring Entity shall designate at least five (5) but not more than seven (7) members to the BAC

BAC Composition for NGAs, departments, bureaus, offices, judicial and legislative branches, commissions, SUCs, GOCCs, & GFIs

Regular Members:

Chairman, who is at least a third ranking permanent officials of the PE

An officer, who is at least a fifth ranking permanent officials who shall represents the legal / admin. Area of PE. (bureaus, offices, BAC members shall be at least third ranking permanent personnel)

An officer, who is at least a fifth ranking permanent officials who shall represents the finance area. (bureaus, offices, BAC members shall be at least third ranking permanent personnel)

BAC Composition for NGAs, departments, bureaus, offices, judicial and legislative branches, commissions, SUCs, GOCCs, & GFIs

Provisional Members:

An officer who has technical expertise relevant to the procurement at hand

A representative from the end user unit who has knowledge of procurement laws and procedures

The Chairman and the Vice-Chairman shall also be designated by the HOPE. Moreover, the Vice-Chairman shall be a regular member of the BAC.

BAC Composition for Local Government Units (LGU)

• One representative each from the regular offices under the Office of the Local Chief Executive; and

• A representative from the end-user unitThe HOPE may designate alternate members to the BAC whenever their principals are absent

TERMS OF OFFICE – 1 YEAR (RENEWABLE)

Sec. 354 (RA 7160) The Committee on Awards shall be composed of the Local Chief Executive as Chairman; Sec.11.2.5 (RA 9184) In no case shall the HOPE and/or the approving authority be the Chairman or a member of the BAC

FUNCTIONS OF THE BAC

1. Advertise the invitation to bid/request for exp. Of interest;

2. Conduct pre-proc. and pre-bid conferences;

3. Determine the eligibility of bidders;

4. Receive bids and conduct evaluation of bids;

5. Undertake post-qualification proceedings;

6. Receive motion for reconsideration;

7. Recommend awards of contract to the HOPE ;

8. Creation of Technical Working Group (TWG);

9. Responsible for ensuring that the PE abides by the standard set forth by the Act and this IRR;

Section 13 - Observers1. Commission on Audit (COA) Representative

2. At least one (1) shall come from a duly recognized private group in a sector relevant to the procurement at hand, for example:

a) For Infrastructure projects, national associations of constructors duly recognized by the Construction Industry of the Philippines (CIAP), such as but not limited to the following:

• Philippine Constructors Associations, Inc.;

• Nat’l Constructors Assoc. of the Phil., Inc.; &

• Phil. Institute of Civil Engineers(PICE)

Section 13 - Observers

c) For consulting services, a project-related professional organization accredited or duly recognized by the Professional Regulation Commission or the Supreme Court, such as but not limited to:

• PICE;

• Phil. Inst. Of Certified Public Accountants;

• Confederation of Filipino Consulting Organizations; and

b) For goods, a specific relevant chamber-member of the Philippine Chamber of Commerce and Industry.

3. Non-government organization (NGO)

FUNCTIONS & RESPONSIBILITIES OF THE BAC SECRETARIAT

1. Provide administrative support to the BAC;

2. Organize and make all arrangement for the BAC meetings;

3. Prepare minutes of meetings and resolutions of the BAC;

4. Take custody of procurement documents and records;

5. Distribution of BidDocs to the interested bidders;

6. Advertise opportunities, incl. BidDoc,and notice of awards;

7. Managing the procurement processes;

8. Consolidate PPMPs

9. Act as the central of communications for the BAC with end users, PMOs, other units, and providers of services & public

The HOPE shall ensure that the members of the BAC and TWG shall give UTMOST PRIORITY to BAC assignments over all other duties and responsibilities, until the requirements for the said assignments at hand are completed.

AVAILABILITY OF BIDDING DOCUMENTS

For the procurement of goods and infrastructure projectsFrom the time the Invitation to Bid (ITB) is first advertised or posted until the deadline for the submission and receipt of bids.

For the procurement of consulting services

From the time the Request for Expression of Interest is first advertised until the deadline for the eligibility check, and the Bidding Documents, from the determination of the short list until the deadline for the submission and receipt of bids.

Bidders may be asked to pay for the Bidding Documents to recover the cost of its preparation and development

• Agency’s website

• PhilGEPS

Bidding Documents shall be posted at:

Prospective bidders may download the Bidding Documents from any of the said websites; provided that, bidders shall pay the fees for the Bidding Documents upon submission of their bids.

• Conspicuous places

• Newspaper; if applicable

• (Purchase Request) Reference to brand names shall not be allowed

• No aspects of the Bidding Documents shall be divulged or released to any prospective bidder or person having direct or indirect interest in the project to be procured, or to any party, except those officially authorized in the handling of the documents

Points to Remember

SECTION 20 - Pre-Procurement Activities

1. Confirm the description and scope of the contract, the ABC, and contract duration.

2. Ensure that the procurement is in accordance with the project and annual procurement plans;

3. Determine the readiness of the procurement at hand

4. Review, modify, and agree on the criteria for eligibility, screening, evaluation and post-qualification

5. Review and adopt the procurement schedule, incl. deadlines, and timeframes for the different activities; and

6. Reiterate and emphasize the importance of confidentiality

The holding of a pre-procurement conference may not be required for:

Procurement of Goods

costing Two Million Pesos (Php2, 000,000.00) and below

Infrastructure Projects

costing Five Million Pesos (Php5, 000,000.00) and below

Consulting Services

costing One Million (Php1, 000,000.00) and below

SECTION 2 – Pre-bid Conference

For contracts to be bid with an ABC of One Million Pesos (P1, 000, 000.00) or more, the BAC SHALL CONVENE at least (1) pre-bid conference to clarify, and/or explain any of the requirements, terms, conditions, and specifications stipulated in the Bidding Documents.

P1MPre-bid Conference is

required

At the discretion of the BAC

SECTION 2 – Pre-bid Conference

Pre-bid Conference Opening & submission of bidsAt least 12 cd.

The minutes of the pre-bid conference shall be recorded and made available to all participants not later than (3) calendar days after the pre-bid conference.

Warning!Statement made at the pre-bid conference shall not modify the terms of the BidDocs, unless such statement is specifically identified in writing as an amendments thereto and issued as a Supplemental / Bid Bulletin.

Receipt and Opening of Bids

Class “A” documents

Legal Documents1. Registration Certificate from SEC, Department of Trade and

Industry (DTI) for sole proprietorship, 3. Cooperative Development Authority (CDA) for cooperatives

Technical Documents

2. Mayor’s permit where the principal place of business of the prospective bidder is located.

1. Statement of the pros. Bidder of all its ongoing and completed government and private contracts, incl. Contracts awarded but not yet started.

2. Philippine Contractors Accreditation Board (PCAB) for Infrastructure projects

Class “B” documents

Receipt and Opening of Bids

Financial Documents1. Audit Financial Statement showing total current assets and

liabilities. Stamped “RECEIVED” by the BIR

2. NFCC or a commitment from a Universal or commercial bank to extend a credit line. (CLC)

3. Bill of Quantities/ Materials and Bid Form

Eligibility CriteriaGoods Infrastructure/civil

worksConsulting services

Duly licensed Filipino Duly licensed Filipino Duly licensed Filipino

Duly organized partnership (60%) Duly organized partnership (75%) Duly organized partnership (60%)

Duly organized corporation(60% Outstanding Capital Stock)

Joint venture (75%) /(ownership of the Filipino shall not be less than25%)

Duly organized corporation(60% Outstanding Capital Stock)

Duly organized cooperatives (60%) Project is under Treaty or International Agreement

Duly organized cooperatives (60%)

Joint venture (60%) Licensed by PCAB Joint venture (60%)

The bidder have completed at least two (2) similar contracts and the aggregate contract shall be equivalent to at least the percentage of the ABC as required. (50% / 25 % for expendable supplies)

Constructors Performance Evaluation Summary rating and or certificate of completion and owner’s acceptance of the contract must be satisfactory

The largest of these similar contract must be equivalent to atleast half of the percentage of ABC

The bidder must have an experience of having completed 10 years from the date of submission and receipt of bids

If, NFCC atleast equal to the ABC to be bid; or

If, NFCC atleast equal to the ABC to be bid; or

If, CLC must be atleast equal to 10% of the ABC to be bid

If, CLC must be atleast equal to 10% of the ABC to be bid

NFCC = [(current assets minus current liabilities) (K)] minus the value of all going outstanding or uncompleted portions of the project under ongoing projects, including awarded contracts to be started .

Where; K=

One year or less More than one year – 2 years More than 2 years

10 15 20

Submission and Receipt of BidsF

irst

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Eligibility requirements

And technical components

Sec

ond

enve

lope

Financial Component

Don’t open before the scheduled opening date &

time

SEALED BAC

For the procurement of GOODS


irst

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The bid security in the prescribed form, amount and validity

Technical specifications

• production/delivery schedule• manpower requirements; and/or • after-sales services/parts, if applicable

Sworn statement

• It is not “blacklisted”• all copies submitted are authentic, original, complete and are true and correct• authorizing the HOPE to verify all the documents submitted; • the signatory is the duly authorized representatives• It complies with the responsibilities of a prospective or eligible bidder provided in the PBD; and•It complies with existing laws and standards, in the case of procurement of services

For the procurement of CIVIL WORKS

For the procurement of CONSULTING

SERVICES



irst

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The bid security in the prescribed form, amount and validity

Project Requirements

• Organizational chart for the contract to be bid; • List of contractor’s personnel, to be assigned to the contract to be bid, with their complete qualification experience data; •List of contractor’s equipment units, which are owned, leased, and / or under purchase agreements supported by certification of availability of equipment from the equipment lessor/vendor for the duration of the project; and



SERVICES

Sworn statement

• It is not “blacklisted”• all copies submitted are authentic, original, complete and are true and correct• authorizing the HOPE to verify all the documents submitted; • the signatory is the duly authorized representatives• It complies with the responsibilities of a prospective or eligible bidder provided in the PBD; and•It complies with existing laws and standards, in the case of procurement of services



irst

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The bid security in the prescribed form, amount, and validity period;

Organizational chart for the contract to be bid;

List of completed and on-going projects;



SERVICES

Approach, work plan, and schedule

List of key personnel to be assigned to the contract to be bid, with their complete qualification and experience data; and

Sworn statement

• It is not “blacklisted”• all copies submitted are authentic, original, complete and are true and correct• authorizing the HOPE to verify all the documents submitted; • the signatory is the duly authorized representatives• It complies with the responsibilities of a prospective or eligible bidder provided in the PBD; and•It complies with existing laws and standards

Submission and Receipt of Bids

Sec

ond

enve

lope

Financial

Information/

documents

Submission and Receipt of Bids

Bids shall be received by the BAC on the date, time, and place specified in the ITB/RFEI.

Bids incl. eligibility requirements submitted after the deadline SHALL NOT BE ACCEPTED by the BAC.

Bid Security All bids shall be accompanied by a bid security

Bid security shall be in an amount equal to a percentage of the ABC in accordance with the following:

FORM OF BID SECURITY AMOUNT OF BID SECURITY (Equal to Percentage of the ABC)

a) Cash or cashier’s/manager’s check issued by a Universal or Commercial Bank

Two per cent (2%)b) 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.

c) Surety bond callable upon demand issued by a surety or insurance company duly certified by the Insurance Commission as authorized to issue such security

Five per cent (5%)

d) Any combination of the foregoing Proportionate to share of form w/ respect to total amount of security

When the Bid Security shall be returned?

After the bidder with the LCRB or HCRB has signed the contract and furnish performance security

Bidders declared by the BAC as failed or post-disqualified and upon submission of a written waiver of their right to file a motion for reconsideration and / or protest.

Bid Validity

Shall in no case exceed the period of one hundred twenty (120) c.d. from the date of opening of bids.

Bid Opening

The BAC shall open the bids at the;

Time,

Date,

Place specified in the BidDocs

The BAC shall adopt a procedure ensuring the;

Integrity,

Security,

confidentiality

Preliminary Examination of Bids

The BAC shall check the submitted documents of each bidder against a checklist required documents to ascertain if they are all present

Using a non-discretionary “PASS/FAIL” criterion

Fir

st e

nvel

ope



Preliminary Examination of Bids

The BAC shall check the submitted documents of each bidder against a checklist required documents to ascertain if they are all present

Using a non-discretionary “PASS/FAIL” criterion

Sec

ond

Env

elop

e

Financial Component

SAMPLE CHECKLIST

Ceiling of Bid Prices

The ABC shall be the upper limit or ceiling for acceptable bid prices

Bid Evaluation for goods/Infrastructure

The BAC shall immediately conduct a detailed evaluation of bids using non discretionary criteria in considering the following:

Completeness of the bid.

Responsive bill of Quantities/Materials

Non-responsive bill of Quantities/Materials

Responsive bill of Quantities/Materials (free)

Arithmetical corrections

The BAC shall evaluate on an equal footing to ensure fair and competitive bid comparison. For this purpose, all bidders shall be required to include the cost of all taxes.

In case of discrepancies between:

AREAS OF DISCREPANCIES PREVAILING AREA

Bid price in figures Bid price in words Bid price in words

Total price per item Unit price for the item as extended or multiplied by the quantity of that item

Unit price for the item as extended or multiplied by the quantity of

that item

Stated total price Actual sum of prices of component items

Actual sum of prices of

component items

Unit cost in the detailed estimate

Unit cost in the bill of quantities

Unit cost in the bill of quantities

Bids shall be ranked in the ascending order of their total calculated bid prices, as evaluated and corrected for computational errors. WARNING! total calculated bid prices, as evaluated and corrected for computational errors and other modifications, which exceed the ABC shall be disqualified.

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 AoB and attach thereto all the bids with the corresponding bid securities and the minutes of the proceedings of the bidding. The Abstract shall contain the following:

Name of the contract and its location, if applicable

Time, date, and place of bid opening; and

Names of bidders and their corresponding bid prices arranged from lowest to highest, the amount of bid security and the name of the issuing entity

REMEMBER!

From submission and receipt of bids until the approval by the HOPE of the ranking of short listed bidders, those that have submitted their bids are PROHIBITED from making any communication with any BAC member, including its staff and personnel, as well as its BAC secretariat and TWG, regarding matters connected to their bids. However, the BAC, through its Secretariat, may ask in writing the bidder for clarification of its bid. All responses to requests for clarification shall be in writing.

Bid Evaluation of short listed bidders for consulting services

The purpose of bid evaluation is to determine the Highest Rated Bid (HRB) using the following steps:

Quality-Based Evaluation Procedure

1. A two-stage procedure shall be adopted whereby each consultant shall be required to submit his technical and financial proposals simultaneously in separate sealed envelopes.

2. After receipt of bids, the technical proposals shall first be opened and evaluated. The BAC shall rank the consultants in descending order based on the numerical ratings of their technical proposals and identify the HRB. Provided, however, that the HRB shall pass the minimum score indicated in the Bidding Documents.


3. The HOPE shall approve or disapprove the recommendations of the BAC within two (2) calendar days after receipt of the results of the evaluation from the BAC.

4. After approval by the HOPE of the HRB, its financial proposal shall then be opened. The BAC shall, within three (3) cd. Notify and invite the consultant with the HRB for the opening of financial proposal for the purpose of conducting negotiations with the said consultants. In the letter of notification, the BAC shall inform the consultant of the issues in the technical proposal the BAC may wish to clarify during the negotiations.

5. The total contract amount shall not exceed the ABC as stated in the BidDocs.

Bid Evaluation of short listed bidders for consulting services (Graphic Presentation)

Consultant A

Consultant B

Consultant C

Technical Proposal

Technical Proposal Financial

Proposal

Financial Proposal

Technical Proposal


Proposal

Financial Proposal

Technical Proposal


Proposal

Financial Proposal

BAC

THE BAC shall open the Technical Proposals

Technical Proposal

of Consultant

A

Technical Proposal

of Consultant

A

Technical Proposal

of Consultant

B

Technical Proposal

of Consultant

B

Technical Proposal

of Consultant

B

Technical Proposal

of Consultant

B

Arranged in Descending order

based on numerical rating

Consultant A – 85%


Consultant B– 97.50%


Consultant C – 80 %


Bid Evaluation of short listed bidders for consulting services (Graphical Presentation)

Arranged in Descending order

based on numerical rating







HRBHEAD OF THE PROCURING ENTITY

Within two (2) days:

APPROVE

DISAPPROVE

The recommendations of the BAC

BIDS & AWARDS COMMITTEE

After 3 days, the BAC shall notify and invite the consultant with HRB for the opening of the

And for the NEGOTIATION

Financial proposal of Consultant

B

Financial proposal of Consultant

B


FINANCIAL PROPOSALS

BB

Opened by the BAC

AA

CC Return to the respective

consultants UNOPENED


The purpose of bid evaluation is to determine the Highest Rated Bid (HRB) using the following steps:

Quality-Cost Based Evaluation Procedure

1. The technical proposal together with the financial proposal shall be considered in the evaluation of consultants. The technical proposals shall be evaluated first. The financial proposal of the consultants WHO MEET THE MINIMUM TECHNICAL SCORE shall then be opened.

2. The financial and technical proposal shall be given corresponding weights with the financial proposal given a minimum weight of fifteen percent (15%) up to a maximum of forty percent (40%). The weight of the technical criteria shall be adjusted accordingly such that their total weight in percent together with the weight given to the financial proposal shall add to one hundred percent (100%).


The exact weight SHALL BE APPROVED BY THE HOPE upon the recommendation of the BAC and indicated in the BidDocs. The BAC shall rank the consultants in descending order based on the combined numerical ratings of their technical and financial proposals and identify the HRB.

3.The HOPE shall approve and disapprove the recommendations of the BAC within two (2) cd after receipt of the results of the evaluation from the BAC.

4.After approval by the HOPE of the HRB, the BAC shall within three (3) cd, notify and invite the consultant with the HRB for negotiation.


Consultant A

Consultant B

Consultant C

Technical Proposal


Proposal

Financial Proposal

Technical Proposal


Proposal

Financial Proposal

Technical Proposal


Proposal

Financial Proposal

BA

C


Technical Proposal

of Consultant

A

Technical Proposal

of Consultant

A

Technical Proposal

of Consultant

B

Technical Proposal

of Consultant

B

Technical Proposal

of Consultant

C

Technical Proposal

of Consultant

C

Afterwhich, the BAC shall open the Financial

Proposals

Financial Proposal

of Consultant

A

Financial Proposal

of Consultant

A

Financial Proposal

of Consultant

B

Financial Proposal

of Consultant

B

Financial Proposal

of Consultant

C

Financial Proposal

of Consultant

C



Technical Proposal

of Consultant

A

Technical Proposal

of Consultant

A

Technical Proposal

of Consultant

B

Technical Proposal

of Consultant

B

Technical Proposal

of Consultant

C

Technical Proposal

of Consultant

C

Afterwhich, the BAC shall open the Financial

Proposals

Financial Proposal

of Consultant

A

Financial Proposal

of Consultant

A

Financial Proposal

of Consultant

B

Financial Proposal

of Consultant

B

Financial Proposal

of Consultant

C

Financial Proposal

of Consultant

C

++

+

WEIGHTS

Technical (dependent

to the weight of

the Financial)

?

Financial weights is

within 15 % - 40 %

15 % - 40 %

TOTAL WEIGHT

100%The highest rating after adding the scores of Technical and Financial proposals shall be recommended to the HOPE for HRB.


Rating(Technical +

Financial)







HRBHEAD OF THE PROCURING ENTITY

Within two (2) days:

APPROVE

DISAPPROVE

The recommendations of the BAC

BIDS & AWARDS COMMITTEE

After 3 days, the BAC shall notify and invite the consultant with HRB for NEGOTIATION

Criteria in evaluating technical proposals of consultants

• Quality of personnel to be assigned to the project which covers suitability of key staff to perform the duties of the particular assignments and general qualifications and competence including education and training of the key staff

• Experience and capability of the consultant which include records of previous engagement and quality of performance in similar and in other projects; relationship with previous and current clients; and overall work commitments, geographical distribution of current/impending projects and attention to be given by the consultant

• Plan of approach and methodology with emphasis to clarity, feasibility, innovativeness, and comprehensiveness of the plan approach, and the quality of interpretation of project problems, risks and suggested solutions

REMEMBER!

All participating short listed consultants shall be furnished the results (ranking and total scores only) of the evaluation after the approval of the HOPE of the ranking. Said results shall be posted in the PhilGEPS and the website of the PE

What should be discussed in the Negotiation stage?

• Discussion and clarification of the TOR and Scope of Services;

• Discussion and finalization of the methodology and work program proposed by the consultant;

• Consideration of appropriateness of qualifications and pertinent compensation, number of man-months and the personnel to be assigned to the job, taking note of over-qualified personnel, to be commensurate with the compensation of personnel with the appropriate qualifications, and schedule of activities;

• Discussion on the services, facilities and data, if any, to be provided by the PE concerned;

• Discussion of financial proposal submitted by the consultant; and

• Provisions of the contract

Shall be completed within ten (10) calendar days. There should be no replacement of key personnel before the awarding of contract.

Objective and process of Post-qualification

• The LCB/HRB 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 BidDocs.

• Within three (3) cd from receipt by the bidder of the notice from the BAC that the bidder has the LCB or HRB, the bidder shall submit the following requirements to the BAC:

1. Tax clearance;

2. Latest income and business tax returns;

3. Certificate of PhilGEPS registration; and

4. Other appropriate license and permits required by law and stated in the

BidDocs.


• The post qualification shall verify, validate, and ascertain all statements made and documents submitted by the bidder with the LCB/HRB, using non-discretionary criteria. This criteria shall not be limited to, the following:

A. Legal Requirements. To verify, validate, and ascertain licenses, certificates, permits, and agreements submitted by the bidder, and the fact it is not included in any “blacklisted”.

B. Technical Requirements. To determine compliance of the goods, infrastructure projects, or consulting services offered with the requirements specified in the BidDocs, including:

i. Verification and validation of the bidder’s stated competence and experience, and the competence and experience of the bidder’s key personnel to be assigned to the project, for the procurement of infrastructure projects and consulting services;


ii. Verification of availability and commitment, and / or inspection and testing for the required capacities and operating conditions, of equipment to be owned/leased;

iii. Verification and/or inspection and testing of the goods/product, after-sales and / or maintenance capabilities, and;

iv. Ascertainment of the sufficiency of the bid security as to type, amount, form and wording, and validity period;

C. Financial Requirements. To verify, validate and ascertain the bid price proposal of the bidder and, whenever applicable, the required CLC in the amount specified and over the period stipulated in the BidDocs, or the bidder’s NFCC to ensure that the bidder can sustain the operating cash flow of the transaction.

If the BAC determines that the bidder with the LCB/HRB passes all the criteria for post-qualification, it shall declare the said bid as the LCRB/HRRB, and recommend to the HOPE the award of contract, however, if the BAC determines that the bidder with the LCB/HRB fails the criteria for post-qualification, it shall immediately notify the said bidder in writing of its post-qualification and the grounds for it. Immediately after the BAC has notify the first bidder of its post-qualification, 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 LCB/HRB. If the second passes the post-qualification, and provided that the request for reconsideration of the first bidder has been denied, the second bidder shall be post-qualified as the bidder with the LCRB/HRRB. If the second bidder, however, fails the post-qualification, the procedure for post-qualification shall be repeated for the bidder with the next LCB/HRB, and so until the LCRB/HRRB, as the case maybe, is determined for award.

The post-qualification process shall be completed in not more than seven (7) cd from the determination of LCB/HRB. In exceptional cases, the post-qualification period may be extended by the HOPE, but in no case shall aggregate period exceed thirty (30) cd.

FAILURE OF BIDDING

The BAC shall declare the bidding of failure when:

• No bids are received;

• All Prospective bidders are declared ineligible;

• 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 negotiations; or

• The bidder with the LCRB/HRRB refuses, without justifiable cause, to accept contract, and no award is made in accordance with Section 40 (failure to enter into contract and post – security ) of the act and this IRR

In order to determine the reason for the failed bidding, the BAC shall conduct a mandatory review and evaluation of the terms, conditions, and specifications in the BidDocs, including its cost estimates. Based on its findings, the BAC shall revise the terms, conditions, and specifications, and if necessary, adjust the ABC, subject to the required approvals, and conduct a re-bidding with re-advertisement and/or posting.

All bidders who have initially responded to the Invitation to Bid/Request for Expression of Interest and have been declared eligible or shortlisted in the previous biddings shall be allowed to submit new bids.

The BAC shall observe the same process and set the new periods according to the same rules followed during the previous bidding(s).

Should there occur a second failure of bidding, the procuring entity may resort to negotiated procurement.

SINGLE CALCULATED/RATED AND RESPONSIVE BID

A single calculated/responsive bid shall be considered for award if it falls under any of the following circumstances:

• Only one prospective bidder submit a LOI and/or applies for eligibility check, and it meets the eligibility requirements of the criteria, after which it submits a bid which is found to be responsive to the bidding requirements;

• More than one prospective bidder submits LOI and/or applies for eligibility check, but only one bidder meets the eligibility requirements of the criteria, after which it submits a bid which is found to be responsive to the bidding requirements; or

• 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.

NOTICE AND EXECUTION OF AWARD

The BAC shall recommend to the HOPE the award contract to the bidder with the LCRB/HRRB or the SCRB/SRRB after the post-qualification process has been completed.

• Resolution of the BAC recommending award;

To facilitate the approval of the award, the BAC shall submit the following supporting documents to the HOPE:

• Abstract of bids;

• Duly approved program of work or delivery schedule and cost estimates;

• Document issued by appropriated entity authorizing the procuring entity to incur obligation for a specified contract; and

• Other pertinent documents required by existing laws, rules, and/or the procuring entity concerned

If the award is approved, the HOPE shall immediately issue the Notice of Award to the bidder with LCRB/HRRB. In the event that the HOPE shall disapprove such recommendation, such disapproval shall be based only on valid, reasonable, and justifiable grounds to be expressed in writing, copy furnished by the BAC.

Contract award shall be made within the bid security period provided in Section 28 (bid validity – shall not exceed 120 cd. – the PE can request for extension but the bidder can deny it without forfeiting their bid security).

The BAC, through the Secretariat, shall post, within, three (3) cd from the issuance, the Notice of Award in the PhilGEPS, the website of the procuring entity, if any, and any conspicuous place in the premise of the procuring entity

CONTRACT SIGNING

The winning bidder shall post the REQUIRED PERFORMANCE SECURITY and enter into contract with the procuring entity within (10) cd from the receipt by the winning bidder of the NoA. The procuring entity shall enter into contract within the same period provided that all documentary requirements are complied with, to wit:

• Contract Agreement;

• Bidding Documents;

• Winning bidder’s bid, including proposals submitted;

• Notice of Award of Contract;

Procedural Steps for the Public Bidding of Goods and Services ( Revised IRR, GPPB

Res. 03-2009 )

Pre-ProcurementConf.

Advertise/Post ITBCall/Hold Pre-Bid

Conference

Open Technical (with eligibility documents)

Envelope

OpenFinancial Envelope

Receive the Two (2)

Envelopes

Submission ofAdditional Req.

Post-qualify LCB

IssueNotice to Proceed

Pre-Bid C. at least 12 c.d. before bid opening

1 c.d.

1 c.d.

7 c.d.

Within 30 c.d.

.Posting – 7 c.d.

within 3 c.d.

Prepare &Sign Contract

7 c.d.GOCC/GFIs- 15cd

Within 10 c.d.

Approve Resolution / Issue Notice

of Award - LCRB

Issue BiddingDocuments

Evaluate & Rank Bid/s

Within 3 c.d.

PERIOD OF ACTION ON PROCUREMENT ACTIVITIES

Opening of Bids

Opening of Bids

Award of Contract

This procurement process shall not exceed three (3) months

All members of the BAC shall be on a

“jury duty” type of assignment until the NoA is issued by the HOPE in order to complete the entire procurement process at the earliest possible time.

To guarantee the faithful performance by the winning bidder of its obligations under the contract in accordance with the BidDocs, it shall post performance security prior to the signing of contract.

PERFORMANCE SECURITY

PERFORMANCE SECURITY

The performance security shall be in an amount equal to a percentage of the total contract price in accordance with the following schedule:

Form of Performance Security

Amount of Performance Security (Equal to percentage of the total

contract price)

a) Cash or cashier’s/manager’s check issued by a Universal or Commercial Bank Goods and Consulting Services – Five

percent (5%)

Infrastructure Projects – Ten percent (10%)

b) 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 foreign bank.

c) Surety bond callable upon demand issued by a surety / insurance company duly certified by the Insurance commission as authorized to issue such security.

Thirty percent(30%)

d) Any combination of the foregoing Proportionate to share of form with respect to total amount of security

The performance security shall be denominated in Philippine pesos and posted in favor of the procuring entity, which shall be forfeited in the event it is established that the winning bidder is in default in any of its obligations under the contract.

The performance security shall remain valid until issuance by the procuring entity of the final Certificate of Acceptance.

The performance security may be released by the PE after the issuance of CA, subject to the following conditions:

• PE has no claims filed against the contract awardee or the surety company;

• It has no claims for labor and materials filed against the contractor; and

• Other terms of the contract

If the bidder with LCRB/HRRB or the bidder with Single Calculated/Rated Responsive Bid, fails, refuses or is unable to submit documents required or make good its bid by entering into a contract with the procuring entity or post the required Performance Security within the period of 10 cd, the bid security shall be forfeited and with appropriate sanctions, except where such failure, refusal, or inability is through no fault of the said bidder.

In case of failure, the BAC shall disqualify the said bidder and shall initiate and complete post-qualification process on the bidder with the second LCB/HRB. This procedure shall be repeated until LCRB/HRRB is determined for award.

FAILURE TO ENTER INTO CONTRACT AND POST PERFORMANCE SECURITY

The HOPE reserves the right to reject any and all bids, declares a failure to bidding, or not award the contract in the following situations:

RESERVATION CLAUSE

• If there is prima facie evidence of collusion between:

Appropriate public officers or employees of the procuring entity;

BAC and any of the bidders;

Among the bidders themselves;

Bidder and a third party, including any act which restricts, suppresses, or nullifies or tends to restrict, suppress or nullify competition;

• If the BAC is found to have failed in following the prescribed bidding procedures; or

• For any justifiable and reasonable grounds where the award of the contract will not redound to the benefits of the GOP, as follows:

If the physical and economic conditions have significantly changed so as to render the project no longer economically, financially, or technically feasible, as determined by the HOPE;

If the project is no longer necessary as determined by the HOPE;

If the source of funds for the project has been withheld or reduced through no fault of the PE.

RESERVATION CLAUSE

All bid shall be accompanied by a SWORN STATEMENT of the bidder that itis not related to the HOPE, members of the BAC, the TWG, and the BAC secretariat,the head of the PMO or the end-user unit, and the project consultants, by consanguinityor affinity up to the THIRD CIVIL DEGREE.

For this reason, relation to the aforementioned persons shall automatically disqualify the bidder from participating in the procurement of contracts of the PE. This apply to thefollowing persons:

If the bidder is an individual or a sole proprietorship, to the bidder himself;

If the bidder is a partnership, to all its officers and members;

If the bidder is a corporation, to all its officers, directors, and controlling stockholders; and

DISCLOSURE OF RELATIONS

The method of procurement to be used shall be indicated in the approved APP. If the original mode of procurement recommended in the APP was public bidding but cannot be ultimately pursued, the BAC, through a resolution, shall justify and recommend the change in the mode of procurement to be approved by the HOPE.

ALTERNATIVE METHODS OF PROCUREMENT

• LIMITED SOURCE BIDDING

-Otherwise known as “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. This alternative mode of procurement may be employed under any of the following conditions:

Procurement of highly specialized types of goods and consulting services whereby only a few suppliers or consultant are known to be available; or

Procurement of major plant components


• DIRECT CONTRACTING

- is also known as “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 sales.

Direct contracting may be resorted to under any of the following conditions:

Procurement of goods of proprietary nature which can be obtained only from the proprietary source;

When the procurement of critical plant components from a specific supplier ;

Those sold by an exclusive dealer or manufacturer.


• REPEAT ORDER

- repeat order, when provided for in the APP, 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.

Repeat order may be resorted to under any of the following conditions:

Unit prices of the repeat order must be the same as or lower that those in the original contract;

will not result to splitting of contracts, requisitions, or purchase orders;

shall be availed of only within six (6) months from the contract effectivity date stated in the NTP arising from the original contract; and

shall not exceed twenty-five percent (25%) of the quantity of each item in the original contract.


• SHOPPING

- is a method of procurement of goods whereby the PE 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.

Shopping may be employed in any of the following cases:

a) when there is an unforeseen contingency requiring immediate purchase: Provided however that the amount shall not exceed the thresholds prescribed.

b) Procurement of ordinary or regular office supplies and equipment not available in the procurement service involving an amount not exceeding the thresholds prescribed.

TAKE NOTE!

“Ordinary or regular office supplies” shall be understood to include those supplies, commodities, or materials, which, depending on the procuring entity’s mandate and nature of operations, are necessary in the transaction of its official businesses, and consumed in the day-to-day operations.

However, office supplies shall not include services such as repair, and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services.

DOF Classification of LGU’s

Maximum Amount (in Philippine Peso)

Province City Municipality

1st class 100,000 100,000 50, 000

2nd class 100,000 100,000 50, 000

3rd class 100,000 80, 000 50, 000

4th class 80, 000 60, 000 50, 000

5th class 60, 000 50, 000 50, 000

6th class 50, 000 50, 000 50, 000

THRESHOLDS FOR SHOPPING – (a)

a. For NGAs, GOCCs, GFIs, and SUCs - One Hundred Thousand Pesos (P100, 000.00)

b. For LGUs, in accordance with the following schedule:

In case of barangays - Fifty Thousand Pesos (P50, 000.00)

DOF Classification of LGU’s

Maximum Amount (in Philippine Peso)

Province City Municipality

1st class 500,000 500,000 100, 000

2nd class 500,000 500,000 100, 000

3rd class 500,000 400, 000 100, 000

4th class 400, 000 300, 000 50, 000

5th class 300, 000 200, 000 50, 000

6th class 200, 000 100, 000 50, 000

THRESHOLDS FOR SHOPPING & SVP– (b)

a. For NGAs, GOCCs, GFIs, and SUCs - Five Hundred Thousand Pesos (P500, 000.00)

b. For LGUs, in accordance with the following schedule:

In case of barangays - Fifty Thousand Pesos (P50, 000.00)


• NEGOTIATED PROCUREMENT

- After conduct of mandatory review, the BAC shall revise and agree on the minimum technical specifications, and if necessary, adjust the ABC. However, the ABC cannot be increased by more than twenty percent (20%) of the ABC for the last failed bidding.

- The BAC shall invite and engage in negotiations with a sufficient number of suppliers, contractors, or consultants to ensure effective competition.

1. Two – Failed Biddings

- is a method of procurement of goods, infrastructures, and consulting services, whereby the PE directly negotiates a contract with a technically, legally, and financially capable supplier, contractor or consultant in any of the following cases.


- Any requirements, guidelines, documents, clarifications, and other information shall be communicated by the PE to suppliers, etc. On an equal basis.

- Following the completion of the negotiations, the PE shall request all suppliers, etc to submit, on a specified date, a best and final offer with respect to all aspects of their proposals.

-The procuring entity shall select the successful offer on the basis of such best and final offers.

-In all stages of the negotiations, observers shall be invited.

2. Emergency Cases.

- In case of imminent danger to life or property during a state of calamity, or when time is of the essence of arising from natural or man – made calamities or other causes where immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public service and public utilities.


3. Agency – to - Agency

- Procurement of infrastructure projects, consulting services, and goods from another agency of the GOP, such as the PS – DBM, which is tasked with a centralized procurement of Common-Use supplies for the GOP.

4. Procurement Agent

- Procuring entities which may not have the proficiency or capability to undertake a particular procurement, as determined by the HOPE, may request other GOP agencies to undertake such procurement for them, or at their option, result and hire consultants to assist them directly and/or train their staff in the management of the procurement functions.


5. Highly Technical Consultants.

- Individual consultants hired to do work that is (i) highly technical (ii) primarily confidential where trust and confidence are the primary consideration for the hiring of consultant. Provided, however, shall, at the most, be on six month basis, renewable at the option of the HOPE, but in no case shall exceed the term of 6 months.

6. Defense Cooperation Agreement.

- Upon approval by the President of the Philipines, and when the procurement for use by the AFP involves major defense equipment or materials and/or defense-related consultancy services, when expertise required is not available locally, and the Secretary of National Defense has determined that the interests of the country shall be protected by negotiating directly with an agency or instrumentality of another country with which the Philippines has entered into a defense cooperation agreement or otherwise maintains diplomatic relations: Provided, however, that the performance by the supplier of its obligations under the procurement of contract shall be covered by a performance security.


7. Small Value Procurement.

- Where the procurement does not fall under shopping and the amount does not exceed the thresholds prescribed.

The procuring entity shall draw up a list of at least three (3) suppliers, contractors, or consultants, of known qualifications which will be invited to submit proposals, in the case of goods and infrastructure projects, or curriculum vitae, in the case of consulting services.

8. Lease of Real Property

9. NGO Participation.

- When an appropriation law or ordinance earmarks an amount to be specifically contracted out to NGO, the PE may enter into a Memorandum of Agreement with an NGO.


10. Community Participation.

11. United Nations Agencies.

- Procurement from specialized agencies of the United Nations of any of the following:

Small quantities of-the-shelf goods, primarily in the fields of education and health; and

Specialized product where the number of suppliers is limited, such as vaccines or drugs.

TERMS AND CONDITIONS FOR THE USE OF ALTERNATIVE METHODS

• Except for Limited Source Bidding under section 49 of this IRR, submission of bid securities may be dispensed with.

• Performance and warranty security shall be submitted for contract acquired through the alternative methods of procurement except for:

Shopping

Negotiated Procurement: emergency cases, SVP, lease of real property and UN agencies.

DELIVERY, INSPECTION, & ACCEPTANCE

DELIVERIES

Deliveries of supplies must be made by the Supplier/Manufacturer/Contractor within the stipulated period and at the place/s indicated in the purchase order of the contract.

In all cases, delivery shall be made within office hours and during working days.

Failure to deliver within the prescribed period, the supplier/manufacturer/contractor shall be liable for penalty, usually in the form of liquidated damages specified in the Contract/Purchase Order.

LIQUIDATED DAMAGES

1 % of the undelivered items/delays

Liquidated damages of the undelivered

items in the contract deducted for each day of delay

DELIVERIES

All supplies shall be adequately contained, packed, crated, cased, bundled, wrapped, or sealed to prevent damage, spoilage, and loss.

They must be properly labelled and marked in accordance with the minimum requirements of RA 7394 otherwise known as Consumer Act of the Philippines.

Responsibility in case of damage, spoilage, or loss shall be governed by existing laws on the matter unless the purchase order or contract provides otherwise.

DELIVERIES

Deliveries shall be made within seven(7) calendar days upon receipt of the order unless otherwise provided in the Purchase Order or contract.

All items delivered SHALL BE RECEIVED BY THE SUPPLY OFFICER/DESIGNATED PROPERTY CUSTODIAN as the case may be. Receiving and signing of the DR and temporary recording of the deliveries shall be subjected to inspection by the Inspectorate Team.

INSPECTION

INSPECTION

Inspection is the process of examining and testing the procured supplies, materials, equipment, and services including raw materials and components to determine their conformity with the contract requirements including all applicable drawings, specifications, and purchase description.

What is In

spection?

INSPECTION

The inspection of items SHALL BE DONE BY THE INSPECTORATE TEAM, whose members shall be determined and designated by the HOPE.

Inspection shall be done in accordance with the standards and specifications and be conducted in the presence of the suppliers and end-user’s representatives.

The Inspectorate Team and the Supply Officer/Designated Property Custodian SHALL PREPARE AND SIGN the Inspection and Acceptance Report (IAR).

TECHNIQUES OF INSPECTION

• Inspection by Item

- Individual item is checked in conformity with the requirement stated in the specification. This method of inspection is applicable, but not limited to deliveries of equipment and fixed assets.

• Inspection by Sampling

- Sampling is a process of obtaining information about a group of data having similar purpose or function, usually ten percent (10%) of the total or lot delivery.

General Procedures in Conducting Inspection

1. Upon receipt of the request for inspection, check the following documents as their completeness and authenticity.

A. Purchase Order & Contract

Date; PO Number Name and Address of the Supplier Supplier’s Acknowledgement or Receipt (date of receipt) Specifications Quantity Unit/Total Price Availability of fund Approval of the HOPE or his duly authorized representative

General Procedures in Conducting Inspection

B. Supplier’s Invoice Delivery Receipt

Pre-numbered and not just typed stamped or hand-written

Date checked against the delivery date stated in the P.O or contract

“RECEIVED” portion Receipt and date of item delivered acknowledged by the supply officer/designated property custodian.

C. Conduct inspection and testing procedure when applicable.

D. Prepare inspection report immediately and give to the Inspectorate Team and supply officer/designated property custodian for signature.

Inspection Procedures for Equipment

1. Examine the equipment as to the physical condition: brand new, second hand, rebuild, or reconditioned. See to it that no defective or old worn out parts are used/attached to the equipment.

2. Take hold of the manual, catalogue or handbook for equipment delivered for reference. All date/information contained thereon should conform with the delivery of the serial number, point of origin, color, and the accessories or tools that go with the equipment.

3. Make a physical count and inspect the unit piece-by-piece or unit-by-unit. Random sampling is not applicable for this type of delivery because you have to request the supplier or his representative to demonstrate the operation of the equipment (test run) in your presence and that of the end-user. Observes the actual performance thereof.

4. Get the warranty card and note down the warranty card number in the original invoice. Check if the serial indicated thereon is the same as that of the delivery.

Inspection & Acceptance of Infra Projects

1. The Head/End-user/Implementing Office/Property Officer/etc. must secure copy of the Program of Works prior to the start of the construction.

2. The End-user must seek assistance from the technical person (TWG for the project) to check the materials that are being used during the construction if they are in accordance with the required specifications.

3. The End-user (usually the Head) shall sign the Certificate of Acceptance (CA)/Certificate of Turnover only after the issuance of the 100% completion report by the project engineer. The same certificate shall also be signed by the Division Physical Facilities Officer.

4. The End-user (usually the Head) shall issue a Certificate of Non-compliance if the works are not in accordance with the specifications or standards.

Documentary Requirements for Inspection

1. General Requirements for Inspection of deliveries/fabrication/installation

Original copy of approved contract/PO

Original Invoice/ Delivery Receipt

Performance/Quality Test Result (if applicable)

Other documents specified in the contract necessary to determine conformance with specifications (e.g. Approved plans/samples, standard specifications, etc. )

Documentary Requirements for Inspection

1. Inspection of Infrastructure Project for construction, repairs and rehabilitation

Statement of Work Accomplishment (SWA) Certificate of completion for final payment Certificate of Final Acceptance (CFA) for release of retention money Approved original contract Approved Program of Works

2. Post-repair Inspection for repairs

Approved job order/work order/contract Certificate of Acceptance Waste Materials reports, if applicable

Acceptance or Rejection of Deliveries of Goods

The Inspectorate Team may recommend a REJECTION / REDUCTION OF PRICE when their is a SHORTAGE IN QUANTITY, DEFICIENCY, OR DEFECTIVENESS IN QUALITY.

After consideration of 10% tolerable allowance based on standards, the following shall be observed by the Inspectorate Team in the evaluation of the result of the inspection:

Supplies or property tested and found to be in accordance with the approved PO/Contract and with the required specifications SHALL BE ACCEPTED;

Supplies or property whose quality analysis shows deficiency of less than ten percent (10%) may be accepted, provided that they shall serve the purpose for which they were purchased. The defect is minor and the contract price is reduced according to the deficiency noted;


Supplies or property whose quantity is short by volume, weight, actual count, etc. Shall be subjected to reduction on contract price at an amount equivalent to the shortage, provided that the said deliveries are acceptable to the agency or unit; and

Damaged items that are not disclose or incorrectly marked as such shall be subjected to corresponding reduction in the contract.

Acceptance of deliveries maybe made only if the supplies and materials delivered CONFORM TO THE STANDARDS AND SPECIFICATIONS STATED IN THE CONTRACT/PO


If the supplier failed to comply with the requirements, the property/supply officer shall submit a report to the HOPE for appropriate actions. The HOPE may forfeit the contractor’s performance bond, if any, and may also institute civil actions against the contractors for breach of contract.

The supply officer/ designated property custodian shall be responsible for accepting deliveries of procured items and should notify the Auditor within five (5) days upon receipt of the approved contract/PO.

CUSTODIANSHIP

PROPERTY CUSTODIANSHIP

Property custodianship refers to the guardianship of government property by the accountable person.

This includes the receipt, safekeeping, issuance, repair, and maintenance of supplies, materials, and equipment.

The designated property custodian/officer is responsible, accountable and liable for any loss, misuse, damage, or deterioration of government property due to fault or negligence in safekeeping which may be physical or destructive

What is custodianship?

Storage / Warehousing

Storage/ Warehousing refers to the scientific and economical warehousing of materials for their best safekeeping and availability.

Best safekeeping means protecting the materials against theft, fire, and deterioration but easily accessible when needed.

The method or systems include factors and procedures in the manner of undertaking due care and maintenance of good condition of the property.

What is warehousing?

Factors to be considered in Storage and Warehousing:

1. Site Location and size of storage/stockroom to use

Generally, selection of site location, type and size of storage of stockroom to be used, play a major role for an effective storage and Warehousing management. It is important factor for the following purposes:

To be able to figure out the amount of materials that can be stored;

For determination of access for efficient and proper transport of supplies and materials;

For provision of large size of doorways and entrances; For installation of proper lightings and ventilation.


1. Special layout planning for materials to be stored.

For easy facilitation, space layout for materials to be stored should be planned. Specifically the layout should contain the placement of supplies by category, type, similarity, popularity, sizes, shapes, characteristics and to include perishability.

It is important that materials be stored and placed in its proper places to avoid accidents and wastage.


1. Types of stacking suitable for each type of property

In like manner as in space layout planning, types of stacking for each type of materials should be given careful planning. It may be classified into:

i. Bulk storage

ii. Medium Lot Storage; and

iii. Small Lot Storage

Procedures in Storage / Warehousing

1. Receipt of Materials and Equipment and Other Property

- Supplies, materials, and equipment delivered by the supplier must be accompanied by Delivery Receipts (DRs) and/or Sales Invoice (SI), which were pre-inspected by the supply officer / designated property custodian before the items are received.

2. Arrangement of Materials

- The storekeeper arranges the materials inside the warehouse/ stockroom in accordance with the prepared storage plan.

Procedures in Storage / Warehousing

3. Recording of Receipts/ Deliveries

- The storekeeper properly posts and updates the information (receipts, issuances and balance on hand) taken from the IAR.

- Reconciliation of entries of bin cards with stock/property cards and with the physical count of stock on hand should be currently and properly updated.

Issuance and Utilization

Issuance and Utilization of supplies and materials and equipment is among the activities of property custodianship.

The custodianship of supplies and equipment is transferred from the Supply Officer/ Designated Property Custodian and Storekeeper/Warehouseman to the end-user who is responsible and accountable for the utilization and / or safekeeping.

Procedure in the Requisition and Issuance of Inventory

Items

Start of Procedure

Concerned Office, Requesting Personnel Prepares the Supplies Availability Inquiry (SAI) in 2 copies. Accomplishes the form For item description, unit, and quantity.

Fills up the “Inquired by” portion of SAIAnd forwards the same to Accounting

Units for processing.

Accounting Unit, Accounting Staff Receives SAI from Requesting Personnel.

Review and verifies the completenessOf Information.

Accounting Staff, retrieves from file the SLC and determines availability/status

Of stocks. Fills up the number, stock number, Status of stock and “Status provided by” Portion of SAI. Returns the original to the

Requesting Personnel and files the Copy 2 of the SAI

Requesting Personnel, receives theOriginal SAI from the Acctg. Staff Stock

Available?

No

A

Requesting Personnel, prepares RequisitionIssuance Slip (RIS) in 3 copies. Fills up allThe necessary information except for the

Issuance portion and signs “Requested By” Portion of the RIS. Forwards the RIS to

Authorized Official for approval.

Authorized Official, signs the “Approved By” Portion of the RIS

Requesting Personnel receivesSigned RIS and forwards to the Property

Division together with the original SAI for withdrawal of Inventory items

requested

Property Officer reviews and verifiesRIS as to completeness of Information. Fills up RIS # date, quantity, remarks

And initials “Approved by” portion of the RIS and records RIS in the logbook

Head of the Property, signs the “Approved by” portion of RIS andReturns to the Supply Officer for

Issuance of the Stock

Supply officer fills up the and signs

The “Issuance” portion of the RIS and issue

inventory items Requested to the

Requesting Personnel

Requesting Personnel, Receives supplies

requestedAnd sign in the

“Received by” portion Of the RIS files

Permanently in num. Order copy 2 of RIS And files temporarily

The RIS and SAI for thePreparation of

Report of Supplies And Materials Issued

(RMSI)

End – of Procedure

B

A

Requesting Personnel, Prepares PR for the Items requested and

Forwards the same to Property Division forProcessing of request

B

Illustration on preparation of the issuance documents

SAI

If Available

PR

NO

RISYES

ICS/ARE

GETTING TO KNOW WITH IMPORTANT DOCUMENTS

1. Supplies Availability Inquiry (SAI)

- is a document prepared by the requisitioning officer as a basis for the preparation of RIS and PR if the supplies/equipment are available or not available on stock.

2. Requisition and Issuance Slip (RIS) - is used if the goods/supplies carried in stock based on the SAI received from the Accounting Unit.

It must be numbered in the following manner as prescribed by COA.

GETTING TO KNOW WITH IMPORTANT DOCUMENTS

3. Purchase Request (PR)

- is accomplished if the goods/supplies/properties are not carried in stock based on the SAI received from the Accounting Unit.

4. Acknowledgement Receipt for Equipment (ARE)

- is used for PPE accounts when issued to officials and employees other than the regular property officer. It shall be signed and dated by the Property officer under “Received from” portion and the recipient shall acknowledge by signing the documents.

Recording for the Receipt, Issuance and Utilization of Supplies, Materials & Equipment

The issuance of supplies/materials/equipment SHALL BE PROPERLY ACCOUNTED FOR.

The Warehouseman/Storekeeper shall maintain bin cards and record the receipt and issuance of each class of item kept in stock. He/She is likewise monitor the status of the stock on hand. He shall post the quantity requested immediately upon withdrawal of the supplies/materials from the stockpile.

The Supply Officer/Stock clerk shall maintain the stock cards for each class of articles kept in stock. All receipt and issuance of supplies, and the balance on hand shall be updated.

The bases of recording the receipts and issuance shall be the DR and the RIS respectively.

The stock card serves as guide in preparing the estimates of the quantity and description of the articles needed for the year.

Recording for the Receipt, Issuance and Utilization of Supplies, Materials & Equipment

The stock card will be at the same time serves as guards against overstocking of supplies and materials.

The Supply Officer shall maintain the Property Card for each class of PPE reflecting the date of acquisition, description, custody, estimated life expectancy, depreciation, disposal, and other information about the PPE based on the source of documents.

The basis of recording the issuance of PPE is the ARE

Reconciliation of Property and Accounting Records

The accounting of issuance is not complete without the proper reconciliation of property and accounting records.

Before the property records can be reconciled with the accounting records, the Property/Supply Office shall see to it that the existing property records are reconciled with the actual inventory count.

The warehouseman/storekeeper may at any time conduct a test count of his stock to determine whether it tallies with the balance per bid cards.

Any discrepancies should be noted for further investigation and if necessary, coordinate with the stock/property clerk to settle the differences.

Repair and Maintenance

Repair and Maintenance

The repair and maintenance program is necessary for the purpose of attaining and/or extending the established economical and useful life of an equipment/property and serves as a sound basis for scheduling its replacement.

Repair Equipment (major / minor)

Repair is the process/act of restoring a property /equipment to its original state or to its working condition. Unserviceable equipment may at once be restored to its normal state of efficiency by making repairs.

Minor repair merely keeps a building of equipment in fit condition for use without increasing its capacity or otherwise adding to its normal value as an asset.

i. Fair wear and tear is the condition of equipment worn out or otherwise rendered unserviceable through use without apparent fault.

What is repair?


Major or extraordinary repair is the alternation, addition, or installation, general reconditioning, overhauling and the like which materially increase the value or extend the useful life of the equipment or motor vehicles.

i. Fair wear and tear is the condition of equipment worn out or otherwise rendered unserviceable through use without apparent fault.

Return of Unused Supplies & Excess Materials

Inventory Taking

Steps in conducting Inventory Taking

Points to consider in conducting an Inventory

Preparation of Inventory Reports

Inventory – Taking

Disposition of Property Held by Deceased, Incapacitated, Absconding, or Suspended Accountable Officers

DISPOSAL

Determination of Disposable Property

Inspection

APPRAISAL

General Procedures in Appraising the Property for Disposal

General Procedures for Disposal

Composition of BAC on Disposal

MODES OF DISPOSAL

Relief from Accountability in case of Loss of Government Property

Procedures and Requirements for Relief from Accountability

TAKE – NOTE!

THANK YOU FOR THANK YOU FOR LISTENING & GOD LISTENING & GOD

BLESS YOU!!!BLESS YOU!!!

JUAN PAOLO S. ARANAS

Master in Public Administration

PROF. ROMEO S. TERUEL

Professor, MPA

property and supply management w/ introduction to r.a. 9184 government procurement reform act

Business

acquisition of supplies

line of supplies

public auction

public trust

public officials

competitive public bidding

regulations of republic

expendable supplies