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Silent irr revisions

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Isagani Bagus
Isagani Bagus

The document summarizes revisions made to the Implementing Rules and Regulations (IRR) of the Government Procurement Reform Act (R.A. 9184) regarding eligibility requirements, submission of bids, notice of award, domestic preference, warranty security, and liquidated damages. Key changes include: requiring additional eligibility documents; submitting technical and financial proposals for infrastructure projects at the same time; allowing 10% advance payment for goods supplied from abroad; and reducing warranty security period for infrastructure to 1 year.

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Salient IRR Revisions Standardized Bidding Procedures Goods, Infra, Consulting
IRR Revisions: ? Eligibility Requirements (Sec. 23) ? Legal Documents ? DTI / SEC / CDA Registration ? Mayor¡¯s permit for principal place of business ? Technical Documents ? Statement of all on-going and completed contracts ? PCAB license and registration (Infra only) ? Unless otherwise stated in treaty or international or executive agreement ? Statement of the consultant¡¯s nationality and Key staff¡¯s confirmation that they are registered professionals (consulting only)
IRR Revisions: ? Eligibility Requirements (Sec. 23) ? Financial Documents ? Latest Audited Financial Statements ? NFCC computation or Credit Line Commitment from a universal or commercial bank (goods and infra only) ? For LGUs, other banks authorized by BSP to issue said instrument
IRR Revisions: ? Eligibility Requirements ? Class ¡°B¡± Documents: If Joint Venture - ? JVA ? If no JVA, sworn statements by each partner that they will enter into and abide by provisions of the JVA if awarded the contract
IRR Revisions: ? Eligibility Requirements (Sec. 23) ? If foreign bidder - ? Submit equivalent documents issued by country ? Accompanied by English translation certified by appropriate embassy or consulate in the Philippines
IRR Revisions: ? Eligibility Criteria (Sec. 23) ? Legal Eligibility (Goods) ? General rule: 60% Filipino ? Foreign bidders eligible allowed ¨C ? If stated in treaty, international or executive agreement ? National of a country offering reciprocity rights to Filipinos ? Goods not available from local suppliers ? To prevent situations that defeat competition or restrain trade
IRR Revisions: ? Eligibility Criteria (Sec. 23) ? Legal Eligibility (Infra) ? General rule: 75% Filipino (LOI 630) ? If joint venture, less than 75% is allowed if - ? Not less than 25% Filipino ? Structures to be built require techniques not possessed by 75% Filipinos ? Foreign contractors allowed if stated in treaty or international or executive agreement
IRR Revisions: Goods ? Eligibility Criteria (Sec. 23) ? Technical Eligibility (Goods) - Single Largest Contract General Rule Exceptions Then require the ff.: 1.Expendable Supplies ? 25% of the ABC 2.Services and Non- expendable Supplies ? 50% of the ABC If, at the outset and after market research, applying the general rule will likely result to: 1.Failure of bidding; or 2.Monopoly a) At least 2 similar contracts aggregate amount at least equivalent to required percentage; and b) Largest of the similar contracts amounts to at least 50% of required percentage 8
IRR Revisions: ? Eligibility Criteria (Sec. 23) ? Technical Eligibility (Infra) ? Track Record: Single Largest Contract ? Retain at 50% ? But within a period of ten years ? For foreign funded procurement, a different track record may be agreed upon
IRR Revisions: ? Eligibility Criteria (Sec. 23) ? Technical Eligibility (Infra) ? PCAB License (RA 4566) ? Satisfactory CPES Rating and/or certificate of completion and acceptance
IRR Revisions: ? Eligibility Criteria (Sec. 23) ? Financial Eligibility (Goods and Infra) ? NFCC at least equal to ABC ? Credit Line Certificate at least equal to 10% of ABC ? Issued by Universal or Commercial Bank ? For LGUs: other banks certified by BSP as authorized to issued said CLC ? Option to submit cash deposit certificate deleted
IRR Revisions: ? Submission and Receipt of Bids (Sec. 25) ? Two-Envelope System (Eligibility requirements included in the Technical Proposal) ? In Infrastructure Projects, Technical (incl. eligibility requirements) and Financial Proposals will now be submitted at the same time
IRR Revisions: ? Submission and Receipt of Bids (Sec. 25) ? First Envelope ? Eligibility requirements ? Bid security ? Technical specifications (goods)/ Project Requirements (infra) ? Approach, work plan and schedule (consulting only) ? List of key personnel (consulting only) ? Omnibus sworn statement
IRR Revisions: ? Submission and Receipt of Bids (Sec. 25) ? Second Envelope ? Financial information/documents specified in the Philippine Bidding Documents
IRR Revisions: ? Notice of Award (Sec. 37) ? Conditioned on the following: ? If joint venture, submission of JVA ? Posting of Performance Security ? Signing of Contract ? If required, approvals by higher authority
IRR Revisions: ? Domestic and Foreign Goods (Sec. 43) ? Requires procuring entity to give preference to domestic entities and to materials and supplies produced, made, and manufactured in the Philippines (domestic bidder). ? Domestic entities can only claim preference if certified by SEC/DTI/CDA ? Domestic bidder can only claim preference if certified by DTI
IRR Revisions: ? Domestic and Foreign Goods (Sec. 43) ? Domestic entities (Sec. 5 [k]) ? 75% Filipino ? Habitually established in business and engaged in the manufacture or sale of product to be bid ? In existence for at least 5 consecutive years ? Domestic entities can only claim preference if certified by SEC/DTI/CDA
IRR Revisions: ? Domestic and Foreign Goods (Sec. 43) ? Domestic bidder (Sec. 5 [j]) ? Any person or entity ? Offering articles/materials/supplies ? If unmanufactured, grown or produced in the Philippines ? If manufactured, substantially from those grown or produced in the Philippines ? Domestic bidder can only claim preference if certified by DTI
IRR Revisions ? Domestic and Foreign Goods (Sec. 43) ? Provides procedures in determining entitlement to domestic preference ? Applied only where the lowest bid has a foreign component (foreign bid/entity) and the next lowest bid has a domestic component (domestic bidder/entity)
SAMPLE APPLICATION OF PREFERENCE Lowest Calculated Bid Next Lowest Calculated Bid Foreign Bidder Domestic Bidder/Entity Bid 2,653,360.00 3,009,492.00 % Preference x 15% 398,004.00 + 2,653,360.00 Bid as increased 3,051,364.00 3,009,492.00 Result Award to Domestic Bidder/Entity at 2,653,360.00, or Award to Foreign Bidder if Domestic Bidder/Entity refuses Sample Computation
IRR Revisions: ? Warranty Security ¨C Goods (Sec. 62) ? Expendable Supplies ¨C 3 months, unless consumed earlier ? Non-expendable Supplies ¨C 1 year
IRR Revisions: ? Warranty Security ¨C Infra (Sec. 62) ? Warranty period vs. Warranty security period ? Warranty security period reduced to 1 year ? Liability per stage ? From project construction to final acceptance ? From project completion to final acceptance ? From final acceptance to warranty security period Bidding Construction Completion Acceptance Warranty
IRR Revisions: ? Liquidated Damages (Sec. 68) ? Adopted formula of Goods ? One-tenth of one percent (1%) of the cost of the unperformed portion for every day of delay
IRR Revisions: ? Advance Payment for Goods ? Goods supplied from abroad ? 10% advance payment allowed ? Upon submission of a bank guarantee ? Equivalent amount ? Valid until goods are delivered
Thank you ? Comments, questions? ? GPPB On Line Forum ? http://gppb.topicsolutions.net/

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Silent irr revisions

  • 1. Salient IRR Revisions Standardized Bidding Procedures Goods, Infra, Consulting
  • 2. IRR Revisions: ? Eligibility Requirements (Sec. 23) ? Legal Documents ? DTI / SEC / CDA Registration ? Mayor¡¯s permit for principal place of business ? Technical Documents ? Statement of all on-going and completed contracts ? PCAB license and registration (Infra only) ? Unless otherwise stated in treaty or international or executive agreement ? Statement of the consultant¡¯s nationality and Key staff¡¯s confirmation that they are registered professionals (consulting only)
  • 3. IRR Revisions: ? Eligibility Requirements (Sec. 23) ? Financial Documents ? Latest Audited Financial Statements ? NFCC computation or Credit Line Commitment from a universal or commercial bank (goods and infra only) ? For LGUs, other banks authorized by BSP to issue said instrument
  • 4. IRR Revisions: ? Eligibility Requirements ? Class ¡°B¡± Documents: If Joint Venture - ? JVA ? If no JVA, sworn statements by each partner that they will enter into and abide by provisions of the JVA if awarded the contract
  • 5. IRR Revisions: ? Eligibility Requirements (Sec. 23) ? If foreign bidder - ? Submit equivalent documents issued by country ? Accompanied by English translation certified by appropriate embassy or consulate in the Philippines
  • 6. IRR Revisions: ? Eligibility Criteria (Sec. 23) ? Legal Eligibility (Goods) ? General rule: 60% Filipino ? Foreign bidders eligible allowed ¨C ? If stated in treaty, international or executive agreement ? National of a country offering reciprocity rights to Filipinos ? Goods not available from local suppliers ? To prevent situations that defeat competition or restrain trade
  • 7. IRR Revisions: ? Eligibility Criteria (Sec. 23) ? Legal Eligibility (Infra) ? General rule: 75% Filipino (LOI 630) ? If joint venture, less than 75% is allowed if - ? Not less than 25% Filipino ? Structures to be built require techniques not possessed by 75% Filipinos ? Foreign contractors allowed if stated in treaty or international or executive agreement
  • 8. IRR Revisions: Goods ? Eligibility Criteria (Sec. 23) ? Technical Eligibility (Goods) - Single Largest Contract General Rule Exceptions Then require the ff.: 1.Expendable Supplies ? 25% of the ABC 2.Services and Non- expendable Supplies ? 50% of the ABC If, at the outset and after market research, applying the general rule will likely result to: 1.Failure of bidding; or 2.Monopoly a) At least 2 similar contracts aggregate amount at least equivalent to required percentage; and b) Largest of the similar contracts amounts to at least 50% of required percentage 8
  • 9. IRR Revisions: ? Eligibility Criteria (Sec. 23) ? Technical Eligibility (Infra) ? Track Record: Single Largest Contract ? Retain at 50% ? But within a period of ten years ? For foreign funded procurement, a different track record may be agreed upon
  • 10. IRR Revisions: ? Eligibility Criteria (Sec. 23) ? Technical Eligibility (Infra) ? PCAB License (RA 4566) ? Satisfactory CPES Rating and/or certificate of completion and acceptance
  • 11. IRR Revisions: ? Eligibility Criteria (Sec. 23) ? Financial Eligibility (Goods and Infra) ? NFCC at least equal to ABC ? Credit Line Certificate at least equal to 10% of ABC ? Issued by Universal or Commercial Bank ? For LGUs: other banks certified by BSP as authorized to issued said CLC ? Option to submit cash deposit certificate deleted
  • 12. IRR Revisions: ? Submission and Receipt of Bids (Sec. 25) ? Two-Envelope System (Eligibility requirements included in the Technical Proposal) ? In Infrastructure Projects, Technical (incl. eligibility requirements) and Financial Proposals will now be submitted at the same time
  • 13. IRR Revisions: ? Submission and Receipt of Bids (Sec. 25) ? First Envelope ? Eligibility requirements ? Bid security ? Technical specifications (goods)/ Project Requirements (infra) ? Approach, work plan and schedule (consulting only) ? List of key personnel (consulting only) ? Omnibus sworn statement
  • 14. IRR Revisions: ? Submission and Receipt of Bids (Sec. 25) ? Second Envelope ? Financial information/documents specified in the Philippine Bidding Documents
  • 15. IRR Revisions: ? Notice of Award (Sec. 37) ? Conditioned on the following: ? If joint venture, submission of JVA ? Posting of Performance Security ? Signing of Contract ? If required, approvals by higher authority
  • 16. IRR Revisions: ? Domestic and Foreign Goods (Sec. 43) ? Requires procuring entity to give preference to domestic entities and to materials and supplies produced, made, and manufactured in the Philippines (domestic bidder). ? Domestic entities can only claim preference if certified by SEC/DTI/CDA ? Domestic bidder can only claim preference if certified by DTI
  • 17. IRR Revisions: ? Domestic and Foreign Goods (Sec. 43) ? Domestic entities (Sec. 5 [k]) ? 75% Filipino ? Habitually established in business and engaged in the manufacture or sale of product to be bid ? In existence for at least 5 consecutive years ? Domestic entities can only claim preference if certified by SEC/DTI/CDA
  • 18. IRR Revisions: ? Domestic and Foreign Goods (Sec. 43) ? Domestic bidder (Sec. 5 [j]) ? Any person or entity ? Offering articles/materials/supplies ? If unmanufactured, grown or produced in the Philippines ? If manufactured, substantially from those grown or produced in the Philippines ? Domestic bidder can only claim preference if certified by DTI
  • 19. IRR Revisions ? Domestic and Foreign Goods (Sec. 43) ? Provides procedures in determining entitlement to domestic preference ? Applied only where the lowest bid has a foreign component (foreign bid/entity) and the next lowest bid has a domestic component (domestic bidder/entity)
  • 20. SAMPLE APPLICATION OF PREFERENCE Lowest Calculated Bid Next Lowest Calculated Bid Foreign Bidder Domestic Bidder/Entity Bid 2,653,360.00 3,009,492.00 % Preference x 15% 398,004.00 + 2,653,360.00 Bid as increased 3,051,364.00 3,009,492.00 Result Award to Domestic Bidder/Entity at 2,653,360.00, or Award to Foreign Bidder if Domestic Bidder/Entity refuses Sample Computation
  • 21. IRR Revisions: ? Warranty Security ¨C Goods (Sec. 62) ? Expendable Supplies ¨C 3 months, unless consumed earlier ? Non-expendable Supplies ¨C 1 year
  • 22. IRR Revisions: ? Warranty Security ¨C Infra (Sec. 62) ? Warranty period vs. Warranty security period ? Warranty security period reduced to 1 year ? Liability per stage ? From project construction to final acceptance ? From project completion to final acceptance ? From final acceptance to warranty security period Bidding Construction Completion Acceptance Warranty
  • 23. IRR Revisions: ? Liquidated Damages (Sec. 68) ? Adopted formula of Goods ? One-tenth of one percent (1%) of the cost of the unperformed portion for every day of delay
  • 24. IRR Revisions: ? Advance Payment for Goods ? Goods supplied from abroad ? 10% advance payment allowed ? Upon submission of a bank guarantee ? Equivalent amount ? Valid until goods are delivered
  • 25. Thank you ? Comments, questions? ? GPPB On Line Forum ? http://gppb.topicsolutions.net/