4 Procurement Of Consulting Services

PROCUREMENT OF CONSULTING SERVICES STANDARD BIDDING PROCEDURES FOR CONSLUTING SERICES (For quality-based evaluation) Pre-procurement conference

Short listing

Technical Bid evaluation

Advertisement/posting

Submission and opening of eligibility envelopes (Eligibility check)

Pre-Bid conferece

Submission of bids

Opening of financial Envelopes &ranking (tech & Fin)

Negotiati on with HRB

Post qualification

Opening of technical envelopes & preliminary exam

Award of contract

STANDARD BIDDING PROCEDURES FOR CONSULTING SERVICES ( forQuality-cost Based Evaluation)

Pre-procurement conference

Short listing

Technical Bid evaluation

Advertisement/posting

Pre-Bid conference

Opening of financial Envelopes &ranking (tech & Fin)

Negotiati on with HRB

Submission of bids

Submission and opening of eligibility envelopes (Eligibility check)

Opening of technical envelopes & preliminary exam

Post qualification

Award of contract

CONSULTIUNG SERVICES Services requiring adequate external technical and professional expertise beyond the capability and/or capacity of the government to undertake  Advisory and review services  Pre-investment or feasibility studies  Design  Construction supervision  Management and related services  Other technical services or special studies Does not cover  Janitorial  Security  Photocopying  Messengerial; and  Other general services CONSULTANT ( SECTION 4)  May be Filipino or Foreigner  Has the appropriate education, training and relevant experience

TYPES OF FILIPINO CONSULTANT ( section 4) • Individual - Filipino citizen • Sole proprietorship - owned by Filipino citizen, registered with With the BDT • Partnership - 60% owned Filipino citizens, registered With the SEC • Corporation -60% owned Filipino citizens, registered With the SEC • Joint venture - 60% Filipino owned FOREIGN CONSULTANTS ( Section 24) Individuals, sole proprietorships, partnerships, corporations, or Joint ventures not meeting the citizenship, ownership, or registration requirements for Filipino consultants HIRING OF CONSULTANTS • Filipino consultants shall be hired if required expertise and capability are available • If not available locally, foreign consultants may be hired. - if the foreign consultant enters into a joint venture agreement with a local consultant, the local consultant shall be the lead consultant as EO 278 PRE-PROCUREMENT CONFERENCE ( section 20) • to ensure that the procurement is in accordance with the project and agency procurement plan • to determine the readiness at hand ( availability of funds, clarity of TOR) • review/agree on the criteria for eligibility screening/ short listing - determine number of short list • review/agree on the criteria for evaluation of proposals - determine evaluation procedure ( quality –based or Quality-cost based) OPTIONAL for contract costing P 1 M and below INVITATION TO APPLY FOR ELIGIBILITY AND TO BID ( section 21) 1. Advertised at least once in one newspaper of general nationwide circulation which has been regularly published for at least 2 years. - OPTIONAL for contracts costing P 1 M and below and /or those duration of 4 months or less 2. posted in website of agency ( if any) and its service provider ( if any) for seven (7) calendar days 3. posted in G- EPS for 7 calendar dys 4. posted in a conspicuous place in the agency premises • approved budget for contract • criteria and rating system for short listing

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evaluation procedure to be adopted deadline for submission of eligibility documents

LETTER OF INTENT ( section 21.3) • must be received by the BAC not later than 7 days from the last date of posting of IAEB • Upon receipt of LOI, the list of eligibility/short listing by the BAC Secretariat ELIGIBILITY DOCUMENTS ( section 24.7) Class A Documents • Audited financial statements, stamped “received” by the BIR • Tax return and Tax Clearance from the BIR Class B Documents • Valid joint venture agreement, if any • Letter authorizing procuring entity to verify all submitted documents • Notarized statement that submitted documents are original or true copy, complete, and the information provided therein are correct ELIGIBILITY CHECK ( Section 24.12) • Chech presence or absence or required documents • If all documents are present- passed- ELIGIBLE • If one or more documents missing or submission is incomplete or patently insufficient – failed- INELIGIBLE ELIGIBILITY CHECK ELIGIBILITY REQUIREMENTS DTI/SEC registration Mayor’s Permit TIN List of projects

FIRM 1

FIRM 2

FIRM 3

FIRM 4

FIRM 5

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SHORT LISTING ( section 24.15) • To determine the most qualified firms to undertake the project • Shortlist of consultants to be drawn from those eligible • Short list shall consist of 3 to 7 consultants, with 5 as preferable number ( determined by BAC during pre-procurement conference)

• • • •

If less than the required number pass the minimum score, BAC shall consider the same Applicable experience of consultants 30% Qualification of personnel to be assigned to the job 50% (education, work experience, number of years in firm, etc.) Current work load relative to capacity 20%

The entire process of eligibility check and short listing shall not exceed 20 calendar days PRE- BID CONFERENCE • For contracts P 1.0 M and above, at least one (1) pre-bid conference OPTIONAL for contracts below P1.0 M • Attendance of bidders not required • Shall be held at least 12 days before deadline for submission and receipts of bids • What are discussed? - requirements of project - evaluation procedure - evaluation criteria - causes for failure of bidding - requests for clarification SUPPLEMENTAL BULLETIN ( SECTION 22.5) • Requests fro clarification must be in writing and submitted at least 10 days before deadline of submission of bids • Supplemental bulletin shall be issued 7 days before deadline for the submission of bids • Supplemental bulletin shall be posted on the agency website and in the G- EPS BID DOCUMENTS ( section 25.3) Technical envelope • Bid security – as to form ( as specified by the BAC), amount ( must be at least equal to a % of the ABC, and the validity period; • Authority of the signatory • Organizational chart • List of completed and on- going projects • Approach, work plan, and schedule • List of key personnel to be assigned • Certificate under oath of compliance with Labor Laws • Disclosure Affidavit • Statement attesting compliance with responsibilities of bidder Financial envelope • Financial proposal MODIFICATION AND WITHDRAWAL OF BIDS (Section 26) Modification of Bids:

• • •

Should be done before the deadline for submission and receipt of bids No retrieval of original bid Send another bid equally sealed, properly identified, marked as “modification”.

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Withdrawal of Bids: Must be done in writing before the deadline for the receipt of bids otherwise will be subjected to appropriate sanctions. Bidder shall not be permitted to submit another bid, directly or indirectly, for the same contract.

BID OPENING (Section 29) • Bids shall be opened at the place, date and time specified in the invitation to apply for eligibility and to bid. • BAC shall open - Letters of non-participation - Letters of withdrawal - Modified bids - Original bids • Bidder/ duly authorized representatives may attend the opening of bids BID EVALUATION Quality-Based  Simultaneous submission of both Technical and Financial proposals in separate sealed envelopes  Technical proposals shall be evaluated first and the consultants ranked  First-in-ranked consultant shall be invited for contract and financial negotiations BID EVALUATION - Assignments which can be carried out in substantially different ways Quality-Cost Based  Ranking is based both on the Technical and Financial Proposals  Technical and Financial proposals shall be given corresponding weights  Financial proposal shall be given weights of 15% up to maximum of 40% BID EVALUATION • Quality Based Evaluation is appropriate for: - Complex or highly specialized assignments •

In other cases, Quality Cost Based Evaluation shall apply

BID EVALUATION FOR QCBE • Opening of technical proposals (TPs) • Evaluation

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Firms whose TPs did not meet the minimum qualifying score will have their financial proposals (FPs) returned unopened

Opening of financial proposals  Only firms whose TPs meet the qualifying score shall be invited to the opening of FPs  Name of firm, quality scores and prices of FPs are read aloud and recorded

EVALUATION OF TECHNICAL PROPOSALS (Section 33) • Experience and Capability of Firm 10% • Plan of Approach and Methodology 30% • Quality of personnel to be assigned 60% - Project Manager - Other Key Staff - For unique or complex undertaking, short-listed consultants may be required to make an oral presentation within 15 days after the deadline for the submission of Technical Proposals FIRM

QBE (technical Score)

RANK

QC Technical SCORE (75%)

BE Financial Score (25%)

FINAL SCORE

RANK

1

84

3

84

100

88.00

1

2

86

1

86

91

87.25

2

3

85

2

85

83

84.50

3

4

80

5

80

77

79.25

5

5

83

4

83

71

80.00

4

For QCBE

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Lower financial proposal is given 100 points Other financial proposals are scored as follows: FPlowest FPn

Example P 1.0 million = 100 points P 1.0 million

P 1.0 million = 91 points P 1.1 million P 1.0 million = 83 points P 1.2 million P 1.0 million = 77 points P 1.3 million

BID EVALUATION & RANKING (Section 33) • Numerical ratings are used • Each member of the BAC gives a rating to each proposal • The ratings are averaged • To eliminate bias, it is recommended that the highest and lowest scores for each criterion be eliminated • Evaluation process shall be completed in 21 days Evaluator

FIRM 1

FIRM 2

FIRM 3

FIRM 4

FIRM 5

A

95

75

84

83

84

B

84

88

86

81

82

C

84

86

85

79

84

D

83

85

84

79

82

E

84

87

86

80

83

Average (SE)

86.0

84.2

85.0

80.4

83.0

RANK

1

3

2

5

4

FIRM 1

FIRM 2

FIRM 3

Evaluator

FIRM 4

FIRM 5

A

95

75

84

83

84

B

84

88

86

81

82

C

84

86

85

79

84

D

83

85

84

79

82

E

84

87

86

80

83

Average (SE)

86.0

84.2

85.0

80.4

83.0

RANK

1

3

2

5

4

NEGOTIATION (Section 33.4.3) Negotiation with Higher Rated Bidder • Discussion and clarification of the TOR • Finalization of methodology and work program • Personnel to be assigned ( compensation vs. qualification, number of man months) • Facilities and data to be provided by the agency • Financial proposal submitted by Consultant ( not included under quality-cost based ) • Provision of the contract POSTQUALIFICATION (Section 34) Postqualification of Bidder with Highest Rated Bid • Legal Requirements. To verify and validate licenses/permits. • Technical Requirements. To verify and validate experience of firm and key personnel to be assigned to the project. • Financial Requirements. To verify and validate the bid price proposal. FAILURE OF BIDDING (Section 35) • No LOI or no bid is received; • All prospective bidders are declared ineligible or all eligible bidders fail to meet the shortlisting criteria; • Shortlisted bidders fail to comply with all bid requirements or, there is no successful negotiations or postqualification; • Bidders with Highest Rated Responsive Bid refuses without justifiable cause to accept award of contract, and no award is made

AWARD OF CONTRACT (Section 37) • Award of contract shall be made to the bidder with the highest rated and responsive bid. • Decision to award or not to award shall be made within 7days from the date the BAC determines the highest rated and responsive bid. For GOCCs and GFIs , the period shall be 15 days.

CONTRACT SIGNING (Section 37.3) AND PERFORMANCE SECURITY (Section 39) • Contract shall be signed by the winning bidder and head of agency within 10 days from receipt by the winning bidder of the notice of award. • Winning bidder posts performance security. The form of performance security shall be specified by the BAC. CONTRACT APPROVAL (Section 37.4)/ NOTICE TO PROCEED (Section 37.5) • If approval of higher authority is required, maximum of 15 cd for approval; If GOCC, Board has 25 cd to take action on recommendation • Notice to Proceed (NTP) issued within 3 cd after approval of contract • All bids are fixed prices and not subject to price adjustments, except under extraordinary circumstances (Section 61) WARRANTY (Section 62.2.3) • Consultants are liable for structural defects/failures due to faulty / inadequate design and specifications as well as construction supervision. ALTERNATIVE METHODS OF PROCUREMENT (Section 48) LIMITED SOURCE BIDDING (Section 49)

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Highly specialized type of consulting services where only few consultants have the expertise

NEGOTIATED PROCUREMENT (Section 53) • Where there has been failure of public bidding for the second time • In case of imminent danger or when time is of the essence • Take over of consultancy contracts which have been rescinded or terminated NEGOTIATED PROCUREMENT (Section 53) • Special project is adjacent or contiguous to an ongoing similar project • Individual consultants hired to do hard work that is  Highly technical or proprietary  Primarily confidential or policy determining where trust and confidence are the primary considerations for the hiring NEGOTIATED PROCUREMENT (Section 53) • For small value contracts amounting to P50,000 and below

- procuring entity shall invite at least 3 qualified consultants to submit their CVs CONTRACT IMPLEMENTATION • Advance payment not to exceed 15% of contract amount. (Annex F) • Any extension of contract time shall not involve any additional cost. (Annex F) • No incentive bonus is allowed. (Section 42.2) • Liquidated damages imposed for delays in completion of work. (Section 68)

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