Salient IRR Revisions Alternative Methods of Procurement
IRR: Alternative Methods General
APP provides sufficient lead time for bidding
Resort
Rule: Public Bidding
to Alternative Methods allowed-
Highly exceptional cases To promote economy and efficiency Justified by conditions specified in IRR
IRR: Alternative Methods Limited
Source Bidding (Sec. 49)
Procedure for pre-selection shall be outlined in Generic Procurement Manual
Invitation shall be advertised Those who meet specified criteria shall be preselected List shall be updated periodically
IRR: Alternative Methods Limited
Source Bidding (Sec. 49)
List to be maintained by relevant government authority
Procuring entity may be the relevant government authority Submitted to GPPB
IRR: Alternative Methods Shopping
and Small Value Procurement (Secs. 52 & 53.9)
Higher thresholds set for shopping and small value procurement Guidelines to follow
For Foreign-funded procurement, thresholds shall be agreed upon between GOP and foreign government/institution
Shopping & Small Value Procurement Higher Threshold Amount for Unforeseen Contingencies NGAs, GOCCs, GFIs, SUCs – P100,000 LGUs – Classification
Maximum Amount (in Philippine Pesos) 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
In the case of Barangays, the maximum amount is P50,000
Shopping & Small Value Procurement Higher Threshold Amount for Regular Office Supplies and Small Value Procurement NGAs, GOCCs, GFIs, SUCs – P500,000 LGUs – Classification
Maximum Amount (in Philippine Pesos) 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
In the case of Barangays, the maximum amount is P50,000
IRR: Alternative Methods Negotiated
Procurement (Sec. 53)
Clearer rules on two-failed bidding
Additional instances of negotiated procurement
IRR: Alternative Methods Recap:
Failure of Bidding (Sec. 35)
Mandatory review after each failed bidding
Based on findings
Revise terms, conditions, specifications Adjust ABC, subject to required approvals
Rebid
Invite previous bidders
IRR: Alternative Methods Two-Failed
Bidding (Sec. 53.1)
Mandatory review and agree on the following:
Minimum technical specifications ABC adjusted only up to 20%
Invite sufficient number to ensure competition
Information communicated on an equal basis
IRR: Alternative Methods Two-Failed
Bidding (Sec. 53.1, cont.)
Simultaneous negotiations
Submission of best and final offer on a specified date
IRR: Alternative Methods Two-Failed
Successful offer to be selected:
Bidding (Sec. 53.1, cont.)
Meet minimum technical specifications Does not exceed ABC
Observers shall be invited in all stages
IRR: Alternative Methods Distinction
between the following:
Agency-to-Agency (Sec. 53.5)
GOCCs formed under the Corporation Code excluded Implementing Guidelines on A2A
Procurement Agent (Sec. 53.6)
By Administration (Sec. 7.3.2[a])
IRR: Alternative Methods Additional
instances of Negotiated Procurement:
Lease of Real Property (Sec. 53.10)
Include lease of venues Guidelines to follow
IRR: Alternative Methods Additional
instances of Negotiated Procurement:
Community Participation (Sec. 52.12)
Local community participation in service delivery
Project sustainability Meet social objectives
Procuring entity shall propose (procedures, specifications and contract packaging) Subject to GPPB approval
IRR: Alternative Methods Additional
instances of Negotiated Procurement:
United Nations Agencies (Sec. 52.13)
Small quantities of off-the-shelf goods (education and health) Specialized products (vaccines or drugs)
IRR: Alternative Methods Other
Terms and Conditions
In all instances, the most advantageous price for government should be obtained (Sec. 48.1)
Splitting of contracts is not allowed (Sec. 54.1)
IRR: Alternative Methods Other
Posting not necessary, except:
Terms and Conditions (Sec. 54)
shopping [Sec. 52.1(b)], two-failed biddings [Sec. 53.1] small value procurement [Sec. 53.9]
But all awards to be posted
IRR: Alternative Methods Other
Terms and Conditions (Sec. 54)
Bid securities not necessary, except:
Limited Source Bidding (Sec. 49)
IRR: Alternative Methods Other
Terms and Conditions (Sec. 54)
Performance and Warranty Securities necessary, except Shopping [Sec. 52] Emergency Cases [Sec. 53.2] Small value procurement [Sec. 53.9] Lease of real property [Sec. 53.10] Procurement from UN agencies [Sec. 53.13]
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