Revised Irr Ra 9184 (goods)

Salient IRR Revisions Procurement of Goods

IRR Revisions: Goods 

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

IRR Revisions: Goods 

Eligibility Requirements (Sec. 23) 

Financial Documents  Audited Financial Statement received by the BIR  NFCC computation or Credit Line Commitment from a universal or commercial bank 

For LGUs, other banks authorized by BSP to issue said instrument

IRR Revisions: Goods 

Eligibility Requirements (Sec. 23) 

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: Goods 

Eligibility Criteria (Sec. 23) 

Legal Eligibility  

General rule: 60% Filipino Foreign bidders eligible allowed –    

If stated in treaty, international or executive agreement National of a country offering reciprocity rights to Filipinos (RA 5183) Goods not available from local suppliers To prevent situations that defeat competition or restrain trade

IRR Revisions: Goods 

Eligibility Requirements for Foreign Bidders (Sec. 23) 

Submit equivalent documents issued by country



Accompanied by English translation certified by appropriate embassy or consulate in the Philippines

IRR Revisions: Goods  Eligibility 

Criteria (Sec. 23)

Single Largest Contract for Goods General Rule

Exceptions

1. Expendable Supplies If, at the outset and after a) • 25% of the ABC market research, applying the general rule will likely 1. Services and result to: Non-expendable Supplies 1.Failure of bidding; or • 50% of the ABC b) 2.Monopoly

Then require the ff.: At least 2 similar contracts aggregate amount at least equivalent to required percentage; and Largest of the similar contracts amounts to at least 50% of required percentage

IRR Revisions: Goods  Eligibility 

Criteria (Sec. 23)

Expendable Supplies (Sec. 5 [m]) 



Articles normally consumed within 1 year or value is substantially decreased after 1 year Examples: medicines, stationery, fuel, and spare parts

IRR Revisions: Goods  Eligibility 

Criteria (Sec. 23)

Non-expendable Supplies (Sec. 5 [w])   

Not consumed in use Serviceable life more than 1 year Examples: furniture, fixtures, transport, and other equipment

IRR Revisions: Goods  Eligibility 

Criteria (Sec. 23)

Financial Eligibility  

NFCC at least equal to ABC Credit Line Certificate at least equal to 10% of ABC  



Issued/confirmed 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: Goods  Submission 

and Receipt of Bids (Sec. 25)

Two-Envelope System (Eligibility requirements included in the Technical Proposal)

IRR Revisions: Goods  Submission 

and Receipt of Bids (Sec. 25)

First Envelope    

Eligibility requirements Bid security Technical specifications Omnibus sworn statement

IRR Revisions: Goods  Submission 

and Receipt of Bids (Sec. 25)

Second Envelope 

Financial information/documents specified in the Philippine Bidding Documents

IRR Revisions: Goods  Bid



Opening (Sec. 29)

BAC shall adopt a procedure for ensuring the integrity, security, and confidentiality of all submitted bids

IRR Revisions: Goods  No



Contact Rule (Sec. 32)

BAC, thru Secretariat, may request for clarification of bid as long as it is in writing

IRR Revisions: Goods  Post-qualification



(Sec. 34)

Submission of the ff documents within 3 calendar days from receipt of notice that bidder is LCB:    

Tax clearance Latest income and business tax returns Certificate of PhilGEPS registration Other appropriate licenses and permits required by law and stated in the Bidding Documents.

IRR Revisions: Goods  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: Goods 

Bid & Performance Securities (Secs. 27 & 39) 

Deleted certified check from acceptable forms



In general, bank issued securities must be issued by a universal/commercial bank 



For LGUs, securities may be issued by banks certified by BSP as authorized to issue said instruments

Surety Bonds must be accompanied by certification from Insurance Commission that issuer is authorized to issue such security

IRR Revisions: Goods Form of Bid and Performance Security

Amt of Bid Security (% of the ABC)

Amt of Performance Security (% of Contract Price)

2%

5%

5%

30%

a)Cash, cashier’s/manager’s check, bank guarantee/ draft b) Irrevocable LC

c)Surety bond callable upon demand

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

IRR Revisions: Goods  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).

IRR Revisions: Goods  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: Goods  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: Goods  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

Sample Computation

Lowest Calculated Bid

Next Lowest Calculated Bid

Foreign Bidder

Domestic Bidder/Entity

Bid % Preference

2,653,360.00 x

3,009,492.00

15% 398,004.00

+ 2,653,360.00 Bid as increased Result

3,051,364.00

3,009,492.00

Award to Domestic Bidder/Entity at 2,653,360.00, or Award to Foreign Bidder if Domestic Bidder/Entity refuses

IRR Revisions: Goods  Warranty

Security (Sec. 62)



Expendable Supplies – 3 months, unless consumed earlier

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Non-expendable Supplies – 1 year

IRR Revisions: Goods  Advance

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Payment for Goods

Goods supplied from abroad  

10% advance payment allowed Upon submission of a bank guarantee  

Equivalent amount Valid until goods are delivered

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