Salient IRR Revisions Procurement of Infrastructure
IRR Revisions: Infra
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
Unless otherwise stated in treaty or international or executive agreement
IRR Revisions: Infra
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: Infra
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: Infra Eligibility
Criteria (Sec. 23)
Legal Eligibility
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: Infra Eligibility
Criteria (Sec. 23)
Technical Eligibility
PCAB License (RA 4566) Satisfactory CPES rating and/or certificate of completion and acceptance
IRR Revisions: Infra Eligibility
Criteria (Sec. 23)
Technical Eligibility
Track Record: Single Largest Contract for Infra
Retain at 50% But within a period of ten years
For foreign funded procurement, a different track record may be agreed upon
IRR Revisions: Infra Eligibility
Criteria (Sec. 23)
Financial Eligibility
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 issue said CLC
Option to submit cash deposit certificate deleted
IRR Revisions: Infra Submission
and Receipt of Bids (Sec. 25)
Two-Envelope System (Eligibility requirements included in the Technical Proposal)
Technical (including eligibility requirements) and Financial Proposals will now be submitted at the same time
IRR Revisions: Infra Submission
and Receipt of Bids (Sec. 25)
First Envelope
Eligibility requirements Bid security Project requirements Omnibus sworn statement
IRR Revisions: Infra Submission
and Receipt of Bids (Sec. 25)
Second Envelope
Financial information/documents specified in the Philippine Bidding Documents
IRR Revisions: Infra Post-qualification
(Sec. 34)
Submission of the ff documents:
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: Infra
Notice of Award (Sec. 37)
Conditioned on the following:
If joint venture, submission of JVA If foreign-funded and stated in treaty or international or executive agreement, PCAB License Posting of Performance Security Signing of Contract If required, approvals by higher authority
IRR Revisions: Infra
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
However, in biddings conducted by 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: Infra Form of Bid and Performance Security
Amt of Bid Security (% of the ABC)
Amt of Performance Security (% of Contract Price)
2%
10%
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: Infra Warranty
Security (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
IRR Revisions: Infra 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
Thank you Comments,
questions?