Salient IRR Revisions Alternative Methods of Procurement

IRR: Alternative Methods General Rule: Public Bidding APP provides sufficient lead time for bidding Resort 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 posted Those who meet specified criteria shall be pre- selected 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

Higher Threshold Amount for Unforeseen Contingencies NGAs, GOCCs, GFIs, SUCs – P100,000 LGUs – In the case of Barangays, the maximum amount is P50,000 Shopping & Small Value Procurement Classification Maximum Amount (in Philippine Pesos) ProvinceCityMunicipality 1 st Class100,000 50,000 2 nd Class100,000 50,000 3 rd Class100,00080,00050,000 4 th Class80,00060,00050,000 5 th Class60,00050,000 6 th Class50,000

Higher Threshold Amount for Regular Office Supplies and Small Value Procurement NGAs, GOCCs, GFIs, SUCs – P500,000 LGUs – In the case of Barangays, the maximum amount is P50,000 Shopping & Small Value Procurement Classification Maximum Amount (in Philippine Pesos) ProvinceCityMunicipality 1 st Class500, ,000 2 nd Class500, ,000 3 rd Class500,000400,000100,000 4 th Class400,000300,00050,000 5 th Class300,000200,00050,000 6 th Class200,000100,00050,000

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 Bidding (Sec. 53.1, cont.) Successful offer to be selected: 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 [a])

IRR: Alternative Methods Additional instances of Negotiated Procurement: Lease of Real Property (Sec ) Include lease of venues Guidelines to follow

IRR: Alternative Methods Additional instances of Negotiated Procurement: Community Participation (Sec ) 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 ) 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 Terms and Conditions (Sec. 54) Advertisement/Posting not necessary, except: 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 ] Procurement from UN agencies [Sec ]

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