BIDDING DOCUMENTS

Procurement and Installation of

Seven (7) Pieces Brand New
Arch Rubber Pier/Dock
Fenders
 Preface
These Philippine Bidding Documents (PBDs) for the procurement of Goods through
Competitive Bidding have been prepared by the Government of the Philippines (GOP) for
use by all branches, agencies, departments, bureaus, offices, or instrumentalities of the
government, including government-owned and/or -controlled corporations (GOCCs),
government financial institutions (GFIs), state universities and colleges (SUCs), and local
government units (LGUs) and autonomous regional government. The procedures and
practices presented in this document have been developed through broad experience, and are
for mandatory1 use in projects that are financed in whole or in part by the GOP or any foreign
government/foreign or international financing institution in accordance with the provisions of
the 2016 Revised Implementing Rules and Regulations (IRR) of Republic Act (RA) 9184.

The Bidding Documents shall clearly and adequately define, among others: (a) the
objectives, scope, and expected outputs and/or results of the proposed contract; (b) the
eligibility requirements of bidders, such as track record to be determined by the Head of the
Procuring Entity; (c) the expected contract duration, the estimated quantity in the case of
procurement of goods, delivery schedule and/or time frame; and (d) the obligations, duties,
and/or functions of the winning bidder.

In order to simplify the preparation of the Bidding Documents for each procurement,
the PBDs groups the provisions that are intended to be used unchanged in Section II.
Instructions to Bidders (ITB) and in Section IV. General Conditions of Contract (GCC). Data
and provisions specific to each procurement and contract should be included in Section III.
Bid Data Sheet (BDS); Section V. Special Conditions of Contract (SCC); Section VI.
Schedule of Requirements; Section VII. Technical Specifications, and Section IX. Foreign-
Assisted Projects. The forms to be used are provided in Section VIII. Bidding Forms.

Care should be taken to check the relevance of the provisions of the PBDs against the
requirements of the specific Goods to be procured. In addition, each section is prepared with
notes intended only as information for CEZA or the person drafting the Bidding Documents.
They shall not be included in the final documents, except for the notes introducing Section
VIII. Bidding Forms where the information is useful for the Bidder. The following general
directions should be observed when using the documents:

(a) All the documents listed in the Table of Contents are normally required for the
procurement of Goods. However, they should be adapted as necessary to the
circumstances of the particular Project.

(b) Specific details, such as the “name of the Procuring Entity” and “address for
bid submission,” should be furnished in the ITB, BDS, and SCC. The final
documents should contain neither blank spaces nor options.

(c) This Preface and the footnotes or notes in italics included in the Invitation to
Bid, BDS, SCC, Schedule of Requirements, and Specifications are not part of

1 Unless the Treaty or International or Executive Agreement expressly provides use of foreign
government/foreign or international financing institution procurement guidelines.

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 the text of the final document, although they contain instructions that CEZA
should strictly follow. The Bidding Documents should contain no footnotes
except Section VIII. Bidding Forms since these provide important guidance to
Bidders.

(d) The cover should be modified as required to identify the Bidding Documents
as to the names of the Project, Contract, and Procuring Entity, in addition to
date of issue.

(e) If modifications must be made to bidding requirements, they can be presented

in the BDS. Modifications for specific Project or Contract details should be
provided in the SCC as amendments to the Conditions of Contract. For easy
completion, whenever reference has to be made to specific clauses in the BDS
or SCC these terms shall be printed in bold type face on Section I. Instructions
to Bidders and Section III. General Conditions of Contract, respectively.

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 TABLE OF CONTENTS

SECTION I. INVITATION TO BID .........................................................................7

SECTION II. INSTRUCTIONS TO BIDDERS ...........................................................9
SECTION III. BID DATA SHEET ........................................................................ 40
SECTION IV. GENERAL CONDITIONS OF CONTRACT ....................................... 44
SECTION V. SPECIAL CONDITIONS OF CONTRACT .......................................... 58
SECTION VI. SCHEDULE OF REQUIREMENTS ................................................... 66
SECTION VII. TECHNICAL SPECIFICATIONS .................................................... 67
SECTION VIII. BIDDING FORMS ...................................................................... 70
 Section I. Invitation to Bid
Notes on the Invitation to Bid
The Invitation to Bid provides information that enables potential Bidders to decide
whether to participate in the procurement at hand. The Invitation to Bid shall be:

(a) Posted continuously in the Philippine Government Electronic Procurement System

(PhilGEPS) website, the website of CEZA, if available, and the website prescribed
by the foreign government/foreign or international financing institution, if
applicable, for seven (7) calendar days starting on the date of advertisement;

(b) Posted at any conspicuous place reserved for this purpose in the premises of the
Procuring Entity concerned for seven (7) calendar days, as certified by the head of
the Bids and Awards Committee (BAC) Secretariat of CEZA; and

(c) Advertised at least once in a newspaper of general nationwide circulation which has
been regularly published for at least two (2) years before the date of issue of the
advertisement, subject to Section 21.2.1(c) of the IRR of RA 91842.

Apart from the essential items listed in the Bidding Documents, the Invitation to Bid
should also indicate the following:

(a) The date of availability of the Bidding Documents, which shall be from the time
the Invitation to Bid is first advertised/posted until the deadline for the submission
and receipt of bids;

(b) The place where the Bidding Documents may be acquired or the website where it
may be downloaded;

(c) The deadline for the submission and receipt of bids from the last day of posting of
the Invitation to Bid; and

(d) Any important bid evaluation criteria (e.g., the application of a margin of
preference in bid evaluation).

The Invitation to Bid should be incorporated in the Bidding Documents. The information
contained in the Invitation to Bid must conform to the Bidding Documents and in
particular to the relevant information in the BDS.

For foreign-assisted projects, the Invitation to Bid to be used is provided in Section IX-

2 Two years after the effectivity of the 2016 Revised IRR of R.A. No. 9184 on 28 October 2016, advertisement
in a newspaper of general nationwide circulation shall no longer be required. However, a procuring entity that
cannot post its opportunities in the PhilGEPS for justifiable reasons shall continue to publish its advertisements
in a newspaper of general nationwide circulation.

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Foreign-Assisted Projects.

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 INVITATION TO BID
Procurement and Installation of Seven (7) Pieces Brand New Arch Rubber Pier/Dock Fenders

The Cagayan Economic Zone Authority, through the Corporate Operating Budget CY 2018 intends to apply the sum of
Two Million Seven Hundred Thousand Pesos (P = 2,700,000.00) being the Approved Budget for the Contract (ABC) for
Procurement and Installation of Seven (7) Pieces Brand New Arch Rubber Pier/Dock Fenders. Bids received in excess of
the ABC shall be automatically rejected at bid opening.

The Cagayan Economic Zone Authority now invites bids for Procurement and Installation of Seven (7) Pieces Brand New
Arch Rubber Pier/Dock Fenders that can withstand an impact from vessels with 16,000 DWT.

Bidders should have completed, within the last three (3) years from the date of submission and receipt of bids, a contract similar
to the Project. The description of an eligible bidder is contained in the Bidding Documents, particularly, in Section II. Instructions
to Bidders.

Bidding will be conducted through open competitive bidding procedures using a non-discretionary “pass/fail” criterion as
specified in the Implementing Rules and Regulations (IRR) of Republic Act (RA) 9184, otherwise known as the “Government
Procurement Reform Act”.

Bidding is restricted to Filipino citizens/sole proprietorships, partnerships, or organizations with at least sixty percent (60%)
interest or outstanding capital stock belonging to citizens of the Philippines, and to citizens or organizations of a country the
laws or regulations of which grant similar rights or privileges to Filipino citizens, pursuant to RA 5183 and subject to
Commonwealth Act 138.

Interested bidders may obtain further information from Cagayan Economic Zone Authority and inspect the Bidding Documents
at the address given below during 8:00AM to 5:00PM.

A complete set of Bidding Documents may be purchased by interested Bidders on July 20 – August 13, 2018 from the address
below and upon payment of a nonrefundable fee for the Bidding Documents in the amount of P
= 5,000.00

The Cagayan Economic Zone Authority will hold a Pre-Bid Conference on August 1, 2018, 10:00AM at the Boardroom, CEZA
Pasig, 7th Floor Westar Building, 611 Shaw Boulevard, Pasig City, which shall be open to all interested parties.

Bids must be delivered to CEZA Pasig, 7th Floor Westar Building, 611 Shaw Boulevard, Pasig City on or before August 13,
2018, 5:00PM. All Bids must be accompanied by a bid security in any of the acceptable forms as indicated in the BDS.

Bid opening shall be on August 14, 2018, 201810:00 AM at Boardroom, CEZA Pasig, 7th Floor, 611 Shaw Boulevard, Pasig
City. Bids will be opened in the presence of the Bidders’ representatives who choose to attend at the address below. Late bids
shall not be accepted.

The Cagayan Economic Zone Authority reserves the right to accept or reject any bid, to annul the bidding process, and to
reject all bids at any time prior to contract award, without thereby incurring any liability to the affected bidder or bidders.

For further information, please refer to:

CEZA Sta. Ana Office

BAC Secretariat
CEZA Complex, Centro, Sta. Ana, Cagayan
Telephone Number: (02) 703-7360

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OR

CEZA Pasig Office

BAC Secretariat
7th Floor, Westar Building, Shaw Boulevard, Pasig City
Telephone Numbers: (02) 636-5780
Fax Numbers: (02) 687-2466

DHART E. CARPIO
BAC Chairman

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 Section II. Instructions to Bidders

Notes on the Instructions to Bidders

This Section of the Bidding Documents provides the information necessary for bidders to
prepare responsive bids, in accordance with the requirements of the Procuring Entity. It
also provides information on bid submission, eligibility check, opening and evaluation of
bids, post-qualification and on the award of contract.

This Section also contains provisions that are to be used unchanged. Section III consists of
provisions that supplement, amend, or specify in detail, information or requirements
included in Section II which are specific to each procurement.

Matters governing performance of the Supplier, payments under the contract, or matters
affecting the risks, rights, and obligations of the parties under the contract are not normally
included in this Section, but rather under Section IV. General Conditions of Contract
(GCC), and/or Section V. Special Conditions of Contract (SCC). If duplication of a
subject is inevitable in other sections of the document prepared by the Procuring Entity,
care must be exercised to avoid contradictions between clauses dealing with the same
matter.

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 TABLE OF CONTENTS

A. GENERAL ..................................................................................................... 12
1. Scope of Bid ............................................................................................................. 12
2. Source of Funds ........................................................................................................ 12
3. Corrupt, Fraudulent, Collusive, and Coercive Practices .......................................... 12
4. Conflict of Interest ................................................................................................... 13
5. Eligible Bidders ........................................................................................................ 15
6. Bidder’s Responsibilities.......................................................................................... 16
7. Origin of Goods ........................................................................................................ 18
8. Subcontracts ............................................................................................................. 18
B. CONTENTS OF BIDDING DOCUMENTS ............................................................ 19
9. Pre-Bid Conference .................................................................................................. 19
10. Clarification and Amendment of Bidding Documents ............................................. 19
C. PREPARATION OF BIDS ................................................................................. 20
11. Language of Bid ....................................................................................................... 20
12. Documents Comprising the Bid: Eligibility and Technical Components ................ 20
13. Documents Comprising the Bid: Financial Component .......................................... 22
14. Alternative Bids ........................................................................................................ 23
15. Bid Prices ................................................................................................................. 23
16. Bid Currencies .......................................................................................................... 25
17. Bid Validity .............................................................................................................. 25
18. Bid Security .............................................................................................................. 25
19. Format and Signing of Bids ..................................................................................... 28
20. Sealing and Marking of Bids .................................................................................... 28
D. SUBMISSION AND OPENING OF BIDS ............................................................. 29
21. Deadline for Submission of Bids ............................................................................. 29
22. Late Bids .................................................................................................................. 29
23. Modification and Withdrawal of Bids ...................................................................... 29
24. Opening and Preliminary Examination of Bids ....................................................... 30
E. EVALUATION AND COMPARISON OF BIDS ..................................................... 32
25. Process to be Confidential ........................................................................................ 32
26. Clarification of Bids ................................................................................................. 32
27. Domestic Preference................................................................................................. 32

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 28. Detailed Evaluation and Comparison of Bids .......................................................... 33
29. Post-Qualification..................................................................................................... 34
30. Reservation Clause ................................................................................................... 35
F. AWARD OF CONTRACT ................................................................................. 36
31. Contract Award ........................................................................................................ 36
32. Signing of the Contract ............................................................................................ 37
33. Performance Security ............................................................................................... 37
34. Notice to Proceed ..................................................................................................... 39
35. Protest Mechanism…………………………………………………………………39

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 A. General

1. Scope of Bid
1.1. CEZA named in the BDS invites bids for the supply and delivery of the
Goods as described in Section VII. Technical Specifications.

1.2. The name, identification, and number of lots specific to this bidding are
provided in the BDS. The contracting strategy and basis of evaluation of lots
is described in ITB Clause 28.

2. Source of Funds
CEZAhas a budget or has received funds from the Funding Source named in the BDS,
and in the amount indicated in the BDS. It intends to apply part of the funds received
for the Project, as defined in the BDS, to cover eligible payments under the contract.

3. Corrupt, Fraudulent, Collusive, and Coercive Practices

3.1. Unless otherwise specified in the BDS, CEZA as well as the bidders and
suppliers shall observe the highest standard of ethics during the procurement
and execution of the contract. In pursuance of this policy, the Procuring
Entity:

(a) defines, for purposes of this provision, the terms set forth below as
follows:

(i) “corrupt practice” means behavior on the part of officials in the

public or private sectors by which they improperly and
unlawfully enrich themselves, others, or induce others to do so,
by misusing the position in which they are placed, and includes
the offering, giving, receiving, or soliciting of anything of value
to influence the action of any such official in the procurement
process or in contract execution; entering, on behalf of the
government, into any contract or transaction manifestly and
grossly disadvantageous to the same, whether or not the public
officer profited or will profit thereby, and similar acts as
provided in RA 3019.

(ii) “fraudulent practice” means a misrepresentation of facts in

order to influence a procurement process or the execution of a
contract to the detriment of the Procuring Entity, and includes
collusive practices among Bidders (prior to or after bid
submission) designed to establish bid prices at artificial, non-
competitive levels and to deprive CEZA of the benefits of free
and open competition.

(iii) “collusive practices” means a scheme or arrangement between

two or more Bidders, with or without the knowledge of the

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 Procuring Entity, designed to establish bid prices at artificial,
non-competitive levels.

(iv) “coercive practices” means harming or threatening to harm,

directly or indirectly, persons, or their property to influence
their participation in a procurement process, or affect the
execution of a contract;

(v) “obstructive practice” is

(aa) deliberately destroying, falsifying, altering or

concealing of evidence material to an administrative
proceedings or investigation or making false statements
to investigators in order to materially impede an
administrative proceedings or investigation of or any
foreign government/foreign or international financing
institution into allegations of a corrupt, fraudulent,
coercive or collusive practice; and/or threatening,
harassing or intimidating any party to prevent it from
disclosing its knowledge of matters relevant to the
administrative proceedings or investigation or from
pursuing such proceedings or investigation; or

(bb) acts intended to materially impede the exercise of the

inspection and audit rights of CEZA or any foreign
government/foreign or international financing
institution herein.

(b) will reject a proposal for award if it determines that the Bidder
recommended for award has engaged in any of the practices mentioned
in this Clause for purposes of competing for the contract.

3.2. Further, CEZA will seek to impose the maximum civil, administrative, and/or
criminal penalties available under applicable laws on individuals and
organizations deemed to be involved in any of the practices mentioned in ITB
Clause 3.1(a).

3.3. Furthermore, the Funding Source and CEZA reserve the right to inspect and
audit records and accounts of a bidder or supplier in the bidding for and
performance of a contract themselves or through independent auditors as
reflected in the GCC Clause 3.

4. Conflict of Interest
4.1. All Bidders found to have conflicting interests shall be disqualified to
participate in the procurement at hand, without prejudice to the imposition of
appropriate administrative, civil, and criminal sanctions. A Bidder may be
considered to have conflicting interests with another Bidder in any of the
events described in paragraphs (a) through (c) below and a general conflict of
interest in any of the circumstances set out in paragraphs (d) through (g)
below:

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 (a) A Bidder has controlling shareholders in common with another Bidder;

(b) A Bidder receives or has received any direct or indirect subsidy from
any other Bidder;

(c) A Bidder has the same legal representative as that of another Bidder
for purposes of this bid;

(d) A Bidder has a relationship, directly or through third parties, that puts
them in a position to have access to information about or influence on
the bid of another Bidder or influence the decisions of CEZA regarding
this bidding process;

(e) A Bidder submits more than one bid in this bidding process. However,
this does not limit the participation of subcontractors in more than one
bid;

(f) A Bidder who participated as a consultant in the preparation of the

design or technical specifications of the Goods and related services that
are the subject of the bid; or

(g) A Bidder who lends, or temporarily seconds, its personnel to firms or

organizations which are engaged in consulting services for the
preparation related to procurement for or implementation of the
project, if the personnel would be involved in any capacity on the same
project.

4.2. In accordance with Section 47 of the IRR of RA 9184, all Bidding Documents
shall be accompanied by a sworn affidavit of the Bidder that it is not related to
the Head of the Procuring Entity (HoPE), members of the Bids and Awards
Committee (BAC), members of the Technical Working Group (TWG),
members of the BAC Secretariat, the head of the Project Management Office
(PMO) or the end-user unit, and the project consultants, by consanguinity or
affinity up to the third civil degree. On the part of the Bidder, this Clause shall
apply to the following persons:

(a) If the Bidder is an individual or a sole proprietorship, to the Bidder

himself;

(b) If the Bidder is a partnership, to all its officers and members;

(c) If the Bidder is a corporation, to all its officers, directors, and

controlling stockholders;

(d) If the Bidder is a cooperative, to all its officers, directors, and

controlling shareholders or members; and

(e) If the Bidder is a joint venture (JV), the provisions of items (a), (b), (c),
or (d) of this Clause shall correspondingly apply to each of the
members of the said JV, as may be appropriate.

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 Relationship of the nature described above or failure to comply with this
Clause will result in the automatic disqualification of a Bidder.

5. Eligible Bidders
5.1. Unless otherwise provided in the BDS, the following persons shall be eligible
to participate in this bidding:

(a) Duly licensed Filipino citizens/sole proprietorships;

(b) Partnerships duly organized under the laws of the Philippines and of
which at least sixty percent (60%) of the interest belongs to citizens of
the Philippines;

(c) Corporations duly organized under the laws of the Philippines, and of
which at least sixty percent (60%) of the outstanding capital stock
belongs to citizens of the Philippines;

(d) Cooperatives duly organized under the laws of the Philippines; and

(e) Persons/entities forming themselves into a Joint Venture (JV), i.e., a

group of two (2) or more persons/entities that intend to be jointly and
severally responsible or liable for a particular contract: Provided,
however, that Filipino ownership or interest of the JV concerned shall
be at least sixty percent (60%).

5.2. Foreign bidders may be eligible to participate when any of the following
circumstances exist, as specified in the BDS:

(a) When a Treaty or International or Executive Agreement as provided in

Section 4 of RA 9184 and its IRR allow foreign bidders to participate;

(b) Citizens, corporations, or associations of a country, the laws or

regulations of which grant reciprocal rights or privileges to citizens,
corporations, or associations of the Philippines;

(c) When the Goods sought to be procured are not available from local
suppliers; or

(d) When there is a need to prevent situations that defeat competition or

restrain trade.

5.3. Government owned or –controlled corporations (GOCCs) may be eligible to

participate only if they can establish that they (a) are legally and financially
autonomous, (b) operate under commercial law, and (c) are not attached
agencies of the Procuring Entity.

5.4. Unless otherwise provided in the BDS, the Bidder must have completed a
Single Largest Completed Contract (SLCC) similar to the Project and the
value of which, adjusted, if necessary, by the Bidder to current prices using the
Philippine Statistics Authority (PSA) consumer price index, must be at least
equivalent to a percentage of the ABC stated in the BDS.

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 For this purpose, contracts similar to the Project shall be those described in the
BDS, and completed within the relevant period stated in the Invitation to Bid
and ITB Clause 12.1(a)(ii).

5.5. The Bidder must submit a computation of its Net Financial Contracting
Capacity (NFCC), which must be at least equal to the ABC to be bid,
calculated as follows:

NFCC = [(Current assets minus current liabilities) (15)] minus the value of
all outstanding or uncompleted portions of the projects under ongoing
contracts, including awarded contracts yet to be started, coinciding with
the contract to be bid.

The values of the domestic bidder’s current assets and current liabilities shall
be based on the latest Audited Financial Statements submitted to the BIR.

For purposes of computing the foreign bidders’ NFCC, the value of the current
assets and current liabilities shall be based on their audited financial
statements prepared in accordance with international financial reporting
standards.

If the prospective bidder opts to submit a committed Line of Credit, it must be

at least equal to ten percent (10%) of the ABC to be bid. If issued by a foreign
universal or commercial bank, it shall be confirmed or authenticated by a local
universal or commercial bank.

6. Bidder’s Responsibilities
6.1. The Bidder or its duly authorized representative shall submit a sworn
statement in the form prescribed in Section VIII. Bidding Forms as required in
ITB Clause 12.1(b)(iii).

6.2. The Bidder is responsible for the following:

(a) Having taken steps to carefully examine all of the Bidding

Documents;

(b) Having acknowledged all conditions, local or otherwise, affecting the

implementation of the contract;

(c) Having made an estimate of the facilities available and needed for the
contract to be bid, if any;

(d) Having complied with its responsibility to inquire or secure

Supplemental/Bid Bulletin(s) as provided under ITB Clause 10.4.

(e) Ensuring that it is not “blacklisted” or barred from bidding by the GOP
or any of its agencies, offices, corporations, or LGUs, including
foreign government/foreign or international financing institution whose
blacklisting rules have been recognized by the GPPB;

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(f) Ensuring that each of the documents submitted in satisfaction of the
bidding requirements is an authentic copy of the original, complete,
and all statements and information provided therein are true and
correct;

(g) Authorizing the HoPE or its duly authorized representative/s to verify

all the documents submitted;

(h) Ensuring that the signatory is the duly authorized representative of the
Bidder, and granted full power and authority to do, execute and
perform any and all acts necessary and/or to represent the Bidder in the
bidding, with the duly notarized Secretary’s Certificate attesting to
such fact, if the Bidder is a corporation, partnership, cooperative, or
joint venture;

(i) Complying with the disclosure provision under Section 47 of RA 9184

and its IRR in relation to other provisions of RA 3019;

(j) Complying with existing labor laws and standards, in the case of
procurement of services; Moreover, bidder undertakes to:

(i) Ensure the entitlement of workers to wages, hours of work,

safety and health and other prevailing conditions of work as
established by national laws, rules and regulations; or collective
bargaining agreement; or arbitration award, if and when
applicable.

In case there is a finding by CEZA or the DOLE of

underpayment or non-payment of workers’ wage and wage-
related benefits, bidder agrees that the performance security or
portion of the contract amount shall be withheld in favor of the
complaining workers pursuant to appropriate provisions of
Republic Act No. 9184 without prejudice to the institution of
appropriate actions under the Labor Code, as amended, and
other social legislations.

(ii) Comply with occupational safety and health standards and to

correct deficiencies, if any.

In case of imminent danger, injury or death of the worker,

bidder undertakes to suspend contract implementation pending
clearance to proceed from the DOLE Regional Office and to
comply with Work Stoppage Order; and

(iii) Inform the workers of their conditions of work, labor clauses

under the contract specifying wages, hours of work and other
benefits under prevailing national laws, rules and regulations;
or collective bargaining agreement; or arbitration award, if and
when applicable, through posting in two (2) conspicuous places
in the establishment’s premises; and

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 (k) Ensuring that it did not give or pay, directly or indirectly, any
commission, amount, fee, or any form of consideration, pecuniary or
otherwise, to any person or official, personnel or representative of the
government in relation to any procurement project or activity.

Failure to observe any of the above responsibilities shall be at the risk of the
Bidder concerned.

6.3. The Bidder is expected to examine all instructions, forms, terms, and
specifications in the Bidding Documents.

6.4. It shall be the sole responsibility of the Bidder to determine and to satisfy itself
by such means as it considers necessary or desirable as to all matters
pertaining to the contract to be bid, including: (a) the location and the nature
of this Project; (b) climatic conditions; (c) transportation facilities; and (d)
other factors that may affect the cost, duration, and execution or
implementation of this Project.

6.5. CEZA shall not assume any responsibility regarding erroneous interpretations
or conclusions by the prospective or eligible bidder out of the data furnished
by the procuring entity. However, CEZA shall ensure that all information in
the Bidding Documents, including bid/supplemental bid bulletin/s issued, are
correct and consistent.

6.6. Before submitting their bids, the Bidder is deemed to have become familiar
with all existing laws, decrees, ordinances, acts and regulations of the
Philippines which may affect this Project in any way.

6.7. The Bidder shall bear all costs associated with the preparation and submission
of his bid, and CEZA will in no case be responsible or liable for those costs,
regardless of the conduct or outcome of the bidding process.

6.8. The Bidder should note that CEZA will accept bids only from those that have
paid the applicable fee for the Bidding Documents at the office indicated in
the Invitation to Bid.

7. Origin of Goods
Unless otherwise indicated in the BDS, there is no restriction on the origin of goods
other than those prohibited by a decision of the United Nations Security Council taken
under Chapter VII of the Charter of the United Nations, subject to ITB Clause 27.1.

8. Subcontracts
8.1. Unless otherwise specified in the BDS, the Bidder may subcontract portions of
the Goods to an extent as may be approved by CEZA and stated in the BDS.
However, subcontracting of any portion shall not relieve the Bidder from any
liability or obligation that may arise from the contract for this Project.

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 8.2. Subcontractors must submit the documentary requirements under ITB Clause
12 and comply with the eligibility criteria specified in the BDS. In the event
that any subcontractor is found by CEZA to be ineligible, the subcontracting
of such portion of the Goods shall be disallowed.

8.3. The Bidder may identify the subcontractor to whom a portion of the Goods
will be subcontracted at any stage of the bidding process or during contract
implementation. If the Bidder opts to disclose the name of the subcontractor
during bid submission, the Bidder shall include the required documents as part
of the technical component of its bid.

B. Contents of Bidding Documents

9. Pre-Bid Conference
9.1. (a) If so specified in the BDS, a pre-bid conference shall be held at the venue
and on the date indicated therein, to clarify and address the Bidders’ questions
on the technical and financial components of this Project.

(b) The pre-bid conference shall be held at least twelve (12) calendar days
before the deadline for the submission and receipt of bids, but not earlier than
seven (7) calendar days from the posting of the invitation to bid/bidding
documents in the PhilGEPS website. If CEZA determines that, by reason of
the method, nature, or complexity of the contract to be bid, or when
international participation will be more advantageous to the GOP, a longer
period for the preparation of bids is necessary, the pre-bid conference shall be
held at least thirty (30) calendar days before the deadline for the submission
and receipt of bids, as specified in the BDS.

9.2. Bidders are encouraged to attend the pre-bid conference to ensure that they
fully understand the Procuring Entity’s requirements. Non-attendance of the
Bidder will in no way prejudice its bid; however, the Bidder is expected to
know the changes and/or amendments to the Bidding Documents as recorded
in the minutes of the pre-bid conference and the Supplemental/Bid Bulletin.
The minutes of the pre-bid conference shall be recorded and prepared not later
than five (5) calendar days after the pre-bid conference. The minutes shall be
made available to prospective bidders not later than five (5) days upon written
request.

9.3 Decisions of the BAC amending any provision of the bidding documents shall
be issued in writing through a Supplemental/Bid Bulletin at least seven (7)
calendar days before the deadline for the submission and receipt of bids.

10. Clarification and Amendment of Bidding Documents

10.1. Prospective bidders may request for clarification on and/or interpretation of
any part of the Bidding Documents. Such request must be in writing and
submitted to CEZA at the address indicated in the BDS at least ten (10)
calendar days before the deadline set for the submission and receipt of Bids.

19
 10.2. The BAC shall respond to the said request by issuing a Supplemental/Bid
Bulletin, to be made available to all those who have properly secured the
Bidding Documents, at least seven (7) calendar days before the deadline for
the submission and receipt of Bids.

10.3. Supplemental/Bid Bulletins may also be issued upon the Procuring Entity’s
initiative for purposes of clarifying or modifying any provision of the Bidding
Documents not later than seven (7) calendar days before the deadline for the
submission and receipt of Bids. Any modification to the Bidding Documents
shall be identified as an amendment.

10.4. Any Supplemental/Bid Bulletin issued by the BAC shall also be posted in the
PhilGEPS and the website of CEZA, if available, and at any conspicuous place
in the premises of CEZA. It shall be the responsibility of all Bidders who have
properly secured the Bidding Documents to inquire and secure
Supplemental/Bid Bulletins that may be issued by the BAC. However, Bidders
who have submitted bids before the issuance of the Supplemental/Bid Bulletin
must be informed and allowed to modify or withdraw their bids in accordance
with ITB Clause 23.

C. Preparation of Bids

11. Language of Bids

The eligibility requirements or statements, the bids, and all other documents to be
submitted to the BAC must be in English. If the eligibility requirements or statements,
the bids, and all other documents submitted to the BAC are in foreign language other
than English, it must be accompanied by a translation of the documents in English.
The documents shall be translated by the relevant foreign government agency, the
foreign government agency authorized to translate documents, or a registered
translator in the foreign bidder’s country; and shall be authenticated by the
appropriate Philippine foreign service establishment/post or the equivalent office
having jurisdiction over the foreign bidder’s affairs in the Philippines. The English
translation shall govern, for purposes of interpretation of the bid.

12. Documents Comprising the Bid: Eligibility and Technical

Components
12.1. Unless otherwise indicated in the BDS, the first envelope shall contain the
following eligibility and technical documents:

(a) Eligibility Documents –

Class “A” Documents:

(i) PhilGEPS Certificate of Registration and Membership in

accordance with Section 8.5.2 of the IRR, except for foreign
bidders participating in the procurement by a Philippine
Foreign Service Office or Post, which shall submit their
eligibility documents under Section 23.1 of the IRR, provided,

20
 that the winning bidder shall register with the PhilGEPS in
accordance with section 37.1.4 of the IRR.

(ii) Statement of all its ongoing government and private contracts,

including contracts awarded but not yet started, if any, whether
similar or not similar in nature and complexity to the contract
to be bid; and

Statement of the Bidder’s SLCC similar to the contract to be

bid, in accordance with ITB Clause 5.4, within the relevant
period as provided in the BDS.

The two statements required shall indicate for each contract the
following:

(ii.1) name of the contract;

(ii.2) date of the contract;

(ii.3) contract duration;

(ii.4) owner’s name and address;

(ii.5) kinds of Goods;

(ii.6) For Statement of Ongoing Contracts - amount of

contract and value of outstanding contracts;

(ii.7) For Statement of SLCC - amount of completed

contracts, adjusted by the Bidder to current prices using
PSA’s consumer price index, if necessary for the
purpose of meeting the SLCC requirement;

(ii.8) date of delivery; and

(ii.9) end user’s acceptance or official receipt(s) or sales

invoice issued for the contract, if completed, which
shall be attached to the statements.

(iii) NFCC computation in accordance with ITB Clause 5.5 or a

committed Line of Credit from a universal or commercial bank.

Class “B” Document:

(iv) If applicable, the Joint Venture Agreement (JVA) in case the

joint venture is already in existence, or duly notarized
statements from all the potential joint venture partners in
accordance with Section 23.1(b) of the IRR.

(b) Technical Documents –

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 (i) Bid security in accordance with ITB Clause 18. If the Bidder
opts to submit the bid security in the form of:

(i.1) a bank draft/guarantee or an irrevocable letter of credit

issued by a foreign bank, it shall be accompanied by a
confirmation from a Universal or Commercial Bank; or

(i.2) a surety bond, it shall be accompanied by a certification

by the Insurance Commission that the surety or
insurance company is authorized to issue such
instruments;

(ii) Conformity with technical specifications, as enumerated and

specified in Sections VI and VII of the Bidding Documents;
and

(iii) Sworn statement in accordance with Section 25.3 of the IRR of

RA 9184 and using the form prescribed in Section VIII.
Bidding Forms.

(iv) For foreign bidders claiming eligibility by reason of their

country’s extension of reciprocal rights to Filipinos, a
certification from the relevant government office of their
country stating that Filipinos are allowed to participate in their
government procurement activities for the same item or
product.

13. Documents Comprising the Bid: Financial Component

13.1. Unless otherwise stated in the BDS, the financial component of the bid shall
contain the following:

(a) Financial Bid Form, which includes bid prices and the applicable Price
Schedules, in accordance with ITB Clauses 15.1 and 15.4;

(b) If the Bidder claims preference as a Domestic Bidder, a certification

from the DTI issued in accordance with ITB Clause 27, unless
otherwise provided in the BDS; and

(c) Any other document related to the financial component of the bid as
stated in the BDS.

13.2. (a) Unless otherwise stated in the BDS, all bids that exceed the
ABC shall not be accepted.

(b) Unless otherwise indicated in the BDS, for foreign-funded

procurement, a ceiling may be applied to bid prices provided the
following conditions are met:

(i) Bidding Documents are obtainable free of charge on a freely

accessible website. If payment of Bidding Documents is required

22
 by the procuring entity, payment could be made upon the
submission of bids.

(ii) CEZA has procedures in place to ensure that the ABC is based on
recent estimates made by the responsible unit of CEZA and that
the estimates reflect the quality, supervision and risk and
inflationary factors, as well as prevailing market prices,
associated with the types of works or goods to be procured.

(iii) CEZA has trained cost estimators on estimating prices and

analyzing bid variances.

(iv) CEZA has established a system to monitor and report bid prices
relative to ABC and engineer’s/procuring entity’s estimate.

(v) CEZA has established a monitoring and evaluation system for

contract implementation to provide a feedback on actual total
costs of goods and works.

14. Alternative Bids

14.1 Alternative Bids shall be rejected. For this purpose, alternative bid is an offer
made by a Bidder in addition or as a substitute to its original bid which may be
included as part of its original bid or submitted separately therewith for
purposes of bidding. A bid with options is considered an alternative bid
regardless of whether said bid proposal is contained in a single envelope or
submitted in two (2) or more separate bid envelopes.

14.2 Each Bidder shall submit only one Bid, either individually or as a partner in a
JV. A Bidder who submits or participates in more than one bid (other than as
a subcontractor if a subcontractor is permitted to participate in more than one
bid) will cause all the proposals with the Bidder’s participation to be
disqualified. This shall be without prejudice to any applicable criminal, civil
and administrative penalties that may be imposed upon the persons and
entities concerned.

15. Bid Prices

15.1. The Bidder shall complete the appropriate Schedule of Prices included herein,
stating the unit prices, total price per item, the total amount and the expected
countries of origin of the Goods to be supplied under this Project.

15.2. The Bidder shall fill in rates and prices for all items of the Goods described in
the Schedule of Prices. Bids not addressing or providing all of the required
items in the Bidding Documents including, where applicable, Schedule of
Prices, shall be considered non-responsive and, thus, automatically
disqualified. In this regard, where a required item is provided, but no price is
indicated, the same shall be considered as non-responsive, but specifying a
zero (0) or a dash (-) for the said item would mean that it is being offered for
free to the Government, except those required by law or regulations to be
accomplished.

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15.3. The terms Ex Works (EXW), Cost, Insurance and Freight (CIF), Cost and
Insurance Paid to (CIP), Delivered Duty Paid (DDP), and other trade terms
used to describe the obligations of the parties, shall be governed by the rules
prescribed in the current edition of the International Commercial Terms
(INCOTERMS) published by the International Chamber of Commerce, Paris.

15.4. Prices indicated on the Price Schedule shall be entered separately in the
following manner:

(a) For Goods offered from within the Procuring Entity’s country:

(i) The price of the Goods quoted EXW (ex works, ex factory, ex
warehouse, ex showroom, or off-the-shelf, as applicable);

(ii) The cost of all customs duties and sales and other taxes already
paid or payable;

(iii) The cost of transportation, insurance, and other costs incidental

to delivery of the Goods to their final destination; and

(iv) The price of other (incidental) services, if any, listed in the

BDS.

(b) For Goods offered from abroad:

(i) Unless otherwise stated in the BDS, the price of the Goods
shall be quoted DDP with the place of destination in the
Philippines as specified in the BDS. In quoting the price, the
Bidder shall be free to use transportation through carriers
registered in any eligible country. Similarly, the Bidder may
obtain insurance services from any eligible source country.

(ii) The price of other (incidental) services, if any, listed in the

BDS.

(c) For Services, based on the form which may be prescribed by the
Procuring Entity, in accordance with existing laws, rules and
regulations

15.5. Prices quoted by the Bidder shall be fixed during the Bidder’s performance of
the contract and not subject to variation or price escalation on any account. A
bid submitted with an adjustable price quotation shall be treated as non-
responsive and shall be rejected, pursuant to ITB Clause 24.

All bid prices for the given scope of work in the contract as awarded shall be
considered as fixed prices, and therefore not subject to price escalation during
contract implementation, except under extraordinary circumstances. Upon the
recommendation of the Procuring Entity, price escalation may be allowed in
extraordinary circumstances as may be determined by the National Economic
and Development Authority in accordance with the Civil Code of the
Philippines, and upon approval by the GPPB. Nevertheless, in cases where the
cost of the awarded contract is affected by any applicable new laws,

24
 ordinances, regulations, or other acts of the GOP, promulgated after the date
of bid opening, a contract price adjustment shall be made or appropriate relief
shall be applied on a no loss-no gain basis.

16. Bid Currencies

16.1. Prices shall be quoted in the following currencies:

(a) For Goods that the Bidder will supply from within the Philippines, the
prices shall be quoted in Philippine Pesos.

(b) For Goods that the Bidder will supply from outside the Philippines, the
prices may be quoted in the currency(ies) stated in the BDS. However,
for purposes of bid evaluation, bids denominated in foreign currencies
shall be converted to Philippine currency based on the exchange rate as
published in the Bangko Sentral ng Pilipinas (BSP) reference rate
bulletin on the day of the bid opening.

16.2. If so allowed in accordance with ITB Clause 16.1, CEZA for purposes of bid
evaluation and comparing the bid prices will convert the amounts in various
currencies in which the bid price is expressed to Philippine Pesos at the
foregoing exchange rates.

16.3. Unless otherwise specified in the BDS, payment of the contract price shall be
made in Philippine Pesos.

17. Bid Validity

17.1. Bids shall remain valid for the period specified in the BDS which shall not
exceed one hundred twenty (120) calendar days from the date of the opening
of bids.

17.2. In exceptional circumstances, prior to the expiration of the bid validity period,
CEZA may request Bidders to extend the period of validity of their bids. The
request and the responses shall be made in writing. The bid security described
in ITB Clause 18 should also be extended corresponding to the extension of
the bid validity period at the least. A Bidder may refuse the request without
forfeiting its bid security, but his bid shall no longer be considered for further
evaluation and award. A Bidder granting the request shall not be required or
permitted to modify its bid.

18. Bid Security

18.1. The Bidder shall submit a Bid Securing Declaration or any form of Bid
Security in the amount stated in the BDS, which shall be not less than the
percentage of the ABC in accordance with the following schedule:

Amount of Bid Security

Form of Bid Security (Not Less than the Percentage of the
ABC)

25
 (a) Cash or cashier’s/manager’s
check issued by a Universal or
Commercial Bank.

For biddings conducted by

LGUs, the Cashier’s/Manager’s
Check may be issued by other
banks certified by the BSP as
authorized to issue such
financial instrument.

(b) Bank draft/guarantee or

irrevocable letter of credit issued
by a Universal or Commercial
Two percent (2%)
Bank: Provided, however, that it
shall be confirmed or
authenticated by a Universal or
Commercial Bank, if issued by a
foreign bank.

For biddings conducted by

LGUs, Bank Draft/Guarantee, or
Irrevocable Letter of Credit may
be issued by other banks
certified by the BSP as
authorized to issue such
financial instrument.

(c) Surety bond callable upon

demand issued by a surety or
insurance company duly certified Five percent (5%)
by the Insurance Commission as
authorized to issue such security.

The Bid Securing Declaration mentioned above is an undertaking which

states, among others, that the Bidder shall enter into contract with CEZA and
furnish the performance security required under ITB Clause 33.2, within ten
(10) calendar days from receipt of the Notice of Award, and commits to pay
the corresponding amount as fine, and be suspended for a period of time from
being qualified to participate in any government procurement activity in the
event it violates any of the conditions stated therein as provided in the
guidelines issued by the GPPB.

18.2. The bid security should be valid for the period specified in the BDS. Any bid
not accompanied by an acceptable bid security shall be rejected by CEZA as
non-responsive.

18.3. No bid securities shall be returned to Bidders after the opening of bids and
before contract signing, except to those that failed or declared as post-
disqualified, upon submission of a written waiver of their right to file a request

26
 for reconsideration and/or protest, or upon the lapse of the reglementary period
to file a request for reconsideration or protest. Without prejudice on its
forfeiture, bid securities shall be returned only after the Bidder with the
Lowest Calculated Responsive Bid (LCRB) has signed the contract and
furnished the performance security, but in no case later than the expiration of
the bid security validity period indicated in ITB Clause 18.2.

18.4. Upon signing and execution of the contract pursuant to ITB Clause 32, and the
posting of the performance security pursuant to ITB Clause 33, the successful
Bidder’s bid security will be discharged, but in no case later than the bid
security validity period as indicated in the ITB Clause 18.2.

18.5. The bid security may be forfeited:

(a) if a Bidder:

(i) withdraws its bid during the period of bid validity specified in
ITB Clause 17;

(ii) does not accept the correction of errors pursuant to ITB Clause
28.3(b);

(iii) has a finding against the veracity of any of the documents

submitted as stated in ITB Clause 29.2;

(iv) submission of eligibility requirements containing false

information or falsified documents;

(v) submission of bids that contain false information or falsified

documents, or the concealment of such information in the bids
in order to influence the outcome of eligibility screening or any
other stage of the public bidding;

(vi) allowing the use of one’s name, or using the name of another
for purposes of public bidding;

(vii) withdrawal of a bid, or refusal to accept an award, or enter into

contract with the Government without justifiable cause, after
the Bidder had been adjudged as having submitted the LCRB;

(viii) refusal or failure to post the required performance security

within the prescribed time;

(ix) refusal to clarify or validate in writing its bid during post-

qualification within a period of seven (7) calendar days from
receipt of the request for clarification;

(x) any documented attempt by a Bidder to unduly influence the

outcome of the bidding in his favor;

(xi) failure of the potential joint venture partners to enter into the
joint venture after the bid is declared successful; or

27
 (xii) all other acts that tend to defeat the purpose of the competitive
bidding, such as habitually withdrawing from bidding,
submitting late Bids or patently insufficient bid, for at least
three (3) times within a year, except for valid reasons.

(b) if the successful Bidder:

(i) fails to sign the contract in accordance with ITB Clause 32; or

(ii) fails to furnish performance security in accordance with ITB

Clause 33.

19. Format and Signing of Bids

19.1. Bidders shall submit their bids through their duly authorized representative
using the appropriate forms provided in Section VIII. Bidding Forms on or
before the deadline specified in the ITB Clauses 21 in two (2) separate sealed
bid envelopes, and which shall be submitted simultaneously. The first shall
contain the technical component of the bid, including the eligibility
requirements under ITB Clause 12.1, and the second shall contain the
financial component of the bid. This shall also be observed for each lot in the
case of lot procurement.

19.2. Forms as mentioned in ITB Clause 19.1 must be completed without any
alterations to their format, and no substitute form shall be accepted. All blank
spaces shall be filled in with the information requested.

19.3. The Bidder shall prepare and submit an original of the first and second
envelopes as described in ITB Clauses 12 and 13. In addition, the Bidder shall
submit copies of the first and second envelopes. In the event of any
discrepancy between the original and the copies, the original shall prevail.

19.4. Each and every page of the Bid Form, including the Schedule of Prices, under
Section VIII hereof, shall be signed by the duly authorized representative/s of
the Bidder. Failure to do so shall be a ground for the rejection of the bid.

19.5. Any interlineations, erasures, or overwriting shall be valid only if they are
signed or initialed by the duly authorized representative/s of the Bidder.

20. Sealing and Marking of Bids

20.1. Bidders shall enclose their original eligibility and technical documents
described in ITB Clause 12 in one sealed envelope marked “ORIGINAL -
TECHNICAL COMPONENT”, and the original of their financial component
in another sealed envelope marked “ORIGINAL - FINANCIAL
COMPONENT”, sealing them all in an outer envelope marked “ORIGINAL
BID”.

20.2. Each copy of the first and second envelopes shall be similarly sealed duly
marking the inner envelopes as “COPY NO. ___ - TECHNICAL
COMPONENT” and “COPY NO. ___ – FINANCIAL COMPONENT” and

28
 the outer envelope as “COPY NO. ___”, respectively. These envelopes
containing the original and the copies shall then be enclosed in one single
envelope.

20.3. The original and the number of copies of the Bid as indicated in the BDS shall
be typed or written in ink and shall be signed by the Bidder or its duly
authorized representative/s.

20.4. All envelopes shall:

(a) contain the name of the contract to be bid in capital letters;

(b) bear the name and address of the Bidder in capital letters;

(c) be addressed to the Procuring Entity’s BAC in accordance with ITB

Clause 1.1;

(d) bear the specific identification of this bidding process indicated in the
ITB Clause 1.2; and

(e) bear a warning “DO NOT OPEN BEFORE…” the date and time for
the opening of bids, in accordance with ITB Clause 21.

20.5. Bid envelopes that are not properly sealed and marked, as required in the
bidding documents, shall not be rejected, but the Bidder or its duly authorized
representative shall acknowledge such condition of the bid as submitted. The
BAC or CEZA shall assume no responsibility for the misplacement of the
contents of the improperly sealed or marked bid, or for its premature opening.

D. Submission and Opening of Bids

21. Deadline for Submission of Bids

Bids must be received by the Procuring Entity’s BAC at the address and on or before
the date and time indicated in the BDS.

22. Late Bids

Any bid submitted after the deadline for submission and receipt of bids prescribed by
the Procuring Entity, pursuant to ITB Clause 21, shall be declared “Late” and shall
not be accepted by the Procuring Entity. The BAC shall record in the minutes of bid
submission and opening, the Bidder’s name, its representative and the time the late
bid was submitted.

23. Modification and Withdrawal of Bids

23.1. The Bidder may modify its bid after it has been submitted; provided that the
modification is received by CEZA prior to the deadline prescribed for
submission and receipt of bids. The Bidder shall not be allowed to retrieve its
original bid, but shall be allowed to submit another bid equally sealed and
properly identified in accordance with ITB Clause 20, linked to its original bid

29
 marked as “TECHNICAL MODIFICATION” or “FINANCIAL
MODIFICATION” and stamped “received” by the BAC. Bid modifications
received after the applicable deadline shall not be considered and shall be
returned to the Bidder unopened.

23.2 A Bidder may, through a Letter of Withdrawal, withdraw its bid after it has
been submitted, for valid and justifiable reason; provided that the Letter of
Withdrawal is received by CEZA prior to the deadline prescribed for
submission and receipt of bids. The Letter of Withdrawal must be executed by
the duly authorized representative of the Bidder identified in the Omnibus
Sworn Statement, a copy of which should be attached to the letter.

23.3. Bids requested to be withdrawn in accordance with ITB Clause 23.1 shall be
returned unopened to the Bidders. A Bidder, who has acquired the bidding
documents, may also express its intention not to participate in the bidding
through a letter which should reach and be stamped by the BAC before the
deadline for submission and receipt of bids. A Bidder that withdraws its bid
shall not be permitted to submit another bid, directly or indirectly, for the
same contract.

23.4. No bid may be modified after the deadline for submission of bids. No bid may
be withdrawn in the interval between the deadline for submission of bids and
the expiration of the period of bid validity specified by the Bidder on the
Financial Bid Form. Withdrawal of a bid during this interval shall result in the
forfeiture of the Bidder’s bid security, pursuant to ITB Clause 18.5, and the
imposition of administrative, civil and criminal sanctions as prescribed by RA
9184 and its IRR.

24. Opening and Preliminary Examination of Bids

24.1. The BAC shall open the bids in public, immediately after the deadline for the
submission and receipt of bids, as specified in the BDS. In case the Bids
cannot be opened as scheduled due to justifiable reasons, the BAC shall take
custody of the Bids submitted and reschedule the opening of Bids on the next
working day or at the soonest possible time through the issuance of a Notice of
Postponement to be posted in the PhilGEPS website and the website of CEZA
concerned.

24.2. Unless otherwise specified in the BDS, the BAC shall open the first bid
envelopes and determine each Bidder’s compliance with the documents
prescribed in ITB Clause 12, using a non-discretionary “pass/fail” criterion. If
a Bidder submits the required document, it shall be rated “passed” for that
particular requirement. In this regard, bids that fail to include any requirement
or are incomplete or patently insufficient shall be considered as “failed”.
Otherwise, the BAC shall rate the said first bid envelope as “passed”.

30
24.3. Unless otherwise specified in the BDS, immediately after determining
compliance with the requirements in the first envelope, the BAC shall
forthwith open the second bid envelope of each remaining eligible bidder
whose first bid envelope was rated “passed”. The second envelope of each
complying bidder shall be opened within the same day. In case one or more of
the requirements in the second envelope of a particular bid is missing,
incomplete or patently insufficient, and/or if the submitted total bid price
exceeds the ABC unless otherwise provided in ITB Clause 13.2, the BAC
shall rate the bid concerned as “failed”. Only bids that are determined to
contain all the bid requirements for both components shall be rated “passed”
and shall immediately be considered for evaluation and comparison .

24.4. Letters of Withdrawal shall be read out and recorded during bid opening, and
the envelope containing the corresponding withdrawn bid shall be returned to
the Bidder unopened.

24.5. All members of the BAC who are present during bid opening shall initial
every page of the original copies of all bids received and opened.

24.6. In the case of an eligible foreign bidder as described in ITB Clause 5, the
following Class “A” Documents may be substituted with the appropriate
equivalent documents, if any, issued by the country of the foreign Bidder
concerned, which shall likewise be uploaded and maintained in the PhilGEPS
in accordance with Section 8.5.2 of the IRR:

(a) Registration certificate from the Securities and Exchange Commission

(SEC), Department of Trade and Industry (DTI) for sole proprietorship, or
CDA for cooperatives;

(b) Mayor’s/Business permit issued by the local government where the

principal place of business of the bidder is located; and

(c) Audited Financial Statements showing, among others, the prospective

bidder’s total and current assets and liabilities stamped “received” by the
Bureau of Internal Revenue or its duly accredited and authorized
institutions, for the preceding calendar year which should not be earlier
than two years from the date of bid submission.

24.7. Each partner of a joint venture agreement shall likewise submit the
requirements in ITB Clause 12.1(a)(i). Submission of documents required
under ITB Clauses 12.1(a)(ii) to 12.1(a)(iii) by any of the joint venture
partners constitutes compliance.

24.8. CEZA shall prepare the minutes of the proceedings of the bid opening that
shall include, as a minimum: (a) names of Bidders, their bid price (per lot, if
applicable, and/or including discount, if any), bid security, findings of
preliminary examination, and whether there is a withdrawal or modification;
and (b) attendance sheet. The BAC members shall sign the abstract of bids as
read.

31
 24.8 The bidders or their duly authorized representatives may attend the opening of
bids. The BAC shall ensure the integrity, security, and confidentiality of all
submitted bids. The Abstract of Bids as read and the minutes of the bid
opening shall be made available to the public upon written request and
payment of a specified fee to recover cost of materials.

24.9 To ensure transparency and accurate representation of the bid submission, the
BAC Secretariat shall notify in writing all bidders whose bids it has received
through its PhilGEPS-registered physical address or official e-mail address.
The notice shall be issued within seven (7) calendar days from the date of the
bid opening.

E. Evaluation and Comparison of Bids

25. Process to be Confidential

25.1. Members of the BAC, including its staff and personnel, as well as its
Secretariat and TWG, are prohibited from making or accepting any kind of
communication with any bidder regarding the evaluation of their bids until the
issuance of the Notice of Award, unless otherwise allowed in the case of ITB
Clause 26.

25.2. Any effort by a bidder to influence CEZA in the Procuring Entity’s decision in
respect of bid evaluation, bid comparison or contract award will result in the
rejection of the Bidder’s bid.

26. Clarification of Bids

To assist in the evaluation, comparison, and post-qualification of the bids, CEZA may
ask in writing any Bidder for a clarification of its bid. All responses to requests for
clarification shall be in writing. Any clarification submitted by a Bidder in respect to
its bid and that is not in response to a request by CEZA shall not be considered.

27. Domestic Preference

27.1. Unless otherwise stated in the BDS, CEZA will grant a margin of preference
for the purpose of comparison of bids in accordance with the following:

(a) The preference shall be applied when the lowest Foreign Bid is lower
than the lowest bid offered by a Domestic Bidder.

(b) For evaluation purposes, the lowest Foreign Bid shall be increased by
fifteen percent (15%).

(c) In the event that the lowest bid offered by a Domestic Bidder does not
exceed the lowest Foreign Bid as increased, then CEZA shall award
the contract to the Domestic Bidder at the amount of the lowest
Foreign Bid.

(d) If the Domestic Bidder refuses to accept the award of contract at the
amount of the Foreign Bid within two (2) calendar days from receipt of

32
 written advice from the BAC, CEZA shall award to the bidder offering
the Foreign Bid, subject to post-qualification and submission of all the
documentary requirements under these Bidding Documents.

27.2. A Bidder may be granted preference as a Domestic Bidder subject to the

certification from the DTI that the Bidder is offering unmanufactured articles,
materials or supplies of the growth or production of the Philippines, or
manufactured articles, materials, or supplies manufactured or to be
manufactured in the Philippines substantially from articles, materials, or
supplies of the growth, production, or manufacture, as the case may be, of the
Philippines.

28. Detailed Evaluation and Comparison of Bids

28.1. CEZA will undertake the detailed evaluation and comparison of bids which
have passed the opening and preliminary examination of bids, pursuant to ITB
Clause 24, in order to determine the Lowest Calculated Bid.

28.2. The Lowest Calculated Bid shall be determined in two steps:

(a) The detailed evaluation of the financial component of the bids, to

establish the correct calculated prices of the bids; and

(b) The ranking of the total bid prices as so calculated from the lowest to
the highest. The bid with the lowest price shall be identified as the
Lowest Calculated Bid.

28.3. The Procuring Entity’s BAC shall immediately conduct a detailed evaluation
of all bids rated “passed,” using non-discretionary pass/fail criteria. The BAC
shall consider the following in the evaluation of bids:

(a) Completeness of the bid. Unless the BDS allows partial bids, bids not
addressing or providing all of the required items in the Schedule of
Requirements including, where applicable, Schedule of Prices, shall be
considered non-responsive and, thus, automatically disqualified. In this
regard, where a required item is provided, but no price is indicated, the
same shall be considered as non-responsive, but specifying a zero (0)
or a dash (-) for the said item would mean that it is being offered for
free to the Procuring Entity, except those required by law or
regulations to be provided for; and

(b) Arithmetical corrections. Consider computational errors and omissions

to enable proper comparison of all eligible bids. It may also consider
bid modifications. Any adjustment shall be calculated in monetary
terms to determine the calculated prices.

28.4. Based on the detailed evaluation of bids, those that comply with the above-
mentioned requirements shall be ranked in the ascending order of their total
calculated bid prices, as evaluated and corrected for computational errors,
discounts and other modifications, to identify the Lowest Calculated Bid.
Total calculated bid prices, as evaluated and corrected for computational

33
 errors, discounts and other modifications, which exceed the ABC shall not be
considered, unless otherwise indicated in the BDS.

28.5. The Procuring Entity’s evaluation of bids shall be based on the bid price
quoted in the Bid Form, which includes the Schedule of Prices.

28.6. Bids shall be evaluated on an equal footing to ensure fair competition. For
this purpose, all bidders shall be required to include in their bids the cost of all
taxes, such as, but not limited to, value added tax (VAT), income tax, local
taxes, and other fiscal levies and duties which shall be itemized in the bid form
and reflected in the detailed estimates. Such bids, including said taxes, shall
be the basis for bid evaluation and comparison.

28.7. If so indicated pursuant to ITB Clause 1.2, Bids are being invited for
individual lots or for any combination thereof, provided that all Bids and
combinations of Bids shall be received by the same deadline and opened and
evaluated simultaneously so as to determine the Bid or combination of Bids
offering the lowest calculated cost to the Procuring Entity. Bid prices quoted
shall correspond to all items specified for each lot and to all quantities
specified for each item of a lot. Bid Security as required by ITB Clause 18
shall be submitted for each contract (lot) separately. The basis for evaluation
of lots is specified in BDS Clause 28.3.

29. Post-Qualification
29.1. The BAC shall determine to its satisfaction whether the Bidder that is
evaluated as having submitted the Lowest Calculated Bid complies with and is
responsive to all the requirements and conditions specified in ITB Clauses 5,
12, and 13.

29.2. Within a non-extendible period of five (5) calendar days from receipt by the
bidder of the notice from the BAC that it submitted the Lowest Calculated
Bid, the Bidder shall submit its latest income and business tax returns filed and
paid through the BIR Electronic Filing and Payment System (eFPS) and other
appropriate licenses and permits required by law and stated in the BDS.

Failure to submit any of the post-qualification requirements on time, or a

finding against the veracity thereof, shall disqualify the bidder for award.
Provided in the event that a finding against the veracity of any of the
documents submitted is made, it shall cause the forfeiture of the bid security in
accordance with Section 69 of the IRR of RA 9184.

29.3. The determination shall be based upon an examination of the documentary

evidence of the Bidder’s qualifications submitted pursuant to ITB Clauses 12
and 13, as well as other information as CEZA deems necessary and
appropriate, using a non-discretionary “pass/fail” criterion, which shall be
completed within a period of twelve (12) calendar days.

29.4. If the BAC determines that the Bidder with the Lowest Calculated Bid passes
all the criteria for post-qualification, it shall declare the said bid as the LCRB,

34
 and recommend to the HoPE the award of contract to the said Bidder at its
submitted price or its calculated bid price, whichever is lower.

29.5. A negative determination shall result in rejection of the Bidder’s Bid, in which
event CEZA shall proceed to the next Lowest Calculated Bid with a fresh
period to make a similar determination of that Bidder’s capabilities to perform
satisfactorily. If the second Bidder, however, fails the post qualification, the
procedure for post qualification shall be repeated for the Bidder with the next
Lowest Calculated Bid, and so on until the LCRB is determined for
recommendation for contract award.

29.6. Within a period not exceeding fifteen (15) calendar days from the
determination by the BAC of the LCRB and the recommendation to award the
contract, the HoPE or his duly authorized representative shall approve or
disapprove the said recommendation.

29.7. In the event of disapproval, which shall be based on valid, reasonable, and
justifiable grounds as provided for under Section 41 of the IRR of RA 9184,
the HoPE shall notify the BAC and the Bidder in writing of such decision and
the grounds for it. When applicable, the BAC shall conduct a post-
qualification of the Bidder with the next Lowest Calculated Bid. A request for
reconsideration may be filed by the bidder with the HoPE in accordance with
Section 37.1.3 of the IRR of RA 9184.

30. Reservation Clause

30.1. Notwithstanding the eligibility or post-qualification of a Bidder, CEZA
reserves the right to review its qualifications at any stage of the procurement
process if it has reasonable grounds to believe that a misrepresentation has
been made by the said Bidder, or that there has been a change in the Bidder’s
capability to undertake the project from the time it submitted its eligibility
requirements. Should such review uncover any misrepresentation made in the
eligibility and bidding requirements, statements or documents, or any changes
in the situation of the Bidder which will affect its capability to undertake the
project so that it fails the preset eligibility or bid evaluation criteria, CEZA
shall consider the said Bidder as ineligible and shall disqualify it from
submitting a bid or from obtaining an award or contract.

30.2. Based on the following grounds, CEZA reserves the right to reject any and all
bids, declare a Failure of Bidding at any time prior to the contract award, or
not to award the contract, without thereby incurring any liability, and make no
assurance that a contract shall be entered into as a result of the bidding:

(a) If there is prima facie evidence of collusion between appropriate public

officers or employees of the Procuring Entity, or between the BAC and
any of the Bidders, or if the collusion is between or among the bidders
themselves, or between a Bidder and a third party, including any act
which restricts, suppresses or nullifies or tends to restrict, suppress or
nullify competition;

35
 (b) If the Procuring Entity’s BAC is found to have failed in following the
prescribed bidding procedures; or

(c) For any justifiable and reasonable ground where the award of the
contract will not redound to the benefit of the GOP as follows:

(i) If the physical and economic conditions have significantly

changed so as to render the project no longer economically,
financially or technically feasible as determined by the HoPE;

(ii) If the project is no longer necessary as determined by the

HoPE; and

(iii) If the source of funds for the project has been withheld or
reduced through no fault of the Procuring Entity.

30.3. In addition, CEZA may likewise declare a failure of bidding when:

(a) No bids are received;

(b) All prospective Bidders are declared ineligible;

(c) All bids fail to comply with all the bid requirements or fail post-
qualification; or

(d) The bidder with the LCRB refuses, without justifiable cause to accept
the award of contract, and no award is made in accordance with
Section 40 of the IRR of RA 9184.

F. Award of Contract

31. Contract Award

31.1. Subject to ITB Clause 29, the HoPE or its duly authorized representative shall
award the contract to the Bidder whose bid has been determined to be the
LCRB.

31.2. Prior to the expiration of the period of bid validity, CEZA shall notify the
successful Bidder in writing that its bid has been accepted, through a Notice of
Award duly received by the Bidder or its representative personally or sent by
registered mail or electronically, receipt of which must be confirmed in
writing within two (2) days by the Bidder with the LCRB and submitted
personally or sent by registered mail or electronically to the Procuring Entity.

31.3. Notwithstanding the issuance of the Notice of Award, award of contract shall
be subject to the following conditions:

(a) Submission of the following documents within ten (10) calendar days
from receipt of the Notice of Award:

(i) Valid JVA, if applicable; or

36
 (ii) In the case of procurement by a Philippine Foreign Service
Office or Post, the PhilGEPS Registration Number of the
winning foreign Bidder;

(b) Posting of the performance security in accordance with ITB Clause 33;

(c) Signing of the contract as provided in ITB Clause 32; and

(d) Approval by higher authority, if required, as provided in Section 37.3

of the IRR of RA 9184.

31.4. At the time of contract award, CEZA shall not increase or decrease the
quantity of goods originally specified in Section VI. Schedule of
Requirements.

32. Signing of the Contract

32.1. At the same time as CEZA notifies the successful Bidder that its bid has been
accepted, CEZA shall send the Contract Form to the Bidder, which contract
has been provided in the Bidding Documents, incorporating therein all
agreements between the parties.

32.2. Within ten (10) calendar days from receipt of the Notice of Award, the
successful Bidder shall post the required performance security, sign and date
the contract and return it to the Procuring Entity.

32.3. CEZA shall enter into contract with the successful Bidder within the same ten
(10) calendar day period provided that all the documentary requirements are
complied with.

32.4. The following documents shall form part of the contract:

(a) Contract Agreement;

(b) Bidding Documents;

(c) Winning bidder’s bid, including the Technical and Financial Proposals,
and all other documents/statements submitted (e.g., bidder’s response
to request for clarifications on the bid), including corrections to the
bid, if any, resulting from the Procuring Entity’s bid evaluation;

(d) Performance Security;

(e) Notice of Award of Contract; and

(f) Other contract documents that may be required by existing laws and/or
specified in the BDS.

33. Performance Security

33.1. To guarantee the faithful performance by the winning Bidder of its obligations
under the contract, it shall post a performance security within a maximum

37
 period of ten (10) calendar days from the receipt of the Notice of Award from
CEZA and in no case later than the signing of the contract.

33.2. The Performance Security shall be denominated in Philippine Pesos and

posted in favor of CEZA in an amount not less than the percentage of the total
contract price in accordance with the following schedule:

Amount of Performance Security

Form of Performance Security (Not less than the Percentage of the
Total Contract Price)
(a) Cash or cashier’s/manager’s
check issued by a Universal or
Commercial Bank.

For biddings conducted by the

LGUs, the Cashier’s/Manager’s
Check may be issued by other
banks certified by the BSP as
authorized to issue such
financial instrument.

(b) Bank draft/guarantee or

irrevocable letter of credit
issued by a Universal or
Five percent (5%)
Commercial Bank: Provided,
however, that it shall be
confirmed or authenticated by a
Universal or Commercial Bank,
if issued by a foreign bank.

For biddings conducted by the

LGUs, the Bank Draft/
Guarantee or Irrevocable Letter
of Credit may be issued by other
banks certified by the BSP as
authorized to issue such
financial instrument.

(c) Surety bond callable upon

demand issued by a surety or
insurance company duly
Thirty percent (30%)
certified by the Insurance
Commission as authorized to
issue such security.

33.3. Failure of the successful Bidder to comply with the above-mentioned

requirement shall constitute sufficient ground for the annulment of the award
and forfeiture of the bid security, in which event CEZA shall have a fresh
period to initiate and complete the post qualification of the second Lowest
Calculated Bid. The procedure shall be repeated until the LCRB is identified

38
 and selected for recommendation of contract award. However if no Bidder
passed post-qualification, the BAC shall declare the bidding a failure and
conduct a re-bidding with re-advertisement, if necessary.

34. Notice to Proceed

Within seven (7) calendar days from the date of approval of the contract by the
appropriate government approving authority, CEZA shall issue the Notice to Proceed
(NTP) together with a copy or copies of the approved contract to the successful
Bidder. All notices called for by the terms of the contract shall be effective only at the
time of receipt thereof by the successful Bidder.

35. Protest Mechanism

Decisions of CEZA at any stage of the procurement process may be questioned in
accordance with Section 55 of the IRR of RA 9184.

39
 Section III. Bid Data Sheet

Notes on the Bid Data Sheet

Section III is intended to assist CEZA in providing the specific information in relation to
corresponding clauses in the ITB included in Section II, and has to be prepared for each
specific procurement.

CEZA should specify in the BDS information and requirements specific to the
circumstances of the Procuring Entity, the processing of the procurement, the applicable
rules regarding bid price and currency, and the bid evaluation criteria that will apply to the
bids. In preparing Section III, the following aspects should be checked:

(a) Information that specifies and complements provisions of Section II must be

incorporated.

(b) Amendments and/or supplements, if any, to provisions of Section II as necessitated

by the circumstances of the specific procurement, must also be incorporated.

For foreign-assisted projects, the Bid Data Sheet to be used is provided in Section IX-
Foreign-Assisted Projects.

40
 Bid Data Sheet
ITB Clause

1.1 The Procuring Entity is Cagayan Economic Zone Authority.

The name of the Contract is Procurement and Installation of Seven (7)

Pieces Brand New Arch Rubber Pier/Dock Fenders

1.2 The lot(s) and reference is/are:

BAC Reference No. 006-2018

2 The Funding Source is:

The CEZA Corporate Operating Budget for FY 2018 in the amount of

Two Million Seven Hundred Thousand Pesos (P
= 2,700,000.00)

NOTE: In the case of National Government Agencies, the General

Appropriations Act and/or continuing appropriations; in the case of
Government-Owned and/or –Controlled Corporations, Government
Financial Institutions, and State Universities and Colleges, the
Corporate Budget for the contract approved by the governing Boards; in
the case of Local Government Units, the Budget for the contract
approved by the respective Sanggunian.

The name of the Project is: Procurement and Installation of Seven (7)
Pieces Brand New Arch Rubber Pier/Dock Fenders
3.1 No further instructions.

5.1 No further instructions.

5.2 Foreign bidders, except those falling under ITB Clause 5.2(b), may not
participate in this Project.

5.4 The Bidder must have completed, within the period specified in the
Invitation to Bid and ITB Clause 12.1(a)(ii), a single contract that is similar
to this Project, equivalent to at least fifty percent (50%) of the ABC.

No further instructions.

7 No further instructions.

8.1 Subcontracting is not allowed.

8.2 Not applicable.

9.1 CEZA will hold a pre-bid conference for this Project on August 01, 2018,
10:00 AM at the Boardroom, CEZA Pasig, 7th Floor Westar Building, 611
Shaw Boulevard, Pasig City.

41
10.1 The Procuring Entity’s address is:

CEZA Pasig Office, 7/F Westar Bldg., 611 Shaw Blvd, Pasig City.

Marian Rochelle Leovigilda V. Andres

BAC Secretariat

TeleFax (02)636-5776

12.1(a) No further instructions.

12.1(a)(ii) The bidder’s SLCC similar to the contract to be bid should have been
completed within 1 year prior to the deadline for the submission and receipt
of bids.

13.1 No additional requirements.

13.1(b) No further instructions.

13.1(c) No additional requirements.

13.2 The ABC is Two Million Seven Hundred Thousand Pesos

(P
= 2,700,000.00)
Any bid with a financial component exceeding this amount shall not be
accepted.

15.4(a)(iv) No incidental services are required.

15.4(b) Not applicable.

No incidental services are required.

16.1(b) The Bid prices for Goods supplied from outside of the Philippines shall be
quoted in Philippine Pesos.

16.3 Not applicable.

17.1 Bids will be valid until December 11, 2018.

18.1 The bid security shall be in the form of a Bid Securing Declaration, or any
of the following forms and amounts:

1. The amount of not less than P

= 54,000.00 for all item or 2% of the ABC
of the item which is the subject of partial bidding, if bid security is in
cash, cashier’s/manager’s check, bank draft/guarantee or irrevocable
letter of credit; or

2. The amount of not less than P= 135,000.00 for all item or 5% of the
ABC of the item which is the subject of partial bidding, if bid security
is in Surety Bond.

42
18.2 The bid security shall be valid until December 11, 2018.

20.3 Each Bidder shall submit one (1) original and four (4) copies of the first
and second components of its bid.

21 The address for submission of bids is CEZA Pasig Office, 7/F Westar
Bldg., 611 Shaw Blvd, Pasig City.

The deadline for submission of bids is August 13, 2018, 5:00 PM

24.1 The place of bid opening is CEZA Pasig Office, 7/F Westar Bldg., 611
Shaw Blvd, Pasig City.

The date and time of bid opening is August 14, 2018, 10:00 AM

24.2 No further instructions.

24.3 No further instructions.

27.1 No further instructions.

28.3 (a) Partial bid is not allowed. The goods are grouped in a single lot and the lot
shall not be divided into sub-lots for the purpose of bidding, evaluation, and
contract award.

28.4 No further instructions.

29.2 No additional requirement.

32.4(f) No additional requirement.

43
 Section IV. General Conditions of Contract

Notes on the General Conditions of Contract

The GCC in Section IV, read in conjunction with the SCC in Section V and other
documents listed therein, should be a complete document expressing all the rights and
obligations of the parties.

The GCC herein shall not be altered. Any changes and complementary information, which
may be needed, shall be introduced only through the SCC in Section V.

44
1. Definitions
1.1. In this Contract, the following terms shall be interpreted as indicated:

(a) “The Contract” means the agreement entered into between CEZA and
the Supplier, as recorded in the Contract Form signed by the parties,
including all attachments and appendices thereto and all documents
incorporated by reference therein.

(b) “The Contract Price” means the price payable to the Supplier under the
Contract for the full and proper performance of its contractual
obligations.

(c) “The Goods” means all of the supplies, equipment, machinery, spare
parts, other materials and/or general support services which the
Supplier is required to provide to CEZA under the Contract.

(d) “The Services” means those services ancillary to the supply of the
Goods, such as transportation and insurance, and any other incidental
services, such as installation, commissioning, provision of technical
assistance, training, and other such obligations of the Supplier covered
under the Contract.

(e) “GCC” means the General Conditions of Contract contained in this

Section.

(f) “SCC” means the Special Conditions of Contract.

(g) “The Procuring Entity” means the organization purchasing the Goods,
as named in the SCC.

(h) “The Procuring Entity’s country” is the Philippines.

(i) “The Supplier” means the individual contractor, manufacturer

distributor, or firm supplying/manufacturing the Goods and Services
under this Contract and named in the SCC.

(j) The “Funding Source” means the organization named in the SCC.

(k) “The Project Site,” where applicable, means the place or places named
in the SCC.

(l) “Day” means calendar day.

(m) The “Effective Date” of the contract will be the date of signing the
contract, however the Supplier shall commence performance of its
obligations only upon receipt of the Notice to Proceed and copy of the
approved contract.

(n) “Verified Report” refers to the report submitted by the Implementing

Unit to the HoPE setting forth its findings as to the existence of

45
 grounds or causes for termination and explicitly stating its
recommendation for the issuance of a Notice to Terminate.

2. Corrupt, Fraudulent, Collusive, and Coercive Practices

2.1. Unless otherwise provided in the SCC, CEZA as well as the bidders,
contractors, or suppliers shall observe the highest standard of ethics during the
procurement and execution of this Contract. In pursuance of this policy, the
Procuring Entity:

(a) defines, for the purposes of this provision, the terms set forth below as
follows:

(i) "corrupt practice" means behavior on the part of officials in the

public or private sectors by which they improperly and
unlawfully enrich themselves, others, or induce others to do so,
by misusing the position in which they are placed, and it
includes the offering, giving, receiving, or soliciting of
anything of value to influence the action of any such official in
the procurement process or in contract execution; entering, on
behalf of the Government, into any contract or transaction
manifestly and grossly disadvantageous to the same, whether or
not the public officer profited or will profit thereby, and similar
acts as provided in Republic Act 3019.

(ii) "fraudulent practice" means a misrepresentation of facts in

order to influence a procurement process or the execution of a
contract to the detriment of the Procuring Entity, and includes
collusive practices among Bidders (prior to or after bid
submission) designed to establish bid prices at artificial, non-
competitive levels and to deprive CEZA of the benefits of free
and open competition.

(iii) “collusive practices” means a scheme or arrangement between

two or more Bidders, with or without the knowledge of the
Procuring Entity, designed to establish bid prices at artificial,
non-competitive levels.

(iv) “coercive practices” means harming or threatening to harm,

directly or indirectly, persons, or their property to influence
their participation in a procurement process, or affect the
execution of a contract;

(v) “obstructive practice” is

(aa) deliberately destroying, falsifying, altering or

concealing of evidence material to an administrative
proceedings or investigation or making false statements
to investigators in order to materially impede an
administrative proceedings or investigation of CEZA or
any foreign government/foreign or international

46
 financing institution into allegations of a corrupt,
fraudulent, coercive or collusive practice; and/or
threatening, harassing or intimidating any party to
prevent it from disclosing its knowledge of matters
relevant to the administrative proceedings or
investigation or from pursuing such proceedings or
investigation; or

(bb) acts intended to materially impede the exercise of the

inspection and audit rights of CEZA or any foreign
government/foreign or international financing
institution herein.

(b) will reject a proposal for award if it determines that the Bidder
recommended for award has engaged in any of the practices mentioned
in this Clause for purposes of competing for the contract.

2.2. Further the Funding Source, Borrower or Procuring Entity, as appropriate, will
seek to impose the maximum civil, administrative and/or criminal penalties
available under the applicable law on individuals and organizations deemed to
be involved with any of the practices mentioned in GCC Clause 2.1(a).

3. Inspection and Audit by the Funding Source

The Supplier shall permit the Funding Source to inspect the Supplier’s accounts and
records relating to the performance of the Supplier and to have them audited by
auditors appointed by the Funding Source, if so required by the Funding Source.

4. Governing Law and Language

4.1. This Contract shall be interpreted in accordance with the laws of the Republic
of the Philippines.

4.2. This Contract has been executed in the English language, which shall be the
binding and controlling language for all matters relating to the meaning or
interpretation of this Contract. All correspondence and other documents
pertaining to this Contract exchanged by the parties shall be written in
English.

5. Notices
5.1. Any notice, request, or consent required or permitted to be given or made
pursuant to this Contract shall be in writing. Any such notice, request, or
consent shall be deemed to have been given or made when received by the
concerned party, either in person or through an authorized representative of
the Party to whom the communication is addressed, or when sent by registered
mail, telex, telegram, or facsimile to such Party at the address specified in the
SCC, which shall be effective when delivered and duly received or on the
notice’s effective date, whichever is later.

47
 5.2. A Party may change its address for notice hereunder by giving the other Party
notice of such change pursuant to the provisions listed in the SCC for GCC
Clause 5.1.

6. Scope of Contract
6.1. The Goods and Related Services to be provided shall be as specified in
Section VI. Schedule of Requirements.

6.2. This Contract shall include all such items, although not specifically
mentioned, that can be reasonably inferred as being required for its completion
as if such items were expressly mentioned herein. Any additional
requirements for the completion of this Contract shall be provided in the SCC.

7. Subcontracting
7.1. Subcontracting of any portion of the Goods, if allowed in the BDS, does not
relieve the Supplier of any liability or obligation under this Contract. The
Supplier will be responsible for the acts, defaults, and negligence of any
subcontractor, its agents, servants or workmen as fully as if these were the
Supplier’s own acts, defaults, or negligence, or those of its agents, servants or
workmen.

7.2. If subcontracting is allowed, the Supplier may identify its subcontractor during
contract implementation. Subcontractors disclosed and identified during the
bidding may be changed during the implementation of this Contract. In either
case, subcontractors must submit the documentary requirements under ITB
Clause 12 and comply with the eligibility criteria specified in the BDS. In the
event that any subcontractor is found by CEZA to be ineligible, the
subcontracting of such portion of the Goods shall be disallowed.

8. Procuring Entity’s Responsibilities

8.1. Whenever the performance of the obligations in this Contract requires that the
Supplier obtain permits, approvals, import, and other licenses from local
public authorities, CEZA shall, if so needed by the Supplier, make its best
effort to assist the Supplier in complying with such requirements in a timely
and expeditious manner.

8.2. CEZA shall pay all costs involved in the performance of its responsibilities in
accordance with GCC Clause 6.

9. Prices
9.1. For the given scope of work in this Contract as awarded, all bid prices are
considered fixed prices, and therefore not subject to price escalation during
contract implementation, except under extraordinary circumstances and upon
prior approval of the GPPB in accordance with Section 61 of R.A. 9184 and
its IRR or except as provided in this Clause.

48
 9.2. Prices charged by the Supplier for Goods delivered and/or services performed
under this Contract shall not vary from the prices quoted by the Supplier in its
bid, with the exception of any change in price resulting from a Change Order
issued in accordance with GCC Clause 29.

10. Payment
10.1. Payments shall be made only upon a certification by the HoPE to the effect
that the Goods have been rendered or delivered in accordance with the terms
of this Contract and have been duly inspected and accepted. Except with the
prior approval of the President no payment shall be made for services not yet
rendered or for supplies and materials not yet delivered under this Contract.
Ten percent (10%) of the amount of each payment shall be retained by CEZA
to cover the Supplier’s warranty obligations under this Contract as described
in GCC Clause 17.

10.2. The Supplier’s request(s) for payment shall be made to CEZA in writing,
accompanied by an invoice describing, as appropriate, the Goods delivered
and/or Services performed, and by documents submitted pursuant to the SCC
provision for GCC Clause 6.2, and upon fulfillment of other obligations
stipulated in this Contract.

10.3. Pursuant to GCC Clause 10.2, payments shall be made promptly by the
Procuring Entity, but in no case later than sixty (60) days after submission of
an invoice or claim by the Supplier. Payments shall be in accordance with the
schedule stated in the SCC.

10.4. Unless otherwise provided in the SCC, the currency in which payment is
made to the Supplier under this Contract shall be in Philippine Pesos.

10.5. Unless otherwise provided in the SCC, payments using Letter of Credit (LC),
in accordance with the Guidelines issued by the GPPB, is allowed. For this
purpose, the amount of provisional sum is indicated in the SCC. All charges
for the opening of the LC and/or incidental expenses thereto shall be for the
account of the Supplier.

11. Advance Payment and Terms of Payment

11.1. Advance payment shall be made only after prior approval of the President, and
shall not exceed fifteen percent (15%) of the Contract amount, unless
otherwise directed by the President or in cases allowed under Annex “D” of
RA 9184.

11.2. All progress payments shall first be charged against the advance payment until
the latter has been fully exhausted.

11.3. For Goods supplied from abroad, unless otherwise indicated in the SCC, the
terms of payment shall be as follows:
(a) On Contract Signature: Fifteen Percent (15%) of the Contract Price
shall be paid within sixty (60) days from signing of the Contract and
upon submission of a claim and a bank guarantee for the equivalent

49
 amount valid until the Goods are delivered and in the form provided in
Section VIII. Bidding Forms.

(b) On Delivery: Sixty-five percent (65%) of the Contract Price shall be

paid to the Supplier within sixty (60) days after the date of receipt of
the Goods and upon submission of the documents (i) through (vi)
specified in the SCC provision on Delivery and Documents.

(c) On Acceptance: The remaining twenty percent (20%) of the Contract

Price shall be paid to the Supplier within sixty (60) days after the date
of submission of the acceptance and inspection certificate for the
respective delivery issued by the Procuring Entity’s authorized
representative. In the event that no inspection or acceptance certificate
is issued by the Procuring Entity’s authorized representative within
forty five (45) days of the date shown on the delivery receipt, the
Supplier shall have the right to claim payment of the remaining twenty
percent (20%) subject to the Procuring Entity’s own verification of the
reason(s) for the failure to issue documents (vii) and (viii) as described
in the SCC provision on Delivery and Documents.

12. Taxes and Duties

The Supplier, whether local or foreign, shall be entirely responsible for all the
necessary taxes, stamp duties, license fees, and other such levies imposed for the
completion of this Contract.

13. Performance Security

13.1. Within ten (10) calendar days from receipt of the Notice of Award from
CEZA but in no case later than the signing of the contract by both parties, the
successful Bidder shall furnish the performance security in any the forms
prescribed in the ITB Clause 33.2.

13.2. The performance security posted in favor of CEZA shall be forfeited in the
event it is established that the winning bidder is in default in any of its
obligations under the contract.

13.3. The performance security shall remain valid until issuance by CEZA of the
Certificate of Final Acceptance.

13.4. The performance security may be released by CEZA and returned to the
Supplier after the issuance of the Certificate of Final Acceptance subject to the
following conditions:

(a) There are no pending claims against the Supplier or the surety
company filed by the Procuring Entity;

(b) The Supplier has no pending claims for labor and materials filed
against it; and

50
 (c) Other terms specified in the SCC.

13.5. In case of a reduction of the contract value, CEZA shall allow a proportional
reduction in the original performance security, provided that any such
reduction is more than ten percent (10%) and that the aggregate of such
reductions is not more than fifty percent (50%) of the original performance
security.

14. Use of Contract Documents and Information

14.1. The Supplier shall not, except for purposes of performing the obligations in
this Contract, without the Procuring Entity’s prior written consent, disclose
this Contract, or any provision thereof, or any specification, plan, drawing,
pattern, sample, or information furnished by or on behalf of the Procuring
Entity. Any such disclosure shall be made in confidence and shall extend only
as far as may be necessary for purposes of such performance.

14.2. Any document, other than this Contract itself, enumerated in GCC Clause
14.1 shall remain the property of CEZA and shall be returned (all copies) to
CEZA on completion of the Supplier’s performance under this Contract if so
required by the Procuring Entity.

15. Standards
The Goods provided under this Contract shall conform to the standards mentioned in
the Section VII. Technical Specifications; and, when no applicable standard is
mentioned, to the authoritative standards appropriate to the Goods’ country of origin.
Such standards shall be the latest issued by the institution concerned.

16. Inspection and Tests

16.1. CEZA or its representative shall have the right to inspect and/or to test the
Goods to confirm their conformity to the Contract specifications at no extra
cost to the Procuring Entity. The SCC and Section VII. Technical
Specifications shall specify what inspections and/or tests CEZA requires and
where they are to be conducted. CEZA shall notify the Supplier in writing, in
a timely manner, of the identity of any representatives retained for these
purposes.

16.2. If applicable, the inspections and tests may be conducted on the premises of
the Supplier or its subcontractor(s), at point of delivery, and/or at the goods’
final destination. If conducted on the premises of the Supplier or its
subcontractor(s), all reasonable facilities and assistance, including access to
drawings and production data, shall be furnished to the inspectors at no charge
to the Procuring Entity. The Supplier shall provide CEZA with results of such
inspections and tests.

16.3. CEZA or its designated representative shall be entitled to attend the tests
and/or inspections referred to in this Clause provided that CEZA shall bear all
of its own costs and expenses incurred in connection with such attendance
including, but not limited to, all traveling and board and lodging expenses.

51
 16.4. CEZA may reject any Goods or any part thereof that fail to pass any test
and/or inspection or do not conform to the specifications. The Supplier shall
either rectify or replace such rejected Goods or parts thereof or make
alterations necessary to meet the specifications at no cost to the Procuring
Entity, and shall repeat the test and/or inspection, at no cost to the Procuring
Entity, upon giving a notice pursuant to GCC Clause 5.

16.5. The Supplier agrees that neither the execution of a test and/or inspection of the
Goods or any part thereof, nor the attendance by CEZA or its representative,
shall release the Supplier from any warranties or other obligations under this
Contract.

17. Warranty
17.1. The Supplier warrants that the Goods supplied under the Contract are new,
unused, of the most recent or current models, and that they incorporate all
recent improvements in design and materials, except when the technical
specifications required by CEZA provides otherwise.

17.2. The Supplier further warrants that all Goods supplied under this Contract shall
have no defect, arising from design, materials, or workmanship or from any
act or omission of the Supplier that may develop under normal use of the
supplied Goods in the conditions prevailing in the country of final destination.

17.3. In order to assure that manufacturing defects shall be corrected by the

Supplier, a warranty shall be required from the Supplier for a minimum period
specified in the SCC. The obligation for the warranty shall be covered by, at
the Supplier’s option, either retention money in an amount equivalent to at
least one percent (1%) of every progress payment, or a special bank guarantee
equivalent to at least one percent (1%) of the total Contract Price or other such
amount if so specified in the SCC. The said amounts shall only be released
after the lapse of the warranty period specified in the SCC; provided,
however, that the Supplies delivered are free from patent and latent defects
and all the conditions imposed under this Contract have been fully met.

17.4. CEZA shall promptly notify the Supplier in writing of any claims arising
under this warranty. Upon receipt of such notice, the Supplier shall, within the
period specified in the SCC and with all reasonable speed, repair or replace
the defective Goods or parts thereof, without cost to the Procuring Entity.

17.5. If the Supplier, having been notified, fails to remedy the defect(s) within the
period specified in GCC Clause 17.4, CEZA may proceed to take such
remedial action as may be necessary, at the Supplier’s risk and expense and
without prejudice to any other rights which CEZA may have against the
Supplier under the Contract and under the applicable law.

18. Delays in the Supplier’s Performance

18.1. Delivery of the Goods and/or performance of Services shall be made by the
Supplier in accordance with the time schedule prescribed by CEZA in Section
VI. Schedule of Requirements.

52
 18.2. If at any time during the performance of this Contract, the Supplier or its
Subcontractor(s) should encounter conditions impeding timely delivery of the
Goods and/or performance of Services, the Supplier shall promptly notify
CEZA in writing of the fact of the delay, its likely duration and its cause(s).
As soon as practicable after receipt of the Supplier’s notice, and upon causes
provided for under GCC Clause 22, CEZA shall evaluate the situation and
may extend the Supplier’s time for performance, in which case the extension
shall be ratified by the parties by amendment of Contract.

18.3. Except as provided under GCC Clause 22, a delay by the Supplier in the
performance of its obligations shall render the Supplier liable to the imposition
of liquidated damages pursuant to GCC Clause 19, unless an extension of
time is agreed upon pursuant to GCC Clause 29 without the application of
liquidated damages.

19. Liquidated Damages

Subject to GCC Clauses 18 and 22, if the Supplier fails to satisfactorily deliver any or
all of the Goods and/or to perform the Services within the period(s) specified in this
Contract inclusive of duly granted time extensions if any, CEZA shall, without
prejudice to its other remedies under this Contract and under the applicable law,
deduct from the Contract Price, as liquidated damages, the applicable rate of one tenth
(1/10) of one (1) percent of the cost of the unperformed portion for every day of delay
until actual delivery or performance. The maximum deduction shall be ten percent
(10%) of the amount of contract. Once the maximum is reached, CEZA may rescind
or terminate the Contract pursuant to GCC Clause 23, without prejudice to other
courses of action and remedies open to it.

20. Settlement of Disputes

20.1. If any dispute or difference of any kind whatsoever shall arise between CEZA
and the Supplier in connection with or arising out of this Contract, the parties
shall make every effort to resolve amicably such dispute or difference by
mutual consultation.

20.2. If after thirty (30) days, the parties have failed to resolve their dispute or
difference by such mutual consultation, then either CEZA or the Supplier may
give notice to the other party of its intention to commence arbitration, as
hereinafter provided, as to the matter in dispute, and no arbitration in respect
of this matter may be commenced unless such notice is given.

20.3. Any dispute or difference in respect of which a notice of intention to

commence arbitration has been given in accordance with this Clause shall be
settled by arbitration. Arbitration may be commenced prior to or after
delivery of the Goods under this Contract.

20.4. In the case of a dispute between CEZA and the Supplier, the dispute shall be
resolved in accordance with Republic Act 9285 (“R.A. 9285”), otherwise
known as the “Alternative Dispute Resolution Act of 2004.”

53
 20.5. Notwithstanding any reference to arbitration herein, the parties shall continue
to perform their respective obligations under the Contract unless they
otherwise agree; and CEZA shall pay the Supplier any monies due the
Supplier.

21. Liability of the Supplier

21.1. The Supplier’s liability under this Contract shall be as provided by the laws of
the Republic of the Philippines, subject to additional provisions, if any, set
forth in the SCC.

21.2. Except in cases of criminal negligence or willful misconduct, and in the case
of infringement of patent rights, if applicable, the aggregate liability of the
Supplier to CEZA shall not exceed the total Contract Price, provided that this
limitation shall not apply to the cost of repairing or replacing defective
equipment.

22. Force Majeure

22.1. The Supplier shall not be liable for forfeiture of its performance security,
liquidated damages, or termination for default if and to the extent that the
Supplier’s delay in performance or other failure to perform its obligations
under the Contract is the result of a force majeure.

22.2. For purposes of this Contract the terms “force majeure” and “fortuitous event”
may be used interchangeably. In this regard, a fortuitous event or force
majeure shall be interpreted to mean an event which the Supplier could not
have foreseen, or which though foreseen, was inevitable. It shall not include
ordinary unfavorable weather conditions; and any other cause the effects of
which could have been avoided with the exercise of reasonable diligence by
the Supplier. Such events may include, but not limited to, acts of CEZA in its
sovereign capacity, wars or revolutions, fires, floods, epidemics, quarantine
restrictions, and freight embargoes.

22.3. If a force majeure situation arises, the Supplier shall promptly notify CEZA in
writing of such condition and the cause thereof. Unless otherwise directed by
CEZA in writing, the Supplier shall continue to perform its obligations under
the Contract as far as is reasonably practical, and shall seek all reasonable
alternative means for performance not prevented by the force majeure.

23. Termination for Default

23.1. CEZA shall terminate this Contract for default when any of the following
conditions attends its implementation:

(a) Outside of force majeure, the Supplier fails to deliver or perform any
or all of the Goods within the period(s) specified in the contract, or
within any extension thereof granted by CEZA pursuant to a request
made by the Supplier prior to the delay, and such failure amounts to at
least ten percent (10%) of the contact price;

54
 (b) As a result of force majeure, the Supplier is unable to deliver or
perform any or all of the Goods, amounting to at least ten percent
(10%) of the contract price, for a period of not less than sixty (60)
calendar days after receipt of the notice from CEZA stating that the
circumstance of force majeure is deemed to have ceased; or

(c) The Supplier fails to perform any other obligation under the Contract.

23.2. In the event CEZA terminates this Contract in whole or in part, for any of the
reasons provided under GCC Clauses 23 to 26, CEZA may procure, upon
such terms and in such manner as it deems appropriate, Goods or Services
similar to those undelivered, and the Supplier shall be liable to CEZA for any
excess costs for such similar Goods or Services. However, the Supplier shall
continue performance of this Contract to the extent not terminated.

23.3. In case the delay in the delivery of the Goods and/or performance of the
Services exceeds a time duration equivalent to ten percent (10%) of the
specified contract time plus any time extension duly granted to the Supplier,
CEZA may terminate this Contract, forfeit the Supplier's performance security
and award the same to a qualified Supplier.

24. Termination for Insolvency

CEZA shall terminate this Contract if the Supplier is declared bankrupt or insolvent as
determined with finality by a court of competent jurisdiction. In this event,
termination will be without compensation to the Supplier, provided that such
termination will not prejudice or affect any right of action or remedy which has
accrued or will accrue thereafter to CEZA and/or the Supplier.

25. Termination for Convenience

25.1. CEZA may terminate this Contract, in whole or in part, at any time for its
convenience. The HoPE may terminate a contract for the convenience of the
Government if he has determined the existence of conditions that make Project
Implementation economically, financially or technically impractical and/or
unnecessary, such as, but not limited to, fortuitous event(s) or changes in law
and national government policies.

25.2. The Goods that have been delivered and/or performed or are ready for delivery
or performance within thirty (30) calendar days after the Supplier’s receipt of
Notice to Terminate shall be accepted by CEZA at the contract terms and
prices. For Goods not yet performed and/or ready for delivery, CEZA may
elect:

(a) to have any portion delivered and/or performed and paid at the contract
terms and prices; and/or

(b) to cancel the remainder and pay to the Supplier an agreed amount for
partially completed and/or performed goods and for materials and parts
previously procured by the Supplier.

55
 25.3. If the Supplier suffers loss in its initial performance of the terminated contract,
such as purchase of raw materials for goods specially manufactured for CEZA
which cannot be sold in open market, it shall be allowed to recover partially
from this Contract, on a quantum meruit basis. Before recovery may be made,
the fact of loss must be established under oath by the Supplier to the
satisfaction of CEZA before recovery may be made.

26. Termination for Unlawful Acts

26.1. CEZA may terminate this Contract in case it is determined prima facie that the
Supplier has engaged, before or during the implementation of this Contract, in
unlawful deeds and behaviors relative to contract acquisition and
implementation. Unlawful acts include, but are not limited to, the following:

(a) Corrupt, fraudulent, and coercive practices as defined in ITB Clause

3.1(a);

(b) Drawing up or using forged documents;

(c) Using adulterated materials, means or methods, or engaging in

production contrary to rules of science or the trade; and

(d) Any other act analogous to the foregoing.

27. Procedures for Termination of Contracts

27.1. The following provisions shall govern the procedures for termination of this
Contract:

(a) Upon receipt of a written report of acts or causes which may constitute
ground(s) for termination as aforementioned, or upon its own initiative,
the Implementing Unit shall, within a period of seven (7) calendar
days, verify the existence of such ground(s) and cause the execution of
a Verified Report, with all relevant evidence attached;

(b) Upon recommendation by the Implementing Unit, the HoPE shall

terminate this Contract only by a written notice to the Supplier
conveying the termination of this Contract. The notice shall state:

(i) that this Contract is being terminated for any of the ground(s)
afore-mentioned, and a statement of the acts that constitute the
ground(s) constituting the same;

(ii) the extent of termination, whether in whole or in part;

(iii) an instruction to the Supplier to show cause as to why this

Contract should not be terminated; and

(iv) special instructions of the Procuring Entity, if any.

(c) The Notice to Terminate shall be accompanied by a copy of the

Verified Report;

56
 (d) Within a period of seven (7) calendar days from receipt of the Notice
of Termination, the Supplier shall submit to the HoPE a verified
position paper stating why this Contract should not be terminated. If
the Supplier fails to show cause after the lapse of the seven (7) day
period, either by inaction or by default, the HoPE shall issue an order
terminating this Contract;

(e) CEZA may, at any time before receipt of the Supplier’s verified
position paper described in item (d) above withdraw the Notice to
Terminate if it is determined that certain items or works subject of the
notice had been completed, delivered, or performed before the
Supplier’s receipt of the notice;

(f) Within a non-extendible period of ten (10) calendar days from receipt
of the verified position paper, the HoPE shall decide whether or not to
terminate this Contract. It shall serve a written notice to the Supplier
of its decision and, unless otherwise provided, this Contract is deemed
terminated from receipt of the Supplier of the notice of decision. The
termination shall only be based on the ground(s) stated in the Notice to
Terminate;

(g) The HoPE may create a Contract Termination Review Committee

(CTRC) to assist him in the discharge of this function. All decisions
recommended by the CTRC shall be subject to the approval of the
HoPE; and

(h) The Supplier must serve a written notice to CEZA of its intention to
terminate the contract at least thirty (30) calendar days before its
intended termination. The Contract is deemed terminated if it is not
resumed in thirty (30) calendar days after the receipt of such notice by
the Procuring Entity.

28. Assignment of Rights

The Supplier shall not assign his rights or obligations under this Contract, in whole or
in part, except with the Procuring Entity’s prior written consent.

29. Contract Amendment

Subject to applicable laws, no variation in or modification of the terms of this
Contract shall be made except by written amendment signed by the parties.

30. Application
These General Conditions shall apply to the extent that they are not superseded by
provisions of other parts of this Contract.

57
 Section V. Special Conditions of Contract
Notes on the Special Conditions of Contract
Similar to the BDS, the clauses in this Section are intended to assist CEZA in providing
contract-specific information in relation to corresponding clauses in the GCC.

The provisions of this Section complement the GCC, specifying contractual requirements
linked to the special circumstances of the Procuring Entity, the Procuring Entity’s country,
the sector, and the Goods purchased. In preparing this Section, the following aspects
should be checked:

(a) Information that complements provisions of Section IV must be incorporated.

(b) Amendments and/or supplements to provisions of Section IV, as necessitated by

the circumstances of the specific purchase, must also be incorporated.

However, no special condition which defeats or negates the general intent and purpose of
the provisions of Section IV should be incorporated herein.

For foreign-assisted projects, the Special Conditions of Contract to be used is provided in

Section IX-Foreign-Assisted Projects.

58
 Special Conditions of Contract
GCC Clause
1.1(g) The Procuring Entity is [insert name of Procuring Entity].
1.1(i) The Supplier is [to be inserted at the time of contract award].
1.1(j) The Funding Source is

the Government of the Philippines (GOP) through [indicate source of

funding and year] in the amount of [insert amount of funds].

NOTE: In the case of National Government Agencies, the General

Appropriations Act and/or continuing appropriations; in the case of
Government-Owned and/or –Controlled Corporations, Government
Financial Institutions, and State Universities and Colleges, the
Corporate Budget for the contract approved by the governing Boards;
in the case of Local Government Units, the Budget for the contract
approved by the respective Sanggunian.

1.1(k) The Project Site is [insert full name and address of the delivery site].
For multiple sites state “The Project sites are defined in Section VI.
Schedule of Requirements”]
2.1 No further instructions.
5.1 The Procuring Entity’s address for Notices is: [Insert address
including, name of contact, fax and telephone number]

The Supplier’s address for Notices is: [Insert address including, name
of contact, fax and telephone number]
6.2 List here any additional requirements for the completion of this
Contract. The following requirements and the corresponding
provisions may be deleted, amended, or retained depending on its
applicability to this Contract:

Delivery and Documents –

For purposes of the Contract, “EXW,” “FOB,” “FCA,” “CIF,” “CIP,”

“DDP” and other trade terms used to describe the obligations of the
parties shall have the meanings assigned to them by the current
edition of INCOTERMS published by the International Chamber of
Commerce, Paris. The Delivery terms of this Contract shall be as
follows:

For Goods Supplied from Abroad, state “The delivery terms

applicable to the Contract are DDP delivered [insert place of
destination]. In accordance with INCOTERMS.”
For Goods Supplied from Within the Philippines, state “The delivery
terms applicable to this Contract are delivered [insert place of
destination]. Risk and title will pass from the Supplier to CEZA upon
receipt and final acceptance of the Goods at their final destination.”

Delivery of the Goods shall be made by the Supplier in accordance

with the terms specified in Section VI. Schedule of Requirements.
The details of shipping and/or other documents to be furnished by the
Supplier are as follows:

For Goods supplied from within the Philippines:

Upon delivery of the Goods to the Project Site, the Supplier shall
notify CEZA and present the following documents to the Procuring
Entity:

(i) Original and four copies of the Supplier’s invoice showing

Goods’ description, quantity, unit price, and total amount;
(ii) Original and four copies delivery receipt/note, railway receipt,
or truck receipt;
(iii) Original Supplier’s factory inspection report;
(iv) Original and four copies of the Manufacturer’s and/or
Supplier’s warranty certificate;
(v) Original and four copies of the certificate of origin (for
imported Goods);
(vi) Delivery receipt detailing number and description of items
received signed by the authorized receiving personnel;
(vii) Certificate of Acceptance/Inspection Report signed by the
Procuring Entity’s representative at the Project Site; and
(viii) Four copies of the Invoice Receipt for Property signed by the
Procuring Entity’s representative at the Project Site.

For Goods supplied from abroad:

Upon shipment, the Supplier shall notify CEZA and the insurance
company by cable the full details of the shipment, including Contract
Number, description of the Goods, quantity, vessel, bill of lading
number and date, port of loading, date of shipment, port of discharge
etc. Upon delivery to the Project Site, the Supplier shall notify CEZA
and present the following documents as applicable with the
documentary requirements of any letter of credit issued taking
precedence:

(i) Original and four copies of the Supplier’s invoice showing

Goods’ description, quantity, unit price, and total amount;
(ii) Original and four copies of the negotiable, clean shipped on
 board bill of lading marked “freight pre-paid” and five copies
of the non-negotiable bill of lading ;
(iii) Original Supplier’s factory inspection report;
(iv) Original and four copies of the Manufacturer’s and/or
Supplier’s warranty certificate;
(v) Original and four copies of the certificate of origin (for
imported Goods);
(vi) Delivery receipt detailing number and description of items
received signed by the Procuring Entity’s representative at the
Project Site;
(vii) Certificate of Acceptance/Inspection Report signed by the
Procuring Entity’s representative at the Project Site; and
(viii) Four copies of the Invoice Receipt for Property signed by the
Procuring Entity’s representative at the Project Site.

For purposes of this Clause the Procuring Entity’s Representative at

the Project Site is [insert name(s)].

Incidental Services –

The Supplier is required to provide all of the following services,

including additional services, if any, specified in Section VI. Schedule
of Requirements:

Select appropriate requirements and delete the rest.

(a) performance or supervision of on-site assembly and/or start-up

of the supplied Goods;
(b) furnishing of tools required for assembly and/or maintenance
of the supplied Goods;
(c) furnishing of a detailed operations and maintenance manual
for each appropriate unit of the supplied Goods;
(d) performance or supervision or maintenance and/or repair of
the supplied Goods, for a period of time agreed by the parties,
provided that this service shall not relieve the Supplier of any
warranty obligations under this Contract; and
(e) training of the Procuring Entity’s personnel, at the Supplier’s
plant and/or on-site, in assembly, start-up, operation,
maintenance, and/or repair of the supplied Goods.

The Contract price for the Goods shall include the prices charged by
the Supplier for incidental services and shall not exceed the prevailing
rates charged to other parties by the Supplier for similar services.

Spare Parts –
The Supplier is required to provide all of the following materials,
notifications, and information pertaining to spare parts manufactured
or distributed by the Supplier:

Select appropriate requirements and delete the rest.

(a) such spare parts as CEZA may elect to purchase from the
Supplier, provided that this election shall not relieve the
Supplier of any warranty obligations under this Contract; and
(b) in the event of termination of production of the spare parts:

i. advance notification to CEZA of the pending

termination, in sufficient time to permit CEZA to
procure needed requirements; and
ii. following such termination, furnishing at no cost to the
Procuring Entity, the blueprints, drawings, and
specifications of the spare parts, if requested.

The spare parts required are listed in Section VI. Schedule of

Requirements and the cost thereof are included in the Contract Price

The Supplier shall carry sufficient inventories to assure ex-stock

supply of consumable spares for the Goods for a period of [insert
here the time period specified. If not used insert time period of three
times the warranty period].

Other spare parts and components shall be supplied as promptly as

possible, but in any case within [insert appropriate time period]
months of placing the order.

Packaging –

The Supplier shall provide such packaging of the Goods as is required

to prevent their damage or deterioration during transit to their final
destination, as indicated in this Contract. The packaging shall be
sufficient to withstand, without limitation, rough handling during
transit and exposure to extreme temperatures, salt and precipitation
during transit, and open storage. Packaging case size and weights
shall take into consideration, where appropriate, the remoteness of the
GOODS’ final destination and the absence of heavy handling
facilities at all points in transit.

The packaging, marking, and documentation within and outside the

packages shall comply strictly with such special requirements as shall
be expressly provided for in the Contract, including additional
requirements, if any, specified below, and in any subsequent
instructions ordered by the Procuring Entity.
The outer packaging must be clearly marked on at least four (4) sides
as follows:
Name of the Procuring Entity
Name of the Supplier
Contract Description
Final Destination
Gross weight
Any special lifting instructions
Any special handling instructions
Any relevant HAZCHEM classifications

A packaging list identifying the contents and quantities of the package

is to be placed on an accessible point of the outer packaging if
practical. If not practical the packaging list is to be placed inside the
outer packaging but outside the secondary packaging.

Insurance –

The Goods supplied under this Contract shall be fully insured by the
Supplier in a freely convertible currency against loss or damage
incidental to manufacture or acquisition, transportation, storage, and
delivery. The Goods remain at the risk and title of the Supplier until
their final acceptance by the Procuring Entity.

Transportation –

Where the Supplier is required under Contract to deliver the Goods

CIF, CIP or DDP, transport of the Goods to the port of destination or
such other named place of destination in the Philippines, as shall be
specified in this Contract, shall be arranged and paid for by the
Supplier, and the cost thereof shall be included in the Contract Price.

Where the Supplier is required under this Contract to transport the

Goods to a specified place of destination within the Philippines,
defined as the Project Site, transport to such place of destination in the
Philippines, including insurance and storage, as shall be specified in
this Contract, shall be arranged by the Supplier, and related costs shall
be included in the Contract Price.

Where the Supplier is required under Contract to deliver the Goods

CIF, CIP or DDP, Goods are to be transported on carriers of
Philippine registry. In the event that no carrier of Philippine registry is
available, Goods may be shipped by a carrier which is not of
Philippine registry provided that the Supplier obtains and presents to
CEZA certification to this effect from the nearest Philippine consulate
to the port of dispatch. In the event that carriers of Philippine registry
 are available but their schedule delays the Supplier in its performance
of this Contract the period from when the Goods were first ready for
shipment and the actual date of shipment the period of delay will be
considered force majeure in accordance with GCC Clause 22.

CEZA accepts no liability for the damage of Goods during transit

other than those prescribed by INCOTERMS for DDP Deliveries. In
the case of Goods supplied from within the Philippines or supplied by
domestic Suppliers risk and title will not be deemed to have passed to
CEZA until their receipt and final acceptance at the final destination.

Patent Rights –

The Supplier shall indemnify CEZA against all third-party claims of

infringement of patent, trademark, or industrial design rights arising
from use of the Goods or any part thereof.
10.4 Maintain the GCC Clause and state here “Not applicable” or if
procurement involves a foreign-denominated bid, state "Payment
shall be made in [insert currency].
10.5 State “Payment using LC is not allowed.”

or

If payment using LC is allowed, state “The amount of provisional sum

is ____________ Pesos (PhP ____________).” [Note: The
provisional sum shall not exceed 10% of the ABC, and shall form part
of the ABC].
11.3 State “Maintain the GCC Clause.”

or

State “The terms of payment shall be as follows: _____________”

13.4(c) Specify additional conditions, if any, that must be met prior to the
release of the performance security, otherwise, state “No further
instructions”.
16.1 The inspections and tests that will be conducted are: [Insert the
applicable inspections and tests, if none, state “None”].
17.3 If the Goods pertain to Expendable Supplies: Three (3) months after
acceptance by CEZA of the delivered Goods or after the Goods are
consumed, whichever is earlier.

If the Goods pertain to Non-expendable Supplies: One (1) year after

acceptance by CEZA of the delivered Goods.
17.4 The period for correction of defects in the warranty period is [insert
number of days].
21.1 State here “No additional provision.” or, if the Supplier is a joint
venture, “All partners to the joint venture shall be jointly and
severally liable to the Procuring Entity.”
 Section VI. Schedule of Requirements
The delivery schedule expressed as weeks/months stipulates hereafter a delivery date which
is the date of delivery to the project site.

Item Description Quantity Total Delivered,

Number Weeks/Months
1 Rubber fender 7 7 Within Sixty (60)
Calendar Days upon
issuance of Contract
and Notice to Proceed

66
 Section VII. Technical Specifications

Notes for Preparing the Technical Specifications

A set of precise and clear specifications is a prerequisite for Bidders to respond realistically
and competitively to the requirements of CEZA without qualifying their bids. In the
context of Competitive Bidding, the specifications (e.g. production/delivery schedule,
manpower requirements, and after-sales service/parts) must be prepared to permit the
widest possible competition and, at the same time, present a clear statement of the required
standards of workmanship, materials, and performance of the goods and services to be
procured.. Only if this is done will the objectives of transparency, equity, efficiency,
fairness and economy in procurement be realized, responsiveness of bids be ensured, and
the subsequent task of bid evaluation and post-qualification facilitated. The specifications
should require that all items, materials and accessories to be included or incorporated in the
goods be new, unused, and of the most recent or current models, and that they include or
incorporate all recent improvements in design and materials unless otherwise provided in
the Contract.

Samples of specifications from previous similar procurements are useful in this respect.
The use of metric units is encouraged. Depending on the complexity of the goods and the
repetitiveness of the type of procurement, it may be advantageous to standardize the
General Technical Specifications and incorporate them in a separate subsection. The
General Technical Specifications should cover all classes of workmanship, materials, and
equipment commonly involved in manufacturing similar goods. Deletions or addenda
should then adapt the General Technical Specifications to the particular procurement.

Care must be taken in drafting specifications to ensure that they are not restrictive. In the
specification of standards for equipment, materials, and workmanship, recognized
Philippine and international standards should be used as much as possible. Where other
particular standards are used, whether national standards or other standards, the
specifications should state that equipment, materials, and workmanship that meet other
authoritative standards, and which ensure at least a substantially equal quality than the
standards mentioned, will also be acceptable. The following clause may be inserted in the
Special Conditions of Contract or the Technical Specifications.

Sample Clause: Equivalency of Standards and Codes

Wherever reference is made in the Technical Specifications to specific standards and codes
to be met by the goods and materials to be furnished or tested, the provisions of the latest
edition or revision of the relevant standards and codes shall apply, unless otherwise
expressly stated in the Contract. Where such standards and codes are national or relate to a
particular country or region, other authoritative standards that ensure substantial
equivalence to the standards and codes specified will be acceptable.

Reference to brand name and catalogue number should be avoided as far as possible;
where unavoidable they should always be followed by the words “or at least equivalent.”

67
References to brand names cannot be used when the Funding Source is the GOP.

Where appropriate, drawings, including site plans as required, may be furnished by CEZA
with the Bidding Documents. Similarly, the Supplier may be requested to provide
drawings or samples either with its Bid or for prior review by CEZA during contract
execution.

Bidders are also required, as part of the technical specifications, to complete their
statement of compliance demonstrating how the items comply with the specification.

68
 Technical Specifications
Item Specification Statement of Compliance

1 Seven (7) sets brand new rubber Bidders must state here either “Comply”
fenders or “Not Comply” against each of the
individual parameters of each
(See attached Drawing for the Specification stating the corresponding
specification) performance parameter of the equipment
offered. Statements of “Comply” or “Not
Comply” must be supported by evidence
in a Bidders Bid and cross-referenced to
that evidence. Evidence shall be in the
form of manufacturer’s un-amended sales
literature, unconditional statements of
specification and compliance issued by the
manufacturer, samples, independent test
data etc., as appropriate. A statement that
is not supported by evidence or is
subsequently found to be contradicted by
the evidence presented will render the Bid
under evaluation liable for rejection. A
statement either in the Bidders statement
of compliance or the supporting evidence
that is found to be false either during Bid
evaluation, post-qualification or the
execution of the Contract may be regarded
as fraudulent and render the Bidder or
supplier liable for prosecution subject to
the provisions of ITB Clause 3.1(a)(ii)
and/or GCC Clause 2.1(a)(ii).

69
 Section VIII. Bidding Forms

Notes on the Bidding Forms

The Bidder shall complete and submit with its Bid the Bid Form and Price Schedules
in accordance with ITB Clause 15 with the requirements of the Bidding Documents
and the format set out in this Section.

When requested in the BDS, the Bidder should provide the Bid Security, either in the
form included hereafter or in another form acceptable to the Entity, pursuant to ITB
Clause 18.1.

The Contract Agreement Form, when it is finalized at the time of contract award,
should incorporate any corrections or modifications to the accepted Bid resulting from
price corrections. The Price Schedule and Schedule of Requirements deemed to form
part of the contract should be modified accordingly.

The Performance Security Form and Bank Guarantee Form for Advance Payment
should not be completed by the Bidders at the time of their Bid preparation. Only the
successful Bidder will be required to provide performance security and bank guarantee
for advance payment in accordance with one of the forms indicated herein or in another
form acceptable to CEZA and pursuant to GCC Clause 13 and its corresponding SCC
provision.

The sworn affidavit must be completed by all Bidders in accordance with ITB Clause
4.2. Failure to do so and submit it with the bid shall result in the rejection of the bid
and the Bidder’s disqualification.

70
 Bid Form

Date:
Invitation to Bid3 No:

To: [name and address of Procuring Entity]

Gentlemen and/or Ladies:

Having examined the Bidding Documents including Bid Bulletin Numbers [insert
numbers], the receipt of which is hereby duly acknowledged, we, the undersigned, offer to
[supply/deliver/perform] [description of the Goods] in conformity with the said Bidding
Documents for the sum of [total Bid amount in words and figures] or such other sums as may
be ascertained in accordance with the Schedule of Prices attached herewith and made part of
this Bid.

We undertake, if our Bid is accepted, to deliver the goods in accordance with the
delivery schedule specified in the Schedule of Requirements.

If our Bid is accepted, we undertake to provide a performance security in the form,

amounts, and within the times specified in the Bidding Documents.

We agree to abide by this Bid for the Bid Validity Period specified in BDS provision
for ITB Clause 18.2 and it shall remain binding upon us and may be accepted at any time
before the expiration of that period.

Commissions or gratuities, if any, paid or to be paid by us to agents relating to this Bid,

and to contract execution if we are awarded the contract, are listed below: 4

Name and address Amount and Purpose of

of agent Currency Commission or gratuity

(if none, state “None”)

Until a formal Contract is prepared and executed, this Bid, together with your written
acceptance thereof and your Notice of Award, shall be binding upon us.

We understand that you are not bound to accept the Lowest Calculated Bid or any Bid
you may receive.

3 If ADB, JICA and WB funded projects, use IFB.

4 Applicable only if the Funding Source is the ADB, JICA or WB.

71
 We certify/confirm that we comply with the eligibility requirements as per ITB Clause
5 of the Bidding Documents.

We likewise certify/confirm that the undersigned, [for sole proprietorships, insert: as

the owner and sole proprietor or authorized representative of Name of Bidder, has the full
power and authority to participate, submit the bid, and to sign and execute the ensuing
contract, on the latter’s behalf for the Name of Project of the Name of the Procuring Entity]
[for partnerships, corporations, cooperatives, or joint ventures, insert: is granted full power
and authority by the Name of Bidder, to participate, submit the bid, and to sign and execute
the ensuing contract on the latter’s behalf for Name of Project of the Name of the Procuring
Entity].

We acknowledge that failure to sign each and every page of this Bid Form, including
the attached Schedule of Prices, shall be a ground for the rejection of our bid.

Dated this ________________ day of ________________ 20______.

[signature] [in the capacity of]

Duly authorized to sign Bid for and on behalf of ____________________________

72
 For Goods Offered From Abroad

Name of Bidder . Invitation to Bid5 Number __. Page of

.

1 2 3 4 5 6 7 8 9
Item Description Country Quantity Unit price CIF port of Total CIF or Unit Price Unit price Total Price
of origin entry (specify port) or CIP price per Delivered Duty Delivered Duty delivered DDP
CIP named place item Unpaid (DDU) Paid (DDP) (col 4 x 8)
(specify border point or (col. 4 x 5)
place of destination)

[signature] [in the capacity of]

Duly authorized to sign Bid for and on behalf of ____________________________

5 If ADB, JICA and WB funded projects, use IFB.

73
 For Goods Offered From Within the Philippines

Name of Bidder . Invitation to Bid6 Number . Page of .

1 2 3 4 5 6 7 8 9 10
Item Description Country Quantity Unit price EXW Transportation Sales and Cost of Total Price, Total Price
of origin per item and Insurance other taxes Incidental per unit delivered Final
and all other payable if Services, if (col 5+6+7+8) Destination
costs Contract is applicable, per (col 9) x (col 4)
incidental to awarded, per item
delivery, per item
item

[signature] [in the capacity of]

Duly authorized to sign Bid for and on behalf of ____________________________

6 If ADB, JICA and WB funded projects, use IFB.

74
 Contract Agreement Form

THIS AGREEMENT made the _____ day of __________ 20_____ between [name of
PROCURING ENTITY] of the Philippines (hereinafter called “the Entity”) of the one part and
[name of Supplier] of [city and country of Supplier] (hereinafter called “the Supplier”) of the
other part:

WHEREAS the Entity invited Bids for certain goods and ancillary services, viz.,
[brief description of goods and services] and has accepted a Bid by the Supplier for the
supply of those goods and services in the sum of [contract price in words and figures]
(hereinafter called “the Contract Price”).

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. In this Agreement words and expressions shall have the same meanings as are
respectively assigned to them in the Conditions of Contract referred to.

2. The following documents shall be deemed to form and be read and construed as part
of this Agreement, viz.:

(a) the Supplier’s Bid, including the Technical and Financial Proposals, and all
other documents/statements submitted (e.g. bidder’s response to clarifications
on the bid), including corrections to the bid resulting from the Procuring
Entity’s bid evaluation;
(b) the Schedule of Requirements;
(c) the Technical Specifications;
(d) the General Conditions of Contract;
(e) the Special Conditions of Contract;
(f) the Performance Security; and
(g) the Entity’s Notice of Award.

3. In consideration of the payments to be made by the Entity to the Supplier as

hereinafter mentioned, the Supplier hereby covenants with the Entity to provide the goods
and services and to remedy defects therein in conformity in all respects with the provisions of
the Contract

4. The Entity hereby covenants to pay the Supplier in consideration of the provision of
the goods and services and the remedying of defects therein, the Contract Price or such other
sum as may become payable under the provisions of the contract at the time and in the
manner prescribed by the contract.

IN WITNESS whereof the parties hereto have caused this Agreement to be executed
in accordance with the laws of the Republic of the Philippines on the day and year first above
written.

75
Signed, sealed, delivered by the (for the Entity)

Signed, sealed, delivered by the (for the Supplier).

76
 Omnibus Sworn Statement

REPUBLIC OF THE PHILIPPINES )

CITY/MUNICIPALITY OF ______ ) S.S.

AFFIDAVIT

I, [Name of Affiant], of legal age, [Civil Status], [Nationality], and residing at [Address
of Affiant], after having been duly sworn in accordance with law, do hereby depose and state
that:

1. Select one, delete the other:

If a sole proprietorship: I am the sole proprietor or authorized representative of

[Name of Bidder] with office address at [address of Bidder];

If a partnership, corporation, cooperative, or joint venture: I am the duly authorized

and designated representative of [Name of Bidder] with office address at [address of
Bidder];

2. Select one, delete the other:

If a sole proprietorship: As the owner and sole proprietor, or authorized

representative of [Name of Bidder], I have full power and authority to do, execute and
perform any and all acts necessary to participate, submit the bid, and to sign and
execute the ensuing contract for [Name of the Project] of the [Name of the Procuring
Entity], as shown in the attached duly notarized Special Power of Attorney;

If a partnership, corporation, cooperative, or joint venture: I am granted full power

and authority to do, execute and perform any and all acts necessary to participate,
submit the bid, and to sign and execute the ensuing contract for [Name of the Project]
of the [Name of the Procuring Entity], as shown in the attached [state title of attached
document showing proof of authorization (e.g., duly notarized Secretary’s Certificate,
Board/Partnership Resolution, or Special Power of Attorney, whichever is
applicable;)];

3. [Name of Bidder] is not “blacklisted” or barred from bidding by the Government of

the Philippines or any of its agencies, offices, corporations, or Local Government
Units, foreign government/foreign or international financing institution whose
blacklisting rules have been recognized by the Government Procurement Policy
Board;

4. Each of the documents submitted in satisfaction of the bidding requirements is an

authentic copy of the original, complete, and all statements and information provided
therein are true and correct;

5. [Name of Bidder] is authorizing the Head of the Procuring Entity or its duly
authorized representative(s) to verify all the documents submitted;
 6. Select one, delete the rest:

If a sole proprietorship: The owner or sole proprietor is not related to the Head of the
Procuring Entity, members of the Bids and Awards Committee (BAC), the Technical
Working Group, and the BAC Secretariat, the head of the Project Management Office
or the end-user unit, and the project consultants by consanguinity or affinity up to the
third civil degree;

If a partnership or cooperative: None of the officers and members of [Name of

Bidder] is related to the Head of the Procuring Entity, members of the Bids and
Awards Committee (BAC), the Technical Working Group, and the BAC Secretariat,
the head of the Project Management Office or the end-user unit, and the project
consultants by consanguinity or affinity up to the third civil degree;

If a corporation or joint venture: None of the officers, directors, and controlling

stockholders of [Name of Bidder] is related to the Head of the Procuring Entity,
members of the Bids and Awards Committee (BAC), the Technical Working Group,
and the BAC Secretariat, the head of the Project Management Office or the end-user
unit, and the project consultants by consanguinity or affinity up to the third civil
degree;

7. [Name of Bidder] complies with existing labor laws and standards; and

8. [Name of Bidder] is aware of and has undertaken the following responsibilities as a

Bidder:

a) Carefully examine all of the Bidding Documents;

b) Acknowledge all conditions, local or otherwise, affecting the implementation of

the Contract;

c) Made an estimate of the facilities available and needed for the contract to be bid,
if any; and

d) Inquire or secure Supplemental/Bid Bulletin(s) issued for the [Name of the

Project].

9. [Name of Bidder] did not give or pay directly or indirectly, any commission, amount,
fee, or any form of consideration, pecuniary or otherwise, to any person or official,
personnel or representative of the government in relation to any procurement project
or activity.

IN WITNESS WHEREOF, I have hereunto set my hand this __ day of ___, 20__ at
____________, Philippines.

_____________________________________
Bidder’s Representative/Authorized Signatory
 SUBSCRIBED AND SWORN to before me this ___ day of [month] [year] at [place
of execution], Philippines. Affiant/s is/are personally known to me and was/were identified
by me through competent evidence of identity as defined in the 2004 Rules on Notarial
Practice (A.M. No. 02-8-13-SC). Affiant/s exhibited to me his/her [insert type of government
identification card used], with his/her photograph and signature appearing thereon, with no.
________ and his/her Community Tax Certificate No. _______ issued on ____ at ______.

Witness my hand and seal this ___ day of [month] [year].

NAME OF NOTARY PUBLIC

Serial No. of Commission _______________
Notary Public for _______ until __________
Roll of Attorneys No. __________________
PTR No. ______ [date issued], [place issued]
IBP No. ______ [date issued], [place issued]

Doc. No. _____

Page No. _____
Book No. _____
Series of _____

* This form will not apply for WB funded projects.

 Bank Guarantee Form for Advance Payment

To: [name and address of PROCURING ENTITY]

[name of Contract]

Gentlemen and/or Ladies:

In accordance with the payment provision included in the Special Conditions of Contract,
which amends Clause 10 of the General Conditions of Contract to provide for advance
payment, [name and address of Supplier] (hereinafter called the “Supplier”) shall deposit
with CEZA a bank guarantee to guarantee its proper and faithful performance under the said
Clause of the Contract in an amount of [amount of guarantee in figures and words].

We, the [bank or financial institution], as instructed by the Supplier, agree unconditionally
and irrevocably to guarantee as primary obligator and not as surety merely, the payment to
CEZA on its first demand without whatsoever right of objection on our part and without its
first claim to the Supplier, in the amount not exceeding [amount of guarantee in figures and
words].

We further agree that no change or addition to or other modification of the terms of the
Contract to be performed thereunder or of any of the Contract documents which may be made
between CEZA and the Supplier, shall in any way release us from any liability under this
guarantee, and we hereby waive notice of any such change, addition, or modification.

This guarantee shall remain valid and in full effect from the date of the advance payment
received by the Supplier under the Contract until [date].

Yours truly,

Signature and seal of the Guarantors

[name of bank or financial institution]

[address]

[date]
 BID SECURING DECLARATION FORM

REPUBLIC OF THE PHILIPPINES)

CITY OF _______________________) S.S.

x------------------------------------------------------x

BID SECURING DECLARATION

Invitation to Bid: [Insert Reference number]

To: [Insert name and address of the Procuring Entity]

I/We7, the undersigned, declare that:

1. I/We understand that, according to your conditions, bids must be supported by

a Bid Security, which may be in the form of a Bid-Securing Declaration.

2. I/We accept that: (a) I/we will be automatically disqualified from bidding for
any contract with any procuring entity for a period of two (2) years upon
receipt of your Blacklisting order; and, (b) I/we will pay the applicable fine
provided under Section 6 of the Guidelines on the Use of Bid Securing
Declaration, within fifteen (15) days from receipt of the written demand by
CEZA for the commission of acts resulting to the enforcement of the bid
securing declaration under Sections 23.1(b), 34.2, 40.1 and 69.1, except
69.1(f), of the IRR of RA 9184; without prejudice to other legal action the
government may undertake.

3. I/We understand that this Bid Securing Declaration shall cease to be valid on
the following circumstances:

(a) Upon expiration of the bid validity period, or any extension thereof
pursuant to your request;

(b) I am/we are declared ineligible or post-disqualified upon receipt of

your notice to such effect, and (i) I/we failed to timely file a request for
reconsideration or (ii) I/we filed a waiver to avail of said right;

(c) I am/we are declared the bidder with the Lowest Calculated
Responsive Bid, and I/we have furnished the performance security and
signed the Contract.

7 Select one and delete the other. Adopt the same instruction for similar terms throughout the document.
 IN WITNESS WHEREOF, I/We have hereunto set my/our hand/s this ____ day of
[month] [year] at [place of execution].

[Insert NAME OF BIDDER’S AUTHORIZED

REPRESENTATIVE]
[Insert Signatory’s Legal Capacity]
Affiant

SUBSCRIBED AND SWORN to before me this ___ day of [month] [year] at [place
of execution], Philippines. Affiant/s is/are personally known to me and was/were identified
by me through competent evidence of identity as defined in the 2004 Rules on Notarial
Practice (A.M. No. 02-8-13-SC). Affiant/s exhibited to me his/her [insert type of government
identification card used], with his/her photograph and signature appearing thereon, with no.
________ and his/her Community Tax Certificate No. _______ issued on ____ at ______.

Witness my hand and seal this ___ day of [month] [year].

NAME OF NOTARY PUBLIC

Serial No. of Commission _______________
Notary Public for _______ until __________
Roll of Attorneys No. __________________
PTR No. ______ [date issued], [place issued]
IBP No. ______ [date issued], [place issued]

Doc. No. _____

Page No. _____
Book No. _____
Series of _____
 2500
125

32

90

160
64

410

500

164
127 2370 127 30
250
2625

TYPICAL DETAIL OF PORT FENDER

 Procurement of Fender System for Port Irene
Structure

TERMS OF REFERENCE
PROCUREMENT AND INSTALLATION OF SEVEN (7) PIECES BRAND NEW ARCH
RUBBER PIER/DOCK FENDERS

A. INTRODUCTION

The Cagayan Economic Zone Authority (CEZA) was created through Republic Act
7922, otherwise known as the "Cagayan Special Economic Zone Act of 1995",
and signed by President Fidel V. Ramos on February 24, 1995. CEZA is a
government corporate body tasked to manage and supervise the Cagayan
Special Economic Zone and Freeport (CSEZFP) which covers the entire
municipality of Sta. Ana and the islands of Fuga, Barit and Mabbag in the
municipality of Aparri, Province of Cagayan.

The area is envisioned to be a self-sustaining, eco-friendly freeport and agri-

industrial zone and mixed-use new township development. It is being
developed to be a major transshipment center for agro-industrial, light and
medium, and high technology and knowledge-based industries with world-class
tourism facilities and establishments. It will also provide for residential and
commercial districts complete with state-of-the-art utilities and infrastructure
support systems.

The development of CSEZFP will be anchored on a tri-nodal development

nucleus: the creation of a transshipment industry; agro-industrial development
by enhancing agricultural produce and endowments with foreign technology
and capital for value-added yield; and the development of tourism and leisure
facilities.

B. STATEMENT OF PURPOSE

These Terms of Reference (TOR) have been compiled by CEZA solely for the
Procurement of Fender System for Port Irene Structure. The need to provide an
adequate and more effective fender system is paramount in order to deliver the
needed protection to various port users and mooring vessels.

CEZA is striving to improve and standardize all its operation in compliance to

local regulatory and ISO 9001-2015 international standards in order to deliver
high quality customer services, improve productivity and efficiency towards a
safe working environment for both its customers and their sea crafts.

CAGAYAN ECONOMIC ZONE AUTHORITY TERMS OF REFERENCE - 1

 Procurement of Fender System for Port Irene
Structure

C. CAVEAT

This information is given to assist prospective firms to make their own

research and evaluation of the Project, and to aid them in the preparation of
the proposal. CEZA does not guarantee the accuracy and completeness of
the information contained in the TOR or its various attachments. In all cases,
interested parties should conduct their own due diligence, investigation,
analysis and projections for the proposed work.

By accepting these TOR, the recipient acknowledges and accepts that: (1)
none of the information contained herein will be used by the recipient or any
of its employees or representatives in any manner whatsoever, in whole or in
part, other than in connection with its evaluation of the work on the specific
basis proposed herein; (2) without limiting the generality of the foregoing,
the recipient will not reproduce these TOR to any person other than a limited
number of the recipient's employees or representatives who have a clear
need to know such information; and, (3) any proposed action by the recipient
which are inconsistent in any way with the foregoing agreements will require
prior written consent of CEZA.

While CEZA is open to all applications from qualified parties, CEZA reserves
the right not to accept any proposal, to reject any or all proposals, to waive
formalities therein, or to accept such proposals as may be advantageous to
CEZA without thereby incurring any liabilities thereof.

D. OBJECTIVE AND SCOPE OF SERVICES OF THE PROPOSED WORK

The Cagayan Economic Zone Authority (CEZA) intends to bid out the
Procurement of Fender System for Port Irene Structure to eligible local
suppliers. The objective and scope of service are as follows:

1. Enhance the domestic and international capability of Port Irene in

accepting and handling port calls from various merchants.

2. Improve the dilapidated condition of Port Irene’s fender system through

the procurement of seven (7) pieces brand new rubber fenders that can
withstand an impact from vessels with 16,000 DWT.

3. Fabricate seven (7) pieces rubber fenders following the dimensions

attached to this TOR and withstanding the impact from above stated
vessel weight.

4. Supply, deliver and install seven (7) pieces of rubber fenders at Port Irene,
Brgy. Casambalangan, Sta. Ana, Cagayan
CAGAYAN ECONOMIC ZONE AUTHORITY TERMS OF REFERENCE - 2
 Procurement of Fender System for Port Irene
Structure

5. Installation should be understood to include all the works necessary for

the installation of new rubber fenders including but not limited to:

a. Removal of all old rubber fenders and all other accessories

b. Installation of the new rubber fenders

E. TIME SCHEDULE / DELIVERABLES

The supply and delivery of seven (7) pieces rubber fenders for Port Irene
structure should be completed within sixty (60) calendar days upon receipt of
Purchase Order from CEZA.

The installation of the seven (7) pieces rubber fenders for Port Irene structure
should be completed within thirty (30) calendar days upon delivery.

F. WARRANTY

The winning bidder shall warrant the efficacy of the new rubber fenders from
time of installation until one (1) year thereafter. The winning bidder shall also
warrant against hidden defects of the rubber fenders.

The winning bidder shall also warrant the immediate availability of same
rubber fenders in case of destruction or removal of the installed rubber
fenders.

CAGAYAN ECONOMIC ZONE AUTHORITY TERMS OF REFERENCE - 3