IRR OF RA 9184 Section 53.

Negotiated Procurement Negotiated Procurement is a method of procurement of goods, infrastructure projects and consulting services, whereby the procuring entity directly negotiates a contract with a technically, legally and financially capable supplier, contractor or consultant only in the following cases: a) Where there has been failure of public bidding for the second time as provided in Section 35 of the Act and this IRR-A; b) In case of imminent danger to life or property during a state of calamity, or when time is of the essence arising from natural or man-made calamities or other causes where immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public services, infrastructure facilities and other public utilities. In the case of infrastructure projects, the procuring entity has the option to undertake the project through negotiated procurement or by administration or, in high security risk areas, through the AFP;
Suppliers are exempted from posting performance security provided that the goods procured shall be delivered upon purchase. (See GPPB Resolution 005-2006, dated 20 January 2006, published at the Official Gazette on 03 July 2006) 51 Per GPPB Resolution 012-2006, dated 14 June 2006, ordinary or regular office supplies shall be understood to include those supplies, commodities or materials which, depending on the procuring entitys mandate and nature of operations, are necessary in the transaction of its official businesses; and consumed in the day-to-day operations of said procuring entity. However, office supplies shall not include services such as repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services. Resort to this alternative method of procurement shall be subject to the following rules: (1) The amount of goods to be procured should not exceed Two Hundred Fifty Thousand Pesos (P250,000); (2) The supplies or equipment must not be available in the Procurement Service; (3) The procuring entity must obtain at least three (3) price quotations from bonafide suppliers; (4) Recourse to this type of procurement shall be approved by the Head of the procuring entity, provided the same is included in the APP as an alternative mode of procurement and said procurement does not result into splitting of contracts; and (5) The award of contract must be posted at the G-EPS website, website of the procuring entity, if any, and in conspicuous place within the premises of the procuring entity. Implementing Rules and Regulations of Republic Act No. 9184
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c) Take-over of contracts, which have been rescinded or terminated for causes

provided for in the contract and existing laws, where immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public services, infrastructure facilities and other public utilities; d) Where the subject contract is adjacent or contiguous to an on-going infrastructure project: Provided, however, That (i) the original contract is the result of a Competitive Bidding; (ii) the subject contract to be negotiated has similar or related scopes of work; (iii) it is within the contracting capacity of the contractor; (iv) the contractor uses the same prices or lower unit prices as in the original contract less mobilization cost; (v) the amount involved does not exceed the amount of the ongoing project; and (vi) the contractor has no negative slippage: Provided, further, That negotiations for the procurement are commenced before the expiry of the original contract. Whenever applicable, this principle shall also govern consultancy contracts, where the consultants have unique experience and expertise to deliver the required service; e) Procurement of infrastructure, consulting services and goods from another agency of the Government, such as the PS-DBM, which is tasked with a centralized procurement of commonly used Goods for the government in accordance with Letters of Instruction No. 755 and Executive Order No. 359, series of 1989. For purposes of this paragraph, the term agency shall exclude GOCCs incorporated under Batas Pambansa Blg. 168, otherwise known as the Corporation Code of the Philippines. In order to hasten project implementation, agencies which may not have the proficiency or capability to undertake a particular procurement, as determined by the head of the procuring entity concerned, may request other agencies to undertake such procurement for them, or at their option, recruit and hire consultants or procurement agents to assist them directly and/or train their staff in the management of the procurement function. Section 54. Terms and Conditions for the use of Alternative Methods 54.1. Splitting of Government Contracts is not allowed. Splitting of Government Contracts means the division or breaking up of Government Contracts into smaller quantities and amounts, or dividing contract implementation into artificial phases or sub-contracts for the purpose of evading or circumventing the requirements of law and this IRR-A, especially the necessity of public bidding and the requirements for the alternative methods of procurement. 54.2. In addition to the specific terms, conditions, limitations and restrictions on the application of each of the alternative methods specified in Sections 48 to 53 of this IRR-A, the following shall also apply: a) For item (a) of Section 49, all the suppliers or consultants appearing in the list specified in the same section shall be invited. b) For item (a) of Section 53, the procuring entity shall draw up a list of at least three (3) suppliers, contractors, or consultants in good standing which will be invited to submit bids and negotiate with the bidder who submitted the lowest calculated bid or highest rated bid, whichever is applicable. If the offer of the bidder who submitted the lowest calculated bid or highest rated bid, whichever is applicable, is not responsive to the original specifications and ABC, negotiation shall be made in ascending order starting from the lowest offer. The bidder whose bid is found to be responsive to the original

specifications and ABC shall be considered for award. In all

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cases, the award of contract shall be posted at the G-EPS website, website of the procuring entity, if any, and in conspicuous place within the premises of the procuring entity.56 c) In the case of infrastructure projects, bona fide contractors licensed with the CIAP whose eligibility documents are on file with the procuring entity concerned or the Department of Public Works and Highways (DPWH) Contractors Registry, as the case may be, and who have been classified under the type of contract/project where the subject contract falls are eligible to be invited for negotiation. Other contractors not previously deemed eligible may also apply for eligibility. All procuring entities shall maintain a registry of contractors, suppliers and consultants as basis for drawing up the short list and/or selecting the contractors, suppliers and consultants for negotiations. Eligible contractor(s) for the project under consideration shall be furnished copies of the instructions to offerers, plans, specifications, proposal book form, and other tender documents for their use in submitting their quotation and other information called for in the format. The contractors shall submit, simultaneously with their quotation, the bid security as stipulated above. Negotiation may be made in ascending order starting from the lowest complying offerer.