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OUTLINE

I. Procurement Standards
II. Alternative Methods
1. Limited Source Bidding*
2. Direct Contracting
3. Repeat Order
4. Shopping
5. Negotiated Procurement

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 OUTLINE

Negotiated Procurement:

a. Two Failed Biddings h. Defense Cooperation Agreement*

b. Take Over Contracts i. Small Value Procurement
c. Emergency Cases j. Lease of Real Property and Venue
d. Adjacent or Contiguous k. NGO Participation*
e. Agency-to-Agency l. Community Participation*
f. Scientific, Scholarly or Artistic Work, m. UN Agencies, International
Exclusive Technology and Media Organizations or International
Services Financing Institutions*
g. Highly Technical Consultants

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 PROCUREMENT STANDARD

Procuring Entities shall adopt

public competitive bidding as the general mode of
procurement.

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 PROCUREMENT STANDARD

EXCEPTION
Alternative methods shall be resorted only:
1. In highly exceptional case
2. To promote economy and efficiency
3. Justified by conditions specified in IRR
 No government procurement shall be undertaken unless it is in
accordance with the approved APP of the PE.

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 3. REPEAT ORDER

Procurement from the previous winning bidder,

whenever there is a need to replenish goods
procured under a contract previously awarded
through Competitive Bidding

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 3. REPEAT ORDER

APPLICABILITY:
 Goods

CONDITIONS:
1. Same or lower unit prices than those in the original contract, provided
that such prices are still the most advantageous to the GOP after price
verification;
2. No splitting of contracts, requisitions and POs;
3. Availed of within 6 months from the contract effectivity date stated in
the NTP arising from the original contract, provided that there has been a
partial delivery, inspection and acceptance of the goods within the same
period;
4. Not to exceed 25% of the quantity of each item; and
5. Original contract awarded through competitive bidding
6. The goods under the original contract must be quantifiable, divisible and
consisting of at least four (4) units per item
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 4. SHOPPING

Method where the procuring entity simply requests

for the submission of price quotations for readily
available off-the-shelf goods or ordinary/regular
equipment to be procured directly from suppliers of
known qualifications

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 4. SHOPPING

APPLICABILITY [Sec. 52.1(a) AND Sec. 52.1(b)]:

 Goods

CONDITIONS [SHOPPING UNDER Sec. 52.1(a)]:

1. There is an unforeseen contingency requiring immediate
purchase; and
2. Amount does not exceed the threshold

 The RFQ may be sent directly to the supplier of known technical,

legal and financial qualifications. Sending of one (1) RFQ will
suffice.
 Posting of the RFQ may be dispensed with.

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 4. SHOPPING

CONDITIONS [SHOPPING UNDER Sec. 52.1(b)]:

1. Procurement of ordinary or regular office supplies and equipment

not available in PS-DBM; and
2. Amount does not exceed the threshold.

 The BAC shall send the RFQs to at least three (3) suppliers of known
qualifications, and at least three (3) price quotations must be obtained.
 The deadline for submission may be extended thrice, if none or less than the
required number of quotations are received.
 In case no supplier responded after the third extension, the BAC shall conduct a
mandatory review in accordance with Section IV(K) of Annex H.

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 4. SHOPPING

THRESHOLD FOR UNFORESEEN CONTINGENCIES [Sec. 52.1(a)]

 NGAs, GOCCs, GFIs, SUCs and Autonomous Regional Government–
PhP100,000 PhP200,000
 LGUs :
Maximum Amount (in Philippine Pesos)
Classification
Province City Municipality
1st Class 100,000 200,000 100,000 200,000 50,000 100,000
2nd Class 100,000 200,000 100,000 200,000 50,000 100,000
3rd Class 100,000 200,000 80,000 160,000 50,000 100,000
4th Class 80,000 160,000 60,000 120,000 50,000 100,000
5th Class 60,000 120,000 50,000 100,000 50,000 100,000
6th Class 50,000 100,000 50,000 100,000 50,000 100,000
In the case of Barangays, the maximum amount is PhP50,000
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 4. SHOPPING
THRESHOLD FOR Sec. 52.1 (b):
 NGAs, GOCCs, GFIs, SUCs and Autonomous Regional Government– PhP500,000
PhP1,000,000
 LGUs:
Maximum Amount (in Philippine Pesos)
Classification
Province City Municipality
1st Class 500,000 1,000,000 500,000 1,000,000 100,000 200,000
2nd Class 500,000 1,000,000 500,000 1,000,000 100,000 200,000
3rd Class 500,000 1,000,000 400,000 800,000 100,000 200,000
4th Class 400,000 800,000 300,000 600,000 50,000 100,000
5th Class 300,000 600,000 200,000 400,000 50,000 100,000
6th Class 200,000 400,000 100,000 200,000 50,000 100,000
In the case of Barangays, the maximum amount is PhP50,000
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 4. SHOPPING

Standard Form for RFQ

 There is no prescribed template or standard form for the RFQ.

 The RFQ must indicate the specification, quantity, ABC, and other
terms and conditions of the item to be procured pursuant to
Section 3(a) of the Guidelines.

 In addition, RFQ must prescribe the manner by which price

quotations shall be submitted i.e., by sealed or open quotation.

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 4. SHOPPING

Section 52.2

The phrase “ordinary or regular office supplies” shall be understood to

include those supplies, commodities, or materials which , depending on
the Procuring Entity’s 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.

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 5.a NEGOTIATED PROCUREMENT -
SMALL VALUE PROCUREMENT

APPLICABILITY
 All types of Procurement

CONDITIONS:
1. Procurement does NOT fall under Shopping under Sec. 52; and
2. Amount does not exceed the threshold

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 5.a NEGOTIATED PROCUREMENT -
SMALL VALUE PROCUREMENT

 The BAC shall prepare and send the RFQs/RFPs to at least three (3)
suppliers, contractors or consultants of known qualifications.

 Receipt of at least one (1) quotation is sufficient to proceed with the

evaluation thereof.

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 5.a NEGOTIATED PROCUREMENT -
SMALL VALUE PROCUREMENT
THRESHOLD:
 NGAs, GOCCs, GFIs, SUCs and Autonomous Regional Government– PhP500,000
PhP1,000,000
 LGUs:

Maximum Amount (in Philippine Pesos)

Classification
Province City Municipality
1st Class 500,000 1,000,000 500,000 1,000,000 100,000 200,000
2nd Class 500,000 1,000,000 500,000 1,000,000 100,000 200,000
3rd Class 500,000 1,000,000 400,000 800,000 100,000 200,000
4th Class 400,000 800,000 300,000 600,000 50,000 100,000
5th Class 300,000 600,000 200,000 400,000 50,000 100,000
6th Class 200,000 400,000 100,000 200,000 50,000 100,000
In the case of Barangays, the maximum amount is PhP50,000
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 5.b NEGOTIATED PROCUREMENT -
TWO FAILED BIDDINGS

APPLICABILITY
 All types of Procurement

CONDITIONS:
1. Failed competitive bidding or Limited Source Bidding for the
second time under Sec. 35; and
2. Mandatory review of the following:
 Terms, conditions and specifications
 ABC, which may be adjusted up to 20% of ABC for the last
failed bidding
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 5.b NEGOTIATED PROCUREMENT -
TWO FAILED BIDDINGS

 The BAC shall invite at least three (3) suppliers, contractors or

consultants, including those disqualified in previous biddings for
the project, for negotiations to ensure effective competition.

 Even if only one (1) bidder should respond to such invitation or posting,
the BAC shall proceed with the negotiation subject to the prescribed rules.

 Requirements, guidelines, documents, clarifications, or other

information relative to the negotiations shall be communicated on
an equal basis

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 5.b NEGOTIATED PROCUREMENT -
TWO FAILED BIDDINGS

 Submission of best offer by suppliers, contractors, or consultants

on a specified date.

 Criteria in selecting the successful offer:

1. Offer should meet the PE’s minimum technical requirements.
2. Offer should not exceed ABC

 Observers shall be invited in all stages

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 5.b NEGOTIATED PROCUREMENT -
TWO FAILED BIDDINGS

Failure of Bidding as Declared by HOPE

 If the failure of bidding is due to the declaration by the HOPE

pursuant to Section 41 of the IRR , Negotiated Procurement (Two
Failed Biddings) cannot be resorted to.

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 5.c NEGOTIATED PROCUREMENT -
EMERGENCY CASES
APPLICABILITY:
 All types of Procurement

CONDITIONS:
 In case of imminent danger to life or property during a state of
calamity;
 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
• To restore vital public services, infrastructure facilities and other
public utilities
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 5.c NEGOTIATED PROCUREMENT -
EMERGENCY CASES
 Consider Time Element. Pag lumipas na ang emergency ng pangangailangan
competitive bidding na ang mode of procurement .

 When the ground is based on imminent danger to life during a state of calamity,
Dapat may declaration by a competent authority of a state of calamity pursuant
to existing laws, rules and regulations before any procurement activity may be
undertaken.

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 5.g NEGOTIATED PROCUREMENT
SCIENTIFIC, SCHOLARLY OR ARTISTIC WORK,
EXCLUSIVE TECHNOLOGY AND MEDIA SERVICES

APPLICABILITY:
 All types of Procurement involving:

1. Work of art; commissioned work or services of an artist for

specific artistic skills (e.g., singer, performer, poet, writer,
painter, sculptor, etc.);
2. Scientific, academic, scholarly work or research, or legal
services;
3. Highly-specialized life-saving medical equipment, as certified
by the Department of Health;

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 5.g NEGOTIATED PROCUREMENT
SCIENTIFIC, SCHOLARLY OR ARTISTIC WORK,
EXCLUSIVE TECHNOLOGY AND MEDIA SERVICES

APPLICABILITY:

4. Scientific, technical, economic, business, trade or legal journal,

magazine, paper, subscription, or other exclusive statistical
publications and references;
5. Media documentation, advertisement, or announcement through
television, radio, newspaper, internet, and other communication
media.
6. The construction or installation of an infrastructure facility where
the material, equipment, or technology under a proprietary right
can only be obtained from the same contractor.

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 5.g NEGOTIATED PROCUREMENT
SCIENTIFIC, SCHOLARLY OR ARTISTIC WORK,
EXCLUSIVE TECHNOLOGY AND MEDIA SERVICES

CONDITIONS:
1. End-User shall conduct a market study and determine the
probable sources to justify the need to procure through this
negotiated modality.
2. The study should confirm that the supplier, contractor or
consultant could undertake the project at more advantageous
terms.
3. It must be conducted prior to the commencement of the
procurement process.

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 DOCUMENTARY REQUIREMENTS

Alternative Modality Mayor’s/ Professional PhilGEP PCAB NFCC Income/B Omnibus

Business License /CV S Reg. License (Infra.) usiness Sworn
Permit (Consulting Number (Infra.) Tax Statement
Services) Return
Direct Contracting   
[Section 50] For ABCs
above
P500K
Shopping [Sec 52.1(b)]  
Emergency Cases     
(Section 53.2)] For For ABCs
ABCs above
above P500K
P500K

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 DOCUMENTARY REQUIREMENTS

Alternative Modality Mayor’s/ Professional PhilGEP PCAB NFCC Income/B Omnibus

Business License /CV S Reg. License (Infra.) usiness Sworn
Permit (Consulting Number (Infra.) Tax Statement
Services) Return
Take-Over of Contracts     
(Section 53.3.2; for new
bidders)
Adjacent/ Contiguous  
(Section 53.4)
Scientific, Scholarly or    
Artistic Work, For ABCs
Exclusive Technology above
and Media Services P500K
(Section 53.6)

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 DOCUMENTARY REQUIREMENTS

Alternative Modality Mayor’s/ Professional PhilGEP PCAB NFCC Income/B Omnibus

Business License /CV S Reg. License (Infra.) usiness Sworn
Permit (Consulting Number (Infra.) Tax Statement
Services) Return
Highly Technical 
Consultant (Section
53.7)
Small Value      
Procurement (Section
53.9)
Lease of Real Property   
Or Venue (Section Except
53.10) for gov’t
agencies
as lessors
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 POSTING REQUIREMENTS

Advertisement in the newspaper and posting requirements may be

dispensed with provided that the BAC through its Secretariat shall
post the procurement opportunity (RFQ or RFP) in PhilGEPS,
website of PE if available, and conspicuous place in the premise of
PE for a period of at least three (3) calendar days, for the following
methods:
 Limited Source Bidding [Sec. 54.2]
 Shopping [Sec. 52.1(b)] above P50K
 Negotiated Procurement under Two Failed Biddings [Sec. 53.1]
 NGO Participation [Sec. 53.11]
 Small Value Procurement [Sec. 53.9] above P50K

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 PHILGEPS REGISTRATION

Bidders are mandated to register with PhilGEPS, and provide

PhilGEPS Registration Number as a condition for award on the
following modalities:

1. Sec. 49 – Limited Source Bidding

2. Sec. 50 – Direct Contracting;
3. Sec. 51 – Repeat Order
4. Sec. 52.1(b) – Shopping for ordinary office supplies and
equipment not available in DBM-PS;
5. Sec. 53.3 – Take Over of Contracts (Only for New Bidders, if any.);
6. Section 53.6 – Scientific, Scholarly or Artistic Work, Exclusive
Technology and Media Services;
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 PHILGEPS REGISTRATION

Continuation:

7. Section 53.7 – Highly Technical Consultants;

8. Section 53.9 – Small Value Procurement; and
9. Section 53.10 – Lease of Real Property and Venue.
10. Sec. 53.11 – NGO Participation

For Sec. 53.1 - Two Failed Biddings, the BAC shall require the
submission of a Certificate of PhilGEPS Registration in
accordance with Sec. 8.5.2 of the IRR of RA 9184

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 PERFORMANCE and
WARRANTY SECURITIES
Alternative Method of Performance Warranty Security
Procurement Security
Emergency Cases (PS)
Procuring Entity may Procuring Entity may
require PS depending on require WS depending on
the nature of the the nature of the
procurement project. procurement project.
However, for In no case shall WS be
Infrastructure Projects, required in the procurement
PS is required. of Consulting Services.
Take-over of Contracts  
Adjacent/Contiguous  For Infrastructure Projects,
WS is required.

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 PERFORMANCE and
WARRANTY SECURITIES
Alternative Method of Performance Warranty Security
Procurement Security
Small Value Procurement (PS)
Procuring Entity may Procuring Entity may
require PS depending on require WS depending on
the nature of the the nature of the
procurement project. procurement project.
However, for In no case shall WS be
Infrastructure Projects, required in the procurement
PS is required. of Consulting Services.

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 OTHER TERMS AND CONDITIONS

 No procurement shall be undertaken unless in accordance

with APP.
 Most advantageous price for government should be obtained
(Sec. 48.1)
 Splitting of contracts strictly prohibited (Sec. 54.1)
 Bid security NOT necessary, except in Limited Source Bidding.
 The Uniform Guidelines for Blacklisting of Manufacturers,
Suppliers, Distributors, Contractors, and Consultants also
apply to Alternative Methods of Procurement.

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 THANK YOU!!

Contact us:

Department of Budget and Management

Regional Office III
Regional Government Center
Maimpis, City of San Fernando (P)

Tel. No. (045) 455 24 86 to 87

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