ALTERNATIVE METHODS OF

PROCUREMENT
Annex “H” of the 2016 IRR of RA 9184

1
 OUTLINE

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

2
 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

3
 PROCUREMENT STANDARD

Procuring Entities shall adopt

public competitive bidding as the general mode of
procurement.

4
 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
4. GPPB approval as required under EO 423, S. 2005 (as amended)

 No government procurement shall be undertaken unless it is in

accordance with the approved APP of the PE.

5
 CONSENT OF GPPB AS REQUIREMENT

 The approval of GPPB before a PE may proceed with the alternative

method of procurement is only necessary for government contracts
involving an amount of at least 500 Million Pesos, where the HOPE
has made a determination that such contract falls under any of the
exceptions from public bidding.

6
 1. LIMITED SOURCE BIDDING

Also known as “selective bidding” which involves

direct invitation to bid by the procuring entity from
the list of pre-selected suppliers or consultants

7
 1. LIMITED SOURCE BIDDING

APPLICABILITY:
 Goods
 Consulting services

CONDITIONS:
 Highly specialized types where only a few bidders are
known to be available, or
 Major plant components beneficial to limit bidding to
known qualified bidders to maintain uniform quality and
performance of the plant

8
 1. LIMITED SOURCE BIDDING

 Pre-selection is based on capability and resources to perform the

contract taking into account:

 Experience and past performance on similar contracts

 Capabilities with respect to personnel, equipment, and/or
manufacturing facilities
 Financial position

9
1. LIMITED SOURCE BIDDING

 Pre-selected list of suppliers and consultants to be maintained by the relevant

government authority
 PE may be the relevant government authority
 Should be updated periodically and submitted to the GPPB

10
 2. DIRECT CONTRACTING

Single source procurement that does not require

elaborate Bidding Documents. The supplier is
simply asked to submit a price quotation or a pro-
forma invoice together with the conditions of sale.
The offer may be accepted immediately or after
some negotiations.

13
 2. DIRECT CONTRACTING

APPLICABILITY:
 Goods

CONDITIONS:

 Items of proprietary nature from proprietary source, i.e patents, trade

secrets, and copyrights
 Critical components from a specific supplier to hold a contractor to
guarantee its project performance, or
 Items sold by an exclusive manufacturer or dealer
 no other suppliers selling it at lower prices
 no suitable substitute can be obtained at more advantageous terms to
the Government

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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

Award of Contract to a Lone Bidder in SVP

 In SVP, it is mandatory to send the RFQ to at least 3 prospective
bidders/proponents and invite them to submit proposals; but it is not
necessary to actually receive 3 proposals.
 It is enough that the PE receives at least one (1) bid/proposal on the
day of the deadline for submission of quotations.
 Thus, if the lone proposal already complies with the technical, legal
and financial requirements of the procuring entity, the contract can
be awarded to the lone offeror.
•
 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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 SHOPPING and SMALL VALUE
PROCUREMENT

 Posting is required if amount is > PhP50,000.00, except for SHP Sec.

52.1(a):

 Request for Quotation

 Extension of deadline for submission of quotation
 Award

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SHOPPING AND SMALL VALUE PROCUREMENT

PROCEDURAL GUIDELINES:

Send RFQ to at least 3 Post in PhilGEPS,

suppliers PE’s website and
conspicuous place
Prepare RFQ *May be 1 in case of 52.1(a) *Except 52.1(a) and ABC 50k
*Receipt of 3 RFQs for 52.1(b) is and below
mandatory *Extend deadline if no quotation
Receipt of 1 RFQ in SVP will suffice is received

Award to LCB (for SHP

Prepare Abstract of & SVP)/HRB (for
Quotations SVP) that complies
with specs and ABC

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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
PROCEDURAL GUIDELINE

2 Failed Mandatory Preparation of

Competitive Review RFQ/Bid docs
Bidding/LSB

Invite at least Submission and

three (3) Negotiation opening of best Awarding of
suppliers/contract and final offer contract
ors/consultants

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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
 Considering that the underlying reason to support a Negotiated Procurement
through the Emergency modality relates to “time element”, the Procuring Entity
through the HOPE, BAC, its Secretariat and End-User unit, should consider
appropriate timing or the proximity of time between the actual procurement
activity to be conducted and the emergency sought to be addressed.

 When the reason or cause for the emergency has already been abated, adoption of
competitive bidding as the primary mode of procurement shall be considered.

 When the ground is based on imminent danger to life during a state of calamity,
there must be a 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.d NEGOTIATED PROCUREMENT -
TAKE-OVER OF CONTRACTS
APPLICABILITY:
 All types of Procurement

CONDITIONS:
 The contract, previously awarded through Competitive Bidding, has
been rescinded or terminated for causes provided for in the contract
and existing laws; and
 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.d NEGOTIATED PROCUREMENT -
TAKE-OVER OF CONTRACTS

 Negotiate starting with the 2nd LCB or HRB at the bidder’s original bid
price, then to the next if negotiation fails.

 If negotiation fails, BAC may either:

1. Invite a short list of at least 3 to submit bids and negotiate starting
with the LCB or HRB; or
2. Resort to any other appropriate alternative method of procurement.

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 5.e NEGOTIATED PROCUREMENT -
ADJACENT OR CONTIGUOUS

APPLICABILITY:
 Infrastructure

 Consulting Services

CONDITIONS:
1. Original contract is a result of competitive bidding,
2. Subject contract has similar or related scopes of work,
3. Within the contracting capacity of the contractor/consultant;

41
 5.e NEGOTIATED PROCUREMENT -
ADJACENT OR CONTIGUOUS

4. In determining the SLCC, NFCC and PCAB license, the sum of the value
of the remaining works for the existing contract and the ABC of the
contiguous or adjacent work shall be considered;
5. The same prices or lower unit prices as the original contract less mobilization
cost,
6. The ABC of the contiguous or adjacent work involved does not exceed the
contract amount of the ongoing project.
7. No negative slippage/delay during the time of negotiation, and
8. Negotiations commenced before expiry of original contract.

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 5.e NEGOTIATED PROCUREMENT -
ADJACENT OR CONTIGUOUS
When Original Contract has already been Completed

 The determination and decision to resort to the alternative modality

of Negotiated Procurement under Section 53.4 is subject to the prior
approval of the HOPE, upon favorable recommendation of the BAC,
provided that the conditions set forth therein are present, one of
which is that “the negotiations for the procurement are commenced
before the expiry of the original contract”.

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 5.f NEGOTIATED PROCUREMENT -
AGENCY-TO-AGENCY

It is the general policy of government to purchase its

requirements from the private sector. However, it acknowledges
that, in some exceptional cases, procurement from another
agency (Servicing Agency) of the government, that has the
mandate to deliver goods or services or to undertake
infrastructure projects or consultancy services, is more efficient
and economical for the government.

44
 5.f NEGOTIATED PROCUREMENT -
AGENCY-TO-AGENCY
APPLICABILITY:
 All types of Procurement

CONDITIONS:
 The Procuring Entity shall justify that entering into an Agency-to-Agency Agreement with the
Servicing Agency is more efficient and economical to the government;
 Servicing Agency has the mandate to deliver the goods and services required to be
procured or to undertake the infrastructure project or consultancy required by the
Procuring Agency;
 Servicing Agency has the absorptive capacity to undertake the project;
 Servicing Agency owns or has access to the necessary tools and equipment required for
the project;

45
 5.f NEGOTIATED PROCUREMENT -
AGENCY-TO-AGENCY

CONDITIONS:
5. Sub-contracting is not allowed. However, the servicing agency
may implement the infrastructure project in-house, by job-
order, or through the pakyaw contracting system; and

6. For procurement of infrastructure projects, the Servicing

Agency must have a track record of having completed, or
supervised a project, by administration or by contract, similar
to and with a cost of at least fifty percent (50%) of the project
at hand.

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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;

47
 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.

48
 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.

49
 5.h NEGOTIATED PROCUREMENT
HIGHLY TECHNICAL CONSULTANTS
APPLICABILITY:
 Consulting Services

CONDITIONS:
1. Individual consultant;

2. Work involves:
 Highly technical or proprietary; or
 Primarily confidential or policy determining, where trust and
confidence are the primary consideration; and
3. Term is, at the most, 6 months, renewable at the option of the
appointing HOPE, but in no case to exceed the term of the latter.
50
 5.i NEGOTIATED PROCUREMENT
DEFENSE COOPERATION AGREEMENT
APPLICABILITY:
 Goods and Consulting Services to be used by AFP

 major defense equipment or materiel

 defense-related consultancy services

CONDITIONS:
1. Prior approval of the President;
2. Expertise or capability required is not available locally;
3. DND Secretary has determined that the interests of the country shall be
protected by negotiating directly with an agency or instrumentality of
another country with existing defense cooperation agreement or
diplomatic relations with the Philippines; and
4. Performance security under §39 of IRR of RA 9184 shall be required to
supplier 51
 5.j NEGOTIATED PROCUREMENT
LEASE OF REAL PROPERTY AND VENUE

Procurement covering lease of

real property and venue for official use.

52
 5.j NEGOTIATED PROCUREMENT
LEASE OF REAL PROPERTY AND VENUE
APPLICABILITY:
 Goods (Real Property and Venue)

• It is preferred that government agencies lease publicly-owned

real property or venue from other government agencies.
• If there is an available publicly-owned real property or venue that
complies with the requirements of the Procuring Entity, it may
enter into a contract of lease with the government-agency owner.
• In the event that the Procuring Entity would resort to privately-
owned real property or venue, the End-User unit shall justify that
the same is more efficient and economical to the government.
53
 5.j NEGOTIATED PROCUREMENT
LEASE OF REAL PROPERTY AND VENUE
CONDITIONS:

1. Cost-benefit analysis indicating leasing privately-owned real

property or venue is more efficient and economical
The ABC shall be set using the mid point of the range
obtained from the results of the market analysis on the
prevailing lease rates.
Rental rates should also be within the prevailing market
rates

2. Technical Specification shall be prepared taking into

consideration the rating factors under Appendix B.
54
 5.j NEGOTIATED PROCUREMENT
LEASE OF REAL PROPERTY AND VENUE
 The BAC shall invite at least three (3) prospective Lessors/venues
within the vicinity of the selected location to submit sealed price
quotations.

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

evaluation.

 Lease contracts costing > PhP50,000 should be posted in the

PhilGEPS

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 5.k NEGOTIATED PROCUREMENT -
NGO PARTICIPATION

APPLICABILITY:
 All types of Procurement

CONDITIONS:
 Appropriation law or ordinance earmarks an amount to
be contracted to NGOs

 PE may opt to:

1. conduct public bidding; or
2. enter into a Memorandum of Agreement with an NGO, subject
to the guidelines issued by the GPPB for the purpose

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 5.l NEGOTIATED PROCUREMENT -
COMMUNITY PARTICIPATION
APPLICABILITY:
 Delivery of goods, including non-consulting services and simple
infrastructure projects

CONDITIONS:
 In the interest of project sustainability or to achieve certain
specific social objectives

PROCEDURE:
 Subject to Community Participation Procurement Manual
(CPPM), approved for adoption on 23 May 2014 (GPPB
Resolution No. 09-2014
57
 5.l NEGOTIATED PROCUREMENT -
COMMUNITY PARTICIPATION
THRESHOLDS:
MAXIMUM AMOUNT
PROCURING ENTITY (In Philippine Peso)
Goods Infrastructure Projects

NGAs, GOCCs, GFIs and SUCs 2,000,000 5,000,000  

LGUs:    
 1st-3rd Class Provinces 1,000,000 2,500,000
 1st-2nd Class Cities    
 Highly Urbanized Cities
 4th Class Province 800,000 1,750,000
 3rd Class City    
 5th Class Province 600,000 1,000,000
 4th Class City    
 6th Class Province 500,000 750,000
 5th-6th Class Cities    
 Municipalities
 Barangays

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 5.m NEGOTIATED PROCUREMENT -
UN AGENCIES, INTERNATIONAL ORGANIZATIONS OR
INTERNATIONAL FINANCING INSTITUTIONS

APPLICABILITY:
 All types of Procurement

CONDITIONS:
 Procure from UN Agencies, IOs or IFIs, of any of the following:
a. Small quantities of off-the-shelf goods, primarily in the
fields of education and health; and
b. Specialized products where the number of suppliers is
limited (e.g., vaccines or drugs)
c. Goods, Infrastructure Projects and Consulting Services,
involving advanced technologies, techniques and
innovations not locally available as certified by the HoPE,
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 DOCUMENTARY REQUIREMENTS

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

Business License /CV S Reg. License (Infra.) Business 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

61
 DOCUMENTARY REQUIREMENTS

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

Business License /CV S Reg. License (Infra.) Business 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)

62
 DOCUMENTARY REQUIREMENTS

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

Business License /CV S Reg. License (Infra.) Business 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

63
 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

64
 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;
65
 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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 INVITATION OF OBSERVERS

 Generally, invitation of Observers are not required when resorting

to alternative methods of procurement except in those where
competitive bidding or semblance a semblance thereof is still
present, such as in Limited Source Bidding and Negotiated
Procurement (Two Failed Biddings) under Section 49 and Section
53.1, respectively, of the revised IRR.

 Under Section 13.3 of the revised IRR of RA 9184, Observers shall

be invited at least three (3) five (5) cd before the date of the
negotiation and the absence of Observers will not nullify the BAC
proceedings, provided that they have been duly invited in writing.

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 REFERENCE TO BRAND NAMES

 Reference to brand names shall not be allowed except for items or

parts that are compatible with the existing fleet or equipment of the
same make and brand and will maintain the performance,
functionality and useful life of the equipment.

 This rule shall also apply to the goods component of infrastructure

projects and consulting services.

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 DELEGATION OF AUTHORITY

The conduct of the following may be delegated to End-user unit or

any other appropriate bureau, committee, or support unit duly
authorized by the BAC through a Resolution approved by the HOPE:

1. Shopping
2. Negotiated Procurement under Emergency Cases
3. Small Value Procurement
4. Lease of Real Property and Venue

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 PERFORMANCE and
WARRANTY SECURITIES
Alternative Method of Performance Warranty Security
Procurement Security (PS) (WS)
Limited Source Bidding  
Direct Contracting x 
Repeat Order x 
Two-Failed Biddings  
In no case shall WS be
required in the
procurement of
Consulting Services.

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 PERFORMANCE and
WARRANTY SECURITIES
Alternative Method of Performance Warranty Security
Procurement Security
(PS)
Emergency Cases 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
(PS)
Small Value Procurement 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 at:

Unit 2506 Raffles Corporate Center

F. Ortigas Road, Ortigas Center
Pasig City, Philippines 1605

TeleFax: (632)900-6741 to 44
Email Address: gppb@gppb.gov.ph

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