Revised Implementing Rules & Regulations (IRR) of Republic Act (RA) No. 9184 and its Amendments

January 12, 2010 BIR MEMORANDUM FOR : All Revenue Officials and Employees Concerned SUBJECT : Revised Implementing Rules & Regulations (IRR) of Republic Act (RA) No. 9184 and its Amendments For the information and guidance of all concerned, please disseminate in all BIR Offices the attached copy of the latest Government Procurement Policy Board (GPPB) Resolutions, to wit: ADETca 1. GPPB Resolution No. 03-2009 (Approving the Revised IRR of R.A. No. 9184) 2. GPPB Resolution No. 05-2009 (Approving and Adopting the Third Edition of the Phil. Bidding Documents for the Procurement of Goods, Infrastructure Projects and Consulting Services) 3. GPPB Resolution No. 06-2009 (Approving Amendments to the Revised IRR of RA No. 9184) 4. GPPB Resolution No. 07-2009 (Amending the Revised Guidelines for the Implementation of Infrastructure Projects by Administration) 5. GPPB Resolution No. 08-2009 (Approving, by Referendum, the Implementing Guidelines for Lease of Privately-Owned Real Estate and Venue) 6. GPPB Resolution No. 09-2009 (Approving, by Referendum, the Guidelines for Shopping and Small-Value Procurement) 7. GPPB Resolution No. 11-2009 (Approving, Amendments to the Revised IRR of RA No. 9184) 8. GPPB Resolution No. 12-2009 (Guidelines on the Conduct of Procurement Activities from March 26 to May 10, 2010) 9. GPPB Resolution No. 13-2009 (Approving, Amendments to the Revised IRR of RA No. 9184) You are enjoined to post a copy of this issuance in your Office Bulletin Board, or in a conspicuous place in your Office, to ensure that it shall be given the most extensive publicity possible. CcaDHT (SGD.) JAMES H. ROLDAN Assistant Commissioner, Enforcement Service Chairman, Bids and Awards Committee ATTACHMENT Republic of the Philippines Government Procurement Policy Board July 22, 2009 GPPB RESOLUTION NO. 03-2009 APPROVING THE REVISED IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 9184 WHEREAS, Republic Act No. 9184 (R.A. 9184), entitled "An Act Providing for the Modernization, Standardization and Regulation of the Procurement Activities of the Government and for Other Purposes", took effect on 26 January 2003, while its Implementing Rules and Regulations Part A (IRR-A) took effect on 8 October 2003; WHEREAS, the Government Procurement Policy Board (GPPB), under Section 63 of the IRR-A of RA 9184, is mandated to formulate and amend public procurement policies, rules and regulations, and amend, whenever necessary, the IRR-A of RA 9184; WHEREAS, during the Philippines Development Forum held last March 2008, the Government of the Philippines (GOP) and its Development Partners agreed to formulate the implementing rules and regulations governing procurement of foreign-funded projects (IRR-B) within one (1) year thereof; WHEREAS, during the 4th GPPB Regular Meeting, held last 29 April 2008, the proposed steps for the formulation of IRR-B and the corresponding timelines for each step was presented to and duly approved by the GPPB; WHEREAS, an IRR-B Committee was constituted consisting of the following: 1) Government of the Philippines (GOP) through the GPPB; 2) Development Partners; and 3) Civil Society Organization (CSO) and Private Sector; WHEREAS, the salient provisions of the proposed IRR-B, the priority issues and other pertinent matters were discussed in a series of small group meetings/discussions held from the months of July to September 2008, as well as, in two (2) consultation meetings held on 3 June and 8 July 2008, respectively; IHaSED WHEREAS, during the 8th GPPB Regular Meeting held last 3 October 2008, the Board instructed the GPPB-Technical Support Office (GPPB-TSO) to move towards the issuance of one implementing set of rules and regulations for both locally-funded and foreign-assisted projects considering that several of the issues raised also apply to locally-funded procurement, and, for purposes of greater harmonization; WHEREAS, in the Joint GPPB and IRR-B Committee Meeting held last 12 December 2008, the GPPB approved the consultation process presented for the one IRR, particularly the design, strategy, target participants, and timelines therefor; WHEREAS, a series of IRR Consultation Meetings were held from 27 January-28 February 2009 to gather the comments/suggestions of various stakeholders, namely, representatives from selected National Government Agencies (NGAs), Government Owned and Controlled Corporations (GOCCs), Government Financial Institutions (GFIs), State Universities and Colleges (SUCs), Military, Water Districts, Local Government Units and Observers; WHEREAS, the GPPB, in its meeting held last 6 March 2009, extended the period for the preparation of the revised IRR for two (2) months from 2 April to 5 June 2009; WHEREAS, the GPPB, jointly with its Inter-Agency Technical Working Group (IATWG), were provided with an overview of the IRR Draft, the matrix of proposed changes, and policy issues for their comments, resolution and/or approval in meetings held last 03 April 2009, 24 April 2009, and 29 May 2009, respectively; WHEREAS, in its 5th joint meeting with the IATWG held last 29 May 2009, the GPPB resolved to create and delegate to an Executive Committee, composed of representatives coming from the National Economic and Development Authority, and the Departments of, Budget and Management, Education, Health, and Public Works and Highways, the review and initial approval of the latest draft of the Revised IRR of R.A. 9184; WHEREAS, during its meeting held last 17 July 2009, the Executive Committee, after much deliberation, eventually agreed on the latest draft of the Revised IRR of RA 9184, and, thereby resolved to recommend the same to the Government Procurement Policy Board for final approval; NOW, THEREFORE, for and in consideration of the foregoing, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, hereby RESOLVE to approve, as WE hereby approve the Revised Implementing Rules and Regulations of Republic Act 9184, a copy of which, as initialed on each and every page thereof by the Board Secretary, is attached hereto as Annex "A" and made an integral part hereof. AacCIT This resolution shall take effect immediately. APPROVED this 22nd day of July 2009 at Pasig City, Philippines. (Sgd.) (Sgd.) DEPARTMENT OF BUDGET NATIONAL ECONOMIC AND AND MANAGEMENT DEVELOPMENT AUTHORITY (Sgd.) (Sgd.) DEPARTMENT OF NATIONAL DEPARTMENT OF EDUCATION DEFENSE (Sgd.) (Sgd.) DEPARTMENT OF HEALTH DEPARTMENT OF INTERIOR AND LOCAL GOVERNMENT (Sgd.) (Sgd.) DEPARTMENT OF ENERGY DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS (Sgd.) (Sgd.) DEPARTMENT OF FINANCE DEPARTMENT OF TRADE AND INDUSTRY (Sgd.) (Sgd.) DEPARTMENT OF SCIENCE AND DEPARTMENT OF TRANSPORTATION TECHNOLOGY AND COMMUNICATIONS (Sgd.) PRIVATE SECTOR REPRESENTATIVE Attested by: (Sgd.) RUBY U. ALVAREZ Board Secretary, GPPB Executive Director III, GPPB-TSO Republic of the Philippines Government Procurement Policy Board September 30, 2009 GPPB RESOLUTION NO. 05-2009 APPROVING AND ADOPTING THE THIRD EDITION OF THE PHILIPPINE BIDDING DOCUMENTS FOR THE PROCUREMENT OF GOODS, INFRASTRUCTURE PROJECTS, AND CONSULTING SERVICES WHEREAS, Republic Act (R.A.) 9184 otherwise known as "Government Procurement Reform Act" and its Implementing Rules and Regulations Part A took effect on 26 January 2003 and 8 October 2003 respectively; WHEREAS, in order to systematize the procurement process, avoid confusion and ensure transparency, Section 6 of R.A. 9184 mandates the Government Procurement Policy Board (GPPB) to develop and issue standard bidding forms, the use of which once issued shall be mandatory upon all Procuring Entities. WHEREAS, in its meeting held last 20 August 2004, the GPPB approved and adopted the First Edition of the Philippine Bidding Documents (PBDs) for Goods, Civil Works, and Consulting Services through GPPB Resolution No. 10-2004; WHEREAS, in its meeting held last 26 May 2005, the GPPB approved the changes to the First Edition of the PBDs for Goods, Civil Works, and Consulting Services and adopted its Second Edition through GPPB Resolution No. 10-2005; and WHEREAS, after several consultations and meetings with various stakeholders, the GPPB approved and adopted the revised Implementing Rules and Regulations (IRR) through its Resolution No. 03-2009 dated 22 July 2009, which was published in a Supplemental Issue of the Official Gazette last 3 August 2009; WHEREAS, in view of the approval of the revised IRR, the GPPB recognized the immediate need to revise and update the PBDs and thereby tasked its Inter Agency Technical Working Group (IATWG) to review and revise the PBDs Second Edition; CaATDE WHEREAS, during its meeting last 30 September 2009, the recommendations of the IATWG in relation to the Third Edition of the PBDs were presented to and discussed by the GPPB; WHEREAS, after thorough deliberations on the issues, recommendations, and suggestions of the members present, the GPPB unanimously approved and adopted the Third Edition of the PBDs for Goods, Infrastructure Projects, and Consulting Services, subject to the inclusion of their comments; NOW, THEREFORE, for and in consideration of the foregoing, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on Us by law, hereby RESOLVE to confirm, approve, and adopt the Third Edition of the Philippine Bidding Documents for Goods, Infrastructure Projects, and Consulting Services. IN VIEW OF THE ABOVE PREMISES, all branches, agencies, departments, bureaus, offices and instrumentalities of the Government, including government-owned and/or controlled corporations, government financial institutions, state universities and colleges, and local government units, are hereby mandated to use the Philippine Bidding Documents Third Edition for all of their procurement activities. This resolution shall take effect immediately. APPROVED this 30th day of September, 2009 at Pasig City, Philippines. (Sgd.) (Sgd.) ROLANDO G. ANDAYA, JR. AUGUSTO B. SANTOS Secretary Acting Director General Department of Budget and Management National Economic and Development Authority (Sgd.) (Sgd.) DEPARTMENT OF EDUCATION DEPARTMENT OF ENERGY (Sgd.) (Sgd.) DEPARTMENT OF FINANCE DEPARTMENT OF HEALTH (Sgd.) (Sgd.) DEPARTMENT OF INTERIOR AND DEPARTMENT OF NATIONAL LOCAL GOVERNMENT DEFENSE (Sgd.) (Sgd.) DEPARTMENT OF PUBLIC WORKS DEPARTMENT OF SCIENCE AND AND HIGHWAYS TECHNOLOGY (Sgd.) (Sgd.) DEPARTMENT OF TRADE AND DEPARTMENT OF TRANSPORTATION INDUSTRY AND COMMUNICATIONS (Sgd.) PRIVATE SECTOR REPRESENTATIVE Attested by: (Sgd.) RUBY U. ALVAREZ Board Secretary, GPPB Executive Director, GPPB-TSO Republic of the Philippines Government Procurement Policy Board September 30, 2009 GPPB RESOLUTION NO. 06-2009 APPROVING AMENDMENTS TO THE REVISED IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 9184 WHEREAS, Republic Act No. 9184 (R.A. 9184), entitled "An Act Providing for the Modernization, Standardization and Regulation of the Procurement Activities of the Government and for Other Purposes", took effect on 26 January 2003, while its Implementing Rules and Regulations Part A (IRR) took effect on 8 October 2003; HIEASa WHEREAS, the Government Procurement Policy Board (GPPB), under Section 63 of the IRR-A of RA 9184, is mandated to formulate and amend public procurement policies, rules and regulations, and amend, whenever necessary, the IRR of RA 9184; WHEREAS, after extensive consultation and deliberations, the GPPB, during its meeting held last 22 July 2009, approved the Revised IRR of RA 9184 through GPPB Resolution 03-2009; WHEREAS, the Revised IRR of RA 9184 was published in a Supplemental Issue of the Official Gazette last 3 August 2009, and took effect on 2 September 2009; WHEREAS, several errors were discovered on the published version of the Revised IRR of RA 9184 which may negate the original intent and/or sow confusion on the implementation of the affected provisions; WHEREAS, these errors were presented to the GPPB during its meeting held last 30 September 2009, and, after thorough deliberations, the GPPB resolved to amend the affected provisions in order to reflect the intent of the GPPB; NOW, THEREFORE, for and in consideration of the foregoing, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, hereby RESOLVE to approve, as WE hereby approve the changes on the Implementing Rules and Regulations of Republic Act 9184 as provided in Annex hereof. This resolution shall take effect immediately. APPROVED this 30th day of September 2009 at Pasig City, Philippines. (Sgd.) (Sgd.) ROLANDO G. ANDAYA, JR. AUGUSTO B. SANTOS Secretary Acting Director General Department of Budget and Management National Economic and Development Authority (Sgd.) (Sgd.) DEPARTMENT OF EDUCATION DEPARTMENT OF ENERGY (Sgd.) (Sgd.) DEPARTMENT OF FINANCE DEPARTMENT OF HEALTH (Sgd.) (Sgd.) DEPARTMENT OF INTERIOR DEPARTMENT OF NATIONAL AND LOCAL GOVERNMENT DEFENSE (Sgd.) (Sgd.) DEPARTMENT OF PUBLIC DEPARTMENT OF SCIENCE AND WORKS AND HIGHWAYS TECHNOLOGY (Sgd.) (Sgd.) DEPARTMENT OF TRADE AND DEPARTMENT OF TRANSPORTATION INDUSTRY AND COMMUNICATIONS (Sgd.) PRIVATE SECTOR REPRESENTATIVE Attested by: (Sgd.) RUBY U. ALVAREZ Board Secretary, GPPB Executive Director, GPPB-TSO ANNEX A AMENDMENTS TO THE REVISED IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT 9184 1. On the last sentence of Section 22.3 of the IRR, insert the phrase "at the option of the Procuring Entity" between the words "However" and "only". Thus, Section 22.3 will be corrected as follows: Published Corrected . . . . However, only those who have . . . . However, at the option of the purchased the Bidding Documents shall Procuring Entity, only those who have be allowed to participate in the pre-bid purchased the Bidding Documents shall be conference and raise or submit written allowed to participate in the pre-bid queries or clarifications. conference and raise or submit written queries or clarifications. 2. On the first sentence of Section 22.5.3 of the IRR, change the word "or" to "and". Thus, Section 22.5.3 will be corrected as follows: Published Corrected Any Supplemental/Bid Bulletin issued Any Supplemental/Bid Bulletin issued by the BAC shall also be posted on by the BAC shall also be posted on the PhilGEPS or the website of the the PhilGEPS or and the website of the procuring entity concerned, if procuring entity concerned, if available. . . . . available. . . . . 3. On the first sentence of Section 24.5.2, delete reference to submission of LOI. Thus, the first sentence of Section 24.5.2 will be corrected as follows: Published Corrected The BAC shall draw up the short list of The BAC shall draw up the short list of consultants from those who have been consultants from those who have been determined as eligible, and who have determined as eligible, and who have submitted their LOI, both in accordance submitted their LOI, both in accordance with with the provisions of this IRR. . . . . the provisions of this IRR. . . . . 4. On Section 25.2 (b) (i), change reference from Section 23.3 to Section 23.1. Thus, Section 25.2 (b) (i) will be corrected as follows: Published Corrected b) For the procurement of infrastructure b) For the procurement of infrastructure projects: projects: i) Eligibility requirements under i) Eligibility requirements under Section 23.3 of this IRR; Section 23.3 23.1 of this IRR; 5. On the forms of bid and performance securities under Sections 27.2 and 39.2, respectively, change the word "confirmed" to "issued' and move bank draft/guarantee with irrevocable letter of credit. Thus, the respective tables under Sections 27.2 and 39.2 will be corrected as follows: Published Corrected a) Cash, a) Cash, or cashier's/manager's cashier's/manager's check, bank check, bank draft/guarantee draft/guarantee confirmed by a confirmed issued Universal or by a Universal or Commercial Commercial Bank. Bank. b) Irrevocable letter b) Bank of credit issued draft/guarantee by a Universal or Two percent or irrevocable Commercial (2%) letter of credit Bank: Provided, issued by a Two percent however, that it Universal or (2%) shall be Commercial confirmed or Bank: Provided, authenticated by however, that it a Universal or shall be Commercial confirmed or Bank, if issued authenticated by by a foreign a Universal or bank. Commercial Bank, if issued by a foreign bank. c) Surety bond c) Surety bond callable upon callable upon demand issued demand issued by a surety or by a surety or insurance insurance Five percent company duly Five percent company duly (5%) certified by the (5%) certified by the Insurance Insurance Commission as Commission as authorized to authorized to issue such issue such security. security. d) Any combination Proportionate to d) Any combination Proportionate to of the foregoing. share of form with of the foregoing. share of form with respect to total respect to total amount of security amount of security 6. On Section 32.2.1 (b), change the first sentence as follows: Published Corrected Arithmetical Corrections . Consider Arithmetical Corrections . Consider computational errors, omissions, and computational errors, and omissions, and other bid modifications, if allowed in other bid modifications, if allowed in the the Bidding Documents, to enable Bidding Documents , to enable proper proper comparison of all eligible comparison of all eligible bids. It may also bids. . . . . consider bid modifications if expressly allowed in the Bidding Documents . . . . . 7. On Section 53.7, delete reference to partnerships. Thus, Section 53.7 will be corrected as follows: Published Corrected Highly Technical Consultants . In the Highly Technical Consultants . In the case of individual consultants or case of individual consultants or partnerships hired to do work that is (i) partnerships hired to do work that is (i) highly technical or proprietary; or (ii) highly technical or proprietary; or (ii) primarily confidential or policy primarily confidential or policy determining, where trust and confidence determining, where trust and confidence are the primary consideration for the are the primary consideration for the hiring of the consultant: Provided, hiring of the consultant: Provided, however, That the term of the individual however, That the term of the individual consultants or partnerships shall, at the consultants or partnerships shall, at the most, be on a six month basis, renewable most, be on a six month basis, renewable at the option of the appointing Head at the option of the appointing Head of the Procuring Entity, but in no case of the Procuring Entity, but in no case shall exceed the term of the latter. shall exceed the term of the latter. 8. On various sections of Annex "G" of the IRR, correct the references to the IRR as follows: Published Corrected Section 9.2 (i) (b): Section 9.2 (i) (b): valid licenses issued by the Professional valid licenses issued by the Professional Regulatory n Commission (PRC) for design Regulatory n Commission (PRC) for design professionals in accordance with the professionals in accordance with the provisions under Section 24.7.1 (Technical provisions under Section 24.7.1 (Technical Documents) of this IRR. Documents) 24.1 (a) (iv) of this IRR. Section 9.2 (ii) (c): Section 9.2 (ii) (c): The relevant provisions under Section The relevant provisions under Section 23.11.2.1 of the IRR of R.A. 9184 on 23.11.2.1 23.5.2 of the IRR of R.A. 9184 on eligibility requirements shall be observed, eligibility requirements shall be observed, with the following exceptions: . . . . with the following exceptions: . . . . Section 10.1: Section 10.1: In the submission of bids, the first envelope In the submission of bids, the first envelope (Technical Proposal) shall contain all the (Technical Proposal) shall contain all the required documents for infrastructure required documents for infrastructure projects projects under Section 25.3 (b) of the under Section 25.3 25.2 (b) of the IRR of R.A. IRR of R.A. 9184 and the following 9184 and the following additional documents: additional documents: . . . . . . . . Section 10.2: Section 10.2: The second envelope (Financial Proposal) The second envelope (Financial Proposal) shall contain all the required documents for shall contain all the required documents for infrastructure projects under Section 25.3 (b) infrastructure projects under Section 25.3 (b) of the IRR of R.A. 9184 and the following of the IRR of R.A. 9184 and the following additional documents: . . . . additional documents: . . . . Section 13.11: Section 13.11: The contractor shall be held liable for design The contractor shall be held liable for design and structural defects and/or failure of the and structural defects and/or failure of the completed project within the warranty periods completed project within the warranty periods specified in Section 62.2.2 of the IRR. specified in Section 62.2.2 62.2.3.2 of the IRR. Republic of the Philippines Government Procurement Policy Board September 30, 2009 GPPB RESOLUTION NO. 07-2009 AMENDING THE REVISED GUIDELINES FOR THE IMPLEMENTATION OF INFRASTRUCTURE PROJECTS BY ADMINISTRATION WHEREAS, the Government Procurement Policy Board (GPPB), under Section 63 of Republic Act (R.A.) 9184, is mandated to formulate and amend public procurement policies, rules and regulations, and amend, whenever necessary, the implementing rules and regulations of R.A. 9184; WHEREAS, pursuant to said mandate, the GPPB through its Resolution No. 013-2005 dated 5 August 2005, issued Annex I of the Implementing Rules and Regulations Part-A providing the Guidelines for the Implementation of Infrastructure Projects through Negotiated Procurement under Section 54.2 (d) of the IRR-A of R.A. 9184 and by Administration (hereinafter, "Guidelines"); SAHEIc WHEREAS, to harmonize with the special provision applicable to the Department of Public Works and Highways (DPWH) under the 2006 General Appropriations Act (GAA) governing implementation of projects "by Administration or Force Account", the Guidelines were revised through GPPB Resolution No. 018-2006 dated 6 December 2006 to increase the threshold amounts prescribed therein, and to rename it as the "Revised Guidelines for the Implementation of Infrastructure Contracts by Administration"; WHEREAS, there is again a need to update the Guidelines in view of the recent increase in the thresholds under the 2009 GAA and the 2010 National Expenditure Program for work by administration under the DPWH budget; WHEREAS, the GPPB in its 9th Regular Meeting held last 30 September 2009 discussed and unanimously agreed to update the Guidelines; NOW, THEREFORE, for and in consideration of the foregoing, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, hereby RESOLVE to confirm, adopt and approve, as WE hereby confirm, adopt and approve, the amendment of Section 3.3 of the Revised Guidelines for the Implementation of Infrastructure Projects by Administration of Annex I of the Implementing Rules and Regulations of R.A. 9184, as follows: 3.3 Any project costing Twenty Million Pesos (Php20,000,000) or less may be undertaken by administration or force account by the implementing agency concerned. A project costing over Twenty Million Pesos (Php20,000,000) may be undertaken by the agency concerned only in the following cases: xxx xxx xxx PROVIDED, that prior authority shall be obtained from the Secretary of Public Works and Highways, if the project cost is Twenty Million (Php20,000,000.00) up to Fifty Million Pesos (Php50,000,000.00) , or from the President of the Philippines, upon favorable recommendation of the Secretary of Public Works and Highways, if the project cost is more than Fifty Million Pesos (Php50,000,000.00) . This resolution shall take effect immediately. APPROVED this 30th day of September 2009 at Pasig City, Philippines. (Sgd.) (Sgd.) ROLANDO G. ANDAYA, JR. AUGUSTO B. SANTOS Secretary Acting Director General Department of Budget and Management National Economic and Development Authority (Sgd.) (Sgd.) DEPARTMENT OF EDUCATION DEPARTMENT OF ENERGY (Sgd.) (Sgd.) DEPARTMENT OF FINANCE DEPARTMENT OF HEALTH (Sgd.) (Sgd.) DEPARTMENT OF INTERIOR AND DEPARTMENT OF NATIONAL LOCAL GOVERNMENT DEFENSE (Sgd.) (Sgd.) DEPARTMENT OF PUBLIC WORKS DEPARTMENT OF SCIENCE AND AND HIGHWAYS TECHNOLOGY (Sgd.) (Sgd.) DEPARTMENT OF TRADE AND DEPARTMENT OF TRANSPORTATION INDUSTRY AND COMMUNICATIONS (Sgd.) PRIVATE SECTOR REPRESENTATIVE Attested by: (Sgd.) RUBY U. ALVAREZ Board Secretary, GPPB Executive Director, GPPB-TSO Republic of the Philippines Government Procurement Policy Board November 3, 2009 GPPB RESOLUTION NO. 08-2009 APPROVING, BY REFERENDUM, THE IMPLEMENTING GUIDELINES FOR LEASE OF PRIVATELY-OWNED REAL ESTATE AND VENUE WHEREAS, the Government Procurement Policy Board (GPPB), under Section 63 of Republic Act 9184 (R.A. 9184), is mandated to formulate and amend public procurement policies, rules and regulations, and amend, whenever necessary, the implementing rules and regulations of R.A. 9184; WHEREAS, pursuant to said mandate, the GPBB through Resolution No. 019-2007 dated 27 July 2007, issued the Implementing Guidelines for Lease of Privately-Owned Real Estate (hereinafter, the "Guidelines") as prescribed under Section 53 (i) of the Implementing Rules and Regulations Part-A of R.A. 9184; WHEREAS, the revised set of Implementing Rules and Regulations (IRR) of R.A. 9184 was approved last 22 July 2009 and took effect last 2 September 2009 or thirty (30) days after its publication in the Official Gazette; WHEREAS, one of the amendments under the IRR is the inclusion of lease of venue as an additional instance for Negotiated Procurement under Section 53.10 of the IRR, subject to guidelines to be issued by the GPPB; WHEREAS, during its 9th Regular Meeting held last 30 September 2009, the GPPB deliberated and approved, in principle, the procedural guidelines for lease of venue under Section 53.10 of the IRR and to incorporate these in the Guidelines; WHEREAS, the Inter-Agency Technical Working Sub-Group, to whom the preparation and finalization of amendments to the Guidelines were delegated, has approved the Guidelines, and agreed to favorably recommend these for the final approval of the GPPB; NOW, THEREFORE, WE the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, hereby RESOLVE to confirm, adopt and approve, as WE hereby confirm, adopt and approve, the REVISED IMPLEMENTING GUIDELINES FOR LEASE OF PRIVATELY-OWNED REAL ESTATE AND VENUE, attached as Annex "A" to, and made an integral part of, this resolution. caAICE This resolution shall take effect immediately. APPROVED this 3rd day of November 2009 at Pasig City, Philippines. (Sgd.) (Sgd.) ROLANDO G. ANDAYA, JR. AUGUSTO B. SANTOS Secretary Acting Director General Department of Budget and Management National Economic and Development Authority (Sgd.) (Sgd.) DEPARTMENT OF EDUCATION DEPARTMENT OF ENERGY (Sgd.) (Sgd.) DEPARTMENT OF FINANCE DEPARTMENT OF HEALTH (Sgd.) (Sgd.) DEPARTMENT OF INTERIOR AND DEPARTMENT OF NATIONAL LOCAL GOVERNMENT DEFENSE (Sgd.) (Sgd.) DEPARTMENT OF PUBLIC WORKS DEPARTMENT OF SCIENCE AND AND HIGHWAYS TECHNOLOGY (Sgd.) (Sgd.) DEPARTMENT OF TRADE AND DEPARTMENT OF TRANSPORTATION INDUSTRY AND COMMUNICATIONS (Sgd.) PRIVATE SECTOR REPRESENTATIVE Attested by: (Sgd.) RUBY U. ALVAREZ Board Secretary, GPPB Executive Director, GPPB-TSO ANNEX A IMPLEMENTING GUIDELINES FOR LEASE OF PRIVATELY-OWNED REAL ESTATE AND VENUE 1. Purpose The Guidelines on Lease of Privately-Owned Real Estate and Venue (the "Guidelines") shall set forth the rules and procedures in entering into contracts for lease of privately-owned real estate and venue by government agencies for official use pursuant to Section 53.10 of the Implementing Rules and Regulations of Republic Act 9184. 2. Scope and Application The Guidelines shall apply to national government, its branches, constitutional offices, departments, bureaus, offices and agencies, including state universities and colleges, government-owned and/or -controlled corporations, government financial institutions, and local government units. It shall not apply to lease of government properties for private use. 3. Definition of Terms 3.1. Cost-benefit Analysis. Refers to a tool used to aid decision-making by evaluating the benefits to be attained from an action against the costs for its implementation. For purposes of these Guidelines, the cost-benefit analysis should consider, among others, the costs for the transfer to, furnishing, and/or maintenance of the real estate, and include a market analysis of prevailing lease rates within the vicinity of the selected location. 3.2. Lessee. Refers to any government agency temporarily occupying a real estate on the basis of a contract executed with the private individual, partnership, cooperative, association, or corporation having absolute ownership over such real estate. 3.3. Lessor. Refers to any private individual, partnership, cooperative, association, or corporation having absolute ownership over the real estate or venue to be leased. DCcAIS 3.4. Real Estate. Refers to land and buildings, including office spaces or units. 3.5. Rental Rate. Refers to the amount paid by the Lessee for the use and/or occupancy of the privately-owned real estate to the Lessor, where payment is usually made on a monthly basis. 3.6. Venue. Refers to training centers, convention halls, hotels, and similar establishments catering to trainings, seminars, conferences, conventions, symposia and similar gatherings requiring the official participation of government officials and employees. This may include meals and accommodation depending on the requirements of the procuring entity. 4. Guiding Principles 4.1. It is more preferred that government agencies lease publicly-owned real estate and venue from other government agencies. 4.2. The location of the real estate or venue to be leased should have been meticulously selected by the procuring entity after taking into consideration, among others, the need for prudence and economy in government service and the suitability of the area in relation to the mandate of the office, and its accessibility to its clients. In the lease of venue, other factors such as the nature of the event or the level of security in the proposed location may also be taken into account. 4.3. As a general rule, rental rates are considered reasonable when they represent or approximate the value of what the Lessee gets in terms of accommodation, facility, amenities, and convenience from the leased real estate or venue, and the Lessor gets an equitable return of capital or investment. 4.4. Rental rates should also be within the prevailing market rates for lease of real estate or venue with the same or similar condition or classification and located within the vicinity. 4.5. The procuring entity shall ensure that the objectives and purpose of the lease contract do not constitute an unnecessary, excessive, extravagant, or unconscionable expenditure. 5. Procedural Requirements 5.1. The end user unit shall conduct a Cost-Benefit Analysis to assess the feasibility of leasing a privately-owned real estate or venue as against purchasing or leasing from a government-owned real estate or venue. aDSIHc 5.2. The recommendation of the end user unit to lease a privately-owned real estate or venue shall also indicate the proposed location/s, the justifications therefor, and the result of the market analysis of the prevailing rates of lease contracts within the vicinity of the selected location/s. 5.3. The Approved Budget for the Contract (ABC) shall be set using the mid point of the range obtained from the results of the market analysis on the prevailing lease rates for real estates or venue within the vicinity of the selected location complying with the criteria and technical specifications of the end user unit. In no case shall the rental rates, including additional expenses, such as association dues in the case of lease of real estate, exceed the ABC. 5.4. The Annual Procurement Plan of the procuring entity shall reflect the proposed lease of real estate or venue specifying the approved mode of procurement, the ABC, and the general description of the lease. 5.5. Selection of the Lessor following the procedures prescribed in Items 6 and 7 of these Guidelines may be delegated to the appropriate bureau, committee, or support unit duly authorized by the Bids and Awards Committee. 5.6. Eligibility documents need not be submitted by prospective Lessors. The procuring entity must nevertheless validate whether the Lessor to be awarded the contract is technically, legally and financially capable through other means. 5.7. All lease contracts with ABCs costing more than Fifty Thousand Pesos (Php50,000.00) shall be posted in the Philippine Government Electronic Procurement System. 6. Specific Guidelines: Lease of Real Estate 6.1. The draft contract and the technical specifications for the lease shall be prepared taking into consideration the rating factors under Appendix A of these Guidelines. 6.2. Thereafter, at least three (3) prospective Lessors shall be invited to submit sealed price quotations. 6.3. On a specified date, submitted price quotations shall be opened to determine the Lowest Calculated Bid (LCB). The real estate being offered by the Lessor with the LCB shall be rated in accordance with the technical specifications prepared pursuant to Appendix A, and the reasonableness of its price quotation shall be determined in accordance with the methodology prescribed in Appendix B of these Guidelines. ISCTcH 6.4. If the LCB is determined to be responsive and reasonable, said bid shall be declared as the Lowest Calculated Responsive Bid (LCRB). If not, then the second LCB shall be evaluated and its reasonableness determined pursuant to Item 6.3 of these Guidelines. This procedure shall be repeated for the next LCB until the LCRB is determined. 6.5. Lease contract shall be awarded to the LCRB. If no LCRB has been determined, then another round of prospective Lessors shall be invited to submit sealed price quotations in accord with Item 6.2 of these Guidelines until an LCRB has been determined and awarded the contract. 7. Specific Guidelines: Lease of Venue 7.1. Technical specifications shall be prepared taking into consideration the rating factors under Appendix C of these Guidelines. 7.2. Once technical specifications have been finalized, at least three (3) price quotations shall be obtained within the vicinity of the selected location. 7.3. The venue being offered by the Lessor with the LCB shall then be rated in accordance with the technical specifications prepared pursuant to Appendix C. Compliance rating with technical specifications may be conducted through ocular inspection, interviews, or other forms of due diligence. 7.4. If the LCB is determined to be responsive, said bid shall be declared as the LCRB. If not, then the second LCB shall be evaluated and its responsiveness determined pursuant to Item 7.3 of these Guidelines. This procedure shall be repeated for the next LCB until the LCRB is determined. 8. Terms and Conditions of Lease Contracts 8.1. The procuring entity shall ensure that the lease contract provides the most advantageous terms and conditions to the Government. 8.2. Lease contracts may be entered into on a multi-year basis, subject to the application of any set of guidelines that governs multi-year contracts. 9. Effectivity These Guidelines shall take effect fifteen (15) days after publication in the Official Gazette or in a newspaper of general nationwide circulation. ETHIDa APPENDIX A Table of Rating Factors for Lease of Real Estate Rating Factors Weight (%) Rating I. Location and Site Condition 1. Accessibility (25) ______ 2. Topography and Drainage (20) ______ 3. Sidewalk and waiting shed (15) ______ 4. Parking space (15) ______ 5. Economic potential (10) ______ 6. Land classification, utilization, and assessment (10) ______ 7. Other added amenities (5) ______ ______ 100 ______ ===== II. Neighborhood Data 1. Prevailing rental rate (20) ______ 2. Sanitation and health condition (20) ______ 3. Adverse influence (15) ______ 4. Property utilization (15) ______ 5. Police and fire station (15) ______ 6. Cafeterias (10) ______ 7. Banking/postal/telecom (5) ______ ______ 100 ______ ===== III. Real Estate 1. Structural condition (30) ______ 2. Functionality a. Module (6) ______ b. Room arrangement (6) ______ c. Circulation (6) ______ d. Light and ventilation (6) ______ e. Space requirements (6) ______ 3. Facilities a. Water supply and toilet (6) ______ b. Lighting system (6) ______ c. Elevators (6) ______ d. Fire escapes (6) ______ e. Fire fighting equipment (6) ______ 4. Other requirements a. Maintenance (5) ______ b. Attractiveness (5) ______ ______ 100 ______ ===== IV. Free Services and Facilities 1. Janitorial and security (20) ______ 2. Air conditioning (20) ______ 3. Repair and maintenance (20) ______ 4. Water and light consumption (20) ______ 5. Secured parking space (20) ______ ______ 100 ______ ===== I. Location and Site Condition x (.20) = ______ II. Neighborhood Data x (.20) = ______ III. Real estate x (.50) = ______ IV. Free Services and Facilities x (.10) = ______ Factor Value ______ Note: Weight of each rating factor may be changed as long as total weight per classification is equivalent to 100. Figures in parenthesis are samples. Procuring entity must determine passing rate before inviting bids from Lessors. A bid is determined to be responsive if it is equal to or higher than the passing rate. APPENDIX B Determination of Reasonableness of Rental Rates 1. The reasonableness of rental rates may be determined using any of the following methods. 1.1. Computation based on Observed Depreciation This method uses the following formula and a depreciation rate determined after meticulous ocular inspection of the actual condition of the real estate: Reproduction Cost = Estimated Unit Construction Cost x (1 - Depreciation Rate) Formula Rate = Reproduction Cost x Monthly Capitalization Rate Rental Rate = Formula Rate x Factor Value Monthly Rental = Rentable Area x Rental Rate 1.1.1. The following weights may be used in arriving at the observed depreciation rate: Status Depreciation (%) Good 20 Fair 40 Poor 60 Very poor 80 1.1.2. Reproduction Cost refers to the estimated total cost of replacing the real estate with the same utility. 1.1.3. Capitalization Rate refers to the interest rate on the cost or value of the property. 1.1.4. Rentable Area refers to the total area of the real estate in square meters being occupied or to be occupied by the Lessee less the common area like lobby, stairway, elevator hall, common comfort room, machine room for air conditioner, and other areas of common use by the public or upper floor occupants. cDTSHE 1.1.5. Factor Value refers to the rating factor where locations and site conditions, neighborhood data and real estate structural condition, functionality, facilities and other requirements, including free services and facilities offered by the Lessor are considered. The rating factors and its corresponding weights are provided in Appendix A of these Guidelines. 1.2. Computation based on Straight Line Depreciation This method uses the following formula: Age of Real Estate = Current Year - Year of Construction Depreciation Rate = Please See Table of Structural Depreciation Reproduction Cost = Estimated Unit Construction Cost x (1 - Depreciation Rate) Formula Rate = Reproduction Cost x Monthly Capitalization Rate Rental Rate = Formula Rate x Factor Value Monthly Rental = Rentable Area x Rental Rate 1.2.1. Depreciation rate shall be determined using the following Table of Structural Depreciation provided by the DPWH: Age Estimated Life of Real Estate Wooden Semi-Concrete Reinforced Structural Frame (60 years) Concrete Reinforced (40 years) (75 years) (100 years) Percentage (%) of estimated life 1 3 2.5 2 1.5 2 6 4.5 3.8 2.8 3 8.9 6.9 5.6 4.2 4 11.7 9 7.4 5.5 5 14.5 11.1 9.1 6.7 6 17.2 13.1 10.7 8.1 7 19.8 15.1 12.3 9.3 8 22.4 17 13.9 10.5 9 25 18 15.5 11.8 10 27.5 20.7 17.9 13 11 29.9 22.5 18.5 14.2 12 32.2 24.5 20 15.3 13 34.5 26.6 21.4 16.4 14 36.8 27.7 22.8 17.5 15 39 29.3 24.3 18.6 20 49.1 37 30.8 24.8 25 57.7 43.8 36.8 29 30 65 50 42.4 33.6 35 70 55.6 47.5 38 40 75 60.6 52.2 42.1 45 65 56.5 46 50 68.9 60.5 49.6 55 72.3 64.1 53.1 60 75 67.3 56.3 65 70.3 59.3 70 73 62 75 75 64.5 80 67 85 69.3 90 71.4 95 73.3 100 75 1.2.2. Estimated Unit Construction Cost refers to the estimated prevailing cost of construction per square meter of the real estate being appraised. The respective Estimated Unit Construction Cost of types of real estate for each region may be obtained from the Bureau of Maintenance of the DPWH. 1.2.3. Reproduction Cost, Capitalization Rate, Rentable Area and Factor Value shall have the same meaning as those referred Items 1.1.2 to 1.1.5. 1.3. Comparative Market Price Analysis This method is based on the conduct of comparative market analysis on the prevailing lease rates for real estates within the vicinity of the selected location complying with the criteria and technical specifications of the procuring entity. In the lease of vacant lot or other land spaces, the procuring entity shall likewise consider the zonal valuation issued by the city or municipality having jurisdiction over the property. 2. If the price quotation of the prospective Lessor does not exceed the computed monthly rental or is within the prevailing market rates, the rental rate offered may be regarded as reasonable, and its quotation may then be considered for award. IDScTE 3. Sample Computations for Observed Depreciation and Straight Line Depreciation: A 5-storey office building made of reinforced concrete structure with mechanical equipment, i.e., elevator, air conditioning system, etc. Date of Construction 1987 Estimated Unit Construction Cost P25,000/sq.m. Depreciation 20% (Good condition) Capitalization Rate 20% (Variable based on bank rate) Factor Value 90% (Based on rating) Computation Based on Observed Depreciation Reproduction Cost = Estimated Unit Construction Cost x (1 - Depreciation Rate) = P25,000/sq.m. (1 - 0.20) = P20,000/sq.m. Formula Rate = Reproduction Cost x Monthly Capitalization Rate = 20,000 (0.20/12) = 20,000 (0.0167) = P334/sq.m./mo. Rental Rate = Formula Rate x Factor Value = P334 (0.90) = 300.60/sq.m./mo. say 300/sq.m. Rentable Area = 200.00 sq.m. Monthly Rental = Rentable Area x Rental Rate = 200/sq.m. x P300/sq.m./mo. = P60,000.00/mo. Computation Based on Straight Line Depreciation Age of Real estate = Current Year - Year of Construction = 2007 - 1987 = 20 years Depreciation Rate = See Appendix B for the Table of Structural Depreciation Reproduction Cost = Estimated Unit Construction Cost x (1 - Depreciation Rate) = P25,000/sq.m. (1 - 0.248) = P18,800/sq.m. Formula Rate = Reproduction Cost x Monthly Capitalization Rate = P18,800 (0.20/12) = 18,800 (0.0167) = P313.96/sq.m./mo. Rental Rate = Formula Rate x Factor Value = P313.96 (0.90) = P282.56/sq.m./mo. say P285.00/sq.m. Rentable Area = 200.00 sq.m. Monthly Rental = Rentable Area x Rental Rate = 200 sq.m. x P285.00/sq.m. = P57,000.00/mo. APPENDIX C Table of Rating Factors for Lease of Venue Rating Factors Weight (%) Rating I. Availability 100 ______ II. Location and Site Condition 1. Accessibility (50) ______ 2. Parking space (50) ______ ______ 100 ______ ====== III. Neighborhood Data 1. Sanitation and health condition (25) ______ 2. Police and fire station (25) ______ 3. Restaurant (25) ______ 4. Banking and Postal (25) ______ ______ 100 ______ ====== IV. Venue a. Structural condition (20) ______ b. Functionality a. Conference Rooms (10) ______ b. Room arrangement (e.g., single, (5) ______ double, etc.) c. Light, ventilation, and air (5) ______ conditioning d. Space requirements (5) ______ c. Facilities a. Water supply and toilet (4) ______ b. Lighting system (5) ______ c. Elevators (4) ______ d. Fire escapes (4) ______ e. Fire fighting equipment (4) ______ f. Internet and Telecommunications (4) ______ g. Audio visual equipment (5) ______ d. Other requirements a. Maintenance (5) ______ b. Attractiveness (5) ______ c. Security (5) ______ e. Catering Services (5) ______ f. Client's satisfactory rating (5) ______ ______ 100 ______ ====== I. Availability x (.5) = ______ II. Location and Site Condition x (.1) = ______ III. Neighborhood Data x (.05) = ______ IV. Venue x (.35) = ______ Factor Value ______ Note: Weight of each rating factor may be changed as long as total weight per classification is equivalent to 100. Figures in parenthesis are samples. Procuring entity must determine passing rate before inviting bids from Lessors. A bid is determined to be responsive if it is equal to or higher than the passing rate. Republic of the Philippines Government Procurement Policy Board November 23, 2009 GPPB RESOLUTION NO. 09-2009 APPROVING, BY REFERENDUM, THE GUIDELINES FOR SHOPPING AND SMALL-VALUE PROCUREMENT WHEREAS, the Government Procurement Policy Board (GPPB), under Section 63 of Republic Act 9184 (R.A. 9184), is mandated to formulate and amend public procurement policies, rules and regulations, and amend whenever necessary the implementing rules and regulations of R.A. 9184; WHEREAS, the revised set of Implementing Rules and Regulations (IRR) of R.A. 9184 was approved last 22 July 2009 and took effect last 2 September 2009 or thirty (30) days after its publication in the Official Gazette ; AcaEDC WHEREAS, one of the amendments under the IRR is the increase in the threshold for Shopping under Section 52 and Small Value Procurement under Section 53.9 of the IRR; WHEREAS, to provide control measures that will safeguard these provisions from abuse, the GPPB, during its 9th Regular Meeting held last 30 September 2009, deliberated and approved, in principle, the procedural guidelines for Shopping and Small-Value Procurement; WHEREAS, the Inter-Agency Technical Working Sub-Group, to whom the drafting and finalization of these guidelines were delegated, has approved the Guidelines for Shopping and Small Value Procurement, and agreed to favorably recommend these for the final approval of the GPPB; NOW, THEREFORE, WE the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, hereby RESOLVE to confirm, adopt and approve, as WE hereby confirm, adopt and approve, the GUIDELINES FOR SHOPPING AND SMALL-VALUE PROCUREMENT, attached as Annex "A" to, and made an integral part of, this resolution, and recommend the same to the GPPB for final approval. This resolution shall take effect immediately. APPROVED this 23rd day of November 2009 at Pasig City, Philippines. (Sgd.) (Sgd.) ROLANDO G. ANDAYA, JR. AUGUSTO B. SANTOS Secretary Acting Director General Department of Budget and Management National Economic and Development Authority (Sgd.) (Sgd.) DEPARTMENT OF EDUCATION DEPARTMENT OF ENERGY (Sgd.) (Sgd.) DEPARTMENT OF FINANCE DEPARTMENT OF HEALTH (Sgd.) (Sgd.) DEPARTMENT OF INTERIOR AND DEPARTMENT OF NATIONAL LOCAL GOVERNMENT DEFENSE (Sgd.) (Sgd.) DEPARTMENT OF PUBLIC WORKS DEPARTMENT OF SCIENCE AND AND HIGHWAYS TECHNOLOGY (Sgd.) (Sgd.) DEPARTMENT OF TRADE AND DEPARTMENT OF TRANSPORTATION INDUSTRY AND COMMUNICATIONS (Sgd.) PRIVATE SECTOR REPRESENTATIVE Attested by: (Sgd.) RUBY U. ALVAREZ Board Secretary, GPPB Executive Director, GPPB-TSO ANNEX A GUIDELINES FOR SHOPPING AND SMALL VALUE PROCUREMENT 1. Scope and Purpose These Guidelines shall prescribe the general procedures for procurement through: a. Shopping of readily available off-the-shelf goods, or ordinary/regular equipment under Section 52.1 of the Implementing Rules and Regulations (IRR) of Republic Act No. 9184; and b. Small Value Procurement of goods, infrastructure projects, and consulting services under Section 53.9 of the IRR. 2. General Guidelines a. The decision to resort to Shopping or Small Value Procurement shall be reflected in the Annual Procurement Plan and must take into consideration the annual procurement requirements of the item to be procured and other market factors, such as fluctuations in prices. b. Splitting of contracts is strictly prohibited. Splitting of contracts means the breaking up of contracts into smaller quantities and amounts, or dividing contract implementation into artificial phases or subcontracts, for the purpose of making it fall below the threshold for shopping or small value procurement, or evading or circumventing the requirement of public bidding. c. After the decision to resort to Shopping or Small Value procurement has been made, the conduct thereof may be delegated to the appropriate bureau, committee, or support unit duly authorized by the Bids and Awards Committee. THDIaC 3. Procedural Guidelines a. The Request for Quotation (RFQ), indicating the specification, quantity, Approved Budget for the Contract (ABC), and other terms and conditions of the item to be procured, shall be prepared. b. The RFQ must also prescribe the manner by which price quotations shall be submitted i.e. , by sealed or open quotation, and the deadline for their submission. In all instances, however, information relating to the examination, evaluation, and comparison of price quotations shall be kept confidential and should not be disclosed to any other party except to those officially concerned until award of contract. c. The RFQ shall be sent to at least three (3) suppliers, contractors, or consultants of known qualifications. However, during unforeseen contingencies requiring immediate purchase under Section 52.1 (a) of the IRR, the RFQ may be sent to only one (1) supplier. d. RFQs shall also be posted for a period of seven (7) calendar days in the Philippine Government Electronic Procurement System (PhilG-EPS) website, website of the procuring entity, if available, and at any conspicuous place reserved for this purpose in the premises of the procuring entity. However, in the following instances, this posting requirement shall not be applicable: i. When there is an unforeseen contingency requiring immediate purchase under Section 52.1 (a) of the IRR; or ii. RFQs with ABCs equal to Fifty Thousand Pesos (Php50,000.00) and below. e. After the deadline for submission of price quotations, an Abstract of Quotations shall be prepared setting forth the names of those who responded to the RFQ, their corresponding price quotations, and the lowest quotation (for goods or infrastructure projects) or highest rated offer (for consulting services) submitted. f. For Shopping under Section 52.1 (b), at least three (3) price quotations must be obtained. g. The deadline for submission may be extended if none or less than the required number of price quotations are received. Extensions of deadline shall be posted in accord with subparagraph 3 (d) of these Guidelines. ASIDTa h. Award of contract shall be made to the lowest quotation (for goods or infrastructure projects) or, after successful negotiations, the highest rated offer (for consulting services) which complies with the specifications and other terms and conditions stated in the RFQ. i. For information purposes, all awards shall be posted in the PhilG-EPS website, website of the procuring entity, if available, and at any conspicuous place reserved for this purpose in the premises of the procuring entity except for those with ABCs equal to Fifty Thousand Pesos (Php50,000.00) and below. j. The procuring entity must validate whether it is entering into a contract with a technically, legally and financially capable supplier, contractor or consultant by requiring the submission of relevant documents or through other means. 4. Effectivity These Guidelines shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general nationwide circulation. Republic of the Philippines Government Procurement Policy Board November 30, 2009 GPPB RESOLUTION NO. 11-2009 APPROVING AMENDMENTS TO THE REVISED IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 9184 WHEREAS, Republic Act No. 9184 (RA 9184), entitled "An Act Providing for the Modernization, Standardization and Regulation of the Procurement Activities of the Government and for Other Purposes," took effect on 26 January 2003, while its Implementing Rules and Regulations Part A (IRR) took effect on 8 October 2003; WHEREAS, the Government Procurement Policy Board (GPPB), under Section 63 of the IRR-A of RA 9184, is mandated to formulate and amend public procurement policies, rules and regulations, and amend, whenever necessary, the IRR of RA 9184; CIaASH WHEREAS, after extensive consultation and deliberations, the GPPB, during its meeting held last 22 July 2009, approved the Revised IRR of RA 9184 through GPPB Resolution 03-2009; WHEREAS, the Revised IRR of RA 9184 was published in a Supplemental Issue of the Official Gazette last 3 August 2009, and took effect on 2 September 2009; WHEREAS, some errors were noticed in the Revised IRR of RA 9184 which should be corrected in order to avoid confusion on the implementation of the affected provisions; WHEREAS, these errors were presented to the GPPB during its meeting held last 30 November 2009, and, after thorough deliberations, the GPPB resolved to amend the affected provisions in order to reflect the intent of the GPPB; NOW, THEREFORE, for and in consideration of the foregoing, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, hereby RESOLVE to approve, as WE hereby approve the following amendments on the Implementing Rules and Regulations of Republic Act 9184: a) On Section 23.5.2.4, correct "Constructors Performance Evaluation Summary" to "Constructors Performance Evaluation System". b) On Section 24.1 (a) (iv), include the phrase "including their respective curriculum vitae" at the end of the provision, to wit: Statement of the consultant specifying its nationality and confirming that those who will actually perform the service are registered professionals authorized by the appropriate regulatory body to practice those professions and allied professions, including their respective curriculum vitae. c) On Section 24.4.2, delete reference to Section 30.3. d) On Section 50 (b), delete the word "plant". This resolution shall take effect immediately after its publication. APPROVED this 30th day of November 2009 at Pasig City, Philippines. (Sgd.) ROLANDO G. ANDAYA, JR. AUGUSTO B. SANTOS Secretary Acting Director General Department of Budget and Management National Economic and Development Authority (Sgd.) DEPARTMENT OF EDUCATION DEPARTMENT OF ENERGY (Sgd.) DEPARTMENT OF FINANCE DEPARTMENT OF HEALTH (Sgd.) DEPARTMENT OF INTERIOR AND DEPARTMENT OF NATIONAL LOCAL GOVERNMENT DEFENSE (Sgd.) (Sgd.) DEPARTMENT OF PUBLIC WORKS DEPARTMENT OF SCIENCE AND AND HIGHWAYS TECHNOLOGY DEPARTMENT OF TRADE AND DEPARTMENT OF TRANSPORTATION INDUSTRY AND COMMUNICATIONS (Sgd.) PRIVATE SECTOR REPRESENTATIVE Attested by: (Sgd.) RUBY U. ALVAREZ Board Secretary, GPPB Executive Director, GPPB-TSO Republic of the Philippines Government Procurement Policy Board November 27, 2009 GPPB RESOLUTION NO. 12-2009 GUIDELINES ON THE CONDUCT OF PROCUREMENT ACTIVITIES FROM MARCH 26 TO MAY 10, 2010 WHEREAS, the synchronized national and local elections are scheduled to take place on May 10, 2010; WHEREAS, the Commission on Elections, (COMELEC) pursuant to the powers vested in it by the Constitution and other elections laws, promulgated Resolution No. 8646 providing therein the period for prohibited activities under Section 261 (v) and (w) of the Omnibus Election Code; TAacCE WHEREAS, there is a need to reconcile said resolution with the provisions of Republic Act No. 9184 and its Implementing Rules and Regulations in order to guide government agencies on the conduct of their procurement activities from March 26 to May 10, 2010 or the period of prohibition under Section 261 (v) and (w) of the Omnibus Election Code; NOW, THEREFORE, for and in consideration of the foregoing, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, hereby RESOLVE to approve the attached Guidelines on the Conduct of Procurement Activities from March 26 to May 10, 2010. This resolution shall take effect immediately after its publication. APPROVED this 27th day of November at Pasig City, Philippines. (Sgd.) (Sgd.) ROLANDO G. ANDAYA, JR. AUGUSTO B. SANTOS Secretary Acting Director General Department of Budget and Management National Economic and Development Authority (Sgd.) (Sgd.) NATIONAL ECONOMIC AND DEPARTMENT OF NATIONAL DEVELOPMENT AUTHORITY DEFENSE (Sgd.) (Sgd.) DEPARTMENT OF EDUCATION DEPARTMENT OF HEALTH (Sgd.) (Sgd.) DEPARTMENT OF THE INTERIOR AND DEPARTMENT OF ENERGY LOCAL GOVERNMENT (Sgd.) (Sgd.) DEPARTMENT OF PUBLIC WORKS DEPARTMENT OF FINANCE AND HIGHWAYS (Sgd.) (Sgd.) DEPARTMENT OF TRADE AND DEPARTMENT OF SCIENCE AND INDUSTRY TECHNOLOGY (Sgd.) (Sgd.) DEPARTMENT OF TRANSPORTATION PRIVATE SECTOR AND COMMUNICATIONS REPRESENTATIVE Attested by: (Sgd.) RUBY U. ALVAREZ Board Secretary, GPPB Executive Director, GPPB-TSO (Sgd.) (Sgd.) ROLANDO G. ANDAYA, JR. AUGUSTO B. SANTOS Secretary Acting Director General Department of Budget and Management National Economic and Development Authority (Sgd.) (Sgd.) NATIONAL ECONOMIC AND DEPARTMENT OF NATIONAL DEVELOPMENT AUTHORITY DEFENSE (Sgd.) (Sgd.) DEPARTMENT OF EDUCATION DEPARTMENT OF HEALTH (Sgd.) (Sgd.) DEPARTMENT OF THE INTERIOR AND DEPARTMENT OF ENERGY LOCAL GOVERNMENT (Sgd.) (Sgd.) DEPARTMENT OF PUBLIC WORKS DEPARTMENT OF FINANCE AND HIGHWAYS (Sgd.) (Sgd.) DEPARTMENT OF TRADE AND DEPARTMENT OF SCIENCE AND INDUSTRY TECHNOLOGY (Sgd.) (Sgd.) DEPARTMENT OF TRANSPORTATION PRIVATE SECTOR AND COMMUNICATIONS REPRESENTATIVE Attested by: (Sgd.) RUBY U. ALVAREZ Board Secretary, GPPB Executive Director, GPPB-TSO ANNEX A GUIDELINES ON CONDUCT OF PROCUREMENT ACTIVITIES FROM MARCH 26 TO MAY 10, 2010 1.0 Scope These guidelines shall govern the conduct of procurement activities of the government, including local government units, state universities and colleges, and government owned and controlled corporations from March 26 to May 10, 2010. aEAcHI 2.0 Purpose These guidelines are being issued in order to advise government agencies on the procurement activities it may or may not undertake under Section 261 (v) and (w) of the Omnibus Election Code. They serve to remind agencies that the election ban is not designed to paralyze the operations of the government but to insulate government procurement from political partisan activities, usually in the form of new projects, which are designed to influence the public during the upcoming national and local elections. 3.0 Definition of Terms 3.1 Public Works The term "public works" shall refer to the construction, improvement, rehabilitation, repair, or restoration of roads and bridges, railways, airports, seaports, communication facilities, irrigation, flood control and drainage, water supply, sanitation, sewerage and solid waste management systems, shore protection, energy/power and electrification facilities, national buildings, school buildings, hospital buildings, and other related construction projects of the government. 3.2 Social and Housing Related Projects The term "social projects" shall refer to activities undertaken by the Department of Social Welfare and Development (DSWD), Housing and Urban Development Coordinating Council (HUDCC), and other agencies performing similar functions. 3.3 Routine and Normal/Administrative Expenses Expenses required for the day-to-day operations of the agency, such as salaries, light, heat, and power. 4.0 Guidelines Public bidding and procurement through any of the alternative modes may be undertaken and completed from March 26 to May 10, 2010 in accordance with the Annual Procurement Plan (APP) of the procuring entity, except for the following: 4.1 Public Works. No notices of award, whether through public bidding or any of the alternative modes of procurement, may be issued for public works from March 26 to May 10, 2010. While public bidding for public works may be conducted, the procuring entity should withhold the issuance of the Notice of Award from March 26 until May 10, 2010. However, procurement for any of the following public works is allowed: 4.1.1 Maintenance Work. Maintenance of existing and/or completed public works projects; provided that no additional laborers shall be employed. Only the average number of laborers or employees employed during the six (6) month period immediately prior to March 26, 2010 shall be permitted to work during such time. 4.1.2 Contract entered into or awarded before election ban. Notices of award, whether through public bidding or any of the alternative modes of procurement, issued before March 26, 2010, provided that such award was reported to the Commission on Elections (COMELEC) in accordance with Section 5 of these guidelines. 4.1.3 Preparatory works. Payment for the usual cost of preparation for working drawings, specifications, bills of materials, estimates, and other procedures preparatory to actual construction including the purchase of materials and equipment and all incidental expenses for wages of watchmen and other laborers employed for such work in the central office and filed storehouses before March 26, 2010. AIDcTE 4.1.4 Calamity. Emergency works necessitated by the occurrence of a public calamity, but such work shall be limited to the restoration of the damaged facility. 4.1.5 Ongoing projects. Ongoing public works commenced before March 26, 2010, provided that such project was reported to the COMELEC in accordance with Section 5. 4.1.6 Similar projects under foreign agreements. Ongoing foreign assisted projects commenced before March 26, 2010 are likewise allowed, provided that such project was reported to COMELEC in accordance with Section 5. 4.2 Social Projects. No notice of award, whether through public bidding or any of the alternative modes of procurement, may be issued for social projects by the DSWD and any other departments performing functions similar to DSWD from March 26 to May 10, 2010. While public bidding for social projects may be conducted, the procuring entity should withhold the issuance of the Notice of Award from March 26 to May 10, 2010, except for the following: 4.2.1 Routine and normal expenses. Routine and normal expenses of the department. 4.2.2 COMELEC Exemption. Such other expenses authorized by COMELEC after due notice and hearing. 4.3 Housing-related projects. No notice of award, whether through public bidding or any of the alternative modes of procurement, may be made for housing-related projects by the HUDCC and any other agency of the government performing similar functions from March 26 to May 10, 2010. While public bidding for housing projects may be conducted, the procuring entity should withhold the issuance of the Notice of Award from March 26 until May 10, 2010, except for the following: 4.3.1 Administrative expenses. Such other necessary administrative expenses. 4.3.2 COMELEC Exemption. Such other expenses authorized by COMELEC after due notice and hearing. 4.4 Issuance of treasury warrants or similar devices. Issuance, use or availment of treasury warrants or any device undertaking future delivery of money, goods or other things of value chargeable against public funds such as letters of credit. TSacAE 5.0 Reportorial Requirements 5.1 COMELEC On or before March 26, 2010, the head of the procuring entity shall submit to the COMELEC through its regional election directors/provincial election supervisors/election officers concerned certified lists of the following: (i) All ongoing public works projects commenced before March 26, 2010; (ii) Similar ongoing projects under foreign agreements commenced before March 26, 2010; and (iii) Notices of award for public works issued before March 26, 2010 together with a copy of each contract. Except for local government units, all other procuring entities shall furnish the Department of Public Works and Highways (DPWH) a copy of the certified list submitted to COMELEC. 5.2 Philippine Government Electronic Procurement System (PhilGEPS) All invitations to bid and awards of contracts shall be posted in the PhilGEPS in accordance with the provisions of Republic Act No. 9184 and its Implementing Rules and Regulations. 6.0 Effectivity These Guidelines shall take effect immediately after its publication. Republic of the Philippines Government Procurement Policy Board December 16, 2009 GPPB RESOLUTION NO. 13-2009 APPROVING AMENDMENTS TO THE REVISED IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 9184 WHEREAS, Republic Act No. 9184 (R.A. 9184), entitled "An Act Providing for the Modernization, Standardization and Regulation of the Procurement Activities of the Government and for Other Purposes," took effect on 26 January 2003, while its Implementing Rules and Regulations Part A (IRR) took effect on 8 October 2003; WHEREAS, the Government Procurement Policy Board (GPPB), under Section 63 of the IRR-A of RA 9184, is mandated to formulate and amend public procurement policies, rules and regulations, and amend, whenever necessary, the IRR of RA 9184; WHEREAS, after extensive consultation and deliberations, the GPPB, during its meeting held last 22 July 2009, approved the revised IRR of RA 9184 through GPPB Resolution 03-2009; WHEREAS, the revised IRR of RA 9184 was published in a Supplemental Issue of the Official Gazette last 3 August 2009, and took effect last 2 September 2009; WHEREAS, the GPPB determined that the published version of the revised IRR of RA 9184 failed to include a material amendment clarifying the policy that the opening of bids should be conducted within the same day as, and immediately after, the deadline for the submission and receipt of bids; WHEREAS, during its meeting on 16 December 2009, the GPPB, after thorough discussions, resolved to amend Section 29 of the revised IRR of RA 9184 to clarify the policy on opening of bids; NOW, THEREFORE, for and in consideration of the foregoing, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, RESOLVE to approve the amendment to Section 29 of the Implementing Rules and Regulations of Republic Act 9184 as follows: The BAC shall open the bids immediately after the deadline for the submission and receipt of bids. The time, date, and place of the opening of bids shall be specified in the Bidding Documents. The bidders or their duly authorized representatives may attend the opening of bids. The BAC shall adopt a procedure for ensuring the integrity, security, and confidentiality of all submitted bids. 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. aTIAES This resolution shall take effect immediately after its publication. APPROVED this 16th day of December 2009 at Pasig City, Philippines. (Sgd.) ROLANDO G. ANDAYA, JR. AUGUSTO B. SANTOS Secretary Acting Director General Department of Budget and Management National Economic and Development Authority (Sgd.) DEPARTMENT OF EDUCATION DEPARTMENT OF ENERGY (Sgd.) DEPARTMENT OF FINANCE DEPARTMENT OF HEALTH (Sgd.) DEPARTMENT OF INTERIOR AND DEPARTMENT OF NATIONAL LOCAL GOVERNMENT DEFENSE (Sgd.) (Sgd.) DEPARTMENT OF PUBLIC WORKS DEPARTMENT OF SCIENCE AND AND HIGHWAYS TECHNOLOGY DEPARTMENT OF TRADE AND DEPARTMENT OF TRANSPORTATION INDUSTRY AND COMMUNICATIONS (Sgd.) PRIVATE SECTOR REPRESENTATIVE Attested by: (Sgd.) RUBY U. ALVAREZ Board Secretary, GPPB Executive Director, GPPB-TSO n Note from the Publisher: Copied verbatim from the official document.