Module 6 Flashcards
in 1900 the United States Philippine Commission introduced public bidding in procurement in the Philippines
American Practice
Chief Engineer of US Army acted as the purchasing agent of government
Act No. 22
in 1901, contracts are mandated for purchase of school supplies
Act No. 74
Provincial Governors and Municipal Mayors to enter into contracts for public works
Act No. 82
creation of Bureau of Supply
Act No. 146
in 1906 no contract shall be entered into without public bidding
Executive Order No. 16
3 PURPOSES OF RA9184
STANDARDIZE
MODERNIZE
REGULATE
5 GOVERNING PRINCIPLES OF RA9184
P-A-C-T-S
>Public Monitoring >Accountability >Competitiveness >Transparency >Streamlined Process
refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by procuring entity. It shall also include the lease of goods and real estate.
PROCUREMENT
is the process and services which fit our needs and provides value for money
PROCUREMENT
Refer to:
>All items, supplies and materials
>Including general support services
>Needed in the transaction of public businesses or in the pursuit of any government undertaking, project or activity
>Whether in the nature of equipment, furniture, stationery, materials or construction, personal property, including non-personal or contractual services, such as:
1. repair and maintenance of equipment and furniture
2. trucking, hauling, janitorial and security and other related and analogous services.
Except: Infrastructure projects and consulting services
GOODS
Refer to:
>construction, improvement, demolition, rehabilitation, repair, restoration or maintenance of civil works components of :
- IT projects
- irrigation
- flood control and drainage
- water supply
- sanitation, sewerage and solid waste management
- national buildings, hospital buildings, and other related constructions projects of the Government.
INFRASTRUCTURE PROJECTS
Refer to services for Infrastructure Projects and other types of projects or activities of the Government requiring adequate external technical and professional expertise that are beyond the capability and/or capacity of the Government to undertake such as, but not limited to:
- advisory and review services;
- pre-investment or feasibility studies;
- design;
- construction supervision;
- management and related services; and
- other technical services or special studies.
CONSULTING SERVICES
TRUE or FALSE
RA9184 covers procurement of all government agencies
TRUE
TRUE or FALSE
General Rule in government procurement is Public/Competitive Bidding
TRUE
Alternative Methods of procurement allowed in ________
highly exceptional cases
TRUE or FALSE
One of the key concepts in government procurement is SIMPLIFIED ELIGIBILITY CHECKING
TRUE
Use of the Approved Budget for the Contract (ABC) as ________ for the bid price
ceiling
TRUE or FALSE
One of the key concepts in government procurement
Use of transparent, objective, and non-discretionary criteria
TRUE
TRUE or FALSE
One of the key concepts in government procurement
Use of Lowest Calculated and Responsive Bid (LRCB) or Highest Rated and Responsive Bid (HRRB)
TRUE
TRUE or FALSE
One of the key concepts in government procurement
Professionalization of procurement officials
TRUE
TRUE or FALSE
One of the key concepts in government procurement
Inclusion of Penal and Civil Liabilities
TRUE
[Significant Provisions]
“No government procurement shall be undertaken unless it is in accordance with the approved Annual Procurement Plan (APP) of the procuring entity.”
Article II, Section 7, Paragraph 2
[Significant Provisions]
Specifications for the procurement of goods shall be based on relevant characteristics and/ or performance requirements. Reference to brand names shall not be allowed.
Section 18. Reference to Brand Names
[Significant Provisions]
The ABC shall be the upper limit or ceiling for acceptable bid prices. If a bid price, as evaluated and calculated in accordance with this IRR, is higher than the ABC, the bidder submitting the same shall be automatically disqualified. There shall be no lower limit or floor on the amount of the award.
Section 31. Ceiling for Bid Prices
[Significant Provisions]
Splitting of contracts is the act of dividing or breaking up government contracts into smaller quantities and amounts… for the purpose of evading or circumventing the requirements for alternative methods of procurement.
Section 54.1
________ is the act of dividing or breaking up government contracts into smaller quantities and amounts… for the purpose of evading or circumventing the requirements for alternative methods of procurement.
Splitting of contracts
9 Major Stakeholders of Procurement
- End-User
- MFO/Budget Officers
- BAC Secretariat
- BAC Members
- TWG Members
- Accounting
- Auditor
- Oberservers/Resource Persons
- HoPE
[Applicable Penalty]
Imprisonment for not less than _____ years and _____ day but not more than _____ years
6
1
15
Public Official or Private Individual?
Penalty of temporary or perpetual disqualification from public office.
Public Official
Public Official or Private Individual?
Permanent disqualification from transacting business with the government.
Private Individual
Without prejudice to administrative sanctions that may be imposed in proper cases, a conviction under the Act and this IRR or R.A. 3019 shall carry with it ________, which may either consist of:
> Restitution for the damage done; or
> Forfeiture in favor of the government of any unwarranted benefit derived from the act or acts in question or both, at the discretion of the courts.
civil liability
In addition to the penal and civil sanctions, the HOPE, subject to the authority delegated to the BAC, if any, shall impose on bidders or prospective bidders, the administrative penalty of:
> Suspension for ___ year (first offense); for ___ years (second offense) from participating in the public bidding process, and disqualification from further participating in the public bidding being undertaken by the PE
> Forfeiture of Bid Security or the Performance Security
1 year
2 years
[Procuring Units]
- Technical Working Groups
- TWG Secretariats
AFP BIDS and AWARDS COMMITTEES
[Procuring Units]
- Procurement Centers (PCs)
- Contracting Offices (COs)
- Canvass/Contracting Committee (C3)
- AFP BAC Secretariats
AFP Procurement Service
Amount of Authority for the Chief of Staff, AFP
Not exceeding PhP 299,999,999.00
Amount of Authority for the following:
- Vice Chief of Staff, AFP
- CG, PAF
- CG, PA
- FOIC, PN
Not exceeding PhP250Million
Amount of Authority for the Commandant, Philippine Marine Corps
Not exceeding PhP50Million
6 Procurement Actors
- HoPE
- BAC
- BAC Secretariat
- TWG
- Obrservers
- End-User
Refers to:
>Head of the agency or body, or his duly authorized official, for NGAs and the constitutional commissions or offices, and other branches of government;
> Governing Board or its duly authorized official, for GOCCs, GFIs and SUCs; or
> Local Chief Executive, for LGUs
Head of Procuring Entity (HoPE)
In an agency, department, or office where the procurement is decentralized, the head of each decentralized unit shall be considered as the ________, subject to the limitations and authority delegated by the head of the agency, department, or office
HoPE
Functions and Responsibilities of ________
- Establishes BAC and designates its members
- Ensures the professionalization of the BAC, its secretariat and TWG members
- Approves the annual procurement plan
- Approves/disapproves the contract award
- Resolves protests
HoPE
TRUE or FALSE
HoPE must create a single BAC
TRUE
TRUE or FALSE
Separate BACs may be created under any of the following conditions:
- The items to be procured are complex or specialized
- If the single bac cannot reasonably manage the procurement transactions as shown by delays beyond the allowable limits; or
- If the creation is required according to the nature of the procurement
TRUE
HoPE shall designate _______ members of unquestionable integrity and procurement proficiency
5-7
PROHIBITED BAC MEMBERS
- HoPE and/or approving authority
- Chief accountants and his/her staff, unless accounting office is the end user
- Local treasurers and assistant local treasurers
- Internal auditors
REGULAR MEMBER or PROVISIONAL MEMBER?
Chairperson (3rd ranking permanent official)
REGULAR MEMBER
REGULAR MEMBER or PROVISIONAL MEMBER?
Member representing the legal or administrative areas (5th ranking permanent personnel)
REGULAR MEMBER
REGULAR MEMBER or PROVISIONAL MEMBER?
Member representing the finance area (5th ranking permanent personnel)
REGULAR MEMBER
REGULAR MEMBER or PROVISIONAL MEMBER?
Officer possessing technical expertise relevant to the procurement
PROVISIONAL MEMBER
REGULAR MEMBER or PROVISIONAL MEMBER?
End user representative
PROVISIONAL MEMBER
BAC shall have a fixed term of _______ reckoned from the date of appointment, renewal at the discretion of the HoPE.
1 year
TRUE or FALSE
HoPE may designate alternate members who shall have the same qualifications as that of the members originally designated
TRUE
TRUE or FALSE
Alternate members shall have the same term as the original members
TRUE
TRUE or FALSE
Presence in BAC meetings is considered for purposes of quorum and shall be entitled to the proportionate honoraria
TRUE
TRUE or FALSE
The relationship of the principal and the alternate is of co-equal nature, rather than hierarchical
TRUE
TRUE or FALSE
Accountability shall be limited to their respective acts and decisions
TRUE
TRUE or FALSE
Alternate BAC members have the same term as the original members
TRUE
Functions and Responsibilities of ________
> Recommends approval and/or revisions of APP and other reports
> Conducts bidding procedures
> Determines and recommends for approval appropriate procurement methods and award of contract to HoPE
> Creates TWG from a pool of technical, financial, and legal experts
> Periodic assessment of the procurement process and procedures
> Recommends imposition of sanctions in accordance with rule XXIII of RA 9184 and its Revised IRR
BAC
TRUE or FALSE
HoPE may create a new office or designate an existing organic office to act as BAC Secretariat
TRUE
TRUE or FALSE
In case of Ad Hoc BAC Secretariat, the HoPE shall assign full-time support staff in its BAC Secretariat
TRUE
TRUE or FALSE
Head BAC Secretariat must be at least a 5th or 3rd ranking permanent employee or if not available, a permanent official of the lower rank
TRUE
FUNCTIONS OF _______
- Provides administrative support to the BAC and TWG
- Organizes BAC and TWG meetings and conferences
- Prepares minutes of meetings and resolutions
- Takes custody of procurement documents and records
- Manages the sale and distributions of bidding documents
- Advertises/posts bidding opportunities, including bid documents, and notices of awards
- Assists in managing the procurement processes
- Monitors procurement activities and milestones
- Consolidate PPMPS and prepares the APP
- Acts as central channel of communications
BAC SECRETARIAT
Created by the BAC from a pool of TECHNICAL, FINANCIAL, and LEGAL EXPERTS
TECHNICAL WORKING GROUP (TWG)
TRUE or FALSE
BAC may create separate TWGs to handle different procurements
TRUE
TRUE or FALSE
BAC may create separate TWGs to handle different procurements
TRUE
FUNCTIONS OF ________
Assists the BAC in the following activities:
- Eligibility screening
- Bid evaluation
- Post-qualification
- Review of the technical specifications, scope of work, and terms of reference
- Review of bidding documents
- Shortlisting of consultants
- Resolution of request for reconsideration
TWG
> Origin of all procurement requests
Prepare actual requirements of the procurement project to include but not limited to the following:
- Technical specifications/scope of work/terms of reference
- Schedule of requirements
- Payment terms and conditions
- Warranty requirements
- After sales service/parts
> Plan, prepare, finalize and/or revise PPMPs
END-USERS
________ represent the public, the taxpayers who are interested in seeing to it that procurement laws are observed and irregularities are averted.
OBSERVERS
At leats _____ Observers shall be invited
3
At least _____ Observers shall be invited coming from:
- COA
- Duly recognized private group in the sector or discipline of the particular type of procurement involved
- Non-Government Organization (NGO)
3
RESPONSIBILITIES OF ________
- Prepare report (jointly or separately) indicating their observations on the procurement activities
- Submit report to the PE and furnish a copy to the GPPB and the Office of the Ombudsman/Resident Ombudsman.
- Immediately inhibit and notify in writing the PE of any actual or potential conflict of interest
OBERSERVERS
If no report is submitted by the observer within _____ calendar days after each procurement activity, then it is presumed that the bidding activity conducted by the BAC followed the correct procedure
7
C3 COMPOSITION
for ABC 1M (CO) / 5M (PC) & below
Chairman – Ex-O of PC or Asst Chief, CO
Member – Legal/Admin Officer where PC/CO is located
Member – Financial Analyst where PC/CO is located
Member – End-User
Secretary – Chief, Opn Br, PC/CO (F/Sgt )
FUNCTIONS OF _________
- Obtain Request For Quotations from Proponents
- Ensure all Eligibility Requirements are Met and Passed
- Review, Evaluate and Deliberate all Canvass Proposals
- Make Resolutions and Minutes of Conferences
- Prepare, Approve and Sign Abstract of Canvass
- Prepare Procurement Contracts
CANVASS CONTRACTING COMMITTEE (C3)
It is a method of procurement which is open to participation by any interested party and which consists of the following processes:
advertisement & posting, issuance of bidding docs, pre-bid conference, receipt and opening of bids, evaluation of bids, post-qualification, and award of contract. (Section 5(h), IRR of RA 9184)
COMPETITIVE BIDDING
5 ALTERNATIVE METHODS OF PROCUREMENT (Rule XVI, Section 48)
- LIMITED SOURCE BIDDING
- DIRECT CONTRACTING
- REPEAT ORDER
- SHOPPING
- NEGOTIATED PROCUREMENT
Section ____: LIMITED SOURCE BIDDING
Section 49
Section ____: Direct Contracting
Section 50
Section ____: Repeat Order
Section 51
Section ____: Shopping
Section 52
Section ____: Negotiated Procurement
Section 53
[ALTERNATIVE METHOD OF PROCUREMENT]
- Small Value Procurement
- Two Failed Biddings
- Emergency Cases
- Take-Over of Contracts
- Adjacent or Contiguous
- Agency-to-Agency
- Scientific, Scholarly or Artistic Work, Exclusive Technology and Media Services
- Highly Technical Consultants
- Lease of Real Property & Venue
- NGO Participation
- Community Participation
- UN Agencies, International Organizations of Financial Institutions
- Defense Cooperation Agreement
- Direct Retail Purchase of Petroleum Fuel, Oil and Lubricant (POL) Products and Airline Tickets
NEGOTIATED PROCUREMENT
Approved contract supported by the following documents which are required under COA Cir No 2009-001 dated 12 February 2009 and COA Memorandum No 2005-027 dated 28 February 2005 to be submitted to the Auditor’s Office within _____ days from the execution of the contract:
5
Proof of posting of invitation of request for submission of price quotation in the PhilGEPS website, website of the procuring entity, if available, and at any conspicuous place reserved for this purpose in the premises of the procuring agency for a period of _____ calendar days in the case of Shopping under Sec 52.1(b) and Negotiated Procurement under Sections 53.1 (two failed bidding) and 53.9 (small value procurement) of the Revised IRR of RA 9184
3
The method of procurement to be used shall be as indicated in the approved _____.
APP
If the original mode of procurement recommended in the _____ was public bidding but cannot be ultimately pursued, the BAC, through a resolution, shall justify and recommend the change in the mode of procurement to be approved by the _____. (Sec 48.3, RIRR of RA 9184)
APP
HoPE
The RFQ shall be sent to at least _____ suppliers, contractors, or consultants of known qualifications. However, during unforeseen contingencies requiring immediate purchase under Sec 52.1 (a) of the IRR, the RFQ may be sent to only _____ supplier. For Shopping under Sec 52.1(b), at least _____ price quotations must be obtained.
3 suppliers
1 supplier
3 price quotations
6 Primary Causes of Delays and Failure of Bidding
- Planning (50%)
- Low Number of Bidders (22%)
- Approval Process/Review Process (14%)
- Lack of Manpower (6%)
- Late of Release of SARO (5%)
- Inadequate Training/Varying Interpretation of Rules (3%)
Problems in Planning
- End users’ late submission of the PR [22%]
- Problems on Technical Specifications/TOR (Preference; Highly complex technical specifications or specialized goods) [17%]
- Poor Cost Estimates [11%]
TRUE or FALSE
[Small Value Procurement]
Post in PhilGEPS, PE’s websites and conspicuous place.
- Except 52.1a and ABC 50K and below
- Extend deadline if no/less quotation/proposal received
TRUE
SUPPLIER DELIVERY
___ days for Supplies
___ days for Aircraft Spares
___ days for Infra/Services
7 days
15 to 30 days
45 days
