DPWH Volume II - Intrastructure Main Guidelines
DPWH Volume II - Intrastructure Main Guidelines
PROCUREMENT MANUAL
VOLUME II - INFRASTRUCTURE
MAIN GUIDELINES
20 June 2016
TABLE OF CONTENTS
MAIN GUIDELINES
LIST OF TABLES:
LIST OF ANNEXES:
SECTION 1
INTRODUCTION
The Main Guidelines, Standard Bidding Documents and Standard Forms in Volume II are all
interrelated and complementary. Users are advised to refer first to the relevant provisions in the
Main Guidelines, then to the Standard Bidding Documents and Standard Forms to ensure clarity
and consistency in interpretation.
In case there are changes in the procedures, forms, policies, new circulars, amendments to the
Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184 (Government
Procurement Reform Act), Resolutions of the Government Procurement Policy Board (GPPB),
DPWH Department Orders and issuances in the future (i.e., after the approval of this original
Procurement Manual Volume II), the corresponding revisions shall be made in Section 9 of the
Main Guidelines of this Volume II entitled: Addenda on New Guidelines and Issuances. The
DPWH Procurement Service shall be responsible for updating the contents of the Procurement
Manual, whenever new issuances and guidelines are issued by the relevant Government
agencies. It shall maintain a database of these issuances and guidelines in the DPWH website.
Users are advised to refer to the last section of these Guidelines from time to time and as
needed.
Volume II covers all stages of infrastructure procurement, from procurement planning and
preparation of Bidding Documents, through the actual bidding activities, up to the award of the
contract to the winning contractor. For each procurement stage or step, the Manual lays down the
legal reference, the policies and guidelines to be followed, the format and content of the required
documents, and the procedure to be observed including the detailed activities, responsible
performers, time frames, and specific rules.
Volume II consists of the following four documents which ought to be used together:
DPWH Manual Volume II is generally consistent with the Generic Procurement Manual
(GPM) of Procedures for the Procurement of Infrastructure Projects, June 2006, prepared by the
Government Procurement Policy Board (GPPB), but the GPM has been customized into this
DPWH Manual Volume II to suit the particular procurement conditions and needs of the
DPWH. Moreover, this Manual Volume II reflects subsequent GPPB amendments to RA 9184-
IRR as well as DPWH Department Orders and other issuances pertaining to procurement.
The DPWH SBDs and SBFs in this Volume II are patterned after the Philippine Bidding
Documents (PBDs) for Infrastructure harmonized by the Government of the Philippines (GOP)
with the main International Financing Institutions (IFIs) – the Asian Development Bank (ADB),
the Japan International Cooperating Agency (JICA), and the World Bank (WB) – and prescribed
by the Government Procurement Policy Board (GPPB) for use by the Government in the
procurement of contracts through national competitive bidding. Foreign-assisted contracts to be
procured through international competitive bidding, however, shall follow the standard bidding
documents of the IFI concerned if so provided in the approved loan agreements.
The PBDs, however, have been customized and updated into the DPWH SBDs and SBFs in this
Manual Volume II to fit the specific procurement environment and requirements of this
Department and to incorporate the latest GPPB amendments to the IRR and DPWH issuances.
a. Infrastructure projects under the mandate of and directly financed and implemented by
the DPWH, e.g., national highways and flood control projects.
under the General Appropriations Act (GAA) and approved by the Head of the Procuring
Entity (HoPE).
b. “Approved Budget for the Contract” or “ABC” refers to the budget for the contract
duly approved by the HoPE, as provided for in the GAA, and continuing and automatic
appropriations, in the case of national government agencies (NGAs), such as the DPWH;
and the estimated contract cost in the case of foreign-funded procurement based on the
procurement plan consistent with the loan or grant agreement. For multi-year contracts,
for which a Multi-Year Obligational Authority (MYOA) is required, the ABC shall be
that incorporated in the project cost reflected in the MYOA issued for the purpose (IRR
Section 5b)). There are two types of ABC: (a) the Indicative ABC for inclusion in the
PPMP and the APP for budgetary purposes under the NEP, and (b) the Final ABC or the
revised and updated budget based on the approved budget under the GAA and approved
by the HoPE.
c. “Bidder” refers to a contractor competing for the award of a contract (IRR Section 5e).
In particular, the Bidder means, at different stages of the procurement process, the
following:
(1) “Prospective bidder,” from the posting of the Invitation to Bid (IB) to its acquisition
of the Bidding Documents (BDs);
(3) “Bidder with the Lowest Calculated Bid (LCB),” if determined as such by the Bids
and Awards Committee (BAC) concerned after the evaluation of bids;
(4) “Bidder with the Lowest Calculated Responsive Bid” (LCRB), if determined as
such by the BAC after post-qualification; and
(5) “Contractor” or “Constructor” if its Bid has been accepted by the DPWH and the
contract is awarded to it and is approved.
d. “Bidding Documents” or “BDs” refer to the documents issued by the Procuring Entity
as the basis for bids, furnishing all information necessary for a prospective bidder to
prepare a bid for an infrastructure project required by the Procuring Entity (IRR Section
5f).The Bidding Documents, as used in this Procurement Manual Volume II, consist of (i)
Invitation to Bid (IB), (ii) Eligibility Requirements (ER), (iii) Eligibility Data Sheet
(EDS), (iv) Instructions to Bidders, (v) Bid Data Sheet,(vi) General Conditions of
Contract, (vii) Special Conditions of Contract, (viii) Specifications, (ix) Drawings, (x)
Bill of Quantities, and (xi) Bidding Forms. The Bidding Documents take the following
specific forms:
(1) “Philippine Bidding Documents” or “PBDs” refer to the generic bidding documents
of the Government of the Philippines (GOP), prepared by the GPPB in accordance
with the provisions of the IRR of RA 9184, for use by all agencies of the
Government. The PBDs have been harmonized by the GOP with the procurement
guidelines of the Asian Development Bank (ADB), the Japan International
Cooperation Agency (JICA), and the World Bank (WB), for use in Government
(2) DPWH “Standard Bidding Documents” or “SBDs” refer to the pro-forma bidding
documents to be used by the DPWH as templates in the procurement of its
infrastructure contracts, without any contract-specific information. The SBDs are
essentially based on the PBDs but the latter has been customized to suit the particular
procurement environment and conditions of the DPWH.
e. “Bill of Quantities” refers to the tabulated form included in the Bidding Documents
containing (a) pay item numbers and descriptions, estimated quantities, and units of
measure provided by the Procuring Entity and (b) unfilled columns for corresponding
unit bid prices and amounts to be quoted by the bidder.
g. “Contract ID” is a unique identifier for the contract which is created during
advertisement of a project, and sourced from the Civil Works Registry (CWR).
j. “Implementing Unit” or “IU” is the specific entity within the IO that is responsible for
executing and managing the infrastructure contract, which is usually carried out by a
contractor. The IU, for example, may be any of the following entities:
infrformatin technology projects, 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. To be classified as
a cpital outlay roject, the works must extend the life of the asset by more than a year. The
term “infrastructure project” has the same meaning as and is used interchangeably with
the term “civil works” or “works” (IRR Section 5u)).
l. “Infrastructure Project ID” or “Project ID” is a unique identifier defined when the
project is first identified as a potential project, and is carried internally throughout the life
cycle of the project. It is composed of the letter “P” followed by an 8-character code
followed by an island code, e.g., P00000001LZ represents project number 1 in Luzon.
The Project ID corresponds to a line item in the GAA. The GAA line item is identified by
a Unified Accounts Code Structure (UACS) code assigned by the Department of
Budget and Management (DBM) and provided by the DPWH Planning Service. The
same Project ID is used by other systems in the DPWH, including the Multi-Year
Planning System (MYPS), the Project and Contract Management Application, and
electronic Project Life Cycle (e-PLC) application.
m. “Procurement,” in this Manual Volume II, refers to the contracting of works by the
Procuring Entity. In case of projects involving mixed procurements – i.e., goods,
consulting services, or infrastructure projects - the nature of the procurement shall be
determined based on the primary purpose of the contract (IRR Section 5aa).
SECTION 2
Proper preparation for the procurement of infrastructure projects takes for greater efficiency and
efficacy. It enables the DPWH procurement officials concerned to anticipate the onset of
procurement events and, as a consequence, better calibrate their responses to those events.
Having a better appreciation of forthcoming events gives these officials the opportunity to test a
range of possible courses of action, choose the best and most feasible of these, and identify
measures to put them into action. Ultimately, it enables them to determine the best manner by
which these measures are to be implemented, ensuring that their individual and collective
impacts are optimized at the least cost.
Preparing for the procurement of infrastructure projects basically involves three major activities:
a. Procurement Planning
c. Conduct of Procurement
These activities are discussed in detail in the following Sections of this DPWH Procurement
Manual Volume II.
PREPARATION OF BIDDING
PROCUREMENT PLANNING CONDUCT OF PROCUREMENT
DOCUMENTS (BDs)
SECTION 3
PROCUREMENT PLANNING
b. The projects to be procured under the APP of the Procuring Entity must fall within the
approved infrastructure program funded by the DPWH annual budget.
c. The Procuring Entity must consolidate into the APP the Project Procurement
Management Plans (PPMPs) for the different infrastructure projects proposed for
procurement by the Entity during the year.
d. Before any contract for an infrastructure project is procured, it must be supported by the
following prerequisites:
(1) Completed and duly approved Detailed Engineering Design or DED for the project.
(2) Completed and duly approved Bidding Documents for the contract.
(3) Provision of funding for the project in the DPWH Budget in the National
Expenditures Program (NEP)/General Appropriations Act (GAA).
(4) Right-of-Way (ROW) Acquisition Plan or Land Acquisition Plan and Resettlement
Action Plan (LAPRAP) for the project. In case of projects with pending acquisition of
ROW, the procurement process may commence, but no award of contract shall be
made until an authority or permit to enter is issued by the property owner, or a
notarized deed of sale or deed of donation is executed in favor of the government, or
a writ of possession is issued by a court of competent jurisdiction, as the case may be
(IRR Section 17.6).
e. The Procuring Entity must package contracts into scopes and sizes such that:
(1) each contract covers a complete functional structure or facility (e.g., roadway with
drainage, slope protection, and road safety devices), including all design features in
accordance with the DPWH Design Guidelines, Criteria and Specifications and with
Department Order (DO) No. 11, series of 2015;
(2) the contract packages promote adequate competition and, thus, are sufficiently
commercially attractive and viable to, and within the capability of, a reasonable good
number of competing contractors, preferably numbering at least three;
(3) the contracts will have a significant impact on the users and beneficiaries; and
(4) the contract packages are within the capacity of the Procuring Entity to efficiently
procure, manage, monitor and supervise the implementation thereof.
For this purpose, clustering of small projects into larger contracts- e.g., groups of school
buildings/wells/short road segments, or related multi-sectoral projects (e.g., roads and
flood control) by area - should be considered where feasible, without prejudice to
providing adequate work opportunities to the smaller contractors. The Implementing Unit
(IU) concerned, in coordination with the Planning Unit (i.e., Planning Service/Regional
Planning and Design Division/District Planning and Design Section), shall recommend
the packaging of projects in the NEP/GAA into suitable contracts.
f. Every major infrastructure project which has an implementation period of more than one
year shall be procured through a multi-year contract covering its entire scope and total
cost up to completion. The scope of the contract must cover a complete stand-alone
infrastructure facility which is safe, strong, and usable or functional to the end-user (e.g.,
complete bridge or dike). Funding to cover the entire multi-year contract must be
provided through a Multi-Year Obligational Authority (MYOA). Splitting of such a
project into single-year contracts, each of which cannot stand alone or is unsafe, unstable,
or non-usable to the end-user, shall not be allowed (IRR Section 54.1 and Annex A).
This is to ensure continuity in funding and implementation of the entire complete usable
project until its completion, and to provide for a single point of responsibility for the
project execution by one contractor only. The implementation schedule and annual
funding requirements of proposed multi-year projects must be based on the DPWH
Medium Term Infrastructure Program.
g. In preparing the PPMPs and APP, each Procuring Entity – i.e., CO/RO/DEO - shall set its
procurement targets in terms of total number and sizes of contracts that it will procure
during the year, and shall reflect these in its APP. The Procurement Service shall monitor
the performance of the Procuring Entity against these targets using appropriate
measurable indicators (See Section 5 of this Manual Volume II).
h. The following procedure shall be observed in preparing the PPMPs and the APP to
ensure the linkage between procurement planning and budgeting:
(1) Upon issuance by the DBM of the Budget Call, each Procuring Entity, based on the
DPWH Budget Proposal for the incoming year to be submitted to the DBM for
inclusion in the NEP which includes the proposed funding of the projects in the
DPWH infrastructure program for that year, shall cause each Implementing Unit (IU)
to prepare not later than 01 August its Indicative PPMP by project for the coming
year. The IU shall submit this Indicative PPMP to the Budget Officer of the Entity for
confirmation as to the inclusion of the project in the Entity’s Budget Proposal. The IU
shall then forward the PPMP to the BAC for approval, through its Secretariat (IRR
Section 7.3.4). In doing so, all concerned offices of the Procuring Entity must fully
abide by the policies and guidelines in Section 3.2 a to f above.
(2) The BAC, through its Secretariat, shall consolidate the Indicative PPMPs of all
projects into the overall Indicative APP for the Procuring Entity, and submit this to
the HoPE for approval by 30 September (IRR Section 7.3.1 and 7.3.4).
(3) Within fifteen (15) days after the approval of the incoming General Appropriations
Act (GAA) – usually around December/January - the IUs shall revise their Indicative
PPMPs into the Final PPMPs to reflect the authorized budget allocations for their
respective projects consistent with the GAA. The BAC for the Procuring Entity,
through its Secretariat, shall consolidate the Final PPMPs into the Final APP for the
Entity and submit the latter to the HoPE for approval (IRR Section 7.3.5).
i. As stated in Section 3.1.3 of Volume I of the DPWH Procurement Manual and provided
in RA 9184-IRR Section 7.4, in order to facilitate the procurement of infrastructure
contracts, the Procuring Entity may, with prior clearance from the DPWH Secretary, even
pending approval of the GAA, undertake advance procurement activities, but short of
award. In this case, the procurement shall be based on the Indicative APP reflected in the
DPWH Budget Proposal included in the NEP for the coming year. For a single-year
contract, the Indicative ABC used in the Indicative APP shall be the budget estimate for
the contract as reflected in the NEP for the budget year. For a multi-year contract, the
Indicative ABC shall be the estimated total cost of the contract until its completion,
which is covered by a MYOA, which also shows the portion of the ABC to be disbursed
for the budget year as reflected in the NEP for that year. The Procuring Entity shall award
the contract only when the Certificate of Availability of Funds has been issued
corresponding to the Final ABC shown in the Final APP, consistent with the approved
GAA and, if applicable, the MYOA.
The PPMP shall contain the following information (IRR Section 7.3.2):
(1) Completed and duly approved DED for the Project, including an Environmental
Impact Statement (in accordance with Section 3.5).
(2) Completed and duly approved Bidding Documents for the Contract (in accordance
with Section 4).
(3) Funding of the Contract under the DPWH Budget in the NEP/GAA.
(4) ROW Acquisition Plan (LAPRAP), including the requirement to secure at least a
permit to enter issued by the property owner, or a notarized deed of sale or deed of
donation executed in favor of the government, or a writ of possession issued by a
court of competent jurisdiction, as the case may be (in accordance with Section 3.5).
With respect to item a of this Section 3.3, before the approval of the GAA, the Implementing
Office (IO), through its Procurement Unit, shall assign the “Procurement ID” for the proposed
contract in the Indicative PPMP. This Procurement ID shall be cross-referenced to the Project ID
assigned by the DPWH Planning Service corresponding to the Program/Project/Activity (PPA)
line item in the NEP.
Once the GAA is approved, the Procuring Entity, through its Procurement Unit, shall assign the
“Contract ID” – in place of the Procurement ID – which shall be reflected in the Final PPMP.
The Contract ID shall be cross-referenced to the Project ID which corresponds to a line item in
the GAA. The GAA line item is identified by a Unified Accounts Code Structure (UACS) code
assigned by the DBM and provided by the DPWH Planning Service.
The relationship of a Contract with a Project line item in the GAA may fall under any of the
following three cases:
b. The Contract covers two or more Project line items in the GAA.
c. The Contract covers one of several Components of a Project line item in the GAA.
With regard to item c of this Section 3.3, before the approval of the GAA, the IO shall include
the Indicative ABC in the Indicative PPMP and APP based on the NEP. Upon the approval of the
GAA, the IO and the Procuring Entity shall include the Final ABC in the Final PPMP and APP
consistent with the appropriations in the GAA.
The Procurement Unit shall ensure that the abovementioned process is consistent with the
DPWH Project and Contract Management Application (PCMA) under DPWH DO 06, series of
2015.
Changes to the individual PPMPs, as well as the consolidated APP, for each Procuring Entity
may be undertaken every six (6) months or as often as may be required by the HoPE. The
respective IUs shall be responsible for the changes to the PPMPs (IRR Section 7.6).
e. Fund Source.
The provisions of Section 3.3 (PPMP) pertaining to the Procurement/Contract ID and the ABC
shall also apply to the APP.
If changes are made in the individual PPMPs as mentioned in Section 3.3, the Procuring Entity
shall make corresponding changes in the consolidated APP every six (6) months or as often as
may be required by the HoPE. The BAC Secretariat shall be responsible for the consolidation of
the changed PPMPs into the Revised APP, which shall be subject to the approval of the HoPE
(IRR Section 7.6).
The Procuring Entity shall submit the Indicative/Revised/Final APP for the budget year,
including any changes thereto, to the GPPB in July of the current budget year and in January of
the following budget year (IRR Section 7.6).
“Feasibility studies should be carried out on those Road Network Development projects that
involve significant capacity improvements and land acquisition, particularly bypasses,
flyovers, interchanges, missing gaps and new roads. Pre-feasibility evaluations of large
road and/or bridge projects should be conducted where there is likely to be a requirement for
considerable investment and/or risk. These preliminary studies can provide an initial
analysis of the economic and technical viability before proceeding to feasibility study stage
and should be completed several years before anticipated implementation. The objective of
pre-feasibility studies should be to facilitate the decision to invest in a full feasibility study,
especially where considerable resources and an Environmental Impact Assessment are likely
to be required.”
The Procuring Entity shall conduct the Detailed Engineering Design (DED) for the project after
the acceptance and approval of the PFS/FS.
The Procuring Entity shall initiate the procurement of an infrastructure contract only after the
DED for the project, covering technical investigations, surveys and designs including an EIS, as
well as the availability of a ROW Acquisition Plan or Land Acquisition Plan and Resettlement
Action Plan (LAPRAP), has been sufficiently carried out in accordance with the standards and
specifications prescribed by the DPWH and consistent with the provisions of Annex “A” of the
IRR. The exception to this requirement is a design-and-build scheme, as discussed in Section 4.1
of this Manual Volume, where bidders are allowed to submit their preliminary engineering
designs as part of their bids and, once awarded the contract, shall prepare the DED preparatory to
actual construction (IRR Section 17.6).
a. Performed in-house by the Procuring Entity through its specialized office – the Bureau of
Design in the Central Office, or the Planning and Design Division/Section in the
Regional/District Engineering Office – within its technical capacity to do so.
The rule-of-thumb, based on experience and good practice, is that the budget for an adequate
DED should be around 3-6% of the estimated construction cost.
Unless otherwise provided by subsequent DPWH DOs and other issuances, the DED for the
project shall include the following activities to be undertaken by the concerned entities:
a. Setting of Design Standards – Design standards applicable to the project shall be set by
the DPWH based on the following guidelines and codes, among others:
(1) DPWH Design Guidelines, Criteria and Standards (Orange Book)), revised edition,
2015.
(2) American Association of the State Highway and Transportation Officials (AASHTO)
Standard Specifications for Highways and Bridges, latest edition.
(4) Technical Standards and Guidelines for Planning and Design of Flood Control and
Sabo Works, Volumes I and II, March 2002, by the Flood Control and Sabo
Engineering Center, DPWH.
(5) National Building Code of the Philippines and its Implementing Rules and
Regulations, as amended.
(8)Gender and Development (GAD) Tool Kit for Making Road Infrastructure Projects
Gender Responsive, DPWH and World Bank, August 2011.
b. Conduct of Field Surveys and Investigations – Field engineering and technical surveys
and investigations necessary for the detailed engineering design of the project shall be
undertaken, which may include aerial, topographic, hydrographic, hydrologic, geological,
geotechnical (soils and foundation investigation and analysis), construction materials, site
or right-of-way, parcellary, environmental, and other surveys. These shall be carried out
in accordance with the guidelines, criteria and standards adopted by the DPWH as cited
in item a above. All survey and investigation works shall be done so as to provide input
data for the design and production of plans that will permit quantity estimates to be made
within plus or minus five to ten percent (5-10%) of the final quantities of the completed
structure.
c. Conduct of Design Analyses, and Preparation of Design Plans and Design Report – These
shall conform to the DPWH design guidelines, criteria and standards stated in item a
above.
d. Preparation of Contract Plans – Contract plans shall be prepared for the project at hand in
accordance with guidelines and standards adopted by the DPWH, as cited in item a
above, incorporating at least the following:
(4) Structural plans at appropriate scales indicating all details necessary in order that the
complete structure can be set out and constructed
g. Preparation of Cost Estimates and Proposed Approved Budget for the Contract – A
Detailed Unit Price Analysis (DUPA) shall be undertaken based on DPWH Guidelines.
The Standard Pay Items provided in the PCMA shall be adopted. Using the results of the
DUPA, the proposed Approved Budget for the Contract (ABC) shall be prepared to be
subsequently used as the basis for the Indicative/Final ABC to be included in the Project
Procurement Management Plan (PPMP) as a prerequisite for the procurement. The
preparation of the ABC is further discussed in Section 3.5.4 of this Manual Volume II.
h. Preparation of Program of Work including Schedule – The program of work (POW) must
include estimates of the work items, quantities and costs, the general methods,
arrangements, order and timing of the project activities, including an appropriate
scheduling method, e.g. a Program Evaluation and Review Technique/Critical Path
Method (PERT/CPM), Precedence Diagram Method (in accordance with DO 133, series
of 2015), bar chart with S-curve. The POW should cover the ABC plus all other expenses
directly related to the project – e.g., ROW acquisition or LAPRAP implementation,
government-furnished materials and equipment, and engineering and supervision
expenses of the IO. The preparation of the LAPRAP is further discussed in items j and k
below.
i. Determination of Contract Packages. The DED shall comply with the policies and
guidelines for preparing contract packages provided in Section 3.2 to ensure that each
contract provides for sufficient competition, is commercially attractive to contractors,
efficient and manageable to implement and supervise, and will have a substantial technical
and economic impact. This applies even to a project to be implemented by phase or
contract, where the Procuring Entity must provide a clear delineation of work between
phases, each of which must cover a usable and structurally sound stand-alone facility
(IRR Section 54.1 and Annex A).
The DPWH shall work together with the concerned Local Government Units (LGUs) and
the National Housing Authority in preparing and implementing the LAPRAP.
The LAPRAP should provide that, as a condition for contract award, the Procuring Entity
must obtain at least a permit-to enter into the ROW issued by the affected property
owners, or a notarized deed of sale or deed of donation executed in favor of the
government, or a writ of possession issued by a court of competent jurisdiction, as the
case may be. With the permit-to-enter, the Procuring Entity shall ensure that the affected
area is cleared of occupants and obstructions. Ultimately, the Procuring Entity shall be
responsible for the timely payment of appropriate compensation and settlement of other
entitlements to the property owners and families affected by the ROW in accordance with
existing laws and regulations.
k. Preparation of Utilities Relocation Plan – As part of the LAPRAP, and where necessary,
a Utilities Relocation Plan shall be prepared. This shall cover the removal and relocation
of electric, water, sewerage, telephone, drainage, and other utilities within the estimated
construction limits of the project according to a schedule agreed with the concerned
utility companies. In the case of road widening, the utility companies shall be responsible
for removing and relocating their affected utilities from the existing ROW at their own
cost.
The DPWH Social and Environmental Management System (SEMS) Manual shall be
used as template in the conduct of the EIS.
The Procuring Entity shall submit the EIS/IEE, together with an application for
Environmental Compliance Certificate (ECC) or Certificate of Non-Coverage (CNC), to
the DENR. The Procuring Entity shall ensure that the ECC/NCC shall be available prior
to contract award.
(2) Equipment productivity and efficiency rates – e.g., work output per hour – based on
industry standards and experience.
(3) Equipment cost (capital and operating) per unit of work output and rental rates.
The utilization and operation of equipment in the contract works shall conform to the
approved technical specifications – e.g., DPWH Blue Book.
function, performance, and safety. Based on this analysis, VE shall identify the most
cost-effective scheme. In conducting VE, the Procuring Entity shall observe the DPWH
Guide to Value Engineering given in Appendix 2.1.
p. Contract Time or Duration – The proposed contract time in calendar days for the project
at hand shall be calculated considering the type and magnitude of the work to be done
and construction industry standards. To estimate the contract time, the number of
working days required to complete the works is first determined through an appropriate
scheduling method (e.g., PERT/CPM, Precedence Diagram Method) of the project
activities. Then, added to this will be (1) the non-working days (Sundays and holidays)
and (2) the estimated number of rainy/unworkable days considered unfavorable for
implementing the works at the site based on the records of the Philippine Atmospheric,
Geophysical and Astronomical Services Administration (PAGASA). Item (2) shall be
made known before the date of bidding through the Instructions to Bidders (ITB) for the
purpose of guiding both the Government and winning contractor in taking action on
requests for time extensions. The contract duration shall comply with the provisions of
DPWH DO 159, series of 2015, DO 141, series of 2014, and DO 71, series of 2013.
q. Warranty Period after Acceptance of the Completed Works – The warranty period shall
be specified depending upon the type of project in accordance with the provisions of
Section 62 of the IRR of RA 9184, i.e., 15 years for permanent structures, 5 years for
semi-permanent structures, and 2 years for other structures.
The above rules shall apply to the implementation of infrastructure projects under normal or
ordinary conditions. However, under emergency or extraordinary cases involving major
calamities and disasters as declared by the President of the Philippines, where time is of the
essence to save lives and properties and restore damaged infrastructures, detailed engineering
shall be conducted in accordance with the guidelines and procedures prescribed by the DPWH
Secretary and approved by the Infrastructure Committee of the National Economic and
Development Authority (NEDA) Board. This will enable quick response in such cases, while
maintaining the safety and integrity of the structure.
The DPWH shall implement, at the Central, Regional, and District Offices, a system for the
review, audit and improvement of the quality of detailed engineering outputs to ensure that they
conform to the prescribed design standards and will allow estimates of quantities to be made
within plus or minus five to ten percent (5-10%) of the final values of the completed structure.
The survey and design data of structural components that are prone to significant overstatement
and variation, such as earthworks and base course, shall be especially scrutinized to assure the
integrity of the design and estimates.
Based on the Detailed Engineering, particularly the Proposed ABC prepared therein as discussed
in Section 2.3.3, the IU concerned shall prepare and recommend the Indicative/Final
ABC(depending on whether the ABC is based on the NEP/GAA) in accordance with DO 22,
series of 2015. In either case, the ABC shall be supported by a Program of Work (POW),
including a Detailed Unit Price Analysis (DUPA) to be undertaken in accordance with the
guidelines of the DPWH. These offices shall use the standard Form DPWH-03 in preparing and
presenting the POW, ABC, and DUPA as prescribed in DO 163, series of 2015.
The Indicative/Final ABC shall be reviewed the concerned Construction Unit - i.e., the Bureau of
Construction in the CO, the Construction Division in the RO, and the Construction Section in the
DEO - and submitted to the HoPE for approval.
It should be noted that the ABC is usually not the same as, but only a component of, the Project
Cost. The Project Cost normally includes the ABC plus other expense items related to the
project, such as ROW acquisition, detailed engineering, construction supervision, project
management and overhead expenses of the Implementing Office (IO).
Pending the approval of the GAA, as stated in Section 2.3, the Indicative ABC based on the
DPWH budget proposal in the NEP and consistent with the Indicative PPMP and Indicative APP
shall be used in order to proceed with the advance procurement of the project, as provided in
Section 3.2-i. Once the GAA is approved, the Final ABC shall be adopted consistent with the
appropriations in the GAA.
For a single-year contract, the Indicative/Final ABC shall be within the appropriations for the
project as provided for in the NEP/GAA and consistent with the Indicative/Final PPMP and
APP.
For a multi-year contract, as mentioned in Section 3.2-f, the project must be included in the
DPWH Medium-Term Infrastructure Program. The Indicative/Final ABC for a multi-year
contract must cover its entire scope and total cost up to completion. The scope of the contract
must include a complete stand-alone infrastructure facility which is safe, strong, and usable or
functional to the end-user. The Final ABC must be covered by a MYOA issued by the DBM
which shall authorize the Procuring Entity to enter into a multi-year contract for the project, and
which shall certify that the funds to cover the total multi-year contract cost shall be included in
the annual budget proposals of the DPWH, within its budget ceilings, subject to approval by
Congress of the annual appropriation of the funds for the project through the GAAs.
The Procuring Entity shall use the ABC as the ceiling for accepting bids and awarding the
contract. The ABC shall not exceed the approved appropriation for the project in the GAA or, in
the case of a multi-year contract, the total contract amount given in the MYOA.
Since the ABC is the ceiling for accepting bids, the entity preparing the proposed ABC as part of
the Detailed Engineering, as well as the IU, and other offices subsequently preparing, reviewing,
and approving the Indicative/Final ABC, must formulate and adopt the ABC from the point of
view of the prospective bidder-contractor. As such, these offices must take into account all
relevant and legitimate factors that the bidder-contractor will and must consider in arriving at its
estimate of the cost that it will incur to implement the contract.
Hence, the concerned entities/offices shall consider the following factors in preparing the ABC:
a. Approved DED and Bidding Documents for the contract, which contain, among other
things, the plans, specifications, work pay items and quantities to be used by the
contractor in preparing his bid.
b. Applicable and cost-effective construction methods and sequencing of activities for the
project, considering construction industry norms and practices.
c. Appropriate size and composition of labor crew, type and number of equipment, and
construction materials corresponding to the construction method and sequencing of
activities.
d. Realistic production and efficiency rates for construction equipment and labor,
considering industry norms and empirical data.
f. Market prices of component labor, materials and equipment and monitored as-built costs
of contract work items.
g. Reasonable risks and contingencies, cost of money, projected inflation, and other relevant
and legitimate cost items to be incurred by the contractor.
g. Compliance with DO No. 22, series of 2015, providing guidelines in preparing the ABC.
h. Rule-of-thumb or benchmark unit costs normally used in the construction sector –e.g.,
cost per kilometer of concrete road, cost per square meter of building, cost per cubic
meter of earthwork, etc. – for similar or comparable contracts or work items, as a quick
and rough check if the ABC is within the “ballpark.”
As basic reference in preparing the ABC, the Procuring Entity shall refer to the construction cost
database and price monitoring system of the Bureau of Construction (BOC), which covers
market prices of materials, contract pay items, as-built costs, and related data. To achieve
realistic and reliable ABCs, the Procuring Entity shall also develop and use trained agency
estimators and quantity surveyors under the guidance of the BOC.
and Bridges, revised 2013, Standard Specifications for Public Works, 1995, and approved
Special Specifications for the project, and shall be consistent with the Standard Pay Items
provided in the PCMA.
As provided in DO 22, series of 2015, the ABC shall be composed of the Estimated Direct Cost
and the Estimated Indirect Cost and shall be calculated in accordance with the following
guidelines.
(1) Cost of materials to be used in doing the work item called for, which shall include,
inter alia, the following:
(e) Allowance for waste and/or losses, not to exceed 5% of materials requirement.
(a) Salaries and wages, as authorized by the Department of Labor and Employment.
(b) Fringe
benefits, such as vacation and sick leaves, benefits under the Workmen’s
Compensation Act, Social Security System (SSS) contributions, allowances, 13th
month pay, bonuses, etc.
(1) Overhead Expenses– range from five to eight percent (5-8%) of the EDC, which
include the following:
(c) Office Expenses, e.g., for office equipment and supplies, power and water
consumption, communication and maintenance.
(2) Contingencies– range from five-tenths to three percent (0.5-3.0%) of the EDC. These
include expenses for meetings, coordination with other stakeholders, billboards
(excluding Project Billboard which is a pay item under General Requirements), stages
during ground breaking and inauguration ceremonies, and other unforeseen events.
(3) Miscellaneous Expenses– range from five-tenths to one percent (0.5-1.0%) of the
EDC. These include laboratory tests for quality control and plan preparation.
(4) Contractor’s Profit Margin– shall be eight percent (8%) of the EDC for projects with
an EDC of more than PhP5Million and ten percent (10%) for projects with an EDC of
PhP5Million and below.
Estimates for Overhead, Contingencies and Miscellaneous or OCM (items b(1), b(2) and
b(3)) and Profit (item b(4)), as percentages of the EDC, shall not exceed the following
amounts for different cost ranges:
(5) Value Added Tax (VAT) Component– shall be five percent (5%) of the sum of the
EDC, OCM and Profit.
(6) The following items shall not be subjected to OCM and Profit mark-up:
(7) The following non-civil works items shall not be subjected to OCM mark-up:
(d) Photographs
Since the contract cost is fixed, the Procuring Entity must first estimate the base cost of the
works as of a certain date. Next, the Procuring Entity must apply to this base cost the estimated
inflation factor to cover the projected increases in construction prices over the procurement and
implementation period, since the cost estimate is usually done several months ahead of the
bidding date and because construction works may take more than one year. The Procuring Entity
shall refer to the NEDA and the Philippine Statistics Authority (PSA) for estimates of likely
inflation rates applicable to the contract.
If the project or contract has a foreign exchange component, a currency valuation adjustment
factor may be adopted to hedge against any foreign exchange rate fluctuations between the
planning phase and the procurement and implementation stages. To determine the factor to be
used, the IU may refer to estimates and forecasts of the Bangko Sentral ng Pilipinas (BSP).
SECTION 4
a. Scope of work, approved budget, duration, and expected outputs of the proposed contract.
b. Minimum legal, technical, and financial requirements that the bidder must meet to be
eligible to bid.
c. Documents and other requirements that the bidder must include in its bid.
d. Process and rules for the submission and receipt of bids, evaluation of bids, post-
qualification, and award of contract.
e. Terms and conditions of the contract between the winning bidder and the DPWH,
including their prospective obligations.
In all stages of the preparation of the Bidding Documents, the Procuring Entity shall ensure equal
access to information. Prior to their official release to prospective bidders, no aspect or part of
the BDs shall be divulged or released to any prospective bidder or person having direct or
indirect interest in the project to be procured, or to any party, except those officially authorized
in the handling of the documents (IRR Section 19).
The BDs for the specific contract to be procured shall consist of the following:
For each contract to be procured, however, the Procuring Entity shall insert in the SBDs the
information particular to that contract, particularly in the IB, EDS, BDS, SCC, Specifications,
Drawings, and BOQ, in order to produce the complete contract-specific BDs.
The specifications and other terms in the contract-specific BDs shall reflect minimum
requirements for the contract. A bidder may submit a superior offer which exceeds the minimum
requirements. In the evaluation of the bids, however, no premium or bonus must be given as a
result of this superior offer (IRR Section 17.4). This rule is based on the nature of the procedure
used to evaluate the technical proposals – a “pass/fail” method – such that the presence or
absence of the minimum technical requirements is the sole basis for determining technical
compliance. After having established compliance with the minimum technical specifications, the
next factor to consider would then be the price or financial bid.
a. BAC, as Lead
c. IU
d. Consultants, if any
e. BAC Secretariat
4.7.1 Purpose of IB
The Invitation to Bid (IB) shall serve as the notice to interested contractors and to the general
public and other interested parties of the proposed procurement for a specific contract of the
Procuring Entity. It shall also provide basic information that will enable prospective bidders to
decide whether or not to participate in the procurement at hand.
a. Procurement/Contract ID, name and location, brief description of the type, size, major
items and other important or relevant features of the works.
c. Source of funding.
d. Contract duration.
e. Statement that the bidding is conducted in accordance with RA 9184 and its IRR.
f. General statements of the criteria to be used for the Eligibility Check, examination and
evaluation of bids, post-qualification, and award.
g. Date, time, deadline, and place and websites for the issuance/downloading of Bidding
Documents, Pre-Bid Conference, receipt of bids, and opening of bids.
i. Reservation for the Procuring Entity to accept/reject any/all bids or annul the bidding
process without any liability to the bidders.
j. Name, address, telephone number, fax number, email and website addresses of the
concerned Procuring Entity and its designated contact person.
4.8.1 Purpose of ER
The Eligibility Requirements (ER) shall define the legal, technical, and financial criteria that a
prospective bidder for an infrastructure contract must meet in order to be declared by the DPWH
as eligible for the contract (IRR Section 23).
4.8.2 Content of ER
The Procuring Entity shall use the standard ER shown in ANNEX II-1.1B which contains the
following set of requirements for the eligibility of a prospective bidder to bid for a particular
contract (IRR Section 23.1):
(a) Registration certificate from the Securities and Exchange Commission (SEC)
in the case of a Partnership or Corporation, or from the Department of Trade
and Industry (DTI) in the case of a Single Proprietorship, or from the
Cooperatives Development Authority in the case of a cooperative.
(c) Tax Clearance per Executive Order (EO) No. 298, series of 2005, as finally
reviewed and approved by the Bureau of Internal Revenue (BIR).
(a) Valid PCAB license applicable to the type and cost of contract to be procured.
In the case of a proposed joint venture (JV), during the registration with the
CWR, only the individual licenses of all members of the JV are required.
(During the bidding, a PCAB Special JV license shall be required as part of
the Technical Proposal of the bid to be submitted by the JV, unless otherwise
provided in the procurement of foreign-assisted contracts.)
(b) Record of the prospective bidder’s completed contracts, both government and
private, including the following information for each contract:
(b) The prospective bidder’s computation for its Net Financial Contracting
Capacity (NFCC).
To facilitate determination of eligibility, the BAC of a Procuring Entity shall use the
contents of the PhilGEPS electronic registry of contractors (IRR Section 23.3).
All bidders shall maintain a current and updated file of their Class “A” Documents,
and shall submit the PhilGEPS Certificate of Registration and Membership to the
Procuring Entity, in lieu of the said Documents. In case such PhilGEPs Certificate
covers only part of the Class “A” Documents, the contractor shall be required to
submit to the DPWH Procuring Entity all other documents under the above ER which
are not covered by the said Certificate. For foreign bidders, the foregoing documents
may be substituted by the appropriate equivalent documents in English, if any, issued
by the country of the bidder concerned. These documents shall be accompanied by a
Sworn Statement in a form prescribed by the GPPB stating that the documents
submitted are complete and authentic copies of the original, and all statements and
information provided therein are true and correct (IRR Section 8.5.2).
Valid joint venture agreement (JVA) in accordance with RA 4566 and its IRR, in case
the joint venture is already in existence. In the absence of a JVA, duly notarized
statements from all the potential joint venture (JV) partners shall be included in the
bid, to the effect that they will enter into and abide by the provisions of the JVA in
the event that the bid is successful. Failure to enter into a JV shall be a ground for the
forfeiture of the Bid Security. Each partner of the JV shall submit the PhilGEPS
Certificate of Registration in accordance with Section 8.5.2 of the IRR of RA 9184.
The submission of technical and financial eligibility documents by any of the JV
partners constitutes compliance. The partner submitting the NFCC shall likewise
submit a statement of all of its on-going contracts and audited financial statement.
Validation by the BAC of the information and data in the submitted Class “A” and Class
“B” Documents is required only for the identified Lowest Calculated Bid and this is done
during the period of its post-qualification.
As discussed in Section 5.6.8 (Eligibility Check) of this Manual Volume II, upon receipt
of the Class “A” and Class “B” Documents under its CCASR from a bidder for a specific
contract that is not yet registered in the CWR, the BAC of the Procuring Entity, through
its Procurement Unit/Secretariat, shall immediately encode and enter the appropriate
information therein into the CWR. At the same time, the BAC, through its Secretariat,
shall submit a hard copy of the CCASR to the DPWH Procurement Service for record
purposes.
The bidders’ information so entered in the CWR will be used by the BAC in conducting
the Eligibility Check as discussed in Section 5.6.8.
Although prior registration of bidders/contractors with the CWR is not a prerequisite for
the submission of bids for specific contracts, and while bidders may submit their Class
“A” and Class “B” Documents, together with their CCASR, simultaneously with their
bids, the DPWH encourages contractors to submit these Documents to the DPWH
Procuring Entities or the Procurement Service as early as possible, even without
reference to any specific contracts. This will greatly facilitate the bidding process,
particularly the Eligibility Check, and the management of the CWR database.
Without interrupting the bidding process for any specific contract, the DPWH
Procurement Service shall enroll new contractors in the CWR, using their CCASR, with
the accompanying Class “A” and Class “B” Documents, transmitted by the Procuring
Entities or submitted directly by the contractors. The Procurement Service shall generate
the Contractor’s Registration Certificate or CRC (Form DPWH-INFR-06) and the
accompanying Contractor’s Information or CI (Form DPWH-INFR-07) upon approval
of the application of registration. The CRC will state that the contractor is recognized to
undertake specific types of civil works projects with their respective cost ranges. The CI
will show part of the eligibility data required in this Section, particularly the contractor’s
capability in terms of its legal aspects (SEC/DTI/CDA Registration, Mayor’s/Business
Permit, BIR tax clearance, etc.), financial aspects (total and current assets and liabilities,
net worth, and annual turnover), and technical aspects (PCAB license, classification and
validity, completed and on-going projects with nature, costs, and status).
In the registration of contractors in the CWR, the Procuring Entity shall follow the
procedure given in Table 2:
(b) A partnership duly organized under the laws of the Philippines and of which at least
seventy five percent (75%) of the interest belongs to citizens of the Philippines.
(c) A corporation duly organized under the laws of the Philippines and of which at least
seventy five (75%) of the outstanding capital stock belongs to citizens of the
Philippines.
(e) Persons/entities forming themselves into a joint venture (JV) for a particular contract,
provided that (i) Filipino ownership or interest in the JV concerned shall be at least
seventy-five (75%); (ii) JVs in which Filipino ownership or interest is less than
seventy-five percent (75%) may be eligible where the structures to be built require the
application of techniques and/or technologies which are not adequately possessed by
a person/entity meeting the seventy-five percent (75%) Filipino ownership
requirement; and (iii) in the latter case, Filipino ownership or interest shall not be less
than twenty-five percent (25%). For this purpose, Filipino ownership or interest shall
be based on the contributions of each of the members of the JV as specified in their
joint venture agreement (JVA).
The prospective bidder must possess a valid license issued by the Philippine
Contractors’ Accreditation Board (PCAB) in accordance with the provisions of RA
4566 (IRR Section 23.5.2.3) for the Allowable Range of Contract Cost (ARCC)
applicable to the type and cost of the contract to be bid, as shown in Table 3.
For the particular contract to be procured, the Procuring Entity must specify in the
Eligibility Data Sheet (EDS), shown in ANNEX II-1.1C, the required PCAB license
from among the categories given in Table 2.
The prospective bidder must possess the experience of having a Single Largest
Completed Contract (SLCC) “similar” to the contract to be procured, and whose
value, adjusted to current prices using the consumer price indices of the Philippine
Statistics Authority (PSA), is at least fifty percent (50%) of the ABC to be bid. Small
A and Small B contractors without similar experience on the contract to be bid,
however, may be allowed to bid if the cost of such contract is not more than the
Allowable Range of Contract Cost corresponding to their PCAB license as shown in
Table 3 above (IRR Section 23.5.2.5).
As stated in Appendix 2.2 (Guidelines for Major and Similar Categories of Works), a
“Major Category of Works” is the main classification of works in the contract to be
bid, according to type of infrastructure and kind of work performed - e.g. road
construction, bridge rehabilitation, etc. On the other hand, a “Similar Category of
Works” is a kind of works whose classification is considered to be comparable to the
Major Category of Works in the contract to be bid and, therefore, shall be considered
for purposes of evaluation of the bidder’s eligibility for the contract to be bid. A
“Qualifier” is an additional specific requirement on Major or Similar Categories of
Work, to be required from the bidders at the bidding stage, to show that they have the
necessary expertise and experience to execute the contract, such as an extraordinarily
large embankment volume, or soft ground treatment, or long tunnel using tunnel
boring machine, or bridge retrofitting using special jacking technology, or very long
sheet piling, multi-level basement, etc.
For the specific project or contract to be bid and based on the Guidelines and Matrix
of Categories in Appendix 2.2, the Procuring Entity shall indicate in the EDS the
Major Categories of Works and Similar Categories of Work, as well as any Qualifier,
that shall be considered in determining a bidder’s eligibility for the contract to be bid.
For a contract involving a single category of works (i.e., type of infrastructure and
kind of work) - e.g., road construction, or bridge retrofitting, or flood control
rehabilitation - the following criteria shall be adopted:
b. To be eligible to bid for the contract, a contractor must have done a Single Largest
Completed Contract (SLCC) for a Major/Similar Category of Works whose total
cost is at least 50% of the Approved Budget of the Contract (ABC) to be bid.
a. Each category of works whose cost is at least 30% of the ABC shall be considered
a Major Category of Works. All other categories of works shall be considered
Minor Categories of Works.
b. To be eligible to bid for the contract, a contractor must comply with the following
work experience requirements:
(1) As the basic requirement, the contractor must have undertaken a SLCC similar
to the contract to be bid. To be so considered similar, the SLCC must meet the
following requirements:
(a) The SLCC must contain the same Major Categories of Works as the
contract to be bid, and each Major Category of Works in the SLCC must
cost at least 30% of the total cost of the SLCC.
(b) The total cost of the SLCC must be at least 50% of the total ABC to be
bid.
In the case of contracts which include special equipment to be supplied and installed
by the supplier/manufacturer, the cost of such equipment shall be excluded from the
ABC to be used in computing the required work experience as stated in the preceding
paragraph.
To support its SLCC, the bidder must submit the corresponding Owner’s Certificate
of Final Acceptance issued by the project owner other than the contractor, or at least a
satisfactory CPES Rating. In case of contracts with the private sector, an equivalent
document shall be submitted (IRR Section 23.5.2.4a).
The prospective bidder must have a Net Financial Contracting Capacity (NFCC) at least
equal to the ABC to be procured, calculated as follows (IRR Section 23.4.2.6):
NFCC = [(Current assets minus current liabilities) multiplied by 15] minus the value
of outstanding or uncompleted portions of the projects under on-going contracts,
including awarded contracts yet to be started, which portions coincide with the
contract to be bid.
The values of the bidder’s current assets and current liabilities shall be based on the latest
Audited Financial Statements (AFS) submitted to the BIR.
For purposes of computing the foreign bidders' NFCC, the value of the current assets and
current liabilities shall be based on their Audited Financial Statements prepared in
accordance with international financial reporting standards (IRR Section 23.5.1.4a).
The Procuring Entity, through the IU assisted by the BAC Secretariat, shall also prepare the
Contract Profile (CP), for the specific contract to be procured, using Form DPWH-INFR-
08.The CP will give the basic contract data, including the ABC, the major categories of works
involved in the contract and corresponding cost estimates. Once the CP is duly noted by the
Chairperson of the BAC, the Procurement Service shall enter the CP into the CWR. During the
Eligibility Check for the contract at hand, the CWR will automatically compare (a) the
requirements of the contract (e.g., required SLCC and NFCC) as embodied in the CP in the
CWR with the actual capability of each prospective bidder (e.g., actual SLCC and NFCC for
major/similar categories of works) as registered in the CWR, thereby determining whether or not
the contractor is eligible to undertake the project.
The Procuring Entity shall apply the abovementioned Eligibility Requirements (ER) not only to
the main contractor/bidder but also to any sub-contractors for the portions of the main contract
works that are proposed to be sub-contracted to them, except for pakyaw contracts as defined in
Appendix 11 of RA 9184-IRR.
The main contractor/bidder, however, must meet all of the abovementioned Eligibility
Requirements by itself, with or without any sub-contractor. Hence, if any nominated sub-
contractor is declared ineligible, the main contractor, on its own, must still meet the prescribed
Eligibility Requirements.
Notwithstanding the eligibility of a bidder, the Procuring Entity concerned reserves the right to
review the qualifications of the bidder at any stage of the procurement process if the Procuring
Entity has reasonable grounds to believe that a misrepresentation has been made by that bidder,
or that there has been a change in the bidder’s capability to undertake the project from the time it
submitted its eligibility requirements. Should such review uncover any misrepresentation made
in the eligibility requirements, statements or documents, or any changes in the situation of the
bidder which will affect the capability of the bidder to undertake the project so that it fails the
eligibility criteria, the Procuring Entity shall consider the said bidder as ineligible and shall
disqualify it from obtaining an award or contract, in accordance with Rules XXI, XXII, and
XXIII of the IRR (IRR Section 23.7).
b. Only a Certified Member with the appropriate classification can avail of the PhilGEPS
advance eligibility submission by uploading their electronic documents to the PhilGEPS
document library, which can be accessed for current or future procurements.
a. Required PCAB license appropriate to the kind and size of the contract at hand.
c. Description of similar contracts that may be considered in determining the required work
experience for the contract at hand.
The ITB shall include the following main elements, among others:
f. Pre-Bid Conference–Clause 9.
g. Contents of Bidding Documents (BDs) – Clause 10, as discussed in Section 2.4.3 of this
Manual.
k. Bid Security – Clause 18, including the allowable forms, amount and validity period.
m. Submission and Receipt of Bids– Clause 22, including the date, time and place.
h. Opening and Preliminary Examination of Bids – Clause 27, focusing on the presence or
absence of the required documents.
i. Detailed Evaluation of Bids – Clause 31, including the use of non-discretionary criteria
and procedures to establish the Lowest Calculated Bid (LCB).
k. Right of Procuring Entity to Reject Bids – Clause 35, to be based on reasonable grounds.
l. Award Criterion – Clause 36, to be awarded to the bidder with the LCRB.
m. Notice of Award (NOA)–Clause 37, to be issued to the bidder with the LCRB with
requirements to submit its signed “conforme” and other documents.
n. Performance Security – Clause 38, including the prescribed form, amount, conditions,
and validity period.
p. Signing and Approval of the Contract – Clause 40, including time frames.
q. Notice to Proceed – Clause 41, providing that the NTP be issued within three days after
contract approval and indicating therein the date of contract effectivity.
With regard to Clause 8 of the ITB (item e above), sub-contracting shall be governed by the
following guidelines:
a. Unless otherwise specified in the BDS, sub-contracting of works shall be subject to the
provisions of DPWH DO No. 38, series of 2015, as may be amended, as recapitulated in
items b to g below.
b. All sub-contracts shall be subject to prior approval of the concerned DPWH HoPE within
the limits of their delegated authority to approve the original contracts.
c. The contractor may sub-contract portions of the works to such an extent as may be
approved by the Procuring Entity and stated in the BDS, provided that the main
contractor shall directly undertake, using its own resources, not less than fifty percent
(50%) of the contract works in terms of cost.
d. Each sub-contractor must comply with the eligibility criteria as specified in the Eligibility
Requirements (ER), as discussed in Section 4.8.2, for the portion of the contract works to
be sub-contracted to that sub-contractor- e.g., applicable license from the PCAB,
satisfactory completion of works similar to the portion of the contract to be subcontracted
and costing at least fifty percent (50%) of the cost of such portion, and NFCC at least to
the cost of the work to be sub-contracted, as well as the required minimum equipment
and manpower set by the Procuring Entity. These requirements shall not apply to labor
pakyaw contracts provided in Appendix 11 of RA 9184-IRR.
e. The bidder/main contractor may identify the sub-contractors to whom portions of the
contract works will be sub-contracted at any stage of the bidding process or during
contract implementation, provided that any sub-contracting shall be subject to the
requirement in item d above and requires prior approval of the Procuring Entity. If the
bidder opts to disclose the name of the sub-contractors during the bid submission, the
bidder shall include the required eligibility documents for the sub-contractors as part of
the technical component of its bid. Sub-contractors identified during the bidding may be
changed during the implementation of the contract, subject to compliance with the
eligibility requirements and approval of the Procuring Entity.
f. Sub-contracting of any portion of the contract shall not relieve the main contractor from
any liability or obligation that may arise from the contract. The main contractor shall be
responsible for the acts, defaults, and negligence of any subcontractor, its agents or
workmen.
g. For any assignment and sub-contracting of the contract or any part thereof made without
prior written approval by the concerned DPWH HoPE, the DPWH shall impose on the
erring contractor, after the termination of the contract, the penalty of suspension for one
(1) year for the first offense, and suspension of two (2) years for the second offense from
participating in the public bidding process, pursuant to the provision of Appendix 3,
Section 4.2 of the IRR of RA 9184, in accordance with Section 69(6) of RA 9184 and
without prejudice to the imposition of additional administrative sanctions as the internal
rules of the agency may provide and/or further criminal prosecution as provided by
applicable laws.
With respect to Clause 14 of the ITB (item i above), the Documents to Comprise the Bid shall
include the following:
a. Technical Proposal (First Envelope) – This shall include the following (IRR Section
25.2):
(2) If the bidder is not previously enrolled in the CWR: the bidder’s Class “A” and Class
“B” Documents, together with the CCASR, in accordance with Section 4.8.2 of this
Manual Volume II. These Documents should include, among others, the following
information required in IRR Section 25.2b:
(c) SLCC
(d) NFCC
(3) Bid Security in the prescribed form, amount and validity period (using Form DPWH-
INFRA 10, 11 or 12).
(b) List of contractor’s key personnel to be assigned to the contract – e.g., Project
Manager, Project Engineers, Materials Engineers, Construction Safety Officer,
and Foremen - to be assigned to the contract, with their complete qualification and
experience data.
(c) List of contractor’s major construction and laboratory equipment units to be used
for the contract – which are owned, leased, and/or under purchase agreements,
supported by a proof of ownership and certification of availability of the
equipment from the equipment lessor/vendor for the duration required for the
project, as the case may be.
(d) Omnibus Sworn Statement by the prospective bidder or its duly authorized
representative as to the following (using Form DPWH-INFRA 16) (IRR Section
25.3):
iv. The signatory is the duly authorized representative of the prospective bidder,
and granted full power and authority to do, execute and perform any and all
acts necessary and/or to represent the prospective bidder in the bidding, with
the duly notarized Secretary’s Certificate attesting to such fact, if the
prospective bidder is a corporation, or duly notarized Special Power of
Attorney in case of sole proprietorship, partnership or joint venture.
viii. It did not give or pay any, directly or indirectly, any commission, amount,
fee, or any form of consideration, pecuniary or otherwise, to any person or
official, personnel or representative of the government in relation to any
procurement or activity.
(1) Bid Form including Total Bid Price, using Form DPWH-INFR-09.
Unless indicated in the Bid Data Sheet (BDS), all Financial Proposals that exceed the
Approved Budget for the Contract (ABC) shall be rejected.
Unless otherwise indicated in the BDS, for foreign-funded procurement, a ceiling may be
applied to bid prices provided the following conditions are met (IRR Section 31.2):
(1) The BDs are obtainable free of charge on a freely accessible website. If payment of
the BDs is required by the Procuring Entity, payment could be made upon the
submission of bids.
(2) The Procuring Entity has procedures in place to ensure that the ABC is based on
recent estimates made by the responsible unit of the Procuring Entity and that the
estimates are based on adequate detailed engineering and reflect the quality,
supervision and risk and inflationary factors, as well as prevailing market prices,
associated with the types of works to be procured.
(3) The Procuring Entity has trained cost estimators on estimating prices and analyzing
bid variances. It must also have trained quantity surveyors.
(4) The Procuring Entity has established a system to monitor and report bid prices
relative to the ABC and the Procuring Entity’s estimate.
(5) The Procuring Entity has established a monitoring and evaluation system for contract
implementation to provide a feedback on actual total costs of works.
Every bid shall be accompanied by a Bid Securing Declaration or any form of Bid Security,
payable to the Procuring Entity concerned as a guarantee that the successful bidder shall, within
ten calendar days or less, as indicated in the ITB, from receipt of the Notice of Award, enter into
contract with the Procuring Entity and furnish the Performance Security required in Section 39 of
the IRR, except when Section 37.1 of the IRR allows a longer period. Failure to enclose the
required Bid Security in the form and amount prescribed herein shall automatically disqualify the
bid concerned (IRR Section 27.1).
The Bidder shall submit to the Procuring Entity, as part of its Bid, a Bid Securing Declaration
(using Form DPWH-INFR-12) or any form of Bid Security in an amount equal to a percentage
of the ABC in accordance with the following schedule (IRR Section 27.2):
The Bid Security shall be denominated in Philippine Pesos and posted in favor of the Procuring
Entity.
Without prejudice to the provisions of RA 9184 and its IRR on the forfeiture of Bid Securities,
Bid Securities shall be returned only after the bidder with the Lowest Calculated Responsive Bid
has signed the contract and furnished the Performance Security, except to those declared by the
BAC as failed or post-disqualified in accordance with the IRR, upon submission of a written
waiver of their right to file a motion for reconsideration and/or protest.
A Bid Securing Declaration (BSD) is an undertaking which states, among others, that the bidder
shall enter into contract with the Procuring Entity and furnish the required Performance Security
within ten calendar days, or less, as indicated in the BDs, from receipt of the Notice of Award,
and commits to pay the corresponding amount as fine and be suspended for a period of time from
being qualified to participate in any government procurement activity in the event it violates any
of the conditions stated therein as required in the guidelines issued by the GPPB. The template
for the BSD is shown in Appendix 24 of the IRR and is reproduced in Form DPWH INFR-12.
The BSD must be notarized and dry-sealed.
In no case shall a Bid Security or BSD be returned later than the expiration of the bid validity
period indicated in the BDS.
The Procuring Entity should specify in the BDS information and requirements specific to the
circumstances of the Procuring Entity, the processing of the procurement, the applicable rules
regarding Bid price, and the Bid evaluation criteria that will apply to the Bids. In preparing the
BDS, the following aspects should be checked:
a. Information that specifies and complements provisions of the ITB must be incorporated.
The BDS shall provide the following information specific to the contract to be procured:
b. Contractor’s obligations
c. Performance Security
d. Sub-Contracting
e. Liquidated damages
f. Warranty Security
h. Termination
i. Resolution of disputes
j. Correction of defects
k. Advance payment
m. Retention
n. Suspension of work
o. Time extension
p. Acceptance
q. As-built drawings
No special condition which defeats or negates the general intent of the GCC, however, should be
incorporated in the SCC.
b. Start date
The Specifications for the contract to be procured shall define, in clear and precise terms, the
minimum standards and requirements of workmanship, materials, and performance of the
infrastructure to be delivered by the Contractor under the contract. Bidders are expected to
respond directly, realistically and competitively to the Specifications of the Procuring Entity
without qualifying or conditioning their Bids.
a. The Specifications shall reflect, in clear and unambiguous terms, the minimum
standards set by the Procuring Entity to meet the functional or performance requirements
of the project, e.g., a two-lane bridge with a carriageway width of 7.0 meters and capable
of carrying a 20-ton truck. A bidder may submit a superior offer, i.e., with features better
than the prescribed Specifications, e.g., a two-lane bridge with a carriageway width of 7.5
meters and capable of carrying a 25-ton truck, but, in the evaluation of bids, no premium
or bonus points shall be given as a result of the superior offer.
c. As far as possible, the Procuring Entity should specify standards that are accepted
internationally or nationally in the infrastructure industry.
d. For DPWH infrastructure contracts, the DPWH Standard Specifications for Public Works
and Highways (“Blue Book”), latest edition, shall be the principal basis for the standards
and codes to be met by the goods and materials to be furnished and work performed or
tested for the Contract. In particular, Volume II of these Specifications shall be used if
the Contract pertains to highways or bridges. Volume III of the Specifications shall be
used if the Contract pertains to buildings, flood control and drainage, or water supply.
The Procuring Entity shall use the Standard Pay Items in the PCMA in drawing up the
Specifications.
e. Modifications of standards and codes as stated in the DPWH Standard Specifications for
Public Works and Highways Volume, if any, shall be included as special provisions of
the Specifications for the contract at hand, which should be part of the BDs.
f. The Specifications should require that all goods and materials to be incorporated in the
Works be new, unused, and of the most recent or current applicable models, and
incorporate all recent improvements in design and materials unless provided otherwise in
the Contract.
h. In drafting the Specifications, ensure that they are not restrictive or tailored to specific
brands. In specifying standards for goods, materials, and workmanship, recognized
international standards should be used as much as possible.
The Procuring Entity shall prepare the Drawings based on the DED for the project as discussed
in Section 3.5. It shall include the Drawings as ANNEX II-1.1I of the BDs.
The Drawings will vary with the type and nature of the contract works involved. They shall be
prepared and presented in accordance with accepted national and international standards and
practices for infrastructure contracts. The Drawings for the contract to be procured shall
indicate, among other things, layouts, plans, profiles, elevations, sections, and perspectives, in
sufficient detail and scale as reference for bidding and contract implementation.
b. Bid price summary for all parts of the contract (Form DPWH-INFR-18).
In Form DPWH-INFR-17, the bidder shall not change the entries under Pay Item No. (Column
1), Pay Item Description (Column 2), Unit (Column 3), and Quantity (Column 4), which are set
by the Procuring Entity. For each pay item in the BOQ, the bidder shall indicate its unit bid
price in words and in figures (PhP) in Column 5, and its total bid price in Column 6.
TO BE ACCOMPLISHED BY
FORM NO. NAME OF FORM PROCURING BIDDER
ENTITY
DPWH-INFR-40 BAC Resolution Declaring the Bidder with the LCRB and
Recommending Award Thereto X
AWARD OF CONTRACT
DPWH-INFR-41 Notice of Award (NOA) X
DPWH-INFR-42 Notification of Bidding Results X
PERFECTION OF CONTRACT
DPWH-INFR-43 Performance Security: Irrevocable Letter of Credit X
DPWH-INFR-44 Performance Security: Bank Guarantee X
DPWH-INFR-45 Construction Methods X
DPWH-INFR-46 Construction Schedule in PERT/CPM or Precedence Diagram
and Bar Chart with S-Curve and Cash Flow X
DPWH-INFR-47 Manpower Schedule X
DPWH-INFR-48 Major Equipment Utilization Schedule X
DPWH-INFR-49 Construction Safety and Health Program X
DPWH-INFR-50 Checklist of Contract Documents and Supporting Documents X X
DPWH-INFR-51 Form of Contract Agreement X X
DPWH-INFR-52 Notice to Proceed (NTP) X
DPWH-INFR-53 Evaluation of Bids for Design-Build Project X
DPWH-INFR-54 Procurement Performance Report X
Total 25 33
For each contract to be bid, the IU concerned, with the assistance of the TWG and the BAC
Secretariat, shall prepare the particular information and data relevant to that contract, insert these
into the SBDs, and thus produce the contract-specific BDs as stated in Section 4.4 of this Manual
Volume II. The BAC Secretariat must complete the proposed BDs in time for review by the
BAC during the Pre-Procurement Conference (see Section 5.1). After the Conference, the BAC,
with the assistance of the BAC Secretariat and the IU concerned, must finalize and approve the
BDs. The BAC Secretariat shall then post the approved contract-specific BDs in the DPWH
website and prepare hard copies thereof for issuance to interested bidders.
SECTION 5
PROCUREMENT ACTIVITIES
The PPC is the forum where all DPWH officials involved in the procurement of a contract shall
meet and discuss all aspects of the transaction and check whether the contract is ready for
procurement in terms of the legal, technical and financial requirements. The PPC shall confirm
the scope of work under the proposed contract, ensure that the procurement is consistent with the
PPMP and the APP, check the budget for the contract, and review and approve the Bidding
Documents, making sure that they are complete and comply with the set standards and rules.
The PPC will also review the criteria for eligibility screening, bid evaluation, post-qualification,
and award, and agree on the mode and schedule of procurement.
For every infrastructure contract involving an ABC amounting to more than PhP5 Million, the
BAC must conduct a PPC. Even when the contract has an ABC of PhP5 million or less, the
BAC is encouraged to conduct a PPC if the circumstances, like the complexity of the technical
specifications, warrant holding such a conference before the Procuring Entity proceeds with the
procurement.
b. BAC Secretariat.
d. Members of the TWG, consultants, and officials who prepared, reviewed, or approved the
BDs or parts thereof.
In conducting the PPC, the BAC Chairman shall generally follow the agenda shown in Form
DPWH-INFR-21.Thus, the PPC should cover the following items for the contract to be
procured (IRR Section 20):
a. Confirm the description and scope of the contract, ABC, and contract duration.
b. Confirm the Contract Profile (CP) prepared by the IU, with the assistance of the BAC
Secretariat, using Form DPWH-INFR-08. The CP will give the basic contract data,
including the ABC, works similar to those of the contract to be bid, and contract duration
c. Ensure that the procurement for the contract is in accordance with the PPMP and APP.
d. Confirm the state of readiness of the contract for procurement by checking the following,
among other things:
(1) Completion of the DED, including the EIS, according to the prescribed standards.
(2) Completeness of the contract-specific BDs, including the IB, ER, ITB, BDS, GCC,
SCC, Specifications, Drawings, BOQ, and SBFs, and their adherence to relevant
procurement guidelines.
(3) Availability of appropriations and programmed budget for the contract; for the
purpose of the PPC, pending the approval or enactment of the GAA, the Certification
of Availability of Funds refers to the amount in the Indicative APP consistent with the
NEP or MYOA; once the GAA is approved, appropriations refer to the amount
authorized in the GAA (IRR Section 20.1c-i)).
(4) Right-of-Way Acquisition Plan (LAPRAP), indicating, among other things, the
requirement for a Writ of Possession or Permit-to Enter as a condition before contract
award.
e. Review, modify and agree on the criteria for eligibility check/screening, preliminary
examination and detailed evaluation of bids, post-qualification, and award, and ensure
that these criteria are fair, reasonable, and of the non-discretionary “pass/fail” type.
f. Review and adopt the procurement schedule, including the deadline or timing for the
Invitation, issuance of BDs, receipt and opening of bids, evaluation of bids, post-
qualification, award, contract processing and approval, and Notice to Proceed;
h. Discuss other important matters, such as emphasizing the “no contact rule” during the bid
evaluation process, and applicable sanctions and penalties for violations of the
procurement rules.
Upon the confirmation/modification by the BAC of the abovementioned documents and matters
discussed in the PPC, the BAC Secretariat shall finalize the contract-specific BDs and
procurement schedule. The BAC Secretariat shall also enter into the CWR the CP for the
contract being procured.
therefore, see to it that its procurement program allows enough time to conduct such Public
Bidding (IRR Section 10).
d. Receipt of Bids
h. Post-Qualification
i. Award of Contract
k. Notice to Proceed
For a typical infrastructure contract, the Procuring Entity and the bidders shall be guided by the
schedule of procurement activities shown in Table 7, which shows the earliest and latest
allowable times for each activity, from advertisement up to Notice to Proceed.
From this schedule, it can be seen that the entire procurement process should be completed in 23
days at the earliest, and 176 days at the latest.
(1) Advertise the IB at least once in one (1) newspaper of general nationwide circulation
as prescribed by the DPWH, which has been regularly published for at least two (2)
years before the date of issue of the advertisement;
(2) Post the IB on the website of the DPWH continuously, starting on the date of
advertisement of the IB until the deadline for submission and receipt of bids; and on
the website of the PhjilGEPS and, if applicable, the website prescribed by the
concerned foreign government/foreign or international financing institution or IFI
(e.g., United Nations Development Business (UNDB), dgMarket), continuously for
seven (7) calendar days starting on the date of advertisement of the IB.
(3) Together with the IB, post the other parts of the BDs for the contract on the three
websites mentioned over the same respective periods (IRR Sections 17.3 and 17.4).
(3) Post the IB at any conspicuous place reserved for this purpose in the premises of the
Procuring Entity concerned, as certified by the Head of the BAC Secretariat of the
Procuring Entity, for seven (7) calendar days starting on the date of advertisement of
the IB.
c. Two (2) years after the effectivity of the Revised RA 9184-IRR approved in 2016,
advertisement in a newspaper of general nationwide circulation shall no longer be
required. However, a Procuring Entity that cannot post its opportunities in the PhilGEPS
for justifiable reasons shall continue to publish its advertisements in a newspaper of
general circulation (IRR Section 21.2.1).
a. The Procuring Entity, through its Bid Notice Creator (as defined in the Glossary of Terms
in Manual Volume I), shall create an electronic IB in accordance with the contents
provided under Section 21.1 of the IRR of RA 9184 (as discussed in Section 4.7 of this
Manual Volume II) to provide prospective bidders sufficient information for the contract
to be bid (“Bid Notices”) using the electronic bid facility under PhilGEPS. Only Bid
Notices that have been verified and approved by the Bid Notice Approver shall be posted
in the PhilGEPS Electronic Bulletin Board.
b. The Procuring Entity shall upload a complete set of the BDs, in PDF format, in the
PhilGEPS website which will be available from the time the Bid Notice is posted, and
which PDF version can be downloaded free of charge by Registered Merchants until the
deadline for the submission and receipt of bids.
c. Registered Merchants who have set their bid-match profiles shall automatically be
notified through electronic mail (e-mail) and/or through the Registered Merchant’s
respective PhilGEPS “Pending Task” page of posted Bid Notices.
d. Only Registered Merchants who pay the BDs Fee through the Bid GPPB Payment
Modality shall be allowed to download complete BDs and bid response forms.
Prospective bidders may obtain hard copies of the Contract-Specific BDs from the BAC
Secretariat, upon payment of the fee therefor, from the first day of advertisement of the IB until
the deadline for receipt of bids.
Prospective bidders, as well as other interested parties, may also download the BDs from the
websites of the DPWH and the PhilGEPS.
Bidders shall pay the BAC the fee upon securing hard copies of the BDs. Bidders that download
the BDs from the DPWH website shall pay the fee upon submission of their bids (IRR Section
17.4).
c. having made an estimate of the facilities available and needed for the contract to be bid,
if any;
d. having complied with its responsibility under IRR Section 22.5.3, to inquire and secure
Supplemental/Bid Bulletins (Addenda) that may be issued by the BAC.
e. ensuring that it is not “blacklisted” or barred from bidding by the GOP or any of its
agencies, offices, corporations, or LGUs, including foreign government/foreign or
international financing institution whose blacklisting rules have been recognized by the
GPPB;
f. ensuring that each of the documents submitted in satisfaction of the bidding requirements
is an authentic copy of the original, complete, and all statements and information
provided therein are true and correct;
g. authorizing the HoPE or its duly authorized representative/s to verify all the documents
submitted;
h. ensuring that the signatory is the duly authorized representative of the bidder, and granted
full power and authority to do, execute and perform any and all acts necessary and/or to
represent the bidder in the bidding, with the duly notarized Secretary’s Certificate
attesting to such fact, if the Bidder is a corporation, partnership, cooperative, or joint
venture;
i. complying with the disclosure provision under Section 47 of RA 9184 in relation to other
provisions of RA 3019;
k. ensuring that it did not give or pay, directly or indirectly, any commission, amount, fee,
or any form of consideration, pecuniary or otherwise, to any person or official, personnel
or representative of the government in relation to any procurement project or activity; and
l. being familiar with all existing Philippine laws, ordinances, and regulations that may
affect the contract in any way.
The agenda of the PBC shall be based on Form DPWH-INFR-24 and include a discussion of
the following items:
d. Criteria and procedures for the preliminary examination of bids, detailed evaluation of
bids, post-qualification, and award.
f. Other matters.
It is important that responsible and knowledgeable officials attend the conference. The persons
who actually formulated the scope of work, drawings/plans and specifications for the project
shall be present among those representing the Procuring Entity.
The PBC is open to prospective bidders, but attendance is not mandatory IRR Section 22.3).
Prospective bidders should be encouraged to send representatives who are legally and technically
knowledgeable about the requirements of the procurement at hand. It is also important that the
prospective bidders are given ample time to review the BDs before the PBC.
discretion of the BAC. Subject to the approval of the BAC, a PBC may also be conducted upon
the written request of any prospective bidder (IRR Section 22.1).
The PBC must be held at least twelve (12) calendar days before the deadline for the receipt of
bids, but not earlier than seven (7) calendar days from the posting of the IB and BDs. If the
Procuring Entity determines that, by reason of the method, nature, or complexity of the contract
to be bid or when international participation will be more advantageous to the GOP, a longer
period for the preparation of bids is necessary, the PBC shall be held at least thirty (30) calendar
days before the deadline for the submission and receipt of bids (IRR Section 22.2).
The BAC may issue a Supplemental Bulletin to amend provisions of the Bidding Documents
(BDs), using Form DPWH-INFRA-27, at least seven (7) calendar days before the deadline for
the receipt of bids (IRR Section 22.5.1).
The BAC may also issue, using Form DPWH-INFRA-28, a Bid Bulletin to clarify any
provision of the BDs in response to a request or query from prospective bidders, provided that
this request or query is in writing, and is submitted to the BAC at least ten (10) calendar days
before the deadline for the receipt of bids (IRR Section 22.5.1). The BAC may, at its own
initiative, also issue a Bid Bulletin to clarify any provision of the BDs. In all cases, the Bid
Bulletin shall be issued at least seven (7) calendar days before the deadline for the receipt of
bids. (IRR Section 22.5.2).
The BAC shall, through its BAC Secretariat, post the Bid Bulletins on the websites of the DPWH
and the PhilGEPS and at any conspicuous place within the same timetable.
Nonetheless, it shall be the responsibility of prospective bidders to ask for, and secure, these
bulletins.
A Supplemental/Bid Bulletin must contain a brief but comprehensive and accurate summary of
the issue that the BAC wishes to address. If a prospective bidder raises the issue addressed by
the Bulletin, then the Bulletin ought to contain a summary of the request of that bidder for
clarification or interpretation, without identifying the bidder.
Bidders that have submitted bids before a Supplemental/Bid Bulletin is issued must be informed
in writing by the BAC of the Bulletin and allowed to modify or withdraw their respective bids
(IRR Section 22.5.3).
In case Electronic Bidding is adopted pursuant to GPPB Resolution No. 23-2013, dated 30 July
2013, the Procuring Entity shall observe following procedure with regard to the PBC:
a. For contracts to be bid where the conduct of PBC is required under Section 22 of RA
9184-IRR (Section 5.5.3 of this Manual Volume II), the same procedure governing the
manual method will also apply.
c. During the conduct of the PBC, Registered Merchants may send requests for clarification
through the PhilGEPS online facility, which shall be read during the meeting and shall
form part of the minutes, unless the Procuring Entity has previously decided that only
those who have purchased the Bidding Documents shall be allowed to participate in the
PBC and raise or submit written queries or clarifications.
d. The minutes of the PBC shall be recorded as an electronic document made electronically
available to all participating Registered Merchants through the PhilGEPS Electronic
Bulletin Board not later than three (3) calendar days after the PBC.
e. Requests for clarification(s) on any part of the BDs or for an interpretation must be in
writing and submitted to the BAC of the Procuring Entity, either electronically through
the PhilGEPS or otherwise, at least ten (10) calendar days before the deadline set for the
submission and receipt of bids.
f. Only Bid Bulletins/Supplements approved by the Bid Notice Approver shall be posted in
the PhilGEPS at least seven (7) calendar days before the deadline for the submission and
receipt of bids. The PhilGEPS shall automatically notify through e-mail all Registered
Merchants who have downloaded the bidding documents and paid the BDs Fee.
IRR Section 23 sets the rules pertaining to eligibility check, Section 25 defines the rules for
submission and receipt of bids, and Sections 29 to 31 prescribe the rules for opening and
preliminary examination of bids.
(2) If the bidder is not previously enrolled in the CWR: the bidder’s Class “A” and Class
“B” Documents, together with the CCASR, in accordance with Section 4.8.2 of this
Manual Volume II. These Documents should include, among others, the following
information required in IRR Section 25.2b:
(c) SLCC
(d) NFCC
(3) Bid Security in the prescribed form, amount and validity period (Form DPWH-
INFR-10, DPWH-INFR 11, or DPWH-INFR-12).
(a) Contractor’s organizational chart for the contract to be bid (Form DPWH-INFR-
13).
(b) List of contractor’s key personnel – e.g., Project Manager, Project Engineers,
Materials Engineers, Construction Safety Officer, and Foremen - to be assigned to
the contract, with their complete qualification and experience data (Form
DPWH-INFR-14).
(c) List of contractor’s major construction and laboratory equipment units to be used
for the contract – which are owned, leased, and/or under purchase agreements,
supported by certification of availability of the equipment from the equipment
lessor/vendor for the duration of the project (Form DPWH-INFR-15).
(4) Omnibus sworn statement by the prospective bidder or its duly authorized
representative as to the following, using Form DPWH-INFR-16 (IRR Section 25.3):
(a) It is not “blacklisted” or barred from bidding by the government or any of its
agencies, offices, corporations, or local government units (LGUs), including
foreign government/foreign or international financing institution whose
blacklisting rules have been recognized by the GPPB.
(c) It is authorizing the HoPE or his duly authorized representative(s) to verify all the
documents submitted.
(d) The signatory is the duly authorized representative of the prospective bidder, and
granted full power and authority to do, execute and perform any and all acts
necessary and/or to represent the prospective bidder in the viding, with the duly
notarized Secretary’s Certificate attesting to such fact, if the prospective bidder is
a corporation, or duly notarized Special Power of Attorney in case of sole
proprietorship, partnership or joint venture.
(e) It complies with the disclosure provision under Section 47 of RA 9184 in relation
to the provisions of RA 3019.
(h) It did not give or pay any, directly or indirectly, any commission, amount, fee, or
any form of consideration, pecuniary or otherwise, to any person or official,
personnel or representative of the government in relation to any procurement or
activity.
i. Financial Proposal
(1) Bid Form indicating the Total Bid Price, using Form DPWH INFR-09.
(2) Bid prices in the Bill of Quantities (BOQ) (Forms DPWH-INFR-16 and DPWH-
INFR-18).
The concerned BAC shall receive from the Bidders their bids in two (2) separate sealed bid
envelopes which shall be submitted simultaneously. The first envelope shall contain the
Technical Proposal, and the second envelope shall contain the Financial Proposal.
Bids submitted after the specified deadline shall not be received by the BAC. The BAC shall
record in the minutes the bidder’s name, its representative, and the time the late bid was
submitted (IRR Section 25.5).
To ensure transparency and accurate presentation of the bids submission, the BAC, through its
Secretariat, shall notify, in writing, all bidders whose bids it has received. The notice shall be
issued within seven (7) calendar days from the date of bid opening (IRR Section 25.6).
The original copy of the Bid Form shall be typed or written in ink and shall be signed by the
bidder or its duly authorized representative (IRR Section 25.7).
Bid envelopes that are not properly sealed and marked, as required in the BDs, shall not be
rejected, but the bidder or its duly authorized representative shall acknowledge such condition of
the bid as submitted. The BAC or the Procuring Entity shall assume no responsibility for the
misplacement of the contents of the unsealed or improperly marked bid, or for its premature
opening (IRR Section 25.8).
In case of unforeseeable or unavoidable circumstances, the BAC may re-schedule the deadline
for the receipt and opening of bids through the issuance of a Bid Bulletin, which shall be posted
in the DPWH and PhilGEPS websites and at any conspicuous place for the purpose at least one
(1) day before the new schedule.
A bidder shall be allowed to modify its bid, provided that this is done before the deadline for the
submission and receipt of bids. Where a bidder modifies its bid, it shall not be allowed to retrieve
its original bid, but shall only be allowed to send another bid equally sealed, properly identified,
linked to its original bid and marked as a “modification,” thereof, and stamped “received” by the
BAC. Bid modifications submitted after the applicable deadline shall not be considered and shall
be returned to the bidder unopened.
A bidder may, through a letter, be allowed to withdraw its bid before the deadline for the receipt
of bids. Withdrawal of bids after the applicable deadline shall be subject to appropriate sanctions
as prescribed in the IRR of RA 9184. A bidder may also express its intention not to participate in
the bidding through a letter which should reach and be stamped received by the BAC before the
deadline for the receipt of bids. A bidder that withdraws its bid shall not be permitted to submit
another bid, directly or indirectly, for the same contract. Moreover, an eligible bidder that
withdraws its bid without any justifiable cause therefor shall be subject to the administrative
sanctions provided in Section 69.1 of the IRR.
A bidder that withdraws its bid prior to the deadline for submission of bids, for a justifiable
cause, does not forfeit its Bid Security.
a. On-line Bidders may submit their eligibility requirements to the Procuring Entity through
the e-bidding facility of PhilGEPS.
b. Joint Ventures
a. In case of joint venture, each partner of the joint venture must: (i) be registered in the
PhilGEPS, (ii) secure Certified Membership Status, and (iii) electronically send its
respective eligibility documents.
b. The joint venture partners must identify and designate the Primary and Secondary
Partner(s).
c. Before the PhilGEPS will accept submissions of Technical and Financial Proposals
from the Primary Partner, there must be a confirmation from the Secondary Partner(s)
as to existence of, or agreement to enter into, a joint venture.
d. Upon Confirmation, the Primary Partner shall be required by the PhilGEPS to upload
the Joint Venture Agreement or a duly notarized statement.
c. With regard to the requirement for a Bid Security as part of the Technical Proposal under
Section 5.6.2a(2) above, the following guidelines shall be observed:
ii. On-line bidders may submit the Bid Security in cash through the PhilGEPS electronic
payment facility.
iii. In case of other forms of Bid Security, the on-line bidder shall prepare and submit a
scanned copy of the Bid Security together with the electronic bid. However, the
original Bid Security must be submitted to the BAC concerned before the end of
business hours on the day of bid submission, a failure of which shall automatically
render the bid submission as non-compliant.
iv. If the on-line bidder sends the original Bid security through registered mail or private
courier, the indicated date of receipt by the postal service or private courier shall be
considered as the date of submission to the BAC concerned, without prejudice to any
verifications during post-qualification.
d. On-line Bidders, or the Primary Partner in the case of Joint Ventures, shall electronically
submit their bids through the Bidder’s On-line Nominee, at any time before the closing
date and time specified in the BDs.
e. The actual time of bid submission of an On-line Bidder shall be the time indicated on the
PhilGEPS Server when the bidder clicks the “Submit” button which shall be
automatically recorded by the PhilGEPS. Upon receipt of a bid, the PhilGEPS shall
automatically generate a bid receipt page that can be printed by the on-line bidder. This
contains the recorded “submission time” which shall be considered as the Official
Submission Time of the bidder.
f. An On-line Bidder may modify its bid at any time before the closing date and time for the
submission and receipt of bids.
g. An On-line Bidder may withdraw its bid before the deadline for the submission and
receipt of bids.
h. The PhilGEPS shall bar all incoming bids after the closing date and time.
a. BAC
b. TWG
c. BAC Secretariat
d. Bidders
e. Observers
f. Any other person who wishes to attend the opening of the bids.
On the designated date and time for the opening of bids, the BAC Chair shall convene the
Committee and proceed with the deliberations which shall consist of the following activities:
c. Announcement of Results
The Abstract of Bids shall be made available to the participating bidders. 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.
After determining the names of the bidders that submitted bids for the contract at hand, the BAC,
assisted by its BAC Secretariat, shall check if each bidder that submitted bids is eligible to bid
for the contract being procured. This shall be done electronically using the DPWH CWR.
The Central Office (CO) Procurement Service, Regional Offices (ROs) and District Engineering
Offices (DEOs) connected to the DPWH Wide Area Network (WAN) shall conduct their own
electronic Eligibility Check. The RO BAC shall conduct the electronic Eligibility Check for
contracts of its DEOs that are not yet connected to the DPWH WAN until such time that
connection of those DEOs is established. For these unconnected DEOs, the DEO BAC shall
submit to the RO BAC the list of the contractors that submitted bids and the Contract Profile
(CP) immediately after the deadline for submission of bids. On the same day, the RO BAC shall
submit to the DEOs the results of the electronic Eligibility Check of contractors before the time
set for the opening of bids. In cases where the WAN is not operating in the DEO or RO, the
eligibility check may be done by the Procurement Service
In case a bidder is already enrolled in the CWR and submits, together with its bid, the Original
Receipt (OR) for payment of Bidding Documents (BDs) for the contract issued by any DPWH
office, the BAC Secretariat shall enter into the CWR the PCAB License Number and/or name of
the bidder.
In case a bidder is not previously enrolled in the CWR and submits its Eligibility Requirements –
i.e., Class “A” and Class “B” Documents under its CCASR - as part of its bid, together with the
Original Receipt (OR) for payment of Bidding Documents (BDs) for the contract issued by any
DPWH office, the BAC Secretariat shall immediately encode and enter into the CWR the
appropriate data and information – e.g., SLCC, NFCC, etc. - from the submitted Documents.
In both cases, the CWR program will then electronically process and match the bidder’s
capability or eligibility data in the CWR – e.g., value of the SLCC for major/similar categories of
works, and actual NFCC – against the eligibility requirements for the contract derived from the
CP earlier entered into the CWR (Section 4.8.2) – e.g., required SLCC costing at least 50% of
ABC, and NFCC at least equal to ABC. The computer program will automatically determine if
the bidder meets the following eligibility requirements:
a. The cost of the bidder’s SLCC is at least 50% of the ABC of the project to be procured.
The program will also automatically generate the results of the Eligibility Check (Use Form
DPWH-INFR-29) including, if applicable, Notices of Ineligibility (Use Form DPWH-INFR-
30). The reasons for ineligibility will also be automatically shown in the Notices of Ineligibility.
During the bids opening session, the BAC will issue the Notices of Ineligibility to the bidders
concerned. If a bidder immediately agrees to its ineligibility as indicated in the Notice, the BAC
shall promptly not consider its bid and thus return its Bid (Technical and Financial Proposals) to
the bidder unopened.
If, on the other hand, a bidder indicates its intent to seek a reconsideration of its declared
ineligibility, the BAC shall set aside its sealed Bid which shall be signed/initialed on its cover by
the bidder and other competing bidders and members of the BAC, and the BAC shall then apply
the provisions of Section 5.6.13 pertaining to requests for reconsideration.
If, after evaluating the bidder’s request for reconsideration, the BAC finds the bidder to be
eligible for the contract at hand, the BAC shall set the date and time for the opening of the bids
of the ineligible bidders concerned.
In either case - i.e., the ineligible bidder accepting its ineligibility or expressing it intent to seek a
reconsideration of its ineligibility - the BAC shall promptly proceed with the opening and
preliminary examination of the bids of the bidders that are declared eligible.
Given:
Analysis:
Contractor A: (i) Fails single largest similar project requirement: Gravel road is not similar
to concrete road.
(ii) Fails NFCC requirement: NFCC= (current assets-current liabilities)(K) –
value of outstanding works = (35M-13M)(15) - 150M = 180 M which is less
than ABC of Php 213,794,000
Contractor B: (i) Passes single largest similar project requirement (50% of ABC):
Contractor’s completed contract – rehab of concrete road – is similar to
construction of concrete road. Value is Php 178 M which is more than the
required 50% of ABC or Php 106.897 M.
(ii) Passes NFCC requirement: NFCC= (current assets-current liabilities)(K) –
value of outstanding works = (52M-18M)(15) - 203M =307M which exceeds
the ABC of Php 213,794,000.
Contractor C: (i) Fails single largest similar project requirement: Similar project is road
which had a cost of Php 95 M – lower than the required 50% of ABC or Php
106.897 M.
(ii) Passes NFCC requirement: NFCC= (current assets-current liabilities)(K) –
value of outstanding works = (45M-16M)(15) - 170M =265M which exceeds
the ABC of Php 213,794,000..
Contractor D: (i) Fails single largest similar project requirement: Contractor’s Php 91 M is
short of the required Php 106.897 M.
(ii) Fails NFCC requirement: NFCC= (current assets-current liabilities)(K) –
value of outstanding works = (40M-21M)(15) - 110M =175M which is less
than the ABC of Php 213,794,000.
Contractor E: (i) Passes single largest similar project requirement: Contractor’s completed
contract for new concrete road is Php 154 M, which exceeds the required 50%
of ABC or Php 106.897 M.
(ii) Passes NFCC requirement: NFCC= (current assets-current liabilities)(K) –
value of outstanding works = (48M-19M)(15) - 117M =318M which exceeds
the ABC of Php 213,794,000M.
In case the bids cannot be opened as scheduled due to justifiable reasons, the BAC shall take
custody of the bids submitted and reschedule the opening of bids on the next working day or at
the soonest possible time through the issuance of a bid bulletin to be posted in the DPWH and
PhilGEPS websites (IRR Section 29).
The BAC shall read out and record letters of withdrawal, and return the unopened envelopes
containing the corresponding withdrawn Bid to the Bidders concerned. If the withdrawing
Bidder’s representative is present, the BAC shall return the original Bid and all copies thereof to
that representative during the Bid opening. If the representative is absent, the BAC shall notify
the bidder in writing to retrieve its unopened Bid from the BAC Secretariat. The Bidder may
withdraw its Bid before the deadline for submission and receipt of Bids, provided that its letter of
withdrawal contains a valid justification requesting such withdrawal, subject to appropriate
administrative sanctions.
The Procuring Entity shall not accept Bids of ineligible Bidders. The Procuring Entity shall open
the Bids of eligible Bidders only, in accordance with the following provisions.
The BAC shall then conduct the Preliminary Examination of the Bids. The purpose of this
examination is solely to determine the “presence-or-absence” of each of the required documents
comprising the bid, as stated in Section 3.5.2 above, using a simple non-discretionary “pass (if
present) - or - fail (if absent)” criterion, with the aid of checklists.
The BAC shall first open and undertake the Preliminary Examination of the envelopes
containing the Technical Proposals, one at a time, reading out and recording the following:
The BAC shall determine each Bidder’s compliance with the documents required to be submitted
for the Technical Proposal, as prescribed in ITB Clause 10. For this purpose, the BAC shall
check the submitted documents in the Technical Proposal against a checklist (Form DPWH-
INFR-312 of required documents to ascertain if the latter are all present in the Technical
Proposal. If the required document is present, the Technical Proposal shall be rated as “passed”
for that particular requirement. On the other hand, if the required document is absent, i.e.,
missing, incomplete or patently insufficient, the Technical Proposal shall be rated as “failed” for
that particular requirement. In case one or more of the required documents in the Technical
Proposal of a particular Bid is absent - i.e., missing, incomplete, or patently insufficient - the
BAC shall rate the Technical Proposal as “failed” and immediately return to the Bidder
concerned its second envelope (Financial Proposal) unopened. If all of the required documents
in the Technical Proposal are present, the Technical Proposal is rated as “passed.”
On the same day, the BAC shall then open the Financial Proposal (second envelope) of each
bidder whose Technical Proposal was rated as “passed.” The BAC shall check the submitted
documents in the Financial Proposal against a checklist of required documents (Form DPWH-
INFR-31) to ascertain if the latter are all present in the Financial Proposal. If the required
document is present, the Financial Proposal shall be rated as “passed” for that particular
requirement. In case one or more of the required documents in the Financial Proposal (second
envelope) of a particular Bid is absent - i.e., missing, incomplete or patently insufficient - and/or
if the submitted total bid price exceeds the ABC, the BAC shall rate the Financial Proposaland,
thus, the entire bid, as “failed.” If all of the required documents in the Financial Proposal are
present, the entire bid is rated as “passed.” Bids that are so rated as “passed” shall immediately
be considered for detailed evaluation.
The BAC shall prepare the minutes of the proceedings of the Bid opening that shall include, as a
minimum: (a) the Abstract of Bids as Read including the name of each Bidder, its Bid prices, Bid
Security, and findings of the Preliminary Examination of Bids; and (b) the attendance sheet.
The BAC members shall sign the Abstract of Bids as Read and the BAC Observers may witness
the same. The Abstract of Bids as Read and the minutes of the Bid opening shall be available to
the public upon written request and payment of a specified fee to cover the cost of materials
(IRR Section 29).
Given:
Analysis:
Contractor E: Passes.
Contractor F: Fails because the Total Bid Price exceeds the ABC.
Contractor G: Passes.
Contractor H: Fails because the Bid Security in the form of Surety Bond is only 2% of the
ABC as against the required 5% of ABC, and its validity period is 117 days
which is short of the required 120 days.
In case Electronic Bidding is adopted pursuant to GPPB Resolution No. 23-2013, dated 30 July
2013, the following procedure shall be observed with regard to the opening and preliminary
examination:
a. Upon receipt of manually-filed bids, the Bid Opener, before the Bid Opening, but
immediately after the deadline for submission of bids, shall record and input into the
PhilGEPS E-bidding module the date and time each of the bid was manually received,
including the name of the bidder’s authorized representative.
b. The BAC shall open the bids immediately after the deadline for submission and receipt of
bids, and on the bid opening date.
c. Before the decryption of electronic bids, the Bid Opener must first login to the PhilGEPS
and only then can BAC members input their respective USER IDs and Passwords,
provided however, that PhilGEPS decryption will not take place unless all the members
present and logging in constitute quorum.
d. The Bid Opener shall publicly open the first bid envelopes of bidders who submitted bids
manually to determine each bidder’s compliance with the documents required to be
submitted for eligibility, that is, legal, technical and financial eligibility documents; and
for the technical requirements. For this purpose, the BAC shall check the submitted
documents of each bidder against a checklist of required documents to ascertain if they
are all present, using a non-discretionary “pass/fail” criterion. If a bidder submits the
required document, it shall be rated “passed” for that particular requirement. In this
regard, bids that fail to include any requirement or are incomplete or patently insufficient
shall be considered as “failed”. Otherwise, the BAC shall rate the bidder “passed” in
relation to the eligibility and technical documents in the first envelope.
e. After all the manually submitted first envelopes of bidders were opened, and the results
and findings were encoded in the PhilGEPS Preliminary Examination Report facility, the
Bid Opener shall thereafter proceed to decrypt the electronic First Bid Envelopes
submitted by the On-line Bidders to determine each bidder’s compliance with the
required eligibility and technical documents following the steps and procedures outlined
in Section 5.6.9d above. Thereafter, the Bid Opener shall input the findings and results
into the PhilGEPS’ Preliminary Examination Report facility.
f. Immediately after determining compliance with the requirements in the first envelope, the
Bid Opener shall forthwith open the manually submitted second bid envelope of each
eligible bidder whose first bid envelope was rated “passed.” The second envelope of each
complying bidder shall be opened within the same day.
g. After all the manually submitted second envelopes of bidders were opened, and the
results and findings were encoded in the PhilGEPS Preliminary Examination Report
facility, the Bid Opener shall thereafter proceed to decrypt the electronic Second Bid
Envelopes of each On-line Bidders whose electronic first bid envelope was rated
“passed” to determine each bidder’s compliance with the required financial documents
following the steps and procedures outlined in Section 5.6.9f above.
h. In case one or more of the requirements in the second envelope of a particular bid is
missing, incomplete or patently insufficient, and/or if the submitted total bid price
exceeds the ABC, the BAC shall rate the bid concerned as “failed”. The Bid Opener shall
then input the findings and results into the PhilGEPS’ Preliminary Examination Report
facility.
i. Only bids that are determined to contain all the bid requirements for both components
shall be rated “passed” and shall immediately be considered for evaluation and
comparison.
j. The PhilGEPS shall automatically send an electronic mail to all bidders who failed in the
preliminary examination of the first and/or second envelope.
If its request for reconsideration is denied, the ineligible bidder may protest the decision in
writing to the HoPE within seven (7) calendar days from receipt of the BAC decision. A protest
may be made by filing a verified position paper with the HoPE concerned, accompanied by the
payment of a non-refundable protest fee equivalent to no less than one-tenth percent (0.1%) of
the ABC (IRR Section 55.1).
The protests shall be resolved strictly based on records of the BAC. The HoPE shall resolve a
protest within seven (7) calendar days from receipt thereof. Subject to the provisions of existing
laws on the authority of the DPWH Secretary and the heads of agencies to approve contracts, the
decisions of the HoPE shall be final up to the limit of his contract approving authority (IRR
Section 56).
Even if only one eligible bidder submits a bid, the bidding process shall proceed. If, after going
through the bid opening, evaluation and post-qualification, its bid is found to be responsive to the
bidding requirements, its bid will be declared as a Single Calculated and Responsive Bid (SCRB)
and considered for contract award (IRR Section 36) as provided in Section 5.9.5.
If several bidders submit a bid but all are ineligible, the BAC shall declare the bidding a failure
and follow the procedure in Section 5.11.3.
a. establishing the correct calculated prices of the bids, through a detailed evaluation of the
Financial Proposal of the bids; and
b. ranking the total bid prices so calculated from the lowest to the highest.
The bid with the lowest price shall be identified as the LCB.
a. BAC
b. TWG
c. BAC Secretariat
d. Observers
a. Completeness of bids. Unless the ITB specifically allows partial bids, bids not addressing
or providing all of the required items in the BDs including, where applicable, the BOQ,
shall be considered non-responsive and, thus, automatically disqualified. Where a
required item is provided, but no price is indicated, the same shall be considered as non-
responsive; specifying, however, a “0” (zero) or a dash (“-”) for the said item would
mean that it is being offered for free to the Government, except those required by law or
regulations to be provided for (IRR Section 32.2.1a).
b. Arithmetical corrections. The BAC shall “correct” the bid for any arithmetical or
computational errors, inconsistencies, omissions, and allowed discounts. The BAC shall
also consider bid modifications if expressly allowed in the BDs. Any corrections and
adjustments shall be expressed in monetary terms to determine the “calculated” bid
prices.
In case a bid offers a discount on the total bid price without specifying the pay items
where the discount will be applied, the discount to the total bid price shall be applied
proportionally to all pay items for purposes of evaluating and paying the value of work
accomplished during the implementation stage.
c. Evaluation on equal footing. The BAC shall evaluate all bids on an equal footing to
ensure fair and competitive bid comparison. For this purpose, all bidders shall be required
to include the cost of all taxes, such as, but not limited to, value added tax (VAT), income
tax, local taxes, and other fiscal levies and duties which shall be itemized in the Bid Form
and reflected in the detailed estimates. Such bids, including said taxes, shall be the basis
for bid evaluation and comparison.
d. Rule on discrepancies. In case of discrepancies between: (a) bid prices in figures and in
words, the latter shall prevail; (b) total price per item and unit price for the item as
extended or multiplied by the quantity of that item, the latter shall prevail; (c) stated total
price and the actual sum of prices of component items, the latter shall prevail; (d) unit
cost in the detailed estimate and unit cost in the BOQ, the latter of each shall prevail. The
corrected per item cost for all items shall be the basis for the corrected grand total cost.
e. Total calculated bid prices. The total calculated bid prices are obtained after making the
detailed evaluation and corrections according to the abovementioned criteria. The bids
shall then be ranked in the ascending order of their calculated bid prices. Total calculated
bid prices which exceed the ABC shall be disqualified, unless otherwise specified in BDS
14.3 for foreign-assisted projects.
After all bids have been received, opened, examined, evaluated, and ranked, the BAC shall
prepare the corresponding Abstract of Bids. All members of the BAC shall sign the Abstract of
Bids and attach thereto all the bids with their corresponding Bid Securities and the minutes or
proceedings of the bidding. The Abstract of Bids shall contain the following:
c. Names of bidders and their corresponding calculated bid prices, arranged from lowest to
highest, the amount of Bid Security and the name of the issuing entity.
The provision in this paragraph is not to be considered in the evaluation of the bids to determine
the technically complying bid or the lowest calculated bid, but shall be applied by the Procuring
Entity during the implementation of the contract, particularly in making contract payments:
a. During the evaluation of the bids, the BAC shall take note of any unbalanced bids on
early works and other items for unit-priced contracts.
b. Unbalanced bids are defined as those where the total bid price for a major pay item is
more than fifty percent (50%) of the corresponding cost of that pay item in the ABC. A
major pay item is defined as that whose cost in the ABC is 20% or more of the total
ABC; if there is no such pay item, then major pay items are defined as the two pay items
in the ABC with the highest total costs.
c. Unbalanced bids also include those with a minor pay item whose cost in the ABC is more
than five percent (5%) of the total ABC and where the corresponding bid price for that
pay item is more than one hundred percent (100%) of the ABC for that item.
d. For unbalanced bids, during the implementation of the contract works, the payment for
these major and minor pay items shall be made initially at the unit prices in the ABC, and
the remainder - i.e., contract unit price minus ABC unit price for the major pay item -
shall be paid when the work under the major pay item is completed.
Columns (1 to (4) are to be filled up Columns (5) and (6) are to be filled up by Bidder
by Procuring Entity
“A” pesos and eighty five
centavos
Analysis:
In figures: 7,395,609.16
7,388.885.16
a. After conducting the detailed evaluation of all bids using non-discretionary criterion, the
Bid Opener shall input and record the results of the evaluation into the PhilGEPS’
Evaluation Summary Report facility.
b. The PhilGEPS shall automatically rank the bidders in ascending order based on their total
calculated bid prices to identify the LCB as evaluated and corrected for computational
errors, and other bid modifications. Total calculated bid prices, as evaluated and
corrected for computational errors, and other bid modifications, which exceed the ABC
shall be disqualified. After all bids have been received, opened, examined, evaluated, and
ranked, the system shall thereafter generate the Abstract of Bids in the form of PhilGEPS
Evaluation Summary Report.
c. The BAC shall manually prepare a Resolution whether approving or denying the Abstract
of Bids generated by the system. However, after the BAC Resolution approving the
Abstract of Bids is uploaded in the PhilGEPS, an electronic message shall be
automatically sent to all bidders who participated informing them that the Abstract of
Bids is available for downloading.
The BAC must complete the entire process for Bids Evaluation within seven (7) days from the
deadline for receipt of the bids (IRR Section 32.4).
a. Check if the BAC-TWG Unless the ITB allows partial bids, bids
Financial not providing all required items in the
Component of BDs, including the BOQ, shall be
the bid is disqualified. Where a required item is
complete. provided, but no price is indicated, the
bid shall be considered as non-
responsive, but specifying a “0” or dash
(“-”) for the item would mean that it is
offered for free to the Govt.
3. Sign Abstract of BAC 1 cd All BAC members shall sign the Abstract
Bids as Calculated. of Bids as Calculated. Attach all bids
with Bid Securities and minutes of the
bidding (IRR Section 32.5). Observers
shall also sign the Abstract if, in their
observation, the bidding followed the
correct procedure under RA 9184-IRR.
They shall submit their Procurement
Observation Reports.
These criteria for Post-Qualification shall consider, but not be limited to the bidder’s compliance
with the legal, financial and technical requirements of the bid.
If the BAC determines that the bidder with the LCB passes all the criteria for Post-Qualification,
it shall declare the said bid as the Lowest Calculated Responsive Bid (LCRB), and recommend to
the HoPE the award of contract to the said bidder at its calculated bid price (IRR Section 34.4).
b, Other appropriate licenses and permits required by law and stated in the BDs.
Failure to submit the above requirements on time shall disqualify the bidder for award. If a
finding against the veracity of any of the documents submitted is made, the Procuring Entity
shall cause the forfeiture of the Bid Security in accordance with Section 69 of the IRR (IRR
Section 34.2).
a. Legal Requirements. The BAC shall verify, validate, and ascertain licenses, certificates,
permits, and agreements submitted by the bidder, and the fact that it is not included in the
“blacklist” of contractors provided by the DPWH and the GPPB.
(1) Verification and validation of the bidder’s stated competence and experience,
including the declared Single Largest Completed Contract (SLCC) similar to the
contract being procured.
(3) Verification of availability and commitment, and/or inspection and testing for the
required capacities and operating conditions, of major equipment units to be
owned/leased/under purchase by the bidder for use in the contract under bidding.
(4) Checking the performance of the bidder in its on-going government and private
contracts. If any of these on-going contracts shows:
(b) a reported negative slippage of at least ten percent (10%) in two (2) or more
contracts, or
(c) failure of the contractor to commence repair works on on-going contracts within
seven (7) days and to complete them within thirty (30) days after receipt of the
procuring entity’s notice of defects and deficiencies, or
(d) failure of the contractor to commence repair works on contracts with pending
certificates of acceptance within thirty (30) days and to complete the works within
ninety (90) days after receipt of the procuring entity’s notice of defects and
failures, or
and if the BAC verifies any of these deficiencies to be due to the contractor’s fault or
negligence, the Procuring Entity shall disqualify the contractor from the award for the
procurement of infrastructure contract.
(3) Ascertainment of the sufficiency of the Bid Security as to type, amount, form and
wording, and validity period as required in the Bidding Documents.
c. Financial Requirements. The BAC shall verify, validate and ascertain the bid price
proposal of the bidder, the bidder’s stated net worth and liquid assets, net working
capital, the value of all outstanding or unfinished works under contract, and the bidder’s
NFCC, as recalculated considering developments in the bidders’ other projects, whenever
applicable. This is done to ensure that the bidder can sustain the operating cash flow of
the transaction. This process involves the following:
(1) Examination of the latest audited financial statement, especially current assets and
liabilities.
(2) Checking of up-to-date value of all outstanding or uncompleted works under ongoing
and awarded contracts coinciding with the contract being procured.
The BAC shall complete the post-qualification process within twelve (12) calendar days from the
determination of the LCB. In exceptional cases, the HoPE may extend the post-qualification
period up to maximum of forty five (45) calendar days (IRR Section 34.8).
In case the bidder with the LCB fails the post-qualification, the BAC shall be given a similar
fresh period to conduct the post-qualification of the bidder with the second LCB. Taking into
consideration the Bid Validity Period, the BAC shall request the extension of the Bid Validity
Period and the Bid Security Validity Period of the bidder with the second LCB in accordance
with Section 28.2 of the IRR.
Each Procuring Entity of the DPWH shall promptly post all on-going contracts with negative
slippages of at least ten percent (10%) in the DPWH websites for reference of all other Procuring
Entities in the post-qualification process.
The BAC shall declare the bidding a failure when (IRR Section 35.1):
c. All bids fail to comply with all the bid requirements or fail post-qualification; or
d. The bidder with the Lowest Calculated Responsive Bid refuses, without justifiable cause,
to accept the award of contract, and no award is made in accordance with Section 40 of
RA 9184 and its IRR.
In order to determine the reason for the failed bidding, the BAC shall conduct a mandatory
review and evaluation of the terms, conditions, and specifications in the BDs, including its cost
estimates.
Based on its findings, the BAC shall revise the terms, conditions, and specifications, and if
necessary, adjust the ABC, subject to the required approvals, and conduct a re-bidding with re-
advertisement and/or posting, as provided for in Section 21.2 of RA 9184-IRR.
All bidders who have initially responded to the Invitation to Bid and have been declared eligible
or short listed in the previous biddings shall be allowed to submit new bids. The BAC shall
observe the same process and set the new periods according to the same rules followed during
the previous biddings.
Should there occur a second failure of bidding, the Procuring Entity may resort to negotiated
procurement, as provided for in Section 53.1 of RA 9184-IRR and discussed in Section 6.2.4 of
this Manual Volume II.
Immediately after the BAC has notified the first bidder of its Post-Disqualification, and
notwithstanding any pending request for reconsideration thereof, the BAC shall initiate and
complete the same Post-Qualification process on the bidder with the second LCB. If the second
bidder passes the Post-Qualification, and provided that the request for reconsideration of the first
bidder has been denied, the BAC shall declare the second bidder as the bidder with the LCRB.
The HoPE shall then award the contract to it (IRR Section 34.6).
If the second bidder fails the Post-Qualification, the procedure for Post-Qualification shall be
repeated for the bidder with the next LCB, and so on until the LCRB is determined for award
(IRR Section 34.7).
If no bidder passes Post-Qualification, the BAC shall declare a failure of bidding. It shall then
review the terms and conditions stated in the IB, changing any of such terms and conditions if
needed. It may wish to change the cost estimates or specifications, but without increasing the
ABC. It then must conduct a re-bidding, in the process formulating a new IB and advertising
and posting this as required (IRR Section 35). All bidders that have initially responded to the IB
in the first bidding shall be allowed to submit new bids.
If a second failure of bidding occurs, the Procuring Entity may enter into a negotiated
procurement (IRR Section 35.3).
a. Within one (1) day after the approval of the Abstract of Bids, the bidder with the Lowest
Calculated Bid (LCB) should be notified through electronic mail that the bidder shall
undergo post-qualification and submit the post-qualification requirements within three (3)
calendar days as provided for under Section 34.2 of RA 9184-IRR.
b. If the BAC determines that the bidder with the LCB passes all the criteria for post-
qualification, it shall declare the said bid as the Lowest Calculated Responsive Bid
(LCRB), and recommend to the HoPE the award of contract to the said bidder at its
submitted bid price or its calculated bid price, whichever is lower or, in the case of
quality-based evaluation procedure, submitted bid price or its negotiated price, whichever
is lower.
c. If, however, the BAC determines that the bidder with the LCB fails the criteria for post-
qualification, it shall immediately notify the said bidder electronically in writing of its
post-disqualification and the grounds for it.
d. Immediately after the BAC has electronically notified the first bidder of its post-
disqualification, and notwithstanding any pending request for reconsideration thereof, the
BAC shall initiate and complete the same post-qualification process on the bidder with
the second LCB. If the second bidder passes the post-qualification, and provided that the
request for reconsideration of the first bidder has been denied, the second bidder shall be
post-qualified as the bidder with the LCRB.
e. If the second bidder, however, fails the post-qualification, the procedure for post-
qualification shall be repeated for the bidder with the next LCB, and so on until the
LCRB, as the case may be, is determined for award, subject to Section 37 of the IRR.
f. The post-qualification process shall be completed in not more than twelve (12) calendar
days from the determination of the LCB. In exceptional cases, the post-qualification
period may be extended by the HoPE, but in no case shall the aggregate period exceed
forty five (45) calendar days.
g. The BAC or its Bid Opener shall record and encode the post-qualification results of
manually submitted documents in the PhilGEPS. For electronic documents submitted
online, the BAC or its Bid Opener shall decrypt the documents and the results recorded
automatically.
h. After recording the post-qualification summary and uploading the BAC resolution
declaring the bidder with the LCRB in the PhilGEPS, an electronic message shall be
automatically sent to all bidders who participated informing them that the Notice of
LCRB is available for downloading.
x Mayor’s/Business
Permit Verify validity with Municipal/City
Government.
x Latest Income and
Business Tax Verify with BIR
Returns
In case the submitted total bid price is lower than the total calculated bid price, the BAC shall
compute the ratio of the latter to the former, and multiply this ratio with all submitted unit prices,
for purposes of evaluating and paying the value of work accomplished during the
implementation stage.
Before the expiration of the period of bid validity, the Procuring Entity shall notify the successful
bidder in writing that its bid has been accepted, through a Notice of Award (NOA) received by
the bidder personally or by registered mail or electronically. In case the NOA is not received
personally, its receipt must be confirmed in writing within two (2) calendar days by the
successful bidder and submitted personally or sent by registered mail or electronically to the
Procuring Entity.
Within three (3) calendar days from the submission of such Resolution recommending award of
the contract to the Bidder with the LCRB, the BAC shall notify all other bidders, writing, of its
recommendation (IRR Section 37.1.1).
To facilitate the approval of the award, the BAC shall submit the following documents to the
HoPE:
b. Abstract of Bids;
e. Other pertinent documents required by existing laws, rules, and/or the Procuring Entity.
The HoPE shall approve or disapprove the said BAC Resolution recommending the award within
fifteen (15) calendar days from the receipt of that Resolution (IRR Section 37.1.2).
Immediately upon the approval of the BAC Resolution for award and before the expiration of the
period of bid validity as specified in the BDS of the BDs, the HoPE shall issue the Notice of
Award (NOA) to the bidder with the LCRB, using Form DPWH-INFR-41 (IRR Section
37.1.3). Simultaneously, the HoPE will issue a notice of the results of the bidding to the losing
bidders, using Form DPWH-INFR-42.
In case the Procuring Entity uses electronic bidding pursuant to GPPB Resolution No. 23-2013,
upon approval by the HoPE of the BAC recommendation to award the contract to the LCRB, the
NOA shall be created by the Bid Notice Creator in the PhilGEPS upon instruction of the HoPE,
provided however, that the NOA shall only be created and issued to the LCRB if no request for
reconsideration or protest is received by, or inputted in PhilGEPS. Upon issuance of the NOA to
the LCRB, an electronic message shall be automatically sent to all bidders who participated
informing them of the results of the bidding process.
Within three (3) calendar days from the issuance of the NOA, the BAC, through its Secretariat,
shall post the NOA at the websites of the DPWH and PhilGEPS, at a conspicuous place in the
premises of the Procuring Entity, and at the DPWH-CWR.
Disapproval by the HoPE of the BAC Resolution shall be based on valid, reasonable, and
justifiable grounds. The HoPE shall accordingly notify the BAC in writing, which shall in turn
notify the bidder in writing, consistent with RA 9184-IRR Section 34.5. The BAC may conduct
the post-qualification of the bidder with the next LCB as provided in RA 9184-IRR Section 34.6,
provided that the Bid Security of that bidder is still valid (IRR Section 37.1.3).
A request for reconsideration may be filed by the bidder with the HoPE within three (3) calendar
days from receipt of the notice of disapproval. The HoPE shall resolve with finality the request
for reconsideration within seven (7) calendar days from the filing thereof and furnish the bidder a
copy of the resolution immediately from its promulgation. In no case shall the request for
reconsideration stay or delay the bidding process. However, the request for reconsideration must
first be resolved before any award is made (IRR Section 37.1.3).
In accordance with DO 156, series of 2015, and RA 9194-IRR Section 37.1.4, the NOA shall
require the bidder with the LCRB to submit to the Procuring Entity, within ten (10) calendar
days, from the bidder’s receipt of the NOA, the following documents as conditions for the
signing of the Contract:
c. For a joint venture (JV), Contractor’s PCAB Special JV License and JV Agreement.
d. Performance Security in accordance with Section 3.9.3 of this Manual (Use Form
DPWH-INFR-43 or DPWH-INFR-44, as applicable).
k. Latest Income Tax and Business Returns duly stamped and received by BIR and duly
validated with the tax payments made. Tax Clearance from the BIR to prove full and
timely payment of taxes.
l. For a local contractor, Certification under oath stating that the Contractor is free and
clean of all tax liabilities.
m. For a foreign bidder, valid PCAB License and Registration for the type and cost of the
contract to be bid, when the Treaty or International or Executive Agreement expressly
allows submission of the PCAB License and Registration for the type and cost of the
contract to be bid as a pre-condition to the NOA.
n. Integrity Pledge in accordance with Department Order No. 86, series of 2013.
The NOA shall also require the bidder with the LCRB to formally sign the Contract Agreement
within the said ten (10) calendar days.
If a second failure of bidding occurs, the Procuring Entity may enter into a negotiated
procurement (IRR Section 35.3).
Refusal by the bidder with the LCRB to accept an award, without just cause or for the purpose of
forcing the Procuring Entity to award the contract to another bidder, if proven, is meted with a
penalty of imprisonment of not less than six (6) years and one (1) day by not more than fifteen
(15) years (IRR Section 65.3.4). In addition, administrative penalties of suspension for one (1)
year from participation in government procurement for the first offense, and suspension for two
(2) years for the second offense shall be imposed on the bidder (IRR Section 69.1).
a. If after advertisement, only one prospective bidder applies for eligibility check, in
accordance with the provisions of this Procurement Manual, and it meets the eligibility
requirements or criteria, after which it submits a bid which is found to be responsive to
the bidding requirements.
b. If after advertisement, more than one prospective bidder applies for eligibility check, in
accordance with the provisions of this Procurement Manual, but only one bidder meets
the eligibility requirements or criteria, after which it submits a bid which is found to be
responsive to the bidding requirements.
c. If after the eligibility check, more than one bidder meets the eligibility requirements or
criteria, but only one bidder submits a bid, and its bid is found to be responsive to the
bidding requirements.
a. Contract Documents. These shall consist of the following documents which shall be
interpreted in the following order of priority:
(2) Documents forming part of the Contract Agreement in the following order of priority:
(b) Contractor’s Bid comprised of its Technical and Financial Proposals, as calculated
by the Procuring Entity and conformed to by the Contractor through the NOA
(c) Bidding Documents (BDs), other than items (2)(d) to (2)g below for the Contract,
with Bulletins
(d) Specifications
(e) Drawings
(i) Integrity Pledge under Department Order No. 86, series of 2013
i. Construction Methods
The documents in items (1) and (2)-(b) to (2)-(c) above shall be provided by the
Procuring Entity. As indicated in the NOA, the documents in items (2)-(a), (2)-(h) to 2(j)-
i to vi shall be submitted by the winning bidder to the Procuring Entity within ten (10)
calendar days from the date of its receipt of the NOA.
(4) Approved BAC Resolution declaring the LCRB and Recommending Award
b. Responsibility for Posting of Security. The Performance Security shall be posted by the
bidder with the LCRB before the signing of the contract by both parties (IRR Section
39.1). It is one of the requirements to be submitted by the winning bidder to form part of
the Contract (IRR Section 37.2.3).
c. Forms and Amounts of Security. The Performance Security must be in any of the
following forms with the corresponding required amounts not less than the percentage of
the total contract price in accordance with the following schedule (IRR Section 39.2):
The required amounts of the Performance Security stated above shall be increased by the
amount of any advance payment not exceeding fifteen percent (15%) of the contract price
that the contractor may avail itself of under the terms of the contract.
d. Conditions of Performance Security. The bidder with the LCRB shall post a Performance
Security which complies with the following conditions:
(1) The Performance Security must be executed in the form prescribed by the Procuring
Entity in the ITB.
(2) The Performance Security must at least be co-terminus with the period of the contract
up to the issuance of the Certificate of Acceptance at the end of the Defects Liability
Period.
(3) The following provisions shall form part of the Performance Security: “The right to
institute action on the penal bond pursuant to Act No. 3688 of any individual, firm,
partnership, corporation and association supplying the Contractor with labor and
materials for the prosecution of the work is hereby acknowledged and confirmed.”
The authorized contract signatory of the Procuring Entity is encouraged to sign the Contract
within the same day as the signing by the bidder as there are penalties against delaying, without
justifiable cause, the award of the contract (IRR Section 65.1). Moreover, it would be best for
the winning bidder and the authorized contract signatory, to sign/execute the contract together –
provided that all contract documents and requirements are complete – so that both may
personally appear before a Notary Public.
c. pursuant to Section 65.3d) of the IRR, for refusal to accept an award without just cause
for the purpose of forcing the Procuring Entity to award the contract to another bidder,
upon conviction, its Authorized Managing Officer (AMO) shall suffer the penalty of
imprisonment of not less than six (6) and one (1) day and not more than fifteen (15)
years; and
d. pursuant to Section 69.1d) of the IRR, for refusal to accept an award or enter into contract
with the Government without justifiable cause, upon determination of administrative
liability, it shall suffer the administrative penalties of suspension for one (1) year from
participation in Government procurement for the first offense, and suspension for two (2)
years for the second offense.
The BAC must then initiate and complete the Post-Qualification of the bidder with the second
LCB. This procedure must be repeated until the LCRB is determined for award. If no bidder
passes Post-Qualification, the BAC shall declare the bidding a failure and conduct a re-bidding
with re-posting and re-advertisement. Should there be another failure of bidding after the
conduct of the re-bidding, the Procuring Entity may enter into a negotiated procurement (IRR
Section 40.2).
If the bidder that fails to post the Performance Security and sign the contract is the one with the
SCRB, the BAC must declare the bidding a failure. It shall then conduct a re-bidding with re-
posting and re-advertisement. Should there be another failure of bidding after the conduct of the
re-bidding, the Procuring Entity may enter into a negotiated procurement (IRR Section 40.3).
If, however, the failure of the bidder with the LCRB or SCRB to sign the contract within the
prescribed period is not due to its fault, the sanctions mentioned above shall not be imposed
(IRR Section 40.1).
Upon approval of the Contract, the Procuring Entity shall notify the other Bidders that their bids
were unsuccessful.
Within three (3) calendar days after contract approval, the Procuring Entity, through its
Procurement Unit, shall reflect the approved contract in the PCMA.
If no action on the contract is taken by the HoPE or the appropriate approving authority within
the specified periods, the contract concerned shall be deemed approved. However, where further
approval by the Office of the President is required, the contract shall not be deemed approved
unless and until the Office of the President gives actual approval to the contract concerned (IRR
Section 38.3).
Within fifteen (15) calendar days from the issuance of the NTP, the Procuring Entity, through the
BAC Secretariat, shall post a copy of the NTP, together with the approved Contract Agreement,
in the websites of the DPWH and the PhilGEPs.
In case Electronic Bidding is adopted pursuant to GPPB Resolution No. 23-2013, dated 30 July
2013, the Bid Notice Creator shall update the “proceed date” and the “contract start and end
dates” and upload a copy of the Notice to Proceed and approved Contract in the PhilGEPS.
5.10.8 Activities to Finalize, Sign and Approve Contract, and to Issue NTP
Table 23. Activities in Finalizing, Signing and Approving Contract
Activity Responsible Time Rules
Performer Frame
1. Prepare a checklist of documents to IU ½ cd Use Form DPWH-
comprise the contract. INFR-49 and Form
DPWH-INFR-50.
2. Receive documents 2-(d) to 2-(g)
in Section 3.9.2.1-a above from IU 10 cd
the winning bidder.
10. Review and sign, together with the Authorized sig- 1 cd DPWH signatory is
Contractor, the Contract, and send natories of PE usually the PMO Head
11. Review and approve the Contract. HoPE, after 3 cd-DO Within limits of
review by Asst 5 cd-RO delegated approving
HoPE 10 cd- CO authority.
12. Issue Notice to Proceed (NTP) to HoPE or 1-5 cd Use Form DPWH-
the Contractor authorized from INFR-52.
representative contract
approval
Total 20.5-31.5
cd
b. If the BAC is found to have failed in following the prescribed bidding procedures, for
which the applicable sanctions shall be applied to the erring officers. The following are
some instances when a BAC fails to follow procedures:
(2) Exceeding the required periods for eligibility check, bid evaluation, post-qualification
or awarding the contract, without justifiable cause.
(3) Conducting the Pre-Bid Conference or issuing the Bidding Documents in less than the
required number of days before the deadline for the receipt and opening of bids.
(4) Requiring or allowing a bidder to submit additional documents after the deadline
which is tantamount to improving its bid.
c. If, for any of the following justifiable and reasonable ground, the award of the contract
will not redound to the benefit of the Government:
(1) The physical and economic conditions have significantly changed so as to render the
contract works no longer economically, financially or technically feasible as
determined by the HoPE.
(2) The contract works are no longer necessary as determined by the HoPE.
(3) The source of funds for the contract has been cancelled, withheld or reduced through
no fault of the Procuring Entity.
If the HoPE is proven to have exerted undue influence or pressure on any member of the BAC or
any officer or employee of the Procuring Entity to take a particular action which favors or tends
to favor a particular bidder, or abuses his power to reject any and all bids, as provided by the
Reservation Clause, with manifest preference to any bidder who is closely related to him in
accordance with IRR Section 47, he shall be meted with the penalties provided in IRR Section
65 (IRR Section 65.1c and e).
(3) All bids fail to comply with all the bid requirements or fail post-qualification.
(4) The bidder with the Lowest Calculated Responsive Bid refuses, without justifiable
cause, to accept the award of contract, and no award is made in accordance with
Section 40 of RA9184 and its IRR).
b. To determine the reason for the failed bidding, the BAC shall conduct a mandatory
review and evaluation of the terms, conditions, and specifications in the Bidding
Documents, including its cost estimates.
c. Based on its findings, the BAC shall revise the terms, conditions, and specifications, and
if necessary, adjust the ABC, subject to the required approvals, and conduct a re-bidding
with re-advertisement and/or posting(IRR Section 21.2).
d. All bidders who have initially responded to the IB and have been declared eligible in the
previous biddings shall be allowed to submit new bids. The BAC shall observe the same
process and set the new periods according to the same rules followed during the previous
biddings.
e. Should there occur a second failure of bidding, the Procuring Entity may resort to
negotiated procurement (IRR Section 53.1).
SECTION 6
x Singular responsibility. Since both design and construction are in the hands of the
contractor, there is a single point of responsibility for quality, cost and schedule
compliance. This precludes buck-passing and finger-pointing. The DPWH can focus on
definition of project scope and requirements definition and timely decision-making,
rather than on coordination between the designer and the builder.
x Quality. The bigger responsibility inherent in DB provides a motivation for high quality
and proper performance of the facility to be provided by the contractor. Based on the
requirements of the DPWH which are defined in performance terms, the designer-builder
is responsible for producing the results accordingly. The designer-builder guarantees to
the DPWH that the design documents are complete and free from error. By contrast, in
the traditional design-bid-build approach, the DPWH guarantees to the contractor that the
design documents are complete and free from error; consequently, this approach relies on
restrictive contract language, extensive audit and inspection by the DPWH’s Engineer or
construction supervision consultant, and sometimes on cumbersome legal clarification, to
assure project quality.
x Time Savings. Because design and construction overlap, the overall design and
construction time can be significantly reduced. DB is especially useful for fast-track
projects. Construction is allowed to start in advance of the working drawings being fully
completed. The time savings translate into substantial cost savings and earlier use of the
facility. By comparison, in the traditional design-bid-build scheme, considerable time is
spent in hiring the design consultant, reviewing the design documents, and procuring the
construction contract.
x Reduced Administrative Burden. After award, the DPWH does not need to spend much
time and money, through its in-house staff or consultants, in seeing to it that the work is
done by the contractor precisely as required by the design documents prepared by the
designer, and in coordinating and arbitrating between separate design and construction
contracts.
x Less Connivance. DB is less prone to collusion because bidders will have their own
designs.
6.1.3 DB Applications
The Procuring Entity may adopt DB in the following cases, among others:
a. For priority projects as determined by the Secretary of the DPWH and/or those under the
DPWH Medium Term Public Investment Program (MTPIP)that need to be completed
within a tight completion schedule.
c. For infrastructure projects where design, equipment, plant and construction can be
provided exclusively by a company or where manufacturer’s know-how is important in
the construction of such facility.
d. For projects where there are previously approved standard designs but where an
innovation in design and construction methods under the DB scheme is likely to result in
lower costs and higher quality projects. Examples of these are school buildings and
bridges.
a. Project Description
e. Preliminary Investigations
f. Utility Locations
i. Minimum requirements for a Construction Safety and Health Program for the project.
The above data are for the bidder’s/contractor’s reference only. The Procuring Entity does not
guarantee that these data are fully correct, up to date, and applicable to the project at hand. The
contractor is responsible for adopting its own design under the DB scheme. The contractor is
responsible for the accuracy and applicability of all data, including the above, that it will use in
its DB proposal and services.
The Procuring Entity shall be responsible for the acquisition of the right-of-way and shall
provide a budget for this purpose.
Section VII - Procuring Entity’s Concept Design Drawings and Other Reference Data
The contents of these Sections of the SBDs-DB are essentially patterned after the corresponding
Sections for the procurement of regular (non-DB) contracts as discussed in Section 4 of this
Manual Volume II, but modified and customized to suit the particular requirements of DB
projects of the DPWH.
The purpose of the MPSS is to establish the minimum performance or functional requirements
that the DB contractor must comply with in the design and construction of the project.
The MPSS for DB must be outcome-based. The MPSS shall define what and how the
infrastructure facility should perform (outcome) – without specifying exactly what it should look
like and how it should be produced.(This is in contrast to the conventional scheme where the
detailed design is defined and prescribed by the DPWH and the bidder constructs the facility
following that design. This conventional scheme is output- and input-based: it specifies what the
facility should look like (output) and how it should be produced (inputs)).
For typical infrastructure projects of the DPWH, the MPSS for DB shall usually provide the
following standards:
b. Geometric and Structural Capacity and Service Level to Meet Demand– e.g., road
capacity to allow projected traffic to travel at 80-100 kph with a traffic volume-capacity
ratio not exceeding 0.6, 20-ton truck loading, earthquake load with aseismic acceleration
coefficient of 0.4 g, wind load of 250 kph, major flood with a return period of 1 in 100
years, classroom to fit 40 pupils, etc.
buildings, ventilation and lighting requirements, noise levels, impact on air and water
pollution.
An illustrative example of MPSS for a DB project is given in ANNEX IIC, Section VI.
1. For the construction component, the bidder shall meet all of the ER provided in
Section 2.6 of this Manual for infrastructure (IRR Section 23.5). These include the
following:
a. In addition, for the design component, the bidder must meet the following
supplemental ER:
(1) Relevant statements of all ongoing, completed, and awarded but not yet
started design and DB-related contracts The statements shall include, for each
contract, the following:
(3) Valid licenses issued by the Professional Regulatory Commission (PRC) for
design professionals in accordance with the provisions under Section
24.1(a)(iv) of RA 9184-IRR.
(2) If the bidder has no experience in DB projects on its own, it may enter into
sub-contracting, partnership, or JV with design or engineering firms for the
design portion of the contract. The design or engineering firm must, however,
have satisfactorily completed the design of a similar project costing at least
50% of the ABC of the DB project to be procured.
(4) When the design services in which the JV wishes to engage involve the
practice of professions regulated by law, all those who will actually perform
the services must be Filipino citizens and registered professionals authorized
by the appropriate regulatory body to practice those professions and allied
professions. Where foreign designers are required, the foreign designer must
be authorized by the appropriate Philippine Government professional
regulatory body to engage in the practice of those professions and allied
professions.In accordance with DPWH DO 195, series of 1992, pursuant to
the provisions of RA 544, the procurement and employment of corporations as
consultants for the practice of civil engineering under locally-funded projects
is not allowed.
(5) The bidder’s design manager must have a minimum experience of eight (8)
years of design work in the same position and/or on project categories similar
to those of the DB contract at hand, and a minimum total design experience of
twelve (12) years regardless of position or project category, as determined by
the Procuring Entity depending on the nature, size, and complexity of the
contract to be procured.
The Technical Proposal shall include all requirements for infrastructure projects under
Section 25.2b of RA 9184-IRR as provided in Section of this Manual, recapitulated as
follows (Section 10, Annex G of IRR):
(2) In the case of a JV, a PCAB Special JV License applicable to the type and cost of
contract to be procured, unless otherwise provided in the loan/grant agreements for
foreign-assisted projects.
(3) Bid Security in the prescribed form, amount and validity period (Form DPWH-
INFR-10, DPWH-INFR 11, or DPWH-INFR-12).
(c) List of contractor’s major construction and laboratory equipment units to be used
for the contract – which are owned, leased, and/or under purchase agreements,
supported by certification of availability of the equipment from the equipment
lessor/vendor for the duration of the project (Form DPWH-INFR-15).
(d) Omnibus sworn statement by the prospective bidder or its duly authorized
representative as to the following (Form DPWH-INFR-16):
iii. The signatory is the duly authorized representative of the prospective bidder,
and granted full power and authority to do, execute and perform any and all
acts necessary and/or to represent the prospective bidder in the viding, with
the duly notarized Secretary’s Certificate attesting to such fact, if the
prospective bidder is a corporation, partnership or joint venture.
vii. It did not and shall not give or pay any, directly or indirectly, any
commission, amount, fee, or any form of consideration, pecuniary or
otherwise, to any person or official, personnel or representative of the
government in relation to any procurement or activity.
In addition to the above, the Technical Proposal shall include the following requirements:
(5) Bidder’s Preliminary Engineering Design Plan for the Project which shall comply
with the MPSS and show (a) the overall configuration of the facility when completed,
(b) the scope and components, and (c) the functions, service levels, and performance
characteristics of the Project outputs, - with a degree of detail within +/- 15-20 % of
the final quantities of the Project components. Section VII of ANNEX II-1.3, which
shows the SBDs for DB projects, gives the required content of the Preliminary
Engineering Design Plans.
(6) Design and construction methods which shall conform to the MPSS.
(7) List of design personnel to be assigned to the contract to be bid, with their complete
qualification and experience data.
(8) Value engineering (VE) analysis of design and construction methods, which shall be
undertaken I accordance with the DPWH Guidelines for VE given in Appendix 2.1
of the Main Guidelines of this Manual Volume II.
The Financial Proposal of each bidder shall consist of the following (Section 10, Annex
G of IRR):
(1) Lump sum bid prices, which shall include the detailed engineering cost, in the
prescribed Bid Form.
(2) Detailed estimates. including a summary sheet, indicating the detailed engineering
costs, unit prices of construction materials, labor rates and equipment rentals used in
coming up with the bid.
(3) Cash flow by the quarter and payments schedule based on deliverable outputs.
Similar to the procedure for regular (non-DB) contracts discussed in Section 3.5.8 of this
Manual Volume II, the BAC shall open in public and conduct a preliminary examination of the
first bid envelope – i.e., Technical Proposal– of each bidder for the DB contract. The purpose of
this examination is solely to determine the “presence-or-absence” of each of the required
documents comprising the Technical Proposal, as stated in Section 4.1.9-a above, using a
simple non-discretionary “pass (if present) – or - fail (if absent)” criterion, with the aid of a
checklist (Form DPWH-INFR-31). Thus, if a required technical document is present, the BAC
shall rate it “passed” for that particular requirement. If all of the required technical documents
are present, the BAC shall be rated as “passed” overall during the preliminary examination of
the Technical Proposal. On the other hand, if any of the required technical document is absent -
i.e., missing, incomplete, or patently insufficient - the BAC shall rate the bidder as “failed”
overall in the preliminary examination of the Technical Proposal.
On the same day, the BAC shall then open in public and similarly conduct a preliminary
examination of the second bid envelope – i.e., Financial Proposal – of each remaining eligible
bidder whose first bid envelope (Technical Proposal) was rated “passed” during the preliminary
examination. The BAC shall examine the submitted documents comprising the Financial
Proposal, as stated in Section 4..9-b above, against a checklist of required documents – using
Form DPWH-INFR-32– to determine their “presence-or-absence,” using a non-discretionary
“pass (if present) /fail (if absent)” criterion. If all of the required financial documents are
present, the BAC shall be rated as “passed” overall during the preliminary examination of the
Financial Proposal. If, however, at least one of the required documents in the Financial Proposal
is absent – i.e., missing, incomplete or patently insufficient, the BAC shall rate the bid
concerned as “failed.” Furthermore, if the submitted total bid price exceeds the ABC, the BAC
shall rate the bid concerned as “failed” in the preliminary examination of the Financial
Proposal.
In summary, only bids that are determined to contain all the required documents for both
Technical and Financial Proposals shall be rated as “passed” during the preliminary
examination of bids for the DB contract.
(1) The BAC shall check if the bidder complies with the Eligibility Criteria mentioned
in Section4.1.7a for the contract being procured.
(a) For the construction component, the BAC shall undertake the Eligibility Check
electronically using the data and program in the DPWH Civil Works Registry
(CWR). The BAC shall enter into the CWR the PCAB License Number and/or
name of each bidder for the contract to be procured. At this time, it is presumed
that the BAC had already approved the Bidding Documents for the contract to be
procured, and that the BAC Secretariat had already entered into the CWR the
Contract Profile (CP) which provides the basic contract data, including the ABC,
works similar to those of the contract to be bid, and contract duration. The CWR
program will then electronically process and determine if the bidder meets the
following eligibility requirements:
(a-1) The cost of the bidder’s largest completed similar contract is at least 50%
of the ABC of the project to be procured.
(a-2) The bidder’s NFCC is at least equal to ABC of the project to be procured.
(b) For the design component, the BAC shall check if the bidder meets the following
eligibility requirements:
(b-2) The designated design professionals possess valid licenses issued by the
PRC.
(b-3) The designated design manager has a minimum experience of eight (8)
years of design work in the same position and/or on project categories
similar to the contract at hand, and a minimum total design experience of
twelve (12) years regardless of position or structure category.
(c) If the bidder complies with the criteria in Section 4.1.11-a(1)(a) and (b) above,
the BAC shall consider the bidder as eligible.
(2) The BAC shall then evaluate if the bidder meets all of the other Technical Proposal
requirements, particularly the following:
For example, the BAC shall check compliance of the following plans with the
MPSS:
Table 24. Rating System for Adequacy of Approach and Methodology for
Design
(c) Quality of personnel to be assigned to the project which covers suitability of key
staff to perform the duties of the particular assignments and general
qualifications and competence, including education and training of the key staff.
For this purpose, the bidder must meet the following minimum requirements for
education and experience of the key personnel:
All bidders that pass all of the Technical Evaluation criteria under Section 4.1.10-a(1)
and a(2) shall be considered on equal footing. No bonus points shall be given to a bidder
that submits a Conceptual Design and Methodology that exceeds the requirements of the
MPSS or key personnel whose education and experience exceed the minimum required.
b. The BAC shall then conduct a detailed evaluation of the Financial Proposal of each
bidder that passes the Technical Proposal requirements. The BAC shall use non-
discretionary criteria - including arithmetical corrections for computational errors - as
stated in the Section 3.6.4 of this Manual Volume II, and thus determine the correct total
calculated bid prices. The BAC shall automatically disqualify any total calculated bid
price which exceeds the ABC. The total calculated bid prices (not exceeding the ABC)
shall be ranked, in ascending order, from lowest to highest, and recorded in the Abstract
of Bids as Calculated, using Form DPWH-INFR-35.
The bid with the lowest total calculated bid price shall be identified as the Lowest
Calculated Bid (LCB).
The BAC shall conduct the post-qualification on the LCB for the DB contract in accordance
with the provisions of Section 3.7 of this Manual Volume II. If the bidder with the LCB passes
the post-qualification, the BAC shall declare that bid as the Lowest Complying Responsive Bid
(LCRB) and recommend to the HoPE the award of the DB contract to that bidder pursuant to
Section 3.7. The other relevant provisions of this Manual Volume II shall apply.
a. No works shall commence unless the DB Contractor has submitted the required
documentary requirements and the Procuring Entity has given its written acceptance of
the Contractor’s DED. Work execution shall be in accordance with reviewed and
accepted DED and related documents.
b. The Contractor shall be responsible for obtaining all necessary information as to risks,
contingencies and other circumstances which may affect the works and shall prepare and
submit all necessary documents specified by the procuring entity to meet all regulatory
approvals as specified in the contract documents.
c. The Contractor shall submit a detailed program of work within fourteen (14) calendar
days after the issuance of the Notice to Proceed for approval by the Procuring Entity that
shall include, among others:
(1) The order in which it intends to carry out the work including anticipated timing for
each stage of design/detailed engineering and construction;
(2) Periods for review of specific outputs and any other submissions and approvals;
(3) Sequence of timing for inspections and tests as specified in the contract documents;
(5) Number and names of personnel to be assigned for each stage of the work;
(6) List of major equipment required on site for each major stage of the work; and
(7) Description of the quality control system to be utilized for the project.
d. Upon award of the DB contract, the Contractor shall be responsible for the conduct of all
necessary detailed engineering investigations, surveys and the preparation of the detailed
engineering design (DED) in accordance with the provisions of Annex “A” of RA 9184-
IRR.
e. The Procuring Entity shall ensure that all the necessary schedules with regard to the
submission, certification as to compliance with the MPSS, and acceptance of the DED
and the details of the construction methods and procedures shall be included in the
contract documents.
f. The Procuring Entity shall review, order rectification, and certify (as to compliance with
the MPSS) and accept or reject the submitted DED within these schedules. All
instructions for rectification shall be in writing stating the reasons for such rectification.
The Contractor shall be solely responsible for the integrity of its DED and the
performance of the structure, notwithstanding the certification and acceptance of the
DED by the Procuring Entity.
h. The Procuring Entity may allow partial or sectional review, certification, and acceptance
of the Contractor’s DED and issuance of sectional of corresponding partial Notices to
Proceed (NTPs).
i. As a rule, changes in design and construction requirements shall be limited only to those
that have not been anticipated in the contract documents prior to contract signing and
approval. The following guidelines shall govern approval for Variation Orders (VOs):
(2) VOs resulting from design errors, omissions or non-conformance with the MPSS and
the contract documents by the Contractor shall be implemented by the Contractor at
no additional cost to the Procuring Entity.
(3) Provided that the Contractor suffers delay and/or incurs costs due to changes or
errors in the Procuring Entity’s MPSS, he shall be entitled to either one of the
following:
(a) An extension of time for any such delays under Section 10 of Annex “E” of RA
9184-IRR.
(b) Payment for such costs as specified in the contract documents, provided that the
cumulative amount of the VOs does not exceed ten percent (10%) of the original
contract price.
(4) VOs initiated by the Procuring Entity shall not exceed ten percent (10%) of the
original contract price. The cost of the VOs shall be based on applicable unit prices
in the Contractor’s detailed estimates submitted as part of its bid, or on negotiated
unit prices if the work items are not in the detailed estimates, less cost of applicable
mobilization.
j. The contract documents shall include the manner and schedule of payment specifying
the estimated contract amount and installments in which the contract price will be paid.
k. The Contractor shall be entitled to advance payment subject to the provisions of Section
4 of Annex “E” of RA 9184-IRR.
l. The Procuring Entity shall define the quality control procedures for the design and
construction in accordance with agency guidelines and shall issue the proper certificates
of acceptance for sections of the works or the whole of the works as provided for in the
contract documents.
n. All DB contracts shall have a minimum Defects Liability Period of one (1) year after
contract completion or as provided for in the contract documents. This is without
prejudice, however, to the liabilities imposed upon the engineer/architect who drew up
the plans and specification for a building sanctioned under Section 1723 of the New
Civil Code of the Philippines.
o. The Contractor shall be liable for design and structural defects and/or failure of the
completed project within the warranty period specified in Section 62.2.3 of RA 9184-
IRR.
a. Subject to the prior approval of the HoPE, and whenever justified by the conditions
provided in RA 9184-IRR, the Procuring Entity may, in order to promote economy and
efficiency, resort to negotiated procurement as provided in this Section. In all instances,
the Procuring Entity shall ensure that the most advantageous price and contract for the
government is obtained.
c. The method of procurement to be used shall be as indicated in the approved APP. If the
original mode of procurement in the APP 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 HoPE. Such changes must be reflected in the APP
and submitted to the GPPB.
d. In all instances of negotiated procurement, the BAC, through the Secretariat, shall post,
for information purposes, the notice of award or contract in the DPWH and PhilGEPS
websites and at any conspicuous place reserved for this purpose in the premises of the
Procuring Entity.
b. Emergency Cases
c. Take-Over of Contracts
e. Agency-to-Agency Agreement
g. Proprietary Rights
The Procuring Entity may resort to negotiated procurement in case there is a failure of
public bidding for the second time as provided in Section 35 of RA 9184-IRR because
of the following:
(3) All bids fail to comply with all the bid requirements or fail post-qualification.
(4) The bidder with the Lowest Calculated Responsive Bid refuses, without justifiable
cause, to accept the award of contract, and no award is made in accordance with
Section 40 of RA 9184-IRR.
b. Procedure
(1) After the mandatory review of the terms, conditions, specifications, and cost
estimates, as prescribed in Section 35 of the IRR, the BAC, based on its findings, as
assisted by the Secretariat, TWG and IU, may revise and agree on the technical, legal
and financial eligibility requirements and technical specifications, and if necessary,
adjust the ABC, subject to the required approvals. However, the ABC cannot be
increased by more than twenty percent (20%) of the ABC for the last failed bidding.
The adjusted ABC shall not exceed the appropriation in the GAA net of other
authorized project expenses, e.g., costs of right-of-way, detailed engineering,
construction supervision, and project management of the IO.
(2) The BAC shall invite at least three (3) contractors, drawn from the DPWH CWR,
including those disqualified in previous biddings for the project, for negotiations to
ensure effective competition. Bona fide contractors licensed with the PCAB whose
eligibility documents or and Membership are on file with the Procuring Entity and
with a PhilGEPS Certificate of Registration, and who are eligible for the type of
contract/project where the subject contract falls may be invited for negotiation. At
the same time, the DPWH shall post the invitation for at least three (3) calendar days
in the websites of the DPWH and the PhilGEPS and in any conspicuous place in the
premises of the Procuring Entity, for other interested contractors registered with the
CWR to conduct negotiations with the BAC. Even if only one bidder should respond
to such invitation and posting, the Procuring Entity shall proceed with the
negotiation subject to the rules prescribed hereunder.
(4) Following completion of the negotiations, the Procuring Entity shall request all
contractors remaining in the proceedings to submit, on a specified date, a best offer
based on the final technical and financial requirements.
(5) The Procuring Entity shall select the successful offer, which should meet the
Procuring Entity’s technical and financial requirements and determined to have the
single/lowest calculated responsive offer.
(6) Performance and Warranty Securities shall be required from the winning consultant.
(2) When time is of the essence arising from natural or man-made calamities or
(b) to restore vital public services, infrastructure facilities and other public utilities.
b. Procedure
(1) The IU shall submit to the BAC or the HoPE a Request, accompanied by appropriate
supporting documents identifying the emergency sought to be addressed, and the
necessary infrastructure works that have to be procured to address the emergency.
(2) The BAC, assisted by its Secretariat, TWG and IU, shall immediately prepare the
necessary Bidding Documents – DED, Specifications, Drawings, GCC, SCC –
necessary to address the emergency.
(3) The BAC may directly negotiate with a contractor, drawn from the DPWH CWR,
with the technical, legal, and financial capability, including appropriate PCAB
license, SLCC, and NFCC, to execute the works to address the emergency. Because
of the emergency nature of the attending circumstances and the urgency to address
the same, the identified contractor shall immediately submit the required documents
to the BAC to demonstrate its technical, legal, and financial capability.
(4) Upon confirmation and ascertainment of such capability to address the emergency,
the HoPE, upon recommendation of the BAC, shall immediately award the contract to
the contractor.
(5) Because of the emergency nature of the attending circumstances, and the imminent
danger to life, limb or property, the BAC and the HOPEHOPE, through an
appropriate Resolution or Office Order, may authorize an official of the Procuring
Entity to directly negotiate with a contractor to efficiently and expeditiously deal with
emergency sought to be addressed.
(6) In all instances of Negotiated Procurement through any of the Emergency modalities,
the HoPE shall confirm in writing the existence and veracity of the ground or grounds
relied upon before approving the ensuing contract.
(7) Considering that the underlying reason to support a Negotiated Procurement through
the Emergency modality relates to the “time element” as when there is (a) imminent
danger to life or property, or (b) time is of the essence, or (c) immediate action is
necessary, the Procuring Entity, through the HoPE, BAC, Secretariat and IU, should
consider the appropriate timing or the proximity of time between the actual
procurement activity to be conducted and the emergency sought to be addressed, such
that when the reason or cause of the emergency has already been abated, adoption of
competitive bidding as the primary mode of procurement shall be considered.
(8) 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
(9) For Emergency Contracts, a Performance Security shall be required from the winning
contractor. The Procuring Entity may require a Warranty Security depending on the
nature of the procurement project.
(1)The contract, previously awarded through Competitive Bidding, has been rescinded or
terminated for causes provided for in the contract and existing laws, and
(b) to restore vital public services, infrastructure facilities and other public utilities.
b. Procedure
(1) The BAC shall negotiate with and post-qualify the second Lowest Calculated Bidder
for the project under consideration at the bidder’s own original bid price, applicable
to the remaining works to be done. Authority to negotiate contracts for projects under
the foregoing exceptional cases shall be subject to prior approval by the HOPEHOPE
concerned, within their respective limits of approving authority.
(2) If negotiation fails, then the BAC shall negotiate with and post-qualify the next
Lowest Calculated Bidder at his own original price.
(3) If the negotiation fails another time, the process is repeated until all the bidders from
the previous bidding have been considered.
(4) If the negotiation fails and there is no bidder left from the previous bidding or if the
original awardee is a Single Calculated Responsive Bidder, the BAC may either
invite at least three (3) contractors, drawn from the CWR, with appropriate PCAB
license, SLCC, and NFCC, to submit their bids and negotiation shall be made starting
with the Lowest Calculated Bidder, or resort to any other alternative mode of
procurement or to public bidding.
(5) In case of successful negotiation, the HoPE, upon recommendation of the BAC, shall
issue the NOA of Award and the contract to the Lowest Calculated Responsive
Bidder who meets the technical requirements for the project, in accordance with
Section IV (I) of the Guidelines for Alternative Methods of Procurement under RA
9184-IRR.
(6) For Take-Over Contracts, Performance and Warranty Securities shall be required
from the winning contractor.
(7) Contractors are mandated to register with the PhilGEPS and provide a PhilGEPS
Registration number as a condition for award of the contract.
(2) The subject contract to be negotiated has scopes of work similar or related to those of
the original contract.
(3) The subject contract, plus the remaining works under the original contract, is within
the contracting capacity of the contractor considering the legal, technical (e.g. PCAB
license, SLCC) and financial (e.g. NFCC) requirements for eligibility.
(4) In determining the required PCAB License, SLCC and NFCC, the sum of (a) the
value of the remaining works under the original contract and (b) the ABC of the
contiguous or adjacent work shall be considered.
(5) The contractor uses unit prices which are the same as or lower than unit prices in the
original contract less mobilization cost. New work items may be considered in the
adjacent or contiguous contract provided that their cost does not exceed 10% of the
original contract cost and provided that the direct costs of the new items are based on
the contractor’s estimate as validated by the Procuring Entity via a documented
canvass of prices in accordance with existing rules and regulations. The direct cost of
the new work item shall then be combined with the mark-up factor (e.g., overhead,
contingencies, and miscellaneous, profit) allowed under DO 22, series of 2015.
(5) The total cost of the adjacent or contiguous contract does not exceed the amount of
the original contract.
(6) The contractor has no negative slippage in its original contract during the time of
negotiation.
(7) Negotiations for the procurement are commenced before the expiry of the original
contract.
In infrastructure projects, the phrase “adjacent or contiguous” refers to projects that are in
actual physical contact with each other or in the immediate vicinity such that the required
equipment and other resources can easily be mobilized.
b. Procedure
(1) The BAC shall negotiate with the contractor of the on-going infrastructure project.
(2) In case of successful negotiation, the BAC shall submit its recommendation to the
HoPE together with all the supporting documents for the transaction.
(8) (3) In case of approval, the HoPE shall immediately issue the Notice of Award
(NOA) in accordance with Section IV(I) of the Guidelines for Alternative Methods
of Procurement under RA 9184-IRR.
(4) For Adjacent or Contiguous Contracts, Performance and Warranty Securities shall be
required from the winning contractor.
a. Definition
All procurement to be undertaken by the Servicing Agency, including those required for
the project, shall continue to be governed by the provisions of R.A. 9184.
(1) Type A involves the DPWH as the Servicing Agency for other Client Agencies. The
Client Agencies may include non-infrastructure entities such as the Judiciary (e.g.,
Halls of Justice), Department of Health (e.g., hospitals), and State Universities (e.g.,
school buildings). The Client Agencies shall provide the funds for the projects
covered by the Agency-to-Agency Agreement. The DPWH may provide services to
these Client Agencies which range between the following extremes:
x Project management only, with the Client Agency handling bidding and
contracting.
.
x Full project implementation, which includes detailed design, procurement, and
construction management, with the Client Agency providing the funds.
(2) Type B involves the DPWH as the Client Agency for other Servicing Agencies. The
Servicing Agencies may, for example, be LGUs (e.g., local projects), the Local Water
Utilities Administration or LWUA (e.g., Level II water supply), and other specialized
entities. As the Client Agency, the DPWH shall provide the funds for the contract.
c. Conditions
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 of the government is more efficient and economical for the government,
subject to the following conditions:
(1) Conduct of a Cost-Benefit Analysis by the Procuring Agency indicating that entering
into an Agency-to-Agency Agreement with the Servicing Agency is more efficient
and economical to the government.
(2) The Servicing Agency has the mandate or by the nature of the function of its office is
capable to undertake the consultancy required by the Procuring Agency.
(3) The Servicing Agency must have a track record of having completed or supervised an
infrastructure project, by administration or by contract, similar to and with a cost of at
least fifty percent (50%) of the project at hand.
(4) The Servicing Agency has the absorptive capacity to undertake the project by
administration, i.e., by itself.
(5) The Servicing Agency owns or has access to the necessary manpower, tools and
equipment required for the project.
(6) Sub-contracting is not allowed. The Servicing Agency may, however, implement the
project in-house, by job order or through the pakyaw system.
d. Procedure
(1) The IU shall undertake a Cost–Benefit Analysis, taking into consideration the
following factors: prevailing standard cost for the project in the market, absorptive
capacity of the Servicing Agency, and other relevant factors.
(2) The IU shall likewise secure a certificate from the relevant officer of the Servicing
Agency that the latter complies with all the conditions prescribed under items a and c
of this Section 6.2.8.
(3) Based on the assessment and recommendation of the IU, the BAC shall issue a
resolution recommending the use of Agency-to-Agency Agreement to the HoPE.
(4) Upon approval of the BAC Resolution, the Procuring Entity shall enter into a
Memorandum of Agreement (MOA) with the Servicing Agency.
The Procuring Entity may adopt small-value procurement for an infrastructure contract
whose ABC does not exceed PhP500,000.
For infrastructure projects to be implemented by phases, the Procuring Entity shall ensure
that there is a clear delineation of work for each phase, which must be usable, and
structurally sound.
b. Procedure
(1) The end-user shall submit a request to the BAC indicating therein the urgency of the
requirement and the unforeseen contingency that caused its necessity.
(2) The BAC shall prepare the Request for Quotation (RFQ), indicating the
specifications, quantity, Approved Budget for the Contract (ABC), and other terms
and conditions of the item to be procured.
(3) Except for those with ABCs equal to Fifty Thousand Pesos (PhP 50,000.00) and
below, RFQs shall be posted for a period of three (3) calendar days 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 entity.
(4) The BAC shall send the RFQs to at least three (3) contractors of known qualifications,
drawn from the DPWH CWR and found to meet the Eligibility Requirements (ER)
for the subject contract, asking them to submit sealed bids consisting of the Technical
and Financial Proposals as defined in Section 2.7 of this Manual Volume II. The
Procuring Entity shall require the bidders to submit their bids within seven (7)
calendar days from the date of advertisement.
(7) At the same time, except for procurement with an ABC if PhP50,000 and below, the
BAC shall post for a period of 3 calendar days the RFQ in the websites of the DPWH
and the PhilGEPS and in a conspicuous place in the Procuring Entity’s premises to
invite other interested contractors registered in the DPWH CWR and found to meet
the Eligibility Requirements (ER) to submit their sealed Technical and Financial
Proposals within the same 7-day period.
(8) After the deadline for submission of price quotations, the BAC shall receive and open
the sealed bids at the designated date and time, then evaluate the bids(Technical and
Financial Proposals), including validation, and determine the LCRB. Receipt of at
least one (1) quotation is sufficient to proceed with the evaluation thereof. 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
submitted.
(7) Award of contract shall be made to the lowest quotation which complies with the
specifications and other terms and conditions stated in the RFQ.
(8) For Small Value Procurement, a Performance Security shall be required from the
winning contractor. The Procuring Entity may require a Warranty Security depending
on the nature of the procurement project.
(9) Contractors are mandated to register with the PhilGEPS and provide a PhilGEPS
Registration number as a condition for award of the contract.
a. The material, equipment, or technology proposed by the contractor for the project can be
obtained only from a proprietary source, i.e., it is covered by a patent, trade secret, or
copyright, approved by an authorized government regulatory body, which legally
prohibits others from manufacturing and supplying the same material, equipment, or
technology.
c. The contractor must comply with the Minimum Performance Standards and
Specifications for the project set by the Procuring Entity.
d. The contractor shall meet the applicable provisions for eligibility requirements, bid
submission, and bid evaluation for a design-build contract under Sections 9, 10, and 11 of
Annex “G” of the IRR as stated in Section 4.1 of this Manual Volume II.
e. The Procuring Entity must have undertaken a cost-benefit analysis on a life-cycle basis
which clearly shows that the supply and construction or installation of the subject
material, equipment, or technology under a proprietary right is more economically
feasible than any alternative mode that will meet the purpose of the project.
SECTION 7
As mentioned in Section 10.4.4 of Volume I of the DPWH Procurement Manual, the DPWH,
through the Procurement Service, shall pay special attention to monitoring the actual
performance of each Procuring Entity in the procurement of infrastructure contracts using
selected indicators derived from the larger set of Agency Procurement Compliance and
Performance Indicator (APCPI) system. This to show the level of efficiency and effectiveness of
the procurement for infrastructure works done by the Procuring Entity. These selected
infrastructure related indicators are as follows:
As mentioned in Section 3.2 of this Manual Volume II, each Procuring Entity is required
to set its procurement targets in terms of the total number and sizes of infrastructure
contracts that it intends to procure during the year, and shall reflect these in its APP. The
Procuring Entity must package contracts into sizes that are sufficiently attractive and
viable to, and within the capability of, relevant contractors, and that will provide a
significant impact on the users. The sizes and number of such contracts must be within
the capacity of the Procuring Entity to efficiently procure, manage, monitor and supervise
the contracts within the year.
The efficiency of the Procuring Entity in preparing doable procurement plans and in
managing procurement implementation is measured by the percentage of the number of
projects in the APP which have actually been successfully procured during the year. To
be considered satisfactory in this indicator, the Procuring Entity must have actually
procured at least 85% of the total number of projects in the APP.
This indicates the effectiveness of competition and the level of confidence of the private
sector in the bidding process. Competition induces efficiency and drives down bid prices.
This indicator is measured by the actual time spent in undertaking the entire bidding
process from advertisement of the Invitation to Bid to award of the contract. This should
not exceed the maximum allowable times of 95 days for contracts not exceeding PhP 50
million, and 110 days for contracts above PhP 50 million. To be considered satisfactory,
the Procuring Entity must be within these periods for at least 75% of the number of
contracts procured during the year.
This indicates the extent to which the ABC is adequately prepared and is realistic. It also
reflects the extent of real competition among the participating bidders.
While awards for foreign-assisted projects (FAPs) may, in accordance with the provisions
of the approved loan agreements, be made above the ABC which is usually considered an
indicative amount, it is desirable that the Procuring Entity ensure that the ABC is
prepared adequately according to the standards in Section 2.3.4 of this Manual Volume II
and to encourage competition among bidders. The performance indicator in this regard is
the extent to which prices of awarded contracts are below the ABC.
This indicator is measured by the percentage of the number of awarded FAP contracts
which are below the ABC. To be considered satisfactory, at least 75% of all FAP
biddings must result in lowest bids lower than the ABC.
The selected indicators of performance by each Procuring Entity for the procurement of
infrastructure contracts are summarized in Columns (1) to (4) of Table 26 (also Form DPWH-
INFR-54).
At the end of each year, the Procurement Service shall evaluate the actual performance of the
Procuring Entity in the procurement of infrastructure contracts, using Table 26, particularly
Columns (5) to (8).
As mentioned in Section 10 of Volume 1, the Procuring Entity shall use the monitoring data
submitted by the Procuring Entity in Forms DPWH-Vol I-08 and DPWH-Vol I-10 in
evaluating the performance of that Entity.
SECTION 8
CASE STUDY
A total of 18 bidders submitted bids before the deadline specified in the Instructions to Bidders.
After the bids were opened, the BAC conducted an Eligibility Check/Screening which resulted in
only 11 out of the 18 bidders declared eligible.
All Technical Proposals of the 11 eligible bidders were rated “passed” during the preliminary
examination of bids. The Financial Proposals of the 11 bidders with passing Technical Proposals
likewise passed the preliminary examination.
After all 11 Financial Proposals had been opened and preliminarily examined, Contractor A,
which submitted a bid of PhP 96.2 million, turned out to have the lowest bid as read. The second
lowest bid was PhP 98.6 million, submitted by Contractor B.
During the detailed evaluation of bids, the bid of Contractor A was corrected for arithmetical
errors, resulting in a calculated bid of PhP100.3 million. Contractor B’s bid as evaluated
remained at P98.6 million and would be the Lowest Calculated Bid (LCB).
During the Post-Qualification, the BAC learned that Contractor A has an on-going project with
outstanding works of PhP23.7 million. This was not considered in Contractor A’s submitted
calculation of its NFCC, a requirement for eligibility. If this were considered, the corrected
NFCC would go down to PhP73.9 million, or below the ABC. In all other aspects, the bid of
Contractor A seemed to be responsive, especially since it has all the required key personnel and
major equipment needed for the contract, and has done all its previous contracts satisfactorily
with no negative slippage.
In comparison, the bidder with the LCB, Contractor B, has completed all its previous projects
satisfactorily, with one delayed on-going contract with a slippage of 6%. Moreover, its legal,
technical and financial requirements passed the Post-Qualification. During the post-qualification,
the BAC received a report that Contractor B’s owner is the first cousin of the BAC Chairman.
Analysis:
The BAC should consider the award to Contractor B, not to Contractor A, for the following
reasons:
a. Based on the post-qualification, Contractor A is not eligible in the first place. This is
because Contractor A’s corrected NFCC based on the post-qualification is only PhP73.9
million which is less than the ABC, which is the minimum NFCC required for eligibility.
b. Contractor A’s calculated bid of PhP 110.3 million is higher than Contractor B’s
calculated bid of PhP 98.6 million.
c. Contractor B has the LCB of PhP 98.6 million (lower than Contractor A’s calculated bid)
and passed the post-qualification and, thus, should be declared the bidder with the Lowest
Calculated and Responsive Bid (LCRB).
In fact, Contractor A should be penalized in accordance with IRR Section 65.3 for submitting
false information, i.e., for failing to report its on-going project. This section penalizes the act of
submitting eligibility requirements of whatever kind and nature that contain false information or
falsified documents calculated to influence the outcome of the eligibility screening process or
conceal such information in the eligibility requirements when the information will lead to a
declaration of ineligibility from participating in public bidding. If proven to be guilty of the
above, the bidder may be penalized with imprisonment of not less than six years and one day, but
not more than 15 years.
The BAC should post-disqualify Contractor A despite: (a) its apparent capability to undertake
the contract as is shown by its other submitted requirements such as lists of key personnel and
major equipment and its good track record; and (b) its bid being the lowest as submitted and
read.
The BAC would have to award the contract to the bidder which submitted the second lowest bid
as submitted and read, but which subsequently turned out to be the LCB - i.e., Contractor B.
While this contractor has a slippage of 6% in an on-going contract, this is below the maximum
15% slippage for disqualification. While the owner of Contractor B is a first cousin of the BAC
Chairman, this is not contrary to IRR Section 47 which prohibits the participation of bidders
related to the members of the BAC within the third civil degree. A first cousin falls within the
fourth civil degree.
SECTION 9
Section 9 (last section) of the Main Guidelines of Procurement Manual Volume II is reserved for
future revisions or changes in procedures, forms, policies or new circulars, amendments to the
IRR of RA 9184, GPPB resolutions, DPWH Department Orders and other issuance after the
approval and release of this original Procurement Manual Volume II. The corresponding
revisions shall be made in this Section to guide the users accordingly. The Procurement Service
shall be responsible for updating the contents of the Procurement Manual Volume II, whenever
new issuances or resolutions are issued by the relevant government agencies. It shall maintain a
database of these issuances and guidelines in the DPWH website. Users are advised to refer to
this Section 9 from time to time and as needed.
Section xxx: (Indicate the appropriate section of the Manual where the revision is to be
made).
Sub-Section, Paragraph Number: (Indicate the appropriate sub-section and paragraph where
the revision is to be made).
Page Number: (Indicate the appropriate page where the revision is to be made).
Use the following format to show revisions: Where possible, use italicized font to show the
change/revision.