IRR 12009 2025

and Purpose

This Implementing Rules and Regulations, hereinafter called the IRR, is issued pursuant to Section 112 of Republic Act (RA) No. 12009, otherwise known as the New Government Procurement Act, for the purpose of prescribing the necessary rules and regulations for the procurement activities of the Government of the Philippines (GoP), in accordance with the state policies and principles declared under the Act.

This IRR is formulated to assist Procuring Entities in the conduct of procurement planning up to contract implementation to facilitate government procurement and delivery of public service.

The provisions of this IRR are in line with the commitment of the GoP to promote the ideals of good governance with a view towards transparency, competitiveness, efficiency, proportionality, accountability, public monitoring, procurement professionalization, and sustainability in government procurement.

The State aims to achieve value for money in government procurement to ensure that public funds are utilized effectively and responsibly.

In case of doubt in the application, interpretation, and construction of any of the provisions under RA No. 12009 and this IRR, the same shall be resolved in favor of government procurement.

Governing Principles on Government Procurement

Procurements by all branches and instrumentalities of the national government, its departments, bureaus, offices, and agencies, including state universities and colleges (SUCs), government-owned or controlled corporations (GOCCs), government financial institutions (GFIs), and local government units (LGUs), shall, in all cases, be governed by these principles:

a. Transparency in the procurement process by providing access to all related information consistent with open contracting practices and standards that enable disclosure of data and facilitates information sharing related to all pertinent stages of procurement, as the case may be, to foster public trust by ensuring that all stakeholders have access to procurement information; b. Competitiveness by ensuring equal opportunity for all eligible and qualified suppliers, manufacturers, distributors, contractors, consultants, and service providers, whether public or private; c. Efficiency by implementing an organized, uniform, and straightforward procurement process through the use of emerging technologies and innovative solutions to attract a broader range of bidders and improve quality and cost-effectiveness in government procurement; d. Proportionality by ensuring that the conditions and parameters in the development of requirements, choice of procurement mode, and implementation of contracts shall be reasonably proportional to the needs and circumstances of the Procuring Entity, and the nature, scale and complexity of the project to be procured to ensure fair competition; e. Accountability where public officials and personnel take responsibility for their actions, decisions, and performance in the use of public resources and adhere to ethical standards. When warranted by circumstances, public officials and personnel directly or indirectly involved in the procurement process and in the implementation of contracts are investigated and held accountable for their actions, in accordance with applicable laws, rules, and regulations; f. Participatory procurement through public monitoring of the procurement process and the implementation of contracts to guarantee that every step is in accordance with the provisions of the Act and this IRR, and to ensure prudent and judicious use of government resources; g. Sustainability in the procurement process which covers the whole life cycle of a property, ensures value for money and maximum benefits to society and the economy, and engenders minimal impact to the environment; and h. Professionalism in procurement through the development of qualification standards and a competency and certification framework for procurement practitioners, and the adoption of a code of ethics that shall be observed by public procurement professionals.

4.1 This IRR shall apply to all procurement by any branch, agency, department, bureau, office, or instrumentality of the GoP, including GOCCs, GFIs, SUCs, and LGUs. 4.2 Any treaty or international or executive agreement affecting the subject matter of the Act and this IRR to which the Philippine government is a signatory shall be observed. 4.2.1 In case of conflict between the terms of the treaty or international or executive agreement and this IRR, the former shall prevail. 4.2.2 In case the treaty or international or executive agreement does not expressly provide for a different procurement rule on foreign-funded procurement of Goods, Infrastructure Projects, and Consulting Services by the GoP, the Act and this IRR shall apply. The GoP negotiating panel shall, as its default position, espouse adherence to the Act and this IRR, in all foreign-funded procurement. If the treaty or international or executive agreement states otherwise, then the negotiating panel shall ensure that the reasons for the adoption of a different rule or mode of procurement are clearly reflected in the records of discussion. 4.3 The Act and this IRR shall not apply to the following activities:

Provided, however, That for the portions financed by the GoP, the provisions of the Act and this IRR shall apply. 4.4 The following are not procurement activities under the Act and this IRR:

For purposes of this IRR, the following terms or words and phrases shall mean or be understood as follows:

In case the Implementing Unit is different from the End-User Unit, the authority, functions, roles and responsibilities of both units shall be defined by the Procuring Entity;

Provided, however, That in a department, bureau, office, or agency where the procurement is decentralized, the head of each decentralized unit shall be considered as the HoPE, subject to the limitations and authority delegated by the head of the department, bureau, office, or agency;

Standardization of Procurement Process and Forms

6.1 To systematize the procurement process, avoid confusion, and ensure transparency, the procurement process, including the forms to be used, shall be standardized insofar as practicable; 6.2 For this purpose, the GPPB shall pursue the development of generic procurement manuals and standard bidding forms, the use of which, once issued shall be mandatory upon all Procuring Entities. However, whenever necessary, to suit the particular needs of the Procuring Entity, modifications may be made specifically for major and specialized procurement, subject to the approval of the GPPB. 6.3 To capture the prescribed policies and procedures in this IRR, the decision tree to guide Procuring Entities on which mode of procurement is the most fit for their desired purpose shall be subsequently issued by the GPPB. RULE II STRATEGIC PROCUREMENT PLANNING

7.1 All procurement shall be undertaken with proper and sufficient planning and preparation to ensure sound procurement decisions, taking into consideration, among others, the need of the Procuring Entity, relevance, and appropriateness of the project, value for money, and associated risks of the project. This includes the conduct of supply positioning, analysis of available modes of procurement, risk management, and disposal procedures as may be applicable. 7.2 Procuring Entities shall likewise implement a procurement strategy that includes Fit-for-Purpose and Proportional approaches, such that the conditions and parameters in the development of requirements, choice of procurement mode, and implementation of contracts shall be reasonably proportional to the needs of the Procuring Entity and the nature of the project to be procured. Such strategy adopted shall also consider the whole life cycle of a procurement project, including its environmental impact, and shall aim to achieve value for money. 7.3 During the planning stage, the Procuring Entity shall take into account the following strategic considerations, among others, as may be applicable:

Provided, That the procurement of second-hand, refurbished, or reconditioned goods, such as military, defense, or law enforcement equipment or materiel, may be considered to secure a contract that is most advantageous and offers value for money to the government, subject to the guidelines to be issued by the DBM and subject to compliance with relevant criteria, such as durability, remaining useful life, sustainability, maintenance cost, and warranty. 7.7 All procurement should be within the approved budget of the Procuring Entity. Consistent with the government fiscal discipline measures, only those considered crucial to the efficient discharge of the functions of the agency shall be included in the Annual Procurement Plan (APP) for purposes of planning and budgeting. 7.7.1 In the preparation of the Indicative APP to support the agency budget proposal, the End-User or Implementing Units of the Procuring Entity shall formulate their respective Project Procurement Management Plans (PPMPs) covering their programs, activities, and projects (PAPs). The PPMP shall include the information on:

8.1 With the exception of an Infrastructure Project under a design-and-build scheme, no bidding and award of contract for Infrastructure Projects shall be made unless the detailed engineering investigations, surveys, and designs for the project which shall consider among others, the impact on the environment, have been sufficiently carried out and duly approved in accordance with the standards and specifications prescribed by the HoPE concerned or the duly authorized representative, pursuant to the recommendation of the End-User or Implementing Unit, and the acquisition of the required right-of-way for the project pursuant to RA No. 10752 has been accomplished. 8.1.1 In case of projects with pending acquisition of right-of-way, site, or location, 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. 8.2 Detailed engineering shall proceed only on the basis of the feasibility or preliminary engineering study made which establishes the technical viability of the project and conformance to land use and zoning guidelines prescribed by existing laws. The findings contained in the feasibility study, if undertaken for the project, shall be examined. If, in the course of this exercise, it is found that amendments would be desirable in the design standards of principal features, as proposed, specific recommendations for such changes shall be supported by detailed justifications, including their effects on the cost, and the economic justification, if necessary. 8.2.1 A schedule of detailed engineering activities shall include the following:

9.1 The issuance of a MYCA or similar documents shall be required before Procuring Entities commence any procurement activity covering locally- funded multi-year contracts, subject to the guidelines issued by the DBM. The MYCA is issued by the DBM for multi-year locally-funded projects in order to authorize the Procuring Entity to enter into multi-year contracts. The total project cost reflected in the MYCA or its equivalent document shall be the basis or reference for the ABC of the procurement contract. 9.1.1 NGAs including SUCs, GOCCs, and GFIs shall secure a MYCA from the DBM prior to the commencement of any procurement activity for multi-year projects which are fully funded under the GAA. 9.1.2 SUCs, GOCCs and GFIs implementing multi-year projects which are partially funded from both their internally generated income and the GAA shall secure prior authority from their respective governing boards and MYCA from the DBM, in such amounts proportionate to the funding provision from each source, before commencing procurement activities. 9.1.3 SUCs, GOCCs and GFIs implementing multi-year projects which are fully funded by their internally generated income shall secure prior authority from their respective governing boards before commencing procurement activities. 9.1.4 LGUs shall secure any equivalent document issued by their respective Sanggunian authorizing them to enter into multi-year contracts, as may be applicable.

10.1 To ensure proper and strategic procurement planning, the Procuring Entity, through the End-User or Implementing Unit, shall conduct market scoping as a preliminary undertaking in preparing its PPMP, which covers the proper cost estimation, project design and specifications, technical and selection criteria, delivery lead time, storage or warehousing requirements, related industry practices, and other relevant market information. 10.2 Market scoping may include the following activities:

11.1 Giving due consideration to the technical and quality characteristics, including sustainability, specifications to be developed by the End-User or Implementing Unit for the procurement of Goods, as well as the goods component of Infrastructure Projects and Consulting Services, shall be based on any or a combination of (i) performance or functionality requirements;

12.1 For Goods to be delivered, Infrastructure Projects to be implemented, and Consulting Services to be rendered in the following fiscal year, Procuring Entities are authorized to undertake EPA, short of award, as soon as the NEP, Local Expenditure Program, or proposed Corporate Operating Budget is submitted to the Congress, Sanggunian, or Governing Board, respectively, pending the approval of the funding thereof under the GAA, corporate operating budget, appropriation ordinance or loan agreements in the case of Foreign-Assisted Projects (FAPs), as the case may be, subject to guidelines issued for the purpose. 12.2 The conduct of EPA shall be made only upon approval of the Indicative APP by the HoPE, and subject to the guidelines issued by the GPPB. 12.3 For EPA, the ABC shall not exceed the amount specified in the approved Indicative APP prepared in accordance with Section 7 of this IRR. 12.4 No award of contract shall be made until the approval and effectivity of the appropriate funding, under the GAA, corporate operating budget, appropriation ordinance, or loan agreement, as the case may be. The HoPE shall also approve the final APP before the award of the contract is made. 12.5 In case of projects requiring acquisition of right-of-way, no award of contract shall likewise 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.

13.1 To further support strategic procurement management and ensure smart and prudent use of government resources, Procuring Entities shall apply Life cycle Assessment (LCA) and Life cycle Cost Analysis (LCCA), as may be applicable, in project planning, eligibility and selection criteria, or contract implementation; Provided, That the implementation of the LCCA and LCA shall be subject to the guidelines issued by the GPPB. 13.2 Procuring Entities shall apply LCA to evaluate the potential environmental and social impacts of Goods, including the goods component of Infrastructure Projects, or Consulting Services throughout their entire life cycle, from raw material extraction and manufacturing to transportation, usage, and disposal. Procuring Entities shall use LCA to:

Design-and-Build Scheme for Infrastructure Projects

14.1 In preparing for a procurement project, Procuring Entities may consider employing the design-and-build scheme as a procurement approach whereby a single contractor is responsible for both design and construction of the government building or Infrastructure, which allows quality assurance, effective cost and schedule management, and improved energy efficiency and environmental impact.

The Procuring Entity shall provide a mechanism to assess the suitability of the design-and-build scheme; ensure the proper preparation of the conceptual design, performance specifications and parameters; conduct review of detailed architectural and engineering design; and undertake oversight and monitoring of project planning and contract implementation.

15.1 As part of strategic procurement planning, the HoPE may authorize the engagement of a government Procurement Agent, which shall undertake the functions of the BAC, if the Procuring Entity does not have the capability or proficiency to undertake a particular procurement; Provided, That the Procuring Entity cannot delegate the issuance of the Notice of Award and the award of contract to the Procurement Agent; and there shall be no transfer of funds to the Procurement Agent, except for the payment of service fee for services rendered as Procurement Agent, if applicable. 15.2 The engagement of a Procurement Agent shall be further subject to the following mandatory conditions:

Provided, That in instances where the Procuring Entity lacks sufficient qualified personnel to constitute its own BAC, the Procuring Entity may engage a Procurement Agent to undertake other modes of procurement;

16.1 Procuring Entities may use a Framework Agreement as a procurement strategy to expand the pool of prospective bidders, take advantage of economies of scale, minimize the administrative burden of conducting separate procurement activities, and generate time and money savings.

16.2 The Framework Agreement shall be in the nature of an option contract between the Procuring Entity and the bidder that stipulates the terms and conditions to be applied in subsequent contracts for the procurement of Goods, Infrastructure Projects, and Consulting Services with a single or multiple contractor, manufacturer, supplier, distributor, consultant, and service provider, subject to the guidelines to be issued by the GPPB

17.1 Procuring Entities shall consider the advantages of a Pooled Procurement mechanism as a procurement strategy to assess their procurement needs and identify opportunities to achieve greater value for money and procurement efficiency through demand aggregation. It also aims to improve quality standards by combining technical capacity and increases the availability and sustainability of supplies. Pooled Procurement is undertaken through the collaboration of Procuring Entities to consolidate their requirements into a single, joint, bulk, or group procurement. 17.2 Procedure for Pooled Procurement may include the following: 17.2.1 Procuring Entity may invite, in writing, or through posting on its official website, social media platform, or other channels authorized by the GPPB, other Procuring Entities to pool their procurements of Non-CSE, Infrastructure Projects, or Consulting Services. Interested Procuring Entities shall signify their intention to join the Pooled Procurement within the period specified in the invitation. 17.2.2 The Collaborating Procuring Entities (CPE) shall designate the Lead Procuring Entity (LPE) that has the capacity to conduct the entire procurement process, from planning to post-qualification, including the consolidation of the procurement requirements for the Pooled Procurement project. 17.2.3 The LPE and CPEs shall enter into a MOA which shall include, but not limited to, the following details:

18.1 The Procuring Entity may consider undertaking renewal of regular and recurring services to facilitate the continuity and immediate implementation of procurement projects. The duration for each renewed contract shall not exceed one (1) year. However, the renewed contract may exceed one (1) year for the following procurement projects and such other projects as may be identified by the GPPB: 18.1.1 Rental of office space; and 18.1.2 Telecommunication requirements. 18.2 The renewal of contracts for Regular and Recurring Services shall comply with the following: 18.2.1 For this purpose, regular and recurring services refer to the following:

19.1 For efficient planning for the storage and tracking of procured Goods, Procuring Entities may adopt a general system of warehousing and cloud-based inventory of procured Goods, as may be necessary depending on the type, nature, and volume of procurement undertaken by the Procuring Entity and subject to the availability of funds in accordance with applicable budgeting, accounting, and auditing rules and regulations. 19.2 The Procuring Entity, whenever applicable, shall develop guidelines for its warehousing functions ensuring auditable systems that promote integrity and efficiency, and shall establish a compliance framework mandating training, audits, and transparent reporting. These guidelines shall set standards and provisions to protect and safeguard all acquired properties whether through procurement, transfer, or any other mode of acquisition being stored in the warehouse facilities in order to: 19.2.1 Ensure proper tracking, storage, and management of procured Goods; 19.2.2 Verify the accuracy and integrity of inventory records; and 19.2.3 Promote transparent reporting on warehousing and inventory activities. 19.3 The adoption of cloud-based inventory by NGAs, GOCCs, GFIs, SUCs, and LGUs shall be done in consultation with the Department of Information and Communications Technology (DICT) to ensure that the risks and vulnerabilities associated with data storage are adequately addressed through proper and effective security protocols. RULE III PROCUREMENT BY ELECTRONIC MEANS

20.1 The Philippine Government Electronic Procurement System 20.1.1 To promote greater transparency, accountability, operational efficiency, and value for money, the PhilGEPS shall be the single electronic procurement portal that shall serve as the primary source of information and channel in the conduct of all procurement activities of the government. The PhilGEPS shall maintain an integrated system that covers procurement planning until payment. The PhilGEPS shall be managed by the PS-DBM. 20.1.2 To take advantage of the significant built-in efficiencies of the PhilGEPS and the volume discounts inherent in bulk purchasing, through the centralized procurement undertaken by the PS-DBM, all Procuring Entities shall utilize the PhilGEPS for the procurement of CSE. 20.1.3 The PhilGEPS shall continuously adopt emerging technologies and innovative solutions. 20.2 Features of the PhilGEPS To standardize and ease the process of government procurement and to take advantage of the significant built-in efficiencies of the PhilGEPS, the system shall include the following features: 20.2.1 Electronic Bulletin Board a) The Electronic Bulletin Board allows Procuring Entities to post procurement opportunities, notices, bidding results, awards, and related information.

Provided, That the manufacturer, supplier, distributor, contractor, consultant, or service provider concerned maintains its registration records current and updated at least once a year, or more frequently as may be necessary. > > c) The PhilGEPS shall deny registration to or exclude from the registry any party that is found to have willfully misrepresented any of the information provided in the application for registration or that has been imposed with the penalty of blacklisting in accordance with Sections 100 and 101 of this IRR, including foreign government, foreign or international financing institution whose blacklisting rules have been recognized by the GPPB. > > d) A manufacturer, supplier, distributor, contractor, consultant, or service provider applying for registration shall be required to provide an email address to which all communications from the BAC and the Procuring Entity shall be sent. The email address provided shall be considered as such applicants recorded contact information. > > e) A manufacturer, supplier, distributor, contractor, consultant, or service provider duly registered with the PhilGEPS may participate in a procurement activity undertaken by any Procuring Entity;

Provided, That it is the obligation of the said manufacturer, supplier, distributor, contractor, consultant, or service provider to maintain its registration valid and updated in accordance with the provisions of this IRR, and its registration type is appropriate and relevant to the particular type of procurement. 20.2.9.1 All manufacturers, suppliers, distributors, contractors, consultants, and service providers shall upload and maintain in PhilGEPS a valid and updated file of the following eligibility documents:

Otherwise, it must be accompanied by a translation of the documents in English issued by the relevant foreign government agency, the foreign government agency authorized to translate documents, or a registered translator in the foreign bidders country; and shall be authenticated by the appropriate Philippine foreign service establishment or post, or the equivalent office having jurisdiction over the foreign bidders affairs in the Philippines. However, for Contracting Parties to the Apostille Convention, the documents shall be authenticated through an apostille by the Competent Authority, except for countries identified by the Department of Foreign Affairs (DFA) that will still require legalization (red ribbon) by the relevant Embassy or Consulate. A Competent Authority refers to the authority designated by a Contracting Party that can issue an apostille. A Contracting Party may designate one or more Competent Authorities and may designate Competent Authorities that can issue an apostille for certain categories of public documents. Information about designated Competent Authorities may be found on the Apostille Section of the Hague Conference website under Competent Authorities. These documents shall be accompanied by a Sworn Declaration of Compliance stating that the documents submitted are complete and authentic copies of the original, and all statements and information provided therein are true and correct. The PhilGEPS shall process the same in accordance with the guidelines of the GoP Official Merchants Registry (OMR) and shall issue a Certificate of Registration (Platinum Membership) within seven (7) calendar days from receipt of the application and complete supporting documents. The said Certificate shall include the following declarations by the bidder:

Provided, That such observers do not have any direct or indirect interest in the procurement project as prescribed in Section 43 of this IRR.

The electronic and uniform payment system to be used by the Procuring Entities and suppliers, manufacturers, distributors, contractors, consultants, and service providers shall be defined in the context of the Integrated Financial Management Information System to be developed by the DBM, COA, and Department of Finance.

22.1 The PhilGEPS shall ensure the security, integrity, and confidentiality of documents submitted, stored, and managed through the system. It shall include features that provide for an audit trail of electronic transactions and allow the COA to verify the security and integrity of the system at any time. 22.2 The PhilGEPS shall incorporate the following features, which shall be periodically upgraded to keep abreast with developments in technology: 22.2.1 The PhilGEPS shall include a feature that provides for an audit trail for online transactions and allows the COA to verify the security and integrity of the system at any time. 22.2.2 The performance of manufacturers, suppliers, distributors, contractors and consultants shall be tracked to monitor compliance with delivery schedules and other performance indicators. Similarly, the performance of Procuring Entities shall be tracked to monitor the settlement of their obligations to manufacturers, suppliers, distributors, contractors and consultants.

Interconnectivity Systems between Government Agencies

Notwithstanding the provisions of RA No. 10173, entitled Data Privacy Act of 2012, the GPPB is hereby authorized to promulgate rules to ensure the interconnectivity of the following government databases:

Provided, That the GPPB shall coordinate with the DICT, PS-DBM, DTI, CIAP, LGUs, BIR, SEC, CDA, IC, and other relevant government agencies to ensure the seamless implementation of this Section; through cross- platform interoperability using standardized protocols. These protocols shall enable a secure and efficient, and real-time data sharing across systems, ensuring compatibility and integration of government databases and platforms.

Provided, further, That at all times, the sharing of information between and among government agencies and instrumentalities shall protect trade secrets and promote competition.

The GPPB, through its Technical Support Office (TSO), shall analyze the data obtained from the PhilGEPS and submitted procurement reports to ensure disclosure of information related to the procurement process. The GPPB shall publish an annual report on its website for the following purposes:

24.1 A quarterly report, including the following data from the PhilGEPS, shall be submitted to the GPPB through its TSO:

RULE IV MODESOF PROCUREMENT

26.1 The Procuring Entity shall adopt any of the following modes of procurement consistent with the Fit-for-Purpose procurement approach:

Provided, That such modifications are consistent with the provisions of Section 3 of this IRR. 26.4 Except for Competitive Bidding, Limited Source Bidding, Competitive Dialogue, and Unsolicited Offer with Bid Matching, the BAC may delegate the conduct of procurement activities for the other modes of procurement to the End-User or Implementing Unit, or the Procurement Unit of the Procuring Entity.

27.1 Competitive Bidding is a mode of procurement which is open to participation by any eligible bidder, and which consists of the following processes:

Notwithstanding the applicability of the other modes of procurement defined herein, the Procuring Entity may adopt Competitive Bidding in its procurement activity. Competitive Bidding shall be subject to the provisions of Rules VI to XI of this IRR.

28.1 Limited Source Bidding is a mode of procurement that involves direct invitation to bid by the Procuring Entity to a set of pre-selected suppliers, contractors, or consultants with known experience and proven capability relative to the requirements of a particular contract. 28.2 Limited Source Bidding may only be resorted to under any of the following conditions:

Provided, That the Procuring Entity establishes, attests to such fact, and confirms that it has the expertise on the subject matter of procurement by virtue of its mandate and nature of its functions and operations. 28.4 The pre-selection shall be based on the following characteristics of the suppliers, contractors, or consultants:

Competitive Dialogue

29.1 Competitive Dialogue is a mode of procurement that employs a two-stage bidding process where the Procuring Entity invites suppliers, manufacturers, distributors, contractors, consultants, and service providers to a dialogue to propose solutions to address its needs and requirements. 29.2 Competitive Dialogue may be resorted to if any of the following conditions are present:

30.1 Unsolicited Offer with Bid Matching is a mode of procurement wherein the Procuring Entity may consider unsolicited offers from the original offeror on a negotiated basis for Goods and Consulting Services. The "Original Offeror" refers to the entity that initially submitted an unsolicited offer and whose proposal has been determined by the Procuring Entity as necessary and involves a new concept or technology, subject to the procedure outlined in this IRR.

If the need is determined, the Procuring Entity shall notify the offeror within the same twenty (20) day period that it shall conduct the evaluation of the offer upon the submission of complete documentary requirements pursuant to Section 30.2 within thirty (30) calendar days from notice. Resubmission due to lacking requirements shall be considered as a new submission, subject to the first in time, stronger in right approach, as provided in the succeeding sub-section. The offer shall be deemed rejected if the Procuring Entity did not act on the offer within the twenty (20)-day period, or if the offeror failed to submit complete documentary requirements within the thirty-day period as prescribed in the preceding paragraph. The offeror may still withdraw its unsolicited offer within five (5) calendar days from receipt of the notice from the Procuring Entity.

If the offer is withdrawn after such period, the offeror shall not be allowed to participate in any procurement opportunity of the Procuring Entity for a period of one (1) year on the first offense, two (2) years on the second offense, and perpetually on the third offense. 30.4 In case the Procuring Entity receives more than one unsolicited offer with complete documentary requirements involving the same or similar new concept or technology, the first in time, stronger in right approach shall be applied in determining the original offeror. All other offers shall be rejected without prejudice to the participation by the other offerors in the competitive bidding under this mode. 30.5 The Procuring Entity, through the End-User or Implementing Unit, shall conduct an evaluation of the submitted requirements to determine if the project being offered involves a new concept or technology in accordance with Section 30.1(a). The Procuring Entity shall complete the entire evaluation process within sixty (60) calendar days, unless extended by the HoPE for justifiable reasons not exceeding thirty (30) calendar days. During the evaluation process, the Procuring Entity shall likewise verify, validate, and ascertain the legal, technical, and financial eligibility of the offeror; and determine if funds are available to meet the offer, subject to budgeting, accounting, and auditing laws, rules, and regulations. The Procuring Entity shall notify the offeror of the results of the evaluation.

In case of favorable evaluation results, the Procuring Entity shall inform the offeror in the same notice that negotiation shall commence at a specified date within five (5) calendar days from receipt of notice. 30.6 The Procuring Entity shall negotiate with the offeror on the project scope, price, implementation arrangements, and the terms and conditions of the ensuing contract, among others, and discuss budget availability and related issues, if any. The Procuring Entity shall complete the negotiation with the offeror within fifteen (15) calendar days from the commencement thereof.

If the negotiation is unsuccessful, the Procuring Entity shall declare a failure of negotiation, resulting in the termination of the procurement activity.

If the negotiation is successful, the Procuring Entity shall issue a certification conferring original offeror status to the offeror. Such status confirms the offerors responsiveness to the legal, technical, and financial requirements of the proposed project. The offeror shall submit the appropriate bid security pursuant to Section 56 of this IRR within ten (10) calendar days from receipt of the certification conferring original offeror status. After appropriate funds are secured for the purpose, the Procuring Entity shall ensure that the particular Goods or Consulting Services are included in the APP. 30.7 Within thirty (30) calendar days from the conferment of the original offeror status, the Procuring Entity shall publish an Invitation to Bid for comparative or competitive bids against the negotiated original offer. The comparative or competitive bids shall be composed of the technical proposal that complies with the technical specifications or terms of reference of the negotiated original offer, and the financial proposal. The comparative or competitive bid that complies with the technical component of the negotiated original offer and with the lowest price proposal shall be declared as the Lowest Comparative or Competitive Bid (LCCB), subject to post-qualification pursuant to Section 63 of this IRR.

If the LCCB passes all the criteria for post-qualification, it shall be declared as the Lowest Comparative or Competitive Responsive Bid (LCCRB). 30.8 Within fifteen (15) calendar days from determination of the LCCRB, the original offeror may match the offer of the LCCRB or submit a lower price proposal. The contract shall be awarded to the original offeror if:

In case the original offeror is unable to match the offer of the LCCRB or submit a lower price proposal, the contract shall be awarded to the bidder with the LCCRB.

31.1 Direct Contracting is a mode of procurement of Goods that does not require elaborate Bidding Documents, and the supplier is only required to submit at a price quotation or a pro-forma invoice together with the conditions of sale, which may be accepted immediately or after some negotiations. 31.2 Direct contracting may only be resorted to in any of the following conditions:

32.1 Direct Acquisition is a mode of procurement of CSE not available in the PS-DBM, Non-CSE, and services with ABC not exceeding Two Hundred Thousand Pesos (?200,000.00), where the Procuring Entity, without need to conduct a canvass or request for quotations, may procure directly from any known and reputable sources. Goods covered under this mode may be procured from stores, such as but not limited to, department store, depot, fast food chain, grocery and supermarket, wholesale and retail store, convenience store, clothing and apparel store, bookstore, drugstore and pharmacy, automotive parts and accessories store, construction and hardware store, and online stores. Services may be procured from service providers, such as but not limited to, furniture repair, automotive service, restoration service, machine and fabrication, and other related services. 32.2 Procurement of goods and services through Direct Acquisition shall be reflected in the APP. Goods to be procured through Direct Acquisition and paid using petty cash, or by way of reimbursements, including foreseeable emergencies, which cannot be itemized, shall be identified as Miscellaneous Items in the APP. The use of the Petty Cash Fund as a type of disbursement shall be in accordance with the COA Circular No. 2012-001 dated 14 June 2012, and subsequent relevant rules and regulations. 32.3 The HoPE may authorize the End-User or Implementing Unit to directly purchase from any known and reputable source with legal, technical, and financial capacity, based on any of the following:

Provided, That Procuring Entities shall procure only from sources that issue invoices compliant with the rules of the BIR or other documents evidencing delivery and payment acceptable to the COA.

33.1 Repeat Order is a mode of procurement wherein the Procuring Entity may procure goods from the previous winning bidder whenever there arises a need to replenish the goods procured under a contract previously awarded through bidding, particularly Competitive Bidding, Limited Source Bidding, Competitive Dialogue, or Unsolicited Offer with Bid Matching. 33.2 Repeat Order shall be subject to the post-qualification process prescribed in the Bidding Documents and the following conditions:

Small Value Procurement

34.1 Small Value Procurement (SVP) is a mode of procurement whereby the Procuring Entity requests for the submission of at least three (3) price quotations for Goods not available in the PS-DBM, Infrastructure Projects, and Consulting Services. The receipt of one (1) quotation is sufficient to proceed with the evaluation of bidders: Provided, That, the amount involved does not exceed Two Million Pesos (?2,000,000.00), subject to the periodic review of the threshold amount and adjustments as may be deemed appropriate by the GPPB. 34.2 In case of LGUs, the current threshold amount shall be as follows:

For Barangays P100,000 The GPPB is authorized to adjust the threshold amount based on the LGU income classification. The threshold amount shall be applicable in the procurement of Goods, Infrastructure Projects, and Consulting Services. 34.3 Under this mode of procurement, the following procedure shall be observed:

In case of approval, the HoPE shall immediately enter into contract with the said supplier, contractor, or consultant.

Negotiated Procurement is a mode of procurement of Goods, Infrastructure Projects, and Consulting services, whereby the Procuring Entity directly negotiates a contract with a technically, legally, and financially capable supplier, contractor or consultant.

Negotiated Procurement shall be allowed only in the following instances:

35.1 Two Failed Biddings. Where there have been two (2) failures of bidding in the case of Competitive Bidding, Limited Source Bidding or Competitive Dialogue for the second time, as provided in Section 64 of this IRR. 35.1.1 Under this mode of procurement, the following shall be observed:

In case no revision of the eligibility document covered by Section 52 of this IRR is found necessary by the BAC after the conduct of the mandatory review, the submission of the PhilGEPS Certificate of Registration and Membership in accordance with Section 52 of this IRR shall likewise be mandatory;

If there is a necessity to introduce new items which are related to the scope of work of the original contract, the Procuring Entity shall ensure that the unit prices of the new items are equal to or lower than the prevailing market prices. 35.5 Agency-to-Agency. Procurement of Goods, Infrastructure Projects, and Consulting Services from another agency of the government which has the mandate and absorptive capacity to undertake the project, subject to the following conditions: > a) The Servicing Agency has certified that it has the mandate and absorptive capacity to undertake the project, and the Procuring Entity has validated the same; > > b) The Servicing Agency owns or has access to the necessary tools and equipment required for the project; > > c) Sub-contracting is not allowed. However, the Servicing Agency may implement the Infrastructure Project in-house, by job- order, or through the pakyaw contracting system; and > > d) For procurement of Infrastructure Projects, the Servicing Agency must have a track record of having completed, or supervised a project, by Administration or by contract, similar to and with a cost of at least fifty percent (50%) of the project at hand. 35.5.1 Under this mode of procurement, the following shall be observed by the Procuring Entity:

Provided, That in both instances, trust and confidence are the primary considerations for the hiring of the consultant: Provided, however, That the term of the individual consultant shall, at the most, be on a yearly basis, renewable at the option of the appointing HoPE, but in no case shall exceed the term of the latter. 35.7.1 Under this mode of procurement, the following procedure shall be observed:

If there is an available publicly owned real property or venue that complies with the requirements of the Procuring Entity, it may enter into a contract of lease with the government agency owner. In the event that the Procuring Entity would resort to privately owned real property or venue, the End- User or Implementing Unit shall justify that the same is more efficient and economical to the government. 35.9.1 For purposes of this type of negotiated procurement, the following terms are defined as:

When an appropriation law or ordinance earmarks an amount to be specifically contracted out to NGOs, the Procuring Entity may enter into a MOA with an NGO, subject to the guidelines to be issued by the GPPB for the purpose. 35.10.1 For the purpose of this type of Negotiated Procurement, the following general guidelines shall apply:

If no such CSG is capable to supply the required Goods or implement Simple Infrastructure Projects, the Procuring Entity shall determine if CSG in nearby or other communities may be engaged based on the specific objectives and purpose of the Community-based Projects, (i.e., improving the well-being of the target community or to achieve positive outcomes like poverty reduction, hunger mitigation or elimination, climate change adaptation or mitigation, gender inequality reduction, disease reduction, job generation, among others.) 35.11.2 To ensure the readiness of the procurement, the End-User or Implementing Unit shall undertake the following:

Provided, That if the online subscription to be directly purchased would require an ABC beyond the aforementioned amount, the ABC may be increased but not exceeding Five Million Pesos (P5,000,000) and subject to prior approval of the HoPE; iii) Justification shall be provided by the End-User or Implementing Unit on its need to directly purchase a specific online subscription to the HoPE. Thus, it shall:

36.1 Direct Sales is a mode of procurement of Non-CSE where a Procuring Entity directly purchases from a supplier that has satisfactorily delivered Non-CSE to another government agency under a completed contract. Direct Sales may only be resorted to when all of the following conditions are met:

When all the conditions are present, the BAC of the Procuring Entity shall recommend to the HoPE the award of contract through Direct Sales to the supplier. The award of contract shall be made in accordance with Section 66 of this IRR.

37.1 Direct Procurement for Science, Technology and Innovation is a mode of procurement where the Procuring Entity may procure the following goods and services directly from a legally, technically, and financially capable manufacturer or supplier, or from a qualified startup business:

Video Recording of All Procurement-Related Conferences for Competitive Bidding

38.1 To enhance the transparency of the procurement process, the Procuring Entity shall keep a video recording of all procurement-related conferences for Competitive Bidding, which includes pre-procurement conference, pre-bid conference, bid opening, and other meetings of the BAC. All procurement-related conferences for Competitive Bidding shall not commence without a video recording initiated by the BAC. 38.2 The Procuring Entity shall also livestream the preliminary examination and the opening of the bids to the public on its website, social media account, or any other form of livestreaming services. The GPPB, in coordination with the DICT, shall issue specific guidelines on the conduct of the livestream requirement under this provision. 38.3 The mandatory video recording shall only apply to the procurement of Goods costing above Ten Million Pesos (P10,000,000.00), Infrastructure Projects costing above Twenty Million Pesos (P20,000,000.00), and Consulting Services costing above Five Million Pesos (P5,000,000.00) using Competitive Bidding as the mode of procurement. 38.4 The Procuring Entity shall ensure that copies of the video recording shall be stored for not less than five (5) years and shall be made available to the public upon request and payment of a fee fixed by the Procuring Entity, subject to existing budgeting, accounting, and auditing laws, rules, and regulations. When national security is involved, the HoPE shall decide whether or not to video record all procurement related conferences, taking into consideration the nature, classification, sensitivity, and confidentiality thereof. The GPPB is authorized to adjust the threshold amounts and the storage period as may be deemed appropriate.

Prohibition on Splitting of Government Contracts

39.1 Splitting of Government Contracts is not allowed. In using any of the modes of procurement under Article IV of the Act, the Procuring Entity shall ensure that this does not result in splitting of government contracts, which involves dividing or breaking up of contracts into smaller quantities and amounts, or dividing contract implementation into artificial phases or subcontracts for the purpose of evading or circumventing the requirements of the Act and this IRR; Provided, That procurement per unit, by lot or package, is allowed subject to the available budget, required quantity, product availability, delivery sites, geographical location and market capacity. 39.2 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, in accordance with the Detailed Architectural and Engineering Design as developed in accordance with Section 8 of this IRR.

Procurement of CSE

40.1 All NGAs, GOCCs, GFIs, SUCs, and LGUs shall procure CSE only from the PS-DBM, subject to its availability. 40.2 Procuring Entities are authorized to procure the CSE from other sources in any of the following instances:

Provided, That these manufacturers or exclusive distributors comply with the requirements set by PS-DBM to determine their legal, technical, and financial capacity in providing the required goods or services;

Provided, further, That such requirements shall be set or formulated to ensure that the goods or services are obtained from reliable sources, of the best quality, and at the most advantageous price for the whole of government. 40.4 For purposes of this IRR, consignment shall refer to an arrangement whereby the consignor gives actual or constructive possession of goods, equipment and services to the consignee without transfer of ownership and disbursement of government funds between consignee and consignor, and such goods, equipment and services are to be sold by the consignee for and on account of the consignor at terms advantageous to the government. The consignee shall remit the proceeds of the sale to the consignor, net of service fees, if applicable. The PhilGEPS eMarketplace may be used as a consignment platform for goods and equipment. Consignment agreements shall primarily be governed by the general law on contracts, considering that the transaction involved is not procurement as defined under Section 5(z) of this IRR. 40.5 PS DBM, which is primarily tasked with the centralized procurement of CSE for the government in accordance with Letter of Instructions No. 755, s. 1978, EO No. 359, s. of 1989, and Administrative Order No. 17, s. of 2011, shall develop the parameters in the identification, expansion, and definition of requirements and specifications of CSE through the conduct of market scoping, market survey, and market availability. 40.5.1 For goods to be classified as CSE, the following conditions shall be met:

RULE V BIDS AND AWARDSCOMMITTEE

41.1 BAC Structure 41.1.1 The Procuring Entity shall establish in its head office a BAC to undertake the functions specified in this IRR; Provided, however, That in a department, bureau, office, or agency where the procurement is decentralized, the head of each decentralized unit, which is individually considered as a Procuring Entity, shall be considered as the HoPE, subject to the limitations and authority delegated by the head of the department, bureau, office or agency. 41.1.2 Further, to expedite the procurement process for practical intents and purposes, the HoPE may create BACs where the number and complexity of the items to be procured shall so warrant. 41.2 BAC Composition 41.2.1 The HoPE shall designate five (5) or seven (7) permanent officials of unquestionable integrity and procurement proficiency as members of the BAC. The term permanent does not refer to whether the person holding the plantilla position is contractual, regular, or temporary; rather, this refers to whether the position exists within the organizational structure of the procuring entity or not. 41.2.2 The BAC for NGAs, departments, bureaus, offices, or instrumentalities of the GoP, including the judicial and legislative branches, constitutional commissions, SUCs, GOCCs, and GFIs shall be composed of the following: Regular Members a) Chairperson, who is at least a third (3rd) ranking permanent official of the Procuring Entity;

Provided, That in the case of bureaus, regional offices and sub-regional/district offices, BAC members shall be at least a third (3rd) ranking permanent personnel or if not available, an officer of the next lower rank;

Provided, That in the case of bureaus, regional offices and sub-regional/district offices, BAC members shall be at least a third (3rd) ranking permanent personnel or if not available, an officer of the next lower rank; Provisional Members a) An officer who has technical expertise relevant to the procurement at hand, and, to the extent possible, has knowledge, experience and/or expertise in procurement; and

Provided, That no member of the BAC shall serve for more than three (3) consecutive terms, except when allowed by the HoPE. Upon expiration of the terms of the current members, they shall continue to exercise their functions until new BAC members are designated.

In case of resignation, retirement, separation, transfer, re-assignment, removal, or death, the replacement shall serve only for the unexpired term;

Provided, however, That in case of leave or suspension, the replacement shall serve only for the duration of the leave or suspension;

Provided, further, That a member shall only be suspended or removed for justifiable reasons to be expressed in writing by the HoPE. For transfer of knowledge and experience, membership in the BAC shall allow for staggered designations.

42.1 The BAC shall have the following functions:

Provided, That in the event the HoPE shall disapprove such recommendation, such disapproval shall be based only on valid, reasonable, and justifiable grounds to be expressed in writing, copy furnished the BAC;

Provided, however, That the Chairperson or, in its absence, the Vice-Chairperson, shall vote only in case of a tie.

Observers

43.1 To enhance the transparency of the process, the BAC shall, during the eligibility checking, short-listing, pre-bid conference, preliminary examination of bids, bid evaluation, and post-qualification, invite, in addition to the representative of the COA, at least two (2) observers, who shall have no voting rights, to sit in its proceedings where: 43.1.1 At least one (1) shall come from a duly recognized private group in a sector or discipline relevant to the procurement at hand, for example:

Provided, That they do not have any direct or indirect interest in the procurement project out. The private group or CSO or PO shall be duly registered with the SEC or the CDA, as the case may be, and the observers therefrom shall meet the following qualifications:

Provided, That they have been duly invited in writing. In the event that a procurement activity has to be postponed, the observers shall be notified immediately of the change in schedule. 43.3 The representative of the observer who will attend the BAC proceedings should be a certified member of good standing of the CSO or PO. 43.4 The observers shall have the following responsibilities:

If no report is submitted by the observer within seven (7) calendar days after each procurement activity, it is presumed that the bidding activity conducted by the BAC followed the correct procedure; and

44.1 There shall be a procurement unit, division, or office in each Procuring Entity which shall serve as Secretariat to the BAC and perform other functions related to procurement as may be delegated by the HoPE. The creation of the procurement unit, division, or office shall be subject to the standards and guidelines prescribed by the DBM. 44.2 Pending the creation or in the absence of a procurement unit, an ad hoc BAC Secretariat may be designated by the HoPE. 44.3 The Secretariat shall have the following functions and responsibilities:

The Procuring Entity may grant payment of honoraria to all members of the BAC, regardless of position, TWG, and ad hoc Secretariat, in an amount not exceeding thirty percent (30%) of their respective basic monthly salaries, subject to availability of funds, which may be sourced from fees collected by the BAC in relation to its procurement activities. Undersecretaries and Assistant secretaries, including those of equivalent ranks, who are designated as Chairperson or members of the BAC, shall be entitled to honoraria. Provided, however, that officials and employees whose organic functions are primarily related to procurement are not entitled to honoraria. The DBM shall issue the necessary guidelines for this purpose and may determine other sources of funds to implement the grant of honoraria.

In achieving the objective of professionalizing public procurement practitioners, the following shall be implemented:

46.1 The DBM shall create procurement positions in the government based on the qualification standards recommended by the GPPB and approved by the CSC. 46.2 The GPPB shall ensure the professionalization of procurement practitioners and for this purpose, shall develop the following:

47.1 The Bidding Documents shall be prepared by the Procuring Entity following the standard forms and manuals prescribed by the GPPB. The Bidding Documents shall include the following:

Provided, That upon submission of their bids, the Bidders shall pay the applicable fee, if required. The Bidding Documents may also be secured from the BAC Secretariat upon payment of the corresponding fee, if required. 47.5 Bidding Documents fee may be refunded in accordance with the guidelines to be issued by the GPPB, based on the grounds provided for under Section 70 of the Act and this IRR.

48.1 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 of the Bidding Documents 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.

48.2 Individuals authorized to handle procurement documents under this Section shall refer to the BAC Chairperson, BAC Members, BAC Secretariat, TWG, and representatives from the End-User or Implementing Unit, among others, involved in the project at hand.

48.3 In procurements involving and affecting national security, the disclosure of the specific components of the procurement documents, such as the technical specifications, requirements, and components, shall be dependent upon the HoPE, having due regard to the nature, classification, sensitivity, and confidentiality of the relevant documents in relation to the purpose and reason for the request.

RULE VII INVITATION TO BID

49.1 Prior to the publication of the Invitation to Bid or Request for Expression of Interest, the BAC is mandated to hold a pre-procurement conference on each and every procurement. However, the holding of a pre- procurement conference is optional for procurement of Goods costing Five Million Pesos (P5,000,000.00) and below, procurement of Infrastructure Projects costing Ten Million Pesos (P10,000,000.00) and below, and procurement of Consulting Services costing Two Million Pesos (P2,000,000.00) and below. The pre-procurement conference shall be attended by the BAC, TWG, the Secretariat, the End-User or Implementing Unit, including consultants hired by the Procuring Entity who prepared the draft Bidding Documents. During this conference, the participants, led by the BAC, shall:

50.1 In line with the principles of transparency and competitiveness and to ensure the widest possible dissemination thereof, all invitations to bid shall be published continuously by the Procuring Entity. 50.1.1 Such publication shall be made by posting on the website or social media platforms of the Procuring Entity, if available, or such other channels as may be authorized by the GPPB. 50.1.2 For justifiable reasons, Procuring Entities that cannot publish procurement opportunities on its website, social media platform, or such other channels authorized by the GPPB shall publish its invitation to bid, at least once, in a newspaper of general nationwide circulation. 50.2 Contents of the Invitation to Bid or Request for Expression of Interest. The Invitation to Bid or Request for Expression of Interest shall provide prospective bidders the following information, among others:

51.1 For procurement projects to be bid through competitive selection such as competitive bidding, competitive dialogue, limited source bidding, and unsolicited offer with bid matching, with an ABC of Three Million Pesos (P3,000,000.00) or more, the BAC shall conduct at least one (1) pre-bid conference to clarify or explain any of the requirements, terms, conditions, and specifications stipulated in the Bidding Documents. For procurement projects with an ABC of less than Three Million Pesos (P3,000,000), pre- bid conferences may be conducted at the discretion of the BAC. Subject to the approval of the BAC, a pre-bid conference may also be conducted upon written request of any prospective bidder. 51.2 The pre-bid conference shall be held at least twelve (12) calendar days before the deadline for the submission and receipt of bids, but not earlier than seven (7) calendar days from the PhilGEPS posting of the Invitation to Bid or Bidding Documents and in the case of Consulting Services, from the determination of the shortlisted consultants. 51.3 The pre-bid conference shall discuss, clarify, and explain, among other things, the eligibility requirements and the technical and financial components of the procurement project, including questions and clarifications raised by the prospective bidders before and during the pre- bid conference. The BAC shall have a proactive role during the conduct of the pre-bid conference:

Eligibility Requirements for the Procurement of Goods, Infrastructure Projects, and Consulting Services

52.1 For purposes of determining the eligibility of bidders using the criteria stated in Section 52.4 of this IRR, the prospective bidder shall submit its valid and updated PhilGEPS Certificate of Registration (Platinum Membership) pursuant to the requirements provided in Section 20 of this IRR. To ensure that the prospective bidder is technically and financially capable to undertake the procurement project, the BAC shall also require the submission of the following documents using the forms prescribed in the Bidding Documents:

Provided, That the partner responsible to submit the NFCC shall likewise submit the Statement of all of its ongoing contracts. 52.3 In the case of foreign bidders, the eligibility requirements or statements, the bids, and all other documents to be submitted to the BAC must be in English.

If the eligibility requirements or statements, the bids, and all other documents submitted to the BAC are in a foreign language other than English, it must be accompanied by a translation of the documents in English. The documents shall be translated by the relevant foreign government agency, the foreign government agency authorized to translate documents, or a registered translator in the foreign bidders country; and shall be authenticated by the appropriate Philippine foreign service establishment or post or the equivalent office having jurisdiction over the foreign bidders affairs in the Philippines. However, for Contracting Parties to the Apostille Convention, the documents shall be authenticated through an apostille by the Competent Authority, as defined in Section 20.9.2 of this IRR, except for countries identified by the DFA that will still require legalization (red ribbon) by the relevant Embassy or Consulate. 52.4 Eligibility Criteria 52.4.1 For the procurement of Goods: 52.4.1.1 The following shall be eligible to participate in the bidding for the supply of Goods:

If the Procuring Entity determines that it is necessary to adopt a different SLCC requirement to ensure broader bidder participation while establishing their technical capacity, it may allow bidders to present a combination of contracts completed within the same period, provided their total value is at least fifty percent (50%) of the ABC, thus:

Provided, That if the same is issued by a foreign bank, it shall be confirmed or authenticated by a local bank. 52.4.2 For the procurement of Infrastructure Projects: 52.4.2.1 The following persons or entities shall be allowed to participate in the bidding for Infrastructure Projects:

Provided, That any change to the fifty percent (50%) requirement may be allowed, subject to the recommendation of the Procuring Entity, which shall be submitted to the GPPB for consideration;

Provided, further, That contractors under Small A and Small B categories without similar experience on the procurement project to be bid may be allowed to bid if the cost of such contract is not more than the Allowable Range of Contract Cost of their registration based on the guidelines as prescribed by the PCAB. For foreign-funded procurement, the GoP and the foreign government, or foreign or international financing institution may agree on another track record requirement. Moreover, a contract shall be considered similar to the procurement project if it has the same major categories of work. The Procuring Entity may clarify in the Bidding Documents what is regarded as major categories of work guided by the principle of proportionality and fit- for-purpose approach. 52.4.2.5 The SLCC shall be supported by an Owners Certificate of Final Acceptance issued by the project owner other than the contractor, or a final rating of at least Satisfactory in the CPES, or a similar performance and monitoring system. In the case of contracts with the private sector, an equivalent document shall be submitted. 52.4.2.6 The computation of a bidders NFCC must be at least equal to the ABC to be bid, calculated as follows: NFCC = [(Current assets minus current liabilities) (15)] minus the value of all outstanding or uncompleted portions of the projects under ongoing contracts, including awarded contracts yet to be started, coinciding with the procurement project to be bid;

Provided, That a different formula may be adopted subject to the recommendation of the Procuring Entity, which shall be submitted to the GPPB for consideration. The value of the domestic bidders current assets and current liabilities shall be based on the latest AFS submitted to the BIR. For the purpose of computing the foreign bidders' NFCC, the value of the current assets and current liabilities shall be based on their AFS prepared in accordance with international financial reporting standards. 52.4.3 For the Procurement of Consulting Services 52.4.3.1 The following persons or entities shall be allowed to participate in the bidding for Consulting Services:

If any false information or changes affecting eligibility are found, the bidder shall be disqualified from obtaining an award or implementing the contract, as the case may be, subject to the applicable rules under this IRR.

53.1 Short-Listing of Prospective Bidders 53.1.1 For the procurement of Consulting Services, the Procuring Entity concerned shall consider for short-listing only those consultants whose contracts, as identified in the eligibility documents submitted for registration, are similar in nature and complexity to the procurement project, based on the Request for Expression of Interest. 53.1.2 The BAC shall draw up the short-list of consultants from those who have been determined as eligible in accordance with the provisions of this IRR. The number of short-listed consultants, which shall be determined in the pre-procurement conference, shall consist of three (3) to seven (7) consultants, with five (5) as the preferable number. Should only one (1) or less than the required number apply for eligibility and short-listing, pass the eligibility check, and/or pass the minimum score required in the short-listing, the BAC shall consider the same. The shortl-isted bidders shall then be required to pay the fee for the Bidding Documents, if applicable, subject to the provisions of Section 47 of this IRR. 53.1.3 The BAC shall specify in the Request for Expression of Interest the set of criteria and rating system for short-listing of consultants to be used for the particular procurement project to be bid, which shall consider the following, among others:

. Submission and Receipt of Bids

54.1 Bidders shall submit their bids through their respective duly authorized representatives using the forms specified in the Bidding Documents in two (2) separate sealed bid envelopes, or in appropriate documents and file format for electronic bid submission as per the relevant Guidelines, and which shall be submitted simultaneously. The first shall contain the technical component of the bid, including the eligibility requirements under Section 52 of this IRR, and the second shall contain the financial component of the bid. 54.2 The first bid envelope shall contain the following technical documents, at the least: